Management of Quality

1. 9 Management of Quality Slides prepared by Laurel Donaldson Douglas College

2. Define the term quality, describe evolution of quality management, discuss dimensions and determinants of quality, describe various costs associated with quality, and discuss philosophies of quality gurus. Describe ISO 9001 and apply it. Describe HACCP and apply it. Describe and apply Canada Awards for Excellence and TQM. Give an overview of problem solving and process improvement, describe and use various quality tools. LO 1 LO 2 LO 3 LO 4 LO 5

3. Chapter Outline • Introduction • Evolution of Quality Management • Dimensions and Determinants of Quality • Costs of Quality • Quality Gurus • ISO 9001 • Hazard Analysis Critical Control Point • Canada Awards for Excellence • Total Quality Management • Problem Solving and Continuous Improvement • Six Sigma • Basic Quality Tools • Methods for Generating Ideas and Reaching Consensus

4. What is Quality? QUALITYis the ability of a product or service to consistently meet or exceed customer expectations • Quality control is monitoring, testing, and correcting quality problems after they occur. • Quality assurance is providing confidence in a products quality by preventing defects before they occur.

5. Evolution of Quality Management

6. Dimensions of Quality

7. Service Quality

8. Examples of Quality Dimensions

9. Examples of Quality Dimensions (Cont’d)

10. Determinants of Quality

11. Costs of Quality • Failure Costs - costs incurred by defective parts/products • Internal Failure Costs • Fixing problems during production • External Failure Costs • fixing problems after delivery to customer.

12. Costs of Quality (continued) Appraisal Costs • Inspection and testing Prevention Costs • Quality training, planning, customer assessment, creating standard operating procedures

13. The Quality Gurus • fitness-as-use • trilogy: planning, control & improvement • continuous improvement • cost of quality • 14 points • mgmt must fix system • reduce variation • SPC, PDSA • “total field” • quality at the source • zero defects • “Do it right the first time.” • Quality is free W. Edwards Deming Joseph M. Juran Armand Feigenbaum Philip B. Crosby 13

14. Quality Certification • ISO 9001 • Set of international standards on quality management and quality assurance, critical to international business • Standards Council of Canada • > 100 countries and 180 technical committees • Documentation and assessment process takes 12 – 18 months for certification • Re-register every 3 years

15. ISO 9001:2000 Elements

16. ISO 9001 Activities Source: www.iso.org/iso/iso_9000_selection_and_use-2009.pdf

17. Hazard Analysis Critical Control Point (HACCP) • A quality control system, similar to ISO 9001, designed for food processors • Deals with food safety (biological, chemical, and physical hazards) • Main steps: • Hazard Analysis • Determination of the Critical Control Points • Creation of the HACCP Plan

18. Canada Awards for Excellence (CAE) Administered by National Quality Institute (NQI) Source: http://www.nqi.ca/Certification/PEP/Overview.aspx

19. National Quality Institute (NQI) Source: http://www.nqi.ca/Certification/PEP/Overview.aspx

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

21. The TQM Approach

22. Comparing the cultures of TQM and traditional organizations

23. Basic Steps in Problem Solving

24. Plan Act Do Study The PDSA Cycle

25. Six Sigma • Statistically • Having no more than 3.4 defects per million • Conceptually • Program designed to reduce defects • Requires the use of certain tools and techniques Six sigma: A business process for improving quality, reducing costs, and increasing customer satisfaction.

26. Six Sigma Process 6 DMAIC

27. Basic Quality Tools

28. Basic Quality Tools

29. Monday • Billing Errors • Wrong Account • Wrong Amount • A/R Errors • Wrong Account • Wrong Amount Check Sheet

30. Number of defects Offcenter Smeared print Missing label Other Loose Pareto Analysis 80% of the problems may be attributed to 20% of the causes.

31. 1020 UCL 1010 1000 990 LCL 980 970 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Control Chart

32. Methods Materials Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Effect Environment People Equipment Cause-and-Effect Diagram

33. Diameter Time (Hours) Run Chart

34. Methods for Generating Ideas

35. Methods for Generating Ideas and Reaching Consensus • Brainstorming • Technique for generating a free flow of ideas in a group of people • Quality Circles • Groups of workers who meet to discuss ways of improving products or processes • Interviewing • Technique for identifying problems and collecting information • Benchmarking • Process of measuring performance against the best in the same or another industry • The 5W2H Approach • A method of asking questions about a process/problem that include what, why, where, who, how, and how much

36. Learning Checklist • Define the term quality. • Explain why quality is important and the consequences of poor quality. • Identify the determinants of quality. • Describe the costs associated with quality. • Describe the main ideas of the quality gurus. • Outline the key elements of ISO 9001 and HACCP • Describe the key ideas of TQM. • Give an overview of the problem solving process for quality improvement. • Describe the various quality tools. • Describe some methods for generating ideas regarding quality issues.