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Lecture 7- Chapter 9 - Chapter 9 Chapter Quality Management...

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Unformatted text preview: Chapter 9 Chapter Quality Management WorldClass Service Overview Overview q q q q q q q Nature of Quality Traditional Quality Management Modern Quality Management Emerging Quality Standards Total Quality Management (TQM) Programs Quality Management in Services Wrap-Up: What World-Class Producers Do What is Quality? What “The quality of a product or service is a The customer’s perception of the degree to which the product or service meets his or her expectations.” product Nature of Quality Nature q q q Dimensions of Quality Determinants of Quality Costs of Quality Best-In-Class and World-Class Best-In-Class q q q Customers’ expectations of quality are not the same Customers’ for different classes of products or services. classes Best-in-class quality means being the best product or service in a particular class of products or services. service Being a world-class company means that each of its Being world-class products and services are considered best-in-class by its customers. its Some Dimensions of Product Quality Some q q q q q q q q Performance Features Reliability Serviceability Durability Appearance Customer service Safety Determinants of Quality Determinants q q q q q Quality of design Quality capability of production processes Quality of conformance Quality of customer service Organizational quality culture Costs of Quality Costs q q q q Scrap and rework rescheduling, repairing, retesting .... Defective products in the hands of the customer recalls, warranty claims, law suits, lost business .... Detecting defects inspection, testing …. Preventing defects training, product/process redesign …. q q q q Modern Quality Management Modern q q q Quality Gurus Quality Drives the Productivity Machine Other Aspects of the Quality Picture Evolution of Quality Management Evolution 1924 - Statistical process control charts q 1930 - Tables for acceptance sampling q 1940’s - Statistical sampling techniques q 1950’s - Quality assurance/TQC q 1960’s - Zero defects q 1970’s - Quality assurance in services q Quality Gurus Quality q q q W. Edwards Deming Assisted Japan in improving productivity and Assisted quality quality Philip B. Crosby In Quality Is Free contends that a company should In Quality have the goal of zero defects have Armand V. Feigenbaum Developed the concept of total quality control q q q Gurus (continued) (continued) q q q Kaoru Ishikawa Developed the concept of quality circles and use of Developed quality fishbone diagrams fishbone Joseph M. Juran Wrote Quality Control Handbook Wrote Quality Genichi Taguchi Associated with robust product design Associated q q q Responsibility for Quality q q q q q q q q Top management Design Procurement Production/operations Quality assurance Packaging and shipping Marketing and sales Customer service Ethics and Quality q Substandard work Defective products Substandard service Poor designs Shoddy workmanship Substandard parts and materials q q q q q Having knowledge of this and failing to correct and report it in a timely manner is unethical. Quality Drives the Productivity Machine Quality q If production does it right the first time and produces If products and services that are defect-free, waste is eliminated and costs are reduced. eliminated Quality management programs today are viewed by Quality many companies as productivity improvement programs. programs. q Other Aspects of the Quality Picture Other q q q q Just-In-Time (JIT) manufacturing Product standardization Automated equipment Preventive maintenance Emerging Quality Standards Emerging q q q Malcolm Baldrige National Quality Award Deming Prize ISO 9000 Standards Elements of TQM Elements q q q q q q Top management commitment and involvement Customer involvement Design products for quality Design production processes for quality Control production processes for quality . . . more Elements of TQM Elements q q q q Develop supplier partnerships Customer service, distribution and installation Building teams of empowered employees Benchmarking and continuous improvement Top Management Top Commitment and Involvement q q q Support must be genuine or TQM will be seen as just Support another passing fad another Fundamental changes must occur in the culture of the Fundamental organization organization Such fundamental changes are not easy, but are Such impossible without top management’s commitment and involvement and Customer Involvement Customer q q Mechanisms to involve the customer Focus groups Market surveys Customer questionnaires Market research programs Quality Function Deployment (QFD) Formal system for identifying customer wants Eliminate wasteful product features and activities Eliminate that do not contribute that q q q q q q Designing Products for Quality Designing q q q Designing for Robustness Designing Robustness Product will perform as intended even if Product undesirable conditions occur in production or in field. field. Designing for Manufacturability (DFM) Designing Manufacturability Products typically have fewer parts and can be Products assembled quickly, easily, and error-free. assembled Designing for Reliability Designing Reliability Manufacturing parts to closer tolerances. Manufacturing Redundant components where necessary. Redundant Designing and Controlling Designing Production Processes q q The responsibility of producing products of high The quality rests with the workers producing the product quality Two types of factors introduce variation in Two production processes production Controllable factors - can be reduced by workers Controllable and management and Uncontrollable factors - reduced only by Uncontrollable redesigning or replacing existing processes redesigning q q Developing Supplier Partnerships Developing q q Supplier becomes part of the customer’s TQM Supplier program program The relationship between the supplier and the The customer becomes long-lasting and durable customer Building Teams of Empowered Employees Building q q q q Employee training programs Employees at all levels are trained in quality. Works teams and empowerment Workers are given the authority to act. Quality at the source Workers are responsible for their own work. Quality circles Small groups of employees who analyze and Small solve quality problems and implement improvement programs. improvement q q q q Benchmarking and Continuous Improvement Benchmarking q q Benchmarking The practice of establishing internal standards of The performance by looking to how world-class companies run their businesses companies Continuous Improvement The company makes small incremental The improvements toward excellence on a continual basis basis q q TQM in Services TQM q q q q Since many services are intangible, it is difficult to Since determine their quality determine Customers set their own standards for services Perceived quality of service affected by the Perceived surroundings surroundings Performance of service employees determines in Performance large part the quality of the services large Six Sigma Six Statistically Having no more than 3.4 defects per million q Conceptually Program designed to reduce defects Requires the use of certain tools and Requires techniques techniques q q q q Six Sigma Programs Six Six Sigma programs Six Improve quality Save time Cut costs q Employed in Employed Design Production Service Inventory management Delivery q q q q q q q q q Six Sigma Process Six Define q Measure q Analyze q Improve q Control q DMAIC The Process Improvement Cycle The Select a process Document Study/document Evaluate Implement the Improved process Seek ways to Improve it Design an Improved process Basic Quality Tools Basic Flowcharts q Check sheets q Histograms q Pareto Charts q Scatter diagrams q Control charts q Cause-and-effect diagrams q Run charts q Cause and Effect Diagram Cause Pareto Analysis Pareto 80% of the problems may be attributed to 20% of the causes. Number of defects Off Smeared Missing Loose Other center print label ISO 9000 Series ISO ISO 9000 ISO 9001 Table 9-7 Helps companies determine which standard of ISO 9001, 9002, and 9003 applies Outlines guidelines for companies that engaged in design, development, production, installation, and servicing of products or service Similar to 9001, but excludes companies engaged in design and development Covers companies engaged in final inspection and testing The guidelines for applying the elements of the Quality Management System ISO 9002 ISO 9003 ISO 9004 ISO 10000 Series ISO ISO 10011 ISO 10013 Quality system auditing guide Quality manual development guide ISO 9000 Registration Process ISO q When an organization feels that its quality system is When good enough, it may ask an accredited registrar or other third party audit team for pre-assessment. ISO 9000 Registration Process ISO q The final audit begins with a review of the The company's quality manual, which the accredited registrar or third party audit team typically uses as its guide. The audit team checks to see that the documented quality system meets the requirement of ISO 9000 and that the organization is practicing what is documented. what ISO 9000 Registration Process ISO q When the registrar is satisfied with the favorable When recommendation of the audit team, it grants registration and issues a registration document to the company. the ISO 14000 q q ISO 14000 - A set of international standards for ISO assessing a company’s environmental performance assessing Standards in three major areas Management systems Operations Environmental systems q q q ISO 14000 q q q Management systems Systems development and integration of Systems environmental responsibilities into business planning planning Operations Consumption of natural resources and energy Environmental systems Measuring, assessing and managing emissions, Measuring, effluents, and other waste effluents, q q q Wrap-Up: World-Class Practice Wrap-Up: q q q q q Quality begins when business strategy is formulated Quality is the weapon of choice to capture global Quality markets markets Quality drives the productivity machine Not depending on inspection to catch defects; Not concentrating on doing things right the first time concentrating Committing tremendous resources to put in place Committing TQM programs aimed at continuous improvement TQM ...
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