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Quality Management: Focus on Six Sigma


KEY OUTLINE
  1. Total Quality Management
      1. Total Quality Management Defined
      2. Malcolm Baldrige National Quality Award Defined

  2. Quality Specification and Quality Costs
    1. Developing Quality Specifications
      1. Design Quality Defined
      2. Conformance Quality Defined
      3. Quality at the Source Defined
      4. Zero Defects Defined
      5. Dimensions of Quality Defined
    2. Cost of Quality
      1. Cost of Quality Defined
    3. Functions of the QC Department

  3. Six Sigma Quality
      1. Six Sigma Defined
      2. DPMO Defined
    1. Six Sigma Methodology
      1. DMAIC Defined
      2. PDCA Cycle Defined
      3. Continuous Improvement Defined
      4. Kaizen Defined
    2. Analytical Tools of Six Sigma and Continuous Improvement
    3. Six Sigma Roles and Responsibilities

  4. The Shingo System: Fail-Safe Design
    1. Fail-Safe Procedures (Poka-Yoke) Defined

  5. ISO 9000
      1. ISO 9000 Defined
      2. ISO 14000 Defined
    1. The ISO 9000 Series
    2. ISO 9000 Certification

  6. External Benchmarking for Quality Improvement
    1. External Benchmarking Defined

  7. Service Quality Measurement: SERVQUAL
    1. SERVQUAL defined

  8. Conclusion

  9. Case: Hank Kolb, Director of Quality Assurance

Case: Shortening Customers' Telephone Waiting Time

Case: "Hey, Is Anybody There? " An Example of DMAIC at American Express

KEY POINTS

Total quality management is managing the entire organization so it excels on all dimensions of products and services that are important to the customer. In today's competitive marketplace, the production and delivery of high-quality goods and services is a key element of any organization's success. Quality can be used as a competitive advantage or a strategic weapon for an organization. TQM, or total quality management is the ultimate stage of quality programs, not only in Japan, but also in Europe and North America. The critical elements of a successful TQM program include leadership, employee involvement, excellence in products or processes, and customer focus.

The Malcolm Baldrige National Quality Award is a quality award sponsored by the U.S. Commerce Department to recognize organizations that have achieved excellence in their total quality management program. The Award was created in 1987 to recognize total quality management in American industry and represents the government's endorsement of quality as an essential component of a successful business strategy. The award seeks to improve quality and productivity.

The award consists of comprehensive criteria for evaluating total quality in organizations. A Board of Examiners reviews applicants. The Baldrige is designed to be flexible and it evaluates quality in various business categories including health care, educational institutions as well as manufacturing and service companies and small businesses.

The quality criteria focus on seven broad topical areas that are integrally and dynamically related. These areas start with leadership, which drives the entire quality system. Using quantitative and qualitative results, tracked over time, quality progress is measured. Customer satisfaction is the ultimate goal of the quality program.

The categories addressed in the award were selected because of their importance to all businesses. Companies not applying for the award can use the criteria to assess their current operations, design a total quality system, evaluate internal relationships, and to assess customer satisfaction. Participation in the award program is declining but many state-sponsored quality programs and awards are growing. The Deming Prize recognizes quality excellence in Japanese companies. A European Quality Award exists as well and is similar to the Baldrige Award. The framework for this award is also presented.

Leaders in the quality revolution include Deming, Juran, and Crosby. These three gurus researched and advanced the role of quality. When considering quality, the concept has many dimensions. One is the performance of a product. Another dimension is the features of a product. Still other important quality variables include reliability, conformity, durability, serviceability, aesthetics, and finally perceived quality. The customer perceives quality. That is why a customer-focus is critical to any quality implementation.

A key to a successful quality initiative is the use of planning and management tools and procedures to track quality progress. Both quantitative and non-quantitative measures are used to track initial quality and quantity improvements over time. An important quantitative method for monitoring a process is statistical process control. SPC allows employees to distinguish between random fluctuations in machines and processes and to determine when variations signal that corrective action is needed. Key issues include the process of developing quality specifications and understanding the cost of quality. Other key issues include understanding conformance quality, quality at the source, and the goal of zero defects.

Continuous improvement has its own tools and procedures including the concept of Kaizen borrowed from the Japanese, the PDCA Cycle, and benchmarking both internally and externally in the industry.

An alternative to the statistically based approach is the Shingo system, developed in Japan. It focuses on self-checks, source inspections, and successive checks to ensure quality. Key features of the Shingo system include fail safe or poka-yoke systems that prevent defects.

ISO 9000 is a series of standards agreed upon by the International Organization for Standards. Adopted in 1987 these standards consist of five primary parts and more than 100 countries now recognize the 9000 series for quality standards and certification for international trade. ISO 14000 standards cover environmental compliance by manufacturing companies. ISO 9000 standards are compared to the Baldrige Criteria in this section.

SERVQUAL is a questionnaire used to poll customers about service quality. It is an important tool for customer satisfaction. Many methods are available to production practitioners to measure quality. However, quality is a strategic issue and should be matched to the internal organizational expertise along with the external environment. Quality programs are valuable in all organizations -- both service and manufacturing.











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