Introduction to Quality
Chapter 1
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1–1
Is an ounce of prevention really worth a pound of
cure?
• Quality is Free – Philip B. Crosby
• This book challenged the assertion that it would cost more to produce higher-quality
goods and provided an argument that it would cost more to produce a low-quality
product.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1–2
Learning Objectives
1. Define and discuss quality and quality improvement
2. Discuss the different dimensions of quality
3. Discuss the evolution of modern quality improvement methods
4. Discuss the role that variability and statistical methods play in controlling and
improving quality
5. Explain the links between quality and productivity and between quality and cost
6. Discuss product liability
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1–3
The Meaning of Statistical
A Brief History of
Quality and Methods for
Quality Control
Quality Quality Control
and Improvement
Improvement and Improvement
Discussion topics
Quality and Legal Aspects of
Quality Costs
Productivity Quality
Implementing
Quality
Improvement
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1–4
Dimensions of Quality
Garvin (1987) provides eight components or dimensions of quality
1 Performance Will the product do the intended job?
2 Reliability How often does the product fail?
3 Durability How long does the product last?
4 Serviceability How easy is it to repair the product?
5 Aesthetics What does the product look like?
6 Features What does the product do?
7 Perceived Quality What is the reputation of the company or its
product?
8 Conformance to Standards Is the product made exactly as the designer
intended?
9 Responsiveness How long they did it take the service provider to
reply to your request for service?
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1–5
Dimensions of Quality
For the service sector some additional dimensions of Quality
could be added
10 Professionalism This is the knowledge and skills of the service provider, and relate
to the competency of the organization to provide the required
services.
11 Attentiveness Customers generally want caring, personalized attention from
their service providers. Customers want to feel that their needs
and concerns are important and are being addressed.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1–6
What is Quality?
Quality is a multifaceted entity
The American Society for Quality describes “quality” as a
subjective term for which each person or sector has its own
definition.
Traditional view of Quality
Fitness for use
Quality of design (Variations in grades or levels of Quality are
intentional)
Quality of conformance (How well the product conforms to the
specifications required by the design)
The traditional view of quality has become associated more with
conformance aspect of quality than with design.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1–7
Modern view of Quality
• Quality is inversely proportional to variability
• Customer doesn’t see the mean of the process, s/he only sees
the variability around the target that you have not removed - Jack
Welch (retired CEO - GE)
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1–8
What is Quality Improvement?
Quality Improvement is the reduction of variability in processes
and products.
Excessive variability in process performance often results in
waste.
Quality Improvement is the reduction of waste.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1–9
Quality Terminology
Quality / Critical-To-Quality Characteristics (CTQ)
Every product possesses a number of elements that jointly describe what
the user or consumer thinks of as quality
Physical: length, weight, voltage, viscosity
Sensory: taste, appearance, color
Time Orientation: reliability, durability, serviceability
Quality Engineering
Set of operational, managerial, and technical activities that a company uses
to ensure that the quality characteristics of a product are at the nominal or
required levels and that the variability around these desired levels is
minimum.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 10
Quality Terminology
Data Types
Variables data are usually continuous measurements, such as length,
voltage, or viscosity.
Attributes data, on the other hand, are usually discrete data, often taking
the form of counts.
Specifications
For a manufactured product, the specifications are the desired
measurements for the quality characteristics of the components and
subassemblies that make up the product, as well as the desired values for
the quality characteristics in the final product.
In the service industries, specifications are typically in terms of the
maximum amount of time to process an order or to provide a particular
service. (Cycle Time)
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 11
Quality Terminology
Nominal / Target Value
A value of a measurement that corresponds to the desired value for that
quality characteristic
Upper Specification Limit (USL)
The largest allowable value for a quality characteristic
Lower Specification Limit (LSL)
The smallest allowable value for a quality characteristic
Nonconforming Product
Products that fail to meet one or more of its specifications.
Nonconformity
Specific type of failure
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 12
Quality Terminology
Defective, Defects
A nonconforming product is considered defective if it has one or more
defects, which are nonconformities that are serious enough to significantly
affect the safe or effective use of the product.
Concurrent Engineering
Stressed a team approach to design, with specialists in manufacturing,
quality engineering, and other disciplines working together with the
product designer at the earliest stages of the product design process.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 13
The Meaning of A Brief History of Statistical Methods
Quality and Quality Quality Control for Quality Control
Improvement and Improvement and Improvement
Discussion topics
Quality and Quality Legal Aspects
Productivity Costs of Quality
Implementing
Quality
Improvement
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 14
Timeline of Important Milestones in the Quality
Evolutionary Process
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 15
Timeline of Important Milestones in the Quality
Evolutionary Process
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 16
Timeline of Important Milestones in the Quality
Evolutionary Process
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 17
Timeline of Important Milestones in the Quality
Evolutionary Process
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 18
Timeline of Important Milestones in the Quality
Evolutionary Process
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 19
Timeline of Important Milestones in the Quality
Evolutionary Process
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 20
The Meaning of A Brief History of Statistical Methods
Quality and Quality Quality Control for Quality Control
Improvement and Improvement and Improvement
Discussion topics
Quality and Quality Legal Aspects
Productivity Costs of Quality
Implementing
Quality
Improvement
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 21
Statistical Methods for Quality Control and Improvement
Statistical Technology useful in quality improvement
Statistical process control
Design of experiments
Acceptance-sampling
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 22
Statistical Process Control (SPC)
A control chart is one of the
primary techniques of
statistical process control
(SPC)
Classically, control charts are
applied to the output
variable(s) in a system
However, in some cases they
can be usefully applied to the
inputs as well.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 23
Design of Experiments
Approach to systematically vary the controllable input factors in the process
and determining the effect these factors have on the output product
parameters.
Off-line improvement technique
Leads to a model of the process
One major type of designed experiment is the factorial design, in which
factors are varied together in such a way that all possible combinations of
factor levels are tested.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 24
Acceptance-Sampling
Inspection and classification of a sample of units selected at
random from a larger batch or lot and the ultimate decision about
disposition of the lot, usually occurs at two points: incoming raw
materials or components and final production.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 25
Modern Quality Assurance Systems
Modern quality assurance
systems usually place less
emphasis on acceptance-
sampling and attempt to
make statistical process
control and designed
experiments the focus of
their efforts.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 26
Quality Engineering
The primary objective of
quality engineering efforts is
the systematic reduction of
variability in the key quality
characteristics of the
product.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 27
The Meaning of A Brief History of Statistical Methods
Quality and Quality Quality Control for Quality Control
Improvement and Improvement and Improvement
Discussion topics
Quality and Quality Legal Aspects
Productivity Costs of Quality
Implementing
Quality
Improvement
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 28
Quality and Productivity
Producing high-quality products in the modern industrial
environment is not easy.
A significant aspect of the problem is the rapid evolution of
technology
Too little attention is paid to achieving all dimensions of an
optimal process: economy, efficiency, productivity, and quality.
Effective quality improvement can be instrumental in increasing
productivity and reducing cost.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 29
Manufacturing Example
Consider the manufacture of a mechanical component used in a
copier machine.
Parts are manufactured in a machining process at a rate of
approximately 100 parts per day.
First-pass yield = 75% (conforming).
60% of the fallout (the 25% nonconforming) can be reworked into an
acceptable product, and the rest must be scrapped.
The direct manufacturing cost = $20/part.
Reworked parts incur an additional processing charge = $4
Cost / good part = (($20*100) + ($4*15))/90 = $22.89
Total Yield after rework = 90 good parts / day
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 30
Manufacturing Example
Statistical process control procedure reduces variability and
thereby process fallout from 25% to 5%.
Of the 5% fallout produced, about 60% can be reworked & 40% are
scrapped
Cost / good part = (($20*100) + ($4*3))/98 = $20.53
Total Yield after rework = 98 good parts / day
Installation of statistical process control & the reduction of
variability led to
10.3% reduction in manufacturing costs
10% increase in productivity
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 31
The Meaning of A Brief History of Statistical Methods
Quality and Quality Quality Control for Quality Control
Improvement and Improvement and Improvement
Discussion topics
Quality and Quality Legal Aspects
Productivity Costs of Quality
Implementing
Quality
Improvement
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 32
Quality Costs
Important financial control tool
Reasons why the cost of quality should be explicitly considered in
an organization
The increase in the cost of quality because of the increase in the
complexity of manufactured products associated with advances in
technology
Increasing awareness of life-cycle costs, including maintenance, spare
parts, and the cost of field failures
Quality engineers’ and managers’ ability most effectively communicate
quality issues in a way that management understands
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 33
Categories of Quality Costs
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 34
Preventive Costs
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 35
Preventive Costs
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 36
Appraisal Costs
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 37
Internal Failure Costs
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 38
External Failure Costs
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 39
Analysis and Use of Quality Costs (example)
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 40
Quality Costs
Leverage Effect - dollars invested in prevention and appraisal have
a payoff in reducing dollars incurred in internal and external
failures that exceeds the original investment.
Pareto Analysis - Consists of identifying quality costs by category,
or by product, or by type of defect or nonconformity.
Reducing the cost of quality - Most of the cost reductions will
come from attacking the few problems that are responsible for
the majority of quality costs.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 41
Quality Costs
Generating quality cost information
The organization’s accounting system can provide information on those
quality-cost categories that coincide with the usual business accounts
Information for cost categories for which exact accounting information is
not available should be generated by using estimates
The usual method of reporting quality costs is in the form of a
ratio in which the numerator is quality cost dollars and the
denominator is some measure of activity
Upper Management may want a standard to compare against and
this is usually done by comparing current performance to past
performance
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 42
Failure of quality cost initiatives
There are several reasons for the failure of quality-cost collection
and analysis efforts
Failure to use quality-cost information as a mechanism for generating
improvement opportunities
Overemphasis in treating quality costs as part of the accounting systems
rather than as a management control tool
Management often underestimates the depth and extent of the
commitment to prevention that must be made.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 43
The Meaning of A Brief History of Statistical Methods
Quality and Quality Quality Control for Quality Control
Improvement and Improvement and Improvement
Discussion topics
Quality and Quality Legal Aspects
Productivity Costs of Quality
Implementing
Quality
Improvement
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 44
Legal Aspects of Quality
Consumerism and product liability are important reasons why
quality assurance is an important business strategy.
Virtually every product line of today is superior to that of
yesterday. Consumer dissatisfaction and the general feeling that
today’s products are inferior to their predecessors arise from
other phenomena.
Explosion in the number of products
Consumer tolerance for minor defects and aesthetic problems has
decreased considerably, so that blemishes, surface-finish defects, noises,
and appearance problems that were once tolerated now attract attention
and result in adverse consumer reaction.
Competitiveness of the marketplace forces many manufacturers to
introduce new designs before they are fully evaluated and tested in order
to remain competitive.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 45
Legal Aspects of Quality
Product liability is a major social, market, and economic force.
In recent years, the courts have placed a more stringent rule in
effect called strict liability. Two principles are characteristic of
strict liability.
The first is a strong responsibility for both manufacturer and merchandiser,
requiring immediate responsiveness to unsatisfactory quality through
product service, repair, or replacement of defective Product.
Under strict product liability all advertising statements must be
supportable by valid company quality or certification data, comparable to
that now maintained for product identification under regulations for such
products as automobiles.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 46
The Meaning of A Brief History of Statistical Methods
Quality and Quality Quality Control for Quality Control
Improvement and Improvement and Improvement
Discussion topics
Quality and Quality Legal Aspects
Productivity Costs of Quality
Implementing
Quality
Improvement
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 47
Implementing Quality Improvement
A critical part of the strategic management of quality within any
business is the recognition of these dimensions by management
and the selection of dimensions along which the business will
compete.
It is not necessary for the product to be superior in all dimensions
of quality, but management must select and develop the “niches”
of quality along which the company can successfully compete.
Supplier selection and supply chain management may be the
most critical aspects of successful quality management in
industries such as automotive, aerospace, and electronics, where
a very high percentage of the parts in the end item are
manufactured by outside suppliers.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 48
Implementing Quality Improvement
It is critical that management recognize that quality improvement
must be a total, company-wide activity, and that every
organizational unit must actively participate.
The quality assurance function is a technology warehouse that
contains the skills and resources necessary to generate products
of acceptable quality in the marketplace.
The quality function is not responsible for quality. The
responsibility for quality is distributed throughout the entire
organization.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 49
Implementing Quality Improvement
Strategic management of quality in an organization must involve
all three components discussed earlier: quality planning, quality
assurance, and quality control and improve
All of the individuals in the organization must have an
understanding of the basic tools of quality improvement.
The key point is the philosophy that statistical methodology is a
language of communication about problems that enables
management to mobilize resources rapidly and to efficiently
develop solutions to such problems.
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 50
End - Chapter 1
© John Wiley & Sons, Inc. Managing, Controlling & Improving Quality by Montgomery, Jennings & Pfund 1 – 51
