Description
This is a PPT explaining about Quality management.
Quality Management
0
Overview
? ?
?
? ?
Nature of Quality Traditional v/s Modern Quality Management Emerging Quality Standards TQM Programs Wrap-Up: What World-Class Producers Do
1
QUALITY
? ? ?
For the Japanese, it is religion For the Americans, it is their growth For the Gulf, it is bull-shit & For the Indians - it is waste of time & money ????
2
What is Quality?
“The quality of a product or service is a customer’s perception of the degree to which the product or service meets his or her expectations.”
3
Nature of Quality
?
Dimensions of Quality
Determinants of Quality Costs of Quality
?
?
4
Some Dimensions of Product Quality
?
Performance : Features : Reliability : Conformance : Durability :
Primary Optg. Characteristics of product e.g. - TV : Sound, Picture clarity, Color, Reception . Secdry Charct. that supplement basic functioning. e.g.-Free drinks on a flight, Automatic tuners in TV Dependability of product, as down-time is expensive meeting pre-established specifications
?
?
?
Amount of use one gets from a product before it deteriorates, e.g. -1000 hr. bulb
? ? ?
Appearance: looks, feels, sounds, tastes or smells. Customer service : Elapsed time before service is restored. Safety
5
Determinants of Quality
?
?
? ?
?
Quality of design Quality capability of production processes Quality of conformance Quality of customer service Organizational quality culture
6
Costs of Quality
1.
Cost of Prevention – for preventing defective goods to be provided.
e. g. : Investment in M/Cs, Technology, Education Programs, Data Collection & Analysis, This investment brings in high returns like – Customer Satisfaction, Reduced Scrap, and Reduced Rework Expenses.
2.
Cost of Detection/ Appraisal – Inspection of
RM / WIP / FG, Final Performance Test, Maintenance of Test Eqpt.
3.
Cost of Failure – Relates to non-conforming & non-performing products
?
?
Internal Failure Cost – Cost incurred before delivery of product e.g. – Scrap, Rework, Repair, Down Time (No cost if no defects produced within the system ) External Failure Cost – Cost incurred after product is delivered. e.g. – Cost of Returned Goods , Warranty Charges, Legal Exp., Customer Dissatisfaction
7
Conventional Approach
Begins at the end of product line External Customers Detection Deviation Relies on indices for conformance Tolerance range Build to specification
TQM Approach
Begins at the start of the process Internal and External customers Prevention Error Free Relies on cost of non-measurement Target Value Variability Reduction. 8
Quality Gurus
?
W. Edwards Deming - Assisted Japan in improving
productivity and quality
?
Philip B. Crosby -
“Quality Is Free” Co. should have the goal of zero defect
? ? ? ?
Armand Feigenbaum - Developed TQM concept Kaoru Ishikawa Quality circles & fishbone diagrams Joseph M. Juran Wrote Quality Control Handbook Genichi Taguchi - Associated with robust product design
9
Crosby’s Concept of Free Quality
?
Phillip Crosby – (Corp. VP & Director of Quality – ITT ) Quality is not a gift, but it is FREE . What costs money are the un-quality things - all the actions that involve not doing jobs right the first time. Quality is not only free; it is an honest-to-everything profit maker.
1 0
Quality Drives the Productivity Machine
?
If production does it right the first time and produces products and services that are defect-free, waste is eliminated and costs are reduced.
?
Quality management programs today are viewed by many companies as productivity improvement programs.
1 1
Other Aspects of the Quality Picture
?
? ?
?
Just-In-Time (JIT) manufacturing Product standardization Automated equipment Preventive maintenance
1 2
Emerging Quality Standards
?
? ?
?
ISO 9000 Standards Malcolm Baldrige National Quality Award Deming Prize Six Sigma Concept
1 3
Malcolm Baldrige National Quality Award
? ?
Awards given annually to U.S. firms Criteria include?
? ? ? ? ?
1. 2. 3. 4. 5. 6.
Leadership Strategic Planning Customer & Market Focus Information and Analysis HRD & Management Process Management
125 85 85 85 85 85
? ?
?
? ?
7. Business Results ( e.g. Customer Satisfaction Financial and Market Results Supplier Results , etc. ) Total Points
1 Winners are required to share their strategies to other applicants. 4
450 -------1000
Indian Scenario –
?
Tata Group have formulated their TBEM ( Tata Business Excellence Model) on the basis of Malcolm Baldrige Award. This is being used as a powerful tool to conduct the business through a more systematic approach and sustainable process that will not be dependent on any individual.
1 5
The Deming Prize
? ?
? ?
Given by Union of Japanese Scientists and Engineers Recognizes companies that have demonstrated successful quality improvement programs All (not just Japanese) firms are eligible Four top-management activities recognized Senior management activities ? Customer satisfaction activity Employee involvement activities Training activity
? ? ?
Indian Winners : Sundaram Clayton, M & M
1 6
ISO - Benefits of implementation:
ISO 9001 forces a firm to document all its processes. Such documentation makes the system process-dependant and no person-dependant. While defining the processes, the process-owners have to visualize all possible defect opportunity and strengthen the process. Audit procedures continually check the working of the process and force a re-examination of the processes. General benefits include: Clear understanding of customer requirements Better relationship with vendors and customers Reduction in operations cost Efficient business communication at all levels with all stake holders Lower defect rates, consistent output
? ? ? ? ?
1 7
Elements of TQM
? ?
?
? ?
?
? ? ?
Top management commitment and involvement Customer involvement Design products for quality Design production processes for quality Control production processes for quality Develop supplier partnerships Customer service, distribution and installation Building teams of empowered employees Benchmarking and continuous improvement
1 8
Top Management Commitment and Involvement
?
?
?
Support must be genuine or TQM will be seen as just another passing fad Fundamental changes must occur in the culture of the organization Such fundamental changes are not easy, but are impossible without top management’s commitment and involvement
1 9
Customer Involvement
?
?
Mechanisms to involve the customer Focus groups Market surveys Customer questionnaires Market research programs Quality Function Deployment (QFD) Formal system for identifying customer wants Eliminate wasteful product features and activities that do not contribute
? ? ? ? ? ?
2 0
Designing Products for Quality
?
Designing for Robustness Product to perform as intended, even under adverse working conditions Designing for Manufacturability (DFM) Products typically have fewer parts and can be assembled quickly, easily, and error-free. Designing for Reliability
?
?
?
Design for Logistics
2 1
Developing Supplier Partnerships
?
Supplier becomes part of the customer’s TQM drive The relationship between the supplier and the customer becomes long-lasting and durable ( not at Arm’s Length)
?
2 2
Customer Service, Distribution, and Installation
?
Packaging, shipping, and installation must be included in TQM. Warehousing, marketing, and the distribution function must be committed to perfect quality. Contact between the customers and the firm’s product must be planned and managed to provide satisfied customers.
2 3
?
?
Building Teams of Empowered Employees
?
?
?
?
Employee training programs Employees at all levels are trained in quality. Works teams and empowerment Workers are given the authority to act. Quality at the source Workers are responsible for their own work. Quality circles Small groups of employees who analyze and solve quality problems and implement improvement programs.
? ?
?
?
2 4
Benchmarking and Continuous Improvement
?
Benchmarking The practice of establishing internal standards of performance by looking to how world-class companies run their businesses
?
?
Continuous Improvement The company makes small incremental improvements toward excellence on a continual basis
?
2 5
Six Sigma Concept
?
Six Sigma simply means striving for near perfection.
?
It is a disciplined, data-driven approach & methodology for eliminating defects in any process - from manufacturing to transactional and from product to service. Driving towards 6 Std. Devns. (bet. Mean and the Spec. limit) i.e. The process must not produce > 3.4 def. /million pportunities.
?
2 6
Six Sigma Process
?
Accomplished through 2 sub-methodologies:
DMAIC (define, measure, analyze, improve, control) used for existing processes falling below specification and looking for incremental improvement. (define, measure, analyze, design, verify) used to develop new processes or products, or if a current process requires more than just incremental improvement. Both processes are executed by Six Sigma Green Belts and Black Belts, and are overseen by Master Black Belts.
DMADV
?
The goal of Six Sigma is to increase profits by eliminating variability, defects and waste.
2 7
3 Sigma and 6 Sigma Quality
Lower specification
1350 ppm 1.7 ppm
Upper specification
1350 ppm 1.7 ppm
Process mean +/- 3 Sigma +/- 6 Sigma
Process Capability
Nominal value
Six sigma Four sigma Two sigma
Lower specification Upper specification
Mean
2 9
Customer Delight ?
Philip Kotler : It is not just enough to satisfy a customer, but it is important to delight him. Delighting is - adding unexpected surprises to the offer Prof. W. E. Deming : It will not suffice to have customer that are merely satisfied. An unhappy customer will switch over. Unfortunately a satisfied customer may also switch, on the theory that he could not lose much, and might gain. Profit in business comes from repeat customers, customers that boast about your products and service, and that bring friends with them Examples of Customer Delight – Carry Bag, Goods Return Guarantee
?
?
3 0
Kano Model
?
Model of Customer Satisfaction Classifies product attributes (how they are perceived) and their effect on customer satisfaction. Useful for guiding design decisions – Identifying customer needs Determining functional requirements Concept development Analysing competitive products Indicates - when good is good enough, and when more is better. 3 1
?
?
Kano Model
3 Categories of Product attributes Satisfaction
Threshold Attributes
? ?
Basic or “musts” of a product, Not contributing to any product differentiation. Increasing attributes provide diminishing returns, but absence may results into dissatisfaction. ( e.g. Brakes of a car.)
Performance Attributes
? ?
?
Most of the customers verbalized needs fall into this category More is better, and will improve customer satisfaction. Conversely, weak performance reduces customer satisfaction. Customer’s willingness to pay is tied to performance attributes. ( e.g. Car providing better fuel economy)
Excitement Attributes
?
?
Unspoken & unexpected (Latent Needs) of customers, but may result into higher customer satisfaction. However absence may not lead to dissatisfaction. Provide a competitive advantage.
Dis-satisfaction
3 2
Quality of Life
?
Developed nations and U/d. ones classified according to ? Standard of Living
( In U/d. nations - max GDP % is spent on RKM )
?
New concept is
Quality of living Index = ( or choice of Living concept )
3 3
Choice Time -----------------Total Time
doc_959935131.ppt
This is a PPT explaining about Quality management.
Quality Management
0
Overview
? ?
?
? ?
Nature of Quality Traditional v/s Modern Quality Management Emerging Quality Standards TQM Programs Wrap-Up: What World-Class Producers Do
1
QUALITY
? ? ?
For the Japanese, it is religion For the Americans, it is their growth For the Gulf, it is bull-shit & For the Indians - it is waste of time & money ????
2
What is Quality?
“The quality of a product or service is a customer’s perception of the degree to which the product or service meets his or her expectations.”
3
Nature of Quality
?
Dimensions of Quality
Determinants of Quality Costs of Quality
?
?
4
Some Dimensions of Product Quality
?
Performance : Features : Reliability : Conformance : Durability :
Primary Optg. Characteristics of product e.g. - TV : Sound, Picture clarity, Color, Reception . Secdry Charct. that supplement basic functioning. e.g.-Free drinks on a flight, Automatic tuners in TV Dependability of product, as down-time is expensive meeting pre-established specifications
?
?
?
Amount of use one gets from a product before it deteriorates, e.g. -1000 hr. bulb
? ? ?
Appearance: looks, feels, sounds, tastes or smells. Customer service : Elapsed time before service is restored. Safety
5
Determinants of Quality
?
?
? ?
?
Quality of design Quality capability of production processes Quality of conformance Quality of customer service Organizational quality culture
6
Costs of Quality
1.
Cost of Prevention – for preventing defective goods to be provided.
e. g. : Investment in M/Cs, Technology, Education Programs, Data Collection & Analysis, This investment brings in high returns like – Customer Satisfaction, Reduced Scrap, and Reduced Rework Expenses.
2.
Cost of Detection/ Appraisal – Inspection of
RM / WIP / FG, Final Performance Test, Maintenance of Test Eqpt.
3.
Cost of Failure – Relates to non-conforming & non-performing products
?
?
Internal Failure Cost – Cost incurred before delivery of product e.g. – Scrap, Rework, Repair, Down Time (No cost if no defects produced within the system ) External Failure Cost – Cost incurred after product is delivered. e.g. – Cost of Returned Goods , Warranty Charges, Legal Exp., Customer Dissatisfaction
7
Conventional Approach
Begins at the end of product line External Customers Detection Deviation Relies on indices for conformance Tolerance range Build to specification
TQM Approach
Begins at the start of the process Internal and External customers Prevention Error Free Relies on cost of non-measurement Target Value Variability Reduction. 8
Quality Gurus
?
W. Edwards Deming - Assisted Japan in improving
productivity and quality
?
Philip B. Crosby -
“Quality Is Free” Co. should have the goal of zero defect
? ? ? ?
Armand Feigenbaum - Developed TQM concept Kaoru Ishikawa Quality circles & fishbone diagrams Joseph M. Juran Wrote Quality Control Handbook Genichi Taguchi - Associated with robust product design
9
Crosby’s Concept of Free Quality
?
Phillip Crosby – (Corp. VP & Director of Quality – ITT ) Quality is not a gift, but it is FREE . What costs money are the un-quality things - all the actions that involve not doing jobs right the first time. Quality is not only free; it is an honest-to-everything profit maker.
1 0
Quality Drives the Productivity Machine
?
If production does it right the first time and produces products and services that are defect-free, waste is eliminated and costs are reduced.
?
Quality management programs today are viewed by many companies as productivity improvement programs.
1 1
Other Aspects of the Quality Picture
?
? ?
?
Just-In-Time (JIT) manufacturing Product standardization Automated equipment Preventive maintenance
1 2
Emerging Quality Standards
?
? ?
?
ISO 9000 Standards Malcolm Baldrige National Quality Award Deming Prize Six Sigma Concept
1 3
Malcolm Baldrige National Quality Award
? ?
Awards given annually to U.S. firms Criteria include?
? ? ? ? ?
1. 2. 3. 4. 5. 6.
Leadership Strategic Planning Customer & Market Focus Information and Analysis HRD & Management Process Management
125 85 85 85 85 85
? ?
?
? ?
7. Business Results ( e.g. Customer Satisfaction Financial and Market Results Supplier Results , etc. ) Total Points
1 Winners are required to share their strategies to other applicants. 4
450 -------1000
Indian Scenario –
?
Tata Group have formulated their TBEM ( Tata Business Excellence Model) on the basis of Malcolm Baldrige Award. This is being used as a powerful tool to conduct the business through a more systematic approach and sustainable process that will not be dependent on any individual.
1 5
The Deming Prize
? ?
? ?
Given by Union of Japanese Scientists and Engineers Recognizes companies that have demonstrated successful quality improvement programs All (not just Japanese) firms are eligible Four top-management activities recognized Senior management activities ? Customer satisfaction activity Employee involvement activities Training activity
? ? ?
Indian Winners : Sundaram Clayton, M & M
1 6
ISO - Benefits of implementation:
ISO 9001 forces a firm to document all its processes. Such documentation makes the system process-dependant and no person-dependant. While defining the processes, the process-owners have to visualize all possible defect opportunity and strengthen the process. Audit procedures continually check the working of the process and force a re-examination of the processes. General benefits include: Clear understanding of customer requirements Better relationship with vendors and customers Reduction in operations cost Efficient business communication at all levels with all stake holders Lower defect rates, consistent output
? ? ? ? ?
1 7
Elements of TQM
? ?
?
? ?
?
? ? ?
Top management commitment and involvement Customer involvement Design products for quality Design production processes for quality Control production processes for quality Develop supplier partnerships Customer service, distribution and installation Building teams of empowered employees Benchmarking and continuous improvement
1 8
Top Management Commitment and Involvement
?
?
?
Support must be genuine or TQM will be seen as just another passing fad Fundamental changes must occur in the culture of the organization Such fundamental changes are not easy, but are impossible without top management’s commitment and involvement
1 9
Customer Involvement
?
?
Mechanisms to involve the customer Focus groups Market surveys Customer questionnaires Market research programs Quality Function Deployment (QFD) Formal system for identifying customer wants Eliminate wasteful product features and activities that do not contribute
? ? ? ? ? ?
2 0
Designing Products for Quality
?
Designing for Robustness Product to perform as intended, even under adverse working conditions Designing for Manufacturability (DFM) Products typically have fewer parts and can be assembled quickly, easily, and error-free. Designing for Reliability
?
?
?
Design for Logistics
2 1
Developing Supplier Partnerships
?
Supplier becomes part of the customer’s TQM drive The relationship between the supplier and the customer becomes long-lasting and durable ( not at Arm’s Length)
?
2 2
Customer Service, Distribution, and Installation
?
Packaging, shipping, and installation must be included in TQM. Warehousing, marketing, and the distribution function must be committed to perfect quality. Contact between the customers and the firm’s product must be planned and managed to provide satisfied customers.
2 3
?
?
Building Teams of Empowered Employees
?
?
?
?
Employee training programs Employees at all levels are trained in quality. Works teams and empowerment Workers are given the authority to act. Quality at the source Workers are responsible for their own work. Quality circles Small groups of employees who analyze and solve quality problems and implement improvement programs.
? ?
?
?
2 4
Benchmarking and Continuous Improvement
?
Benchmarking The practice of establishing internal standards of performance by looking to how world-class companies run their businesses
?
?
Continuous Improvement The company makes small incremental improvements toward excellence on a continual basis
?
2 5
Six Sigma Concept
?
Six Sigma simply means striving for near perfection.
?
It is a disciplined, data-driven approach & methodology for eliminating defects in any process - from manufacturing to transactional and from product to service. Driving towards 6 Std. Devns. (bet. Mean and the Spec. limit) i.e. The process must not produce > 3.4 def. /million pportunities.
?
2 6
Six Sigma Process
?
Accomplished through 2 sub-methodologies:
DMAIC (define, measure, analyze, improve, control) used for existing processes falling below specification and looking for incremental improvement. (define, measure, analyze, design, verify) used to develop new processes or products, or if a current process requires more than just incremental improvement. Both processes are executed by Six Sigma Green Belts and Black Belts, and are overseen by Master Black Belts.
DMADV
?
The goal of Six Sigma is to increase profits by eliminating variability, defects and waste.
2 7
3 Sigma and 6 Sigma Quality
Lower specification
1350 ppm 1.7 ppm
Upper specification
1350 ppm 1.7 ppm
Process mean +/- 3 Sigma +/- 6 Sigma
Process Capability
Nominal value
Six sigma Four sigma Two sigma
Lower specification Upper specification
Mean
2 9
Customer Delight ?
Philip Kotler : It is not just enough to satisfy a customer, but it is important to delight him. Delighting is - adding unexpected surprises to the offer Prof. W. E. Deming : It will not suffice to have customer that are merely satisfied. An unhappy customer will switch over. Unfortunately a satisfied customer may also switch, on the theory that he could not lose much, and might gain. Profit in business comes from repeat customers, customers that boast about your products and service, and that bring friends with them Examples of Customer Delight – Carry Bag, Goods Return Guarantee
?
?
3 0
Kano Model
?
Model of Customer Satisfaction Classifies product attributes (how they are perceived) and their effect on customer satisfaction. Useful for guiding design decisions – Identifying customer needs Determining functional requirements Concept development Analysing competitive products Indicates - when good is good enough, and when more is better. 3 1
?
?
Kano Model
3 Categories of Product attributes Satisfaction
Threshold Attributes
? ?
Basic or “musts” of a product, Not contributing to any product differentiation. Increasing attributes provide diminishing returns, but absence may results into dissatisfaction. ( e.g. Brakes of a car.)
Performance Attributes
? ?
?
Most of the customers verbalized needs fall into this category More is better, and will improve customer satisfaction. Conversely, weak performance reduces customer satisfaction. Customer’s willingness to pay is tied to performance attributes. ( e.g. Car providing better fuel economy)
Excitement Attributes
?
?
Unspoken & unexpected (Latent Needs) of customers, but may result into higher customer satisfaction. However absence may not lead to dissatisfaction. Provide a competitive advantage.
Dis-satisfaction
3 2
Quality of Life
?
Developed nations and U/d. ones classified according to ? Standard of Living
( In U/d. nations - max GDP % is spent on RKM )
?
New concept is
Quality of living Index = ( or choice of Living concept )
3 3
Choice Time -----------------Total Time
doc_959935131.ppt