AMB7123

Quality Systems Management

Introduction to Quality
Chapter 1
 Content
• Defining Quality
• Historical Development of Quality Philosophy
• Major contributors of Quality & Quality Systems
• Quality Leaders & Roles of Senior Management
• Quality Frameworks
• Quality and Continuous process Improvement
What is a Quality ?
What is a Product Quality?

4
Defining Quality
• “A Customer’s impression of quality begins with the
initial contact with the company and continues
through the life of the product.”
• Customers look to the total package - sales, service
during the sale, packaging, deliver, and service after the
sale.
• Quality extends to how the receptionist answers the
phone, how managers treat subordinates, how
courteous sales and repair people are, and how the
product is serviced after the sale.
Defining Quality (cont.)
What do these terms mean?
• Quality
• Quality Systems
• Quality Management
Defining Quality (cont.)
What is Quality
• How good or bad something is.
• Degree of excellence - Webster’s Dictionary
• The totality of features and characteristics of a product
or service that bears on its ability to satisfy stated or
implied needs - American Society for Quality
• Fitness for use - Joseph Juran
• how well product or service does what it is supposed to
• Reliability & serviceability - how long a product lasts and
ease & speed of repairs
• Conformance to requirements - Philip B. Crosby.
Defining Quality (cont.)
What is Quality
• Modern definition
• Quality is “Delighting the customers by fully meeting their
needs and expectations”.
• These expectations may include performance, appearance,
availability, delivery, reliability, maintainability, cost
effectiveness and price
DTI, UK
Defining Quality (cont.)
What is Quality…
• All those features of a product/service that meet or
exceed customer expectations.

Two aspects of quality:

Features:
more features that meet customer needs = higher quality

Perfection (free from trouble):

fewer defects = higher quality
 Defining Quality (cont.)
Quality Perspective
Meaning
Meaningof
ofQuality
Quality

Producer’s
Producer’sPerspective
Perspective Consumer’s
Consumer’sPerspective
Perspective

Quality
Qualityof
of Conformance
Conformance Quality
Qualityof
ofDesign
Design

Production • Conformance to • Quality characteristics Marketing

Production Marketing
specifications • Price
• Cost

Fitness
Fitnessfor
for
Consumer
ConsumerUse Use
Defining Quality (cont.)
Quality System
• refers to activities a business uses to promote quality within
the organization.
• includes business activities, plans, policies, resources and
procedures used in producing quality goods and services.
• often called a quality management system (QMS).
• the management system used to direct and control an
organization with regard to quality.
Defining Quality (cont.)
Management
• Act, art, or manner of handling, controlling, directing etc
• The art of getting things done through people.
• A process that involves planning, organising, directing and
controlling people to accomplish a goal.
Quality management:
what an organization does to
• ensure that its products or services satisfy the customer's
quality requirements
• comply with any regulations applicable to those products
or services.
Defining Quality (cont.)
Quality management:
what an organization does to…..
• enhance customer satisfaction, and
• achieve continual improvement of its performance.
Quality management:
considered to have four main components.
• quality planning, quality control, quality assurance and
quality improvement
So, what is:
Quality Systems & Management ?
Defining Quality (cont.)
Costs of Quality
• Prevention costs - reducing the potential for defects
• Appraisal costs - evaluating products, parts, and services
• Internal failure - producing defective parts or service
before delivery
• External costs - defects discovered after delivery
 Defining Quality (cont.)
Importance of Quality
• Improvement of internal processes
• Increase productivity
• Company reputation
• Perception of new products
• Employment practices
• Supplier relations

• Product liability
• Reduce risk

• Global implications
• Expand market share - improved ability to compete
Defining Quality (cont.)
Importance of Quality…
Quality Chain Reaction
 Content
• Defining Quality
• Historical Development of Quality Philosophy
• Major contributors of Quality & Quality Systems
• Quality Leaders & Roles of Senior Management
• Quality Frameworks
• Quality and Continuous process Improvement
History of Quality Philosophy
Historical Development of Quality
Concepts Time Focus
Industrial Revolution Late 1700s Innovations using m/c power
Scientific Management Early 1900s assembly line & mass production
Management Science 1940s – 1960s Quantitative techniques
Computer 1960s Automation of processes
Just-in-time systems (JIT) 1980s Mass production with Minimal
inventory
Total Quality Mgmt 1980s Elimination of defects
Reengineering 1980s Process redesign to achieve higher
efficiency
Flexibility 1990s Customization on a mass scale
Electronic Commerce 2000s Business activities via internet
Outsourcing and 2000s Convergence of technologies
flattening of the world enables outsourcing of activities
Historical Development of
Quality (cont.)
The differences between old and new concepts of
Quality

Inspection
Quality Control
Quality Assurance
Quality Management
 Content
• Defining Quality
• Historical Development of Quality Philosophy
• Major contributors of Quality & Quality Systems
• Quality Leaders & Roles of Senior Management
• Quality Frameworks
• Quality and Continuous process Improvement
Quality Gurus
• Walter Shewart (1891 – 1967)
• In 1920s, developed control charts – PDCA cycle
• Introduced the term “quality assurance”
• W. Edwards Deming (1900 – 1993)
• Developed courses during World War II to teach statistical quality-
control techniques to engineers and executives of companies that
were military suppliers
• After the war, began teaching statistical quality control to Japanese
companies. Modified PDCA to PDSA.
• Developed “14 Points” for Management
• Quality is “uniformity & dependability”
• Joseph M. Juran (1904 – 2008)
• Followed Deming to Japan in 1954
• Focused on strategic quality planning
• Pareto Principle
• Quality is “fitness for use”
Quality Gurus (cont.)
 Armand V. Feigenbaum (1922 -1925 )
 In 1951, introduced concepts of Total Quality Control and
continuous quality improvement
 Philip Crosby (1926 – 2001)
 In 1979, emphasized that costs of poor quality far outweigh the cost
of preventing poor quality – coined “quality is free”
 In 1984, defined absolutes of quality management—conformance to
requirements, prevention, and “zero defects”
 Kaoru Ishikawa (1915 – 1989)
 Promoted use of quality circles
 Developed “fishbone” cause-and-effect diagram
 Emphasized importance of internal customer
 Genichi Taguchi (1924 – 2012)
 Focused on product design quality – applying statistics to improve
quality of manufactured goods.
 Developed Taguchi loss function.
 Quality Gurus (cont.)
Legacies:
Deming’s 14 points – A Framework for Q Mgmt
1 Create and publish Aims and Purposes of the Organization by demonstrating
commitment to this statement.
2 Learn the New Philosophy that prioritizes customer satisfaction. Focus on defect
prevention that involves everyone in the organization.
3 Understand that the purpose of inspection is to improve process and quality. Mass
inspection is costly so should be replaced with statistical techniques.
4 Do not award business to suppliers on the basis of price alone, but also consider
quality.
5 Improve constantly. Focus on continuous improvement.
6 Institute training. Employees should be trained to improve work performance and be
oriented to company’s commitment to continuous improvement.
7 Improve leadership and practice modern supervision methods with clear line of
communication from top management to supervisors to operators.
 Quality Gurus (cont.)
Legacies:
Deming’s 14 points…
8 Drive out Fear, create trust and the climate for innovation.
9 Optimise team effort. Break down the barriers between functional areas of the
business.
10 Eliminate targets, slogans, and goals for increased productivity, without providing
improvement methods and guidelines.
11 Eliminate numerical quotas and work standards that focus on quantity rather than
quality, and without knowing and guiding how to improve them.
12 Remove the barriers that rob pride of workmanship - discourage employees from
doing their jobs.
13 Encourage learning and self-improvement for everyone.
14 Take action to accomplish the transformation. Create a structure that is committed,
involved and accessible, in advocating the continuous improvement of the process.
 Quality Gurus (cont.)
Legacies:
Deming’s Seven Deadly Diseases of Management
1 Lack of constancy of purpose
2 Emphasis on short-term profits
3 Evaluation of performance, merit rating, and annual reviews
of performance
4 Mobility of top management
5 Running a company on visible figures alone
6 Excessive medical costs
7 Excessive legal damage awards
 Quality Gurus (cont.)
Legacies:
Improvement Model – Shewhart’s PDCA Cycle

 Plan-Do-Check-Act (PDCA)
cycle or Plan-Do-Study-Act
(PDSA) cycle
 Iterative process

 May require several cycles to

solve complex problems
 Quality Gurus (cont.)
Legacies:
Juran Triology
• Juran took a more strategic approach to quality management
and improvement than Deming.
• Juran Triology:
• Planning
• Identify customer needs
• Design and develop products/services and processes
• Plan for quality improvement on a regular basis
• Control
• Ensure that products and services meet requirements
• Improvement
• Aims to achieve performance and quality levels that are higher
than current levels.
 Quality Gurus (cont.)
Legacies:
Feigenbaum’s Total Quality Control
• Feigenbaum first introduced the concept of company-wide quality control
in his book Total Quality Control (1951)
• He proposed a three-step approach to improving quality:
• Quality leadership,
• Quality technology, and
• Organizational commitment.
• He proposed a 19-step improvement process, of which use of statistical
methods was step 17.
• He initially suggested that much of the technical capability be concentrated
in a specialized department which is in contrast to the modern view.
• Feigenbaum is concerned with organizational structure and a systems
approach to improving quality which is important.
 Quality Gurus (cont.)
Legacies:
Taguchi’s Quadratic Loss Function
• Genichi Taguchi
• He believed that unwanted
variability was a leading cause
of poor quality.
• He argued that any deviation from the ideal or target
value for a quality characteristic resulted in a loss, not
just to the customer and the business, but to society.
• the losses begin to occur as soon as the quality
characteristic deviates from the target.
 Content
• Defining Quality
• Historical Development of Quality Philosophy
• Major contributors of Quality & Quality Systems
• Quality Leaders & Roles of Senior Management
• Quality Frameworks
• Quality and Continuous process Improvement
Roles of Senior Management
Leadership
The right LEADERSHIP is critical to building and
sustaining a Quality initiative.

As Joseph M. Juran said in 1945, “It is most

important that top management be quality-
minded. In the absence of sincere manifestation
of interest at the top, little will happen below”.*

A large percentage of quality problems are

associated with management, not technical
issues.
).
Roles of Senior Management
(cont.)
Leadership…
• The ability to positively influence people and systems to
have a meaningful impact and achieve results.
• Leaders - as internal change agents of
Quality in an organisation.
• reshape organisational values.
• establish managerial structure
to bring about change.
• Provide top-down support.
• be prepared with the commitment
and knowledge required to change
Roles of Senior Management
(cont.)
Leadership…
• Recognition that the Quality is the responsibility of
everyone in the organization
• Commitment to quality becomes part of the corporation’s
business strategy and leads to enhanced profit and an
improved competitive position
Roles of Senior Management
(cont.)
Leadership System
• Refers to how decisions are made, communicated, and
carried out at all levels; mechanisms for leadership
development, self-examination, and improvement
• Effectiveness of leadership system depends in part on its
organizational structure
 Roles of Senior Management
(cont.)
Leadership Characteristics
Leadership is essential during every phase of the implementation process of
quality initiative, particularly at the start!!!!!
1. Give priority attention to external and internal customers and their
needs
2. Empower, rather than control, subordinates
3. Emphasize improvement rather than maintenance
4. Emphasize prevention
5. Encourage collaboration rather than competition
Roles of Senior Management
(cont.)
Leadership Characteristics…
6. Train and coach, rather than direct and supervise
7. Learn from problem
8. Improve communications
9. Demonstrate their commitment to quality
10. Choose suppliers on the basis of quality, not price
11. Establish organizational systems to support the quality
effort
12. Encourage and recognize team effort
 Roles of Senior Management
(cont.)
Leadership
Senior Management, especially the CEO, can provide
the leadership system to achieve results.
 Set direction and serves as role model
 Support and create leaders at every level.
 Lead and actively participate in quality initiative
 Provide senior managers with skills in quality techniques.
 Compel senior managers to go “out”, visit customers,
suppliers, project and obtain first hand information.
 Delegate authority & responsibility.
 Ensure team’s decision at every level is aligned to Quality
Statement of the company
Roles of Senior Management
Responsibility
Planning, directing, monitoring, assuring..
Organizational Practices
Leadership, Mission statement, Effective operating
procedures, Staff support, Training
Yields: What is important and what is to be accomplished

Quality Principles
Customer focus, Continuous improvement, Benchmarking,
Just-in-time, Quality Tools
Yields: How to do what is important and to be accomplished

Employee Fulfilment
Empowerment, Organizational commitment
Yields: Employee attitudes that can accomplish
what is important
 Content
• Defining Quality
• Historical Development of Quality Philosophy
• Major contributors of Quality & Quality Systems
• Quality Leaders & Roles of Senior Management
• Quality Frameworks
• Quality and Continuous process Improvement
Quality Framework
A framework that an organisation adopts to drive continuous
improvement and consistency of quality in its products/services.
• Describes the Quality Policy put in place at the Organisation.
• Describes the interaction and roles of all aspects and staff required to
achieve quality.
• Identifies the desired outcomes of the Quality Framework.
• Identifies/describes each person’s responsibility for ensuring Quality.
• Supports the Organisation’s Strategic Plans and Objectives.
• Ensures low risk due to the planned monitoring, maintenance and
improvement of the Quality Framework, and
• Promotes the application of Policies, Procedures, Guidelines and Manuals.
Quality Framework (cont.)
A Quality Framework may contain:
• Background information, including an analysis, the vision and common
values of the Quality partnership.
• Quality principles and areas of action for improvement, inspired by
existing Quality Standards, models and initiatives.
• Recommendations for implementation of quality development, control
and tools.
• A methodology that explains how to implement the quality principles
and areas of action by developing a participatory approach in a quality
improvement process.
• A list of best practices model.
Quality Framework (cont.)
Strategic Management
• A critical part of the strategic management of quality is the recognition of
the following dimensions by the Management
• Quality Control and Improvement
• Relationship between Quality and productivity
• Cost of Quality.
• It is not necessary for the product to be superior in all dimensions of
quality, but Management must select and develop the “niches” of quality
along which the company can successfully compete.
• Supplier selection and supply chain management may be the most critical
aspects of successful quality management in industries such as
automotive, aerospace, and electronics, where a very high percentage of
the parts in the end item are manufactured by outside suppliers.
Quality Framework (cont.)
Implementing Quality Improvement
• Strategic management of quality in an organization
involves the three components discussed earlier: quality
planning, quality assurance, and quality control
• All of the individuals in the organization must have an
understanding of the basic tools of quality improvement.
• The key point is the philosophy, esp. in statistical
methodology, is a language of communication about
problems that enables management to mobilize
resources rapidly and to efficiently develop solutions to
such problems.
Quality Framework (cont.)
Characteristics of a “Lean Organisation”:
Must have successfully implemented the followings:
• Identification & elimination of waste (non value-added)
• Workplace organisation (5S)
• Sort, Straighten, Shine, Standardise, Sustain (and
sometime Safety)
• Tasks & activities ⇨ “continuous process flow”
• Focus on “process” .
• Use of flexible equipment for quick changeover.
• Change initiative based on selected Q standards.
 Quality Framework (cont.)
Characteristics of a “Lean Organisation”:
In addition to implementing the philosophy and standards of
one or more of the followings:
• Total Quality Management (TQM)
• An integrated effort designed to improve quality performance at every level of
the organisation
• ISO 9000 (fundamentals & standards), ISO 9001 (requirements), ISO 9004
(guidelines for performance)
..
Continuous Process Improvement
The Goal is to achieve perfection:
• View work as a process.
• Make all processes effective, efficient, and adaptable.
• Anticipate changing customer needs.
• Control in-process performance using measures such as
scrap reduction…
• Maintain constructive dissatisfaction with the present
level of performance.
Continuous Process Improvement
Input/output process model
FEEDBACK

PROCESS OUTPUT
INPUT People Information
Materials Equipment Data OUTCOMES
Money Method Product
Procedures
Information Environment Service, etc.
Data, etc Materials

CONDITIONS
Continuous Process Improvement
Problem-Solving Method
1. Identify the opportunity
2. Analyze the current process
3. Develop the optimal solution(s)
4. Implement changes
5. Study the results
6. Standardize the solution
7. Plan for the future
Continuous Process Improvement
Continuous Process Improvement Cycle
Phase 1
Identify opportunity

Phase 7 Phase 2
Plan for the future Analyse the process

Act Plan

Phase 6 Phase 3
Standardise the solutions Dev. optimal solutions

Study Do

Phase 5 Phase 4
Study the results Implement
Continuous Process Improvement
Problem-Solving Method – Phase I
1. Identify the opportunity
Identify and prioritize opportunities for improvement
i. Is the problem important and not superficial and
why?
ii. Will the problem solution contribute to the
attainment of goals?
iii. Can be problem be defined clearly using numbers?
Continuous Process Improvement
Problem-Solving Method – Phase I…
2. Form a team
Select the team leader and determine goals and deadlines
3. Define the Scope
Develop a good problem statement that states the facts,
focuses on what is known and emphasizes the impact on
the customer.
Continuous Process Improvement
Problem-Solving Method – Phase I…
4. Develop a comprehensive charter that specifies
Select the team leader and determine goals and deadlines
i. Authority
ii. Objective and scope
iii. Composition
iv. Direction and control
v. General
Continuous Process Improvement
Problem-Solving Method – Phase II
• Analyze the current process
i. Develop a process flow
ii. Define the target performance measures
iii. Collect all available data and information
iv. Determine the root cause
Continuous Process Improvement
Problem-Solving Method – Phase III
• Develop the optimal solution
i. Determine possible solutions
ii. Judge possible solutions for greatest potential for
success
iii. Categorize solutions as short range or long range
Continuous Process Improvement
Problem-Solving Method – Phase IV
• Implement Changes
i. Prepare the implementation plan
ii. Obtain approval for the plan
iii. Develop implementation plan report
Continuous Process Improvement
(cont.)
Problem-Solving Method – Phase V
• Study the results
i. Take measurements
ii. Evaluate results
iii. Identify unforeseen problems as a result of the
changes
Continuous Process Improvement
Problem-Solving Method – Phase VI
• Standardize the Solution
i. Institutionalise the change
ii. Certify the quality peripherals
iii. Certify operators
iv. Cross-training
Continuous Process Improvement
Problem-Solving Method – Phase VII
• Plan for the Future
i. Conduct regular scheduled reviews
ii. Establish systems to identify areas for future
improvement
iii. Incorporate process measurement and team problem
solving in all work activities
iv. Reduce complexity, variation and out-of-control
processes