Introduction to Quality Systems

Introduction to Quality Systems

• Quality systems are understood through their characteristics, which determine if a product or service meets stated and implied needs.
• Criteria include fitness for purpose, meeting customer requirements, and accomplishing tasks correctly the first time.
• Quality assurance emphasizes prevention rather than detection of defects, and rising pressure to provide products of higher quality has led to the use of quality systems.

Learning Objectives

• Students should appreciate the quality standards before performance management implementation.
• Students should understand the crucial role and contribution of employee dimensions.

Course Materials: Quality System

• The quality system is a framework (structure, responsibilities, procedures, processes, and resources) for implementing quality management.
• It covers all business functions except finance.
• Components of the quality system primarily involve manufacturing processes (design, purchasing, process engineering, inspection, delivery, customer service, and customer order).
• Customer service, validation, training, and the International Organization for Standardization (ISO) standards are also key elements.

ISO 9000

• ISO 9000 is a worldwide standard for quality systems, applicable to all sized organizations.
• It seeks to ensure that a company's products meet customer requirements.
• The standard consists of 20 elements regarding management responsibility, quality system, contract review, and design and document control, purchasing procedures, product traceability, process control, and inspection, and testing.
• The standard also covers inspection, test states, control of non-conforming products, corrective action, handling, storage, packaging, delivery, and quality records procedures.
• It equally involves internal quality audits, training, development of company employees, servicing procedures, and statistical techniques.

Quality Standards Benefits

• Value for money.
• Customer satisfaction.
• Increased productivity.
• Increased profitability.
• Improved corporate image.
• Access to the global market.
• Higher employee morale.

Developing a Quality System

• Analysis of quality objectives, existing quality systems, and implementation plans.
• Procedures for product/service specification.
• Material control procedure for specifications, sub-contractors, and direct material handling.
• Process control methods for identifying the product through conversion and maintaining traceability.
• Methods for in-process and final product inspection and testing, using statistical techniques.
• Quality reward procedures, performance evaluation, and employee/system audits.
• Quality manual that clarifies business policies on quality.

Employee Dimensions

• Empowerment of Employees
• Reward and Recognition
• Training and Development
• Open Communication
• Employee Orientation
• Sense of Direction
• Fact-based decision-making
• Continuous improvements
• Collaboration
• Corporate Citizenship

Recognizing Employees

• Award programs for outstanding work.
• Recognition of quality team.
• Employee visibility in prominent locations.
• Peer recognition at meetings.
• Employee involvement in committees and tasks outside regular duties.
• Promotion or nomination of employees who contribute significantly to overall improvement efforts.

Six Sigma for Organizations

• Six Sigma is a process to improve quality, not just a slogan.
• It relies on statistical methods and engineering to reduce defects and variation in processes.
• It focuses on delivering near-perfect products/services.
• Critical Quality Attributes, and what the customer wants constitutes a defect.
• Core concepts of Six Sigma include defect quantification, process capability analysis, variation analysis, and statistical process control to reach near-perfect products.

Performance Management and Compensation

• Performance appraisal data is used in compensation, performance improvement, and documentation areas.
• Effective appraisal systems use data to identify performance strengths and weaknesses, and develop employee goals to match company needs.
• Performance data can also provide input for staffing, training, development, and improvement decisions.

Training Needs Analysis

• Collecting data to understand specific employee needs for skill improvement.
• Results of multi-rater approach provide data for targeted training programs, which can increase employee performance.

Performance Methods and Techniques

• Comparing performance to performance level anchors.
• Comparing individuals to performance level anchors (e.g., paired comparison, rank-ordering, forced distribution).
• Comprehensive appraisal systems incorporate self-evaluations, manager reviews, peer reviews, and customer assessments.

Feedback Reporting & Follow-Up

• Reporting should be aggregated clearly and concisely, including self-ratings.
• Comparing self-ratings to ratings by others helps individuals identify areas for improvement.
• Feedback sessions discuss strengths, weaknesses, and development plans.
• Follow-up actions ensure that employees apply learned information and behaviors.

Benchmarking

• Benchmarks are external performance standards/ best practices.
• Gathering data compares internal performance to external benchmarks on similar procedures/ products.
• The process aims to identify areas for improvement within activities and processes.

Malcolm Baldridge National Quality Award

• It is an award that recognizes and rewards organizations focusing on developing and expanding their efforts to become world leaders in Quality.
• Seven aspects of business operations are reviewed to evaluate their excellence in quality improvement practices.
• The criteria include leadership, strategic planning, customer focus, measurement, analysis, and knowledge management.