Quality Assurance & Productivity Management

Learning Objectives
To Understand Concepts of Quality Management
To Acquire Knowledge, Skills & Competencies To Develop, Implement & Manage A Quality System To Familiarize With TQM Tools & Techniques To Apply Quality Improvement Practices

Scope

1. Evolution & Concepts of Quality Management 2. TQM Tools & Techniques 3. Implementing Quality Management Systems 4. Productivity Concepts

5. Benchmarking & Global Best Practices

Scope 1

Evolution & Concepts of Quality Management

Evolution of Quality Era

Evolution
TQM

TQC & CWQC TQC SQC

Inspection
Foreman Craftsman

Years
1900 1920 1940 1960 1980 1990 2000

Evolution of Quality Management

Inspection Quality Control Quality Assurance
Salvage, Sorting, Grading, Blending, Corrective Actions, Identify Sources of Non-conformance Develop Quality Manual, Process Performance Data, Self-inspection, Product Testing, Basic Quality Planning, Use of Basic Statistics, Paperwork Control.

Quality Systems Development, Advanced Quality Planning, Comprehensive Quality Manuals, Use of Quality Costs, Involvement of Non-production Operations, Failure Mode & Effects Analysis, SPC. Policy Deployment, Involve Supplier & Customers, Involve All Operations, Process Management, Performance Measurement, Teamwork, Employee Involvement.

TQM

Evolution of Quality Means & Focus

1975 1980 1985 1990 1995 2000

Quality Circle

Productivity

Quality

Total Quality

TQC/TQM

Quality of Work life

Employee Involvement

Employees Empowerment
Self Directed Teams Self Directed Teams

Operation

Customers

7 Innovations

Defining Quality
Definition of Quality Depends On People Defining It

There Is No Single, Universal Definition of Quality

5 Common Definitions Include: (See Next Slide)

Defining Quality 5 Ways

1. Conformance To Specifications
Does Product / Service Meet Targets & Tolerances Defined By Designers?

2. Fitness For Use

Evaluates Performance For Intended Use

3. Value For Price Paid

Evaluation of Usefulness VS Price Paid

4. Support Services
Quality of Support After Sale

5. Psychological
Ambiance, Prestige, Friendly Staff

Manufacturing Quality vs. Service Quality

Mfg Quality Focuses On Tangible Product Features

Conformance, Performance, Reliability, Features

Service Organizations Produce Intangible Products That Must Be Experienced

Quality often Defined By Perceptional Factors Like Courtesy, Friendliness, Promptness, Waiting Time, Consistency

Quality Gurus

TQM Philosophy
TQM Focuses On Identifying Quality Problem Root Causes Encompasses The Entire Organization Involves The Technical Issues As Well As People Issues Relies On Seven Basic Concepts of : 1. 2. 3. 4. 5. 6. 7. Customer Focus Continuous Improvement Employee Empowerment Use of Quality Tools Product Design Process Management Managing Supplier Quality

TQM Concepts
1. Focus on Customer
Identify And Meet Customer Needs Stay Tuned To Changing Needs, E.G. Fashion Styles

2. Continuous Improvement
Continuous Learning & Problem Solving, e.g Kaizen, 6 Sigma Plan Do Check Act (PDCA)

3. Employee Empowerment
Empower All Employees; External & Internal Customers
Team Approach Formed Around Processes 8 To 10 People Meet Weekly To Analyze & Solve Problems QCC / PAT / KIK

The 9 Dimensions of Quality

1. Performance
2. Features 3. Conformance
Performance

4. Reliability 5. Durability 6. Service 7. Response of Dealer/Mfgr. to Customer

8. Aesthetics of Product
9. Reputation of Mfgr/Dealer
Service

Cost
Features

Principles of TQM
Approach Scope Scale Philosophy Standard Control Theme Management Led Company Wide All Responsible For Quality Prevention Not Detection Right First Time Cost of Quality On Going Improvement

Scope 2

TQM Tools & Technique

Ways of Improving Quality

1. Plan-Do-Check-Act Cycle (PDCA)
Also Called The Deming Wheel After Originator
Circular, Never Ending Problem Solving Process

2. Seven Tools of Quality Control

Tools Typically Taught To Problem Solving Teams

3. Quality Function Deployment

Used To Translate Customer Preferences To Design

1 PDCA Cycle

PDCA Details
1. Plan
Evaluate Current Process Collect Procedures, Data, Identify Problems Develop An Improvement Plan, Performance Objectives

2. Do
Implement The Plan Trial Basis

3. Check
Collect Data And Evaluate Against Objectives

4. Act
Communicate The Results From Trial If Successful, Implement New Process

2 Seven Tools of Quality Control

1. Cause-and-Effect Diagrams

2. Flowcharts
3. Checklists 4. Control Charts 5. Scatter Diagrams 6. Pareto Analysis 7. Histograms

1 Cause-and-Effect Diagrams
Called Fishbone Diagram Focused On Solving Identified Quality Problem

Systems Principles - Systems Thinking

INPUTS
PERSON POWER

PROCESSES

OUTPUTS

CUSTOMERS

METHODS

EXTERNAL

ENVIRONMENT

Critical Process Necessary to Produce the Outputs

Products & Services

INTERNAL

FACILITIES & EQUIPMENT

SUPPLIES

MEASURES OF PERFORMANCE TIME; QUANTITY, QUALITY (Accuracy/ Fir for Use); COST; MANNER OF PERFORMANCE

A Contemporary Systems View

2 Flow Chart Diagram

Used To Document The Detailed Steps In A Process often The First Step In Process Re-engineering

3 Check List
Simple Data Check-off Sheet Designed :
To Identify Type of Quality Problems At Each Work Station;

Per Shift, Per Machine, Per Operator

4 Control Chart
Important Tool Used In Statistical Process Control The UCL And LCL Are Calculated Limits Used To Show When Process Is In Or Out of Control

5 Scatter Diagram
A Graph That Shows How Two Variables Are Related To One Another

Data Can Be Used In A Regression Analysis To Establish Equation For The Relationship

6 Pareto Analysis
Displays Degree of Importance For Each Element

19th Century Italian Economist; often Called 80-20 Rule

Principle Is That:
Quality Problems Are The Result of Only A Few Problems

E.G. 80% of The Problems Caused By 20% of Causes

7 Histogram
A Chart That Shows The Frequency Distribution of Observed Values of A Variable Like Service Time At A Bank Drive-up Window Displays Whether Distribution Is Symmetrical (Normal) Or Skewed

3 Product Design QFD

Critical To Ensure Product Design Meets Customer Expectations Tool For Translating Customer Specifications Into Technical Requirements Is Quality Function Deployment (QFD) QFD Encompasses

Customer Requirements Competitive Evaluation Product Characteristics Relationship Matrix Trade-off Matrix Setting Targets

Quality Function Deployment

Process Used To Ensure That Product Meets Customer Specifications

Voice of The Engineer

Voice of The Customer

Customer-based Benchmarks

QFD - House of Quality

Trade-offs

Technical Benchmarks

Targets

Adding Trade-offs, Targets & Developing Product Specifications

Reliability Critical To Quality

Reliability Is The Probability That The Product, Service Or Part Will Function As Expected

No Product Is 100% Certain To Function Properly

Reliability Is A Probability Function Dependent On Sub-parts Or Components

Reliability Critical To Quality

Reliability of A System Is The Product of Component Reliabilities : Rs = (R1) (R2) (R3) . . . (Rn) RS = Reliability of The Product Or System R1 = Reliability of The Components Increase Reliability By Placing Components In Parallel Parallel Components Allow System To Operate If One Or The Other Fails

Process Management & Managing Supplier Quality

Quality Products Come From Quality Sources

Quality Must Be Built Into The Process Quality At The Source Is Belief That It Is Better To Uncover Source of Quality Problems And Correct It TQM Extends To Quality of Product From Companys Suppliers

Scope 3

Implementing Quality Management Systems

What Is A Standard?

A standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose.

Benefits Of International Standards

International Standards bring technological, economic and societal benefits. They help to harmonize technical specifications of products and services making industry more efficient and breaking down barriers to international trade. Conformity to International Standards helps reassure consumers that products are safe, efficient and good for the environment.

ISO 9001: 2008

Created By International Organization For Standardization (IOS) To Standardize Quality Requirement. Adopted A Series of Written Quality Standards In 1987 Revised In 1994, 2004 and More Recently In 2008. Prefix ISO Refers To The Latin Term Esos For Equal ISO 9000 Quality Standards Focus On The SYSTEM, Not The Product.

ISO 9001: 2008

Created To Meet Five Objectives: 1. Achieve, Maintain, and Seek To Continuously Improve Product Quality In Relation To The Requirements. 2. Improve The Quality of Operations To Continually Meet Customers and Stakeholders Needs. 3. Provide Confidence To Internal Management That Quality Requirements Are Being Met. 4. Provide Confidence To The Customers That Quality Requirements Are Being Met. 5. Provide Confidence That Quality System Requirements Are Fulfilled. 39

ISO 9000 Structure

Consists of 3 Documents 1. ISO 9000 Fundamentals & Vocabulary. 2. ISO 9001 Requirements. Organized In Four Sections: Management Responsibility; Resource Management; Product Realization; Measurement & Analysis and Improvement. 3. ISO 9004 Guidelines For Performance Improvements.
40

ISO 9000 - Quality Management Principles

Principle 1: Customer Focus
Principle 2: Leadership Principle 3: Involvement of People

Principle 4: Process Approach

Principle 5: Systems Approach For Management Principle 6: Continual Improvement

Principle 7: Factual Approach To Decision Making

Principle 8: Mutually Beneficial Supplier Relationships.

ISO 9000 - 20 Elements

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 Management Responsibility Quality System Contract Review Design Control Document & Data Control Purchasing Control of Customer Supplied Product Product Identification and Traceability Process Control Inspection and Test Status

ISO 9000 - 20 Elements

4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 Control of Inspection, Measuring & Test Equipment. Inspection and Test Status Control of Nonconforming Product Corrective & Preventive Action Handling , Storage, Packaging, Preservation & Delivery Control of Quality Records Quality Audits Training Servicing Statistical Techniques

ISO Hierarchy of Documentation

Quality Plan
Quality Manual

Quality Procedure
Quality Records Work Instructions References Document

Certification Process
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Commitment From Top Management Identify Training Consultant & Certification Body Select Project Team Undergo ISO Training Develop Documentation Submit Document For Review Create Awareness Implement System Conduct Internal Audit Apply For Certification Compliance Audit Award of Certificate & Celebrate

Certification Framework
1st Party Assessment
Internal Quality Audit On Site Self Audit 1st Party Assessment

2nd Party Assessment

Internal Quality Audit Customer Assessment 2nd Party Certification

3rd Party Assessment

Internal Quality Audit Compliance Audit 3rd Party Certification Surveillance Visit

Quality Awards

Malcolm Baldrige National Quality Award

The Deming Prize

European Foundation Quality Award

PM Quality Award

Scope 4

Productivity Concepts

Productivity

What is it?
Why do we need it? How do we measure it? How do we improve it? How do we implement it ?

Definition Of Productivity
Productivity = Output Input (For Any Type of Organization)
Methods of Improving Productivity
Increase Output While Input Remains Same Decrease Input While Output Remains Same Increase Input Resulting In A Very Large Increase In Output Decrease Input By A Very Large Amount With A Resultant Small Reduction In Output

Production Model
Are We Doing Things Right? Are We Doing The Right Things? Intended Results

Planned Work

Input

Process

Output

Outcome Impact

Productivity, Efficiency

Effectiveness

Resources

Goals
51

Inputs of An Organisation
Whether Public Or Private; Inputs That Are Available To Them Are: Land & Buildings Materials Plant, Machines & Equipment Energy People Money

Examples Of Output
Whether The Organization Is Public Or Private The Outputs Are ; Accomplishment of A Task Length of An Output Distance Travelled Number of Pieces Produced Weight of Production Volume of Output Value of Output No. of Documents Processed Time Taken To Carry Out A Job No of Jobs Attended No. of Customers Served

Basic Approaches To Productivity Improvement

Investment In High Output Modern Plant & Equipment and New Technology Capital Intensive Approach
Improving Efficiency & Effectiveness of Existing Resources Better Management Approach

Productivity Levels

National Productivity Industry Productivity Company Productivity Divisional Productivity Branch Productivity Individual Productivity

Micro-Level Productivity Indicators

Ratios Which Measure: Competitiveness Labour Productivity Capital Productivity Business Returns & Profitability Process Efficiency

Misconception About Productivity

1. Productivity = Production.
Productivity Is Merely A More Sophisticated Word For Production.

2. Productivity Means Only Labour Productivity 3. Productivity Can Be Increased By Getting People To Work Harder
TRUE TO SOME EXTENT But This Is Labour Intensity NOT Real Productivity.

Real Productivity Means Working More Intelligently Not Harder

4. Relevant Only In Manufacturing And Not Relevant Elsewhere 5. Productivity Can Be Increased By Cutting Costs Across The Board 6. Productivity Is Directly Related To Profits.
In Other Words A Profitable Organization Is Always A Productive One

7. Only For Commercial Enterprises And Not For The Public Sector 8. Productivity Is For Organizations And Not For You And Me

The M-I-G Cycle

GAIN SHARE

MEASURE

IMPROVE

Production Processes

Ways to Improve a Process

Reduce Resources Reduce Errors Meet or Exceed Expectations of Internal/External Customers Make Process Safer Make Process More Satisfying To Person Doing

61 61

Improving Labour Productivity

Improving Working Conditions Lighting, Ventilation, Noise(Music), Temperature, Work Times Using Appropriate & Better Tools Ergonomics & Better Work Station Layout. Improving Factory, Stores & Office Layout. Improving The Method/Process - Use 5 Ws & I H Improving The Nutritional Status of The Worker Improving Industrial Housekeeping (5s) & Safety Improving Welfare Facilities & Worker Motivation

Reason For Low Productivity

Inefficient Method Bad Working Conditions Unsafe Practices Penny-wise Pound Foolish Policies Absence Of Pride In Our Own Product Grasshopper Sales Policies Honest Wrong Beliefs Rigid Perceptions Lack Of Scientific Management

Partial Productivity
Partial Productivity - Ratio Of Output To One Class Of Input. Labour Productivity = Output Human Input Output Material Input Output Capital Input Output Energy Input

Material Productivity
Capital Productivity Energy Productivity

=
= =

Total Productivity

Total Productivity Is The Ratio Of Total Output To The Sum Of All Input Factors

Total Productivity = Total Output Human + Material + Capital + Energy + Other Expenses

Factor Affecting Productivity

Factors
Human Related Factors Communication & Control Process
Structure Related Resource Availability Equipment & Machinery Related Others

Frequency (%)
36.34 27.05
13.66 7.92 9.02 6.01

Ways To Improve Productivity

Working Conditions Method Study Work Measurement Efficient Maintenance Management Long Term Planning Cycle Time Reduction Value Engineering Value Analysis Scrap Reduction Efficient Marketing Management Training & Education Quality Circle Total Quality Management Re-engineering Just In Time Creativity Techniques Root Cause Analysis

Productivity Best Practices

Top Leadership To Drive Alignment
Clear Strategy Based On Rigorous Diagnosis Of Existing Strengths Productivity Transformation Takes Time Requires Creation Of A Competitive And Attractive Business Environment Focus On Attracting, Retaining And Embedding Key Institutions Responsive Culture, Fast Actions & Overcome Bureaucracy Emphasise On R&D Incentives Build Competencies & Capabilities

Scope 5

Benchmarking & Global Best Practices

What is Benchmarking?
A method for identifying and importing best practices in order to improve performance. The process of learning, adapting, and measuring outstanding practices and processes from any organization to improve performance

Why Benchmark?

Identify Opportunities To Improve Performance

Learn From Others Experiences Set Realistic But Ambitious Targets Uncover Strengths In Ones Own Organization Better Prioritize And Allocate Resources

The Continuous Improvement Process

Measurement

Measurement

Empowerment/ Shared Leadership

Measurement

Customer Satisfaction

Team Management

Business Results

Process Improvement/ Problem Solving

Measurement

Building A House Of Quality

CONTINUOUS IMPROVEMENT
HIGH EXPECTATIONS CUSTOMER FOCUS ASSESSMENT & FEEDBACK

MANAGEMENT BY FACT

TRUST
SHARED VALUES AND GOALS

INVOLVEMENT

Best Practices
Attribute 1
Attribute 2

Uses Systems Approach that starts with the end in mind.

Incorporate Change Management and Leadership Development to effectively transform an organization to high performance.

Attribute 3
Attribute 4

Attribute 5

Provide Actionable Performance Information to better inform decision making. Incorporate Assessment-Based Inputs of the external and internal environment, and an understanding of customers and stakeholder needs and expectations Include Strategic Initiatives to focus attention on the most important performance improvement projects.
74

Best Practices
Attribute 6 Offer a Supporting Toolkit, including terminology, concepts, steps, tools, and techniques that are flexible and scalable. Attribute 7 Align Strategy and Culture, with a focus on results and the drivers of results. Attribute 8 Integrate Existing Organization Systems and Align the Organization Around Strategy. Attribute 9 Be Simple to Administer, Clear to Understand and Direct, and Deliver Practical Benefits Over the Long-Term. Attribute 10 Incorporate Learning and Feedback, to Promote Continuous Long-term Improvement.
75

SMART Goals
S Specific Target A Specific Gap

M Measurable

Be Specific To The Degree Of Improvement And Have Measurable Outcomes

A Attainable R Related T Time Bound

Be Attainable And Realistic Related To Core Business Within Reasonable Time