Quality Management

Lecture 1.

Quality of Products and different

perspectives on quality
 Concept of quality 1
 Totality of features and characteristics of a
product or service that bears upon its ability to
satisfy spoken or latent needs.
 Spoken need
 Latent need (basic or innovative)
 These needs can be
 Objective (determined in contracts, or in standards) –
easy to measure
 Subjective (usefulness) – it belongs to the custemer
Concept of quality 2
 Nowadays it has a strategic definition, because
it not just mean the quality of a product, but it :
„It is a basic business strategy, which means that
products and services should totally meet both
internal and external customers stated and latent
needs.

 Quality is defined as meeting customers

requirements
5 Approaches to Defining Quality – Garvin 1
 The Transcendent Approach: a quality cannot be defined
precisely, we learn to recognize it only through experience
 Innate excellence
 Pictures of Picasso:
5 Approaches to Defining Quality -
Garvin 2
 The Product-based Approach: quality is precise and
measurable variable, products can be ranked – quality
products have more attributes (computer with more
memory)
5 Approaches to Defining Quality - Garvin 3
 The Manufacturing-based Approach : products or services meet
stated requirements,
 Manufacturing and engineering practise - Quality is measured by the
manufacturer’s ability to target the requirements consistently with
little variability
5 Approaches to Defining Quality -
Garvin 4
 The User-based Approach : quality of a
product is determined by the consumer. There is
widely varying individual preferences;
5 Approaches to Defining Quality -
Garvin 5
 The Value-based
Approach : quality is
defined in costs and
prices. How much is the
benefit of the good or
servce outweigh the
cost?
 Did the costumer get
his or her money’s
worth?
8 Dimensions of product quality - Garvin
 Performance – refers to a products’ primary operating
characteristics
 Features – „bells and whistles” added to a products
 Reliability – probability that the product will not fail in a specific
period of time (MTPF – mean time between failure)
 Conformance – the degree to which a product or service meets
its specifications
 Durability – a measure of the product life
 Serviceability – this is the speed, the competence and easy of
repair
 Aesthetics – how the product looks, feels, sounds, tastes and
smells. This is clearly a matter of personal judgment
 Perceived quality – images, advertising, and brand names can
be critical to give information about the product quality
KANO-model

 Attractive quality
 One-Dimensional quality
 Must-Be quality
 Indifferent quality
 Reverse quality
KANO-model
Thank You for Attention
Quality Management
Lecture 2.

Quality of Services
HIPI principles

 Heterogenity (variability in the quality of

service because services are provided by
people, and people perform inconsistently)
 Intangibility (there is no specimen )
 Perishability (vary in demand can occure,
difficulty in supply)
 Inseparability (good service can’t be
separated from bad service)
 10 quality dimensions of services
 Reliability - service is performed on a high level of standards again and
again, with high accuracy
 Responsiveness - the willingness of employees to provide the service
and how fast the service is provided
 Competence - possession of required skills, and knowledge
 Access - approachability and ease of contact
 Courtesy -comprises politeness, respect, friendliness
 Communication - informing the customers in an understandable way
and listening to them
 Credibility - trustworthiness and honesty
 Security - physical and financial safety
 Understanding the customer - steps to know customer better
 Tangibles - all physical products that are involved in service delivery
The basic of SERVice QUALity - RATER
model
 Reliability - service provider perform the promised service
dependably and accurately.
 Assurance – Involves knowledge and courtesy of employees
and their ability to inspire trust and confidence
 Tangibles – equipment, the personnel and communication
materials.
 Empathy – Which is caring, individualized or customized
attention the organization provides its customers
 Responsiveness – willingness to be helpful and prompt in
providing service (waiting time )

It is an efficient model in helping an organization shape up their

efforts in bridging the gap between perceived and expected
service.
GAP model

 customers’ requirements are affected by:

 needs
 Earlier experience
 Word of mouth
 Service provider’s communication

 Expected service  perceived service

quality
 GAP MODEL
Influenced by
EXPECTED SERVICE many factors
GAP 5
Customer PERCIEVED SERVICE

Service GAP 4
provider Service
External
delivery
communication
GAP 3 s to the
customer
GAP 1 Translation of
perceptions into service
quality specifications
GAP 2

Management
perceptions of the
customers expectations
GAP model
 GAP 1 (Knowledge Gap) – the difference between guest’s
expectation and management perceptions of those
expectations, i. e. not knowing what consumer expect
 GAP 2 (Standards Gap) – difference between managements
perceptions of guest’s expectations and service quality
specifications , i.e. improper service quality standards
 GAP 3 (Delivery Gap) – difference between service quality
specifications and service actually delivered, i.e. the service
performance gap
 GAP 4 (Communication Gap) – difference between service
delivery and the communications to the guests about service
delivery, i.e. whether promises match delivery?
 GAP 5 (Overall Gap) – the difference between guests
expectation and perceived service.
Dimension Question

Tangibles 1-4

Reliability 5-9

Responsiveness 10-13

Assurance 14-17

Empathy 18-22
Thank You for Attention
Quality theories

Quality management
Lecture 3.
History of quality management
Early 1920 Scientific management (Taylor, Gilbreth)
1920s Statistical process control (Shewart)
1930s Acceptance sampling (Dodge, Roming)
1940s Military standards introduced
1950s Quality management in Japan (Deming,
Juran)
1960s Taguchi method, and quality tools
1970s Quality becomes strategic (USA)
1980s Introduction of LEAN, TQM, Baldrige Award
1990s Reengineering, Six Sigma
2000s Supply chain management, improvement of
supplier development, LEAN, Six sigma
become popular, contingency theory
 Quality and taylorism
• Basics of taylorism
– The whole process is divided into short steps (division of labor)
– It is not the worker who determine the process/movements -specialist do
that (task management)
– Workers are selected and trained for work
– Standard movements and tools, detailed instructions (standardization) 
standardized product, high output

• Quality effects:
– Product and process design were separated from the repair of product
– frozen design
– Workers were not responsible for repairing of product
– Quality control department was established to control the product at
the end of the process
– The responsibility for quality were spread over in the company
 Quality Inspection
• Goal: separate • Problems: when
refuse examination is
• Target: product – Expensive
• Method: – Long
comparison with – Fracture
specifications
• Result: refuse
doesn’t reach cust.
 Statistical Process Control -
1920
• Shewart • Deming’s role in
• Deming Japan after the 2nd
world war
• Use statistical
methods to
improve quailty of
process
 Statistical Process Control -
SPC
• Goal: to prevent • Problem: if failure
failures to happen is fatal:
again – Death
• Target: process – Loss of Customers
• Method: PDCA
cycle
• Result: Improved
process
 Quality Assurance
• Goal: to prevent failures • Critics:
happening at first time
– Only focus on
• Target: system:
technical
– Processes
background
– Resources
– Structure • HACCP
• Method: audit
• Result: the product meets
customer requirement
 Hazard Analysis for Critical
Control Points
• Obligated In food industry
• Focuse on avoiding
– Phisical danger (lubricant, oil, plaster, dirt)
– Chemical danger (insecticide, chemicals against
pest)
– Biological (fungus, bacteries, toxic fungus, mold)
 The seven steps of HACCP
• Perform a hazard analysis.
• Determine Critical Control Points (CCPs).
• Set critical limits.
• Establish a monitoring system.
• Establish corrective actions.
• Establish verification procedures.
• Establish record-keeping procedures.
 Quality Management System
• Goal: to prevent failure’s happening at all
• Target: the system
– Processes
– Resources
– Structure
• Method: Leadership
• Result: customer focuse, continuous
improvement, total envolvement of
employees
Thank you for your attention!
Quality Management
04. lecture
Statistical process control
 Sampling methods
• Less expensive
• Take less time
• Less intrusive

• 100% sampling – during acceptance sampling or work-

in-process inspection

• Random sample: equal chance to be inspected,

independence among observations
• Systematic samples: according to time or sequence
• Rational subgroup: logically homogeneous, if we not
separate these groups, non-random variation can biased
results
 Variability of process
• Random variation – uncontrollable, caused
by chance, centered around a mean with a
consistent amount of dispersion
• Non-random variation – has a systematic
cause, shift in process mean

• Process stability – only random variation

exist
 Process control chart
• Tools for monitoring process variation

• Continuous variable
• Attribute – either or situation
Example:
• Weight will be variable, while number of
defective items will be attributes
 Control limits
• UCL – Upper Control limit
• CL – Central line
• LCL – lower Control limit
• Control limits comes from the process and
are very different from specification limits.
 Distribution
• Central limit
theorem:
• If the samples
number is high
(above 30) than
the mean of the
samples will
follow normal
distribution
 Errors during hypothesis test

Decision

In control Out of
control
Reality In control OK Error type of
one (risk of
supplier)

Out of Error type of two OK

(risk of
control customer)
Abnormalities
X mean and R control chart
• Mean chart monitor the average of the
process
• Range chart monitor the dispersion of the
process

• K>25, n=4 or 5
 LCLx = x − A2 R UCLx = x + A2 R

x1 + x 2 + ...... + xn
x=
n
• mean
R = x max − x min
• range
• n is the sample size (number of
observation) x1 + x 2 + .... + x m
x=
• Average of samples’ means k

• Average of ranges R + R + ...... + R

R= 1 2 3
k
• k is the number of samples
• A2 is constant and depends on the
sample size
Sample size (n) A2 D4 D3 d2

2 1,88 3,268 0 1,128

3 1,023 2,574 0 1,693
4 0,729 2,282 0 2,059
5 0,577 2,115 0 2,326
6 0,483 2,004 0 2,534
7 0,419 1,924 0,076 2,704
8 0,373 1,864 0,136 2,847
9 0,337 1,816 0,184 2,970
10 0,308 1,777 0,223 3,078
11 0,285 1,744 0,256 3,173
12 0,266 1,716 0,284 3,258
13 0,249 1,692 0,308 3,336
14 0,235 1,671 0,329 3,407
15 0,223 1,652 0,348 3,472
16 0,212 1,636 0,364 3,532
17 0,203 1,621 0,379 3,588
18 0,194 1,608 0,392 3,640
19 0,187 1,596 0,404 3,689
20 0,18 1,586 0,414 3,735
21 0,173 1,575 0,425 3,778
22 0,167 1,566 0,434 3,819
23 0,162 1,557 0,443 3,858
24 0,157 1,548 0,452 3,895
25 0,153 1,541 0,459 3,931
 All products attributes during 8 hours (rows)

66;67;65;68;64;68;62;67;65;66;66;65;67;68;67;62;63;65;66;67;67;67;65;61;65;69;65;64;67;64;65;66;
66;66;64;64;65;65;67;65;67;65;67;65;66;66;66;66;67;66;66;67;65;68;64;68;62;67;65;66;66;65;67;68;
67;62;63;65;66;67;67;67;65;61;65;69;65;64;67;64;65;66;66;66;64;64;65;65;67;65;67;65;67;65;66;66;
66;66;67;66;66;67;65;68;64;68;62;67;65;66;66;65;67;68;67;62;63;65;66;67;67;67;65;61;65;69;65;64;
v
67;64;65;66;66;66;64;64;65;65;67;65;67;65;67;65;66;66;66;66;67;66;66;67;65;68;64;68;62;67;65;66;
66;65;67;68;67;62;63;65;66;67;67;67;65;61;65;69;65;64;67;64;65;66;66;66;64;64;65;65;67;65;67;65;
67;65;66;66;66;66;67;66;67;66;66;67;65;68;64;68;62;67;65;66;66;65;67;68;67;62;63;65;66;67;67;67;
65;61;65;69;65;64;67;64;65;66;66;66;64;64;65;65;67;65;67;65;67;65;67;66;66;67;65;68;64;68;62;67;
a) Determine the control limits if sampling method is the
following: select every second pieces in every hour.
Sample Sample Sample Sample Sample Sample Sample Sample
1 2 3 4 5 6 7 8
Obs1 67 66 62 66 64 65 65 61
Obs2 68 64 65 66 66 68 66 69
Obs3 68 65 67 67 66 62 66 64
Obs4 67 65 67 68 64 65 66 64
Obs5 66 65 61 68 65 67 66 66
Average 67,2 65 64,4 67 65 65,4 65,8 64,8
Range 2 2 6 2 2 6 1 8
 Average chart
Sample1 Sample2 Sample3 Sample4 Sample5 Sample6 Sample7 Sample8
Mean 67,2 65 64,4 67 65 65,4 65,8 64,8
Range 2 2 6 2 2 6 1 8

= 0,577

= ̿+ ∗ = 65,575 + 0,577 ∗ 3,625 = 67,67

= ̿− ∗ = 65,575 − 0,577 ∗ 3,625 = 63,48

 Average chart

68

67

66

65

64

63

62

61
1 2 3 4 5 6 7 8
Mean UCL CL LCL
 Range chart
Sample1 Sample2 Sample3 Sample4 Sample5 Sample6 Sample7 Sample8
Mean 67,2 65 64,4 67 65 65,4 65,8 64,8
Range 2 2 6 2 2 6 1 8

= 2,115

= ∗ = 2,115 ∗ 3,625 = 7,66

 Range chart

0
1 2 3 4 5 6 7 8

Terjedelem UCL CL LCL

Charts for attributes
 P-chart
• p – proportion of defective items
• Both p and σ can be estimated from
the sample
• k>25 UCL p = p + zσ p
• 50<n<100
• It can be used when the sample size LCL p = p − zσ p
is different
– Average sample size (easy to use)
p(1 − p)
– control limits must be calculated
for all sample size (more precise)
σp =
n
• If the lower limit is under 0, then we
use simply zero for LCL.
 Exercise
• A controller’s task to inspect the bills of a
telecommunication company. The table below consist
the number of defectives in the samples. (all sample
were n=100) Create p chart which cover 99,74% of the
cases if the process is in control.
• z=3,00
• np=220
• n=100
• k=20
• p=np/(n*k)=220/(20*100)=0,11
• σ=(0,11(1-0,11)/100)1/2=0,03
• UCL=0,11+3*0,03=0,2
• LCL=0,11-3*0,3=0,02
Process capability
• If the process is in control, than there is
only non-random variation in the process.
But it doesn’t mean that the products
produced by the process meet the
specifications or defect-free.
• Process capability refers to the ability of a
process to produce a product that meet
the specifications.
 Specification limit
• USL – Upper specification limit
• LSL – lower specification limit
• Specification limit comes from outside,
determined by engineers or administration,
and not calculated from the process.
 Population capability
• If there are no subgroups, calculate population
capability, where
• µ - population mean
• σ - population process std.dev

(USL − µ )
Ppu =
3σ ∑( x i − x ) 2
( µ − LSL ) σ=
Ppl =
3σ
n −1

Ppk = min{Ppu; Ppl )

 Capability index
USL − LSL
• 1. select critical operation Cp =
• 2. select k sample of size n 6σˆ
– 19<k<26
– n>50 (if n binomial) (USL − µˆ )
– 1<n<11 (measurement) Cpu =
• Use control chart whether it is 3σˆ
stable
• Compare process natural
tolerance limit with ( µˆ − LSL )
specification limits Cpl =
• Compute capability indexes: 3σˆ
Cpl, Cpu, Cpk
• µ - computed population
process mean
• σ̂ - estimated process std.dev Cpk = min{Cpu; Cpl )
R
σˆ =
d2
 USL LSL

Cp=1

Cpk=1

6σ
 Exercise
• Determine the process capability index on
the base of the sample distribution
(determined in the a) part) , calculate Cp,
Cpu and Cpl , if specification limits are
64,5±5mm. If the process is not stable,
what is the percentage of failed products?
 3,625
= = = 1,56 !̂ = ̿ = 65,575
2,326

− 59,5 − 69,5
= = = 1,07 >1 Can be good
6∗ 6 ∗ 1,56

− !̂ 69,5 − 65,575 3,925

= = = = 0,84 <1 Not Ok
3∗ 3 ∗ 1,56 4,68

!̂ − 65,575 − 59,5 6,075

# = = = = 1,23 >1 Ok
3∗ 3 ∗ 1,56 4,68

The process is shifted to left side, so there will be products ot

of the upper specificstion limit.
LSL USL
48,71% of products fall inside the
USL, so (50-48,71%)=1,29% fall
outside, so thats the amount of
scrapped products
Thank you for your attention!
Quality Management
Lecture 08
Tools of quality
 Ishikawa - 7 tools of quality
Process Check
Map Histograms
Sheet

Scatter Cause & Pareto

Plots Effect analysis
Diagram

Control
Charts

• They can be used in any order

• Get the big picture of the process (Flow chart)
• Collect data about the process (check sheet)
• Analyze data (histograms, scatter plots, control charts)
• Determine cause roots (Cause & Effect Diagram)
• Priorize causes (Pareto analysis)
 Process Map
Decision is needed Step of the process

Input/output –information,
Start/End
material goes into/out of the
process
Page connector

Flowline

• Start with a general flow chart, than add the details

• Go through the process, ask those who really does the
steps
• Determine which steps give value and which doesn’t
 Check Sheet
Problem M Tu W T F Total
Probl1
Probl 2
Probl 3

Date
Rem.
Product Type

Total

• Identify common problems (left column)

• Create check sheet (Identify time period)
• User places check remarks
 Histograms
• Categorical data
frequency charts
• Continuous data
histograms
• Rules
– Class width should be the
same
– Class should be mutually
exclusive, and all-inlcusive.
– Number of classes (k) 2k ≥ n
• n- number of observations log n
k≥
log 2
 Example
• Determine the sales of a restaurant during
launch time. The following dates show the sales
($). Develop a histogram.
 Solution
• Min= 0,79 • Class width:
• Max=8,95 • 0,79-2,15
• Difference=8,16 • 2,16-3,51
• n=40 • 3,52-4,87
• k=log40/log2=5,32 • 4,88-6,23
• k=6 classes • 6,24-7,59
• Class width: • 7,60-8,95
8,16/6=1,36
 Solution
• Class width:
• 0,79-2,15 • 4
• 2,16-3,51 • 11
• 3,52-4,87 • 8
• 4,88-6,23 • 13
• 6,24-7,59 • 2 14

12

• 7,60-8,95 • 2 10

0
1 2 3 4 5 6
 Scatter Plot

• Determine the relationship between two factor

– Select factors
– Collect dates
– Plot data on two-dimensional plane
– Observe correlation (with test)
 Exercise
• A company measure Overtime
Worker (h) Absent (d)
its workers overtime 1 9 3
and absenteeism. 2 10 2
The table below 3 15 0
contains data of 5 4 26 6
workers. Are there 5 20 3
any relationship
between the dates?
 Solution

Overtime (xi-x)*(yi-
Worker (h) Absent (d) xi-x yi-y y) (xi-x)2 (yi-y)2
1 9 2 -7 -3 21 49 9
2 10 3 -6 -2 12 36 4
3 15 5 -1 0 0 1 0
4 26 8 10 3 30 100 9
5 20 7 4 2 8 16 4
Average 16 5 Sum 71 202 26
 Control chart
• To measure the process stability
• Measure the process variability
– Random process is in control
– Systematic the process is not in control
• Value falls out of control limits means an
outer factor that shifts the process
average significantly the process is not
in control
 Average chart

68

67

66

65

64

63

62

61
1 2 3 4 5 6 7 8
Mean UCL CL LCL
 Ishikawa Diagrams
• To find all causes in a systematic way
• The 9M (used in manufacturing)
– Machine (technology)
– Method (process)
– Material (Includes Raw Material, Consumables and
Information.)
– Man Power (physical work)/Mind Power (brain work)
– Measurement (Inspection)
– Milieu/Mother Nature (Environment)
– Management/Money Power
– Motivation
– Maintenance
• Process step in the case of services
 Pareto Chart
• To prioritize problems
• 20/80 rule
– 20 percentage of causes create the 80% of
problems
• It helps to focus on the biggest problem
which’s solution resulted in the highest
effect.
• Data can be measured in frequency and in
value.
 Example
• The following dates reflects problems in a given process.

A A A B A A
B C C E D A
B B B C B B
C A D A B D
A D D D C A
A C B B B C
C B C A B C
A B E A A B
D A A A C A
A A F C A E

• a) Use Pareto chart, to determine that causes which have the highest effect on
problem.
• b) If the cost of problems are the following: A=2$, B=4$, C=3$, D=$7, E=5$, F=3$.
Does the results change?
 Solution I
Freq. Cumulated % cumulated
freq. %

A 22 22 36,70% 36,70%
B 15 37 25,00% 61,70%
C 12 49 20,00% 81,70%
D 7 56 11,70% 93,30%
E 3 59 5,00% 98,30%
F 1 60 1,70% 100,00%

We should fix problem A, B and C, and thus we can eliminate 81,70% of the problems.
 Solution II
freq cost value value % cum%
B 15 4 60 29,0% 29,0%
D 7 7 49 23,7% 52,7%
A 22 2 44 21,3% 73,9%
C 12 3 36 17,4% 91,3%
E 3 5 15 7,2% 98,6%
F 1 3 3 1,4% 100,0%

So we should eliminate problem B, D, A, and thus we can save 73,9% of the costs.
Video - Kaizen

Shortening Lead time

 7 new tools for improvement
• Affinity diagram
• Interrelationship diagram
• Tree Diagrams
• Priorization Grid
• Matrix Diagram
• Process Decision Program Chart
• Activity Network Diagram
 Priorization Grid
• Make decisions based on multiple criteria
• Steps
– Determine goals
– Determine criteria
– Weight criteria
– Ranking criteria on the base of average weights
– Rank each alternative with respect to the criteria. (add the rates
for each alternative, and determine the ranking)
– Multiply the criteria ranking (step 4) by each corresponding
alternative’s rank (step 5). The result the importance score
– Add the importance score for each alternative
– Rank alternatives according to importance
 Solution
Criteria Person 1 Person 2 Person 3 Mean No.

Ease of use 0,4 0,2 0,5 0,366 1

Maintenance 0,3 0,3 0,3 0,300 2

Cost 0,2 0,2 0.1 0,166 3

Expected life 0,05 0,1 0,05 0,066 5

Reputation 0,05 0,2 0,05 0,100 4

Σ 1 1 1
 Criteria 1 – Ease of use
Person 1 Person 2 Person 3 Total No.

A 1 1 1 3 1
B 2 3 2 7 2
C 4 4 4 12 4
D 5 5 5 15 5
E 3 2 3 8 3
 Criteria 2 - Maintenance
Person 1 Person Person 3 Total No.
2

A 2 2 1 5 1
B 1 3 2 6 2
C 5 5 4 14 5
D 4 4 5 13 4
E 3 1 3 7 3
 Criteria 3 - Cost
Person 1 Person 2 Person 3 Total No.

A 4 4 5 13 5
B 5 3 4 12 4
C 1 1 2 4 1
D 2 2 1 5 2
E 3 5 3 11 3
 Criteria 4 – Expected life
Person 1 Person 2 Person 3 Total No.

A 1 2 1 4 1
B 2 3 2 7 2
C 3 4 5 12 4
D 4 5 4 13 5
E 5 1 3 9 3
 Criteria 5 - Reputation
Person 1 Person 2 Person 3 Total No.

A 4 4 5 13 5
B 5 3 4 12 4
C 1 1 2 4 1
D 2 2 1 5 2
E 3 5 3 11 3
 Ease of Maintenanc Cost Expecte Reputat Imp
use e d life ion

weight 1 2 3 5 4
A 1 1 5 1 5 43
B 2 2 4 2 4 44
C 4 5 1 4 1 41
D 5 4 2 5 2 52
E 3 3 3 3 3 45
Best alternative: C
Thank you for your attention
Quality theories – The
Japanese Way II.
Quality management
Lecture 6.
History of quality management
Early 1920 Scientific management (Taylor, Gilbreth)
1920s Statistical process control (Shewart)
1930s Acceptance sampling (Dodge, Roming)
1940s Military standards introduced
1950s Quality management in Japan (Deming,
Juran)
1960s Taguchi method, and quality tools
1970s Quality becomes strategic (USA)
1980s Introduction of LEAN, TQM, Baldrige Award
1990s Reengineering, Six Sigma
2000s Supply chain management, improvement of
supplier development, LEAN, Six sigma
become popular, contingency theory
 Juran
• Quality problems are rooting in
insufficient and ineffective
planning for quality
• In traditional way:
– Planning determine the tools
for producing goods
– 20% of the operating process
is waste, it is planned into the
product or process
– Instead of quality improvement
they only do quality control
• Juran trilogy
– Planning
– Control
– Improvement
 Feigenbaum
• Father of Total Quality
Control (TQC)
• the entire organization
should be involved in
quality improvement
• The quality is poor
– If the product is designed
incorrectly (engineering)
– If the product is released in
the wrong market
– If the customer relationship
is not proper. (marketing)
• 3 steps of improvement
• 4 deadly diseases
 Taguchi
• Quality definitions: quality is measured in terms of loss to
society if the service not performed as expected.
• Quality Loss Function (QLF): any deviation from target
value results in loss to society
• Robust Design: products should be designed to be
defect-free
– Concept design (technology and process choices)
– Parameter design (select parameters which have an effect on
quality – amount of training, heights of a paper)
– Tolerance design (deals with decrease variation in order to fulfill
the specification limits – use a higher-grade materials)
 QLF (Qualtiy Loss Function)

• L=K*V2
– K – constant, and
– V2- mean squared deviation from target value
• K=C/T2
– C - unit repair cost
– T – tolerance interval

LSL Target value USL

 Exercise - QLF
• Suppose the cost to repair a radiator on an
automobile is $200. Compute the QLF for
losses incurred as a result of a deviation
from target setting where a tolerance of
6±0,5 mm is required and the mean
squared deviation from target is (1/6)2.
• Solution:
• K=200/0,52=800
• L=K*V2=800*(1/6)2=$22,22/unit
 TAGUCHI PROCESS
• 1. Problem identification
• 2. Brainstorming session
– identify factors, its settings, interactions,
• Control factor
• Noise factor
– Identify objectives
• The less is better
• Nominal is best
• The more is the better
• Experimental design
– Offline experimentation (number of replications)
• Experimentation
– Orthogonal array (determined by the number of factors and levels)
– Record the result
– Compute average performance for each factor
– Showing the best outcomes
• Analysis (which level of each factor is the proper one)
• Confirming experiment (validate results)
Thank you for your attention!
Quality theories

Quality management
Lecture 3.
History of quality management
Early 1920 Scientific management (Taylor, Gilbreth)
1920s Statistical process control (Shewart)
1930s Acceptance sampling (Dodge, Roming)
1940s Military standards introduced
1950s Quality management in Japan (Deming,
Juran)
1960s Taguchi method, and quality tools
1970s Quality becomes strategic (USA)
1980s Introduction of LEAN, TQM, Baldrige Award
1990s Reengineering, Six Sigma
2000s Supply chain management, improvement of
supplier development, LEAN, Six sigma
become popular, contingency theory
 Quality and taylorism
• Basics of taylorism
– The whole process is divided into short steps (division of labor)
– It is not the worker who determine the process/movements -specialist do
that (task management)
– Workers are selected and trained for work
– Standard movements and tools, detailed instructions (standardization)

• Quality effects:
– Product and process design were separated from the repair of product
– Workers were not responsible for repairing of product
– Quality control department was established to control the product at
the end of the process
– The responsibility for quality were spread over in the company
 Deming
• Statistical studies
• 50’Japan
• Rebuilt industry
• 70’ America
seminars
• 14 points
• Father of TQM
(Total Quality
Control)
 1. Create a constant purpose
toward improvement.
•Plan for quality in the long term.
•Resist reacting with short-term solutions.
•Don't just do the same things better – find
better things to do.
•Predict and prepare for future challenges,
and always have the goal of getting better.
 2. Adopt a new philosophy

•Embrace quality throughout the organization.

•Put your customers' needs first, rather than react to
competitive pressure – and design products and services to
meet those needs.
•Be prepared for a major change in the way business is done.
It's about leading, not simply managing.
•Create your quality vision, and implement it.
 3. Stop depending on
inspections.
•Inspections are costly and unreliable – and they don't
improve quality, they merely find a lack of quality.
•Build quality into the process from start to finish.
•Don't just find what you did wrong – eliminate the "wrongs"
altogether.
•Use statistical control methods – not physical inspections
alone – to prove that the process is working.
 4. Use a single supplier for
any one item.
•Quality relies on consistency – the less variation you have
in the input, the less variation you'll have in the output.
•Look at suppliers as your partners in quality. Encourage
them to spend time improving their own quality – they
shouldn't compete for your business based on price alone.
•Analyze the total cost to you, not just the initial cost of the
product.
•Use quality statistics to ensure that suppliers meet your
quality standards.
 5. Improve constantly and
forever.

•Continuously improve your systems and processes.

Deming promoted the Plan-Do-Check-Act
•approach to process analysis and improvement.
•Emphasize training and education so everyone can do
their jobs better.
•Use kaizen as a model to reduce waste and to improve
productivity, effectiveness, and safety.
 6. Use training on the job.

•Train for consistency to help reduce variation.

•Build a foundation of common knowledge.
•Allow workers to understand their roles in the "big picture."
•Encourage staff to learn from one another, and provide a
culture and environment for effective teamwork.
 7. Implement leadership.
• Expect your supervisors and managers to understand
their workers and the processes they use.
• Don't simply supervise – provide support and resources
so that each staff member can do his or her best. Be a
coach instead of a policeman.
• Figure out what each person actually needs to do his or
her best.
• Emphasize the importance of participative management
and transformational leadership.
• Find ways to reach full potential, and don't just focus on
meeting targets and quotas
 8. Eliminate fear

•Allow people to perform at their best by ensuring that

they're not afraid to express ideas or concerns.
•Let everyone know that the goal is to achieve high quality
by doing more things right – and that you're not interested
in blaming people when mistakes happen.
•Make workers feel valued, and encourage them to look for
better ways to do things.
•Ensure that your leaders are approachable and that they
work with teams to act in the company's best interests.
•Use open and honest communication to remove fear from
the organization.
 9. Break down barriers
between departments.
•Build the "internal customer" concept – recognize that
each department or function serves other departments
that use their output.
•Build a shared vision.
•Use cross-functional teamwork to build understanding
and reduce adversarial relationships.
•Focus on collaboration and consensus instead of
compromise.
10. Get rid of unclear slogans.

•Let people know exactly what you want – don't make

them guess. "Excellence in service" is short and
memorable, but what does it mean? How is it achieved?
The message is clearer in a slogan like "You can do
better if you try."
•Don't let words and nice-sounding phrases replace
effective leadership. Outline your expectations, and then
praise people face-to-face for doing good work.
 11. Eliminate management by
objectives.
•Look at how the process is carried out, not just numerical
targets. Deming said that production targets encourage
high output and low quality.
•Provide support and resources so that production levels
and quality are high and achievable.
•Measure the process rather than the people behind the
process.
There are situations in which approaches like Management By Objectives are
appropriate, for example, in motivating sales-people. As Deming points out,
however, there are many situations where a focus on objectives can lead
people to cut corners with quality. You'll need to decide for yourself whether or
not to use these approaches. If you do, make sure that you think through the
behaviors that your objectives will motivate.
 12. Remove barriers to pride
of workmanship.
•Allow everyone to take pride in their work without being
rated or compared.
•Treat workers the same, and don't make them compete
with other workers for monetary or other rewards. Over
time, the quality system will naturally raise the level of
everyone's work to an equally high level.
 13. Implement education and
self-improvement.
•Improve the current skills of workers.
•Encourage people to learn new skills to prepare for
future changes and challenges.
•Build skills to make your workforce more adaptable to
change, and better able to find and achieve
improvements.
 14. Make "transformation"
everyone's job.
•Improve your overall organization by having each person
take a step toward quality.
•Analyze each small step, and understand how it fits into
the larger picture.
•Use effective change management principles to
introduce the new philosophy and ideas in Deming's 14
points.
 Total Quality Management
• Main Principles:
– Customer focuse
– Continuous improvement
– Total committment
• Supporting principles
– Leadership
– Training and education
– Supporting elements
– Communication
– Reward
– Measurement
 Crosby
• Crosby’s four theorem
– Quality is the conformance
to the requirements of
customers. The whole
system must be developed
according to this approach.
– The main goal is zero-
defect. Do the right product
at the first time.
– Thus the applied method
for quality assurance is
prevention not control.
– Quality can be a source of
profit. Quality costs must
be evaluated, and on the
basis of these costs,
corrective actions should
take place.
Thank you for your attention!
Quality management

Lecture 0
European way of quality management
European way I. – ISO 9000

Developed in 1987, implemented in 1994

ISO 9000:1994 quality assurance
Critics
Cumbersome
Rigid (missing continuous improvement)
Careless about human resources
Careless about economical questions
Updated in 2000, 2008, 2015
Update in 2000

TQM principles were built into ISO

Customer focus (market researches)
Continuous improvement
Total committment
Update in 2008

There were no really big changes

Update in 2015
Risk evaluation was built into the standards
The new definition of the companies’
enviroment (stakeholders instead of
customers)
Give more tasks to managers
High Level Structure (HLS): all ISO standards
follow the same structure
All chapters should be developed even if it is
not valid for the company and should be
explained
 International Organization for
Standardization (ISO)

ISO 9001:2015 Quality management systems —

Requirements
https://www.iso.org/obp/ui/#iso:std:iso:9001:ed-5:v1:en
Clausules ISO 9001
2008 2015
Management Context of the
system organization
Management Leadership
commitment
Resource
management
Support
Product realization Operation
Measurement Performance
analysis evaluation
Improvement
4 Context of the organization 8 Operation
4.1 Understanding the organization and its context 8.1 Operational planning and control
4.2 Understanding the needs and expectations of 8.2 Requirements for products and services
interested parties 8.3 Design and development of products and
4.3 Determining the scope of the quality services
management system 8.4 Control of externally provided processes,
4.4 Quality management system and its processes products and services
5 Leadership 8.5 Production and service provision
8.6 Release of products and services
5.1 Leadership and commitment
8.7 Control of nonconforming outputs
5.2 Policy
9 Performance evaluation
5.3 Organizational roles, responsibilities and
authorities 9.1 Monitoring, measurement, analysis and
evaluation
6 Planning
9.2 Internal audit
6.1 Actions to address risks and opportunities
9.3 Management review
6.2 Quality objectives and planning to achieve them 10 Improvement
6.3 Planning of changes 10.1 General
7 Support 10.2 Nonconformity and corrective action
7.1 Resources 10.3 Continual improvement
7.2 Competence
7.3 Awareness
7.4 Communication
7.5. Documentatied information
European way II. – European Quality
Award (EQA)
Enablers Results

Leadership Process, People results Key

People
product, results
100 points services 100 points
100 points

Strategy 150 points 150 points

Customer
100 points results
100 points

Partnershi
p& Society
resources results 100 points
100 points

Learning, creativity and innovation

https://www.efqm.org/efqm-model

The EFQM Lens series uses the guiding

principles and seven criteria of the EFQM Model
as the basis for focusing on a specific topic,
such as the United Nations Sustainable
Development Goals (UN SDGs), Circular
Economy, or a specific sector, for example
Education. Organisations find it important to
integrate and embed specific management
topics or to ensure sector good practices within
its Purpose, Ecosystem, Leadership, Culture,
Operations, and Results.
EFQM- 2021
RADAR logic
Thank you for your attention!
Quality Managmenet
09. Lecture

Lean System & Six Sigma

Value

That customer is willing

to pay
That changes products
color, function, shape,
other attributes so that
the product is getting
closer to the customers
requirements
That we do right at first
time
Wastes

Those processes which directly do not create

value for customers (muda, mura, muri) :
that are not necessary, and must be eliminated
That are necessary, because these are supporting
value-add processes, cannot be eliminated (like
transporting)
Muda – 7 wastes of lean
Mura – not leveled workflow
Muri – overloading of workers and assets
Lean thinking

Operation

Traditional improvement

Lean improvement

Non value-add process

Value-add process
Supporting goals

A balanced system,
smooth, rapid flow of
materials and/or work
Supporting goals:
eliminate waste,
especially exess
inventory
Eliminate disruption
Make the system flexible
There are 7 wastes in LEAN
(TIMWOOD):
Inventory
Overproduction
Waiting
Unnecessary
transportation
Processing waste
Inefficient work methods
Defects
Eliminate Disruption

Bad quality products

Poka Yoke, Jidoka
Machine Breakdowns
TPM, OEE
Setup of the Equipments
SMED
Late Deliveries
JIT
Flexible system

Short sequences one-piece flow

Frequent rapid setups
short lead time
Tools of LEAN relating to
quality
Quality improvement - Jidoka

Autonomation – automatic detection of defects during

production.
It consist two activities:
One for detecting defects when they occure
Another for stopping production to correct the cuase of defects.
Fail- Safe methods – Poka Yoke
The contact method identifies
product defects by testing the
product's shape, size, color,
or other physical attributes.
The fixed-value (or constant
number) method alerts the
operator if a certain number of
movements are not made.
The motion-step (or
sequence) method determines
whether the prescribed steps
of the process have been
followed.
Total Productive Maintenance

Careful user
Preventive Maintenance
TQM principles
Overall Equipment Effectiveness
Breakdowns
Speed loss
Quality loss
Single Minute Exchange of Die

Analysis of process step

Internal
External
Just in time

Frequent deliveries
In small amounts
Kan ban system – signal to transport
Cooperation based on trust
Kaizen

Improvement in small steps

Refers to the philosophy of continuous
improvement
Video
3 gen:
Gem-ba – actual place
Gen-butsu – actual part
Gen-jitsu – get the facts
Kanban Production Control System
Kanban is the Japanese
word meaning “signal”
or “visible record”
Sign to produce
Sign to transport
Paperless production
control system
Preventive maintenance and housekeeping
5S
Sort –decide which item
is needed
Straighten – needed
items can be assessed
quickly
Sweep – clean workplace
Standardize – use
standard intructions
Self discipline – make
sure that employees
understand the need for
uncluttered workplace
Pull system

Instead of Pulsh system (where the product is

push through the system regardless of
whether the machine can revieve it or not)
Pull (the kanban signal pull the product
through the system)
Six Sigma
 1 σ – 691 462 ppm
Video
2 σ – 308 538 ppm
3 σ – 66 807 ppm
4 σ – 6 210 ppm
3 sigma process 5 σ – 233 ppm 1 sigma process
6 σ – 3,4 ppm

LSL USL

3σ 3σ

5% is out of limits!
DMAIC PDCA
Define
Measure Plan
Analyze Do
Improve Check
Control Act
1. Define

Determine case studies

RUMBA
Project evaluation
Pareto analysis
Problem defintion
 Project Risk and Return matrix
100
Rwturn factor

90
80 STARS ?
70
60
50
40
30
LOW-HANGING FRIUTS DOGS
20
10
0
0 10 20 30 40 50 60 70 80 90 100 Risk factor
2. Measure

Select process outcome

XY matrics - relationship
FMEA – risk of parts
SPC – process performance
Verifying measurements
R&D evaluation
 3. Analysis
Define objectives
Define Xs
Analyse source of variation

4. Improve
Off-line experiments – Taguchi experiment

5. Control
Thank you for your attention!