chapter 14 quality management sell good merchandise at a reasonable profit, treat your customers...

Chapter 14Quality Management

Sell good merchandise at a reasonable profit, treat your

customers like human beings, and they will always come back for more. - Leon Leonwood Bean

2000 by Prentice-Hall, IncCh 3 - 2© 2000 by Prentice-Hall Inc

Russell/Taylor Oper Mgt 3/e

What Is Quality?

“The degree of excellence of a thing” (Webster’s Dictionary)

“The totality of features and characteristics that satisfy needs” ( ASQC)

Fitness for use



Dimensions Of Product Quality (Garvin)

Performance

Features

Reliability Conformance

Durability

Serviceability Aesthetics

Safety

Other perceptions



Service Quality

Time & Timeliness

Completeness

Courtesy

Consistency

Accessibility & Convenience

Accuracy

Responsiveness



Quality Of Conformance – the way the producer or service provider sees it

Ensuring product or service produced according to design

Depends ondesign of production processperformance of machinerymaterialstraining



Quality Philosophers

Walter Shewhart W. Edwards Deming Joseph Juran Philip Crosby Armand Feigenbaum



Total Quality Management

1. Customer defined quality

2. Top management leadership

3. Quality as a strategic issue

4. All employees responsible for quality

5. Continuous improvement

6. Shared problem solving

7. Statistical quality control

8. Training & education for all employees



TQM Throughout The Organization

Marketing, sales, R&D Engineering Purchasing Personnel Management Packing, storing, shipping Customer service How do you measure

quality for each of these functions?



TQM In Service Companies

Inputs similar to manufacturingProcesses & outputs are differentServices tend to be labor intensiveQuality measurement is harderTimeliness is important measure



Cost Of Quality

Cost of achieving good qualityPreventionAppraisal

Cost of poor qualityInternal failure costsExternal failure costs



Quality Is...

An important determinant of business profitability

Positively & significantly related to higher return on investment

- The bottom line is profitability



Quality And Productivity

Productivity = output / input

Fewer defects increase output

Quality improvement reduces inputs



Employees & Quality Improvement

Quality circles

Employee suggestions

Process improvement teams

Self-managed work teams



Seven Quality Control Tools

1. Pareto analysis

2. Flowcharts

3. Check sheets

4. Histograms

5. Scatter diagrams

6. Control charts

7. Fishbone diagram



A Pareto Chart

Per

cent

fro

m e

ach

caus

e

Causes of poor quality

Mac

hine

cal

ibra

tions

Defec

tive

parts

Wro

ng d

imen

sions

Poor D

esig

n

Ope

rato

r erro

rsDef

ectiv

e m

ater

ials

Surfa

ce a

bras

ions

0

10

20

30

40

50

60

70(64)

(13)(10)

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



A Flowchart



Check Sheet

COMPONENTS REPLACED BY LABTIME PERIOD: 22 Feb to 27 Feb 1998REPAIR TECHNICIAN: Bob

TV SET MODEL 1013

Integrated Circuits ||||

Capacitors |||| |||| |||| |||| |||| ||

Resistors ||

Transformers ||||

CommandsCRT |



Histogram

0

510152025303540

1 2 6 13 10 16 19 17 12 16 20 17 13 5 6 2 1



Scatter Diagram

.



Control Chart

18

12

6

3

9

15

21

24

27

2 4 6 8 10 12 14 16

Sample number

Num

ber

of d

efec

ts

UCL = 23.35

LCL = 1.99

c = 12.67



Fishbone Diagram

QualityProblem

MachinesMeasurement Human

ProcessEnvironment Materials

Faulty testing equipment

Incorrect specifications

Improper methods

Poor supervision

Lack of concentration

Inadequate training

Out of adjustment

Tooling problems

Old/worn

Defective from vendor

Not to specifications

Material-handling problems

Deficienciesin product design

Ineffective qualitymanagement

Poor process design

Inaccuratetemperature control

Dust and Dirt



Quality Awards And Certifications

The Malcolm Baldrige Award The Deming Prize Industry, regional, and company awards

Institute of Industrial EngineersNASAEuropean Quality Award



ISO 9000 Categories

ISO 9001 ~ Suppliers and Designers

ISO 9002 ~ Production

ISO 9003 ~ Inspection and Test

ISO 9004 ~ Quality Management

2000 by Prentice-Hall, IncCh 3 - 47© 2000by Prentice-Hall Inc


Implications Of ISO 9000

Truly international in scope Certification required by many foreign

firms U.S. firms export > $100 billion/yr to

Europe Adopted by U.S. Navy, DuPont, 3M,

AT&T, & others



ISO Accreditation

European registration3rd party registrar assesses quality programEuropean Conformity (CE) mark authorized

United States 3rd party registrarsAmerican National Standards Institute (ANSI)American Society for Quality Control (ASQC)Registrar Accreditation Board (RAB)

chapter 14 quality management sell good merchandise at a reasonable profit, treat your customers...

Documents

e quality of conformance

russelltaylor oper mgt

e cost of quality cost

e total quality management

use slide

customer defined quality

intensive quality measurement

statistical quality