The Fundamentals of Quality Management

296 Pages·1996·20.09 MB·English

by  Dennis F. Kehoe (auth.)

The Fundamentals of
Quality Management
Dennis F. Kehoe
Department of Industrial Studies
University of Liverpool, UK
lanl
SPRINGER-SCIENCE+BUSINESS MEDIA, B.v.
First edition 1996
© 1996 Dennis F. Kehoe
Originally published by Chapman & Hali 1996
Typeset in by 10/12 pt. Times by Saxon Graphics Ltd, Derby
ISBN 978-0-412-62690-6 ISBN 978-94-011-0545-3 (eBook)
DOI 10.1007/978-94-011-0545-3
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The Fu ndamentals of
Quality Management
To my children, to Sarah and to Andrew
Contents
Preface IX
1 Introduction 1
1.1 The definition of quality and the role of quality management 1
1.2 The development of quality management 2
1.3 A framework for quality management 2
1 .4 Systems, culture, tools and customers 4
2 Quality systems and ISO 9000 6
2.1 Quality system standards 6
2.2 The scope and interpretation of ISO 9000 16
2.3 The implementation of ISO 9000 26
2.4 Quality system audit and maintenance 36
3 Quality costs and performance measurement 46
3.1 The philosophy of the cost of quality 46
3.2 Methods for collecting quality costs 51
3.3 Quality cost performance models 57
3.4 Benchmarking and performance measurement 61
4 Motivation for quality 65
4.1 Developing a 'quality culture' 65
4.2 Teambuilding and the role of teamwork 72
4.3 Types of quality improvement teams 81
4.4 Team leadership and facilitation 85
5 Total quality management 89
5.1 Developing continuous improvement through total quality 89
5.2 The basic elements of total quality management 95
5.3 Alternative approaches to total quality management 100
5.4 Developing a customer orientation 104
5.5 Business process re-engineering 108
6 Acceptance sampling 112
6.1 Sampling or 100% inspection? 112
6.2 The basic elements of acceptance sampling 115
6.3 Design of sampling plans 120
viii Contents
6.4 Multiple and sequential sampling 127
Acknowledgement 134
7 Statistical process control 135
7.1 The control of process variability 135
7.2 Failure mode effects and analysis and critical characteristics 139
7.3 Data collection and analysis 146
7.4 Process capability and indices 154
7.5 Process control charts 157
8 Problem-solving tools 169
8.1 The role of problem-solving 169
8.2 Problem-solving methodologies 174
8.3 Basic problem-solving tools 180
8.4 Advanced problem-solving tools 190
9 Reliability management 198
9.1 Product and systems reliability for quality improvement 198
9.2 The modelling of product reliability 201
9.3 The reliability of systems 214
10 Advanced quality planning 221
10.1 The prevention approach to quality management 221
10.2 System design and quality function deployment 225
10.3 The quality loss function 235
10.4 Design of experiments 240
Appendices
A Area under the normal distribution curve 248
B Sample examination questions 250
C Outline solutions to sample examination questions 262
Selected bibliography 283
Index 286
Preface
This book has been written to provide both students and industrial man
agers with a comprehensive description of the tools and techniques of
Quality Management and also to provide a framework for understanding
Quality Development.
Central to the theme of this book is the idea that quality management is a
developmental process which requires an understanding of the techniques,
the people and the systems issues. The aims of quality development are to
produce greater organizational consistency, to improve customer satisfac
tion and to reduce the business process costs. In order to achieve these aims,
managers are required to have an understanding of both the underlying the
ories and the methodologies for implementation. The aim of this book is to
provide a coherent description of both the theoretical and implementation
aspects of quality management.
Since the halcyon days of the quality 'revolution' of the 1970s and 1980s,
many organizations have realized that quality development represents an
enormous management challenge. This challenge for continuous improve
ment requires the continuous development of systems, of techniques and of
people. Like most serious business strategies, competitive improvement
through quality development can only be achieved if the organization
understands not only what the various quality 'options' are but also when a
particular technique or approach is applicable. Quality development has no
single blueprint but requires a learning organization which understands key
concepts and methods of implementation.
The inspiration for this book came from the teaching of a great many stu
dents, researchers and industrialists and from experiencing their problems
of understanding and application. Providing students with a framework for
understanding the role of the various techniques of quality management and
by proposing for industrial managers a range of implementation methodolo
gies have been the 'motivators' for producing this text.
Many people have assisted directly and indirectly in the preparation of
this book. My special thanks go to Christine Williams for her tireless work
in preparing the manuscript and to Harry Evison for his painstaking proof
reading and valuable suggestions for improvement. Read this book with a
critical eye and form your own views on the relevance and applicability of
the techniques described. For most organizations and the individuals who
work within them the only choice in the future is how to apply the tech
niques of quality management, not whether to.
Dennis F. Kehoe
Liverpool, January 1995
1
I ntrod uction
1.1 The definition of quality and the role of quality management
The aim of this book is to provide the reader with an understanding of the
fundamental concepts of managing quality. The starting point for most indi
viduals - and indeed most organizations - is to understand the meaning of
the term 'quality'. This may seem a rather elementary requirement as the
word 'quality' is recognized by most people and in general speech is used to
describe excellence, value, reliability or goodness. The Oxford English dic
tionary defines quality as:
(Noun) Degree of excellence, relative nature ...
In a business context, however, the concept of quality needs to be more pre
cisely understood and to be clearly interpreted by everyone in the organiza
tion. In essence quality can be understood as:
Meeting the customer's expectations.
In order to manage quality, organizations need therefore to have mecha
nisms in place both to establish what the customer expects (or requires) and
to confirm that these expectations have been met.
The effective management of quality requires the tools and techniques
described throughout this book to be applied systematically and within an
overall framework of development. The management challenge to under
stand and implement these fundamental concepts is significant. What there
fore are the benefits? Why, in other words, is quality management
important?
The simple answer is competition. As international markets move
towards the millennium then competition will continue to increase. The
international markets for many products are now very mature - the products
or services offered by different companies from different countries are basi
cally the same. As a result the basis of competition is increasingly the qual
ity of the product or service. There is no conflict between quality and price
as more and more organizations realize that in the long term quality goods
and service actually cost less. A nineteenth-century economist once
observed that 'if you spend too much on your goods, all you lose is a little
money; if you spend too little then you can lose everything.'
2 Introduction
1.2 The development of quality management
The issue of quality of goods or services is not new. Throughout history
society has demanded that providers of goods or services should meet their
obligations. As long ago as 1700 Be King Hammurabi of Babylon intro
duced the concept of product quality and liability into the building industry
of the time by declaring:
'" if a building falls into pieces and the owner is killed then the builder
shall also be put to death. If the owners' children are killed then the
builders' children shall also be put to death.
During the Middle Ages many of the guilds of craftsmen were established
to guarantee the quality of workmanship and to define the standards to be
expected by the purchaser. During the Industrial Revolution, many of the
technological advances, such as the development of the steam engine, were
made possible through developments in metrology and the standardization
of engineering components such as screw threads.
The advent of mass production during the twentieth century increased the
demands upon the control of product quality. During the 1940s and 1950s
the techniques of quality control became an increasingly important aspect
of business management as organizations sought to gain competitive advan
tage and reduced costs through the inspection of product quality. The suc
cess of Japanese manufacturers during the 1960s and 1970s changed the
emphasis from a quality control approach to a quality assurance approach
requiring more of the business functions to be involved in the management
of quality and requiring longer implementation timescales. Finally the
fierce international competition for goods and services during the 1980s and
1990s has led to a 'total' approach to quality management whereby every
one in the organization is involved in developing an improvement and pre
vention orientation which focuses upon the customer through teamwork.
The timescales for implementing total quality are even longer and the rela
tionship between the involvement of people and the implementation
timescales for the historical development of quality management is illus
trated in Figure 1.1.
1.3 A framework for quality management
The framework proposed throughout this book is that quality improvement
is a developmental process. The fundamental tools and techniques of qual
ity management can therefore be 'mapped' onto this developmental frame
work to provide a better understanding of the role of each of the techniques
and the context of its implementation.
A framework for quality management 3
Employee
involvement TOTAL QUALITY
• Quality improvement
groups
• Customer orientation
• Supplier improvement
• Company-wide
1980s and 1990s
QUALITY ASSURANCE
• Quality system
• System accreditation
• Supplier assessment
1960s and 1970s
QUALITY CONTROL
• Product testing
.Goods-in inspection
1940s and 1950s
Implementation timescales
Figure 1.1 The development of quality management approaches.
The stages of development that most organizations progress through are
successively:
• a systems orientation;
• an improvement orientation;
• a prevention orientation.
This development in the way companies manage quality is 'encompassing'
in the sense that the developments made as the quality systems are imple
mented need to be retained and built upon as the organization moves
towards improvement. Prevention in turn requires the improvement activi
ties to be augmented with a greater emphasis upon designing quality into
the product or service or process rather than improving existing ones. This
developmental framework illustrated in Figure 1.2 is used throughout the
book both to position the quality tools, techniques and methodologies
described and also to provide an understanding of the effects of the various
activities.
Chapter 2 describes the basic concepts of a systems approach to quality
and the role of ISO 9000 in promoting an international standard for assess
ing the quality management systems employed in organizations. The imple
mentation of quality systems represents a fundamental foundation for quality
development and the promotion of a company-wide quality perspective.
The enablers for quality improvement are presented in Chapter 3, which
examines the measurement of the cost of quality, and Chapter 4, which
describes the involvement and motivation of people for quality and the role