Video Presentation Example

What Does Quality Mean? - Rejected material, supplied by vendor

Quality can mean different things to different function within the company. - Rejected pieces of sub-assemblies
Safety Department - Rejected products at final inspection
Quality is no incidents & no injuries. Everyone must be safe - Scrap on account of poor workmanship
everyday. - Overtime due to non-conforming products
Production Department 2. External Cost
Quality is meeting production target on time. Cost of failure of the product after its delivery to the
Quality Department customers.
Quality is conformance to specifications. Example
Sales Department - Warranty Cost
Quality is, there is a demand for the product. - Free replacement given due to failure of items supplied
Finance Department - Cost of production returned
Quality is all for the previous items at lower cost. - Cost incurred to travel to customers site repair
Quality is not an act but a habit - Cost of customer complaint administration.
- Aristotle - Cost customer follow up and field service department
Quality means doing it right when no one else is looking. Total Quality Management
- Henry Ford - A comprehensive, organization-wide effort to improve the
The cardinal quality rule quality of products or services, applicable to all organizations.
- Customer based organization - A philosophy that involves everyone in an organization to
- Understand your internal and external customer needs and improve quality and achieve customer satisfaction.
strive to exceed them. 7 Concepts of TQM
Quality Cost 1. Continuous improvement - improvement that can be carried out
Tool to demonstrate cost of poor quality management as well as the include people, equipment, materials & procedures.
entire organization. Model of continuous improvement (PDCA)
Cost of Quality Plan - identify the improvement and make a plan
- Prevention Cost Do - test the plan
o The planned cost incurred by an organization to ensure that Check - determine if the plan is working
no defects occurred in any of the stages such as design, Act - implement the plan
development, production and delivery of product or service. 2. Six sigma - measure of quality that strives for near perfection.
- Appraisal Cost - It is a program to save time, improve quality & reduce cost.
o Incurred in verifying, checking or evaluating a product or - A program designed to reduce defects in helping to lower
service at various stage during manufacturing or delivery. cost, save time & improve customer’s satisfaction.
- Failure Cost Six sigma sub-methodology
o Incurred failure or the organization to control defects in the DMAIC
product. - Define the project goals
Classification of Failure Cost - Measure the process to determine current performance
1. Internal Failure Cost - Analyze & determine the root cause of defects
Includes cost of every failure that takes place before the - Improve the process by eliminating the defects
product is delivered to the customers. - Control future process performance
DMADV
- Define the project goals
- Measure & determine customers need & specifications
- Analyze the process options to meet the customer needs
- Design the process
- Verify the design performance
3. Employee empowerment – getting the employees involved in
product and process improvements.
4. Benchmarking – selecting best practices to use as a standard for
performance.
5. Just in time – full system of production scheduling (includes supply
management)
- Allow reduce inventory levels
6. Taguchi concepts
7. Knowledge of TQM tools
a. Check sheet - an organized method of recording data
b. Scatter diagram – a graph of the value of on variable vs.
another variable
c. Cause and effect diagram – a tool that identifies process
elements that might affect an outcome
d. Pareto charts – a graph to identify & plot problems or
defects in descending order of frequency
e. Flow chart – a chart that describes the steps in a process
f. Histogram – a distribution showing the frequency of
occurrence of a variable
g. Control chart – a chart with time on the horizontal axis
to plot values of a statistic
Quality – refers to the ability of a product or service to consistently meet
or exceed customer expectations. Quality means getting what you pay
for.
Dimensions of Quality
Performance – the main characteristic of the product or service
Special features – extra characteristics
Conformance – how well a product or service corresponds to the
customer’s expectations.
Reliability – consistency of performance
Durability – the useful life of the product or service
Perceived quality – indirect evaluation of the quality
Service after sale – handling of complaints or checking on customer
satisfaction
Determinants of Quality
The degree to which a product or a service successfully satisfies its
intended purpose has four primary determinants:
1. Design
2. How well it conforms to the design
3. Ease of use
4. Service after delivery
Quality of design – refers to the intention of designers to include or exclude
certain features in a product or service.
Focus group – group of consumers who express their opinions of a product
or service.
Quality of conformance – refers to the degree to which goods and services
conform to the intent of the designers.
The consequences of poor quality
1. Loss of business
2. Liability
3. Productivity
4. Costs
Modern Quality Management
Modern quality management is now evolving toward emphasis on
preventing mistakes rather than on finding and correcting them. Moreover,
quality is no longer the exclusive domain of the quality control department,
but has become the responsibility of everybody in the organization.
Suppliers are treated less as adversaries and more as partners. In this more
enlightened approach, price is one of several considerations that are taken
into account when dealing with suppliers.
Quality Gurus 3. Quality-related decisions may not be tied to market performance.
4. Failure to carefully plan a program before embarking on it can lead
Contributor Known for to false starts, employee confusion, and meaningless results.
W. Edwards Deming 14 points, special and common causes of
variation
Joseph Juran Quality as fitness-for-use quality trilogy
Philip B. Crosby Quality is free; zero defects
Karuo Ishikawa Cause-and-effect diagrams, Quality principles

Total Quality Management

TQM approach can be described as follows:
1. Find out what customer want.
2. Design a product or service that will meet (or exceed) what
customer want.
3. Design a production process that facilitates doing the job right the
first time.
4. Keep track of results, and use those to guide improvement in the
system.
5. Extend these concepts to suppliers and to distribution.

Other elements of TQM that are important:

1. Continual improvement
2. Competitive benchmarking
3. Employee empowerment
4. Team approach
5. Knowledge of tools

Quality at the source – refers to the philosophy of making each worker

responsible for the quality of his or her work.
Quality function deployment – the process of involving customers in the
design stage of new registered products.

TQM programs are not without criticism. Some of the major ones are:
1. Blind pursuit of TQM programs: Overzealous advocates may focus
attention even though other priorities may be more important (e.g.,
responding quickly to a competitor’s advances)
2. Programs may not be linked to the strategies of the organization in
a meaningful way.