Description
attributes of quality and supply side advantage of quality improvement. It also includes Crosby's quality postures, quality costs. It explains the W Edward Demings 14 points to management. It also includes few quantitative tools for measuring quality like pareto diagram, fish bone diagram etc.
Total Quality Management (TQM)
A+
Saw it on the tube Bought it on the phone Now you're home alone It's a piece of crap. I tried to plug it in I tried to turn it on When I got it home It was a piece of crap.
---Neil Young
Product and Process Improvement
Low Cost
Cheap & Fast
Good & Cheap
Fast Response
Good & Fast
High Quality
• Short-run product improvement requires choosing among competing objectives • Lon-run product improvement requires improving the process so that multiple objectives can be improved simultaneously
The Supply-Side Advantages of Quality Improvement
• Quality Implications for System-wide Improvement:
– quality promotes cycle time reduction (faster) – quality promotes variability reduction (cheaper) – quality promotes better management (more responsive)
• Quality Implications on Profitability
– Revenue growth: higher price and better reputation – Cost elimination: higher productivity and less scrap TQM is more about long-term process improvement than short-term product quality improvement.
Attributes of Quality
• Quality Definitions:
– Transcendent: innate excellence or “I know it when I see it” view. – Product-based: function of product attributes or “more is better” view.
– User-based: customer satisfaction or “it fits my needs” view.
– Manufacturing-based: conformance to specifications view. – Value-based: price/performance or “most affordable alternative” view.
A Bit of Quality History
• 1920s: Inspection. To improve quality, hire a quality professional to screen out defective materials (RM,WIP,FG).
– Focus on the QC Manager – Dodge/Romig acceptance sampling – Scientific sampling within manufacturing
• 1940s: Process Control. To improve quality, hire an engineer to monitor and improve the reliability of each process step.
– – – – Focus on Engineering Industrial education in process control Deming suggests simple quantitative methods for monitoring process Consumerism & foreign competition
• 1980s: Product and Process Design. To improve quality, focus the whole organization on satisfying the customer.
– Focus on TQM – Cost of conformance tools developed – Design for manufacturability & Reliability engineering
Today most companies view quality very broadly
Quality Principles 1. Customer focus 2. Continuous improvement 3. Employee empowerment 4. Benchmarking 5. Just-in-Time 6. The tools of TQM
• High quality
– – – – – – – – performance features reliability conformance durability serviceability aesthetics perceived quality
Philip Crosby
• Former VP of quality control. • Wrote “Quality is Free: The Art of Making Quality Certain” • Proposed: “Zero Defects” as the goal for quality
– “Consider the AQL you would establish on the product you buy. Would you accept an automobile that you knew in advance was 15% defective? %5? 1%? 1/2%? How about nurses that care for newborn babies? Would an AQL of 3% on mishandling be too rigid?” – “Mistakes are caused by lack of knowledge and lack of attention”
Crosby’s Quality Postures
• Uncertainty – We don’t know why we have problems with quality • Awakening – It is absolutely necessary to always have problems with quality • Enlightenment – Through management commitment and quality improvement we are identifying and resolving our problems • Wisdom – Defect prevention is a routine part of our operation • Certainty – We know why we don’t have problems with quality
Cost of quality as a percentage of sales Reported Actual ??? 20%
3%
18%
8%
12%
6%
8%
2%
2%
Categories of Quality Costs
• Prevention costs – Costs associated with preventing defects • Appraisal costs – Costs associated with assessing quality within a productive system • Internal failure costs – Costs associated with losses from disposal of or fixing quality problems • External failure costs – Costs associated with releasing poor quality into the demand stream • Cost of yield loss • cost to send your employees to quality training • warranty costs associated with unplanned product repair • cost of a new automated quality testing device • cost of rework • loss of market share due to a national product purity scandal • litigation cost due to product defect
Calculation of Yield Loss
• B(1-d1)(1-d2)(1-d3)…(1-dn) = m • Thus: B=m/(1-d1)(1-d2)(1-d3)…(1-dn) • Where:
– – – – di = proportion of defectives generated by operation i n = number of operations m = number of finished products B = raw material started in process
Example: 1000 finished product needed from a flow cell 4 operations generating 2%,3%,5%,3% proportion defective respectively. How many units must be started in the process?
Quality Costs
1142
2% 23 1119 1086 5% 33 1031 3%
3%
1000
55
31
What are the quality costs associated with these defects?
Rework
Does reworking the defects solve the cost problem?
• Impacts: – Lost capacity. – Increased processing costs. – Increased variability. • Possible Cures: – Eliminate rework. – Use non-bottleneck for reworking (subcontract?). – Shorten rework loop.
J.M. Juran
• Quality from the bottom of the organization up • Quality is “fitness for use” • The Quality Trilogy
– Planning: create a processes capable of meeting quality goals – Control: compare actual performance to standard and take action on the difference – Improvement: find ways to better than the standard
The PDCA Cycle
Investigate using real data (must a test be conducted?). Locate significant problem. Develop a plan of action.
Make change permanent. Try another change
ACT
PLAN
CHECK
Evaluate results using real data. Did improvement occur?
DO
Perform tests. Analyze data. Carry out change.
W. Edwards Deming
• Quality is first a management responsibility • There are two keys to ongoing quality improvement
– Employee training – Reacting to process data in real time
• Variation is the disease and SPC/SQC tools are the cure • Developed 14 points for management to ensure proactive environment
Demings 14 Points to management
• Create constancy of purpose for improvement of products and services
– – – – innovate put resources into research and education constantly improve design maintenance
• Adopt the new philosophy
– eliminate mistakes, defects, unsuitable material – people must understand their jobs
• Cease dependence on mass inspection
– don’t plan for defects – process capability
14 Points (cont)
• End the practice of awarding business based on price alone
– Uniformity – Reliability
• Improve constantly and forever the system of production and service
– reduce waste – improve capability
• Institute training
– eliminate variable standards – professional on-the-job training
14 Points (cont)
• Institute leadership
– remove barriers to pride in workmanship – supervisor’s job is to help employees do their job
• Drive out fear
– eliminate fear to ask questions – eliminate inability to do what’s best for the company
• Break down barriers between staff areas
– don’t rush jobs into production – Don’t allow last minute changes to product of process
14 Points (cont)
• Eliminate slogans, exhortations, and targets for the workforce. The effect of which is:
– – – – – – fail to accomplish the goal variability increases defective products increase in number costs increase demoralize the workforce management disrespect
• Eliminate numerical quotas
– quotas account for quantity not quality – they guarantee inefficiency and high cost
14 Points (cont)
• Remove barriers to pride in workmanship
– define what acceptable workmanship is – help people understand how their jobs interact – provide good tools in good repair
• Institute a vigorous program of education and retraining
– job enlargement – job enrichment
• Take action to accomplish the transformation
– create a management structure that pushes on the above 13 points every day
Pareto Diagram
This tools provides a graphical description of which specific quality problems should be attacked first. Example: the manager of an appliance manufacturing firm has been provided with the following data regarding blenders rejected after final inspection.
blades not attached
Problem motor inoperative housing cracked blades not attached blemishes missing components
# of defects 198 25 103 18 72
housing cracked
Cause-and-Effect Chart (fishbone diagram)
Equipment People
Service delay at KFC drive-thru
Materials
Methods
A Systems View of Total Quality Management
CONTINUOUS IMPROVEMENT
MANAGEMENT COMMITMENT & LEADERSHIP
CUSTOMER
EMPOWERMENT
MGT BY FACT
FOCUS
EMPLOYEE INVOLVEMENT
ANALYTICAL PROCESS THINKING
doc_339476857.pptx
attributes of quality and supply side advantage of quality improvement. It also includes Crosby's quality postures, quality costs. It explains the W Edward Demings 14 points to management. It also includes few quantitative tools for measuring quality like pareto diagram, fish bone diagram etc.
Total Quality Management (TQM)
A+
Saw it on the tube Bought it on the phone Now you're home alone It's a piece of crap. I tried to plug it in I tried to turn it on When I got it home It was a piece of crap.
---Neil Young
Product and Process Improvement
Low Cost
Cheap & Fast
Good & Cheap
Fast Response
Good & Fast
High Quality
• Short-run product improvement requires choosing among competing objectives • Lon-run product improvement requires improving the process so that multiple objectives can be improved simultaneously
The Supply-Side Advantages of Quality Improvement
• Quality Implications for System-wide Improvement:
– quality promotes cycle time reduction (faster) – quality promotes variability reduction (cheaper) – quality promotes better management (more responsive)
• Quality Implications on Profitability
– Revenue growth: higher price and better reputation – Cost elimination: higher productivity and less scrap TQM is more about long-term process improvement than short-term product quality improvement.
Attributes of Quality
• Quality Definitions:
– Transcendent: innate excellence or “I know it when I see it” view. – Product-based: function of product attributes or “more is better” view.
– User-based: customer satisfaction or “it fits my needs” view.
– Manufacturing-based: conformance to specifications view. – Value-based: price/performance or “most affordable alternative” view.
A Bit of Quality History
• 1920s: Inspection. To improve quality, hire a quality professional to screen out defective materials (RM,WIP,FG).
– Focus on the QC Manager – Dodge/Romig acceptance sampling – Scientific sampling within manufacturing
• 1940s: Process Control. To improve quality, hire an engineer to monitor and improve the reliability of each process step.
– – – – Focus on Engineering Industrial education in process control Deming suggests simple quantitative methods for monitoring process Consumerism & foreign competition
• 1980s: Product and Process Design. To improve quality, focus the whole organization on satisfying the customer.
– Focus on TQM – Cost of conformance tools developed – Design for manufacturability & Reliability engineering
Today most companies view quality very broadly
Quality Principles 1. Customer focus 2. Continuous improvement 3. Employee empowerment 4. Benchmarking 5. Just-in-Time 6. The tools of TQM
• High quality
– – – – – – – – performance features reliability conformance durability serviceability aesthetics perceived quality
Philip Crosby
• Former VP of quality control. • Wrote “Quality is Free: The Art of Making Quality Certain” • Proposed: “Zero Defects” as the goal for quality
– “Consider the AQL you would establish on the product you buy. Would you accept an automobile that you knew in advance was 15% defective? %5? 1%? 1/2%? How about nurses that care for newborn babies? Would an AQL of 3% on mishandling be too rigid?” – “Mistakes are caused by lack of knowledge and lack of attention”
Crosby’s Quality Postures
• Uncertainty – We don’t know why we have problems with quality • Awakening – It is absolutely necessary to always have problems with quality • Enlightenment – Through management commitment and quality improvement we are identifying and resolving our problems • Wisdom – Defect prevention is a routine part of our operation • Certainty – We know why we don’t have problems with quality
Cost of quality as a percentage of sales Reported Actual ??? 20%
3%
18%
8%
12%
6%
8%
2%
2%
Categories of Quality Costs
• Prevention costs – Costs associated with preventing defects • Appraisal costs – Costs associated with assessing quality within a productive system • Internal failure costs – Costs associated with losses from disposal of or fixing quality problems • External failure costs – Costs associated with releasing poor quality into the demand stream • Cost of yield loss • cost to send your employees to quality training • warranty costs associated with unplanned product repair • cost of a new automated quality testing device • cost of rework • loss of market share due to a national product purity scandal • litigation cost due to product defect
Calculation of Yield Loss
• B(1-d1)(1-d2)(1-d3)…(1-dn) = m • Thus: B=m/(1-d1)(1-d2)(1-d3)…(1-dn) • Where:
– – – – di = proportion of defectives generated by operation i n = number of operations m = number of finished products B = raw material started in process
Example: 1000 finished product needed from a flow cell 4 operations generating 2%,3%,5%,3% proportion defective respectively. How many units must be started in the process?
Quality Costs
1142
2% 23 1119 1086 5% 33 1031 3%
3%
1000
55
31
What are the quality costs associated with these defects?
Rework
Does reworking the defects solve the cost problem?
• Impacts: – Lost capacity. – Increased processing costs. – Increased variability. • Possible Cures: – Eliminate rework. – Use non-bottleneck for reworking (subcontract?). – Shorten rework loop.
J.M. Juran
• Quality from the bottom of the organization up • Quality is “fitness for use” • The Quality Trilogy
– Planning: create a processes capable of meeting quality goals – Control: compare actual performance to standard and take action on the difference – Improvement: find ways to better than the standard
The PDCA Cycle
Investigate using real data (must a test be conducted?). Locate significant problem. Develop a plan of action.
Make change permanent. Try another change
ACT
PLAN
CHECK
Evaluate results using real data. Did improvement occur?
DO
Perform tests. Analyze data. Carry out change.
W. Edwards Deming
• Quality is first a management responsibility • There are two keys to ongoing quality improvement
– Employee training – Reacting to process data in real time
• Variation is the disease and SPC/SQC tools are the cure • Developed 14 points for management to ensure proactive environment
Demings 14 Points to management
• Create constancy of purpose for improvement of products and services
– – – – innovate put resources into research and education constantly improve design maintenance
• Adopt the new philosophy
– eliminate mistakes, defects, unsuitable material – people must understand their jobs
• Cease dependence on mass inspection
– don’t plan for defects – process capability
14 Points (cont)
• End the practice of awarding business based on price alone
– Uniformity – Reliability
• Improve constantly and forever the system of production and service
– reduce waste – improve capability
• Institute training
– eliminate variable standards – professional on-the-job training
14 Points (cont)
• Institute leadership
– remove barriers to pride in workmanship – supervisor’s job is to help employees do their job
• Drive out fear
– eliminate fear to ask questions – eliminate inability to do what’s best for the company
• Break down barriers between staff areas
– don’t rush jobs into production – Don’t allow last minute changes to product of process
14 Points (cont)
• Eliminate slogans, exhortations, and targets for the workforce. The effect of which is:
– – – – – – fail to accomplish the goal variability increases defective products increase in number costs increase demoralize the workforce management disrespect
• Eliminate numerical quotas
– quotas account for quantity not quality – they guarantee inefficiency and high cost
14 Points (cont)
• Remove barriers to pride in workmanship
– define what acceptable workmanship is – help people understand how their jobs interact – provide good tools in good repair
• Institute a vigorous program of education and retraining
– job enlargement – job enrichment
• Take action to accomplish the transformation
– create a management structure that pushes on the above 13 points every day
Pareto Diagram
This tools provides a graphical description of which specific quality problems should be attacked first. Example: the manager of an appliance manufacturing firm has been provided with the following data regarding blenders rejected after final inspection.
blades not attached
Problem motor inoperative housing cracked blades not attached blemishes missing components
# of defects 198 25 103 18 72
housing cracked
Cause-and-Effect Chart (fishbone diagram)
Equipment People
Service delay at KFC drive-thru
Materials
Methods
A Systems View of Total Quality Management
CONTINUOUS IMPROVEMENT
MANAGEMENT COMMITMENT & LEADERSHIP
CUSTOMER
EMPOWERMENT
MGT BY FACT
FOCUS
EMPLOYEE INVOLVEMENT
ANALYTICAL PROCESS THINKING
doc_339476857.pptx