Quality Productivity

Quality Productivity Bushra Dibya Prakash Pabitra

Quality • Definition ‘Quality is customer satisfaction’

Dimensions • • • • • •

Performance Reliability Serviceability Durability Appearance Customer service

Costs of quality • • • •

Costs of external fault Cost of preventive action Cost of internal faults Evaluation costs

Costs of external fault Loss of market share Deterioration of image Additional transport cost Replacement / repair of defective item • Liability suits • • • •

Cost of preventive action • Quality training • Quality assurance dept

Cost of internal faults • Rework • Repackaging • Demotivated

Evaluation costs • Inspection – In process & finished goods • Laboratory testing

Quality management • Quality planning • Quality control • Quality improvement

Quality Planning • Determine who the customers are • Determine the needs of the customer • Develop product features that responds to customer’s needs • Develop processes that are able to produce those product features

Quality Control • Evaluate actual quality performance • Compare actual performance to quality goals • Take remedial actions

Quality Improvement • Establish the infrastructure to achieve annual quality improvement • Identify the improvement projects • Project teams • Provide the resources ,motivation, training - Diagnose the causes - Stimulate establishment of remedy - Establish controls to retain the benefits

Paradigm shift • Quality productivity trade off to quality productivity hand-in-hand

Quality-Productivity • Productivity = Output/Input – output from production processes, per unit of input

• Technical or engineering efficiency of production. • Output is emphasized

Productivity Conceptual Model Material People System Tools Equipment Knowledge Skill Management

Increased Volume

Conversion Process

Improved Services Reduced Cost

OUTPUT

INPUTS

Quality-Productivity Production Output ($ created) Productivity = Production Input ($ consumed)

Materials + Direct Labor + Indirect Labor + Capital + Service

Scrap

Rework

Inspection

Machine

Warranty

Paradigm Shift Traditional • Tradeoff

(Units/Labour hr)

Modern • Together

(Units/Labour hr)

Continuous Improvement Quality level

Check Act

Do Plan

Time

Quality & Productivity Quality Culture in organization  Total Quality Management  Application and Implementation  TQM – Road Map to Corporate Excellence

Quality Culture in Organization

• Quality Assurance Activity

– Focused Discussion, round table, Quality Circle, topical graphs and questionnaire

• Covering broad areas – overall product quality, conformance to requirement, management commitment, etc.

• Quality Culture deals – Employee relations, productivity, customer satisfaction, market share and profitability

• ISO 9000 series quality standards – – – – –

Selection of documents (ISO : 9000) design, development, production(ISO : 9001) Production and installation(ISO : 9002) Final inspection and test(ISO : 9003) Quality management and system elements(ISO : 9004)

Quality Perspective

TOTAL QUALITY MANAGEMENT

Applications and Implementation

• Customer Service Dimensions – accept, process, deliver and bill customers orders and follow up – covers pre transactional, transactional and post transactional elements • Indoor Air Quality – Health Effects, causative agents, sources, control methodology • Software Quality – Consistent process requirement gathering, test planning and scheduling – result analysis and defect management – SEI CMMI Level Certification

• • • • • •

Road Map

Valuing Employees and Partners Agility Focus on the future Managing the innovation Social Responsibility Results and Value

– Life Time Value = Average Transaction Value * Yearly Frequency of Purchase * Customer Life Expectancy

“Total Quality Management is a marathon and not a sprint “

Thank