BUS786-06-QM - 1 Quality Management Total Quality...

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Unformatted text preview: 1 Quality Management: Total Quality Management and Statistical Process Control S. Cholette BUS786 UCL LCL LCL LCL UCL UCL Process not centered and not stable Process centered and stable Additional improvements made to the process 2 Outline of Quality Module • Quality Management is very important for Operations Management. It is the entire focus of one DS class. • However, can only introduce many of the ideas and methods in our limited time. The emphasis in this class will be on Total Quality Management (TQM) and Statistical Process Control (SPC) • We skip around parts of 2 chapters of Stevenson: 1. Chapter 9: Management of Quality – Read all for background, but focus on Quality Tools – Chapter 10: Quality Control- read about Statistical Process Control – We will not study acceptance sampling or run tests • Focus is on identifying, creating and interpreting x, R, p and c charts 3 Introduction to Quality- Chapter 9 • What does the term quality mean? Quality is the ability of a product or service to consistently meet or exceed customer expectations 4 Dimensions of Quality 1. Performance- main characteristics of the product/service • Conformance- how well product/service conforms to specifications and to customer’s expectations 1. Aesthetics- appearance, feel, smell, taste 2. Special features - extra characteristics 3. Safety- Risk of injury 4. Reliability- consistency of performance 5. Durability- useful life of the product/service 6. Perceived Quality - indirect evaluation of quality (e.g. reputation) 7. Service after sale - handling of customer complaints or checking on customer satisfaction 5 Costs of Quality • Failure Costs- costs incurred by defective parts/products or faulty services – Internal Failure Costs • Costs incurred to fix problems that are detected before the product/service is delivered to the customer. – External Failure Costs • All costs incurred to fix problems that are detected after the product/service is delivered to the customer. • Appraisal Costs – All product and/or service inspection costs • Prevention Costs – All quality training, quality planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring • In general, increasing spending (appropriately) on appraisal and prevention will lower failure costs 6 The Consequences of Poor Quality 1. Loss of business 2. Liability 3. Productivity – Rework consumes capacity 1. Costs • Furthermore, the cost of poor quality increases with later detection Cost of detection (dollars) Process Final testing Customer When defect is detected 7 Real Life Examples of Quality Failures: Thousands Given Wrong STD Results 10/30/03 Yahoo News • CRANBROOK, British Columbia - About 3,000 people got the wrong results when they were tested for gonorrhea and chlamydia over an 18-month period, health officials say. Because of a faulty diagnostic machine in this southeastern British Columbia town, test results for...
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BUS786-06-QM - 1 Quality Management Total Quality...

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