Chapter 9: Quality Management

Chapter 9: Quality Management

1. Introduction

   • Quality: ability of product/service to consistently meet or exceed customer expectations
     • Quality Control: monitor, test, correct quality problems after occurence
     • Quality Assurance: provide confidence in product quality by preventing defects before occurence
   • Evolution of QM
     • Pre-industrial revolution (craftsmanship) --> industrial rev (inspectors) --> 1950s (QA) --> 1970s (QM systems) --> 1980s (TQM, continuous improvement) --> today (Six Sigma, statistical)
   • Costs of Q
     • failure costs
       • internal
       • external
     • appraisal costs
     • prevention costs
   • Q Gurus
     • W. Edwards Deming
     • Joseph M. Juran
     • Armand Feigenbaum
     • Philip B. Crosby
   • Dimensions & Determinants of Q
     • dimensions: performance, aesthetics, special features, reliability, durability, perceived quality, service ability
     • service quality: tangibles, convenience, reliability, responsive, time, assurance, courtesy
     • determinants: product design, process design, production

2. ISO 9001

   • Def: set of international standards on QM & QA, critical to international business
   • Standards Council of Canada; > 100 countries & 180 tech committees; doc & assessment take 12-18 months; re-register every 3 yrs
   • 2000 elements & activities
     • CHART

3. Hazard Analysis Critical Control Point

   • Def: quality control system - similar to ISO 9001 **for food processors**
     • food safety: biological, chemical, physical hazards
   • Main steps
     • 1. Hazard Analysis
     • 2. Determination of Critical Control Points
     • 3. Creation of HACCP Plan

4. Canada Awards for Excellence

   • Administrated by National Quality Institute (NQI)
     • 1. Foundation
     • 2. Transformation
     • 3. Role Model
       • Silver / Bronze Certificate
     • 4. World Class
       • Gold Trophy
   • National Quality Institute (NQI): Principles for Excellence ==> Orgnal Performance
     • People focus & healthy workplace + Leadership & governance
     • Process M + Planning & environmental sustainability
     • Supplier/partner focus + Customer/citizen/client focus

5. Total Quality Management

   • Def: philosophy that involves everyone in an orgn in a continual effort to improve Q & achieve customer satisfaction
     • Continuous improvement ==> data driven ==> employee empowerment ==> team approach ==> partnership & LT relationship ==> fail-safing
   • Approach
     • 1. find out what customer wants
     • 2. design P/S meeting or exceeding customer wants
     • 3. design processes facilitating doing the job right 1st time
     • 4. keep track of results
     • 5. extend concepts to suppliers
   • Compare cultures of TQM & Traditional Orgns
     • COMPARISON TABLE

6. Problem Solving & Continuous Improvement

   • Basic Steps
     • 1. define problem & establish improvement goals
     • 2. define measures & collect data
     • 3. analyze problem
     • 4. generate potential solutions
     • 5. choose a solution
     • 6. implement solution
     • 7. monitor solution to see if goals are met
   • Plan + Do + Study + Act Cycle

7. Six Sigma

   • Def: business process for improving Q, reducing costs & increasing customer satisfaction
     • Statistically: no more than 3.4 defects/million
     • Conceptually: program designed to reduce defects; require use of tools & techniques
   • Process
     • Define => Measure => Analyze => Improve => Control

8. Basic Quality Tools

   • Flow-charts
   • Check sheets
     • record errors daily
   • Histograms
     • shows an empirical frequency distribution
   • Pareto charts
     • arranges categories from highest to lowest frequency of occurence
     • 80% problems attributed to 20% causes
   • Scatter diagrams
     • shows degree & direction of relationship between 2 variables
   • Control charts
     • Upper control limit & Lower control limit
   • Cause-&-effect diagrams
     • methods, materials, people, equip, env ==> effect
   • Generating ideas & reaching concensus
     • brainstorming & quality circles & interviewing & benchmarking & 5W2H approach