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  1. Cost of Quality and Juran’s Trilogy The cost of poor quality: • “In most companies the costs of poor quality runs between 20 to 40 percent... In other words, about 20 to 40 percent of the companies’ efforts are spent in redoing things that went wrong because of poor quality” (Juran on Planning for Quality) • Crosby’s Quality Management Maturity Grid states that if an organization doesn’t know it’s cost of quality, it’s probably at least 20%. (Crosby, Quality is Free)
  2. Quality Crisis According to Dr. Juran: 1. “There is a crisis in quality. The most obvious outward evidence is the loss of sales due to competition in quality and the huge costs of poor quality.” 2. “The crisis will not go away in the foreseeable future.” 3. “Our traditional ways are not adequate to deal with the quality crisis.” 4. “To deal with the crisis it requires some major breaks with the tradition.”
  3. Juran’s Reasons for Poor Quality • Most organizations have about 33% running in to costs of poor quality (e.g., rework, waste, scrap, etc.) • About 80% of all quality efforts have no measurable results. • Most failures in quality are due to “poor choice of strategy”. • In order to choose a quality strategy- wisely, organizations need to know how to manage for quality.
  4. Quality Objectives and Strategy What are the organization’s quality objectives? • Customer Satisfaction? • Time to market? • On-Time Delivery? • Cost Savings? • ROI? • Productivity? • Performance? • Cycle time?
  5. “Fitness for Use” Product Features that Meet Customer Needs Freedom from Deficiencies • Eliminate defects, errors, & waste • Avoid product dissatisfaction • Effect is on costs • Higher quality costs less Juran’s Definition of Quality • Provide customer satisfaction • Create product salability • Compete for market share • Respond to customer needs • Higher quality costs more
  6. Types of defects • Management controllable defects • Operator controllable defects • Sporadic and Chronic problems
  7. The Juran Trilogy for Quality Management Quality Planning Quality Control (during operations) Major Crisis Original zone of quality control New zone of quality control Continuous Waste, Errors, & Defects Lessons learned Time • Adapted from Juran's Quality Control Handbook , J.M. Juran, 4th Edition Improved Process Current Process Reduced Waste, Errors, & Defects
  8. Fundamental Quality Strategies or Juran’s Trilogy Managing for Finance Managing for Quality Financial Planning: Setting business goals; budgeting Quality Planning: Setting quality goals; design in quality Financial Control: Cost control; actual vs. planned Quality Control: Planned vs. actual quality goals; taking action on difference Financial Improvement: Cost reduction; mergers; acquisitions Quality Improvement: Waste and rework reduction; eliminate & prevent defects
  9. Aim of Juran’s Trilogy To make the process 1. Efficient 2. Effective 3. Under control 4. Simplify and 5. Adaptable To Achieve this GOAL…..
  10. Requirements ‰ View all work as a process. (whether production or business) ‰ Make all processes 1. Effective 2. Efficient 3. Adaptable ‰ Anticipate the change in customer needs.
  11. Requirements. Cont… ‰ Control “in process performance using measurements” such as 1. Scrap reduction 2. Cycle time reduction and 3. Using Control charts ‰ Maintaining constructive dissatisfaction with present levels of performance.
  12. Requirements. Cont… ‰ Eliminate all types wastes and rework ‰ Find activities that do not add value to the product or service ‰ Eliminate non conformities at all phases of every ones work; even if the increment of improvement is very small ‰ Use bench marking to improve competitive advantage
  13. Requirements. Cont… ‰ Innovate to achieve Break through ‰ Incorporate the lessons learnt into future activities ‰ Use technical tools such as 1.SPC 2.Experimental Design 3.Bench Marking 4.QFD, and so on….
  14. Process ‰ Process refers to business and production activities. It has Input, Process, and Out Put activities. Material Money Information Data Input People Equipment Method Procedures Environment Material Information Data Product Service Out Put Process
  15. Process. cont… ‰ The process definition should begin with Internal/External Customers. ‰ Customer defines the purpose of organisation and every process within it. ‰ The process improvements must be defined in terms of 1.Customer satisfaction 2.Quality of products 3.Good service
  16. Process. cont… ‰ The process must have value added activities and repeatability. ‰ It must be a part of process improvement.
  17. Improvement ‰ The five basic points 1. Reduce resources More resource Waste 2. Errors Reflects Poor Workmanship. 3. Meet or Exceed Customer Satisfaction Improved Process. 4. Make the process safer More Productive. 5. Make the process more satisfying to the person doing it.
  18. Juran’s Trilogy ‰ The process improvement involves three important components. 1. Planning (5 stages) 2. Control 3. Improvement
  19. 1. Planning Stage Step-I. Marketing External customer Stated Automobile • Need Real Transportation These needs must be translated to requirement
  20. Planning Stage, cont…. step- II, III II. Internal Customer III. Develop product or Service Features a) Customer needs b) Needs of the organisation c) Competitive d) Optimize the cost of all stakes holders
  21. Planning Stage, step III. Cont… ‰ These needs are to be analyzed by Multifunctional Team using the tools such as, 1.QFD 2.CE 3.Taguchi’s Quality Engineering 4.FMEA and so on…
  22. Planning Stage cont… Step- IV ‰ Develop the process to produce product and service features. This task is carried by design team, for which the facilities required are 1. Training 4. Operation 2. Control 5. Maintenance 3. Scaling up 6. Process Capability (prototype) Evaluation
  23. Planning Stage, step- V, ‰ Operation: 1. Process planning 2. Production facilities 3. Men 4. Material 5. Positrol (positive control) i.e., the important variables are to be kept under control.
  24. 2. Control stage ‰ This is being used by operating forces to help the product, process, and service requirements. They also get the feed back. The steps involved are 1. Evaluating actual operating performance 2. Comparing actual performance to goals, & 3. Acting on the difference
  25. Tools used in this stage ¾ SPC ¾ Pareto Diagram ¾ Flow Charts ¾ Cause and Effect Diagram ¾ Check Sheets ¾ Histogram ¾ Control Charts ¾ Scatter Diagram Find whether the process is centered or not.
  26. 3. Improvement stage ‰ This stage involves developing an effective Infrastructure through Quality Council. The Duties of Quality council are 1. To identify improvement projects and establishing the team 2. Providing the resources to determine the causes 3. Developing solutions 4. Establishing control to hold the gains.