class 13 - Operations Management Class 1: Introduction to...

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1 Operations Management Class 1: Introduction to OM and Process Analysis Class 2: Process Design Class 3: Process Analysis Class 6: Process Analysis » Shouldice Class 7: Project Management Class 10: Forecasting Class 11: Midterm review Class 12: Midterm exam Class 13: Quality Management and Just-In-Time/Lean Operations
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2 Learning Objectives Basic Philosophy of Quality Management Basic Philosophy of Just-In-Time/Lean Operations/Toyota Production System
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Quality Management What is “quality?” What are the “costs” associated with quality?
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What is quality? Design quality : Inherent value of the product in the marketplace Dimensions include: Performance, Features, Reliability, Durability, Serviceability, Response, Aesthetics, and Reputation. Conformance quality : Degree to which the product or service design specifications are met
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5 Costs associated with quality Cost of non-conformance Conformance Cost of control Cost
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6 Costs associated with quality External Failure Costs Appraisal Costs Prevention Costs Internal Failure Costs Costs of Quality Costs imposed due to poor quality Costs incurred to ensure good quality
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What is the source of quality problems?
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8 Process variability Variation we observe in the processes can be “normal” (random) or “abnormal” (e.g., following a trend)
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9 Process variability Processes have some variation Process capability refers to the extent of the variation Defined by process limits Specification limits defines the limits of what the process needs to produce Lower Spec Target Spec Upper Spec
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10 Quality management Involves controlling process variability Keep variability “in-control” Lower Spec Target Spec Upper Spec
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11 Quality management Involves controlling process variability Keep variability “in-control” and not “out-of-control” Lower Spec Target Spec Upper Spec
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12 Analytical Tools: Run Chart Can be used to identify when equipment or processes are not behaving according to specifications 0.44 0.46 0.48 0.5 0.52 0.54 0.56 0.58 1 2 3 4 5 6 7 8 9 10 11 12 Time Target Value
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13 Analytical Tools: Control Charts Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality 970 980 990 1000 1010 1020 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 LCL UCL
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14 Question How much reduction in process variability is desirable?
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15 Quality philosophies Early champions of quality management had differences in definition of quality, and on approach to quality management James M. Juran: There is an optimum level of quality Philip Crosby: “Quality is free” W. Edwards Deming: Continuous improvement is the key Which view do you subscribe to?
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16 Costs associated with quality Cost of non-conformance Conformance Cost of control Cost
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17 6-sigma Design tolerances are 6-standard deviations from the process mean Recall the Empirical Rule:
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This note was uploaded on 05/06/2010 for the course COMM Comm 399 taught by Professor Krishnan during the Spring '09 term at The University of British Columbia.

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class 13 - Operations Management Class 1: Introduction to...

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