In section 4.3.3 we defined and discussed the differences between quality control points and quality checkpoints. To recapitulate:
When measuring the state of a process result, we say that we have established a ‘quality control point’.
When measuring the state of a process, we say that we have established a ‘quality checkpoint’.
Massaki Imai argued in his book Kaizen (1986) that western managers were most interested in the results, i.e. different quality control points while Japanese managers also focused on the various process measures, i.e. various quality checkpoints which were expected to have an effect on the results.
With the introduction of TQM and the dissemination and application of the self- assessment material from the Malcolm Baldridge Quality Award and the European Quality Award it is our experience that much has changed in the West since Imai wrote his book. Western managers are now aware of the importance of establishing a measuring system which includes measurements from the process (management as well as production processes) which enable the results and also measurements of the results.
Of course there are problems in establishing a coherent measurement system which comprises the most important check and control points. The problem is not only to establish a model of the whole measurement system but also to have the employees involved in the identification and measurement of the critical control and checkpoints of the specific processes (administrative as well as production processes).
In establishing a model of the whole system, TQM models, e.g. the European Quality Award Model, may be of great help and if a company uses this model in a continuous self-assessment process where all departments are involved in the quality culture will gradually change to a culture where people become involved in the identification, measurement and improvement of their own critical check- and control points. In the process of establishing an effective measuring system most companies need some inspiration from other companies. We will therefore conclude this chapter by showing some examples taken from different companies. Most of the examples are specific applications of the generic quality measure discussed in section 4.3.3:
It is our experience that most of the quality measures may be used together with control charts in order to be able to analyse and distinguish between specific causes and common causes of variation.
Examples of quality measures for the whole firm, i.e general quality measures (measures which can be used for both the firm as a whole and individual departments): • Meeting delivery times as a % of filled orders.
• Number of complaints as a % of filled orders. • Failure costs as a % of turnover or production value. • Rate of personnel turnover.
• Number of absentee days as a % of total working days. • Number of quality improvement suggestions per employee.
• Number of employees in quality improvement teams as a % of total employees. • Number of hours allotted to education as a % of planned time.
Examples of quality measures in purchasing:
• Number of rejected deliveries as a % of total deliveries. • Cost of wrong deliveries as a % of purchase value.
• Number of purchase orders with defects as a % of total orders.
• Production stops in time caused by wrong purchases in relation to total production time. • Number of inventory days (rate of inventory turnover).
Examples of quality measures in production (in a broad sense, i.e. including the production of services):
• Used production time as a % of planned time. • Failure costs as a % of production value.
• Number of repaired or scrapped products as a % of total produced products. • Idle time as a % of total production time.
• Number of inventory days for semi-manufactured goods.
• Ancillary materials, e.g. lubricants, tools etc. as a % of production value. • Number of invoiceable hours as a % of total time consumption.
• Number of injuries as a % of number of employees. Examples of quality measures in administration and sales: • Number of orders with defects as a % of total orders. • Numbers of orders with errors as a % of total invoices. • Number of credit notes as a % of total invoices. • Service costs due to wrong use as a % of sales. • Auxiliary materials/resources as a % of wage costs. • Number of unsuccessful phone calls as a % of total calls. • Number of debtor days.
Examples of quality measures in development and design:
• Number of design changes after approved design in relation to total designs.
• Number of development projects which result in approved projects in relation to total development projects.
• Failure costs due to the development departments as a % of production or sales value. • Time consumed in development as a % of planned time consumption.
As the above examples show, there are plenty of opportunities for defining quality measures and establishing quality control/quality checkpoints throughout the firm. Such measures are important in connection with continuous improvements.
There are many more examples than the ones outlined above. So it is important that management and the employees in the various firms and processes take the time needed to determine whether the examples shown here can be used or whether there are alternative possibilities for both quality checkpoints and quality control points.
REFERENCES
Imai, M. (1986) KAIZEN—The Key to Japan’s Competitive Success, The Kaizen Institute Ltd, London.
Motorola (1990) Six Sigma Quality—TQC American Style, Motorola, USA. Fundamentals of total quality management 162