W6L.pdf - Week 6 Lesson Managing Quality WEEK 6 LESSON...

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4/19/2018 Week 6: Lesson: Managing Quality 1/7 WEEK 6: LESSON Quality Tools Table of Contents Opening This week, the course introduces some quality models that managers can use as part of the quality systems of an organization to prevent problems, to correct problems, to determine the root cause of problems, to monitor quality information, and much more. Given such, the lecture focuses on the application of the tools. Taguchi Loss Function Taguchi developed a loss function that also used the impact of cost as its basis. The premise of the Taguchi loss function was that any movement off of the target caused some loss to the customer. For example, if a part is designed to be bored at a set diameter but in actuality is bored at a slightly larger diameter (but still in the specification limits), and if this occurs in conjunction with another off-target boring of other parts, there is the potential to have a misassembly at some downstream process. Even if the part never reaches the customer, the customer is harmed because the cost to produce the product is higher, which is then passed on to the customer. A key element to the discussion of the Taguchi loss function is the establishment of the loss associated with each elemental movement off the target. Each elemental move need not be equal in value with respect to loss. For example, the perception that a shirt is not the proper color may not be perceivable to the customer until such a point that the shirt is grossly discolored. The issues that exist with the cost of a quality process with respect to accurate data collection and analysis also exist with the Taguchi loss function. The Taguchi loss function has great value for quality management. Let us apply Taguchi to a service function. Imagine a system for which an acceptable service level is measured, in part, by the time spent with the customer. If we spend too much time with the customer (that is, we are not efficient in helping the customer) we cause others to wait longer in line; if we do not spend enough time with the customer (because we believe speeding up the line is what the customer wants) then we may also deliver poor service (the customer actually wanted information delivered at a pace he or she can understand and use, and not a speedy discussion). Another example might be when you pick up your children after school; if they get out late, that is a problem because you have to wait, and if they get out early, that is a problem as well because the children
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4/19/2018 Week 6: Lesson: Managing Quality 2/7 have to wait. Think of the world as one giant line balance—moving off target can unbalance the line. How managers use the Taguchi loss function, then, to improve quality? Well, if any tool speaks to the value of reducing variation, this is it! The less variation we have around the target, the better the whole system will work!
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