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Chapter - 1-QM
Chapter - 1-QM
Chapter - 1-QM
IEng 5181
CHAPTER ONE
DEFINITIONS OF QUALITY IN GENERAL
Crosby (1979)
Quality is conformance to requirements or specifications
Juran (1974)
Quality is fitness for use or purpose
ISO 9000:2000
Quality is the degree to which a set of inherent characteristics fulfills requirements
The totality of features and characteristics of product or service that bears
on its ability to satisfy stated needs. (ANSI and ASQC
(American National Standards Institute/American Society of Quality Control)
Quantified
W.Edwards Deming
A predictable degree of uniformity and dependability at low cost and suited to
market
Bill Conway
Development, manufacture, administration and distribution of consistently low cost
products and services that customers need and want.
Quality of a product or service is the fitness of that product or service for
meeting or exceeding the intended use as required by the customer.
Continued..................
In general, managing for quality has become the overall management function to
assure that customer requirements are identified and met with satisfaction
conforming to the requirements.
The needs of the customer may change with time and implies a periodic
review of the requirements for quality.
As all business start with the customer, enterprises small, medium and large
everywhere are increasingly conscious of the competitive potential of quality.
A customer buying a product has certain expectations which are determined by
several factors, and the intended use, appearance, and performance that affects
these expectations.
Thus the Quality of a product depends on its ability to fulfill the customer’s
expectation.
Evolution of quality Era
SQC (1960-1980’s)
Inspection (1940-1960’s)
Foreman (1920-1940’s)
Craftsman (1900-1920’s)
Evolution of quality –Means & Focus
1975 1980 1985 1990 1995 2000
Total
Productivity Quality TQC/TQM
Quality
Conformance Durability
Reliability Serviceability
Features Aesthetic
Performance
Product
Service
Accuracy Consistency
Responsiveness Access
Perceived Quality
04/01/2022
Eight Dimensions of Quality
A. Product
The quality of a product can be evaluated in several ways. It is often very
important to differentiate these different dimensions of quality. Garvin
(1987) provides an excellent discussion of eight components of dimensions
of quality. The key points concerning these dimensions of quality are:
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Dimensions of Quality: Service (cont.)
Courtesy/friendliness:
How are customers treated by employees?
Consistency
Is the same level of service provided to each customer
each time?
17
Is your newspaper delivered on time every morning?
Dimensions of Quality: Service (cont.)
18
Quality Characteristics
Physical - length, weight, voltage, viscosity
Specifications
specifications.
Wide spread use of statistical quality control (SQC), in which inferences are
made about the quality of the population of manufactured parts and products
based on a sample.
I) Control charts
2. Continuous improvement
Continuous improvement
Strategic approach to quality Strategy for top management involves Sequencial The quality council guides the
system in creating the structure to quality system
continually promote the first 13
points in a none ending cycle
Measurement of quality All of them believe that quality is measurable but from different angles
Training and education 6th and 13th points, emphasis on The 8th step, more emphasis on the Didn’t explicitly call for education
statistical training creation of conductive environmental
climate
Goal formation Arbitrarly established numerical The 10th point deals with th Recommend annual quality
goals should be avoided, no need for importance of employee improvement programs with
short term goals involvement to set measurable specified goals
goals
in waste.
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2. Cost of quality
“Cost of quality is the expense of non conformance – the
cost of doing things wrong.”
36
Understand Quality Costs
37
Two Big Categories of Cost of Quality
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2.2. Cost of Poor Quality
2.2.1. Internal Failure Costs
• Scrap costs • Process downtime
– costs of poor-quality products costs
that must be discarded,
including labor, material, and – costs of shutting
indirect costs down productive
• Rework costs process to fix
– costs of fixing defective problem
products to conform to • Price-downgrading costs
quality specifications – costs of discounting
• Process failure costs poor-quality
– costs of determining why products—that is,
production process is selling products as
producing poor-quality
products ―seconds‖
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2.2.2. External Failure Costs
Benefit
Appraisal Costs
Index numbers
– ratios that measure quality costs against a base value
– labor index
• ratio of quality cost to labor hours
– cost index
• ratio of quality cost to manufacturing cost
– sales index
• ratio of quality cost to sales
– production index
• ratio of quality cost to units of final product
44
2.3.1 Why Measure Quality Costs?
45
2.3.2. Quality–Cost Relationship
Cost of quality
– Difference between price of non conformance and
conformance
– Profitability
46
• In the long run, quality is free
2.3.3.Quality Management and Productivity
Productivity
ratio of output to input
Yield: a measure of productivity
Yield=(total input)(% good units) + (total input)(1-%good units)(% reworked)
or
Y=(I)(%G)+(I)(1-%G)(%R)
47
Product Cost
Product Cost ( K d )( I ) ( K r )( R )
Y
where:
Kd = direct manufacturing cost per unit
I = input
Kr = rework cost per unit
R = reworked units
Y = yield
48
Computing Product Yield for Multi stage Processes
Y = (I)(%g1)(%g2) … (%gn)
where:
I = input of items to the production process that
will result in finished products
gi = good-quality, work-in-process products at
stage i
49
Quality–Productivity Ratio
QPR
productivity index that includes productivity and quality costs
(non-defective units)
QPR =
(input) (processing cost) + (defective units) (reworked cost)
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2.3.4 How to Prevent Poor Quality
51
Management is Responsible
Management decides what to produce in terms
of Products (goods and / or services)
Management assigns responsibilities to produce
products
Management is accountable for effectively using
resources to produce products
52
Summary
Understand quality costs enables you to:
- Understand hidden costs
- Reduce and eliminate unnecessary cost
- Prevent problems from happening
53
Independent work
54
Individual assignment
Assignment 1.
Prepare a brief note on the history, basic tents and approaches to
quality management of the following Quality Gurus.
1.Joseph M. Juran
2.Edwards Deming
3.Armand V.Feigenbaum
4.Philip B.Crosby
5.Kaoru Ishikawa
6.GenichiTaguchi
Submission date: 26/04/2014
The End!!!!