ops mgt 10_11_Quality Management_Spring08-3

ops mgt 10_11_Quality Management_Spring08-3 - Quality...

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Quality Management It costs a lot to produce a bad product. Norman Augustine
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What is quality?
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Developing quality specifications Input Process Output Design Design quality Dimensions of quality Conformance quality
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What is quality management all about? Try to manage all aspects of the organization in order to excel in all dimensions that are important to “customers” Two aspects of quality: features: more features that meet customer needs = higher quality freedom from trouble: fewer defects = higher quality
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Cost of quality 1. Prevention costs 2. Appraisal costs 3. Internal failure costs 4. External failure costs 5. Opportunity costs
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History: how did we get here… Deming and Juran outlined the principles of Quality Management. Tai-ichi Ohno applies them in Toyota Motors Corp. Japan has its National Quality Award (1951). U.S. and European firms begin to implement Quality Management programs (1980’s). U.S. establishes the Malcolm Baldridge National Quality Award (1987). Today, quality is an imperative for any business.
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What does Total Quality Management encompass? TQM is a management philosophy: continuous improvement leadership development partnership development Cultural Alignment Technical Tools (Process Analysis, SPC, QFD) Customer
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Six Sigma?
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Continuous improvement philosophy 1. Kaizen: Japanese term for continuous improvement. A step-by-step improvement of business processes. 2. PDCA: Plan - do - check - act as defined by Deming. Plan Do Act Check 3. Benchmarking : what do top performers do?
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Tools used for continuous improvement 1. Process flowchart
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Tools used for continuous improvement 2. Run Chart Performance Time
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Tools used for continuous improvement 3. Control Charts Performance Metric Time
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Tools used for continuous improvement 4. Cause and effect diagram (fishbone) Environment Machine Man Method Material
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Tools used for continuous improvement 5. Check sheet Item A B C D E F G ------- ------- ------- √ √ √ √ √ √ √ √ √ √ √ √ √ √
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Tools used for continuous improvement 6. Histogram Frequency
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Tools used for continuous improvement 7. Pareto Analysis A B C D E F Frequency Percentage 50% 100% 0% 75% 25% 10 20 30 40 50 60
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Summary of Tools 1. Process flow chart 2. Run diagram 3. Control charts 4. Fishbone 5. Check sheet 6. Histogram 7. Pareto analysis
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Case: shortening telephone waiting time… A bank is employing a call answering service The main goal in terms of quality is “zero waiting time” - customers get a bad impression - company vision to be friendly and easy access The question is how to analyze the situation and improve quality
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The current process Custome r B Operato r Custome r A Receivin g Party How can we reduce waiting time?
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ops mgt 10_11_Quality Management_Spring08-3 - Quality...

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