QUALITY CONTROL, ASSURANCE
& RELIABILITY
ET / PE ZC 434
BITS Pilani Lecture 5
Pilani Campus
RECAP
CROSBY’S PHILOSOPHY
JURAN’S PHILOSOPHY
COMPARISON OF DEMING, CROSBY AND JURAN PHILOSOPHY
BENCHMARKING
REFER CHAPTER 3 IN TEXTBOOK T1 FOR BENCHMARKING; THE
OTHER TOPICS ARE COVERED IN CHAPTER 2.
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JURAN TRIOLOGY (CORRECTED
SLIDE)
ADDED
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WHAT YOU CAN DO
WITH REFERENCE TO YOUR OWN ORGANIZATION / YOUR OWN
AREA OF WORK, YOU CAN REFLECT UPON:
WHICH TYPE OF QUALITY PHILOSOPHY DO YOU FOLLOW IN
YOUR ORGANIZATION ?
QUALITY COSTS – IDENTIFY THE TYPE OF QUALITY COSTS IN
YOUR AREA OF WORK. WHICH TYPE OF COST NEEDS IMPROVEMENT?
IDENTIFY VARIABLES AND ATTRIBUTES IN YOUR AREA
OF WORK
IDENTIFY WHICH AREA IN YOUR ORGANIZATION YOU WOULD LIKE TO
BENCHMARK AND WHY ?
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TODAY’S OBJECTIVES
QFD
QC TOOLS
TQM
QUALITY AUDITS
SERVICE QUALITY
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QFD
Hauser, J. R. and D. P. Clausing. 1988. “The House of Quality“, Harvard Business Review,
May/June, 1988
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QFD
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QFD
Customer Rating
Voice of the Customer
8
QFD
Customer Rating
Voice of the Customer
9
QFD
10
QFD
11
QFD
12
QFD
13
QFD
14
QFD
Customer Rating
Voice of the Customer
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x = Design Trade-offs
16
Benchmarking
17
Technical Competitive
Assessment
18
QFD
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QFD
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QFD
Product Planning
Product Development
Process Planning
Production Planning
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QFD - ADVANTAGES
• Evaluates competitor from 2 perspectives –
Customer and Technical
• Used to identify the degree of improvements
needed in the product and process
• Reduces the product development time as it
reduces product redesign
• Improves the communication between different
departments
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QFD - DISADVANTAGES
• Enormous amount of information must be gathered
• Matrix is too large
– Prioritize on important attributes
– Analyzes independent subsystems independently
• Customer priorities not clear
– Consider segmenting market
• QFD process is implemented in phases and hence time
consuming
• QFD is messy
– Not QFD, but rather the interaction between diverse groups is
cause
– Stick with it, the results are worthwhile
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OVERVIEW OF QUALITY CONTROL
TOOLS
PURPOSE OF THE TOOLS?
For problem solving of QC related issues by :
Analyzing data,
Identifying root causes,
Control fluctuations and
Prevent future problems.
HOW MANY TOOLS ARE THERE?
There are 7 basic QC tools and 7 new QC tools
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BACKGROUND
7 BASIC QC TOOLS :
Developed by Kaoru Ishikawa, Japanese professor engineering
in the 1950s
To help workers of various technical backgrounds to
implement effective QC measures
7 NEW QC TOOLS:
Developed by Japanese Scientists and Engineers (JUSE) in
1976
To better handle planning for major projects, communicate
information throughout an organization and promote
innovation.
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BASIC 7 QC TOOLS
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7 NEW QC TOOLS
Process Decision Program Chart
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OLD vs NEW QC TOOLS
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BASIC 7 QC TOOLS
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BASIC 7 QC TOOLS
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7 BASIC QC TOOLS – CASE STUDY
DEFECTIVE FUEL PUMPS SUPPLIED BY A THIRD PARTY TO AN
AUTOMOBILE MANUFACTURER
CUSTOMER COMPLAINTS – 47 NOS FUEL PUMPS RETURNED
WITHIN A MONTH (DURING WARRANTY PERIOD) DUE TO
DEFECTS
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FLOWCHART
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FLOW CHART – CASE
STUDY
FUEL PUMP DELIVERY SYSTEMQuality Control, Assurance & Reliability BITS Pilani
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CHECK SHEET- CASE STUDY
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Positive or anodic brush: where the current flow is
from the brush to the commutator
Negative or cathodic brush : where the current flow
is from the commutator to the brush
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CHECK SHEET- CASE STUDY
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THE PARETO PRINCIPLE
• Vilfredo Pareto was an economist who is credited with
establishing what is now widely known as the Pareto Principle
or 80/20 rule.
• When he discovered the principle, it established that 80% of
the land in Italy was owned by 20% of the population.
• Later, he discovered that the Pareto principle was valid in
other parts of his life, such as gardening: 80% of his garden
peas were produced by 20% of the peapods.
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THE PARETO PRINCIPLE
Some Sample 80/20 Rule Applications
– 20% of your sales force produces 80% of your company
revenues.
– 80% of delays in schedule arise from 20% of the possible
causes of the delays.
– 80% of customer complaints arise from 20% of your
products or services.
(The above examples are rough estimates.)
– VITAL FEW (20%) vs TRIVIAL MANY (80%)
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PARETO DIAGRAM
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CHECK SHEET – CASE STUDY
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PARETO DIAGRAM – CASE STUDY 100
98 %
96
94 %
81 89 %
%
% %
45
%
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CAUSE AND EFFECT DIAGRAM -
EXAMPLE
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CAUSE AND EFFECT DIAGRAM -
EXAMPLE
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Cause-and-Effect Diagram
• Enables a team to focus on the content of a problem, not on
the history of the problem or differing personal interests of
team members
• Creates a snapshot of collective knowledge and consensus of
a team; builds support for solutions
• Focuses the team on causes, not symptoms
• Used to investigate either a “bad” effect and to take action to
correct the causes or a “good” effect and to learn those
causes responsible
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CAUSE AND EFFECT –
CASE STUDY
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Cause-and-Effect Diagram
Steps
1. Identify the effect or quality problem
2. Determine the major causes
3. Determine all the minor causes. Request a brainstorming
session
4. Once the diagram is complete, evaluate it to determine the
most likely causes
5. Develop solutions
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Cause-and-Effect Diagram
Advantages:
1. Analyzing actual conditions for the purpose of product or
service quality improvement
2. Elimination of conditions causing nonconforming product or
service and customer complaints
3. Standardization of existing and proposed operations
4. Education and training in decision-making.
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CONTROL CHART
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SCATTER PLOTS
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SCATTER DIAGRAM - EXAMPLE
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SCATTER DIAGRAM - EXAMPLE
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HISTOGRAM
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BASIC 7 QC TOOLS
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CONTINUOUS IMPROVEMENT
WHY CONTINUOUS IMPROVEMENT IS REQUIRED?
CUSTOMER EXPECTATIONS KEEP VARYING
PROCESS OPTIMIZATION IS CONTINUOUSLY REQUIRED – MIN.
COST, MAX. PERFORMANCE, MIN. WASTE, MAX. EFFICIENCY,
ETC
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CONTINUOUS IMPROVEMENT
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CONTINUOUS IMPROVEMENT
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RECAP
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SUGGESTION…..
IN YOUR RESPECTIVE ORGANIZATIONS, TRY TO FIND OUT :
WHICH QC TOOLS ARE USED FOR PROBLEM SOLVING
TRY TO OBTAIN AN ACTUAL CASE STUDY AND REVIEW IT
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TQM
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TOTAL QUALITY MANAGEMENT
It is an enhancement to the traditional way of doing business
It is a proven technique which guarantees a survival in the
competitive world, if implemented properly
TQM stands for
Total - Made up of the whole
Quality - degree of excellence a product or service provides
Management - Act, art or manner of planning, controlling,
directing,….
Therefore, TQM is the art of managing the whole to achieve
excellence. TQM relies on common sense.
62
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TQM FRAMEWORK
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TQM FRAMEWORK
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TQM MODEL
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TQM MODEL
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TQM MODEL
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TQM FRAMEWORK
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TQM APPROACH
GOAL – ?
HOW TO ACHIEVE?
CUSTOMER – ?
69
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TQM APPROACH
GOAL – ACHIEVE BUSINESS STRATEGY; EXCEED CUSTOMER
EXPECTATIONS
CUSTOMER – INTERNAL AND EXTERNAL CUSTOMERS AND
SUPPLIERS
HOW? INTEGRATE BUSINESS ENVIRONMENT, CONTINUOUS
IMPROVEMENT, INNOVATION – CHANGE ORGANIZATIONAL
CULTURE
CONSIDER QUALITY IN ALL ASPECTS OF THE ORGANIZATION
70
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TQM
TQM is both a philosophy and a set of guiding principles for
continuously improving the organization
...is the application of quantitative methods and human
resources to improve all the processes within an organization
and exceed customer needs now and in the future.
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BENEFITS OF TQM
Improved profitability and market share
Customer satisfaction
Product quality
• Less waste and rework
• Higher profits
Improved communication
Employee involvement
• Training
• Teamwork
• Employee satisfaction
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OBSTACLES TO TQM IMPLEMENTATION
Lack of management commitment
Improper planning
Inability to change organization culture
Paying inadequate attention to internal and external
customers
Inadequate use of empowerment and teams
Failure to continually improve
Lack of continuous training and education
Incompatible organization structure
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TQM FRAMEWORK
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QUALITY AUDITS
TYPICAL:
SYSTEM AUDIT
PROCESS AUDIT
PRODUCT AUDIT
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QUALITY AUDITS
To examine the effectiveness of management control
programs and also to identify problems
3 parties are involved – Client, Auditor and Auditee
Auditor – Internal and External
Purpose
– Evaluation of Quality program against reference standard
– Evaluation of operations, activities within the quality system with respect to procedures
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QUALITY AUDITS
Audit Quality
– Influenced by independence and objectivity of the auditor
– Depends on being a external or internal auditor
Methods
– Location oriented
• All functions are audited in that particular location
• Examines the action and interaction of the elements in the quality program at that
location and may be used to identify discrepancies between locations
– Function oriented
• Examine and evaluate activities related to a particular element or function within a
quality program at all locations
• Successive visits to each location is necessary to complete the audit
– Utility of quality audit is derived only when remedial actions are taken
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QUALITY IN THE SERVICE SECTOR
MAIN DIFFERENCE BETWEEN MANUFACTURING AND SERVICE
INDUSTRIES?
MANUFACTURING – PRODUCT MUST MEET CUSTOMER
FUNCTIONAL REQUIREMENTS
SERVICE - PRODUCT MUST MEET CUSTOMER FUNCTIONAL
REQUIREMENTS
PLUS
HUMAN BEHAVIOUR MUST MEET CUSTOMER EXPECTATIONS
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QUALITY IN THE SERVICE INDUSTRY
DIFFERENTIATE BETWEEN SERVICE INDUSTRY SUCH AS :
AIRLINES, HOTELS, HEALTH CARE, BANKING, INSURANCE,
EDUCATIONAL INSTITUTIONS, ETC
AND
SERVICE FUNCTIONS (SUPPORTING FUNCTIONS) WITHIN A
MANUFACTURING OR SERVICE INDUSTRY SUCH AS :
HR, ACCOUNTS, PURCHASING, ETC
FOCUS HERE IS ON QUALITY IN SERVICE INDUSTRIES
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Differences in manufacturing and service
sector
Manufacturing Service
– Product is tangible – Tangible and intangible
– Back orders are possible – Cannot be stored, if not used
– Producer or company is the only – Producer and consumer are
party involved in the making of the both involved in the delivery
product of service
– Product can be resold – Service cannot be resold
– Formal specifications provided by – No formal specification given
customer by customer
– Customer acceptance of product is – Customer satisfaction is
quantifiable difficult to quantify
– Product ownership transferred at a – Product ownership
specific point of time transferred over an interval of
time
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Service quality characteristics
Quality of service can be broken down into two categories:
– Effectiveness deals with meeting the desirable service
attributes that are expected by the customer.
– Efficiency concerns the time required for the service to
be rendered
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Measuring service quality
• Measures
Characteristics – No. of customer complaints,
– Human factors and behavioural No. of compliments based on
behavioural factors of persons
in service
– Timeliness – Time to process a transaction,
Waiting time to receive the
baggage, etc
– No. of billing errors in mobile
– Service nonconformity phone usage, No. of errors in
data entry of marks in
database etc.
– Facility related – No. of complaints due to
insufficient legroom in bus,
Lack of lab facilities in a
institute etc.
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Techniques for Evaluating Service
Quality
100% sampling
– Used when the cost of external errors or nonconformities is high
– Cost of sampling and inspection is high, but better than a nonconformity
found by a customer
Convenience sampling
– Samples are chosen by the ease of drawing them and are influenced by
the subjectivity of the individual
Judgment sampling
– Samples are chosen based on expert opinion
– Can also create bias and hence should be cautious in making statistical
inferences
Probability sampling
– Has a statistical basis and is the most preferable
– Each item has an equal chance of being selected and done using random
number tables
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WHAT DID WE LEARN TODAY
QFD
QC TOOLS
TQM
QUALITY AUDITS
SERVICE QUALITY
REFER CHAPTER 3 - TEXTBOOK T1, FOR DETAILS; CHAPTER 2 – SERVICE QUALITY;
FOR ADDITIONAL READING – CHAPTERS 1,2,8,12,18, REFERENCE R2
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THANK YOU
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