Quality Control & Deming's Principles

• Quality is the totality of features and characteristics of a product that can satisfy stated or implied needs.
• Quality is also the degree to which a set of inherent characteristics fulfills requirements, as defined by ISO (EN) 9000:2015.
• Meeting customer requirements is a way of defining quality.

Quality in Goods

• Performance refers to the basic operating characteristics of a product such as how well a car handles or its gas mileage.
• Features are "extra" items added to basic features–like a 360 camera or a leather interior in a car.
• Reliability is the probability that a product will operate properly within an expected time frame such as a TV that works without repair for seven years.
• Conformance is the degree to which a product meets pre-established standards.
• Durability is how long a product lasts before replacement.
• Serviceability is the ease of getting repairs, speed of repairs, courtesy, and competence of repair personnel.
• Aesthetics refers to how a product looks, feels, sounds, smells, or tastes.
• Customers need assurance they will not suffer injury or harm from a product; this consideration is especially important for automobiles.
• Perceptions are subjective observations rooted in brand name advertising.

Quality in Service

• Time and Timeliness refers to how long a customer must wait for service, and if the service is completed on time.
• Completeness concerns whether everything the customer asked for was provided.
• Courtesy concerns how customers are treated by employees.
• Consistency concerns whether same level of service is provided with each customer.
• Accessibility and convenience asks how easy it is to obtain service.
• Accuracy concerns whether is the service performed correctly every time.
• Responsiveness refers to how well a company reacts to unusual situations.

Customer Expectations vs. Perceptions

• Technical quality is the core element of the good or service
• Functional quality is the customer perception of how well the good functions or the service is delivered.
• Customer satisfaction is the difference between their perception of performance and their expectation.

Evolution of Quality

• From the end of the nineteenth century, skilled craftsmen served as manufacturers and inspectors in craftsman quality control.
• During the industrial revolution, large-scale modern factories developed, with craftsmen performing similar tasks grouped and supervised by a foreman, resulting in foreman quality control.
• Inspection quality control started during the First World War; manufacturing systems became more complex, and full-time inspectors were required because many craftsmen reported to a production foreman.
• Statistical quality control started during the Second World War when tremendous mass production was necessary.
• Unit by unit inspection was replaced by sampling inspection.
• Statistical quality control was started at Western Electric by pioneers like Walter Shewhart, George Edwards, W. Edwards Deming and Joseph M. Juran, all employees of Western Electric.
• W.A. Shewhart developed a statistical chart for the control of product variables in 1924, marking the beginning of statistical quality control.
• After World War II, under General MacArthur's Japan rebuilding plan, Deming and Juran went to Japan.
• Post WWII, major Japanese manufacturers converted from producing military goods for internal use to civilian goods for trade.
• Deming and Juran introduced statistical quality control theory to Japanese industry.
• Juran predicted at a conference in Sweden that the Japanese would achieve world quality leadership due to their unprecedented pace.
• Top managers in the USA, Canada, and Europe focused on marketing, production quantity, and financial performance in the next two decades as Juran made his predictions.
• Japanese managers improved quality at an unprecedented rate.
• Markets started preferring Japanese products resulting in American, Canadian, and European companies suffering immensely.
• In 1950 the Japanese government instituted the Deming Prize for Quality.
• Total quality control evolved in the early 1960s.
• The International Organization for Standardization convened to develop an international quality system and issued the ISO-9000 series in March 1987.
• Recognition and importance of quality grew quickly in late 1989.
• Total quality management evolved in early 1990.

Definitions

• Quality systems involve organizational structure, procedures, processes, and resources needed to implement quality management.
• Quality management includes all activities of overall management functions that determine the quality of policy, objectives, and responsibilities for members of the organization.
• Quality control involves operational techniques and activities to control/measure the characteristics of a material,structure, component, or system that are used to fulfill requirements for quality.
• Quality assurance involves the implementation of planned and systematic activities within quality systems to provide adequate confidence that a product or service satisfies requirements for quality.
• Quality systems and quality management are described as quality management systems.
• Total Quality Management (TQM) involves a management approach centered on quality, long-term success through customer satisfaction and company-wide participation.

Benefits of Quality

• Reduced waste
• Improved productivity
• Reduced costs
• Increased profit
• Increased market shares
• Motivated employees
• Satisfied customers
• Improved business results

Quality Gurus

• Walter Shewhart was a statistician at Bell Laboratories.
• In the 1920s Shewhart developed statistical process control (SPC).
• He created the Plan-Do-Check-Act (PDCA) cycle.
• His SPC had a strong influence on both Deming & Juran.

W. Edwards Deming

• Had a PhD in mathematical physics from Yale University.
• He became a statistician for the US government from 1939-1940.
• During World War II, he developed courses teaching statistical quality-control techniques to engineers/company executives that were military suppliers.
• After the war he taught statistical quality control to Japanese companies.
• Management is responsible for 85% of production faults; the Japanese regarded Deming as the chief architect of their industrial success.
• He developed 14 points for quality improvement.

Deming's 14-points

• Create constant purpose towards improvement of products and service.
• Adopt a new philosophy of "customer first" and prevention
• Cease dependencies on mass inspection by building quality into the system.
• End the practice of awarding business on the price tag alone/require meaningful quality with price.
• Constantly improve the system of production and service via plan-do-check-act, Kaizen.
• Institute modern methods of training on the job for all (including management).
• Institute leadership.
• Drive out fear and encourage effective a two-way communication.
• Break down barriers between departments and break down staff areas.
• Eliminate unclear slogans, exhortations, and targets for the workforce.
• Set realistic targets.
• Don't place people under unnecessary pressure to do unrealistic things.
• Substitute numerical quotas with leadership via management by objectives.
• Remove barriers to pride of workmanship.
• Implement a vigorous program of education and self-improvement for everyone.
• Develop Top Management's permanent commitment to continuous improvements in quality and productivity and implement above 13 points.

Deming Wheel: PDCA Cycle

• Plan: Identify problem and develop plan for improvement
• Do: Implement the plan on a test basis
• Check: Assess the plan to see is it working
• Act: Institutionalize improvement and then repeat the cycle

Deming's Seven Deadly Diseases

1. Lack of constancy of purpose
2. Emphasis on short-term Profits
3. Evaluation by performance, merit rating, or annual review of performance
4. Mobility of management (creates prima donnas for quick results)
5. Running a company on visible figures alone
6. Excessive medical costs
7. Excessive costs of warranty, fueled by lawyers that work on contingency fee

Quality Gurus: Joseph M. Juran

• Associated with Western Electric manufacturing in the 1920s.
• He followed Deming to Japan in 1954.
• He focused on strategic quality planning and developed an improvement strategy.

Juran's Quality Trilogy

• The Juran Quality Trilogy involves planning, control, and improvement.
• Quality planning involves identifying internal and external customers, determining their needs, developing a process that responds to those needs, establishing goals that meet those needs,and proving the process is capable of meeting the quality goals.

Juran Quality Control

• Choose control subjects
• Choose units of measurements
• Establish measurement
• Establish standards of performance
• Measure actual performance
• Interpret the difference
• Take action on the difference

Juran Quality Improvement

• Prove the need for quality improvement
• Identify specific projects for improvements
• Set goals for continuous improvements
• Train team members
• Diagnose the causes
• Provide remedial action
• Prove remedial actions are effective
• Incorporating improvement into regular system and processes

Quality Gurus: Armand V. Feigenbaum

• Introduced the concept of Total Quality Control and continuous quality improvement in 1956.

Feigenbaum's benchmarks

1. Quality is a companywide process
2. Quality is determined by the customer
3. Quality and cost are a sum, not a difference
4. Uncompromised pursuit of quality is required from both individual and teams
5. Quality is a way of managing
6. Quality and innovation are mutually dependent
7. Quality is an ethic
8. Quality requires continuous improvement
9. Quality is most cost-effective, the least capital-intensive route to productivity
10. Quality system is implemented with customers and suppliers

Quality Gurus: Philip Crosby

• Emphasized in 1979 that the costs of poor quality far outweigh the costs of preventing it.
• Defined absolutes of quality management in 1984 as conformance to requirements, prevention, and "zero defects".
• Crosby said quality is free. Four absolutes of quality Management
• Quality is conformance to requirements.
• The system of quality is prevention.
• The performance standard is zero defects.
• The measurement of quality is the price of nonconformance.

Crosby's 14 steps to improve quality

1. Establish management commitment
2. Form quality improvement teams
3. Establish quality measurements
4. Evaluate the cost of quality
5. Raise quality awareness
6. Take action to correct the problems
7. Zero defects planning.
8. Train supervisors and managers
9. Hold "Zero defects" day to establish the attitude and expectation within the company 10.encourage setting of goals for improvement
10. Error cause removal 12.Recognition for contributions 13.Establish quality councils 14.Do it over again

Quality Gurus: Kaoru Ishikawa

• Promoted use of quality circles.
• Developed the fishbone diagram.
• Emphasized importance of internal customer.
• Quality first, not short-term profit first.
• Customer orientation, remember the customer first.
• The next step is the customer, to eliminate sectionalism.

Ishikawa philosophy

• Using facts and data for statistical analysis
• Respect for humanity as a management philosophy
• Cross-functional solutions to management problems.

Quality Gurus: Shigeo Shingo

• He developed Poka yoke/Mistake proofing.
• Identify errors before becoming defects.
• He stops a process if a detect occurs, defines the source, and then prevents it.
• He prevented workers from making errors, in order to prevent any defects.
• He is associated with Just In Time methods.
• Invented a way to make product equipment easier to set up, from hours to minutes.

Cost of Quality Definition

• Cost of quality includes all product and service processes, conforming to requirements, as well as additional costs.

Juran's model cost of quality has categories:

• Prevention cost
• Appraisal cost
• Failure cost
• Prevention cost is the expense of planning a product for a error free outcome.

Types of Quality Planning Costs:

• Quality planning costs are for improving the overall quality management program
• Product design costs provide qualities needed in the creation of a product
• process costs are spent ensuring it will confirm to all specifications

Prevention costs are:

• Training to employees and management
• Information to help with quality and performance
• Appraisal costs are cost of evaluating processes leading to a product free from error.

Appraisal costs involve:

• Inspection while testing at various stages
• Testing and maintenance Equipment
• Operator and time costs when testing to determine quality
• Internal Failure Cost is the expense needed to correct an error before going to the customer.

Internal Failure cost include:

• Discarded and poor quality products
• Reworking and fixing of defects
• process of why quality failures happen

External Failure cost definition

• Is the expense incurred while the problem goes to the consumers and what errors are shown.

Costs of External include but are not limited to:

• Complaints
• Return or replaces goods
• Warenty claims
• And litigation costs
• costs and loss sales due to poor ratings and customer satisfaction

Costs that are associated with internal failures (Such as Defects) include:

• More labor and capacity costs
• Work in progress inventory
• Lead times
• High defection rate
• Reduced company morale
• And a high pressure enviroment

Distribution of Quality Costs:

• In a percentage breakdown
• Prevent costs: 5%
• Appraisal costs: 50%
• Internal failure: 15%
• External failure: 30%

Examine the evolution and principles of quality control, from initial inspection methods to Deming's statistical approaches. Learn about quality control during mass production, and Deming's 14 points for quality improvement. Gain insights into management's role in production faults.