Quality Concept Lesson 1

Statistical Quality Improvement SQQS 3063

SQQS3063- Chapter 11Statistical Quality ImprovementSQQS 3063Mohamad Shukri Abdul HamidSchool of Quantitative SciencesUniversiti Utara MalaysiaRoom [email protected] hours:Sunday & Wednesday: 10.00 11.59 AM

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SQQS3063- Chapter 12

What can you tell?

2While waiting for others, Ask participant to interpret the picture. Write this down on flipchart.What can u tell about the Mak Cik?

SQQS3063- Chapter 13Course Outline1.0 Introduction:(W1-3)1.1 Quality concepts1.2 Total Quality Management (TQM) and ISO 1.3 Managing Six Sigma1.4 Quality Function Deployment (QFD)1.5 The 7 basic QC tools

2.0 Probability and Sampling Distribution:(W4)2.1 Concept of probability and sampling distribution.2.2. Discreet probability distribution (Binomial and Poisson distribution)2.3. Continuous probability distribution (Normal distribution)2.4. Sampling distribution

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SQQS3063- Chapter 14Course Outline

3.0 Control Chart and Capability Analysis:(W5-8)3.1 Theories and concepts of control charts3.2 Control charts for variables 3.3 Continue control charts for variables3.4 Control charts for attributes3.5 Analysis of patterns on control charts

4.0 Stabilizing and Improving a Process with Control Charts:(W8-9)4.1 Stabilizing a Process with Control Charts4.2. Improving a Process with Control Charts.4.3. Some out-of-control evidence.

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SQQS3063- Chapter 15Course Outline

5.0 Process and Measurement System Capability Analysis:(W10)5.1 Introduction to process capability5.2 Process Capability measurement.

6.0 Acceptance Sampling: (W11-14)6.1 Acceptance sampling theories6.2 Single sampling plan for attribute6.3 Double and multiple sampling plans.6.4 Sequential sampling plans.6.5. Military Standard 105E (MIL-STD 105E) sampling plan and its applications6.6 The Dodge-Romig sampling plans

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SQQS3063- Chapter 161.1 QUALITY CONCEPTS1.2 TQM AND ISO1.3 MANAGING SIX SIGMA1.4 QUALITY FUNCTION DEPLOYMENT (QFD)1.5 THE 7 BASIC QC TOOLS

Chapter 1Introduction

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SQQS3063- Chapter 17Learning Outcomes: W1Describe different perspectives on qualityList and describe the concepts of TQM and ISO.

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SQQS3063- Chapter 181.1Quality Concepts1.1 Quality ConceptWhat is Quality?Is there a single definition?Is it context-based?Many concepts?Define in your own words.

The meaning of excellence itself In physics, the range of frequencies over which something will characteristically respond. The first meaning is technical, the second philosophical, the third practical, and the fourth metaphysical. The last two meanings are those most commonly used. Therefore, whereas the first two meanings admit that Quality can be positive, negative or neutral, the overwhelming association is that Quality is something to be desired.Philosophy and common sense tend to see quality as related either to subjective feelings or to objective facts. The subject-object in question might be a concrete and functional (e.g. Aristotelian) value to be learnt and applied (a and b), or a psychic (e.g. platonic) ideal to be apprehended and represented (c). A third view tends to see quality not as a secondary value that something has, rather a primary truth which comprises apparent subjects and objects (d).So the quality of something depends on the criteria being applied to it. Something might be good because it is useful, because it is beautiful, or simply because it exists. Determining or finding quality therefore involves an understanding of use, beauty and existence - what is useful, what is beautiful and what exists.

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QUALITYQuality is what customer wants. It is the customers perception about the degree to which the product or service meets his/her expectations. Therefore, quality is defined by customer needs and expectation. Like beauty, quality lies in the eyes of the beholder.9SQQS3063- Chapter 1

QUALITY CONCEPTSQUALITY isPerceived differently by different people. In manufacturing rated as e.g. fit, finish, appearance, function, and performanceIn servicing rated as degree of satisfaction by the customer receiving the serviceDictionaries defined as degree of superiority or excellence10SQQS3063- Chapter 1

A study that asked managers of 86 firms in the eastern United States to define quality produced several dozen different responses including:Perfection Consistency Eliminating wastes Speed of delivery Compliance with policies and procedures Providing a good, usable product Doing it right the first time Delighting or pleasing customers Total customer service and satisfaction

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The American National Standard Institutes and the American Society for Quality define the QUALITY as the totality of the features and characteristics of a product that bears on its ability to satisfy the stated or implied needs.12SQQS3063- Chapter 1

The main reason to pursue the quality is to satisfy the customers i.e. to ensure that they will be satisfied to pay for the products or services.should result in a reasonable profit for the producer or the service provider.


quality would be an essential requirement for survival (Arora KC, 1998). To beat the competition, organizations often must exceed customer satisfactions. Thus one of the most popular definitions of quality is meeting or exceeding customer expectation (Evans, 2008). The argument is that peoples perceptions of quality and what exactly it is will depend upon their preferences and interpretations (Basu, 2004).


Quality is meeting or exceeding customer expectation !!!!

SQQS3063- Chapter 115

SQQS3063- Chapter 116Definition of Quality1.1 Quality Concept

"Degree to which a set of inherent characteristic fulfills requirements" as ISO 9000

"Fitness for use" (Joseph M. Juran). Fitness is defined by the customer.

"Conformance to requirements" (Philip B. Crosby in the 1980s). The difficulty with this is that the requirements may not fully represent what the customer wants; Crosby treats this as a separate problem.

(W. Edwards Deming), "Costs go down and productivity goes up, as improvement of quality is accomplished by better management of design, engineering, testing and by improvement of processes. Better quality at lower price has a chance to capture a market. Cutting costs without improvement of quality is futile." "Quality and the Required Style of Management" 1988 See http://www.deming.org/

Modern definition includes Quality is inversely proportional to variability and that Quality improvement is the reduction of variability

16"Value to some person" (Gerald M. Weinberg)"The loss a product imposes on society after it is shipped" (Genichi Taguchi). Taguchi's definition of quality is based on a more comprehensive view of the production system. Energy quality, associated with both the energy engineering of industrial systems and the qualitative differences in the trophic levels of an ecosystem. One key distinction to make is there are two common applications of the term Quality as form of activity or function within a business. One is Quality Assurance which is the "prevention of defects", such as the deployment of a Quality Management System and preventative activities like FMEA. The other is Quality Control which is the "detection of defects", most commonly associated with testing which takes place within a Quality Management System typically referred to as Verification and Validation. However, the American Society for Quality defines "quality" as "a subjective term for which each person has his or her own definition.In technical usage, quality can have two meanings: 1. the characteristics of a product or service that bear on its ability to satisfy stated or implied needs. 2. a product or service free of deficiencies. " Source: http://www.asq.org/glossary/q.htmlThe quality of a product or service refers to the perception of the degree to which the product or service meets the customer's expectations. Quality has no specific meaning unless related to a specific function and/or object. Quality is a perceptual, conditional and somewhat subjective attribute.A two-dimensional model of quality (Noriaki Kano and others). The quality has two dimensions: "must-be quality" and "attractive quality". "Products and services that meet or exceed customers' expectations".

SQQS3063- Chapter 117Dimensions of Quality Garvin (1987) states 8 components:Performance how well will the product do the intended job?Reliability how often will it fail?Durability how long will it last?Serviceability how easy is it to repair it?Aesthetics what does it look like?Features what else can it do?Perceived Quality what is the market ranking of the product or company?Conformance to Standards is it made exactly per its design?

Use example of car vs PCjokes about Microsoft and GM.17

SQQS3063- Chapter 118Service Quality DimensionsParasuraman, Zeitamel and Berry state 5 dimensions:TANGIBLES - physical appearance of service facility (e.g. equipment, personnel) RELIABILITY ability of service provider to perform the promised service dependably and accurately RESPONSIVENESS - willingness to be helpful and prompt in providing service ASSURANCE knowledge, courtesy of personnel and their ability to inspire trust and confidence.EMPATHY caring, individual attention, understanding the customers needs.

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Application of some quality conceptsProduct design, development and research Purchasing, Contract review Manufacturing engineering process, Just In time, Production Inspection and Measurement testing Sales and Marketing, After sales service Service sector Personal life Maintenance, terotechnology Human Resource Management Handling, storage, packaging and delivery


The importance of QUALITYQuality certain benefits. The benefits can be external and the internal benefits


InternalImprove cost effectivenessBetter control in the processReduction of wastagesImproved productivityBetter relations, employees job satisfaction, employees participationIncreased customer retentionStandardization of work routineIncrease sales and market shareImproved competitivenessBetter profitability21SQQS3063- Chapter 1

ExternalCustomers get the correct product and servicesCorrect specificationAppropriate intangiblesCustomer satisfactionCustomer retention.22SQQS3063- Chapter 1

HISTORY OF QUALITY

The issue of Quality of goods and services is not new. Throughout history say 1700 B.C, King Hammurabi of Babylon introduced the concept of product quality and liability into the building industry declaring if the building falls into pieces and the owner is killed, then the builder shall also be put to death. If the owners children die, then the builders children also die.


During middle ages.quality was to a large extent controlled by the long periods of training required by the unions. The training instilled pride in workers for quality of a product. Before industrial revolution manufacture was essentially conducted by the cottage industry approach and relied heavily on craftsmen. The craftsmen trained apprentices to ensure the quality and standard of work.24SQQS3063- Chapter 1

During Industrial Revolution.the concept of specialization of labor was introduced.As a result, a worker no longer made the entire product, only a portion. This change brought about the decline in the workmanship. The craftsmen became the inspectors and standards emerged. Because most products manufactured during that period were not complicated, quality was not greatly affected.As products become more complicated and jobs more specialized it became necessary to inspects products after manufacture. The industries rely on the use of inspectors to ensure the quality of the product leaving the factory.25SQQS3063- Chapter 1

Early 20th Century..The beginning of the 20th century marked the inclusion of processes in quality practices. A process is defined as a group of activities that takes an input, adds value to it and provides an output, such as when a chef transforms a pile of ingredients into a meal.Manufacturers began to include quality processes in quality practices. In 1924, W.A. Shewhart of Bell Telephone Laboratories developed a statistical chart for the control of product variables. This chart is considered to be the beginning of statistical quality control.26SQQS3063- Chapter 1

In 1950, W Edwards Deming, who learned statistical quality control from Shewhart gave a series of lectures on statistical methods to Japanese engineers and on quality responsibility to the CEO s of the largest organizations in Japan later become the national folk hero in Japan as he was influential in the spectacular rise of Japanese industry after World War II.27SQQS3063- Chapter 1

Joseph M Juran made his first trip to Japan in 1954 and further emphasized managements responsibility to achieve the quality. Using these concepts the Japanese set the quality standards for the rest of world to follow. In 1960, the first quality circles were formed for the purpose of quality improvement. Simple statistical techniques were learned and applied by Japanese workers. As a result, the Japanese became leaders in quality by the 1970s


Today.Most products and services must adhere to the minimum quality standards established by the International Organization for Standardization (ISO). Since 1987, ISO 9000 standards have served as the basis of quality management structures used around the world and have regulated international trade and production. The ISO has broadened its formal concepts of quality in recent years by developing advanced standards for environmentally and ethically sound production.29SQQS3063- Chapter 1

Several individuals made significant contributions to quality control and improvement:W. Edwards Deming is perhaps the best-known quality expert in the world. He wasinstrumental in the post-war industrial revival of Japan. Subsequently his ideas were increasingly adopted in industry in the United States and other countries. Degree in Electrical Engineering and PhD in Mathematical Physics.Deming firmly believed that quality is the responsibility of the management.30SQQS3063- Chapter 1

SQQS3063- Chapter 131Demings 14 points1. Create constancy of purpose for continual improvement.2.Adopt the new philosophy.3.Eliminate mass inspection as a way to achieve quality.4.End the practice of awarding business solely on the basis of price.5.Improve constantly and forever the system.6.Institute modern methods of training for everyone.7.Adopt and institute leadership aimed at helping people to do a better job.

Source: Henry R. Neave. 1990, The Deming Dimension, SPC PressAllocate resources for long range needs, strong mgt commit.Transformation of Western Mgt style into Japanese way.Build quality into product right 1st time. Avoid NVA inspection.Ensure quality inputs, positive long running relationship with suppliers.Improve all aspects, planning, production, services. Nip them in the bud!Training is key, adding value to org.Emphasize on quality, not just numbers! Create positive climate, workers wanna do well.

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SQQS3063- Chapter 132Demings 14 points8.Encourage effective 2-way communication and other means to drive out fear.9.Break down barriers between depts and staff areas.10.Eliminate the use of slogans, posters and exhortations.11.Eliminate arbitrary numerical targets substitute aid and helpful leadership.12.Enable pride of workmanship.13.Encourage education and self-improvement.14.Top managements commitment and action to improve quality and productivity.Source: Henry R. Neave. 1990, The Deming Dimension, SPC Press.

Source: Henry R. Neave. 1990, The Deming Dimension, SPC Press8. True cooperation, mutual trust, respect, confidence. If fear, mistakes, errors hidden, sweep under carpet9. Cross-functional teams, e.g. purchasing, design, sales.10. Wrong to expect quality outputs if workforce not given the right resources to achieve it. Demoralizing.11. Targets may be manipulated or workers might cut corners just to achieve.12. Pride and joy of doing the job.13. Good workers need to get better to manage changes.14. Top Mgt to drive the whole org.

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Joseph M. Juran is the founder of the Juran Institute, which offers consulting and management training in quality. Obtained degree in Electrical Engineering.He defined quality as fitness for use. Juran proposed the quality trilogy: quality planning, quality control, and quality improvement to develop a universal thought process for quality.Juran conceptualized the Pareto principle, which helps in identifying the vital few out of the trivial many. This is commonly referred to as the 8020 principle 80% of the problems are created by 20% of the causes33SQQS3063- Chapter 1

SQQS3063- Chapter 134Juran Trilogy 1.Quality Planning:Identify our customers and their needs.Translate those needs into our product requirements. Develop a product that can respond to those needs. Optimize the product features to meet our customer needs. 2.Quality Control:Prove that the process can produce the product under operating conditions with minimal inspection. Transfer the process to Operations. 3.Quality Improvement: Develop a process which is able to produce the product. Optimize the process.

Source: Juran Institute, http://www.juran.com/

An approach to cross-functional management

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Philip B. Crosby is a businessman and author who influenced quality improvement through his writings and lectures. Crosbys response to the quality crisis was the principle of doing it right the first time. He also included four major principles: (1) quality is conformance to requirements, (2) the management system is prevention, (3) the performance standard is zero defects, (4) the measurement system is the cost of nonconformance. 35SQQS3063- Chapter 1

Armand V. Feigenbaum is a pivotal figure in the history of quality. He received his Ph.D. from MIT. Broadened a discipline that had relied primarily on production employees to a new stage in which everyone in an organization participates in the process of quality improvement. He proposed a three-step process for quality improvement: quality leadership, quality technology, and organizational commitment36SQQS3063- Chapter 1

Kaoru Ishikawa is considered as Japan's leading figure in the area of Total Quality Management. His inspiration came from the works of Deming and Juran and to a lesser extent Feignenbaum. He will be respected for introducing Quality circles and practice successfully. He is the originator of the fish bone diagrams which are now used worldwide as the cause-effect analysis.37SQQS3063- Chapter 1

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Quality Concept Lesson 1