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CHAPTER 09
MANAGEMENT OF QUALITY
Teaching Notes
This chapter is devoted to quality management. It presents a definition of quality, discusses the
importance of quality and the determinations of quality, highlights the views of leading experts on
modern quality management, and describes the total quality management approach. A later chapter is
devoted to quality control procedures and quality improvement.
Total Quality Management (TQM) is a popular approach that:
1. Promotes understanding and fulfilling the needs of customers.
2. Defines quality in terms of customer requirements.
3. Views quality improvement as a never-ending quest to improve the process.
4. Uses statistical reasoning with data to solve problems and to improve the process.
5. Emphasizes the role of leadership systems in improving quality.
6. Utilizes appropriate education and training for everyone in the organization in a continuous
fashion.
7. Views quality as not only a technical operational issue but also views it from a strategic
orientation that leads to enhanced long-term planning.
8. Encourages empowerment of the employees in the workplace to improve job design, job
performance, and continuous improvement in all aspects of the organization.
TQM is an approach that views quality improvement as a never-ending quest to improve the
conversion process so that the level of customer satisfaction continually rises. Because the Japanese
have been so successful in continuously improving the quality of their products and services, Kaizen,
or continuous improvement, has become an extremely popular and widely accepted managerial
approach to improve quality on a daily basis. The old adage, “if it ain’t broke, don’t fix it,” has a rather
hollow ring to it these days. A more appropriate message today would be “just because it ain’t broke
doesn’t mean it can’t be improved.”
The material in this chapter is divided into the following major topics:
1. Overview of TQM
2. Problem Solving
3. Continuous Process Improvement
a. Process Mapping
b. Process Analysis
c. Process Redesign
4. Seven Quality Tools
a. Check Sheets
b. Flowcharts
c. Scatter Diagrams
d. Histograms
e. Pareto Charts
f. Control Charts
g. Cause-and-Effect Diagrams
5. Strategic Issues in Implementing TQM
6. Plan-Do-Study-Act Cycle
7. Methods for Generating Ideas
a. Run Charts
b. Brainstorming
c. Quality Circles
d. Benchmarking
5. a. Various student responses are possible regarding whether product reviews (negative or
positive) influence their purchasing decisions.
b. Among the possible reasons: Often these are the extremes - A customer is either very
satisfied or very dissatisfied or a customer receives something in return for a review, such
as discount coupons or a small monetary reward.
c. Student answers will vary regarding whether they provide feedback about the helpfulness
of a product review.
15. a. Pareto Analysis:Assume that a company has just been bought by another company. Based
on an initial study, it has been established that the organization is suffering from numerous
quality problems. A committee is formed to study the quality-related problems. One of the
first tasks of the committee is to enumerate the various problems experienced by this
company and to identify the more important problems so that they can take corrective
action.In this context, the company is considering to use Pareto analysis to differentiate
the fewimportant problems from many trivial problems.
b. Histogram: A company is having problems controlling the quality of the average diameter
of radial tires. The quality control manager of a tire manufacturing company wants to
determine the shape of the tire diameter distribution so that he can determine whether
excessively large diameters or excessively small diameters are occurring. A histogram
is drawn to shed light on this problem.
c. Flowchart:The company has moved one of its plants to a new location. In the process of
moving, the layout of the plant was altered. Because of the alteration, the company is
having difficulty locating material and controlling its operations. The plant manager thinks
there is a more effective way to determine the layout of the plant. He proceeds by
assigning the Production and Inventory Control Manager to determine where in the
process problems occur. The Production and Inventory Control Manager utilizes a
flowchart to diagram the steps of the manufacturing process in the plant. After analyzing
the results from the flowchart, the company will consider other options for the plant
layout.
d. Scatter Diagram: A drug manufacturer wants to determine if there is a significant
relationship between the dosage of its new drug and a patient’s body temperature. It
collects information from 12 patients that were administered several different drug
dosages. Plotting the scatter diagram will show the degree and the direction of the
relationship between the two variables.
16. Steps of process improvement:
a. Map the process: Identify each step in the process along with its input and outputs, the
people involved, and the decisions that are made. Document measures such as time, cost,
space used, employee morale, turnover, accidents, working conditions, revenues, profits,
quality, and customer satisfaction. Prepare a flowchart of the process.
b. Analyze the process: Ask questions about the process: Is it logical? Are any steps
missing? Is there any duplication of steps? Ask questions about each step: Does the step
add value? Could the step be eliminated? Does any waste occur at the step? Could the
process time be shortened? Could the cost to perform the step be reduced? Could two (or
more) steps be combined?
c. Redesign the process: Using the results of the analyze step, redesign the process and
document improvements.
17. Flowchart: A manager trying to improve a process could start with a flowchart to determine
possible points in the process where problems occur.
Check Sheet: After determining where defects occur, the manager could use a check sheet to
record the different defects generated at the various points in the process.
Pareto Analysis: The manager could take the results from the check sheet and arrange the
defects in order of frequency.
Cause-and-Effect Diagram: The manager could take the most frequently occurring problem
and study that problem in greater detail using a cause-and-effect diagram.
Taking Stock
1. The tradeoff involved in deciding whether to offer a product or service guarantee is increased
revenue vs. increased cost. The guarantee should drive more business and revenue. However,
if the quality of the product or service does not meet customer expectations, external failure
costs could increase due to customers asking for refunds. Therefore, any company considering
offering such a guarantee will need to increase spending on prevention and appraisal costs to
ensure that external failure costs do not outweigh the benefits of increased revenue.
2. Setting priorities for quality improvement needs to transcend the entire organization.
Therefore, at the macro level, upper management needs to be involved heavily in determining
the desired level of quality. Obviously, the marketing department, due to its close contact with
the customers, can provide valuable information when defining quality. Upper-level manager
involved in strategic planning, due to their knowledge of competition, should be involved. Of
course, engineering, production, and the quality control department will not only be able to
answer technical questions about quality improvement but also will be in a position to
evaluate whether quality goal setting done at the macro level was reasonable. Finally,
accounting and financial personnel can provide valuable information about the cost of quality.
3. Technology has had a profound impact on quality. Improvement in measurement systems has
drastically improved the measurement of quality. Computer technology has enabled many
companies to perform on-line, real-time statistical process control, which has enabled them to
respond to quality problems faster. Due to technological improvements in computerized
design, products are designed better and thus have significantly fewer quality problems. The
artificial intelligence systems forewarn potential problems before they occur. Due to
computerized equipment, processes are able to hold tighter tolerances also.
Pareto Diagram
12
7
6
1
Check Sheet
Lube & Oil Brakes Tires Battery Trans.
2.
Problem Check Sheet
Customer Type Noisy Failed Odor Warm Totals
Residential 10 7 5 3 25
Commercial 3 2 7 4 16
Totals 13 9 12 7 41
Pareto Diagrams
7 7
5
4
3 3
2
3 • • • •
3. 2 • • •
1• • • • • • • • • • •
0 • • • • • • • • • • • •
The run charts seems to show a pattern of errors possibly linked to break times or the end of the shift.
Perhaps workers are becoming fatigued. If so, perhaps three 10-minute breaks spread out over the shift
instead of two 15-minute breaks (one in the in the morning and one in the afternoon) could reduce
fatigue and some errors. In addition, errors are occurring during the last few minutes before noon and
at the end of the shift, and those periods should be given management’s attention.
4. Time Count Time Count
1:00–1:04 1 1:40–1:44 3
1:05–1:09 2 1:45–1:49 2
1:10–1:14 2 1:50–1:54 3
1:15–1:19 1 1:55–1:59 2
1:20–1:24 1 2:00–2:04 7
1:25–1:29 3 2:05–2:09 4
1:30–1:34 1 2:10–2:14 6
1:35–1:39 2 2:15–2:20 2
Run Chart
7
6
5
4
3
2
1
0
Time
Emergency calls appear to fluctuate around an average until 2:00 AM, and then appear to
increase until about 215 AM, and then decrease again. The manager may want to try to find
out why 2 AM – 215 AM is busier.
5.
Person Lamp
Bulb
missing
Did not turn
completely on
Burned Bulb
out bulb loose
Lamp fails
to light
Power off Not
plugged in
Outlet
defective Defective
Other Cord
6. Supplier
Insufficient
capacity
Inadequate
recordkeeping
Poor
scheduling
Late
deliveries
Weather
Traffic Wrong
information
Breakdown Missing
information
Scheduling Late to
Capacity supplier
Delivery Orders
system
7.
Methods Materials
Procedures Handling
Controls Suppliers
Tolerances Specifications
Sequences Tolerances
Timing Controls
Consistency Environment
Poka-Yoke Quality
Consistency
Defective
Machine
Quality at Adjustment Parts
Organization
the Source
Culture Operation
Personnel Machine
8. a.
Scatter Diagram
8
D
7
a
y 6
s 5
4
A
3 Days Absent
b
s 2
e 1
n
0
t
0 20 40 60 80
Age
b.
Scatter Diagram
6
5
E
r 4
r
3
o
r 2 Errors
s
1
0
0 20 40 60 80 100
Temperature
In the first scatter diagram, days absent appear to decrease as the age of the worker increases.
In the second scatter diagram, the error rate (number of errors) decreases as temperature
increases to about 70 degrees, and then increases as temperature increases beyond 70 degrees.
Start
9.
Gather and pack
the materials in
the book bag
Are
all items No
packed?
Yes
Travel to
the library
Find an adequate
place to study
Is
the
Yes
location too
crowded?
No
Study
Are
all items No
packed?
Yes
Stop
Cause-and-Effect Diagram 10.
Cause-and-Effect Diagram
Night Type of
Ice vehicles
Sun light
Rain
Oncoming headlights Age of vehicle
Slippery roads
Hills or curves
Condition of
Wind vehicle
Accidents
We identified four possible major reasons for out-of-stock complaints on the cause-and-effect diagram
shown below:
1. Forecasting
2. Supplier Deliveries
3. Spoilage
4. Inventory Inaccuracies
Further analysis of these four areas is necessary before taking any corrective action.
In addition to the main goal of reducing the out-of-stock problem, Tip Top needs to investigate the
store/parking lot conditions and the checkout line/pricing problems. However, these problems do not
occur nearly as often, and the consequences of these problems are not as serious as the out-of-stock
problem.
Customer Checkout
Unable to Find Store/Parking Line/Pricing Quality of
Date Out-of-Stock Product Lot Conditions Problems Products Other*
June √√ √√ √√√ √√√√√ √√√√√
1
√√ √√
June √√√√ √√√√√ √√√√ √√√√√
8
√√
June √√√ √ √√ √√√√√ √√√√√ √√
15
√√√√√
June √√√√√ √√√ √√√ √√ √√√√
22
70
60
50
40
30
20
10
0
Run Charts
Out-of-Stock Complaints
14
12
10
6 Complaints
0
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27
Checkout Line/Pricing Complaints
12
10
6
Complaints
4
0
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27
1
0.5
0
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27
Case: Tip Top Markets
Cause-and-Effect Diagram
0.5
1.5
2.5
0
1
2
Advertisements
6/1
coupons Lateness
Weather
6/8
Weather
Supplier capacity
Demand
variability
Business
cycle Backorders 6/15 6/22 6/29
7/6
Out of Stock)
Other Complaints
Machine errors
7/13 7/20 7/27
(bar code)
Poor
Human error
refrigeration
Contamination
Theft
Lost
Poor quality
Complaints
merchandise
products
Cause-and-Effect Diagram for Out-of-Stock Complaints
Inventory Inaccuracies
Spoilage
Enrichment Module: TQM Exercise
Suppose that you have just been hired by the Bloor Company as a consultant to assist it in its quality
improvement efforts.
Bloor is a supplier to a wide range of companies, including several in the auto industry. The
company’s desire to institute a total quality approach has come from a number of directions. Senior
management has become aware of successes in other companies’ quality efforts, including those of
several competitors. Apart from that, the company is also being pressured by many of its customers to
adopt a more formal approach to quality. For these and other reasons, Bloor senior management has
decided to develop a TQM approach.
Towards that end, in a series of brainstorming sessions, senior management has put together a list of
possible strategies and tactics that would form the foundation of the company’s effort to achieve a
TQM operation. Your immediate task is to review the list, and to identify those items that are
reflective of a TQM approach.
The list of questions is below. Indicate by placing either a “Yes” or a “No” beside each question
whether or not you feel that the item reflects a TQM approach.
TQM (?) Strategy or Tactic
[YES or NO]
Agree?
_____ 1. Emphasize a company-wide program for finding defectives before they are sent out.
_____ 2. Use a systematic process analysis effort to improve processes throughout the company.
_____ 3. Strive to maintain high-quality ethical standards by not engaging in practices such as
obtaining information about competitors’ quality efforts.
_____ 4. Have senior management carefully design the TQM process, but then turn it over to the
employees with the authority they need to operate it.
_____ 5. Set up a method for achieving customer satisfaction of both internal and external
customers.
_____ 6. Put every member of the organization through the same quality training program to prepare
them to operate in a TQM environment.
_____ 7. Benchmark other companies’ operations, even those that are not in the same industry.
_____ 8. Set a reasonable time limit for the completion of the TQM effort so that it doesnot become
a never-ending program.
_____ 9. Ensure that all decisions are approved by senior management to keep them actively
involved.
_____ 10. Train employees to work effectively in teams, and give the teams some degree of
autonomy.
Answers TQM—Strategy or Tactic
1. No. Prevention of defects should be the emphasis—not detection of errors.
2. Yes.
3. No. It is not unethical to obtain information about the competitor’s quality practices as long as
it is done in a legal and ethical fashion.
4. No. The senior management should work with the rest of the company to design the TQM
process.
5. Yes. Many companies forget about internal customers and only consider external customers.
6. No. Different employees have different quality training needs.
7. Yes. Because certain industries have excelled in certain areas, a company may learn a great
deal about a specific function by benchmarking that function from a company outside the
industry.
8. No. Quality improvement programs should be a never-ending, continuous improvement effort.
9. No. Senior managers need not be involved actively in decision-making at the lower levels of
the organization and on the shop floor. (Too much detail for senior management.)
10. Yes. Teamwork and training are very important in successfully implementing a TQM system.
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*The humble enjoy continual peace; but in the heart of the proud
is envy and frequent indignation.
C H A P T E R VII.
That too much familiarity is to be shunned.
L AY not thy heart open to every one; but treat of thy affairs with
the wise and such as fear God.
Flatter not the rich; neither do thou appear willingly before great
persons.
Keep company with the humble and simple, with the devout and
virtuous; and confer with them of those things that may edify.
Be not familiar with any woman; but in general commend all good
women to God.
Desire to be familiar with God alone, and his angels, and fly the
knowledge of men.
We must have charity towards all; but familiarity with all is not
expedient.
C H A P T E R VIII.
Of avoiding superfluity of words.
I could wish that I had oftentimes held my peace, and that I had
not been in company.
But alas! often times in vain, and to no end; for this outward
comfort doth obstruct the inward consolation.
Therefore we must watch and pray, lest our time pass away idly.
C H A P T E R IX.
The obtaining of peace, and zeal for improvement.
How can he live long in peace, that meddles with the cares of
others, and little or seldom recollecteth himself within his own
breast?
Blessed are the single-hearted, for they shall enjoy much peace.
2. We are too much taken up with our own passions, and too
♦solicitous for transitory things.
But let us lay the axe to the root, that being freed from passions,
we may find rest to our souls.
C H A P T E R X.
Of the usefulness of adversity.
For then we more diligently seek God for our inward witness,
when outwardly we are contemned by men.
Many seek to fly temptations, and fall more ♦grievously into them.
6. He that only avoideth them outwardly, and doth not pluck them
up by the roots, shall profit little; yea, temptations will soon return
unto him, and he shall feel them worse than before.
Often take counsel in temptations; and deal not roughly with him
that is tempted.
*We know not often what we are able to do; but temptations shew
us what we are.
C H A P T E R XI.
Of avoiding rash Judgment.
T URN thine eyes unto thyself, and beware thou judge not the
deeds of other men.
If thou dost more rely upon thine own reason, than upon Jesus
Christ, late, if ever, shalt thou become illuminated.
C H A P T E R XII.
Of works done out of charity.
*For God weigheth more with how much love one worketh, than
how much he doth.
He doth well, that serveth his neighbour, and not his own will.
Often it seemeth to be charity, and it is rather carnality; because
natural inclination, self-will, hope of reward, and desire of their own
interest, are motives that men are rarely free from.
C H A P T E R XIII.
Of bearing with the defects of others.
*2. If one that is once or twice warned will not give over, contend
not with him; but commit all to God, that his will may be done, and
his name honoured in all his servants, who well knoweth how to turn
evil into good.
Study to be patient in bearing with the defects and infirmities of
others, of what sort soever they be; for that thou thyself also hast
many, which must be suffered by others.
*If thou canst not make thyself such a one as thou wouldst, how
canst thou expect to have another in all things to thy liking?
The liberty of others displeaseth us, and yet we will not have our
desires denied.
*But now God hath thus ordered it, that we may learn to bear one
another’s burdens: for no man is without fault: no man but hath his
burden; no man is self-sufficient; no man has wisdom enough for
himself: but we ought to bear with one another, comfort, help,
instruct, and admonish one another.
*For occasions make not a man frail, but shew what he is.
C H A P T E R XIV.
Of the examples of the holy Fathers.
These saints and friends of Christ, served the Lord in hunger and
thirst, in cold and nakedness, in labour and weariness, in watchings
and fastings, in persecutions, and many reproaches.
They hated their lives in this world, that they might possess their
souls in everlasting life!
All the day they laboured, and spent part of the night in prayer;
although, even while they laboured, they did not cease from mental
prayer.
3. They spent all their time usefully: all their hours of devotion
seemed short: and, by reason of the great sweetness they felt in
contemplation, they forgot the necessity of corporal refreshments.
They renounced all riches, dignities, honours, friends and
kinsfolk; they desired to have nothing of the world: they took no more
of any thing than was necessary for the sustenance of life.
*Help me, O Lord God, in thy holy service, and grant that I may
now this day begin perfectly; for that which I have done hitherto is
nothing.
It may fall out sundry ways that we break our resolution, and a
little omission of spiritual exercises seldom passes without some
loss.
The purpose of just men depends, not so much upon their own
wisdom, as upon the grace of God, on whom they always rely in
whatsoever they take in hand.
*For man doth propose, but God doth dispose; neither is the way
of man in himself.
5. If any accustomed exercise be sometimes omitted, either for
some act of piety, or profit to thy brother, it may easily afterwards be
recovered again.
Gird thy loins like a man against the assaults of the devil; bridle
thy appetite, and thou shalt the more easily bridle all the motions of
the flesh.
C H A P T E R XV.
Of the love of solitude and silence.
*2. One said, “As often as I have been among men, I returned
less a man;” and this we often find true, when we have been long in
company.
No man can speak safely, but he who is willing to hold his peace.
*And yet the security of the saints was always full of the fear of
God.
In thy closet thou shalt find what abroad thou often losest.
The more thou frequented thy closet, the more thou wilt like it; the
less thou comest thereunto, the more thou wilt loath it.
There she findeth rivers of tears, and may be so much the more
familiar with her Creator, by how much the farther off she liveth from
all worldly tumult.
5. Why art thou desirous to see that which is unlawful for thee to
enjoy? For the world passeth away, and the desire thereof.
Our sinful desires draw us to rove abroad: but when the time is
passed, what carriest thou home with thee, but a burdened
conscience, and a dissipated heart!
A merry going out often bringeth a mournful return, and a joyful
evening a sad morning.
So all carnal joys enter pleasantly, but in the end bite and sting to
death.
What canst thou see elsewhere, which thou canst not see here?
Behold the heaven and the earth, and all the elements; for of these
are all things created.
6. What canst thou see any where, that can long continue under
the sun?
Shouldst thou see all the things of this world, what were it but a
vain sight?
Lift up thine eyes to God in the highest, and pray to him to pardon
all thy sins.
*Leave vain things to the vain, but be thou intent upon those
things which God commandeth thee.
Shut thy door upon thee, and call unto thee Jesus thy beloved.
Stay with him in thy closet; for thou shalt not find so great peace
any where else.
Hadst thou not gone abroad, and harkened to idle rumours, thou
mightest the better have remained in peace: but so long as thou
delightest to hear novelties, thou must endure trouble of heart.
C H A P T E R XVI.
Of compunction of heart.
I F thou wilt make any progress, keep thyself in the fear of God,
and use not too much liberty.
Keep all thy senses under discipline, and give not thyself over to
trifling mirth.
2. The levity of our minds, and want of concern for our faults,
make us lose the sense of our inward state, and often laugh when
we have cause to weep.
There is no true liberty, nor right gladness, but in the fear of God,
and a good conscience.
Happy is he, that can abandon all that may defile or burthen his
conscience.
If thou hast not the favour of men, be not grieved at it; but grieve
that thou dost not carry thyself so warily and circumspectly as
becometh the servant of God.
*It is often better and safer that a man hath not many
consolations in this life, especially worldly ones. But that we have not
at all, or seldom, divine consolations, is our own fault, because we
do not altogether forsake vain comforts.
4. Didst thou oftner think of thy death, than of thy living long,
there is no question but thou wouldst be more zealous to amend.
But because these things enter not into the heart, and we still
love the things of the world, therefore we remain cold and slothful.
*Who is in the best case? He who can suffer something for God.
*Arise, begin this instant, and say, Now is the time to be doing,
now is the time to be striving, now is the time to amend.
But unless thou dost violence to thyself, thou shalt never get the
victory over sin.
C H A P T E R XVII.
Of the meditation of death.
T HIS life will soon be at an end: consider therefore how thy affairs
stand as to the next.
*Thou shouldest so order thyself in all thy thoughts and all thy
actions, as if thou wert to die to-day.
To-morrow is uncertain, and how knowest thou that thou shalt live
till to-morrow?
Alas! long life doth not always mend us; but often increaseth guilt.
Many die suddenly, and when they look not for it; for in such an
hour as you think not the Son of man cometh, Matthew xxiv. 44.
When that last hour shall come, thou wilt have a far different
opinion of thy whole life.
*4. How wise and happy is he, that laboureth to be such in his
life, as he would wish to be found at the hour of his death!
*Whilst thou art in health, thou mayst do much good; but when
thou art sick, I know not what thou wilt be able to do.
*Few by sickness grow better; and they who travel much are
seldom sanctified.
*5. Trust not in friends and kindred, neither put off the care of thy
soul till hereafter; for men will sooner forget thee, than thou art aware
of.
If thou art not careful for thyself now, who will be careful for thee
hereafter!
*But alas! that thou shouldst spend thy time no better here, where
thou mightest purchase life eternal! The time will come when thou
shalt desire one day or hour to amend in, and I cannot say it will be
granted thee.
6. Ah fool, why dost thou think to live long, when thou canst not
promise to thyself one day!