Description
Introduction to Quality Management
Introduction to Quality
•Concept of Quality & Quality Systems •Statistical Quality Control (x-OM 2) •TQM and tools for TQM, six sigma
Quality Management • What does the term quality mean? • Quality is the ability of a product or service to consistently meet or exceed customer expectations.
Dimensions of Quality
• Performance - main characteristics of the product/service • A h i - appearance, f l smell, taste Aesthetics feel, ll • Special features - extra characteristics • Conformance - how well product/service conforms to customer’s expectations • Safety - Risk of injury • Reliability - consistency of performance
Dimensions of Quality (Cont’d) • Durability - useful life of the
product/service
• Perceived Quality - indirect evaluation of
quality (e.g. reputation)
• Service after sale - handling of customer complaints or checking on customer satisfaction • Robustness- The ability to perform under all conditions
Examples of Quality Dimensions
Dimension
1. Performance
(Product) Automobile
Everything works, fit & finish Ride, handling, grade of materials used Interior design, soft touch
(Service) Auto Repair
All work done, at agreed price Friendliness, courtesy, Competency, quickness Clean work/waiting area
2. Aesthetics
3. Special features Gauge/control placement Location, call when ready Convenience Cellular phone, CD Computer diagnostics High tech player 4. Safety Antilock brakes, airbags Separate waiting area
Examples of Quality Dimensions (Cont’d)
Dimension (Product) Automobile
5. Reliability 6. Durability 7. 7 Perceived quality Infrequency of breakdowns Useful life in miles, resistance to rust & corrosion Top-rated car T t d
(Service) Auto Repair p
Work done correctly, ready when promised Work holds up over time Award-winning A d i i service i department
8. Service after Handling of complaints and/or Handling of complaints sale requests for information
The Meaning of Quality
The Meaning of Quality
Producer’s Perspective
Consumer’s Perspective
Quality of Conformance Production • Conformance to specifications • Cost
Quality of Design Marketing g
• Quality characteristics • Price
Fitness for Consumer Use
Determinants of Quality
Design
Ease of use ConformConform ance to design
Service
COST OF POOR QUALITY
COST OF POOR QUALITY
COST OF CONSEQUENCES COST OF LOST OPPORTUNITIES COST OF DISCRETION
BEFORE CUSTOMER FINDS OUT INTERNAL FIELD FAILURE COST
AFTER CUSTOMER FINDS OUT EXTERNAL FIELD FAILURE COST
BEFORE EXECUTION PREVENTION COST
AFTER EXECUTIO N APPRAISAL COST
The Consequences of Poor Quality • Loss of business, Liability, Productivity, Costs Costs f Q lit C t of Quality
Failure Costs - costs incurred by defective parts/products or faulty services. Internal Failure Costs Costs incurred to fix problems that are detected before the product/service is delivered to the customer. customer External Failure Costs All costs incurred to fix problems that are detected after the product/service is delivered to the customer.
Costs of Quality (continued)
• Appraisal Costs – All product and/or service inspection costs. • Prevention Costs – All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring
Size of various quality cost elements
10-15%
Qua ality costs in % of sales f
10-12%
The total quality costs 25-35 % of turnover.
4-6%
1%
Preventive Appraisal
Internal Failure
External Failure
Impact of TQM on costs.
35 30 An example from Xerox Corp.
% of sales
25 20 15 10 5 0
Internal Failure
Internal Failure
Appraisal
Appraisal
prevention
Prevention
Before TQM
After TQM
1-10-100 Rule
Prevention 1
Rs
10
Stages
Correction
Rs Rs Rs Rs
100
Failure
Visible and hidden costs
•Scrap •Rework •Warranty costs • Conversion efficiency of materials • Inadequate resource utilization • Excessive use of material • Cost of redesign and re-inspection • Cost of resolving customer problems • Lost customers / Goodwill • High inventory
Visible costs
Hidden Costs
Key Contributors to Quality Management
Deming g Juran Crosby Ishikawa Taguchi
14 points, special and common p , p causes of variation Quality is fitness of use, quality trilogy Quality is free, zero defects Cause and effect diagrams, quality circles Robustness, Design of experiments.
Quality Awards
Baldrige Award Deming Prize
European Quality Award
Management Systems
Quality Management Systems (QMS) ISO 9001, QS 9000, TS 16949 Environment Management Systems(EMS) ISO 14001 Systems related to Organisational health and social responsibility OHSAS 18001
BK DAS
Evolution of a Standard • Draft International Standard (DIS) International Standard drafted and adopted by Technical Committee • ISO Publicly Available Specification (ISO/PAS) Accepted for publication if it is approved by 50% of the member • ISO Technical Specification (ISO/TS) Accepted for publication if it is approved by 2/3rd of the member ISO/PAS or ISO/TS is reviewed after 3 years. It is again reviewed after 6 years. • ISO International Standards
BK DAS
Quality Management Systems Standards ISO defined QMS requirements in 1987 as 9000 series of standards. 20 main clauses addressing different functions of an organisation
ISO 9001 For design responsible organisations ISO 9002 Design control 4.4 excluded ISO 9003 For inspection & Testing
ISO 9000 series of standards modified in 1994
No major modification done
ISO 9000 series of standards modified in 2000
Major modification with change in structure
BK DAS
ISO 9001 Standard Revisions
As per rules of ISO, all standards are to be reviewed every 5 years. First revision of standard took place in 1994. However, because of inadequate experience in usage of these standards, 1994 revision of the standard was limited in h i character. B i structure of th standards was retained t Basic t t f the t d d t i d and the revision was mainly aimed to bring greater clarity in requirements for ease of implementation
Need for Second Revision
ISO-9000 standards have been used by hundreds of thousands of companies of different types and sizes during last decade. During its usage certain major inadequacies have been observed.
BK DAS
Need for Second Revision
A The structure of ISO 9001:1994 is heavily oriented towards manufacturing sector, making it difficult for application to service sector and other types of organizations.
B It was a stand alone document without any relationship with current quality management practices and business operations, causing confusion and conflict with existing quality control practices.
C Although there was a higher level standard in the shape of ISO-9004, there was no alignment between the two standards due to which ISO-9004 standard was largely ignored by the companies.
BK DAS
Need for Second Revision
D There was over emphasis on documentation which have been specified for almost all requirements making it a bureaucratic system.
E Customer relationship management has been given inadequate attention limited to contract review. Due to this customers of most of certified companies have not felt significant change after certification.
F Basically it has been a consistency standard at the existing level of quality. Need for continuous quality improvement has not been incorporated. This necessitated adoption of other quality improvement methodologies causing diffusion of quality management efforts.
BK DAS
Need for Second Revision
G Compliance to the standard required various activities by different departments, but need for a proper vertical and horizontal communication system for proper coordination was not addressed. H There were three certifiable standards in the form of ISO-9001, ISO9002 and ISO-9003. For some businesses particularly in services sector it was difficult to determine which standard would apply. ISO-9003 was literally ignored because it was focussed only to inspection and test, the concept which has become obsolete in the light of new quality philosophy.
I
Although standard called for establishment of a documented quality system, its deployment in different areas and its effectiveness, but no basis was provided against which effectiveness of quality system could be assessed.
BK DAS
Application to Organizations
There is only one requirement standard ISO-9001-2000, in stead of ISO-9001, ISO-9002 and ISO-9003 in the 1994 version. version Since all requirements may not apply to different organizations, the new standard permits exclusion of some requirements which have to be justified to the satisfaction of certification bodies. This provision enables it to cope with wide spectrum of organizations and activities.
BK DAS
4. Quality Management System
Documentation Requirements International Standard ISO 9001:2000
Level 1
Quality Manual
Defines Approach & Responsibility Level 2 Defines who what when Level 3
Procedures
Job Instructions
Answers How Level 4
Other Documentation
Prompts recording of Information
TS BK
SECTIONS OF ISO 9001:2000 1.Scope 2.Normative Reference 3.Terms And Definitions 4.Quality Management System 5.Management Responsibility 6.Resource 6 Resource Management 7.Product Realisation 8.Measurement,Analysis and Improvement
TS BK
Continual Improvement of the Quality Management System
Management Responsibility
Customers Customers
Resource management Measurement Analysis & Improvement
Satisfaction
Output
Requirements
Product Realisation
Product
Value Adding Activities Information Flow
Model for a process based Quality Management System
TS BK
ISO 14000
• ISO 14000 - A set of international standards for assessing a company’s environmental performance • Standards in three major areas
– Management systems
• Systems development and integration of environmental responsibilities into business planning
– Operations
• Consumption of natural resources and energy
– Environmental systems
• Measuring, assessing and managing emissions, effluents, and other waste
Process monitoring and control Controllable Inputs X1
Input= raw materials, components, and subassemblies
Measurement Evaluation Monitoring and control
X2
Xp
Product
Process
Output
Output y = Quality Characteristic
Uncontrollable inputs Use of design of experiments to
ascertain the assignable causes
Z1
Z2
Zp
Process Knowledge
• Stages of process knowledge
– – – – – – – Blissful ignorance Awareness of ignorance (Art) Measure Control the mean Process capability Process characterization (know how) Know why (process optimization possible, formulae for process) – Complete knowledge p g
• Biscuit bakery example-Roger Bohn • Variation and process knowledge
• 8 stages of process knowledge- bakery
Stage of K Name 1. Complete ignorance 2. Awareness 3. Measure 4.Control of mean p y 5.Process capability 6. Process characterization 7. Know why 8. Complete K Pure art Pretechnological Sc method feasible Local recipe p Trade-offs Science Nirvana Comment Typical form knowledge Nowhere Tacit Written Written and in hardware H/W & operating manual p g Empirical equation Scientific formulae, algorithm
Statistical Process Control
• The Control Process – Define variable – Compare to a standard – Take corrective action -Measure -Evaluate
Standard
Comparator Feedback Sensor / measure Process Input Output
doc_104500322.pdf
Introduction to Quality Management
Introduction to Quality
•Concept of Quality & Quality Systems •Statistical Quality Control (x-OM 2) •TQM and tools for TQM, six sigma
Quality Management • What does the term quality mean? • Quality is the ability of a product or service to consistently meet or exceed customer expectations.
Dimensions of Quality
• Performance - main characteristics of the product/service • A h i - appearance, f l smell, taste Aesthetics feel, ll • Special features - extra characteristics • Conformance - how well product/service conforms to customer’s expectations • Safety - Risk of injury • Reliability - consistency of performance
Dimensions of Quality (Cont’d) • Durability - useful life of the
product/service
• Perceived Quality - indirect evaluation of
quality (e.g. reputation)
• Service after sale - handling of customer complaints or checking on customer satisfaction • Robustness- The ability to perform under all conditions
Examples of Quality Dimensions
Dimension
1. Performance
(Product) Automobile
Everything works, fit & finish Ride, handling, grade of materials used Interior design, soft touch
(Service) Auto Repair
All work done, at agreed price Friendliness, courtesy, Competency, quickness Clean work/waiting area
2. Aesthetics
3. Special features Gauge/control placement Location, call when ready Convenience Cellular phone, CD Computer diagnostics High tech player 4. Safety Antilock brakes, airbags Separate waiting area
Examples of Quality Dimensions (Cont’d)
Dimension (Product) Automobile
5. Reliability 6. Durability 7. 7 Perceived quality Infrequency of breakdowns Useful life in miles, resistance to rust & corrosion Top-rated car T t d
(Service) Auto Repair p
Work done correctly, ready when promised Work holds up over time Award-winning A d i i service i department
8. Service after Handling of complaints and/or Handling of complaints sale requests for information
The Meaning of Quality
The Meaning of Quality
Producer’s Perspective
Consumer’s Perspective
Quality of Conformance Production • Conformance to specifications • Cost
Quality of Design Marketing g
• Quality characteristics • Price
Fitness for Consumer Use
Determinants of Quality
Design
Ease of use ConformConform ance to design
Service
COST OF POOR QUALITY
COST OF POOR QUALITY
COST OF CONSEQUENCES COST OF LOST OPPORTUNITIES COST OF DISCRETION
BEFORE CUSTOMER FINDS OUT INTERNAL FIELD FAILURE COST
AFTER CUSTOMER FINDS OUT EXTERNAL FIELD FAILURE COST
BEFORE EXECUTION PREVENTION COST
AFTER EXECUTIO N APPRAISAL COST
The Consequences of Poor Quality • Loss of business, Liability, Productivity, Costs Costs f Q lit C t of Quality
Failure Costs - costs incurred by defective parts/products or faulty services. Internal Failure Costs Costs incurred to fix problems that are detected before the product/service is delivered to the customer. customer External Failure Costs All costs incurred to fix problems that are detected after the product/service is delivered to the customer.
Costs of Quality (continued)
• Appraisal Costs – All product and/or service inspection costs. • Prevention Costs – All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring
Size of various quality cost elements
10-15%
Qua ality costs in % of sales f
10-12%
The total quality costs 25-35 % of turnover.
4-6%
1%
Preventive Appraisal
Internal Failure
External Failure
Impact of TQM on costs.
35 30 An example from Xerox Corp.
% of sales
25 20 15 10 5 0
Internal Failure
Internal Failure
Appraisal
Appraisal
prevention
Prevention
Before TQM
After TQM
1-10-100 Rule
Prevention 1
Rs
10
Stages
Correction
Rs Rs Rs Rs
100
Failure
Visible and hidden costs
•Scrap •Rework •Warranty costs • Conversion efficiency of materials • Inadequate resource utilization • Excessive use of material • Cost of redesign and re-inspection • Cost of resolving customer problems • Lost customers / Goodwill • High inventory
Visible costs
Hidden Costs
Key Contributors to Quality Management
Deming g Juran Crosby Ishikawa Taguchi
14 points, special and common p , p causes of variation Quality is fitness of use, quality trilogy Quality is free, zero defects Cause and effect diagrams, quality circles Robustness, Design of experiments.
Quality Awards
Baldrige Award Deming Prize
European Quality Award
Management Systems
Quality Management Systems (QMS) ISO 9001, QS 9000, TS 16949 Environment Management Systems(EMS) ISO 14001 Systems related to Organisational health and social responsibility OHSAS 18001
BK DAS
Evolution of a Standard • Draft International Standard (DIS) International Standard drafted and adopted by Technical Committee • ISO Publicly Available Specification (ISO/PAS) Accepted for publication if it is approved by 50% of the member • ISO Technical Specification (ISO/TS) Accepted for publication if it is approved by 2/3rd of the member ISO/PAS or ISO/TS is reviewed after 3 years. It is again reviewed after 6 years. • ISO International Standards
BK DAS
Quality Management Systems Standards ISO defined QMS requirements in 1987 as 9000 series of standards. 20 main clauses addressing different functions of an organisation
ISO 9001 For design responsible organisations ISO 9002 Design control 4.4 excluded ISO 9003 For inspection & Testing
ISO 9000 series of standards modified in 1994
No major modification done
ISO 9000 series of standards modified in 2000
Major modification with change in structure
BK DAS
ISO 9001 Standard Revisions
As per rules of ISO, all standards are to be reviewed every 5 years. First revision of standard took place in 1994. However, because of inadequate experience in usage of these standards, 1994 revision of the standard was limited in h i character. B i structure of th standards was retained t Basic t t f the t d d t i d and the revision was mainly aimed to bring greater clarity in requirements for ease of implementation
Need for Second Revision
ISO-9000 standards have been used by hundreds of thousands of companies of different types and sizes during last decade. During its usage certain major inadequacies have been observed.
BK DAS
Need for Second Revision
A The structure of ISO 9001:1994 is heavily oriented towards manufacturing sector, making it difficult for application to service sector and other types of organizations.
B It was a stand alone document without any relationship with current quality management practices and business operations, causing confusion and conflict with existing quality control practices.
C Although there was a higher level standard in the shape of ISO-9004, there was no alignment between the two standards due to which ISO-9004 standard was largely ignored by the companies.
BK DAS
Need for Second Revision
D There was over emphasis on documentation which have been specified for almost all requirements making it a bureaucratic system.
E Customer relationship management has been given inadequate attention limited to contract review. Due to this customers of most of certified companies have not felt significant change after certification.
F Basically it has been a consistency standard at the existing level of quality. Need for continuous quality improvement has not been incorporated. This necessitated adoption of other quality improvement methodologies causing diffusion of quality management efforts.
BK DAS
Need for Second Revision
G Compliance to the standard required various activities by different departments, but need for a proper vertical and horizontal communication system for proper coordination was not addressed. H There were three certifiable standards in the form of ISO-9001, ISO9002 and ISO-9003. For some businesses particularly in services sector it was difficult to determine which standard would apply. ISO-9003 was literally ignored because it was focussed only to inspection and test, the concept which has become obsolete in the light of new quality philosophy.
I
Although standard called for establishment of a documented quality system, its deployment in different areas and its effectiveness, but no basis was provided against which effectiveness of quality system could be assessed.
BK DAS
Application to Organizations
There is only one requirement standard ISO-9001-2000, in stead of ISO-9001, ISO-9002 and ISO-9003 in the 1994 version. version Since all requirements may not apply to different organizations, the new standard permits exclusion of some requirements which have to be justified to the satisfaction of certification bodies. This provision enables it to cope with wide spectrum of organizations and activities.
BK DAS
4. Quality Management System
Documentation Requirements International Standard ISO 9001:2000
Level 1
Quality Manual
Defines Approach & Responsibility Level 2 Defines who what when Level 3
Procedures
Job Instructions
Answers How Level 4
Other Documentation
Prompts recording of Information
TS BK
SECTIONS OF ISO 9001:2000 1.Scope 2.Normative Reference 3.Terms And Definitions 4.Quality Management System 5.Management Responsibility 6.Resource 6 Resource Management 7.Product Realisation 8.Measurement,Analysis and Improvement
TS BK
Continual Improvement of the Quality Management System
Management Responsibility
Customers Customers
Resource management Measurement Analysis & Improvement
Satisfaction
Output
Requirements
Product Realisation
Product
Value Adding Activities Information Flow
Model for a process based Quality Management System
TS BK
ISO 14000
• ISO 14000 - A set of international standards for assessing a company’s environmental performance • Standards in three major areas
– Management systems
• Systems development and integration of environmental responsibilities into business planning
– Operations
• Consumption of natural resources and energy
– Environmental systems
• Measuring, assessing and managing emissions, effluents, and other waste
Process monitoring and control Controllable Inputs X1
Input= raw materials, components, and subassemblies
Measurement Evaluation Monitoring and control
X2
Xp
Product
Process
Output
Output y = Quality Characteristic
Uncontrollable inputs Use of design of experiments to
ascertain the assignable causes
Z1
Z2
Zp
Process Knowledge
• Stages of process knowledge
– – – – – – – Blissful ignorance Awareness of ignorance (Art) Measure Control the mean Process capability Process characterization (know how) Know why (process optimization possible, formulae for process) – Complete knowledge p g
• Biscuit bakery example-Roger Bohn • Variation and process knowledge
• 8 stages of process knowledge- bakery
Stage of K Name 1. Complete ignorance 2. Awareness 3. Measure 4.Control of mean p y 5.Process capability 6. Process characterization 7. Know why 8. Complete K Pure art Pretechnological Sc method feasible Local recipe p Trade-offs Science Nirvana Comment Typical form knowledge Nowhere Tacit Written Written and in hardware H/W & operating manual p g Empirical equation Scientific formulae, algorithm
Statistical Process Control
• The Control Process – Define variable – Compare to a standard – Take corrective action -Measure -Evaluate
Standard
Comparator Feedback Sensor / measure Process Input Output
doc_104500322.pdf