IE 646 QUALITY ENGINEERING

AND MANAGEMENT
About 30 % in coverage
Topics to be covered
• Perspectives of quality management
• Managing process quality
Process control using control charts
Measuring Process Capability
Six Sigma Management
• Acceptance Sampling
• Quality costs
• Quality function deployment
• Good QM practices
• Cases in QEM
 ASSESSMENT
About 30 %, overall
Quiz 1 (5)
30 % in Mid term test 1 (7) and
End-sem (15)
Group Seminar 1 (4)
Group Assignment 1 (4)
 LECTURE 1

• January 8, 2008
• Tuesday 2 PM
 GLOBAL COMPETITION IS
CHARACTERIZED BY
• Multinational firms in many sectors
• Increased volumes of trade
• Emergence of worldwide standards
• Customers with high expectations
• Opening of markets
• Industry structure changes: alliances
• Significant increases in living standards
 THE MAJOR ISSUES ARE

Consistency, Reliability and Continuous

Improvement in Performance
• Delivery
• Cost
• Quality
• Productivity
• Customer Responsiveness
 QUALITY IS VERY IMPORTANT

BITTERNESS OF POOR QUALITY

REMAINS LONG AFTER THE SWEATNESS
OF LOW PRICE IS FORGOTTEN.
• How do we define quality ?
 MANY DEFINITIONS OF QUALITY
• Conformance to specifications
• Fitness for use
• Customer satisfaction
• Minimum societal loss
• Customer Delight
QUALITY MANAGEMENT REFERS TO
• Management of Intent

• Management of Outcome
QUALITY MANAGEMENT QUESTIONS
?

• Can you list ?

 QUALITY QUESTIONS ?

• Do we know what is right ?

> QFD
• Can we do it right ?
> Process capability
• Are we doing it right ?
> SPC
• Did we do it right ?
> SQC like Inspection
• Can we do it better ?
> KAIZEN etc.,
Topics to be covered
• Perspectives of quality management
• Managing process quality
Process control using control charts
Measuring Process Capability
Six Sigma Management
• Acceptance Sampling
• Quality costs
• Quality function deployment
• Good QM practices
• Cases in QEM
“Acceptable Quality Level”

Old way of thinking …

• An IBM firm in Windsor, Ontario, ordered a
shipment of components from a Japanese firm,
specifying the AQL as three defective components
for every 10,000 parts.
• In a covering letter from the Japanese supplier to
the IBM firm (which was reprinted in the Toronto
Sun) that accompanied the order, the Japanese
company explained how difficult it was to produce
the defective parts and said:
– “We Japanese have hard time understanding North
American business practices.”
– “But the 3 defective parts per 10,000 have been
included and are wrapped separately.”
– “Hope this pleases.”
 POOR QUALITY LEADS TO:

• Loss to society
• Loss to customer
• Loss to manufacturer
Four levels of quality ge e nt
m
management a na
ym l it Level 4:
q u a ‘Perfection’
c e in
an Level 3: •End customer
o rm ‘Prevention’ orientation &
p er f superior service
To p Level 2: •Process
‘Quality capability •Cultural
Level I: assurance’ realignment
‘Inspection’ •Supplier
•Improvement of integration
•Quality through process stability
inspection
•Start of worker
•Little quality involvement
conciousness
and know-how
 Quality Road Map
Product Issues Market Issues

Fitness to Standard

Fitness to Use

Fitness to Standard

Fitness to Latent
Requirements
HOW MOTOROLA RE-DEFINED
CUSTOMER LOYALTY
 KEY IDEAS TO QUALITY
MANAGEMENT

• Customer satisfaction
• Involvement
• Improvement by problem solving
• Services
• Integration
 VARIOUS APPROACHES TO QEM

• Traditional approach based on inspection

• Selective trouble shooting approach based on experts skill
and knowledge
• Continuous diagnostic approach based on SQC and SPC
• Organizational involvement approach based on TQM
philosophy
• Technology based approach using automation and
computerization
• Enterprise integration approach based on systematic
procedures
 POPULAR SYSTEMATIC
APPROACHES
• Quality Function Deployment (QFD)
• Failure Mode Effects and Criticality Analysis
(FMECA)
• Design of Experiments like robust design
• Fault Tree Analysis (FTA)
• Event Tree Analysis (ETA)
• Six Sigma System
• Quality cost systems
 WHO SAID THIS ?
• Quality is not expensive – it is priceless
• A customer is the most important visitor on your
premises
• He is not dependent on us. We are dependent on him
• He is not an interruption on our work. He is purpose
of it.
• He is not outsider on our business. He is a part of it.
• We are not doing him a favour by serving him. He is
doing us a favour by giving us an opportunity to do
so.
• MAHATMA GANDHI ON QUALITY
 DEFINITIONS OF QUALITY

• Conformance to specifications
• Fitness for use
• Satisfying stated / implied customer needs
> Fitness to cost
• Minimum societal loss
> Minimizing buyer+seller+society costs
• Delighting customer
> Fitness to latent requirements
 The Evolution of Quality

Q Concept 1: Fitness to Standard

Q Concept 2: Fitness to Use
Q Concept 3: Fitness to Cost
Q Concept 4: Fitness to
Latent Requirements