Quality Today Presented by Kamran Shaukat Ali Khan

Quality Today Presented by: Kamran Shaukat Ali Khan chromeis. com/TQM

Download latest version of this File ! n n n This file was downloaded from: chromeis. com/TQM Download latest version of the slides from above URL. Feel free to distribute the file and share knowledge The file is available as Read-Only and does not require password to open. View in Presentation Mode – the slides animation is designed purposely to nurture audience understanding Direct your feedback to above URL or to author at kamran. khan@chromeis. com Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 2

Quality Today n n n What is Quality Dimensions & Obstacles Cost of Quality Productivity Enhancement Leadership for Quality ISO and other Models Total Quality Management Benchmarking vs Competitive Analysis Statistical Process Control Check Sheet and other tools Six-Sigma Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 3

ABSTRACT -- what means ‘quality’ today? -- what sneaks quality in a product -- Myths about quality -- using modern tools to establish quality discipline Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 4

INTRODUCTION n n n Originators of Quality? Why Quality (Significance) … An important determinant of business profitability Positively & significantly related to higher return on investment Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 5

Why Quality…? Invention (never existed) Innovation (something new) Technology Lead (e. g. Pentium Processors) Imitation (copying) Market Lead (e. g. Common Utensils) An innovation happens to CREATE or SERVE the market NEED Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 6

Quality Today n What is Quality n n n n Quality Dimensions & Obstacles Cost of Quality Productivity Enhancement Leadership ISO and other Models Total Quality Management Six-Sigma Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 7

Definitions n n n Conformance to Specifications Conformance to Standards Freedom from defects A Degree of Excellence Fitness for intended Purpose/Use … Obsolete Definitions Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 8

Definitions n Customer Satisfaction n Quality is the totality of characteristics of an entity that bears on its ability to satisfy the stated or implied needs. … Today’s Definition Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 9

What is Quality? Means many things to many people - it is usually associated with cost. n Fitness for purpose – J M Duran n Conformance to requirements q Providing customers, both internal and external, with products and services that fully satisfy their negotiated requirements. – P B Crosby The degree of excellence of a thing. – Concise Oxford Dictionary Totality of features and characteristics of a product or service that bears upon its ability to satisfy stated or implied needs. – International Standards Organisation Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 10

What is Quality? …cont. n n Quality is a predictable degree of uniformity and dependability, at low cost and suited to the market. – Dr Edwards Deming Quality is meeting the (stated) requirements of the customer- now and in the future. – Mike Robinson Conformance quality - conforming to specifications; having a product or service that meets predetermined standards. Requirements quality - meeting total customer requirements; having perceived attributes of a service or product that meet or exceed customer requirements. Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 11

What is Quality? …cont. n Quality is the total composite product and service characteristics of marketing, engineering, manufacturing and maintenance through which the product and service in use will meet the expectations by the customer – Armand Feigenbaum n Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs – ISO 8402 : 1994 Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 12

Definition: n Customer Delight Customer Satisfaction Bugs free – Fulfilling Req. … Tomorrow’s Definition Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 13

More About Quality n Basic Quality n n Un-stated Requirements Stated Requirements Additional features as pleasant surprises to delight customer Performance Quality Excitement Quality Basic Quality & Excitement Quality are both UNSPOKEN Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 14

What to do ? Satisfy the internal as well as external customers Empower Rather than Controlling subordinates Emphasis on Improvement rather than Maintenance Encourage Collaboration rather than competition Emphasis: Prevention is better than Detection Train & Coach rather than supervise Learn from Problems (PDSA) Communication Improvement Strong Commitment to Quality Prefer Quality over Price Recognize Team Effort Establish a System …and a whole lot more!! Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 15

Quality Check Theory – Shewhart: 1931 Req. 59 -60 ml of medicine to be filled in bottle. Refer to graph and observe the statistics Identify 2 possible concerns regarding Quality 59 -60 is within Quality but above trend is threatening Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 16

Quality Loss Function – Taguchi: 1950 n Customer Requires delivery in 4 -6 Days q Actual Delivery Takes: 4 Days in routine q Actual Delivery Took: 5 Days n n Customer Requirement is being met But Quality has been compromised Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 17

Quality Today n What is Quality n Quality Dimensions & Obstacles n n n Cost of Quality Productivity Enhancement Leadership for Quality ISO and other Models Total Quality Management Six-Sigma Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 18

Dimensions of Quality – Gravin n n n n Performance Features Conformance Reliability Durability Service Response Aesthetics Repute : Stated Req. : Additional offering : To Standards/ISO/CMM : Consistency in performance : Life time of product/service : After sale support/behavior : Curtsey & Delivery time etc : Looks & beautifying things : brand name/advertising Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 19

Meaning of Quality The meaning of Quality Products Perspective Production Consumers Perspective Quality of Conformance …………… Quality of design …………… Conformance to specifications + Cost Quality Characteristics + Price Marketing Fitness for consumer use Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 20

Obstacles to Quality Resistance to Change Poor Reading habits Poor Writing habits Inertia in accepting Quality Misconception: Additional cost Adherence Standardization is absolute Different hindrances in achieving Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 21

Rehabilitation and Cultural Change Trainings for fresh The Clues are there! Ø Official Lifestyle Change (+ve) “Train the Trainer” Individual Development Ø Top Management Involvement Ø Instill the importance of Quality (Quality Circle) Ø Everyone’s responsibility Ø Concept of Internal & External customers Ø Quality at source (Reduced Inspection) Ø Focus on using Strength rather then weaknesses Ø Quality consistency (high priority rather than level of output) Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 22

Strategic Implications of QMS n n n Quality is key to effective strategy Clear strategic goal, vision, mission High quality goals Operational plans & policies Feedback mechanism Strong leadership Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 23

Quality Today n n What is Quality Dimensions & Obstacles n Cost of Quality n n n Productivity Enhancement Leadership for Quality ISO and other Models Total Quality Management Six-Sigma Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 24

Cost of Quality n Cost of achieving good quality q q n Prevention Appraisal Cost of poor quality q q Internal failure costs External failure costs Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 25

Quality is Free – Crosby: 1950 n Myths q q q High Cost Overhead Wastage of Money Preventing: Cost of poor quality n Prevention Cost n Appraisal Cost n Internal Failure Cost n External Failure Cost Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 26

Quality Index Example Quality Costs $ 2004 2005 2006 2007 Prevention $ 27, 000. 00 41, 500. 00 74, 600. 00 112, 300. 00 Appraisal $ 155, 000. 00 122, 500. 00 113, 400. 00 107, 000. 00 Internal failure $ 386, 400. 00 469, 200. 00 347, 800. 00 219, 100. 00 External failure $ 242, 000. 00 196, 000. 00 103, 500. 00 106, 000. 00 Total $ 810, 400. 00 829, 200. 00 639, 300. 00 544, 400. 00 Sales $ 4, 360, 000. 00 4, 450, 000. 00 5, 050, 000. 00 5, 190, 000. 00 Mfg. Costs $ 1, 760, 000. 00 1, 810, 000. 00 1, 880, 000. 00 1, 890, 000. 00 Accounting: Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 27

Quality Index Total quality Cost *100/base $810, 400 *100 / 4, 360, 000 = 18. 58 Year Sales Cost 2004 18. 58 46. 04 2005 18. 63 45. 18 2006 12. 66 34. 00 2007 10. 49 28. 80 Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 28

Quality Indexes n Labor Index quality cost / labor hours n Cost Index quality cost / manufacturing cost n Sales Index quality cost / sales n Production Index quality cost / units produced Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 29

Quality Today n n n What is Quality Dimensions & Obstacles Cost of Quality n Productivity Enhancement n n Leadership for Quality ISO and other Models Total Quality Management Six-Sigma Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 30

Quality and Productivity n n n Productivity = output / input Fewer defects increase output Improved Quality reduces inputs Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 31

Productivity Enhancement Techniques Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 32

How Should I…? Adjusting Perceptions… Le ad ers hip Commitment Continuous Improvement No Expectation of Quick Reward Enabling Vs. Restricting e O t E n e rm e ow p m om c t u Inn ov Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute Organized Team Synergy ati on 33

Quality Today n n What is Quality Dimensions & Obstacles Cost of Quality Productivity Enhancement n Leadership for Quality n n n ISO and other Models Total Quality Management Six-Sigma Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 34

Leadership and Quality Management n n n “Leadership is the ability to inspire people to make a total, willing and voluntary commitment to accomplishing or exceeding organizational goals” Understand Employees Needs Understand Individuals’ Beliefs Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 35

Leadership Characteristics n n n Walk the talk Persuasiveness Positive Influence Good Communication Positive Role Model Balanced Commitment Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 36

Types of Leadership n Delegating q q q n Assigns responsibilities Assigns authority Provides minimal input Verifies work Recognizes employees for accepting responsibility Directing q q q Engages in unilateral decision making Expects employees to follow order Give information about what to do Gives information about how to do Gives information about why it should be done Recognizes employees for following instructions Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 37

Types of Leadership Styles n Participative q q q n Consultative q q q n Provides guidance Gets involved when necessary Accepts works and decisions of employees Helps others analyze and solve problems Recognizes employees for seeking support Seeks input, advice and suggestions Makes final decision Recognizes employees for their contribution … Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 38

Misconceptions about Leaders n n n Leaders Exists at the top Leaders are born not made Leaders are Charismatic Leadership is rare Skill Leaders don’t need to be learners Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 39

Leadership for Quality n n n n n Customer (both internal & External) Focus Obsession with Quality They empower rather than control Subordinates Emphasize collaboration rather than competition Regular & Continuous education & Training programs Try to improve communication (continuously) Looking for Faults in a system not specific Problem Select suppliers on the basis of quality and not price Teamwork Establish organizational system to support quality effort Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 40

Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 41

Habits of Highly Effective People n Proactive not reactive q q q n Begin with the End in Mind q q q n n n There is nothing I can do : : Lets look at our alternatives I must : : I prefer She makes me so mad : : I control my own feelings Never compromise with honesty Keep a sense of humor Exercise daily (healthy body healthy brain) Never fear mistakes Go through leadership articles daily (regularly read about world leaders) Put First things First Think Win-Win First understand, Then be understood Synergy Stop blaming – take responsibility Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 42

Employees & Quality Improvement n n Quality circles Employees’ suggestions Process improvement teams Self-managed work teams Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 43

The Quality Circle Process Organization 8 -10 members same area moderator Training Group processes Data collection Problem analysis Presentation Implementation Monitoring Solution Problem results Problem Analysis Causes & effect data collection & analysis Problem ID List alternatives Consensus Brainstorming Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 44

Customer Orientation Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 45

Customer & Quality Management Customers can be: q q Internal Customers n What is needed from me? n What is use of my output? n Gaps between what is needed & what one gets External Customers (customer defined values) n Performance n Features n Service n Warranty n Price n Reputation Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 46

Customer value Analysis (CVA) n Issues in hand: q q q n Understand your Customer Identify customers’ needs Continuous communication with your customer Customer Value Analysis: q q q Determine attributes customers value most Rate the relative importance of Attributes Assess your organization performance against these attributes Let customers Compare these attributes with your competitors Repeat the process periodically Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 47

Quality Today n What is Quality Dimensions & Obstacles Cost of Quality Productivity Enhancement Leadership n ISO and other Models n n n Total Quality Management Six Sigma Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 48

The Four Absolutes of Quality n Quality is conformance to requirements - Do what you said you would do n The system for producing quality is NOT prevention, NOR is it appraisal - Solve problems permanently n The performance standard is ZERO defects - Right first time and every time n Quality is measured by the cost of Non-Conformance - Repair / re-work is paid for out of profits Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 49

Traditional Way of Quality Control n Takes place q During q And at the end of the process n Three Main points where inspection is done q When raw material is purchased q When production is going on q When product ready to be dispatched n Disadvantages: q Does not add value q Is not timely q Done by Quality Control Inspection Team Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 50

ISO 9000 Categories n n n ISO 9001 – Suppliers and Designers ISO 9002 – Production ISO 9003 – Inspection and Test ISO 9004 – Quality Management ISO 14000 – Environmental Hazards ISO 27001 – Security Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 51

Implications of ISO 9000 n n n Adopted by U. S. Navy, Du. Pont, 3 M, AT&T & others Certification required by many foreign firms U. S. firms export > $100 billion/yr Europe Truly international in scope ISO Accreditation q European registration n n q 3 rd party registrar assesses quality program European Conformity (CE) mark authorized United States 3 rd party registrars n n n American National Standards Institute (ANSI) American Society of Quality Control (ASQC) Registrar Accreditation Board (RAB) Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 52

International Organization for Standardization n n International standardization began in the electrotechnical field ISO’s Principal activity is to develop technical Standards Network of the national standards institutes of 156 countries ISO is a non-governmental organization Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 53

Members of ISO n Member Bodies q q n Correspondent Members q q n Full members Each have one vote Pay reduced membership fees Do not yet have a fully developed national standards activity Are entitled to participate in any policy or technical body as observers No voting rights Subscriber Members q Are institutes from countries with very small economies Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 54

The hallmarks of the ISO brand n Equal footing q n Each participating member in ISO has one vote Voluntary q As a non-governmental organization, ISO has no legal authority to enforce their implementation n Market-driven q ISO develops only those standards for which there is a market requirement n Consensus q n Worldwide q n ISO incorporate any changes after consent of members Worldwide operations – worldwide members Global Industries q Having members from various industries worldwide to make is generic model Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 55

ISO 9000 & ISO 14000 n Generic Management System Standards q Generic means that the same standards can be applied n n q n Management system refers to what the organization does to manage its processes, or activities ISO 9000 is concerned with “Quality Management” q q n to any organization, large or small whatever its product - including whether its "product" is actually a service in any sector of activity whether it is a business enterprise, a public administration, or a government department concerns with: customer's quality requirements applicable regulatory requirements aims to: enhance customer satisfaction achieving continual improvement of its performance in pursuit of these objectives ISO 14000 is Primarily concerned with “Environment Management” Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 56

Quality Management Principles n n n n Customer Focus Leadership Involvement of People Process approach System approach Continual improvement Factual approach to decision making Mutual beneficial supplier relationship Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 57

Quality Today n What is Quality Dimensions & Obstacles Cost of Quality Productivity Enhancement ISO and other Models n Total Quality Management n Six Sigma n n Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 58

TQM Wheel Customer satisfaction n n Product Design Process Design (Purchasing) Benchmarking Problem Solving Tools Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 59

TQM Principles 2. Top management leadership (Long term) Customer Focus 3. Quality as a strategic issue 4. Statistical Quality Control 5. Shared problem solving Continuous Improvement (business and production Process) 1. 6. 7. 8. Training & education for all employees All employees responsible for quality Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 60

TQM: Deming Philosophy Plan Deming Wheel Act Do Check Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 61

Deming’s 14 Points 1. 2. 3. 4. 5. Create and communicate to all employees a statement of the aims and purposes of the company. Adapt to the new philosophy of the day; industries and economics are always changing. Build quality into a product throughout production. End the practice of awarding business on the basis of price tag alone; instead, try a long-term relationship based on established loyalty and trust. Work to constantly improve quality and productivity. Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 62

Deming’s 14 Points 6. 7. 8. 9. Institute on-the-job training. Teach and institute leadership to improve all job functions. Drive out fear; create trust. Strive to reduce intradepartmental conflicts. Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 63

Deming’s 14 Points Eliminate exhortations for the work force; instead, focus on the system and morale. 11. a- Eliminate work standard quotas for production. Substitute leadership methods for improvement. b- Eliminate MBO. Avoid numerical goals. Alternatively, learn the capabilities of processes, and how to improve them. 12. Remove barriers that rob people of pride of workmanship 13. Educate with self-improvement programs. 14. Include everyone in the company to accomplish the transformation. 10. Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 64

Benchmarking n Standard or point of reference n “Benchmarking is a systemic method by which organization can measure themselves against the best industry Practices” n “Benchmarking is the process of comparing and measuring an organization’s operations or its internal processes against those of a best-in-class performer from inside or outside its industry” Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 65

Benchmarking n Continuous, systematic process that measures products, services and practices against those of industry leaders. Basic Steps n Planning n Analysis n Integration n Action Planning Analysis Integration Action nn Determine what to Benchmark Determine the gap between your firm’s Establish goals Develop action plans and team assignments nn current performance and that of the Form a benchmark team Obtain the support of managers who must benchmark firms provide resources for accomplishing the Implement the plans nn Identify benchmarking partners nn Identify the causes of significant gaps goals Monitor progress and recalibrate the n Determine the measures of performance benchmarks as improvement is made n Collect the data Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 66

Types of Benchmarking n n n n Process benchmarking - identifying and observing the best practices from one or more benchmark firms. Financial benchmarking - performing a financial analysis and comparing the results in an effort to assess overall competitiveness and productivity. Performance benchmarking - allows the initiator firm to assess their competitive position by comparing products and services with target firms. Product benchmarking - the process of designing new products or upgrades to current ones. This process can sometimes involve reverse engineering which is taking apart competitors products to find strengths and weaknesses. Strategic benchmarking - involves observing how others compete. This type is usually not industry specific, meaning it is best to look at other industries. Operational benchmarking - embraces everything from staffing and productivity to office flow and analysis of procedures performed. Functional benchmarking - focus single function in order to improve the operation of that particular function. Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 67

Benchmarking Key Points: n n What are others Performance level? How did they get there? What is our Performance level? How do we do it? It is a mean of identifying processes that require major change Done between consenting companies (which may or may not be competitors) Compares your process or practice with target company to find “secrets of success” Equally beneficial for large and small companies Creative adaptation Breakthrough Performance Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 68

Benchmarking vs. Competitive analysis n n Competitive analysis involves comparing competitor’s product against yours. While Benchmarking involves comparing how product is engineered, manufactured, distributed and supported. Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 69

Benchmarking Process n n n Obtain management commitment Understand Current Performance Identify your strong and weak processes and document them (Baseline your own processes) Decide what to benchmark (Find out high impact areas i. e. Critical success factors) Form benchmarking teams Research the best-in-class Collect data Analyze the data and establish the gap Plan action to close the gap/surpass Implement change Monitor Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 70

Prerequisites to Benchmarking n n n n Will and Commitment Vision/Objective link Goal to become the best (& simply not to improve) Openness to new ideas Process Documented Understanding of existing Processes, Products, Services and customer needs Process Analysis skills Research, Communication and Team building skills Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 71

Obstacles to Benchmarking n n n Internal Focus Unrealistic timetable Poor team composition Settling for ordinary-in-class Insensitivity to Partners Limited Top Management Support Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 72

Statistical Process Control n n Take periodic samples from process Plot sample points on control chart Determine if process is within limits Prevent quality problems Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 73

Statistical Process Control n Monitors standards, makes measurements and take corrective actions as the product or service is being produced. n Stats q q q n n Collection Tabulation Analysis Presenting For Decision making Population and Sample It is a technical tool q q Controls the process Has the capability to improve it Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 74

SPC: Variation n Common Causes q Variation inherent in a process q Can be eliminated only through improvements in the system Special Causes q Variation due to identifiable factors q Can be modified through operator or management action Types of Data Collected: q Attribute data n q Product characteristic evaluated with a discrete choice Good/bad, yes/no Variable data n Product characteristic that can be measured Length, size, weight, height, time, velocity Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 75

Development of Control Chart n n n Based on in-control data If random causes present discard data Correct control chart limits q q q Scale [brackets] USL & LSL Defects or variance Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 76

Check Sheets n A Process is in Control if: q q n No sample points outside limits Most points near process average About equal number of points above & below centerline Points appear randomly distributed Remember: q q q Ensures that data is collected carefully and accurately Creativity is important in designing of Check sheet … Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 77

Tools to Measure Quality n n n Check Sheets Scatter Diagram Cause & Effect Diagram Pareto Chart Flow Charts Histograms Process Flow Diagram Population and Sample n Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 78

Cause and effect Diagram n Also called q q n n Ishikawa diagram after Dr. Kaoru Ishikawa Fishbone diagram (because of its shape) C & E are used to find out either the bad effect or good effect Team participation Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 79

C&E Diagram: Construction People Material Work Methods Quality Environment Equipment Govt. Reg. Causes Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute Effects 80

C&E Diagram: House Paint Peeling Material Work Method House Paint Peeling bad bristles brush Air pollution Temperature dirty humidity Acid Rain Equipment Environment Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 81

C&E Diagram: Procedure n n n Identify the Effect or Quality Problem Place it on the right side of a piece of paper Identify the major causes q q q Participation by every member Quantity of ideas rather than quality of ideas Criticism of idea not allowed Create a solution oriented atmosphere Let the ideas incubate for a period of time Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 82

Pareto Diagram: Procedure n n n Determine the method of classifying the data by problem, cause, non-conformity etc. Decide if Rupees, Frequency or both are to be used to rank the characteristics Collect data for appropriate time interval or use historical data Summarize the data and rank order categories from largest to smallest Construct the diagram and construct the vital few Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 83

Pareto Diagram n n n First used for economic theory by Alfredo Pareto “Vital few” and “useful many” Examples q q q Few customers account for majority of sale Few suppliers account for majority of rejected parts Few items account for majority of inventory cost Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 84

Pareto Diagram: Constructing 53% Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute Painting Packing Molding Packing Painting Welding 6 % 21% Welding 14% Nonconformity Rupees 31% Molding Nonconformity Frequency 49% 85

Process Flow Diagram n n Shows flow of product or service as it moves through various processes It becomes easy to visualize the entire system Identifies potential trouble spots Measure of Dispersion q Range n q n R= X (highest) - X (lowest) Standard Deviation Measure of Central Tendency q Average q Mean q Median q Mode Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 86

PFD – Order Entry Activity Hold Telephone Fax Log In Credit Check Inventory Schedule Production Contract Review Letter Production exec Notify Customer -delivery date Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 87

Defining Quality Quantifying… n “Degree to which a set of inherent characteristics fulfills requirements” n Q = P/E q Where Q is quality q P is Performance q E is Expectations Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 88

Where to apply QA n n Design Process Human Deming’s Philosophy: q “inspection with the aim of finding bad ones and throwing them out is too late, ineffective and costly. Quality comes not from inspection but improvement of the process” Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 89

Quality Eras Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 90

Early 1900’s: Tailorism n n The philosophy of job decomposing which separated the tasks of the craftsman into deskilled isolated operations The links between Customer/ Design/ Manufacture/ Inspection were broken inspection craftsman product inspection product Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 91

History (cont. . ) n 1920’s: Bell Telephone Labs q q q n n A group was formed to develop new theories and methods of inspection to improve and maintain quality This is where the term Quality Assurance was first used Developed n Control Charts n Sampling Techniques n Economics of Quality 1930’s: First book on Quality Control - time WW-2: US military adopts a system of statistical sampling and the imposition of strict standards to be met by suppliers. Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 92

History (cont. . ) n 1950’s: Deming and Juran’s introduction to Japan of Statistical Quality Control Techniques n juran. com/drjuran. html Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 93

History (cont. . ) n Industrial Revolution: q q q applied to the manufacture of rifles for the US Army Made high demands on the manufacturing process Quality Assurance imperative (especially for large buyers) Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 94

History (cont. . ) n n 1960’s and 70’s : Increasing Japanese domination of large sectors of world trade in manufacturing 1972 Institute of Quality Assurance (IQA) established n n Early 90’s: Japan still increasing its domination of manufacturing sectors and services; with one of the fastest growing economies The West in recession and focusing heavily on quality systems Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 95

More Quality Gurus Philip Crosby Quality is free - the optimum is zero defects. W. Edwards Deming’s 14 points. How to use statistics. Armand Feigenbaum Total quality control. Kaoru Ishikawa Quality circles and cause and effect diagrams. Joseph Juran Quality as fitness for use, rather than conformance to specification. Genichi Taguchi Loss function. Minimize variation. Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 96

Problem Solving… Different Approaches… n Juran’s Trilogy q q q n n Planning Control Improvement PDSA (Shewhart’s and Deming) Kaizen (Japanese approach) Reengineering Six Sigma Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 97

Juran’s Trilogy n Plan q q n Control q q q n Identify customers (internal/external) Discover the Needs Develop Product/Service features Develop Process able to produce product/service features Determine what to be controlled and their unit of measure Set goals for the control Measure actual performance Compare actual performance to goals Act on difference Improvement q q q Attain levels of performance that are higher than current levels Establish Quality Council Adopt Problem Solving Methods Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 98

PDCA / PDSA Identify the opportunity Analyze the Process Plan for future Standardize The solution Study the results Act Plan Study Do Develop the Optimal Solution Implement Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 99

PDCA / PDSA n Identify the Opportunities q q q n Identify the problems Prioritize the Problems Form a team Define the Scope (sphere of problem observed) Give clear authority, objective, scope, composition and direction and control to the team Analyze the Current Process q q q Establish Process Flow Diagram Define Target Performance Measures Analyze the available data If needed, change data collection tools/techniques Determine root cause, using different techniques Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 100

PDCA / PDSA n Develop the Optimal Solution q q Creativity and Brainstorming needed One of the following may be adopted n n Creating new process Combine different processes Modify the existing process Implement Changes q Preparing the implementation plan n q Obtain Approval n n q 5 Ws and How From the Quality Council From the departments where change will be implemented Implementing the Process Improvements Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 101

PDCA / PDSA n Study the Results q q q Monitor the change Evaluate the Change Study the effectiveness of the improvement Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 102

Kaizen n n Kaizen Check List… 5 S… n n n Seiri Seiton Seiso Shiketsu Shitsuke : Proper Arrangement : Put things in order : Clean up : Personal Cleanliness : Discipline n n n Kaizen involves: n n n People Processes Products Kai: “change” Zen: “good” n n n Personnel Work techniques Work Methods Procedures Time Facilities Equipment Tools Material Plant layout Paradigms (mind sets) Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 103

Quality Today n What is Quality Dimensions& Obstacles Cost of Quality ISO and other Models Total Quality Management n Six Sigma n n Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 104

The Pursuit of QUALITY is a JOURNEY not a DESTINATION! Quality Improvement Where are you; on your STARTING blocks? QUALITY starts here and NOW! Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 105

Six-Sigma – What is it? n n n Six Sigma is a business management strategy, originally developed by Motorola, that today enjoys wide-spread products in diversified sectors of industry. Six Sigma seeks to identify and remove the causes of defects and errors in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts" etc. ) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase) Innovation Algorithm DMAIC (Define-Measure-Analyze-Improve-Control) Design for Six Sigma Algorithm DMADV (Define-Measure-Analyze-Design-Verify) (DFFS) Makes Integrative Use of: Various strategies and tools from Statistics, QMS, Business, Engineering etc Quality Today (TQM) - Kamran Khan – Chrome. IS. com/institute 106