Chapter_4_Quality - Chapter 4 Quality Management Quality is...

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Unformatted text preview: Chapter 4 Quality Management Quality is a measure of goodness that is inherent to a product or service. Bottom line: perspective has to be from the Customer fitness for use What Is Quality? "The degree of excellence of a thing" (Webster's Dictionary) "The totality of features and characteristics that satisfy needs" (ASQ) Fitness for use Quality of design Quality Quality Management not owned by any functional area cross functional Measure of goodness that is inherent to a product or service FedEx and Quality Digitally Assisted Dispatch System communicate with 30K couriers 1-10-100 rule i 1 if caught and fixed as soon as it occurs, it costs a certain amount of time and money to fix i 10 if caught later in different department or location = as much as 10X cost i 100 if mistake is caught by the customer = as much as 100X to fix Product Quality Dimensions Product Based found in the product attributes User Based if customer satisfied Manufacturing Based conform to specs Value Based perceived as providing good value for the price Dimensions of Quality (Garvin) 1. Performance Basic operating characteristics 2. Features "Extra" items added to basic features 3. Reliability Probability product will operate over time Dimensions of Quality (Garvin) 1. Conformance Meeting pre-established standards 2. Durability Life span before replacement 3. Serviceability Ease of getting repairs, speed & competence of repairs Dimensions of Quality (Garvin) 1. Aesthetics Look, feel, sound, smell or taste 2. Safety Freedom from injury or harm 3. Other perceptions Subjective perceptions based on brand name, advertising, etc Service Quality 1. Time & Timeliness Customer waiting time, completed on time 2. Completeness Customer gets all they asked for 3. Courtesy Treatment by employees Service Quality 1. Consistency Same level of service for all customers 2. Accessibility & Convenience Ease of obtaining service 3. Accuracy Performed right every time 4. Responsiveness Reactions to unusual situations Quality of Conformance Ensuring product or service produced according to design Depends on Design of production process Performance of machinery Materials Training Walter Shewhart Statistical Process Control W. Edwards Deming Joseph Juran strategic and planning based Armand Fiegenbaum total quality control "entire business must be involved in quality improvement" Quality Philosophers Deming's 14 Points 1. 2. 3. 4. Create constancy of purpose Adopt philosophy of prevention Cease mass inspection Select a few suppliers based on quality 5. Constantly improve system and workers 6. Institute worker training Deming's 14 Points 1. Instill leadership among supervisors 2. Eliminate fear among employees 3. Eliminate barriers between departments 4. Eliminate slogans 5. Remove numerical quotas Deming's 14 Points 1. Enhance worker pride 2. Institute vigorous training and education programs 3. Develop a commitment from top management to implement these 13 points The Deming Wheel (or PDCA Cycle) 4. Act Institutionalize improvement; continue the cycle. 1. Plan Identify the problem and develop the plan for improvement. 3. Study/Check Assess the plan; is it working? 2. Do Implement the plan on a test basis. Also known as the Shewart Cycle Six Sigma Quality management program that measures and improves the operational performance of a company by identifying and correcting defects in the company's processes and products Six Sigma Started By Motorola Define Measure Analyze Improve Control Made Famous by General Electric 40% of GE executives' bonuses tied to 6 sigma implementation Malcolm Baldrige National Quality Award Category 3 determine requirements, expectations, preferences of customers and markets Category 4 what is important to the customer and the company; how does company improve Total Quality Management 1. Customer defined quality 2. Top management leadership 3. Quality as a strategic issue 4. All employees responsible for quality 5. Continuous improvement 6. Shared problem solving 7. Statistical quality control 8. Training & education for all employees Strategic Implications of TQM Quality is key to effective strategy Clear strategic goal, vision, mission High quality goals Operational plans & policies Feedback mechanism Strong leadership Cost of Quality Cost of achieving good quality Prevention Planning, Product design, Process, Training, Information Appraisal Inspection and testing, Test equipment, Operator Cost of Quality Cost of poor quality Internal failure costs Scrap, Rework, Process failure, Process downtime, Pricedowngrading External failure costs Customer complaints, Product return, Warranty, Product liability, Lost sales Employees and Quality Improvement Employee involvement Quality circles Process improvement teams Employee suggestions CauseandEffect Diagram Measurement Faulty testing equipment Incorrect specifications Improper methods Human Poor supervision Lack of concentration Inadequate training Machines Out of adjustment Tooling problems Old / worn Inaccurate temperature control Quality Problem Defective from vendor Not to specifications Poor process design Ineffective quality management Deficiencies in product design Dust and Dirt Materialhandling problems Environment Materials Process Also known as Ishikawa Diagram or Fish Bone Hot House Quality Lots of Hoopla and no follow through Acceptance sampling Make inferences about an entire batch of items based upon the characteristics of a sample taken from the batch/lot. Why sampling? In most cases 100% inspection is too costly In some cases 100% inspection may be impossible Where to Inspect in the Process Raw materials and purchased parts Finished products Before a costly operation Before an irreversible process Before a covering process Employee Training and Fact Based Management Employee needs training to work effectively in groups and to use group problem solving. Fact-based management force to make decisions base on facts, data, and analysis-instead of intuition. " What's get measured gets attention." Components of Continuous Improvement Standardize and document procedures Assign teams to identify areas for improvement Use methods analysis and problemsolving tools Use the Plan-Do-Check-Act cycle Document improved procedures ISO 9000 Family The ISO 9000 family of standards represents an international consensus on good quality management practices. It consists of standards and guidelines relating to quality management systems and related supporting standards. ISO Standards Why an organization should implement ISO 9001:2008 Without satisfied customers, an organization is in peril! To keep customers satisfied, the organization needs to meet their requirements. The ISO 9001:2008 standard provides a tried and tested framework for taking a systematic approach to managing the organization's processes so that they consistently turn out product that satisfies customers' expectations. Per iso_9000_iso_14000/iso_9000_essentials.htm ISO 9000:2008 Customer focus Leadership Involvement of the people Process approach Systems approach to management Continual process improvement Factual approach to decision making Mutually beneficial supplier relationships lays down what requirements your quality system must meet, but does not ISO 9001:2008 gives the requirements for quality management systems, is now firmly established as the globally implemented standard for providing assurance about the ability to satisfy quality requirements and to enhance customer satisfaction in supplier-customer relationships. ISO Accreditation International Accreditation Forum European registration 3rd party registrar assesses quality program European Conformity (CE) mark authorized US ISO Auditors United States 3rd party registrars American National Standards Institute (ANSI) American Society for Quality (ASQ) Registrar Accreditation Board (RAB) American Association for Laboratory Accreditation Focus on the Customer To find out exactly what the customer wants and what he or she likes and dislikes. Juran's definition of quality as fitness for use provides the groundwork for focusing on the customer. The more a company understands its customers, the better it will be at meeting or exceeding their needs and expectations ISO 14000 ISO 14000 - A set of international standards for assessing a company's environmental performance Standards in three major areas Management systems: Systems development and integration of environmental responsibilities into business planning Operations: Consumption of natural resources and energy Environmental systems: Measuring, assessing and managing emissions, effluents, and other waste Summary Tuesday Exam 1 3x5 Card Review ...
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This note was uploaded on 11/22/2010 for the course ACCT 320 taught by Professor Alee during the Spring '10 term at Kansas State University.

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