Quality Assurance in Shipping (1).pdf

Quality Assurance in Shipping CASA BASIC SHIP AGENCY FUNCTIONS CINEC METRO CAMPUS  What is “Quality”? ▪ Webster’s Dictionary Degree of excellence of a thing. ▪ Quality is a subjective term for which each person has his or her own definition. In...

Quality Assurance in Shipping CASA BASIC SHIP AGENCY FUNCTIONS CINEC METRO CAMPUS  What is “Quality”? ▪ Webster’s Dictionary Degree of excellence of a thing. ▪ Quality is 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. — American Society for Quality — 2  What is “Quality”? ▪ Quality is the conformance to requirements /specifications. This is a definition of quality to find out, how well a product or service meets the targets and tolerances determined by its designers. — Philip Crosby — ▪ Quality is the degree of excellence at an acceptable price and control of variability at an acceptable cost. — Robert A. Broh — ▪ Fitness for use or purpose is a definition of quality that evaluates how well the product performs for its intended use. — Joseph Juran — 3  Meaning of Quality : Consumer’s Perspective ▪Fitness for use ▪ how well product or service does what it is supposed to ▪Quality of design ▪ designing quality characteristics into a product or service E.g.. A Mercedes and a Ford are equally “fit for use,” but with different design dimensions 3-4  Meaning of Quality : Producer’s Perspective Quality of Conformance ▪ Making sure a product or service is produced according to design. E.g.. ▪ if new tires do not conform to specifications, they are unsteady ▪ if a hotel room is not clean when a guest checks in, the hotel is not functioning according to specifications of its design… 3-5  Meaning of Quality : A Final Perspective ▪ Consumer’s and producer’s perspectives depend on each other ▪ Consumer’s perspective : PRICE ▪ Producer’s perspective : COST ▪ Consumer’s view must dominate 3-6  Meaning of Quality Meaning of Quality Producer’s Perspective Consumer’s Perspective Quality of Design Quality of Conformance Production Conformance to Quality characteristics Marketing specifications Price Cost Fitness for Consumer Use 7  Dimensions of Quality : Manufactured Products ▪Performance basic operating characteristics of a product; how well a car is handled or its gas mileage ▪Features “extra” items added to basic features, such as a stereo CD or a leather interior in a car ▪Reliability probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years 8  Dimensions of Quality: Manufactured Products (cont.) ▪Conformance degree to which a product meets pre–established standards ▪Durability how long product lasts before replacement ▪Serviceability ease of getting repairs, speed of repairs, courtesy and competence of repair person 9  Dimensions of Quality: Manufactured Products (cont.) ▪Aesthetics how a product looks, feels, sounds, smells, or tastes ▪Safety assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles ▪Perceptions subjective perceptions based on brand name, advertising, and the like 10  Dimensions of Quality: Service ▪Time and Timeliness How long must a customer wait for service, and is it completed on time? Is an overnight package delivered overnight? ▪Completeness: Is everything customer asked for provided? Is a mail order from a catalogue company complete when delivered? 11  Dimensions of Quality: Service (cont.) ▪Courtesy: How are customers treated by employees? Are catalogue phone operators nice and are their voices pleasant? ▪Consistency Is the same level of service provided to each customer each time? Is your newspaper delivered on time every morning? 12  Dimensions of Quality: Service (cont.) ▪Accessibility and convenience How easy is it to obtain service? Does a service representative answer you calls quickly? ▪Accuracy Is the service performed right every time? Is your bank or credit card statement correct every month? ▪Responsiveness How well does the company react to unusual situations? How well is a telephone operator able to respond to a customer’s questions? ▪Tangibles Physical facilities, equipment, and appearance 13 Determinants of Perceived Service Quality Word of Personal Past Mouth Needs Experience External Expected Communication Service to Customers Service Quality Perceived Gap Service Quality Perceived Service © A. Parasuraman, University of Miami; not to be reproduced or disseminated without the author’s permission 14  Service Quality Gap Model Customer Customer Satisfaction Customer GAP 5 Perceptions Expectations Managing the Customer / Understanding Evidence Marketing Research the Customer Communication GAP 4 GAP 1 Management Service Perceptions Delivery of Customer Expectations Conformance Design GAP 2 GAP 3 Conformance Service Design Service Standards 15  Definitions of the SERVQUAL Dimensions ▪Tangibles : Appearance of physical facilities, equipment, personnel, and communication materials. ▪Reliability : Ability to perform the promised service dependably and accurately. ▪Responsiveness : Willingness to help customers and provide prompt service. ▪Assurance : Knowledge and courtesy of employees and their ability to inspire trust and confidence. ▪Empathy : Caring, individualized attention the firm provides its customers. 16 16 Who is a customer? ▪ Anyone who is impacted by the product or services delivered by an organization. ▪ External customer - the end user ▪ Internal customer - other divisions of the company that receive the processed product. 17  Customer - Driven Quality “Meeting or exceeding customer expectations” Customers can be... ◦ Consumers ◦ External customers ◦ Internal customers 18 Evolution of Quality Management Companywide Total Quality Quality Control Control Quality Assurance Quality Control (Acceptance Sampling) Mass Inspection 19 History of quality management. …To know the future, know the past! Before Industrial Revolution, skilled craftsmen served both as manufacturers and inspectors, building quality into their products through their considerable pride in their workmanship. Industrial Revolution changed this basic concept to interchangeable parts. Likes of ; ◦ F. W. Taylor (“scientific management” fame) emphasized on the use of scientific standards equitably to managers as well as workers. 20  Evolution of Quality Management Mass Inspection Quality Assurance ◦ Inspecting ◦ Emphasis on prevention ◦ Salvaging ◦ Proactive approach using SPC ◦ Sorting ◦ Advance quality planning ◦ Grading Total Quality Control ◦ Rectifying ◦ All aspects of quality of inputs ◦ Rejecting ◦ Testing equipments Quality Control ◦ Control on processes ◦ Quality manuals ◦ Product testing using SQC ◦ Basic quality planning 21  Evolution of Quality Management Companywide Quality Control ◦ Measured in all functions connected with production such as ◦ R&D ◦ Design ◦ Engineering ◦ Purchasing, ◦ Operations etc Total Quality Management ◦ Measured in all aspects of business, ◦ Top management commitment ◦ Continuous improvement ◦ Involvement & participation of employees 22  Quality Management Evolution Incorporates QC/QA activities into a company- Proactive Approach Total Quality wide system aimed at satisfying the customer. Prevention Management 4 (involves all organizational functions) Stop defects at source. Zero defects Planned and systematic actions to ensure that Quality products or services conform to company Assurance requirements 3 Reactive Approach Operational techniques to make inspection more Quality efficient & to reduce the costs of quality. Detection 2 Control (example: SPC) Finding & Fixing mistakes Inspection Inspect products 1 23  Quality Control ▪ Quality Control (QC) - “the operational techniques and activities that are used to fulfil requirements for quality”. ▪ The purpose of quality control is to uncover defects and have them corrected so that defect-free products will be produced. ▪ Quality control is limited to looking at products. ▪ Quality control is testing the final product against product quality standards. ▪ Quality control is operational techniques that are used to fulfill requirements for product quality. 24  Quality Assurance ▪ Quality Assurance (QA) - “all planned and systemic activities necessary to provide adequate confidence that a product or service will satisfy given requirements for quality”. ▪ Quality assurance is oriented toward preventing defects. ▪ It is defined by those activities that modify the development processes to prevent the introduction of defects. ▪ Quality assurance is more concerned with the processes that produce the final product, and making sure that quality is part of each phase. ▪ QA is about maturing the process towards minimum defect. ▪ It is about balancing methodology, leadership, and technology. ▪ It is about taking into account human factors as well as technological ones. 25  Total Quality ▪ People-focused management system ▪ Focus on increasing customer satisfaction and reducing costs ▪ A systems approach that integrates organizational functions and the entire supply chain ▪ Stresses learning and adaptation to change ▪ Based on the scientific method 26  Total Quality Management ▪ Total : Involving the entire organization, supply chain, and/or product life cycle ▪ Quality : With its usual definitions, with all its complexities ▪ Management : The system of managing with steps like Plan, Organize, Control, Lead, Staff, provisioning and organizing GOAL OF TQM “Do the right things, right the first time, every time.” 27  Principles of Total Quality Management ▪ Customer satisfaction is of utmost priority. ▪ Leadership. ▪ Quality is strategic issue. ▪ Quality is the responsibility of all employees at all levels. ▪ All functions of an organization should focus on continuous improvement. ▪ Quality problems are solved by cooperation of employees and management. ▪ SQC methods must be used for problem solving and continuous improvement. ▪ Training and education of all employees forms the basis for continuous improvement. 28  TQM & organizational Cultural Change TRADITIONAL APPROACH TQM ▪Lack of communication ▪Open communications ▪Control of staff ▪Empowerment ▪Inspection & fire fighting ▪Prevention ▪Internal focus on rule ▪External focus on customer ▪Stability seeking ▪Continuous improvement ▪Adversarial relations ▪Co-operative relations ▪Allocating blame ▪Solving problems at their roots 29 Continuous improvement ▪ A systematic and ongoing effort to enhance products, services, or processes over time. ▪ The primary goal of continuous improvement is to incrementally make small, positive changes that collectively lead to significant improvements in efficiency, quality, and overall performance. ▪ There are several continuous improvement models that organizations can adopt to guide their efforts in systematically enhancing processes and performance. ▪ Plan-Do-Check-Act (PDCA) cycle, also known as the Deming Cycle or Shewhart Cycle. ▪ Developed by Walter Shewhart and popularized by W. Edwards Deming, the PDCA cycle is a simple and effective framework for continuous improvement. 30  PDCA or (PDSA) Act: Evaluate Plan: Current State Standardize Measure Next steps Est. a target (goal) Communicate Check: Do: Review results Implement the Trends plan improvements Collect data ID problem areas 31  Quality Policies ▪ Mission statement outlines the specific need the firm’s product or service meets ▪ Corporate policies (apply to everyone) ▪ Departmental policies (not relevant to any other department worker) ▪ Policies must be consistent with company’s strategy (buying from a low-cost bidder may be inconsistent with the strategy of high-quality products) 32  Quality Improvement Tools 1. Pareto charts 2. Fishbone diagram 3. Check Sheet / Checklist 4. Histograms 5. Scatter Diagrams 6. Flowcharts 7. Statistical Process Control Chart 33  01. Pareto Charts ▪ Visual depiction of significance and cumulative accountability ▪ Data driven ▪ Analysis of frequency of causes ▪ Prioritization/focuses attention on most significant ▪ Communication about cause significance with others 34  02. Fishbone Diagram ▪ Cause and Effect Diagram ▪ Identifies causes of problems ▪ Sorts ideas into categories o Methods o Machines (equipment) o Manpower (people) o Materials o Measurement o Environment 35 Cause & Effect Diagrams : Sample Manpower Materials Typos Source info incorrect Wrong source info Didn’t follow proc. Dyslexic Transposition Wrong purchase order Incorrect shipping Glare on documents Temp. display Corrupt data No training Environment No procedure Keyboard sticks No communications Software problem Methods Machine 36  03. Check Sheet / Checklist ▪Check sheet : An organized method of ▪Checklist :Simple data check-off sheet recording data designed to identify type of quality problems at each workstation; per shift, per machine, per operator 37  04. Histograms ▪ A chart that shows the frequency distribution of observed values of a variable. ▪ Displays whether the distribution is symmetrical (normal) or skewed. 38  05. Scatter Diagrams ▪ A graph that shows how two variables are related to one another ▪ Data can be used in a regression analysis to establish equation for the relationship 39  06. Flowcharts ▪ Used to document the detailed steps in a process. ▪ Often the first step in Process Re-Engineering. 40  07. Statistical Process Control Chart A chart with time on the horizontal axis to plot values of a statistic 20% Upper control limit 10% Target value 0% | | | | | | | | | Lower control limit 1 2 3 4 5 6 7 8 9 Game number 41  What does “quality is free” mean? ▪ A quality program can save a company more money than it costs to implement ▪ Profitability is best accomplished by reducing the cost of poor quality and preventing defects ▪ The cost of implementing a corporate quality program is offset by the cost savings of preventing defects ▪ Cost savings include prevention, appraisal, and failure costs. 42  Cost of quality Cost of good quality Cost of poor quality 43 Japanese 5S Concept 44  Quality Circles ▪ The nature and role of quality circles varies between companies. ▪ In Japan, a quality circle is a typically voluntary group of some 5-10 workers from the same workshop, who meet regularly and are led by a foreman, assistant foreman, work leader or one of the workers. 45  Lean Six Sigma ▪ Six Sigma improves effectiveness by eliminating defects (improves Quality) ▪ Lean improves efficiency by eliminating delay and waste (improves Speed) ▪ Most Six Sigma efforts are incorporating the principles of Lean. Therefore, Six Sigma is often called Lean Six Sigma. Target 6s ! Customer Specification By reducing the variability, we improve the process 1s No Defects! 3s 6s 46  International Standard Organization International Standard Organization Product Certification System Certification B.S ISO 9000 S.L.S ISO 14000 ISO 22000 OHSAS 18000 47  ISO 9000 Standards Series ISO 9000:2009 Vocabulary ISO 9001:2008 Processes ISO 9004:2009 Guidance for Continual Improvement ISO 19011:2000 Auditing 48  Staff Competency Index There is a measurement called staff competency index. This is usually measured by the superiors of the employees in relation to their job description and job specification. Knowledge Competency Skill Attitude 49 END