CEE111 - MGMT 189: Operations Management Class 9 Monday...

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MGMT 189: Operations Management Prof Shuya Yin Paul Merage School of Business UC Irvine, Winter 2012 Class 9 Monday February 6
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Discuss: § Quality Management (Chapter 9) Outline of Class 9
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§ Total Quality Management : Managing the entire organization so that it excels on all dimensions of products and services that are important to customers. Quality Management: Basic Concepts
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§ Design quality : Inherent value of the product in the marketplace - Dimensions include: Performance, Features, Reliability, Durability, Serviceability, Response, Aesthetics, and Reputation. - Good quality does not mean luxury. § Conformance quality : Degree to which the product or service design specifications are met. What Is Quality?
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Cost of Quality External Failure Costs Appraisal Costs Prevention Costs Internal Failure Costs Costs of Quality
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§ Early champions of quality management had differences in definition of quality, and on approach to quality management - Philip Crosby Cost of non-conformance is high, therefore “quality is free”. - James M. Juran There is an optimum level of quality, in keeping with customer needs. - W. Edwards Deming There is no optimum level of quality, continuous improvement is the key Quality Gurus: Crosby, Juran, Deming
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Continuous Improvement Methodology: PDCA Cycle (Deming Wheel) 1. Plan a change aimed at improvement. 1. P lan 2. Execute the change. 2. D o 3. Study the results; did it work? 3. C heck 4. Institutionalize the change or abandon or do it again. 4. A ct
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§ Specification Limits § Six-Sigma Quality § Statistical Control § ISO 9000 § Cause-Effect Diagram § …… Quality Management Tools
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Specification Limits § Specification limits define the limits of what the process needs to produce. § Processes always have some variation. § Process limits define the process capability, or the extent of the variation. Specification limits Process limits
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§ Seeks to reduce variation in the processes that lead to product defects § For normal distribution: - Mean  3 contains about 99.73% of the data values - Mean  6 SD contains about
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CEE111 - MGMT 189: Operations Management Class 9 Monday...

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