ch14 4th edition

8/6/2019 Ch14 4th Edition

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Copyright 2006 John Wiley & Sons, Inc.

Operations Management - 4 th Edition

Operations Management - 4 th Edition

Chapter 14 Chapter 14

Roberta Russell & Bernard W. Taylor, III

Quality Management Quality Management


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Copyright 2006 John Wiley & Sons, Inc. 3-2

Lecture OutlineLecture Outline

Meaning of QualityMeaning of QualityTotal Quality ManagementTotal Quality ManagementQuality Improvement and Role ofQuality Improvement and Role ofEmployeesEmployeesStrategic Implications of TQMStrategic Implications of TQMSix SigmaSix Sigma


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Lecture Outline (cont.)Lecture Outline (cont.)

TQM in Service CompaniesTQM in Service Companies

Cost of QualityCost of QualityQuality Management and ProductivityQuality Management and ProductivityIdentifying Quality Problems and CausesIdentifying Quality Problems and Causes

Quality Awards and Setting QualityQuality Awards and Setting QualityStandardsStandardsISO 9000ISO 9000


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Meaning of QualityMeaning of Quality

Websters DictionaryWebsters Dictionarydegree of excellence of a thingdegree of excellence of a thing

American Society for QualityAmerican Society for Qualitytotality of features and characteristicstotality of features and characteristicsthat satisfy needsthat satisfy needs

Consumers and producersConsumers and producersperspectiveperspective


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Meaning of Quality:Meaning of Quality:

Consumers PerspectiveConsumers PerspectiveFitness for useFitness for use

how well product or servicehow well product or service

does what it is supposed todoes what it is supposed toQuality of designQuality of design

designing qualitydesigning qualitycharacteristics into a productcharacteristics into a productor serviceor service

A Mercedes and a Ford areA Mercedes and a Ford areequally fit for use, but withequally fit for use, but withdifferent design dimensionsdifferent design dimensions


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Dimensions of Quality:Dimensions of Quality:

Manufactured ProductsManufactured ProductsPerformancePerformance

basic operating characteristics of a product; howbasic operating characteristics of a product; how

well a car is handled or its gas mileagewell a car is handled or its gas mileageFeaturesFeaturesextra items added to basic features, such as aextra items added to basic features, such as astereo CD or a leather interior in a carstereo CD or a leather interior in a car

ReliabilityReliabilityprobability that a product will operate properlyprobability that a product will operate properlywithin an expected time frame; that is, a TV willwithin an expected time frame; that is, a TV willwork without repair for about seven yearswork without repair for about seven years


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ConformanceConformance degree to which a product meets preestablisheddegree to which a product meets preestablishedstandardsstandards

DurabilityDurabilityhow long product lasts before replacement?how long product lasts before replacement?

ServiceabilityServiceabilityease of getting repairs, speed of repairs, courtesyease of getting repairs, speed of repairs, courtesyand competence of repair personand competence of repair person


Manufactured Products (cont.)Manufactured Products (cont.)



AestheticsAestheticshow a product looks, feels, sounds,how a product looks, feels, sounds,

smells, or tastes?smells, or tastes?SafetySafetyassurance that customer will not sufferassurance that customer will not sufferinjury or harm from a product; aninjury or harm from a product; anespecially important consideration forespecially important consideration for

automobilesautomobilesPerceptionsPerceptions

subjective perceptions based on brandsubjective perceptions based on brandname, advertising, and likename, advertising, and like


Manufactured Products (cont.)Manufactured Products (cont.)




ServiceServiceTime and timelinessTime and timeliness

how long must a customer wait for service,how long must a customer wait for service,and is it completed on time?and is it completed on time?is an overnight package delivered overnight?is an overnight package delivered overnight?

Completeness:Completeness:is everything customer asked for provided?is everything customer asked for provided?is a mail order from a catalogue companyis a mail order from a catalogue companycomplete when delivered?complete when delivered?




Service (cont.)Service (cont.)Courtesy:Courtesy:

how are customers treated by employees?how are customers treated by employees?are catalogue phone operators nice and areare catalogue phone operators nice and aretheir voices pleasant?their voices pleasant?

ConsistencyConsistencyis same level of service provided to eachis same level of service provided to eachcustomer each time?customer each time?is your newspaper delivered on time everyis your newspaper delivered on time everymorning?morning?



Accessibility and convenienceAccessibility and conveniencehow easy is it to obtain service?how easy is it to obtain service?

does service representative answer you calls quickly?does service representative answer you calls quickly?AccuracyAccuracy

is service performed right every time?is service performed right every time?is your bank or credit card statement correct every month?is your bank or credit card statement correct every month?

ResponsivenessResponsivenesshow well does company react to unusual situations?how well does company react to unusual situations?how well is a telephone operator able to respond to ahow well is a telephone operator able to respond to acustomers questions?customers questions?


Service (cont.)Service (cont.)




Producers PerspectiveProducers Perspective

Quality of conformanceQuality of conformanceMaking sure product or service is producedMaking sure product or service is producedaccording to designaccording to design

if new tires do not conform to specifications, theyif new tires do not conform to specifications, theywobblewobbleif a hotel room is not clean when a guest checksif a hotel room is not clean when a guest checksin, hotel is not functioning according toin, hotel is not functioning according tospecifications of its designspecifications of its design




A Final PerspectiveA Final Perspective

Consumers and producersConsumers and producersperspectives depend on each otherperspectives depend on each otherConsumers perspective: PRICEConsumers perspective: PRICEProducers perspective: COSTProducers perspective: COSTConsumers view must dominateConsumers view must dominate



Fitness for Consumer Use

Fitness for Consumer Use

Producers PerspectiveProducers Perspective Consumers PerspectiveConsumers Perspective

Quality of ConformanceQuality of Conformance

Conformance to

specifications Cost

Quality of DesignQuality of Design

Quality characteristics Price

MarketingMarketingProductionProduction





Total Quality ManagementTotal Quality Management

Principles of TQMPrinciples of TQMCustomer-orientedCustomer-orientedLeadershipLeadershipStrategic planningStrategic planningEmployee responsibilityEmployee responsibility

Continuous improvementContinuous improvementCooperationCooperationStatistical methodsStatistical methodsTraining and educationTraining and education



Quality GurusQuality Gurus

Walter ShewartWalter ShewartIn 1920s, developed control chartsIn 1920s, developed control chartsIntroduced term Introduced term quality assurance quality assurance

W. Edwards DemingW. Edwards Deming Developed courses during World War II to teachDeveloped courses during World War II to teachstatistical quality-control techniques to engineers andstatistical quality-control techniques to engineers andexecutives of companies that were military suppliersexecutives of companies that were military suppliersAfter war, began teaching statistical quality control toAfter war, began teaching statistical quality control to

Japanese companiesJapanese companiesJoseph M. JuranJoseph M. JuranFollowed Deming to Japan in 1954Followed Deming to Japan in 1954Focused on strategic quality planningFocused on strategic quality planning



Armand V. FeigenbaumArmand V. FeigenbaumIn 1951, introduced concepts of total quality control andIn 1951, introduced concepts of total quality control andcontinuous quality improvementcontinuous quality improvement

Philip CrosbyPhilip CrosbyIn 1979, emphasized that costs of poor quality farIn 1979, emphasized that costs of poor quality faroutweigh cost of preventing poor qualityoutweigh cost of preventing poor qualityIn 1984, defined absolutes of quality managementIn 1984, defined absolutes of quality managementconformance to requirements, prevention, and zeroconformance to requirements, prevention, and zerodefectsdefects

Kaoru IshikawaKaoru IshikawaPromoted use of quality circlesPromoted use of quality circlesDeveloped fishbone diagramDeveloped fishbone diagramEmphasized importance of internal customerEmphasized importance of internal customer

Quality Gurus (cont.)Quality Gurus (cont.)



Demings 14 PointsDemings 14 Points

1.1. Create constancy of purposeCreate constancy of purpose

2.2. Adopt philosophy of prevention Adopt philosophy of prevention3.3. Cease mass inspectionCease mass inspection4.4. Select a few suppliers based onSelect a few suppliers based on

quality quality 5.5. Constantly improve system and Constantly improve system and

workersworkers



6.6. Institute worker training Institute worker training

7.7. Instill leadership among Instill leadership among supervisors supervisors

8.8. Eliminate fear among employees Eliminate fear among employees

9.9. Eliminate barriers between Eliminate barriers between departments departments

10.10. Eliminate slogans Eliminate slogans

Demings 14 Points (cont.)Demings 14 Points (cont.)



11.11. Remove numerical quotas Remove numerical quotas

12.12. Enhance worker pride Enhance worker pride 13.13. Institute vigorous training and Institute vigorous training and

education programs education programs

14.14. Develop a commitment from top Develop a commitment from top management to implement management to implement above 13 points above 13 points

Demings 14 Points (cont.)Demings 14 Points (cont.)


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Deming Wheel: PDCADeming Wheel: PDCA

CycleCycle1. PlanIdentifyproblem and

develop planfor improvement.

2. DoImplement

plan on a testbasis.

3. Study/CheckAssess plan; is it

working?

4. ActInstitutionalizeimprovement;

continuecycle.


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Seven Quality Control ToolsSeven Quality Control Tools

Pareto AnalysisPareto AnalysisFlow ChartFlow ChartCheck SheetCheck Sheet

HistogramHistogram

Scatter DiagramScatter DiagramStatistical ProcessStatistical ProcessControl (SPC) ChartControl (SPC) Chart

Cause-and-EffectCause-and-EffectDiagramDiagram


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NUMBER OFNUMBER OFCAUSECAUSE DEFECTSDEFECTS PERCENTAGEPERCENTAGE

Poor designPoor design 8080 6464 %%Wrong part dimensionsWrong part dimensions 1616 1313Defective partsDefective parts 1212 1010Incorrect machine calibrationIncorrect machine calibration 77 66Operator errorsOperator errors 44 33

Defective materialDefective material 33 22Surface abrasionsSurface abrasions 33 22

125125 100100 %%

Pareto AnalysisPareto Analysis


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Percentfrom eachcause

Percentfrom eachcause

Causes of poor qualityCauses of poor quality M a

c h i n e

c a l i b

r a t i o n s

M a c h i n e

c a l i b

r a t i o n s

D e f e c

t i v e p

a r t s

D e f e c

t i v e p

a r t s

W r o n

g d i m

e n s i o

n s

W r o n

g d i m

e n s i o

n s

P o o r

D e s i g n

P o o r

D e s i g n

O p e r a

t o r e r r o r s

O p e r a

t o r e r r o r s

D e f e c

t i v e m

a t e r i a l s

D e f e c

t i v e m

a t e r i a l s

S u r f a

c e a b r a s

i o n s

S u r f a

c e a b r a s

i o n s00

1010

2020

3030

4040

5050

6060

7070(64)(64)

(13)(13)(10)(10)

(6)(6)(3)(3) (2)(2) (2)(2)

Pareto ChartPareto Chart


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Flow ChartFlow Chart

Operation DecisionStart/Finish

Start/Finish

Operation

OperationOperation

Operation

Decision


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Check SheetCheck Sheet

COMPONENTS REPLACED BY LABTIME PERIOD: 22 Feb to 27 Feb 2002REPAIR TECHNICIAN: Bob

TV SET MODEL 1013

Integrated Circuits ||||Capacitors |||| |||| |||| |||| |||| ||Resistors ||Transformers ||||CommandsCRT |


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HistogramHistogram

0

5

10

15

20

1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1


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Scatter DiagramScatter Diagram

Y Y

X X


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Control ChartControl Chart

1818

1212

66

33

99

1515

2121

2424

22 44 66 88 1010 1212 1414 1616

Sample number Sample number

Numberofdefects

Numberofdefects

UCL = 23.35

LCL = 1.99

c = 12.67


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Cause-and-Effect DiagramCause-and-Effect Diagram

QualityProblemQuality

Problem

Out of adjustmentOut of adjustment

Tooling problemsTooling problems

Old / wornOld / worn

MachinesMachinesFaultyFaultytesting equipmenttesting equipment

Incorrect specificationsIncorrect specifications

Improper methodsImproper methods

MeasurementMeasurement

Poor supervisionPoor supervision

Lack of concentrationLack of concentration

Inadequate trainingInadequate training

HumanHuman

DeficienciesDeficienciesin product designin product design

Ineffective qualityIneffective quality

managementmanagement

Poor process designPoor process design

ProcessProcess

InaccurateInaccuratetemperaturetemperaturecontrolcontrol

Dust and DirtDust and Dirt

EnvironmentEnvironment

Defective from vendor Defective from vendor

Not to specificationsNot to specifications

Material-Material-handling problemshandling problems

MaterialsMaterials


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Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.All rights reserved. Reproduction or translationAll rights reserved. Reproduction or translation

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be addressed to the Permission Department,be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may John Wiley & Sons, Inc. The purchaser maymake back-up copies for his/her own use onlymake back-up copies for his/her own use onlyand not for distribution or resale. The Publisherand not for distribution or resale. The Publisherassumes no responsibility for errors, omissions,assumes no responsibility for errors, omissions,or damages caused by the use of theseor damages caused by the use of these

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