Introduction to Quality Management

1
Introduction to Quality Management

• Yanni Papadakis

2
Outline

• Quality
• Definitions of
• Quality and Production
• History of Quality Management
• Customer Driven v. Market Driven Strategy
• Quality Quotes

3
Quality Definitions

• Examples
• Shoe size 10 /- 1/16in
• Wool COLOR Light Red
• Definition 1 Conformance to Specifications
• Products are within (good) or out of (bad) specs
• Definition 2 Deviation from ideal target
• Some quality costs always occur
• Quality costs can only be reduced, not eliminated
• The more one knows what they are doing the less
  the quality costs

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Production QualityDefinition 1 - Traditional
InputRaw Material
Stage 1
Stage 3
Stage 2
Output Finished Product
PRODUCTION
WithinSpecifications
INSPECTION
Out of SpecificationsREWORKSCRAP
OBJECTIVESeparateAcceptable from Defective Items
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Production QualityDefinition 2 - TQM
InputRaw Material
Stage 1
Stage 3
Stage 2
Output Finished Product
PRODUCTION
OBJECTIVEEliminate Causes of Defects Irreversibl
e Progress
MULTIPLE INSPECTIONSInspect Process not Product
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History of Quality Management

• Quality was always a business priority
• 19th Century Quality necessary for smooth
  commerce
• 20th Century (before 1960s) Inspect Quality
  After Production
• Modern Methods of Production
• Interchangeable parts
• Statistical Sampling Systematic Inspection
• Quality Requires Organization-wide Coordination

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History of Quality Management

• 1980s and after Build Quality in Production
  ProcessIntense Competition from Japanese
  Producers
• Total Quality Management
• ISO 9000
• 6 sigma
• 1990s and after American Companies Catch Up
• Business Process Reengineering
• Market v Customer Driven Strategy
• Quality Costing

8
Quality Gurus

• W. Edwards Deming
• Business Statistics Professor at NYU
• Adviser in sampling techniques to the Supreme
  Command of the Allied Powers, Tokyo, 1947 and
  1950
• Adviser of Many Foreign Governments
• Recognized in USA in the 1980s
• Bad Quality is due to Bad Management
• Minority of Quality Problems due to Bad Execution
• Quality reporting and Organizational Dysfunction
• Do not inspect but build quality in the product

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Quality Gurus

• Joseph M. Juran
• Fitness for use
• Zero Defects
• Philip B. Crosby
• Quality is free
• Zero defects
• Genichi Taguchi
• Robust Process Design

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Quality and Business Strategy

• Customer Driven Strategy
• Anticipate Customer Needs
• Be the best in Servicing Customer
• Quality is the Organizing Principle of Business
• Market Driven Strategy
• Do not offer to customers product attributes that
  are not profitable to offer
• In business to make money not to serve customer
• Anticipate Market Changes
• Not good as Organizing Principle
• This is how the executive board should think
  Quality Management

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Quality Quotessource GNU Fortune Cookies

• Bridging the Gap Between Buyer and Seller

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The Road to Meet The Customer I

• Everyone who comes here wants three things
• 1. They want it quick.
• 2. They want it good.
• 3. They want it cheap.
• I tell 'em to pick two and call me back.
• -- sign on the back wall of a small printing
  company in Delaware

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The Road to Meet The Customer II

• Allen's AxiomWhen all else fails, read the
  instructions.

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Do We Need Quality Management?

• Left to themselves,
• things tend to go from bad to worse

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Quality Attributes Are Interdependent

• Your manuscript is both good and original,
• but the part that is good is not original and the
  
• part that is original is not good.
• -- S. Johnson