Quality Management and Six Sigma

Modular Learning Outcomes

Upon successful completion of this module, the student will be able to satisfy the following outcomes:

- Case
o Analyze quality issues and develop a quality plan for a manufacturing company.
- SLP
o Design and develop a quality plan for a non-manufacturing company.
- Discussion
o Analyze quality in service organizations.

Module Overview

This module provides background information on the quality movement, and then the readings and resources show the various concepts of quality including TQM, continuous improvement, ISO9000, and Six Sigma.

WHY LEARN ABOUT QUALITY? Recall from the course overview that the Cleveland Clinic has been working on implementing a continuous improvement program to raise the quality of its health care. In recent years, quality has moved into other industries such as health care, retail, and finance. But its roots, like most other operations management methodologies, are in manufacturing. Dr. Deming introduced the idea of statistical process control in the 1950s. But when the US auto manufacturers virtually ignored his approach, he took it to Japan, where they embraced it. The rest is history, as they say. Eventually, by the early 1980s, the Japanese quality movement helped the Japan auto makers to take over the top spots in the U.S., e.g. Honda and Toyota.

U.S. automakers finally sat up and took notice, but they were still slow to adopt many quality methodologies. Other industries began to adopt the concepts of Total Quality Management (TQM), continuous improvement, and more recently Six Sigma. Today, the U.S. big three have made huge strides in improving quality and producing the cars that consumers want. Ford Motor Company seems to be leading the way in the U.S.

Sources: Armst (2010); Halliday (2010).

Definition of Quality

What is quality? What do we mean when we say that this or that has quality, or is good or bad, or is excellent? We are talking about how this particular thing, action, process, or concept, fulfills the intent of its existence. Some things are designed by humans, others occur in nature. Consider

the saying "it is a good apple." It grows on trees, but still there is some set of characteristics that we think about when we consider what makes it "good." It is sweet, juicy, fresh, crunchy, has no worms, and so forth. It is supposed to grow that way. Now consider an object that is designed and produced --say a computer. It starts up quickly, runs software without delays or bugs, performs the tasks it is programmed to do, and displays the information with clarity on the screen.. This product is designed and built and its characteristics are specified beforehand. How do we think about these specifications of quality?

The nine dimensions & six levels provide a good way of thinking about characteristics of quality: Dimensions & Levels of Quality.

Process capability is a fundamental concern of product quality. In manufacturing, the finished product often is assembled from various components. These components must fit together in the right way. Each part is designed with certain target specifications and a small amount of "wiggle room" or tolerances. Processes must produce the part within the range of tolerances.

Scenario

Company E-Mail FROM: Gerald Garcia

SUBJECT: Quality Project

As you know, EMC recently hired a Quality Assurance Manager who is developing a QA Department. How we were able to go for so long without a formal quality department is a mystery and I must accept responsibility for it. But we are on the road to quality and quality assurance. Your next project will be to assist this new manager when she arrives, which will be in about two weeks. The exact assignment will be out in my next email.

Background

Required Reading

Halliday, J. (2010). Buck up,Detroit, there's always Ford, Adweek. New York: Jun 7, 2010. Vol. 51, Iss. 23; p. 11.

Juran, J. (1994). Quality control in service industries. Retrieved from http://www.juran.com/elifeline/elifefiles/2009/11/Quality- Control-in-Service-Industries_JMJuran-94.pdf

iSixSigma. (2009). Statistical Six Sigma Definition. Retrieved from http://www.isixsigma.com/new-to-six-sigma/statistical-six-sigma- definition/

Process Capability (2011). Wikipedia, retrieved from
http://en.wikipedia.org/wiki/Process_capability

Pyzdek, T. (2009). The Six Sigma Revolution. iSixSigma. Retrieved from http://www.pyzdek.com/six-sigma-revolution.htm

Quality, Part 1:http://www.youtube.com/watch?v=5JgaMIIEAGQ

Quality, Part 2: http://www.youtube.com/watch?v=hIcV5Q3YyO8

Sharma, S. (n.d.). Services can improve by taking lead from manufacturing, iSixSigma, retrieved from http://www.isixsigma.com/index.php?option=com_k2&view=item&id
=717&Itemid=1&Itemid=1

Tague, N. (2004), Excerpted from The Quality Toolbox, Second Edition, ASQ Quality Press, Retrieved from http://asq.org/learn- about-quality/data-collection-analysis-tools/overview/control- chart.html

Dimensions and Levels of QualityThese nine dimensions can be somewhat independent, depending on the product or service in question. So a particular product can be high quality in several of the dimensions and poor quality in the others. Marketing and designers are tasked with determining which dimensions are important in a specific product. Usually there are trade-offs, since it is nearly impossible for any given product to excel in all of the dimensions. And if it does, it would more than likely be very costly. For example, consider the range of quality of the new automobiles. What would you say is the automobile with the top quality? How much do you pay for it compared to the inexpensive

cars you can buy for about $15,000? Are you getting what you pay for?

Six Levels of Quality

Achieving quality and quality control is the process of ensuring quality is generated & maintained for the products and services provided to the customer. It consists of the following 6 separate yet integrated processes:

1. Determining the specifications or needs to be met
2. Designing of the product or service to meet the specifications
3. Producing and/or installing the product/service according to the design
4. Inspection of the product/service to see if it actually meets specifications and desired quality level
5. Repair/replacement of product/service to the customer (warranty)
6. Review of usage and warranty data for revisions of specifications

These processes are dealt with by the various responsibility areas as discussed in Module 2. Yet, these six processes define six different types or levels of quality. Consider each one:

Specifications - how many needs should the product/service meet or supply? Should the level of these needs be at the high end, middle end, or low end of customer expectations? In other words, just how good are we trying to be with this product? Consider that the more needs and at higher levels of expectation will usually cost more. And it is possible to specify something that is impossible or very difficult to design and/or produce. The Voice of the Customer.

Design - determines the arrangement of various aspects and components of a product/service so that it does what it is supposed to do according to the customer needs and wants. It considers various materials, sizes, shapes, weight, and other physical properties of these aspects and components. The design process will - different combinations and design options, tradeoffs, etc.
Quality of design.

Production - converting materials through various production processes and assembly into the final product so that it is the product that was designed. Each component from each production

process should meet the design specs for that operation. Quality of production.

Final inspection and testing - Up to now, the individual components have been the concern, but here, the final product is the focus. So the purpose here is to make sure that the final product performs as intended. Sometimes this requires only visual inspection, but in other cases, the product must be tested.

Automobiles are driven, airplanes are flown, TVs and other electronics are turned, etc., and all of these go through a series of tests to make sure they are working as they should. If they don't the problems are identified and corrected, then it is retested.

Performance in the field - The customer now has the product and begins to use it. If the product does not do what the customer expects, they usually have the option to contact customer service. Most products have some time period during which the customer has the right for the company to pay for repair and/or replacement. These are covered in the product warranty or contract. Quality in the field.

Analysis of performance problems - Customer Service has the responsibility to collect information about problems and issues of the products from the customer. The data is analyzed for common issues, special cases, conditions of use and other information that is then used by product design and marketing to redesign the product, send information to the customer on how to upgrade, and even recall the product if it is found to be dangerous.