Management of Quality in Operations

No organization produce perfect products/services all the time. It becomes a decision on what is considered acceptable risk and defect. Each organization needs to define what defect is with consideration of the requirements of customers.

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Management of Quality in Operations - continued

Usually it is a trade-off between customer satisfaction and cost (financial, image, relationships). A Quality Management System is one where procedures are set for setting quality objectives, design the process, implement the process, measure performance, and make adjustment/improvement.

Quality Management
Leaders: Deming, Crosby, Juran, Ishikawa. ISO 9000, QS9000, 14000 standards: Document what you do and then do as you documented. ASQ.org, APICS.org, iso.org.

Design Quality(Planning) and Conformance Quality(Control)

Design(planning) quality.

value of the product/service. strategic decisions according to marketplace.

Conformance(control) quality:

the degree to which the specifications are met. Day-to-day decisions.

Quality Specifications and Costs

Dimensions:
performance(primary characteristics) features(bells and whistles) reliability(consistency of performance,

probability of failures) durability(useful life) serviceability(ease of repair) response(human-human interface - courtesy, speed, competence) aesthetics(sensory characteristics - sound, feel, look) reputation(past performance, perceived quality)

Conformance Quality Costs

Cost of quality:

total costs attributable to the production for quality that is not acceptable. Reworking, scrapping, repeated service, inspections, tests, warranties. 10-15% of revenue. Ideally, 2.5%(Crosby) Worth analyzing because failures are caused and prevention is cheaper.

Cost of Quality
Appraised costs - inspections, tests. Prevention costs - identify defects, implement corrective actions, train personnel, redesign, new equipment/modification. Internal failure costs - scrap, rework, repair. External failure costs - warranty replacement/repair, loss of customer goodwill, handling complaints.

Historical Developments
Statistical Quality Control Deming, 1950s. Quality Control Circle Japan, 1960s. Total Quality Management(TQM):

Japan TQC, 1970s. USA TQM, 1980s. Extends beyond local process to entire view. never-ending process of achieving small gains. Continuous improvement.

Historical Developments continued

Zero Quality Control(ZQC):

Poka-Yoke - Shigeo Shingo. Mistake-proof. Electronic signaling devices. People makes errors, errors cause defects. Organizations can not eliminate errors, but it can eliminate defects. Introduces controls within the process. Defects can be prevented if feedback (inspection) leading to corrective action takes place immediately after errors. Inspection types:
Successive check Self check Poka-yoke (electronic signaling device)

Tools & Methodologies

Process flow diagram, Check list, Control chart, Cause and effect diagram, Pareto analysis, FMEA. Deming Wheel. PDCA cycle.

Plan, Do, Check, Act. If it doesnt get measured, it doesnt improve. Against oneself(over time) versus against industry(snap shot).

Benchmarking.

Statistical Process Control (SPC). Six Sigma.

TQM

vs.

Six Sigma
Middle-down Comprehensive involvement Driven by problems DMAIC, DMADV Dedicated personnel Drastic improvement possible

Bottom-up Specific units involvement Driven by existing processes PDCA Voluntary, part-time Gradual improvements