Lecture 2: Quality Management

Compiled by Ramdziah Md. Nasir

Evolution of quality
Quality management styles
Quality thinkers
Traditional vs modern quality management
Elements of Total Quality Management

Isolated
Economies
Focus on
quantity

Pre-World War II

Period of
change from
quantity to
quality

1945

Focus on
quality

1990s

History of Quality Paradigms

Customer-craft quality paradigm:

design and build each product for a particular customer.
producer knows the customer directly.
Mass production and inspection quality paradigm:
focus on designing and building products for mass
consumption.
larger volumes will reduce costs and increases profits.
push products on the customer (limit choices).
quality is maintained by inspecting and detecting bad
products.
TQM or Customer Driven Quality paradigm:
potential customers determine what to design and build.
higher quality will be obtained by preventing problems
4

How Do Organizations Compete?

Most common competitive measures:

Other measures

Quality (both real and perceived)

Cost
Delivery (lead time and accuracy)

safety,
employee morale,
product development (time-to-market, innovative
products)

Contrasting Approaches

Passive / Reactive Proactive / Preventive

Setting acceptable Design quality in products

quality levels
Inspecting to
measure
compliance

and processes
Identify sources of variation
(processes and materials)
Monitor process
performance

In 1970s, U.S. companies noticed dramatic loss of market share to

Japanese competitors in many product areas, especially more
noticeable in automotive and electronics industries. The reasons
is, Japanese products were superior in quality and lower in price.
Japanese companies were already using the statistical processes,
charts, etc to improve quality and adopt quality management.
On the contrary, in the U.S. this approach on quality was not
employed, rather they pushed on quantity. Companies adopt
weed out the bad ones, keep the production rolling attitude.
Management-employee relationships have been primarily
adversarial, stemming from the history of big business
exploitation of workers. So much distrust, arguments over
contracts can lead to plant shut-down and lost of jobs. Workers
were to be blame for poor quality, management has complete
disregard for quality responsibility.

 According

to Deming, only 15% of quality

problems is attributed to workers, while 85%
is due to the manufacturing process which
can only be changed by the management
decision.
Changes must be made for U.S. companies to
regain their position. A turn-around is
possible, but the management must lead the
way.
Deming was responsible for the reawakening
the U.S. industries to the need for better
quality.

Japanese Quality Innovators

Kaoru Ishikawa (post WWII 1980s)

Genichi Taguchi (1960s 1980s)

U.S Quality Innovators

Walter Shewhart (1920-1940s)

W. Edwards Deming
Joseph M. Juran
Philip Crosby (1980s)

Pioneer of modern quality control recognized the need

to separate variation into assignable and unassignable
causes
Founder of the control chart (X-bar and R chart)
Originator of plan-do-check-act cycle
Perhaps the 1st to integrate statistics, engineering and
economics
Defined quality in terms of objective and subjective
quality. Objective quality quality of a thing independent
of people. Subjective quality quality is relative to how
people perceive it (how people value it).

Action

Plan

Check

Do

Studied under Shewhart at Bell Laboratories

Contributions: well known for helping Japanese
companies apply Shewharts statistical process control
Quality (high quality)
Deming developed his 14 points to help companies realize
their potential for better competitive position through
continuous improvement.
As quality and productivity improvement was not put on an
institutional basis within the organization it was always
perceived of as someone else's job.
Attempts to provide a clear roadmap for management so
they might come to understand what needs to be done and
who is responsible for making it happen.
It would not be possible to put the concept of never ending
improvement in place in a way that would have a lasting
impact on competitive position, without upper level
management involvement and leadership

Costs Decrease:
Improve
Quality

Stay in
Business

(Less rework,
fewer mistakes,
less scrap)

Provide Jobs
and
More Jobs

Productivity
Improves

Achieve Greater
Market Share
(higher quality
products at less cost)

1.
2.
3.
4.

5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Create constancy in purpose to improve quality

Adopt the new philosophy companies must be willing to change
Stop depending on mass inspection
End the practice of rewarding business on the basis of price tag alone
Constantly and forever improve the system of production and service
Institute modern training methods on the job
Institute modern methods of supervision
Drive out fear
Break down barriers between staff areas
Eliminate numerical goals for the workforce
Eliminate work standards and numerical quotas
Remove barriers that hinder the hourly workers
Institute a rigorous program of education and training
Create a structure in the top management that will push every day on
the preceding 13 points.

1.
2.
3.
4.
5.
6.
7.

Lack of constancy of purpose, failure to plan ahead

Emphasis on short-term profits
Evaluation of performance, merit rating or annual
review
Mobility of management
Running a company with visible figures alone
Excessive medical costs
Excessive legal costs

Feigenbaum
Developed the concept of Total Quality
Control.
System for managing the entire value-chain
connecting supplier to customer.

If you want to find out about your

quality, go out and ask your customer.
Quality control staff = Facilitators.

 Quality

Management advocate, consultant,

and author of Quality is Free
The Four absolutes of quality including:

#1- quality is defined by conformance to requirements,

not goodness.
#2 - system for causing quality is prevention not
appraisal.
#3 - performance standard is zero defects, not thats
close enough.
#4 - measurement of quality is the price of
nonconformance, not indexes.

1.

2.

The definition of quality is conformance to

requirements.

Crosby emphasizes the attitude Do it right

the first time. Management must insist
that there is absolutely no reason for
selling faulty products to customers
The system of quality is prevention

Prevention features corrective changes to

the process, anticipate for errors, think
ahead and take preventive measures.

3. Insist zero defects from suppliers. Instill in them,

any defect is not acceptable.
Believes mistakes are caused by two factors
1 lack of knowledge,
2 lack of attention.
Lack of knowledge can be solve by education
and training.
Lack of attention requires personal commitment
to excellence and attention to details
4. The measure of quality is
the price of non-conformance (PONC)
Suggests that the measure of quality is how much
is spent to correct quality problems
(non-conformance). It is estimated that PONC
amounted to 20% for products and 35% for
services.
Price of conformance (actual cost to produce if zero
defects) is only about 3%-4% of the sales price.

Cost of conformance at all quality levels is reduced with increasing

prevention (downward shifts of conformance cost curve with quality)

Cost of Conformance

Prevention

Low

Quality

High

Outgoing products/services normally contains deviations

from the published, or agreed requirements
The company has an extensive corrective service
network to keep customer satisfied
Management does not provide clear performance or
definition of standard quality
Management does not know the price of nonconformance
Management denies that it is (the management) the
cause of the problem

1.
2.
3.
4.

5.

6.
7.

Management must be committed to quality

improvement
Form a dedicated quality improvement team to set up
educational activities, creating procedures, actions, etc
Measure your progress Quality must be measured
thru the input, process and output
Keep tract of cost of quality price of nonconformance (PONC) before and after the quality
improvement efforts must be determined
Create quality awareness company-wide
Corrective action to the root of the problem use SPC
to identify problem, their roots and eliminate them.
Plan for Zero Defect (ZD Planning) Eliminate
possibility for problem to happen

8. Educate the employee everyone should

received the same education on quality
9. ZD (Zero Defect) day Give opportunity for
management to make its official commitment to
quality in front of everyone.
10. Set the goals Use chart to monitor the progress.
11. Error-cause removal ask people to submit
statements of problems they are aware of and work
on them
12. Recognize good work/effort in the quality
process
13. Create quality councils a forum to bring quality
professional together and let them learn from each
other
14. Repetition makes perfection Do it all over again,
and again.

 Contributions

also well-known for helping improve Japanese

quality.
directed most of his work at executives and the field
of quality management.
Developed the Juran Triology for managing quality:
Quality planning, quality control, and quality
improvement.

Developed concept of true and substitute quality

characteristics

true characteristics are the customers view

substitute characteristics are the producers view
degree of match between true and substitute ultimately
determines customer satisfaction.

Advocate use of the 7 tools (e.g., fish bone diagram)

Advanced the use of quality circles (worker quality
teams).
Respect for humanity as a management philosophy - full
participation.
Cross-functional management.

Taguchi methods emphasize consistency of performance and reduced

variation
Quality loss function (deviation from target is a loss to society).
Parameter design (robust engineering) which is an application of
Design of Experiments (DOE).
Identify key variables
Reduce variation on the important variables
Open up tolerances on unimportant variables

Attention

to quality as a design issue not just a

manufacturing issue.

Concept of robust/parameter design.

By varying parameters through design of experiments to obtain a more

robust/ consistently functioning product rather than by tightening
tolerances or using more expensive materials, quality as measured by
performance in the field can be improved.

Loss increases as the product quality shifts away from the target
quality characteristics

Loss

Lower
specification
limit

Target

Upper
specification
limit

Seven Tools in Quality Control

1.

2.
3.
4.

5.
6.
7.

Histograms
Pareto charts
Check sheets
Defect concentration diagrams
Scatter diagrams
Cause and effect diagrams
Control charts
Will be detailed in lecture 4

How

to use 6
Sigma and
procedures:
DMAIC

Five Steps in Six Sigma

1.
2.
3.

Define the project goals and customer requirements

Measure the process to assess current performance
Analyze the process and determine root causes of
variations and defects

4.
5.

Improve the process

Control implement control over the new or improved
process

compiled by AMIR YAZID ALI

31

1. Define
The phases are :

1.

2.

Provide it with a charter (the problem to solve)

Identify customers served by the process
Develop high-level process map
Identify customer needs and requirements

Customer - recipient of product or service of the process to be improved

Create high-level process map

Process map - flow graph showing steps and decision points in the process

32

2. Measure- Phases
1. Create data collection plan
Where measurements should occur:

Input measures (supplier effectiveness)

Process measures (your efficiency)
Output measures (your effectiveness)

2. Implement the plan (collect the data)

3. Measure the current sigma level of the
process
33

3. Analysis- phases
1.

2.

3.

Basic data analysis

Purpose is to present the data in a way that

lends itself to making inferences

Process analysis
Interpreting results of basic data analysis
Developing a more detailed picture of the way the process
operates and what is wrong with it

Root cause analysis

Objective is to identify the significant factors that affect
process performance

34

3.1 Basic Data Analysis

Usually means graphical displays
Discrete data: histograms, Pareto charts, pie charts,
defect concentration diagrams
Continuous data: check sheets, scatter diagrams

Additional techniques: analysis of variance,

regression analysis, hypothesis testing

35

3.2 Process Analysis

Process maps of details are used here

Typical questions in process analysis:

What are value-adding steps in process?

What are non-value-adding steps?
Which steps generate defects and errors?

36

3.3 Root Cause Analysis

identify the significant factors that affect process performance

y = f(x1, x2, . . ., xi, . . xn)
where y = output variable of interest, and x1, x2, . . ., xi, . . xn are
independent variables in the process

Phases are

Brainstorm hypotheses on the process relationships and problems

Useful tool: cause-and-effect diagram
Result of brainstorming: list of possible hypotheses
Eliminate unlikely hypotheses
Validate the remaining hypotheses
37

4. Improve- Phases

1.
2.

3.

Generate alternative improvements

Analyze and prioritize alternative
improvements
Implement improvements

38

4.1 Generate Alternative Improvements

Search for improvements and solutions that

will:
Reduce defects
Increase customer satisfaction
Improve quality of product or service
Reduce variation
Increase process efficiency

39

4.2 Analyze and Prioritize

Likely that the list of improvements is too long
to implement all of them
Discard those alternatives that are deem impractical
Prioritize the remaining alternatives

Techniques:
Process mapping
Failure mode and effect analysis (FMEA)
Pareto priority index
Criteria matrix
40

5. Control
Purpose is to maintain improved performance
that was achieved through implementation of
the proposed improvements

Actions in the control step:

1. Develop control plan
2. Transfer responsibility back to original owner
3. Disband Six Sigma team

41

5.1 Develop Control Plan

Document results of the improvement project
Establish standard operating procedure (SOP):
Details of process control relationships
Input, process, and output variables to measure and
monitor
Who is responsible for these measurements
Corrective action procedures when something goes
wrong
Institutional procedures required
Training requirements

42

Why is the Control Step Necessary?

Human resistance to change

Comfort with previous method
Absence of standard operating procedures
detailing new method
Inadequate process performance monitoring
Lack of attention by supervision

43

PROTON'S TOUGH ATTITUDE ON QUALITY SHOWING RESULTS

Shah Alam - It's been just five months into PROTON's Quality Enhancement
Campaign, but customers are already beginning to benefit from the initiative
to introduce a continuous and comprehensive program aimed at improving the
quality of Proton products.
Introduced in acknowledgement that quality has been an issue for PROTON, the
campaign is one of the measures being taken to transform the national car
manufacturer and addresses all key areas including the manufacturing and
engineering processes, sales and after-sales service activities, as well as
vendors.
The campaign continues to address the importance of quality in all areas to:
produce better products,
implement more stringent systems and disciplines to abide by the procedures,
improve the manufacturing and engineering processes,
practice customer-focused service at showrooms and workshops, and
extend the practice to vendors and dealers.
"Quality is a thrust that any manufacturer continuously

strives to improve upon and it is a challenge which we will

have to resolve if PROTON is to make an impact globally,"
said Managing Director of PROTON Holdings Berhad, Syed
Zainal Abidin Syed Mohamed Tahir.

Thank you
for your
kind
attention:0