Quality Management

AGRIB 140
Production and Operations Management
Quality
• can be broadly defined as the extent to which a
product or service meets or exceeds a customer’s
expectations.

Prior to the 1980s, Quality was not a

main priority for North American
manufacturers.
Quality (Cont’d)
• Design quality can be described as the quality that a
product has in terms of the actual characteristics of the
product.
Quality (Cont’d)
• Process quality refers to the ability of the organization
to produce the good or service having perfect quality at
each stage of the process, or in other words,
manufacturing defect-free products.
Quality (Cont’d)
• Measurement of service quality is more challenging.
Gurus of Quality
Walter Shewhart (1891-1967)
• father of statistical quality control and spent much of his
career researching variation and is credited with the
creation of the first control chart
• focused around the need to reduce variation in order to
improve quality
• responsible for the concepts of assignable and common
variation.
• Assignable variation is the type of variation where the
cause can be clearly identified and corrected or
managed.
• Common variation, also referred to as chance
variation, is the type of variation that is inherent in the
process
Gurus of Quality (cont’d)
Edwards Deming (1900-1993)
• was recruited to Japan after WWII to assist with
their national census
• trained thousands of Japanese engineers,
managers, and scholars in basic statistical process
control
• credited with guiding the rise of Japanese
superior quality
• the Japanese named their highest quality award
after Dr. Deming (The Deming Prize
• most well known for Deming’s 14 points[2] and
the Deming Cycle.
Edwards Deming’s “14 points:”
1. Create constancy of purpose toward improvement of product
and service, with the aim to become competitive, to stay in
business and to provide jobs.
2.Adopt the new philosophy. We are in a new economic age.
Western management must awaken to the challenge, must
learn their responsibilities, and take on leadership for change.
3.Cease dependence on inspection to achieve quality. Eliminate
the need for massive inspection by building quality into the
product in the first place.
4.End the practice of awarding business on the basis of a price
tag. Instead, minimize total cost. Move towards a single supplier
for any one item, on a long-term relationship of loyalty and
trust.
5.Improve constantly and forever the system of production and
service, to improve quality and productivity, and thus constantly
decrease costs.
6.Institute training on the job.
7.Institute leadership The aim of supervision should be to help
people and machines and gadgets do a better job. Supervision
of management is in need of overhaul, as well as supervision of
production workers.
Edwards Deming’s “14 points:”
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments. People in research, design, sales, and
production must work as a team, to foresee problems of production and usage that may
be encountered with the product or service.
10.Eliminate slogans, exhortations, and targets for the work force asking for zero defects
and new levels of productivity. Such exhortations only create adversarial relationships, as
the bulk of the causes of low quality and low productivity belong to the system and thus
lie beyond the power of the work force.
1. Eliminate work standards (quotas) on the factory floor. Substitute with leadership.
2. Eliminate management by objective. Eliminate management by numbers and
numerical goals. Instead substitute with leadership.
11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The
responsibility of supervisors must be changed from sheer numbers to quality.
12.Remove barriers that rob people in management and in engineering of their right to
pride of workmanship.
13.Institute a vigorous program of education and self-improvement.
14.Put everybody in the company to work to accomplish the transformation. The
transformation is everybody’s job.
Deming Cycle
Gurus of Quality
Joseph Juran (1904-2008)
• best known for the Quality Control Handbook, which was
first published in 1951
• emphasized the importance of three specific factors which
came to be known as the quality trilogy: quality planning,
quality control and quality improvement
• responsible for creating the concept known today the cost
of quality
• came upon the work of Vilfredo Pareto (1848-1923) and
made the Pareto Principle, also known as the 80/20 rule,
well known today as a tool for problem solving and
continuous improvement.
• It is generally accepted that 80% of defects can be traced to
a small number (20%) of the causes.
• Firms need to ensure that they are concentrating on fixing
the correct or “root” causes.
Cost of Quality
• Prevention costs include all the funds spent to prevent
the occurrence of defects.
• Appraisal costs include money spent in checking and
testing of product during the production process
• Internal failure costs
Once a defect has been produced, with any luck the
organization will detect the error before it leaves the
building and is sent to the customer. Often, defective
products can be repaired, but all of the extra time spent
on the rework is considered internal failure costs. Product
that is unable to be repaired is classified as scrap.
• External failure costs
Once a defective product has been shipped to the
customer, the costs then become external failure costs.
Gurus of Quality
Philip Crosby (1926-2001)
• published Quality is Free in 1979
• believed that the costs of quality are often
understated
• coined the phrase zero defects and felt that there
was no reason for any errors
• Armand Fiegenbaum (1920-2014)
• the Director of Manufacturing Operations at General
Electric from 1958-1968
• devised the concept of total quality control, which
later became total quality management (TQM)
• known for his concept of a “hidden plant”
Total Quality Management (TQM)
• includes all the steps that a company takes to
ensure that its goods or services meet or
exceed the customers defined
specifications and are of sufficiently high
quality to meet customers’ needs
• TQM principles by focusing on three tasks:
• Customer satisfaction
• Employee involvement
• Continuous improvement
Total Quality Management (TQM)
Customer Satisfaction
• customers define quality by identifying and offering those product
features that satisfy customer needs
• steps are taken to make sure that providing quality is a factor in every
facet of their operations
• many companies routinely use surveys and other methods to monitor
customer satisfaction. By tracking the results of feedback over time, they
can see where they need to improve.
Employee Involvement
• Successful TQM requires that everyone in the organization
• managers must communicate the importance of quality to subordinates
and motivate them to focus on customer satisfaction.
• Employees have to be properly trained not only to do their jobs but also
to detect and correct quality problems.
Continuous Improvement
• an integral part of TQM
• can almost always be made to increase efficiency, reduce costs, and
improve customer service and satisfaction
ISO (International Organization for
Standardization)
• an international standard-setting body composed of
representatives from various standards organizations.
• Founded on 23 February 1947, the organization promotes
worldwide proprietary, industrial and commercial standards.
• ISO is an independent, non- governmental organization and is
the largest developer of voluntary international standards.
• Use of these standards assists organization to create products
and services that are safe, reliable and of good quality.
• The standards help businesses increase productivity while
minimizing errors and waste.
• The standards also serve to safeguard consumers and the end-
users of products and services, ensuring that certified products
conform to the minimum standards set internationally.[4]
Steps in obtaining ISO certification
1. A firm must initially begin by documenting and implementing
their systems for quality management. Add: These documents
must include Policy, Procedures and work instructions. This is no
small task. This documentation may take a great deal of time,
effort and collaboration by all of their employees. In addition to
this, the company will develop a Quality Manual that outlines
how they will assure the quality of their goods and service.
2.Training of all employees involved with these processes must
take place. The employees must gain full understanding and be
comfortable with these new work procedures and documents
3.An audit must take place. The organization must arrange to
have a certification body come to complete the audit. There are
many different private companies that have been granted (by
ISO) the authority to grant ISO9000 certification. These private
companies are themselves accredited by ISO.
7 ways ISO certification can help your
business
• 1) Promotes best practices
• 2) Helps you become more productive
• 3) Keeps customers happy
• 4) Improves revenues
• 5) Opens doors to new markets
• 6) Fosters team commitment
• 7) Applies to all sizes
Hazard Analysis Critical Control
Point (HACCP)
• a quality management system for organizations in the
food processing industry. By implementing a
• gain customer confidence
• sharpen your competitive edge and develop new export
opportunities
• achieve more rigorous quality control
• reduce waste and spoilage
• control contamination risks and recall processes
• build awareness of hygiene and safety for employees
• eliminate potential allergen issues
• Any food business must have the safety of their
customers as they key priority
Seven principles of HACCP
• Conduct a Hazard Analysis
• Identify Critical Control Points
• Establish Critical Limits
• Monitor Critical Control Points
• Establish Corrective Actions
• Establish Record Keeping Procedures
• Establish Verification Procedures
Six Sigma
• a set of techniques and tools for process
improvement
• introduced by engineer Bill Smith while working at
Motorola in 1980
• a comprehensive quality system for achieving
business success by minimizing variation in
business processes
• Six Sigma comes from the term in statistics of
sigma, meaning standard deviation. It is a measure
of the amount of variation in a set of data.
Production Development and
Improvement
Tools for Quality Improvement
Check Sheets
• This is a custom designed form used to record the number of occurrences of a
particular outcome of interest.
Tools for Quality Improvement
Histograms
• Data that is continuous in nature can be put into a Histogram
that contains ranges of the data.
Tools for Quality Improvement
Control Charts
• A Control Chart includes an Upper Control limit and a lower Control
limit, which are used to control the quality dimension that is
measured.
Tools for Quality Improvement
Pareto Charts
• A special type of bar chart that shows the number of occurrences of a
particular characteristic, ordered from highest to lowest. A Pareto analysis
helps us focus our attention on the defects that occur the most frequently and
to allocate the resources accordingly.
Tools for Quality Improvement
• Pareto Charts
Tools for Quality Improvement
Scatter Diagrams
• A simple diagram helps to figure out if there is a relationship
between two variables.
Tools for Quality Improvement
• Cause and Effect Diagrams