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AEM220_208ToPost - AEM220 Introduction to Business...

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Unformatted text preview: AEM220, Introduction to Business Management. Monday 2/11 Quality in Operations Understanding quality Total Quality Management Dimensions of Quality Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality Quality Standards Baldridge Awards ISO ISO 9000 ISO 14000 Deming Award (Japan) Total Quality Management The practice of striving for customer satisfaction by ensuring quality from all departments in an organization. Continuous improvement Employee empowerment Benchmarking Just in time Knowledge of TQM tools Continuous Improvement The continuous implementation of incremental improvements to steadily bring a process closer to the ideal Management by sight Management by stress Management by objectives The ability to produce only two defective units per billion produced. Six-Sigma Capability Employee Empowerment The involvement of employees in every step of the production process Quality circles Groups made up of work center members chartered with implementing continuous improvement; Focus teams Multidisciplinary teams chartered to focus on specific problems or continuous improvement objectives. How to Improve Organizational Structure Break business into smaller units Build teamwork Impose autonomy Create meaningful incentives Outsource non-operating activities Share business capabilities across units Benchmarking Selecting a demonstrated standard of performance that represent the very best performance for a process or activity; The benchmarking process Determine what to benchmark; Form a benchmark team; Identify benchmarking partners; Collect and analyze benchmarking information; Take action to match or exceed the benchmark. Just-in-Time Philosophy: Achieving Process Synchronization Process "synchronization" refers to the ability of the process to meet customers' demand in terms of their exact quality, quantity, time, and location requirements; Exactly what is needed; Exactly how much is needed; Exactly when is needed; Exactly where is needed. Process "efficiency" is measured in terms of total processing cost, the ideal being to develop, produce, and deliver products at the lowest possible cost. Tools of Total Quality Management Quality function deployment Taguchi technique Pareto charts Process charts Cause-and-effect diagrams Statistical process control Six-sigma paradigm Six sigma quality is a quality measure that allows only 3.4 defects per million of opportunities. Takeaways Formal organizational structures (organizational charts) help in establishing responsibility and control lines. However, they are very inflexible. In order to improve organizational effectiveness and efficiency, concentrate on quality, as perceived by your customer; The tools of TQM and JIT are an effective way to improve operations consistently and sustainably; NOTE: TQM is well covered in any good Operations Management textbook, such as "Operations Management", Render and Heizer (Pearson/PrenticeHall) ...
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