Quality management

1
Quality management
Slovak University of Technology Faculty of
Material Science and Technology in Trnava

2
Definition of Quality

• What is the quality ?
• Quality is conformance to requirements
• Other definitions
• Quality is fitness for use
• Quality is meeting customer expectations

3
Explames of Quality Charakteristic

• Product
• Service

4
Explames of Quality Charakteristic

• Product
• Performance
• Reasonable price
• Durability
• Available
• Serviceability
• Ease of use
• Simplicty of deign

5
Explames of Quality Charakteristic

• Product
• Safe
• Reliable
• Maintainable
• Aesthetics
• Ease of disposal

6
Explames of Quality Charakteristic

• Service
• Responsiveness
• Reliable
• Comppetene
• Accuracy
• Courtesy
• Ceredibility
• Security
• Understanding the costumer

7
Explames of Quality Charakteristic

• Service
• Completeness
• Communication
• Available
• Safe access
• Timeliness

8
Definition

• Quality
• Is a characteristic of a product (good or
  service). It may be measured directly as
  compliance to some standard or indirectly by
  customer appreciation or impact.

9
Definition of Quality

• ISO 90012000 defined quality than

10
Definition

• Quality management
• Is a method for ensuring that all the activities
  necessary to design, develop and implementing a
  product or service are effective and efficient
  with respect to the system and its perfarmance

11
Definition

• Quality management system (QMS)
• A set og policies, processes and procedures
  required for planning and execution
  (product/development/service) in then core
  business area of an Organisation.

12
Definition

• Total quality management (TQM)
• A customer focused management philosophy that
  seeks to continuously improve business processes
  using analytical tools and teamwork involving all
  employees. There are several TQm models, the
  EFQM, the Malcolm Baldridge, ISO 9000 being the
  most commonly used

13
The quality philosophies (gurus)

• What is a quality guru?
• Is a good person, a wise person and a teacher.
• The gurus mentioned in this section have done,
  and continue to do, that in some cases, even
  after their death

14
The quality philosophies (gurus)

• There have been three gruops gurus since the
  1940s
• Early 1950s American who took the mesage of
  quality to Japan
• Late 1950s Japanese who developed new concepts
  in response to the Amwericans
• 1970s 1980s Western gurus who followed the
  Japanese industrial success

15
The quality philosophies (gurus)

• The Americans who went to Japan
• W.Edwards Deming
• Joseph M. Juran
• Philip B. Crosby

16
The Americans guru

• W.E.Deming
• 14 points for transformation of Western
  management
• PDCA cycle
• Deployment the Strategy of quality

17
Deming

• 14 point plan for Western management
• Constatncy of purpose
• The new philosophy
• Cease mass inspection
• End lowest price purchasing
• Constantly improve systems
• Train everyone
• Institute leadership

18
Deming

• 14 point plan for Western management
• Drive out fear
• Break down barriers
• Eliminate exportations
• Eliminate targets
• Permit pride of workmanship
• Encourage education
• Top managements commitment

19
The Americans guru

• J.M. Juran
• Two different of quality
• The Juran Trilogy Three basic managerial
  processes quality planning, quality control and
  quality improvement
• Three levels of quality management
• The Jurans spirals

20
J.M.Juran

• 7 steps program
• Establish quality policies and quides
• Establish quality goals
• Design quality plans to reach those goals
• Assign responsibility for the plans
• Provide necessary resources
• Rewiev progress against goals
• Evaluate manager performance vs.goals

21
Joseph M. Juran

• he pursued a varied career as an engineer,
  executive, government administrator, university
  professor, labor arbitrator, corporate director,
  and consultant.
• Specializing in managing for quality, he is the
  editor of Jurans Quality Handbook.
• Juran defines quality as consisting of two
  different, bud related concepts

22
Joseph M. Juran

• One from of quality is income oriented and
  consists of those features of the product that
  meet costumer needs and thereby produce income.
• A second from of quality is cost oriented and
  consist of freedom from failures and deficiencies.

23
Joseph M. Juran

• Jurans quality planning road map consists of the
  following steps
• determinate quality goals
• Identify costumers
• Discover costumers needs

24
Joseph M. Juran

• Translate from costumer language to products
  having desired features
• Develop processes able to produce the product
• Transfer the process, with appropriate controls,
  to operations

25
Joseph M. Juran

• Control takes place at all levels, from the CEO
  down to the workers, and all use the same
  feedback loop, witch is the following
• Measure performance
• Compare performance to the goal
• - Take action if there is a gap

26
Joseph M. Juran

• Juran presented a structured approach for
  improvement in his book Managerial Breakthrough
  and included a list of responsibilities that
  upper managers should not delegate
• Create awareness of the need and opportunity for
  improvement
• Make quality improvement a part of every job
  description

27
Joseph M. Juran

• Create an infrastructure a quality council who
  selects projects for improvement and established
  teams
• Provide training in quality improvement methods
• Regularly review improvement progress

28
Joseph M. Juran

• Give recognition to improvement teams
• Use the results to spread the word on the power
  of the efforts
• Revise the reward system to enforce the rate of
  improvement
• Maintain momentum by enlarging the business plan
  to include goals for quality improvement

29
Joseph M. Juran

• Juran also defines three levels of quality
  management
• Strategic quality management
• Operational quality management
• The workforce

30
Joseph M. Juran

• Juran defines TQM as a collection of certain
  quality-related activities
• Quality becomes a part of each upper management
  agenda
• Quality goals enter the business plan
• Stretch goals are derived from benchmarking
  focus is on the costumer and on meeting
  competition, and there are goals for annual
  quality improvement
• Goals are deployed to the action levels

31
Joseph M. Juran

• Training is done at all levels
• Measurement is established throughout
• Upper managers regularly review progress against
  goals
• Recognition is given for superior performance
• The reward system is revised

32
The Americans guru

• P.B.Crosby
• Defines absolutes of quality management
• 14 points improvement quality management
• Zero defect

33
Crosby

• 5 absolutes of quality
• Quality means conformance, not goodness or
  elegance
• There is no such thing as a quality problem
• It is always cheaper to do the job right the
  first time
• Cost od quality is the only measure of
  performance
• Zero defect is the only perfomance standart

34
Crosby

• 14 step process
• Management commitment
• Quality improvement team
• Quality measurement
• Cost of quality
• Quality awareness
• Corrective action
• Zero defects

35
Crosby

• 14 step process
• Training
• Zero defects day
• Goals setting
• Error cause removal
• Recognition
• Quality councils
• Do it over again

36
The Japanese guru

• Kaoru Ischikawa
• Autored the Guide to Quality Control
• The autor the Ishikawa diagram and the assembly
  and use of the seven basic tools of quality

37
Kaoru Ishikawa

• He was an early student of Deming and a member of
  the Union of Japanese Scientists and Engineers.
  He authored
• Guide to quality control to help training of
  foremen and middle managers in Japan of the
  operation of quality circles.

38
Quality standards

• History of ISO 9000
• 1987 version
• 1994 version
• 2000 version

39
Quality standards

• Industry specific interpretations
• AS 9000 Aerospace Basic Quality System
  standards
• PS 9000 Pharmaceutical Packaging Materials
• QS 9000 American automotive manufacturers (GM,
  Ford, Chrysler)
• ISO /TS 169492002 American and European
  automotive manufacturers

40
Quality standards

• Industry specific interpretations
• TL 9000 is the Telecom Quality management and
  Measurement System Standard
• ISO 13 4852003 medical industrys equivalent of
  ISO 90012000

41
ISO series 9000 1987 version

• The three models for quality management systems
• ISO 90011987 Model for quality assurance in
  design, development, production, installation,
  and servicing
• ISO 90021987 Model for quality assurance in
  production, installation and servicing
• ISO 90031987 Model quality assurance in final
  inspection and test

42
ISO series 9000 1994 version

• ISO 900094
• emphasized quality assurance via preventative
  actions, instead of just checking final product,
  and continued to require evidence of compliate
  with documented procesures.

43
ISO series 9000 2000 version

• ISO 90012000 combines the three standards ISO
  9001, ISO 9002, ISO 9003
• Now called ISO 90012000
• The 2000 version
• sought to make a radical change in thinking by
  actually placing the oncept of process management
  front and centre
• Is to improve effectiveness via process
  perfoermance metrics numerical measurement of
  the efectiveness of tasks and acitvities

44
Standards ISO series 90002000

• Assist an organization in developing,
  implementing, registering, and sustaining a
  appropriate QMS function independent of the
  specific product and /or services

45
Standards ISO series 90002000

• Includes eight principles that when followed
  should improve organizational performance

46
Standards ISO series 90002000

• 8 principles QMS
• Customer focus
• Leadreship
• Involvement of People
• Continual Improvement
• Process Approach
• Systems Approach
• Factual Deision Making
• Mutually Beneficial Supplier Relationships

47
8 principles QMS

• Principle 1 Customer focus
• Organizations depend on their customers and
  therefore should understand current and future
  customer needs, should meet customer requirements
  and strive to exceed customer expectations.

48
8 principles QMS

• Principle 1 Customer focus
• Key benefits
• Increased revenue and market share obtained
  through flexible and fast responses to market
  opportunities.
• Increased effectiveness in the use of the
  organization's resources to enhance customer
  satisfaction.
• Improved customer loyalty leading to repeat
  business.

49
8 principles QMS

• Principle 1 Customer focus
• Applying the principle of customer focus
  typically leads to
• Researching and understanding customer needs and
  expectations.
• Ensuring that the objectives of the organization
  are linked to customer needs and expectations.

50
8 principles QMS

• Communicating customer needs and expectations
  throughout the organization.
• Measuring customer satisfaction and acting on the
  results.
• Systematically managing customer relationships.
• Ensuring a balanced approach between satisfying
  customers and other interested parties (such as
  owners, employees, suppliers, financiers, local
  communities and society as a whole).

51
8 principles QMS

• Principle 2 Leadership
• Leaders establish unity of purpose and direction
  of the organization. They should create and
  maintain the internal environment in which people
  can become fully involved in achieving the
  organization's objectives.
• Key benefits
• People will understand and be motivated towards
  the organization's goals and objectives.
• Activities are evaluated, aligned and implemented
  in a unified way.
• Miscommunication between levels of an
  organization will be minimized.

52
8 principles QMS

• Principle 2 Leadership
• Key benefits
• People will understand and be motivated towards
  the organization's goals and objectives.
• Activities are evaluated, aligned and implemented
  in a unified way.
• Miscommunication between levels of an
  organization will be minimized.

53
8 principles QMS

• Applying the principle of leadership typically
  leads to
• Considering the needs of all interested parties
  including customers, owners, employees,
  suppliers, financiers, local communities and
  society as a whole.
• Establishing a clear vision of the organization's
  future.
• Setting challenging goals and targets.

54
8 principles QMS

• Creating and sustaining shared values, fairness
  and ethical role models at all levels of the
  organization.
• Establishing trust and eliminating fear.
• Providing people with the required resources,
  training and freedom to act with responsibility
  and accountability.
• Inspiring, encouraging and recognizing people's
  contributions.

55
8 principles QMS

• Creating and sustaining shared values, fairness
  and ethical role models at all levels of the
  organization.
• Establishing trust and eliminating fear.
• Providing people with the required resources,
  training and freedom to act with responsibility
  and accountability.
• Inspiring, encouraging and recognizing people's
  contributions.

56
8 principles QMS

• Principle 3 Involvement of people
• People at all levels are the essence of an
  organization and their full involvement enables
  their abilities to be used for the organization's
  benefit.

57
8 principles QMS

• Key benefits
• Motivated, committed and involved people within
  the organization.
• Innovation and creativity in furthering the
  organization's objectives.
• People being accountable for their own
  performance.
• People eager to participate in and contribute to
  continual improvement.

58
8 principles QMS

• Applying the principle of involvement of people
  typically leads to
• People understanding the importance of their
  contribution and role in the organization.
• People identifying constraints to their
  performance.
• People accepting ownership of problems and their
  responsibility for solving them.

59
8 principles QMS

• People evaluating their performance against their
  personal goals and objectives.
• People actively seeking opportunities to enhance
  their competence, knowledge and experience.
• People freely sharing knowledge and experience.
• People openly discussing problems and issues.

60
8 principles QMS

• Principle 4 Process approach
• A desired result is achieved more efficiently
  when activities and related resources are managed
  as a process.
• Key benefits
• Lower costs and shorter cycle times through
  effective use of resources.
• Improved, consistent and predictable results.
• Focused and prioritized improvement
  opportunities.

61
8 principles QMS

• Key benefits
• Lower costs and shorter cycle times through
  effective use of resources.
• Improved, consistent and predictable results.
• Focused and prioritized improvement
  opportunities.

62
8 principles QMS

• Applying the principle of process approach
  typically leads to
• Systematically defining the activities necessary
  to obtain a desired result.
• Establishing clear responsibility and
  accountability for managing key activities.
• Analysing and measuring of the capability of key
  activities.

63
8 principles QMS

• Identifying the interfaces of key activities
  within and between the functions of the
  organization.
• Focusing on the factors such as resources,
  methods, and materials that will improve key
  activities of the organization.
• Evaluating risks, consequences and impacts of
  activities on customers, suppliers and other
  interested parties.

64
8 principles QMS

• Principle 5 System approach to management
• Identifying, understanding and managing
  interrelated processes as a system contributes to
  the organization's effectiveness and efficiency
  in achieving its objectives.

65
8 principles QMS

• Key benefits
• Integration and alignment of the processes that
  will best achieve the desired results.
• Ability to focus effort on the key processes.
• Providing confidence to interested parties as to
  the consistency, effectiveness and efficiency of
  the organization.

66
8 principles QMS

• Applying the principle of system approach to
  management typically leads to
• Structuring a system to achieve the
  organization's objectives in the most effective
  and efficient way.
• Understanding the interdependencies between the
  processes of the system.
• Structured approaches that harmonize and
  integrate processes.

67
8 principles QMS

• Providing a better understanding of the roles and
  responsibilities necessary for achieving common
  objectives and thereby reducing cross-functional
  barriers.
• Understanding organizational capabilities and
  establishing resource constraints prior to
  action.
• Targeting and defining how specific activities
  within a system should operate.
• Continually improving the system through
  measurement and evaluation.

68
8 principles QMS

• Principle 6 Continual improvement
• Continual improvement of the organization's
  overall performance should be a permanent
  objective of the organization.

69
8 principles QMS

• Key benefits
• Performance advantage through improved
  organizational capabilities.
• Alignment of improvement activities at all levels
  to an organization's strategic intent.
• Flexibility to react quickly to opportunities.

70
8 principles QMS

• Applying the principle of continual improvement
  typically leads to
• Employing a consistent organization-wide approach
  to continual improvement of the organization's
  performance.
• Providing people with training in the methods and
  tools of continual improvement.

71
8 principles QMS

• Making continual improvement of products,
  processes and systems an objective for every
  individual in the organization.
• Establishing goals to guide, and measures to
  track, continual improvement.
• Recognizing and acknowledging improvements.

72
8 principles QMS

• Principle 7 Factual approach to decision making
• Effective decisions are based on the analysis of
  data and information

73
8 principles QMS

• Key benefits
• Informed decisions.
• An increased ability to demonstrate the
  effectiveness of past decisions through reference
  to factual records.
• Increased ability to review, challenge and change
  opinions and decisions.

74
8 principles QMS

• Applying the principle of factual approach to
  decision making typically leads to
• Ensuring that data and information are
  sufficiently accurate and reliable.
• Making data accessible to those who need it.
• Analysing data and information using valid
  methods.
• Making decisions and taking action based on
  factual analysis, balanced with experience and
  intuition.

75
8 principles QMS

• Principle 8 Mutually beneficial supplier
  relationships
• An organization and its suppliers are
  interdependent and a mutually beneficial
  relationship enhances the ability of both to
  create value

76
8 principles QMS

• Key benefits
• Increased ability to create value for both
  parties.
• Flexibility and speed of joint responses to
  changing market or customer needs and
  expectations.
• Optimization of costs and resources.

77
8 principles QMS

• Applying the principles of mutually beneficial
  supplier relationships typically leads to
• Establishing relationships that balance
  short-term gains with long-term considerations.
• Pooling of expertise and resources with partners.
  
• Identifying and selecting key suppliers.

78
8 principles QMS

• Clear and open communication.
• Sharing information and future plans.
• Establishing joint development and improvement
  activities.
• Inspiring, encouraging and recognizing
  improvements and achievements by suppliers.

79
Standards ISO series 90002000

• The basic ISO 90002000 series consists of three
  documents. They are
• ISO 90002000 QMS. Fundamentals and
  vocabulary
• ISO 90012000 QMS. Requirements
• ISO 9004200 QMS. Guidelines for performance
  improvements.

80
ISO 90012000

• QMS adresses
• Identifying and sequencing processes
• Monitoring, measuring and analysing processes
• Documenting the QMS quality manual, procedures,
  instructions, records
• Controlling documents and records

81
ISO 90012000

• Management responsibility addresses
• Top management evidecne of comitment to the QMS
  comunicating, quality policy, quality objectives,
  management reviews, availability of resources
• Top management support of customers focus
• Quality planning
• Responsibility of management representative

82
ISO 90012000

• Resource management addresses
• Providing resources
• Ensuring competence, awareness, and training of
  human resources
• Providing suitable infrastructure and work
  environment

83
ISO 90012000

• Processes for producing products and services
  (product realization) addresses
• Planning for product realization
• Requirements for customer related processes
• Requirements for designing and developing product
  
• Purcharing processes
• Controlling production and services
• Controlling device used for monitoring and
  measuring

84
ISO 90012000

• Processes for measurement, analysis and
  improvement addresses
• Monitoring and measuring relative to satisfaction
  of customer, auditing of QMS, and monitoring,
  measuring and controlling product
• Analysing data
• Continually improving (corrective and preventive
  action)

85
ISO 90012000

• When using ISO 90012000 as a systems model,
  remebmer the following things
• 8 quality management principles
• Recognize that customer requirements
• The information from the customer
• The organisation have resources available for
  required activities, products processes are
  identified and documented

86
ISO 90012000

• When using ISO 90012000 as a systems model,
  remebmer the following things
• Information from production output activities and
  feedback from customers provide indicators
• Results from the management reviews are
  integrated int the management of resources,
  product activities

87
ISO 90012000

• The benefits from implementation and
  certification of an ISO 9001 QMS
• Reduction in waste, rework and redundancy
• Reduction in potential for external failures
• Cost reductions
• Increased productivity

88
ISO 90012000

• The benefits from implementation and
  certification of an ISO 9001 QMS
• Improved performance
• More orderly method of doing business
• Improvement customer satisfaction ordered
  audits
• Marketing edge over suppliers that do not have a
  certified QMS

89
ISO 90012000

• Some of the comments and criticismus of the ISO
  90012000
• There is a tendency to overdo the quantity and
  complexity level of procedures
• The standards makes no assurances about a
  companys products
• Confusion often exists as to what should be
  includes in the quality manual

90
ISO 90012000

• Some of the comments and criticismus of the ISO
  90012000
• Understanding the difference between objective
  evidence and records is confusing
• Failing to realize that product realization
  processes are different than quality QMS
  processes
• Lack of understanding as to the difference
  between monitoring and measuring

91
ISO 90012000

• Documenting the QMS
• Document information and its supporting medium
• Manual of quality document describing the system
  of managing the organization
• Plan of quality document specifying what methods
  and related sources have to be used, who has to
  use them in a specified project, product in the
  process or in the agreement
• Record document describing achieved results,
  providing the proof of performed actions

92
Documenting the QMS

• The QMS can be different from organization to
  organization by the following
• Size of organization and type of activity
• Difficulty of processes and their interactions
• Workers comptency and qualification

93
Documenting the QMS

• Pyramids of quality
• Level A policy and objectives of quality,
• Quality manual
• Level B Quidelines documented of processes
  and activities QMS
• Level C instructions and other documents of
  the QMS quality plan, records, forms

94
Documenting the QMS

• Purpose and benefit of documenting QMS
• Describe the QMS of organization
• Provides information to the groups with shared
  assignments
• It arrenges to the employees the commitment of
  quality management

95
Documenting the QMS

• Purpose and benefit of documenting QMS
• It helps employees to understand their position
  withing the framework of organization
• Provides understanding between employees and
  management
• It sets objectives to achieve given requirements

96
Documenting the QMS

• Purpose and benefit of documenting QMS
• It says how to do things achieve given
  requirements
• It sets clear and effective frame of activity
• It provides stability of operation based on the
  documented processes

97
Documenting the QMS

• Purpose and benefit of documenting QMS
• It demostrates its possibilities to interested
  partied
• It provides tha basic to audit the QMS
• It provides tha basis to evaluate the effect and
  convenience of the QMS

98
Process management

• ISO 9001model promoted the adoption of the
  process approach when developing, maintaining,
  and improving activities and services.
• Proces defined as
• Any activity that transforms inputs into outputs.

99
Process management

• PM is using
• a collection of practices
• Techniques and tools to implementing
• Sustain and improve process effectiveness

100
Process management

• PM includes
• Planning and setting goals,
• Establishing controls
• Monitoring and measuring performance
• Documenting,
• Improvining cycle time, continually improving

101
Process management

• Process goals (PG) and objectives (PO)
• PG are aims, intents, targets or ends
• PG linked to the strategic plan of the
  organization

102
Process management

• PO represent the intende actions that are needed
  to achieve the process goals
• PO may be supported by product or service
  specifications, work orders and so on
• PO may also be based on maintaining the gains in
  a stable process or the objectives may support
  the resoution of a previous performance problem
  or deficiency

103
Process management

• Process objectives are monitored, measured, and
  reported for decisions as to actions needed.
• Guidelines includes
• It must be know what value is desired, what to
  measure, how to measure it, unit of measure,
  device/method to be udes
• How objectives are monitored is a function of who
  does itm how often it is to be done

104
Process management

• Process analysis
• Design a new process or change to a process
• To prepare for an audit of a process or system
• As part of the building project plans for a new
  facility
• To aid in planning a preventive action

105
Process management

• Process analysis
• As a diagnostic technique for locating possible
  problem areas
• As a tool for identifying non value added steps
• As a technique for comparing before and after
  changes to a process
• As a technique for helping quality improvement
  teams to understand a process

106
Process management

• Process maping/flowcharting used
• To comunicate and create understanding of a
  process flow
• To identify non value added steps for potential
  elimination or modifiction
• To serve as a procedure on how to perform a task
  or job

107
Process management

• Process maping/flowcharting used
• To serve as a part of the istructional material
  aused training a new performer
• To envision the flow of a new or redesigned
  process
• To serve as a simulator tool for a hypothecal
  walk through of a process

108
Process management

• What to look for in the Process map
• Branching steps exceed the number of steps in the
  main flow
• Checking steps are missing or excessive
• Steps take the process flow back and forth
  between different work units
• Important steps are missing
• There are steps that add no value to the end
  product or service

109
Process management

• There are redundant steps
• Steps may need to be decomposed into several
  steps
• There are dead ends
• There are disconnects
• Flow is too difficult to understand, confuses
  performens

110
Quality improvement

• Quality improvement action taken to improve a
  product, process or system that is not associated
  with nonconformity.
• It requires a defined process for continual
  improvement and reduction in manufcturing
  variation.

111
Quality improvement

• Defined processes may include
• Kaizen
• Six sigma
• PDCA Cycle
• Statistical process control

112
KAIZEN

• Is a Japanese word
• Kai means change or school
• Zen means good or wisdom
• It has come to mean a continual and incremental
  improvement (as opposed to reengineering)

113
KAIZEN

• In a kaizen event a cross-functional team
  focuses
• on a target process,
• studies it,
• collects and analyzes data,
• discusses improvement alternatives,
• and implements changes
• The intense event may consume three to five
  consutive days.

114
SIX SIGMA

• A process improvement initiative that uses a
  variety of techniquies and tools all focused on
  producing defect-free products and services.
• Statisticaly speaking sigma is a term
  indicating, to what extent a process varies from
  perfection

115
SIX SIGMA

• The quantity of units processed divided into the
  number of defects actually occuring, multiplied
  by one milion results in defects per milion.
  Adding a 1,5 sigma shift in the mean results in
  the following defects per milion

116
SIX SIGMA

• Six sigma , as a philosophy, translates to the
  organizational belief that it is posible to
  produce totally defect free product or services
  albeit more a dream than a reality for most
  organisations.

117
PDCA Cycles

• The problem solving model presented a general
  proces improvement model the plan do - check
  act (PDCA) cycle.
• P - Plan study the situation
• - determine what needs to be done
• - develop a plan and measurement
• process for what needs to be done

118
PDCA Cycles

• D Do implement the plan
• C Check - determine whether the plan worked
• - study the results
• A Act - if it worked, instiutionalize/
  standartize
• the change
• - if it didnt, try somthing else
• - continue the cycle

119
STATISTICAL PROCESS CONTROL (SPC)

• Simply comparing the results of a process to
  itself over time is not sufficient i an
  environmental where external competitive
  pressures and an internal desire for continual
  improvement exist.
• The focus of this section is on how to
  effectively analyze information to enable the
  organization to manage and improve processes
  whether at the strategic or operational level.

120
STATISTICAL PROCESS CONTROL (SPC)

• Types of Control Charts
• A control charts id used to determine whther or
  not a process is stable, which means that it has
  predictable performance. By monitoring the output
  of a process over time, a control chart can be
  udes to assess whether the application of process
  changes or other adjustments have resultes in
  improvements

121
STATISTICAL PROCESS CONTROL (SPC)

• Types of Control Charts
• Individuals and moving range (X/MR), used when
  the sample size is one
• Average and range or average and standard
  deviation (x-bar/R or x- bar/s) used when the
  sanple size is a rational subgroup
• Exponentially weigted moving average (EWMA), used
  for smoothing out short term variance in order to
  detect longer term trends

122
STATISTICAL PROCESS CONTROL (SPC)

• Cumulative sum (CUSUM), used to detect very small
  changes that occur over time
• Hotellings t-squared, used to analyze multiple
  variables on one chart
• Attribute type control charts include
• np charts, used to chart number of defective
  units where sample size is constans

123
STATISTICAL PROCESS CONTROL (SPC)

• p charts, used for tracking fraction of units
  defective, where sample size is not constant
• c charts, used to chart number of defects in a
  constant sample size
• u charts, for number of defects where sample size
  is changing

124
Quality methods and tools for improve

• Quality tools a techniques
• 7 classic quality tools
• 7 new quality tools

125
7 classical quality tools

• Flowchart
• Check list
• Cause and Effect Diagram (Ishikawa diagram)
• Pareto Chart
• Control Charts
• Histogram
• Scatter Diagrams

126
The quality costs

• Is a method used by organization to show the
  financial impact of quality activities.
• These costs must be true measure of the quality
  effort. Such an analysis provides
• A method of assessing the effectiveness of the
  management of quality
• A means of determining problem areas,
  opprtunities, savings and action priorites

127
The quality costs

• Prevention costs
• Product or service requirements setting
  specification or incoming materials, proesse,
  finished products/services
• Quality planning creation of plans for quality,
  reliability, operational, production, inspection
• Quality assurance creation and maintenance of
  the QMS
• Training deelopment, preparation and
  maintenance of programmes

128
The quality costs

• Appraisal costs are associated with the suppliers
  and customers evaluation of purchased materials,
  processes, products ad services to ensure they
  conform to speifications. They could include
• Verification checking of incoming material,
  process set-up, products againts agreed
  specifications
• Quality audits check that the QMS is
  functioning correctly
• Vendor rating assessment and approval of
  suppiers, for products and services

129
The quality costs

• Failure costs can be split into those resulting
  form
• Internal failure costs
• External failure costs
• Total cost of quality

130
The quality costs

• PAF model (Process Cost Model)
• COQ (cost of quality)
• COC (cost of conformance)
• CONC (cost of non conformance)
• COQ COC CONC

131
Total Quality Management (TQM)

• Definitions
• Total Everyone should be involved
• Quality customers should be provided with an
  uniform quality product that meets their
  expectations
• Management the way Total Quality is conducted

132
TQM definitions

• Is the set of management processes and systems
  that create delighted customers through empowered
  employees, leading to hogher revenue and lower
  cost.
• The
  Juran Institute, Inc.

133
TQM - principles

• Commitment of everybody in the organization
• The companys success depends on the participation
  of everybody
• Opportunities for complete participation by
  everybody
• Opportunities to do their job propertly

134
TQM pre-requisites

• Leadership from the top
• Effective management of the cost of quality
• Focus on customer satisfaction
• Continuous improvement of everyone in quality
  improvement

135
TQM

• Leaders
• W.E.Deming
• J.M.Juran
• K. Ishikawa
• A.V. Feigenbaum
• P.B. Crosby

136
TQM - Feigenbaum

• 10 benchmarks of Quality
• Q is a company wide process
• Q is what the customer says it is
• Q and cost are sum not a difference
• Requires individual and teamwork
• Q is a way of managing

137
TQM - Feingenbaum

• 10 bechmarks of Quality
• Q and innovation are mutually dependent
• Q is an ethic
• Requires continuous improvement
• Is the most cost effective, least capital
  intensive route to productuvity
• Is implemented with a tot system connected with
  customers and suppliers

138
Quality Plans

• A quality plan is a document, or documents, that
  specify quality standards, practices, resources,
  specifications, and the sequence of activities
  relevant to a particular product, service,
  project, or contract.

139
Quality Plans

• Quality plans shoul define
• Objectives to be attained
• Steps in the processes that constitute the
  operating practice or procedures of the
  organization

140
Quality Plans

• Allocation of responsibilities, authority, and
  resources during the different phases of the
  process or project
• Specific documented standards, practices,
  procedures, and instuctions to be applied

141
Quality Plans

• Suitable testing, inspection, examination, and
  audit programs at appropriate stages
• A documented procedure for changes and
  modifiacations to a quality plan as work proceeds
• A method for measuring the achievement of the
  quality objecitves
• Other actions necessary to meet the objectives

142
Benefits of TQM

• Following are some of the direct and indirect
  benefits that may result form TQM
• Strengthened competitive position
• Adaptability to changing or emerging market
  conditions and to emvironmental and other
  goverment regulations
• Higher productivity
• Enhanced maket image

143
Benefits of TQM

• Elimination of defects and waste
• Reduced costs and better cos management
• Higher profitability
• Improved costumer focus nad satisfaction
• Increased costumer loyalty and retention

144
Benefits of TQM

• Increased job security
• Improved employee morale
• Enhanced shareholder and stakeholder value
• Improved and innovative processes

145
TQM Implementation Approaches

• Following is a generic model for implementing
  TQM
• Top management learns abou and decides to commit
  to TQM

146
TQM Implementation Approaches

• The ornganization assesses current culture,
  customer stisfacton, and quality management
  system
• Top management identifies core values and
  principles to be used, and communicates them

147
TQM Implementation Approaches

• A TQM master plan is developed on the basis of
  steps 1,2 and3
• The organization identifies nad prioritizes
  costumer demands and aligns products and services
  to meet those demands
• Management maps the critical processes through
  which the organization meets its costumer needs

148
TQM Implementation Approaches

• Management oversees the formation of teams for
  process improvement efforts
• The momentum of the TQM effort is managed by
  steering committee
• Managers contribute individually to the effort
  through hoshin planning, training, coaching or
  other methods

149
TQM Implementation Approaches

• Daily process management and standardization take
  place
• Progress is evaluated and the plan is revised as
  needed
• Constant employee awareness and feedback on
  status are provided and a reward / recognition
  process is estabilished

150
Kaoru Ishikawa

• What Is Total Quality Control? The Japanese Way
  he defines total quality control in the following
  waysgt
• Quality control (QC) is the responsibility of all
  workers and all divisions
• Total quality control (TQC) is a group activity
  and cannot be done by individuals teamwork
• TQC will not ail is all members cooperate, form
  the president down to line workers and sales
  personnel

151
Kaoru Ishikawa

• In TQC, middle management will be frequently
  talked about and criticized be prepared
• QC circle activities are a part of TQC
• Do not confuse objectives with the means to
  attain them
• TQC is not a miracle drug, its properties are
  more like those of Chinese herb medicine

152
Kaoru Ishikawa

• To achieve total quality control, a thought
  revolution must occur
• Quality first not short-term profit first
• Consumer operation not producer operation
• The next process is your costumer break down
  the barrier of sectionalism
• Use facts and data to make presentations utilize
  statistical methods
• Respect for humanity as a management philosophy
  full participatory management
• Cross-function management

153
Kaoru Ishikawa

• Ishikawa advocated four types of audit
• Audit by the president
• Audit by the head of the unique for example,
  division head or branch office manager
• QC audit by the QC staff
• Mutual QC audit

154
The seven classic quality tools

1. Flowchart
2. Check sheet
3. Cause-and-effect diagram
4. Pareto Chart
5. Control Charts
6. Histograms
7. Scatter Diagrams

155
Flowchart

• Is a map of the sequence of steps and decision
  points in a process.
• Flowcharting a process is a good starting point
  for a team, as it helps the group gain a common
  understanding of what is involved in the process.
• Each team member typically has a perspective
  based on his/her own role, but may not have a
  full understanding of the entire process.
• Can also point out missing, redundant, or
  erroneous steps.

156
Flowchart

• An example of a flowchart is shown in Figure

157
Flowchart

• A flowchart may be used to
• Document the as-is condition of a process
• Reflect changes that are to be made to a process
• Design an entirely new process

158
Check Sheet

• Is a tool for gathering information on root
  causes.
• With most of the tool, it facilitates the use of
  facts, rather than just opinions, in talking
  about and solving problems.

159
Check Sheet

• Check sheets are used to gather data on the
  frequency of occurrence of particular events or
  defects.
• Some applications a more visually oriented data
  collection device.

160
Check Sheet

• The check sheet in figure illustrates at a
  glance what the largest problems are in terms of
  frequency of occurrence.

161
Cause-and-Effect Diagram

• Also called an Ishikawa diagram
• Alternatively called fishbone diagram
• Is used to show the many different causes that
  may contribute to a particular problem
• The problem, is started in a box at the right
  side of the chart and likely causes are listed
  around major categories that can lead to the
  effect
• The four Ms are categories of problem sources
  typically used for manufacturing problems

162
Cause-and-Effect Diagram

• For service processes the four Ps are often used.
• Provides a way of organizing what may be a long
  list of potential causes.
• The items for the diagram may be created through
  a brainstorming session or by a review of the
  process flowchart to explore what can go wrong at
  each step
• Is completed, data must be gathered to determine
  which of the causes is most likely to be acting
  on the problem being studied.

163
Cause-and-Effect Diagram

• Figure shows some of the reasons that
  outpatient clients may not be able to locate the
  X-ray department in a hospital

164
Pareto Chart

• Could also be used by a supervisor within each of
  the higher-cost work centers to pinpoint the
  particular machines that are the primary sources
  of trouble.
• Note that although the z-axis of a Pareto chart
  is often the frequency of a problem.
• It is also important to do a similar analysis
  based on costs

165
Control Charts

• Are a refinement of the original run chart
• Serves two vital purposes as a data-gathering
  tool
• It shows when a process is being
• Influenced by special causes, creating an
  out-of-control condition
• It indicates how a process behaves over time
• Should be examined for nonrandom patterns in data
  points
• As analysis of patterns can indicate what source
  of variation is most liklely

166
Pareto Chart and Control Chart

• Pareto chart
• Control chart

167
Histograms

• While control charts allow seeing how a process
  performs over time
• Provides a graphical picture of the frequency
  distribution of the data
• Allows detection of distributions that do not
  demonstrate a typical bell-shaped curve
• Show how the process spread and central tendency
  relate to process specifications

168
Histograms

• A histogram is shown in figure

169
Scatter diagrams

• Shows whether or not there is a correlation
  between two variables
• Correlation does not necessarily mean a direct
  cause and effect relationship
• If it appears that values for one of the
  variables can be predicted based on the value of
  another variable

170
Scatter diagrams

• Shows whether or not there is a correlation
  between two variables.
• Correlation does necessarily mean a direct cause
  and effect relationship
• If it appears thet values for one of the
  variables can be variables can be predicted based
  on the value of another variable, then there is
  correlation

171
Scatter diagrams

• Scatter diagram

172
Statistical Process Control

• The results of a process to itself over tine is
  not sufficient in an environment where external
  competitive pressures
• The focus of this selection is on how to
  effectively analyze information
• The organization to manage and improve processes
  whether at the strategic or operation level

173
Statistical Process Control

• Types of Control Charts
• Control charts is used to determine whether or
  not a process is stabile
• By monitoring the output of a process over time

174
Statistical Process Control

• A control charts can by used to assess whether
  the application of process changes
• If the process produces measurable pats

175
Statistical Process Control

• There are many types of control charts
• Individuals and moving range (X/MR)
• Average and range or average and standard
  deviation (x-bar/R or x-bar/ s)
• Exponentially weighed moving average (EWMA)
• Hotellings t-squared, used analyze multiple
  variables on chart

176
Statistical Process Control

• Hotellings t-squared, used analyze multiple
  variables on chart
• Cumulative sum (CUSUM)

177
Statistical Process Control

• Attribute-type control charts include
• np charts
• p charts
• c charts
• u charts

178
Statistical Process Control

• np charts used to chart number of defective
  units where sample size
• p charts used for tracking fraction of units
  defective, where sample size is not constants
• c charts used to chart number of defects in a
  constant sample size
• u charts for number of defects where sample
  size is changing

179
Statistical Process Control

• Four guidelines are used as a basic test for
  randomness in control charts
• The points should have no visible pattern
• Approximately two-thirds of the points should be
  close to the centerline
• Some points should be close to the outer limit
• An approximately equal number of points should
  fall above and bellow the centerline

180
Statistical Process Control

• Control charts are also based on the concept of
  statistical probability
• Control limits are based on the distribution for
  the type of data being analyzed
• Control chard can be used for both analysis of a
  process
• For process control purposes an alternative to
  control charts, pre-control, can sometimes be
  used

181
Pre-control

• Is an alternative to statistically based control
  charts
• The specification range into four equal zones
• zones
• Green zone good
• Yellow zone caution
• Red zone - defect

182
Pre-control

• Is often used when a process is just being
  started
• The rules for pre-control
• Include both sampling frequency
• With the sample frequency being varied according
  to how well the process

183
Process Improvement Model

1. Select the process to improve
2. review current performance
3. Identify improvement needs or opportunities
4. Implement process changes
5. Evaluate progress

184
Process Improvement Model

1. This is done trough analysis of feedback from
   customers
2. Current performance measures are reviewed to
   ensure that they are adequate
3. Areas of the process where improvement would be
   most beneficial are selected
4. A plan is developed and communicated regarding
   changes in the process steps
5. Process performance is again reviewed to see
   heather the desired impact was achived

185
Process Improvement Model

• Steps for problem are
• Leadership
• Strategic
• Customer
• Involvement
• Process
• Data
• Prevention

186
Process Improvement Model

• Leadership senior executives should oversee the
  process of continual improvement
• Strategic improvements should be targeted
  primarily at those processes that will provide a
  strategic gain
• Costumer process changes should be based on
  and/or take into account costumer feedback
• Involvement because of their knowledge and
  responsibility

187
Process Improvement Model

• Process approach all projects from the view
  that what is to be improved is a process that
  transforms inputs into outputs
• Data decisions such as what processes to
  improve and what to change to make it better
• Prevention because the idea is to create
  processes that are able to meet or exceed
  requirements

188
Documentation hierarchy

• A quality management system documentation
  hierarchy

189
Procedures and Work Instructions

• In documenting procedures are addressed
• Documentation is to conform to a standard
• Documentation appropriately deployed and kept up
  to date
• Documented system being followed by the people
  who produce the work
• Are the required records kept
• Documentation system periodically assessed for
  effectiveness

190
Procedures and Work Instructions

• Variations include
• Outline with bulleted text
• Process map with annotations
• Process map with adjacent outline text
• Photographs depicting different stages in process
  with outline text
• Checklists

191
The EFQM Excellence Model

• Regardless of sector, size, structure or
  maturity, to be successful, organisations need to
  establish an appropriate management framework.
• The EFQM Excellence Model was introduced at the
  beginning of 1992 as the framework for assessing
  organisations for the European Quality Award. It
  is now the most widely used organisational
  framework in Europe and it has become the basis
  for the majority of national and regional Quality
  Awards.

192
The EFQM Excellence Model

• The EFQM Excellence Model is a practical
  tool that can be used in a number of different
  ways
• As a tool for Self-Assessment
• As a way to Benchmark with other organisations
• As a guide to identify areas for Improvement
• As the basis for a common Vocabulary and a way of
  thinking
• As a Structure for the organisation's management
  system

193
The EFQM Excellence Model

• The EFQM Excellence Model is a non-prescriptive
  framework based on 9 criteria
• Five of these are 'Enablers'
• Four are 'Results'.
• The 'Enabler' criteria cover what an
  organisation does.
• The 'Results' criteria cover what an
  organisation achieves.
• 'Results' are caused by 'Enablers' and
  'Enablers' are improved using feedback from
  'Results'.

194
The EFQM Excellence Model

• The Model, which recognises there are many
  approaches to achieving sustainable excellence in
  all aspects of performance, is based on the
  premise that
• Excellent results with respect to Performance,
  Customers, People and Society are achieved
  through Leadership driving Policy and Strategy,
  that is delivered through People, Partnerships
  and Resources, and Processes.

195
The EFQM Excellence Model

• The EFQM Model is presented in diagram form
  below. The arrows emphasise the dynamic nature of
  the Model. They show innovation and learning
  helping to improve enablers that in turn lead to
  improved results.

196
The EFQM Excellence Model
197
The EFQM Excellence Model

• Results orientation
• Excellence is a constant exercise in keeping the
  interest of all stake holders in balance. These
  stake holders are the share holders or
  budgetproviders, people, customers, suppliers,
  partners and the society in general. Only in case
  we have concrete measurable results, we can say
  we did well.

198
The EFQM Excellence Model

• Customer focus
• The customer ( and only the customer) finally
  judges the quality of good