Session 3 Process and Quality I

Session 3 Process and Quality I - 1 OSCM356 Operations...

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Unformatted text preview: 1 OSCM356 Operations Management Session 3 Process Performance and Quality I Fuqiang Zhang Olin Business School Washington University in St. Louis Spring 2008 Session Outline Process performance and quality Definition of quality Costs of quality Total Quality Management (TQM) Statistical Process Control (SPC) R chart x-chart OSCM356, Spring 08, Prof. Zhang Session 3 Slide 2 2 What Does Quality Mean? Conformance to specifications How a service or product conforms to performance specifications. Value How well the service or product serves its intended purpose at a price customers are willing to pay. Includes considerations such as: responsiveness, cost, features, timeliness, durability, and credibility. Fitness for use How well a service or product performs its intended purpose. Includes considerations such as reliability and serviceability. Psychological impressions Aesthetics, comfort, and image. Service/Support Responsiveness, courtesy, availability, competence, communication (pre, during, and after sales). OSCM356, Spring 08, Prof. Zhang Session 3 Slide 3 Importance of Quality Q u a l i ty o f A u to m o b i l e s C h r y s l e r 2 8 5 G M 2 5 6 F o r d 2 1 4 J a p a n e s e ( a v g .) 1 3 2 T o y o ta 5 5 Q u a l i ty o f S e m i c o n d u c to r s U .S . C o m p a n i e s J a p a n e s e C o m p a n i e s D e f e c ti v e o n D e l i v e r y 1 6 % 0 % F a i l u r e a f te r 1 , 0 0 0 h o u r s 1 4 % 1 % Q u a l i ty o f R o o m A i r C o n d i ti o n e r s U .S . C o m p a n i e s J a p a n e s e C o m p a n i e s F a b r i c a ti o n d e f e c ts 4 .4 0 % < 0 .1 % A s s e m b l y l i n e d e f e c ts 6 3 .5 0 % 0 .9 0 % W a r r e n ty C o s t ( a s % o f s a l e s ) 2 .2 0 % 0 .6 0 % Q u a l i ty o f C o l o r T V s U .S . C o m p a n i e s J a p a n e s e C o m p a n i e s A s s e m b l y l i n e d e f e c ts p e r s e t 1 .4 0 .0 1 T h i n g s g o n e w r o n g i n F i r s t E i g h t M o n th s p e r 1 0 0 c a r s A Comparison of American and Japanese Products in the 1970s and 1980s Adapted from Russel & Taylor, Operations Management, Prentice Hall, 1999. OSCM356, Spring 08, Prof. Zhang Session 3 Slide 4 3 Costs of Failure (Non-Conformance) Internal failure costs (prior to transfer of ownership to customers) scrap, rework, retest downtime purchasing errors excessive overtime External failure costs (after transfer of ownership to customers) customer complaints warranties product recall returned material potential loss of market share OSCM356, Spring 08, Prof. Zhang Session 3 Slide 5 Costs of Control (Conformance) Appraisal costs receiving inspection quality audits field performance testing inspection and testing of intermediate and final products Prevention costs quality planning process control quality training quality improvement process implementation OSCM356, Spring 08, Prof. Zhang Session 3 Slide 6 4...
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This note was uploaded on 04/15/2008 for the course ACCT 202 taught by Professor Unknown during the Spring '08 term at Washington University in St. Louis.

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Session 3 Process and Quality I - 1 OSCM356 Operations...

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