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PRODUCTION

PLANNING AND
CONTROL
(MEFB 433)
Dr. Weria Khaksar
Email: weria@uniten.edu.my
Room No. BN-03-08

5- QUALITY
MANAGEMENT

3- Quality Management
General Definition:
Quality refers to the ability of a
product or service to consistently
meet
or
exceed
customer
requirements or expectations.
Before the increased level of Japanese
competition in the world, quality was
not a priority and other factors like cost
and productivity were more important.

3- Quality Management
The Evolution of Quality:
Before industrial Revolution: One or a small group of
workers were responsible for production.
Industrial Revolution: Division of labor
F. W. Taylor: Product inspection and measurement
G. S. Redford: involving quality consideration early in the
product design and making connection between high quality,
increased productivity and lower costs.
Statistical Quality Control
Sampling Techniques
Quality Assurance
Zero Defects (perfect Products)
Increase in the energy costs: More demand for fuelefficient, lower-cost vehicles.
Quality became Strategic

3- Quality Management
The Foundations of Modern Quality
Management:
Walter Shewhart: Statistical quality control. Control charts,
variance reduction.
W. Edwards Deming: The cause of poor quality is the
system not employees.
Joseph M. Juran: Quality control handbook. Quality trilogy
Deming's
14 Points
for Quality Achievement:
(Planning,
Control
and Improvement).
1.
Create constancy
of purpose Total
8. Drive
out fear.
Armand
Feigenbaum:
quality
control. Customer
for improvement of product
9. Break down barriers between
defines
quality.
and services.
departments.
2.
Adopt the
philosophy.
10. Eliminate
the
Phillip
B.new
Crosby:
Zero defects,
Do it numerical
right thegoals
firstfortime,
3. PREVENTION.
Cease dependence on mass
work force.
inspection.
11. Eliminate work standards and
Kaoru
Ishikawa:
Cause-and-effect
diagram.
4.
End the practice
of awarding
numerical(fishbone)
quotas.
businesscustomers.
on price tag alone.
12. Remove barriers to pride of
Internal
5. Constantly and forever
workmanship.
Genichi
Taguchi:
Taguchi
loss
function,
the of
cost
improve the systems of
13. Institute adetermining
vigorous program
production
and services.
education and training for
of
poor quality.
6. Institute modern methods of
everyone.
Taiichi
Ohno
and
Shigeo
Shingo:
The philosophy
and
training on the job.
14. Create a structure
in top.
of KAIZEN,
7. method
Institute modern
methods ofa Japanese term for continuous

3- Quality Management
Defining Quality (The Dimension
of Quality)
Product quality is often judged on eight dimensions
of quality:
Dimension
Examples
1. Performance
works
Performance
mainEverything
characteristics
of the product.
Aesthetics
appearance,
smell,design
taste,
2. Aesthetics
Exteriorfeel,
and interior
Special
Features extra
characteristics.
3. Features
High tech,
GPS system, Safety
Conformance how well a product corresponds to
4. Conformance Car matches manufacturers
design specifications.specifications
5. Reliability
Reliability
consistency
of performance.
Infrequent need for repair
6. Durability
Durability
the useful life of the product.
Useful life in miles
Perceived
Quality indirect evaluation of quality
7. Perceived
Quality
Top-rated
(e.g., reputation).
Serviceability
8. Serviceability
Ease of of
repair
handling
complaints or repairs.

3- Quality Management
Defining Quality (The Dimension
of Quality)
Service quality is often judged on eight dimensions
of quality: Examples (Automobile repair center)
Dimension
Convenienc Was
the
and
accessibility
of the service.
1. Convenience
the availability
service center
conveniently
located?
Reliability
e
the ability to perform a service dependably,
problem fixed?
consistently, Was
andthe
accurately.
2. Reliability
Responsiveness
the
willingness
service
Were the
personnel
willingof
and
able toproviders
answer to help
3. customers
Responsive inquestions?
unusual situations and to deal with problems.
ness
Time
the speed
withdid
which
service is
delivered.
How long
the customer
have
to wait?
Assurance
4.
Time
the knowledge exhibited by personnel who come
the
about
the trust
into contact Did
with
a personnel
customerseem
and knowledgeable
their ability to
convey
5. Assurance
repair?
and confidence.

Courtesy
6.
Courtesy the
Wereway
the personnel
friendly
and courteous?
customers
are treated
by employees who
come into contact with them.
Were the facilities clean? Were personnel neat?
Tangibles the physical appearance of facilities, equipment
8. and
Consistency
Was the service quality good, and was it consistence
personnel.
7. Tangibles

with previous visit?

3- Quality Management
Responsibilities for Quality
Top Management
Design
Procurement
Production/Operations
Quality Assurance
Packaging and Shipping
Marketing and Sales
Customer service

3- Quality Management
Benefits of Good Quality
-

An enhanced reputation for quality


The ability to command premium prices
An increase market share
Greater customer loyalty
Lower liability costs
Fewer production/service problems
Fewer complaints from customers
Lower production cost
Higher profit

3- Quality Management
Consequences of Poor Quality
-

Loss of business
Higher liability
Lower productivity
More costs
YOUR CUSTOMER MAY KILL YOU !

3- Quality Management
The Cost of Quality
Appraisal Costs relates to inspection, testing and
other activities intended to uncover defective
products or services, or to assure that there are
none. Includes the cost of inspectors, testing, test
equipment, labs, quality audits and field testing.
Prevention Costs relate to attempts to prevent
defects from occurring. Includes costs such as
planning and administration systems, working with
vendors, training, quality control procedures and
extra attention in both the design and production
phases to decrease the probability of defective
workmanship.
Failure Costs are incurred by defective parts or
products or by faulty services. Internal failures are

3- Quality Management
Well-Known Quality Awards
The Baldrige Award: Annual award given by the U.S.
congress

to

recognize

quality

achievements

of

U.S.

companies.

The

European

Quality

Award:

European

award

for

organizational excellence.

The

Deming

Prize:

Japans most
recognizing successful quality efforts.

important

award

Well-Known Quality Certification


ISO 9000: A set of international standards on quality
management and quality assurance, critical to international
business.

ISO 14000: A set of international standards for assessing a


companys environmental performance.

ISO 24700: A set of international standards that pertains to


the quality and performance of office equipment that contains

3- Quality Management
Total Quality Management (TQM)
A philosophy that involves everyone
in an organization in a continual
effort to improve quality and
achieve customer satisfaction.

3- Quality Management
Total Quality Management (TQM)
Important Elements of
TQM:
1.

Continuous improvement.

2.

Competitive
benchmarking.

3.

Employee empowerment.

4.

Team approach.

5.

Decision based on facts


rather than opinions.

6.

Knowledge of tools.

7.

Supplier quality.

8.

Champion.

9.

Quality at the source.

10. Suppliers are partners in


the process.

3- Quality Management
Total Quality Management (TQM)
Six Sigma:
A business process for improving quality,
reducing costs, and increasing customer
satisfaction.

3- Quality Management
Total Quality Management (TQM)

Six Sigma:
Six Sigma is a set of techniques and tools
for
process
improvement.
It
was
developed by Motorola in 1986.
Six Sigma seeks to improve the quality of
process outputs by identifying and
removing the causes of defects (errors)
and minimizing variability. It uses a set of
quality management methods, including
statistical methods, and creates a special
infrastructure of people within the
organization who are experts in these

3- Quality Management
Total Quality Management (TQM)
Obstacles to implementing TQM:
1. Lack of a companywide definition of quality
2. Lack of strategic plan for change
3.
4.
5.
6.
7.

Lack of a customer focus


Poor intra-organizational communications
Lack of employee empowerment
View of quality as a quick fix
Emphasis on short term financial results

8. Inordinate presence internal politics and turf issues


9. Lack of strong motivation
10. Lack of time to devote to quality initiatives
11. Lack of leadership

3- Quality Management
Problem Solving
Basic steps in problem solving:
1. Define the problem and establish an
improvement goal
2. Define measures and collect data
3. Analyze the problem
4. Generate potential solutions
5. Choose a solution
6. Implement the solution
7. Monitor the solution to see if it
accomplishes the goal

3- Quality Management
Problem Solving
The Plan-Do-Study-Act Cycle (PDSA)
Also referred to as either the Shewhart
cycle or the Deming wheel is a framework
for problem solving and improvement
activities.
1. Plan: begin by studying the current
process.
2. Do: Implement the plan, on a small scale if
possible.
3. Study: Evaluate the data collection during
Do phase.

3- Quality Management
Process Improvement
Process improvement
improving a process.

Select a
process
Document
Study/document
Evaluate
Implement the
Improved process

Seek ways to
Improve it

Design an
Improved process

is

systematic

approach

to

3- Quality Management
Quality Tools
Flowcharts
Check Sheets
Histograms
Pareto Analysis
Scatter Diagrams
Control Charts
Cause-and-Effect Diagrams
Run Charts

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