Class8 - 1 Operations Management Class 1 Introduction to OM...

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Unformatted text preview: 1 Operations Management Class 1: Introduction to OM and Process Analysis Class 2: Process Analysis Class 3 and 4: Process Analysis Continued Class 5 and 6: Variability in Processes Class 7: Forecasting Class 8: Quality Management, JIT, MRP, and ERP 2 Learning Objectives ◆ Basic Philosophy of Quality Management ◆ Basic Philosophy of Just-In-Time ( JIT ), Materials Requirements Planning ( MRP ), and Enterprise Resource Planning ( ERP ) Quality Management ◆ What is “quality?” ◆ What are the “costs” associated with quality? 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 5 Costs associated with quality Cost of non-conformance Conformance Cost of control Cost 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 What is the source of quality problems? 8 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 9 Quality management ◆ Involves controlling process variability – Keep variability “in-control” Lower Spec Target Spec Upper Spec 10 Quality management ◆ Involves controlling process variability – Keep variability “in-control” and not “out-of-control” Lower Spec Target Spec Upper Spec 11 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? 12 Costs associated with quality Cost of non-conformance Conformance Cost of control Cost 13 6-sigma ◆ Design tolerances are 6-standard deviations from the process mean ◆ Recall the Empirical Rule: – Mean ± 1 SD contains about 68% (2/3) of the data values – Mean ± 2 SD contains about 95% of the data values...
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Class8 - 1 Operations Management Class 1 Introduction to OM...

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