Quality and quality improvements

Innovative and systematic way of working with quality lower internal

costs and shorter design and development phase of new products
Japanese wonderfocus on customer needs/ expectations
1.1. Quality
1.1.1Definitions
qualityqualitasof what
Deming quality should be aimed at the needs of the customer, present
and future.
Juran fitness for use
Shewhart: ..two common aspects of qualityobjective side of quality
(existence of man)subjective side (feel, sense)
ISO 9000- characteristics fulfills the requirements, i.e. needs or
expectations that are stated, generally implied or obligatory.
The quality of a product is its ability to satisfy, or preferably exceed, the
needs and expectations of the customers.
Garvins five perspectives of quality
1) Transcendent: quality is identified when experienced cannot be
defined exactly
2) Product-based view: quality is measurable->precise characteristics the
user cant judge
3) User-based *more Deming: quality is judged by customers needs and
expectations fulfillment
Swarts both based
4) Manufacturing-based *more Crosby
5) Value-based: cost/price relation different approaches are needed in
different parts of organization
Needs and expectations
We dont expect them to be fulfilled often we dont realize owr own
needs (personal needs; social needs)
Includes elements that we dont need
1.1.2. Costumer concept
Who is the customer?
Those we want o create value for
-find who
-find out needs and expectations
-fulfill/exceed needs or expectations
1.1.3. Products &their quality dimensions

 quality dimensions for goods

Quality dimensions of an article
Quality dimensions of a service
1) Reliability (how often problems occur)
1) Reliability (punctuality, doing what you
2) Performance (speed, capacity, size)
promised)
3) Maintainability (how easy to find
2) Credibility (trust of the supplier)
problem)
3) Access (contact the supplier website
4) Environmental impact (effect on
availability, etc.)
environment (pollution))
4) Communication (understand each other)
5) Appearance (astatic, design)
5) Responsiveness (willingness to help cost)
6) Flawlessness
6) Courtesy (supplier behavior, politeness,
7) Safety
kindness)
8) Durability (used, phased, transported
7) Empathy (understand cost, situation)
without breaking)
8) Tangibles (physical environment of where
the service is given)
Quality dimensions for services:
Services vs goods:
-not tangible hard to specify and measure
-customer is active in creating the service
-consumed while learning created
-customer is not owner after delivery
-cannot be tested or tried before
moment of truth - meeting between suppliers (customer not turning
back)
Commercial experiences attractions parks memorable high
costumer value
Note: importance of each dimensions depends of the product
Each product/service meet its own costumer requirements
Ingredients of TQM

You always focus on the customer- the ideal. Customers always want a good service.
It doesn't always happen, that.s what we expire
The customer is the one who said: yes it is good/no, it's bad You need to focus on
processes.
1. focus on processes: The highest process is cash to cash. Any business stars with
cash: they get customers, they sell smth and then get cash We need to look how do.
Advertise, recruit new customers, answers and so on, all of those processes.
2. Improve continuously: never have the place to say: we did everything, we are
done. There is always an opportunity to be better. Car industry: The quality of cars
changed a lot, this is a feature-part of the quality. Suspension has been gone; safety
etc.
3. Base decisions on facts: They are still a lot of managers who make decisions. All
decisions has to be based on facts
4. Let everybody be committed: If all employees are involved-quality organization.
(Cazy method)
Committed leadership - you need to have leaders who are really belief, not only
taking the money.
The Quality Chains(pic.2)

Most of the people in the company don't deal with the customers. We only
have the sales team who contact with customers. But you still need
everybody to be concerned with the customer.
External customers/suppliers - a sells to company b and they supply company c.
Company a still has to care about company c to fulfill their needs and ensure quality

Internal customers
900 from 100 | they should all understand

How much time is spent doing the right things right? (pic.3)
Do this right at first time.
The thing we do vs the way we do them Know what to do and do them the right way
Definitions. Environment
Services

People
Total
quality

Processes

Product

Three legged tools of total quality

Customer focus
Measures
People
SPC
Quality is build in
Benchmarking
Quality is expected, not
Quality tools
inspected
Employees are
empowered

Processes
Continual improvement
Good enough is never
enough

Bergman&klefsj's definition: The quality of a product is its ability to satisfy, and

preferably exceed, the needs and expectations of the customers.
Quality dimensions of an article
9) Reliability
10)
Performance
11)
Maintainability
12)
Environmental impact
13)
Appearance
14)
Flawlessness
15)
Safety
16)
Durability

Quality dimensions of a service

9) Reliability
10)
Credibility
11)
Access
12)
Communication
13)
Responsiveness
14)
Courtesy
15)
Empathy
16)
Tangibles

Plato/adam smith : the key to increase productivity is specialization

The Juran Trilogy.
-Q Planning
-Q Control
-Q Improvement
Joseph M.Juran 1951 Quality control Handbook
Deming: Plan/Do/Check/Act
Every time you reduce something
Crosby Quality is free. Zero defects.
Zaibatsu the privileged few
EOQC European organization for quality
QC=quality control
Kaoru Ishikawa the seven QC tools
Ohno Taiichi: Kanban; JIT; Lean production techniques
Concept of CWQC company wide quality control
Shewhart: statistics in science
The seven management tools
All the Seven mmanagement tools exept the matrix data analysis are intended for
structuring verbal information.
1. Affinity diagram: KJ-method, is a facility for organizing large amounts of
verbal data, such as ideas, customer desires or opinions in groups, according to
some form of natural affinity. The diagram lustrates associations rather than
logical connections

2. Tree diagram provides a systematic way of breaking down an essential

problem, central idea or a need from the customers into its constituents at
different levels. Goal-oriented tool
3. Matrix diagram
4. Interrelationship diagraph (relation diagram)
5. Matrix data analysis
6. Process decision program chart
7. Activity network diagram

o
o

Managers vs leader (p381 or 398)

Whats the difference?
Company examples?
What are a leaders most important tasks when it comes to quality?
Managers
Assigned
Organizational

Leaders
Role given by lo level
Inspiration

Concerned about the final result

I-directed
Plan and organize

Care about people

We should do it
Motivate
Clear vision

What do leaders and managers do for quality?

Based on someones model or whatever what does bla-bla-bla
Aristotles 3 models of persuasion that need to be fulfilled if you are to be convincing
ethos, logos, pathos
o Ethos refers to the character of the speaker.
o Pathos is about evoking feelings in your listener by mental pictures which give
associations to the listener. The emotional or motivational appeals; vivid language;
o Logos: the speech, rational. the logic used to support a claim (induction and
deduction); can also be the facts and statistics used to help support the argument). [It
deals with what words are used and how these words are put together into sentences,
building chains with logical contexts and plausible arguments.]
Communication happens when you have all of these.
17. 4.1. the concept
continuous improvement to become natural, not only adopting new demands
from
14 Demings points
3-Cease dependence on inspection to achieve quality. Be more worried about quality
safe money. Quality comes from improvement of the process so that defects arent
produced in the first place.

5-Improve constantly and forever the system of production and service, to improve
quality and productivity, and thus constantly decrease costs. improve continuously
and forever- youre never done! Lower cost of operation is everything we do.
7-Adopt and institute leadership. The leaders should focus on the process and help
people to do a better job. Leadership is required not supervision.
8 Drive out fear so that everyone may work effectively for the company. people
need to feel secure, confident. Employees should not be afraid of saying that
something is wrong in the company.
9-Breack down barriers between departments, build a system. People from different
areas as research, design, sales, technology and production should work as a team to
foresee a production problems and potential product or service issues. Everybody
wins if the system wins.
13-Institute a vigorous program of education and encourage self improvement for
everyone. Organizations need employees who constantly go on developing,
improving and broadening their knowledge. Management should support, initiate and
stimulate education and personal development.
http://leanandkanban.wordpress.com/2011/07/15/demings-14-points/
Demings profound knowledge
Profound knowledge is based on the four elements:
Appreciation for a system (system thinking) without an aim there is no system.
The management must know the system. System a network of interdependent
components trying to fulfill an aim. For ex. - orchestra
Knowledge about variation: the range and causes of variation in quality, and use
of statistical sampling in measurements;
Theory of knowledge: Deming emphasizes that management is largely a matter of
prediction. We must understand what will be the consequence of different actions
(have to predict). Information doesnt constitute knowledge without a theory (for ex.
English dictionary). The concepts explaining knowledge and the limits of what can
be known.
Psychology: concepts of human nature. We need it to understand what motivates
people and to understand the interaction between people; their behavior and realize
how people learn
Senges Learning Organization.
We need to look at the company as a system. Everything connected it each other. We
have to question all assumptions.
Personal mastery: personal growth and learning. Pm is a matter of knowledge and
skills
Mental model: driving. Autopilot because we know how the traffic works for
example. Its part of your mental model.
It means we are in the world

We have to ask ourselves why am I thinking what Im seeing. The way we look at the
world influences how do we see our company/your problem.
Team learning: we need to assimilate the ability of learning together better. The
importance of dialogue and group discussion. For a team to learn, they must be in
sync and reach agreement.
Shared visions: A learning organization's employees all share a common vision.
Personal goals must be in sync with the goals and vision of the organization.
Systems thinking: Organizations are a system of interrelationships. To become
more successful we need to analyze these relationships and find the problems in
them. This will allow an organization to eliminate the obstacles to learning.
Advantage of learning organizations
Systematic problem solving
Experimentation with new approaches
Learning from own experience and past story
Learning from the experiences and best practices of others.
Transferring knowledge throwing the organization
17.4.2.single-loop and double-loop
single no change in present system rules/strategics can be changed but not the
organization/framework
Double-loop radical changes cultural reflection, structure/ knowledge
understanding of experiences, attitudes.
Triple-loop learning about learning the change continuous learning process.
If I make a mistake I would change it and do something else next time /do it
differently
Change the rules of the game. Why dont you call me when you go out next time?
Regulate again and again the battery, but it is still too hot, suddenly someone
understood that there is might be something with the way it works.
Change the way temperature regulated principles
I fundamentally change the way I look at smth.

principles

insights

rules

behaviour

results

17.7. Total quality management possibilities and difficulties.

Agrias 5 always
1) Always give a little bit more to exceed the customers expectations

2)
3)
4)
5)

Always look for opportunities to move forwards

Always improve to work in a preventive way
Always act professionally to achieve long-term profitability
Always act with confidence and respect to create a goo working environment

Kaplan &Norton introduced the balanced scorecards.

The idea is to focus not just on short-term financial performance measures, but also
to control and follow up the business activities with more long-term performance.
Four perspectives:
1) the financial perspective
2) the external customer perspective (dealing with customer value and customer
satisfaction);
3) the internal business process perspective (focusing on efficiency in the
organizations processes but also on employee satisfaction);
4) the innovation, learning and growth perspective (focusing on a long-term
perspective of the organizations development), which can be regarded as a measure
of efficiency.
19. Processes and process management
19.1. Processes
Process a network of activities that are repeated in time, whose objective is to
create value to external or internal customers.
A process has a first activity and a final activity, a customer (a principal), and a
supplier (an agent);
If consist of a network of activities, produces a value-adding result; and is repeated

time and again.

Processes are often differentiated into the following three categories (egnell;
rentzhog) :
1) main processes task to fulfill the needs of the external customers and to refine
the product provided by the organization. 1-3 main processes
2) support process-whose mission is to provide resources for the main processes.
The support processes have primarily internal customers.
3) management process in which the task is to make decisions on the targets and
strategies of the organization and to implement improvements in the other
organizational processes. (primarily internal customers)

identify the suppliers to the process!

better chances of achieving a shared vision
everything is not a process (confusion between the process and process
orientation concepts)
19.2.1. The process management methodology
Organize for improvement. Appoint process owners and a process
improvement team.

Understand the
process.
Define the inter-faces and investigate who the customers and suppliers are.
Map the process
Observe the process. Establish control points and implement regular
measurements
Improve the process consciously. Use and analyze the feedback from the
measurements to improve the process. a central factor is to holistic view of
the organization + improve in the process: quality (capability to satisfy the c
needs and expectations; efficiency )how well the process are utilizing the
resources in the organization to produce results; adaptability (how well the
process can be adapted to changed prerequisites)
important step in productivity and quality simplification
In process management there are three important roles, namely:
process owner (responsible for the strategic decisions concerning the
process);
process manager (has the operative responsibility);
competence supplier (the role is to supply the processes and functions in
the organization with the competence that is needed and to dimension he
manning in relation to the demand for competence)
The role concept
Roles describe the competence, not connected to specific activities
The role is associated with authority and responsibility

19.4. Benchmarking
Camp (1989)-the search for best practices that will lead to superior
performance
Different types of benchmarking, depending on where the comparison
process is found
Internal benchmarking (comparing site to site, department to d, country to c
within the organization)
Competitor bm (-//-our own performance to that of out direct competitors)
Functional bm (-//-ourselves against competitors, best organizations)
Generic bm (-//-ourselves against the best from all industry groups)
The benchmarking process according to Xerox: plan [do] search,-> observe,> analyze,[study] adapt, improve
19.5. Process innovation
The choice between improving an existing process and creating a ompletely new
one must be made by balancing the cost, the needs of improvement, and the risk
of failure.
19.6. The capability maturity model
Level 1.Initial
Lvl2.Managed
Lvl3.Defined
Lvl4.Quantitively managed
Lvl5.Optimizing
22..1. aff
23. Improvement programs
23.1.Quality control circles and improvement teams
One way to get all employees actively involved in improvement work is to form
small groups discussing different problems and come up with suggestions for
improvement. This activity is usually referred to as QC circles.
Using simple statistical tools, such as the seven improvement tools, people work
in QC circle discussing, analyzing and solving different problems, often aimed at
costs, safety, or productivity.
-management must take an interest in the activities
23.4.1. 6 sigma as improvement programme.
-provides a systematic methodology to achieve the necessary improvements. The
core is a sequence of operations for the improvement work: define the problem;
measure; analyze; improve and control (DMAIC).
IDDOV cycle:

Identify opportunities in relation to customer and business needs

Define customer requirements and product characteristics critical to quality
(CTQ)
Develop concepts satisfying customer needs and requirements on the CTQ
Optimize (create, using parameter design, solutions which are robust against
noise factor variation)
Verify and validate (test the product against customer requirements under
realistic noise factor environments)
Sure ways to succeed
Start in a critical area where you have a
good chance to succeed
Choose a proper project where good results
are needed
Train key personnel
Lead and complete the activities you initiate
Generate and communicate only verified
results
Participate and lead the change on the
floor
Customize the training with your own up-todate examples
Focus on the cost reduction that is generated
by the quality improvement
Integrate six sigma in the ordinary business
Train key personnel who can supervise the
change
Educate the top management so that they
understand how to work with 6 sigma, not
just why
Eliminate waste
Overproduction
Waiting
Unnecessary transportation or conveyance
Over-processing or incorrect processing
Excess inventory
Unnecessary movement
Defects
Unused employee creativity
The five S
Seiry (tidiness, sorting)

Sure ways to fail

Start in many areas, or with your
most difficult problems, that no
one has managed to solve before
Choose projects that are not
important, where results are not top
priority
Select staff who have time on their
hands
Initiate several activities at once
Focus only on activities, such as
training or projects
Stay in the office and refine your
pre-defined plan
Make 6 sigma into a campaign
Train everyone in a fair order of
priority
Inform the top management how
excellent 6 sigma is.

Seiton (to arrange)

Seiso (cleaning)
Seiketsu (standardizing)
Shitsuke (discipline)
Kanban
Could be considered as a system for production control built on the idea that later
processes in the chain signal a need for more material. New material is not
produced until it is needed.
-effective way to support the running of the production system as a whole
The Toyota Way
the principles discussed in Liker (2004)
The long-term philosophy
The right process will produce the right results
Add value to the organization by developing your people and partners
Continuously solving root problems drives the organizational learning
Andon manufacturing term referring to a system that notifies management,
maintenance, and other workers of a quality or process problem.
The three core values of the Swedish truck manufacturer Scania
1) Customer first
2) Respect for the individual
3) Quality
Scanias production system (SPS)
Why do we need standards?
Standards ensure desirable characteristics of products and services such as:
Quality
Environmental friendliness
Safety
Reliability
Efficiency and interchangeability
And at an economical cost
When products, systems, machinery and devices work well and safety, it is often
because they meet standards
When standards are absent, we soon notice. We care when products turn out to
be of poor quality, do not fit, are incompatible with equipment that we already
have, are unreliable or dangerous.
International organization for standardization (ISO). Isos (greek. equal)

1)
2)
3)
4)
5)
6)
7)

Words largest developer and publisher of international standards

Network of the national standards institutes of 160 countries, one member
per country
Non-governmental organization that forms a bridge between he public and
private sectors
Enables a consensus to be reached on solutions that meet booth the
requirements oxf business and the broader needs of society
Quality management system - is a man.sys.to direct and control an
organization with regards to quality
ISO 9000: Quality Mgmt &Assurance
Does not set any specifications for quality
Sets broad requirements for the assurance of quality
Emphasis is on prevention rather than inspection and rework (in
design and production)
ISO 9000 is made up of 3 standards
o ISO 9000: 2000 QMS Fundamentals and vocabulary
o ISO 9001:2008 QMS Requirements
o ISO 9004: 2000 QMS Guidelines for performance
Improvements
Quality management principles of ISO 9000:2005
Quality management system - is a man.sys.to direct and control an
organization with regards to quality
Customer focus
Understanding customers needs
Striving to exceed their expectations
Leadership
Establishing direction, unity of purpose, and a supportive work
environment
Involvement of people
Ensuring that all employees at all levels are able to fully use their
abilities for the organizations benefit
Process approach
Recognizing that all work is done through processes and managing them
accordingly
System approach to management
Expanding on the previous principle is that achieving any objective
requires a system of interrelated processes
Continual improvements
As a permanent org objective, recognizing and acting on the fact that no
process is so good that further improvement is possible
Factual approach to decision making

 Acknowledging that sound decisions must be based on analysis of

factual data and information
8) Mutually beneficial supplier relationship
Taking advantage of synergies
ISO 9001: 2000 Registration
Is a product/service conformity model for guaranteeing equity in the
marketplace
Concentrates on fixing quality system defects and product/service
Why implement ISO 9000
Desire to continually improve all aspects of an organization
-operations
-the consistence of quality
-customer satisfaction
-competitive posture
to improve or create a quality management systems
to conform to the requirements of customers
ISO 900: 2005 standard concepts and terms
Quality set of characteristics fulfill requirements
Customer person who receives a product purchaser
Process interrelated/interacting activities, which transforms inputs into
outputs
Project unique process, set of activities
Quality management quality planning/ assurance /control/improvement
20.1.4. ISO 900: 2008 Quality management system Requirement
To implement a system an organization should:
-identify process
-determine the sequence/interaction
-determine criteria and methods required
-ensure the availability of resources and info necessary
-measure, monitor, analyze
Types of documentation
Quality manuals
Quality plans
Q specifications
Document provide info about how to perform
Records
Management responsibility
-management commitment
customer focus

Quality policy
Planning
Responsibility, authority and communication
Management review

Resource management
Provision of resources
Human resources
Infrastructure
Work environment
Product realization
Planning of product realization
Customer-related processes
Design and development
Purchasing
Production and service provision
Control of monitoring and measuring equipment
Measurement, analysis and improvement
General
Monitoring and measurement
Control of non-conforming products
Analysis of data
Improvement
Third party certification - (ISO 9001) means that a third independent
party evaluates the quality management system of a company and judges to
what extent it complies with the standard.
JUSE Union of Japanese scientists and engineers