7quality management

8/9/2019 7Quality Management

1/9


2/9

he GURUS of Management

1. Walter Shewhart Key contribution : Control chart, variance reduction Known as father of statistical control Develop methods for analyzing output of process to determine when corrective

action was necessary. Focus primarily on technical and process

1. W. Edwards Deming

Key contribution : 14 points (Key element), special vs common cause of variation The cause of inefficiency and poor quality is the system, not the employees. feltthat it was the managements responsibility.

Stressed the need to reduce variation in output (deviation from standard), whichcan be accomplished by distinguishing between special causes of variation (i.e.correctable) and common causes of variation (i.e. rondom)

Continual improvement and profound knowledgeProfound knowledge includes;a. An appreciation for a systemb. A theory of variationc. Theory of knowledged. Psychology

emings 14 points1. Create constancy purpose towards improvement of product and services2. Adopt new philosophy3. Cease dependence on mass inspection (prevent defect rather than detect defect)4. Eliminate supplier that cannot qualify with the statistical evidence of quality.5. Find problem and solve it6. Institute modern methods on job training7. Management take action on report for improvement8. Drive out fear, so that everyone may work effectively9. Breakdown barrier between department10.Improving productivity by improving methods

11.Eliminate work standard that prescribe numerical quotas12.Remove barriers that stand between the hourly worker and his right to pride ofworkmanship

13.Institute a vigorous program of education and training14.Create a structure in top management that will push everyday on the above stated 13

points.

1. Joseph M. Juran Contributions: Quality is fitness for- use, Quality Trilogy Quality begins by knowing what customer wants Quality is fitness for- use - believes that 80% of quality defect are management

controllable and has the responsibility to correct them. Quality Trilogy (quality planning, quality control, quality improvement)

1. Armand Feigebaum Contributions: Quality is a total field, the customer defines quality

Recognized that quality is not simply a collection of tools and technique but a total field.

1. Philip B. Crosby Contributions: Zero defect, Do it right at the first time


3/9

1. Kauro Ishikawa Contributions: Cause-and-effect diagram, quality circles Cause-and-effect diagram fish bone analysis ( problem- solving technique) quality circles group discussion on quality Make a quality control user friendly for worker

1. Genichi Taguchi Contribution: Taguchi loss function Formula in determining the cost of poor quality

1. Taiichi Ohno and Shigeo Shingo

Continuous improvement

roduct Quality is often judge on 8 dimensions of quality1. Performance main characteristic of the product and services2. Aesthetics appearance, feel smell, taste3. Special features extra characteristic4. Conformance how well a product and services corresponds to design specifications5. Reliability consistency of performance6. Durability the useful life of the product or services7. Perceived quality- indirect evaluation of quality (i.e. reputation)8. Serviceability handling complaints or repairs.

ervice Quality is often judge on 7 dimensions of quality

1. Convenience the availability and accessibility of the service2. Reliability the ability to perform a service dependably, consistently and accurately.3. Responsiveness the willingness to help the customer in unusual situations and to

deal with problems

4. Time- the speed with which service is delivered5. Assurance the ability to convey the trust and confidence6. Courtesy the way the customer are treated7. Tangible physical appearance of facilities, equipment also ambiance

eterminants of Quality1. Design2. How well it conform with the design

3. Ease of use4. Service after delivery

onsequences of Poor Quality1. Loss of Business2. Liability3. Productivity4. Cost

enefits of Good Quality1. Ability to command premium price2. Increased in market share3. Greater customer loyalty

4. Lower liability cost5. Higher productivity6. High sales7. Few complaint8. Low cost9. High profit

ey areas of responsibility in Quality1. Top management

2. Design3. Procurement4. Production/operation5. Quality assurance

6. Packaging shipping7. Marketing and sales8. Customer services

The cost of Quality1. Appraisal cost

Cost related to measuring,evaluating and auditing

1. Prevention Cost Cost related to reducing the

potential for quality problem1. Failure cost

Cost are incurred by defective

parts or products by faultyservice2 Kinds

a. Internal failure cost cost ondefective parts occurredduring production

b. External failure cost costincurred/ contributed bysuppliers


4/9

otal Quality Management (TQM)

Is a philosophy that involved everyone in the organization in a continual effort toimprove quality and achieved customer s satisfaction.

hree Keys1. A never ending push to improve which refer to as continuous improvement2. The involvement of everyone in the organization3. Customer satisfaction

ements of TQM1. continuous improvement2. competitive bench marking3. employee empowerment4. team approach5. decision on facts6. knowledge tools7. supplier quality8. quality at source9. promote TQM at all times

rocess improvement a systematic approach of improving a process

teps:ap the process collection of info and datanalyze the processedesign the process

mplement the processudit the process

uality Tools1. Flow chart

A diagram of the steps in a process1. Check sheet

a tool for organizing and collecting data; a tally of problems or other events bycategory

2. Histogram A chart that shows empirical frequency distribution

1. Pareto chart a diagram that arrange a categories from highest to lowest frequency occurence

2. Scatter diagram A graph that shows the degree of relationship between two variables

1. Control Chart A statistical chart of time order values of a sample statistic

1. Cause and effect diagram A diagram that organize a search for cause(s) of a problem; also known a fish

bone analysis

ethods in Generating idea in TQM

1. Brainstorming technique of generating free flow of ideas in a group of people2. Affinity diagram a tool used to organized data in to logical categories3. Quality circle groups of workers who meet to discuss ways of improving products4. Interviewing- technique for identifying problems and collection of information5. Benchmarking process of measuring performance against the best in the same or

another industry.

6. 5W2H approach asking on the current process can lead into ideas to improve it

upply Chain Management


5/9

upply chain

is the sequence of organizations their facilities, functions, activities that are involved inproducing and delivering a product or services.

The sequence begins from supplier of raw materials and extended all the way until it reach itscustomer

Are sometimes referred as value chain

wo (2) components;

1. Supply component Start at the beginning of the chain and end with the internal operation of the organization

1. Demand component Start at the point where the organizations output is delivered to its immediate customer and

ends with the final customer in the chain.

rganizations in the supply chain are;

1. Customer2. suppliers

unctions and activities includes;

1. Forecasting2. Purchasing

3. Inventory mgt4. Information mgt5. Quality assurance6. Scheduling7. Production8. Delivery9. Customer services

hree (3) kinds of movement in these system;

1. The physical movement of materials2. Generally on the direction to the end of the chain3. Exchange information which moves in both direction along the chain

upply Chain Management (SCM)

Is the strategic coordination of business functions within the business organization and through-out its supply chain for the of integrating supply and demand management.

oal of supply chain management

Is to link all components of the supply chain so that market demand is met as efficiently aspossible across the entire chain.

wo (2) types of decision relevant to SCM

1. The strategic decision are design and policy decisions2. The operational decision relate to day to day activities; managing everything in accordance

with the strategic decision.

ajor areas for decisions;

1. Location

2. Production3. Distribution4. inventory

ogistic

Is the part of supply chain involved with the forward and reverse flow of goods, services, cashand information.

The movement of materials, services, cash and information in a supply chain.


6/9

ogistic management

Includes management of inbound and outbound transportation , material handling, warehousing,inventory, order fulfillment and distribution, third party logistics and reverse logistic ( the returngoods from customer)

everse Logistic

Refers to backward flow of goods returned to the supply chain from their destination.(returneddefective goods)

oals: to recapture or create value in returned goods or properly dispose of goods that cannot be re

old

wo (2) key element of managing returns are;

1. Gate keeping screening returned goods to prevent in correct acceptance of goods2. Avoidance finding ways to minimize the number of items that are returned.

raffic Management

Overseeing the shipment of incoming and outgoing goods.

stribution requirements planning (DRP)

A system for inventory management and distribution planning

upply chain is essential for the following issues;

1. The need to improved operation-lean production and TQM

2. Increasing levels of outsourcingOutsourcing buying goods or services instead of producing or providing them in house

3. Increasing transportation cost Transportation is increasing need to addressed1. Competitive pressures Increasing new products Shorter product development cycles Increased demand for customization1. Increasing globalization Lead time, currency differences, monetary fluctuation, language and cultural differences1. Increasing importance of e business

Buying and selling presented new challenges eg ebay1. The complexity of supply chains Dynamic, inherent uncertainty adversely affect on supply chain Inaccurate forecasting, late deliveries, substandard, machine breakdown, cancelled or changed

order1. Need to manage inventories Shortages, far reaching impacts, excess inventories add unnecessary costs

ullwhip effect

Occurred when inventory variability tends to increase, moving backward through the chain fromthe final customers . Even a small demand in the customer demand can result in large variationin order placed upstream, causing inventories to oscillates in a large swing when seeks to solvethe problem. Shortages and increased costs also has adversely effects.

endor managed inventory

Vendors monitor goods and replenish retail inventories when supplies are low.


7/9

lobal Supply Chain

When your products and services are sold globally a chain for supply has been interlinked withother function of business organization globally.

omplexity in Global Supply Chain

1. Language2. Cultural differences3. Currency fluctuation

4. Armed conflict5. Increase in transportation cost6. Lead time7. The increase need for trust8. Cooperation among supply chain

partners

lobal supply chain manager must be able;

1. To identify and analyze factors that differfrom country to country

2. Local capabilityies3. Financials

4. Transportation5. Communications6. Governmental requirements7. Environmental8. Regulatory issues

9. Political issues

Benefits of effective supply chain management

1. Lower inventories2. Lower cost3. Higher productivity4. Greater agility (quickness/ alertness)5. Shorter lead time6. High profits7. Greater customer loyalty

ventory is a essential in most supply chains; balance is the main objective.

urchasing

is the link between an organization and its suppliers. Is responsible in obtaining goods and services that will be used in the production in producing

product and services. Select suppliers, negotiates contract, establish alliances and act as a liaison between suppliers

and various internal department

oal : Is to develop and implement purchasing plan for product and services that support the operationrategies

uties of purchasing

1. Identifying sources of supply2. Negotiating contracts3. Maintaining a data base of suppliers4. Obtaining goods and services that meet operation requirements in a timely and costly manners5. Managing suppliers6. Established alliances7. Acts as a liaison between supplier and various internal department

urchasing Cycle

1. Purchasing receives the requisition2. Purchasing selects a supplier

3. Purchasing places the order with a vendor4. Monitoring orders5. Receiving orders

entralized Purchasing

Purchasing is handled by one special department

ecentralized Purchasing


8/9

Individual departments on separate location handled their own purchasing requirements.

rinciple in Purchasing

1. Loyalty to employer2. Justice to those you deal with3. Faith in your profession

eliable and trustworthy suppliers are a vital link in an effective SCM.

endor analysis

evaluating the sources of supply in terms ofrice, quality, reputation and services.

upplier certification

Is a detailed examination of the policiesand capabilities of a suppliers.

Verify that a supplier meet or exceed theexpectation of the buyer.

Business

Refer to the use of electronic technologyto facilitate business transaction.

Sometimes refer as to e commerce.

Use e- business

1. To promote their product and services2. Provide info about them/ company

EG UPS and Fed ex

Two (2) essential features of e business;

1. Web site2. Order fulfillment

arties/participants in supply chain must share;

1. Forecast2. Determine order status in real time

3. Access inventory data of partners

Eg.Walmart in USA

Requirements for a successful supply chain

1. Trust2. Effective communication3. Supply chain visibility4. Event management capability

-ability to detect and respond tounplanned event

5. Performance metrics

Radio frequency identification (RFID) A technology that uses radio waves to

identity objects, such as goods in supplychain.

This identify by a radio tag that isattached to an object.

The tag has an integrated circuit and anantenna that project info or other data tonetwork connected RFID reader usingradio waves.

Provide;

1. Unique identification2. Enabling business to identify, track,

monitor3. Locating it


9/9

ollaborative planning, forecasting and replenishment (CPFR) A supply chain initiative that focuses on information sharing among supply chain trading

partners in planning, forecasting and inventory replenishment.

Strategic partnering

Two or more business organizations that have complementary products or services join so thateach may realize a strategic benefits.

Step in creating an effective supply chain1. Develop strategic objectives and tactics2. Integrate and coordinate activities in the internal portion of the chain

3. Coordinate activities with suppliers and with customers4. Coordinate planning and execution across supply chain5. Consider the possibility of forming strategic partnerships

erformance drivers;1. Quality2. Cost3. Flexibility refer to the ability to adjust to change in order quantity4. Velocity refer to the rate or speed of travel through the system

Two (2) areaa. Inventory velocity the rate at which inventory (material) goes through supply chain.b. Information velocity the rate at which information is communicated in supply chain

1. Customer services

ptimizing the supply chain Means maximizing shareholder and customer value.

sintermediation- reducing one or more steps in a supply chain by cutting out one or moretermediaries.

7quality management

Documents