CHAPTER
9 QUALITY=
MANAGEMENT
QUALITY IS: FITNESS FOR INTENDED USE.
Design Quality=
—better
mousetrap than anyone else offers!
Consistent Qua=
lity—always =
the
same good quality, always!
Producer
defined: conformance to
specifications.
Consumer
defined: value and fitn=
ess
for use.
DIMENSIONS
OF QUALITY:
. performance =
.durability
. features =
. aesthetic
appeal
. reliability
. perceived
quality
. serviceabilit=
y
.conformance to specifications
SIX SIGMA QUALITY (hot topic today)
Philosophies
and methods that help companies eliminate defects in their products and
processes. Defect does not meet customer’s specification limits. KEY is to eliminate variation and produce 6
sigma quality—produce no more than 2 defec=
ts per
billion (almost never a defect). DPMA-defects per milli=
on
opportunities. Six sigma capability means=
that
if a process is operating within one std. dev. (sigma) of the mean. That is a tight distributi=
on,
because creation of a superior process / processes allo=
w
only a very small amount of variation! Uses Define Measure Analyze Improve Control
methodology, similar to Deming’s PDCA cycle, wherein you Define, Meas=
ure,
Analyze, Improve, and Control to bring about quality improvements and near
perfect quality.
WHY
IS QUALITY IMPORTANT?
.
key element of competitive strategy
.
product liability
.
affects a country's economy
*balance of trade
*growth of GNP
*level of employment
*standard of living
QUALITY
IS IMPORTANT TO THE COUNTRY, TO THE COMPANY AND TO THE INDIVIDUAL.
QUALITY
AND COMPETITIVE ADVANTAGE
Market Implications
*design quality
*consistent quality
QUALITY INFLUENCES REVENUES (influences
customers’ willingness to buy a company’s &n=
bsp; products
and keep buying them over time.
QUALITY INFLUENCES COSTS
Anything that can influence revenues and
costs can have a powerful impact on profits.
1. cost
of prevention: costs for quality planning, process control, and quality
training and workforce development.
2. costs
of appraisal: inspection of purchased items; inspection before, during,=
and
after production; maintenance and calibration of test and testing equipment=
.
3. cost
of internal failure: scrap, rework, lost profit for selling as 2nds, 3r=
ds,
etc.
4. cost
of external failure: warr=
anty
work, customer service, product liability, product recalls, and intangibles
(loss of good reputation).
1
AND 2 ARE THE COSTS TO CONTROL QUALITY.
3
AND 4 ARE THE COSTS OF OUT OF CONTROL QUALITY.
MORE
OF 1 AND 2 CAN PREVENT 3 AND 4, THEREBY REDUCING COSTS AND INCREASING PROFI=
TS.
(NOT TO MENTION THAT IT CAN MAKE THE PRODUCT MORE DESIRABLE TO CONSUMERS).<=
span
style=3D'mso-spacerun:yes'> According to Crosby in his book
“Quality is Free,” emphasis on 1 (prevention) can reduce all the
others over time, and that in the long run quality if “free.”
PREVENTING
QUALITY PROBLEMS
Organizational Issues
Quality Assurance Groups--
Cross functional teams that work to
discover and solve quality related problems.
Quality Assura=
nce--approach to =
making
sure things are done right the first time and every time. PEOPLE ARE THE KEY!
Marketing Interface--it is market=
ing's
responsibility to know about customer needs, set realistic expectations, wo=
rk
with production and other functional areas to make products successful.
Employee Considerations
Many specializations, but quality is the
responsibility of every employee.
PEOPLE MAKE THE DIFFERENCE!
Individual development--education and
training is critical to the firm’s ability to produce good quality.
Monetary incentives--reward for
quality, not just increased output.
Organizational devices like Quality Circ=
les--an organizat=
ional
device (preferably cross functional) that focuses its efforts on finding and
eliminating quality problems and looking for opportunities to improve
quality.
Product and Process Design Implications<=
/span>
Product Design--frequent cha=
nges
can increase the defect rate, but what if you must change frequently to meet
competitive demands of the market?
Process Design--The process(=
s) are
where inputs are transformed to outputs. YOU MUST CONTROL THE PROCESS TO PRODUCE GOOD QUALITY
OUTPUTS--PROCESS CONTROL.
Linking Product Design and Process Desig=
n is
critical given that process design has a profound impact on product quality=
. Use Quality
Function Deployment (house of quality), concurrent engineering (product and
process design coordinated and proceed in parallel), design for manufacture=
!
Pareto Analysis and Fishbone charts can =
be
helpful when there is a problem!
Purchasing Considerations
YOU MUST USE GOOD INPUTS TO PRODUCE GOOD
OUTPUTS.
Current Trend--use a few go=
od
suppliers and work closely with them as partners to ensure high quality
inputs. (EX: Partners for Profits Program/ Mill=
iken
& Co.). Supply Chain
Management is very important.
Supplier Certificati=
on (ISO Certifica=
tion
is a BIG DEAL! It is not a certification of a quality
level, but rather a certification that the company is doing the things that=
are
known to lead to good quality.)
PRESCRIPTIONS
FOR EXCELLENCE IN QUALITY
*
note
that most in some way or another emphasize the importance of people in
achieving quality improvements.
Deming--Management has the primary
responsibility to take the necessary actions to create an atmosphere that is
conducive to superior quality.
(see Demming's 14 points)
=
Planning--define a=
cceptable
quality and reliability levels and link product and process design to achie=
ve
desired quality levels.
=
Control--institute sy=
stems
to control quality (force actions to conform to plans--a 4 step process).
=
Improvement--strive f=
or
continuous improvement (set goals and work to achieve them).
Ishikawa (Total Company Involvement)--producing go=
od
quality requires total commitment of all involved. Contributed Fi=
shbone
charts and Quality Circles.
Crosby (Quality Is Free)--presented ar=
gument
that any level of quality costs about the same. He believed that it costs less to
produce superior quality--advocated goal of ZERO DEFECTS.
Taguchi (quality engineering)= emphasis on developing high-quality products in a way that reduces costs. Uses experimen= ts and statistical tools and techniques to determine best way to process inputs in= to outputs. Emphasis on t= hings like machine settings, processing times, input characteristics and so on. <= o:p>
=
Shingo
(fail-safe design) Known
for Single Minute Exchange of Die procedures (quick setup enables small
production runs and mixed model assembly, keeping WIP low, etc.). Emphasized prevention of defects by
designing a system where errors don’t become defects. Inspect by successive checks,
self-checks and source inspection (check for errors that will cause defects=
).
All three use Fail Safe Procedures called