7- Quality Management Flashcards
What Part of Slack et al.’s 4D model of operations management does Quality Management Belong to?
Name all four D’s?
Quality is in a central role in developing operations, and it is also one of the five performance objectives.
Many organisations have separate functions devoted to quality, and many believe quality is the key factor that differentiates them from the competition.
Direct,
Design,
Deliver,
Develop
Different type of cost decreases from Higher Quality? x4
Improvements? x3
(Customer) Service Costs
Re-work and Scrap costs
Testing and inspection costs [EV may be higher to guarentee Q]
Complaint and Warrenty costs
Decrease in Inventory
Fall in Processing Time
Brand Image improves
Two common definitions of quality?
What is quality Ultimately ? [eval point]
Concise Def of quality?
Two common definitions of quality, i.e. conformance and specification
Quality is ultimately a subjective thing: however the customer perceives the quality of a product or service defines quality perspective for the operation as well
E.g. in a nightclub some customers may view queueing annoying while others may see it as delightful
Quality = consistent conformance to customer expectations
What is the Expectations-perceptions gap?
What creates good, bad and acceptable quality?
How can this be managed?
Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service
Expectations>Perception. E
GAP MODEL OF QUALITY
Gap1 is between?
EG?
Gap 2 is between?
eg?
Gap 3 is between?
eg?
Gap 4 is between?
eg?
1: Customer’s own specification of quality Organization’s specification of quality
Gap 1 EG: car may have a 10,000 mile service interval but customers expect 15,000 mile interval
2: Management’s concept of the product or service Organization’s specification of quality
e. g. car may be advertised as energy efficient, but the designer has added features that improve quality but decrease energy efficiency
3: Management’s concept of the product or service the actual product
operational factors make quality worse than specified or designed; e.g. car’s doors do not close properly due to faulty parts from unreliable suppliers
4: The actual product Customers Perceived Image of Product
false promises are made about actual quality delivery; there is a quality specification problem in the marketing department of the car manufacturer
5 Steps to take to close the conformance-specification gaps
Define quality characteristics [Functionality, appearance, reliability, durability,
recovery, human contact]
Decide how to measure the characteristics [Attributes= Yes/No, Variables = Cont. Scales]
Set Standards for each characteristic [Cost, time, laws and regulations, customers]
Quality Control against standards [All product checks or sampling?]
Find and correct causes
Make continuous Improvements
The airline is thinking about the characteristic ‘functionality’, and wants to inspect how often it has accidents. Is this an attribute or a variable?
Variable
The airline is thinking about the characteristic ‘appearance’, and wants to know the number of seats in its fleet that are not cleaned properly. Is this a variable or an attribute?
Variable
The airline is looking at the quality characteristic ‘reliability’, and wants to know whether it met the industry standards in terms of flights landed on time. Is this a variable or an attribute
Atrribute
What defines Quality standard ?
What Determines the standards for Quality? x3
Quality standard = level between acceptable and unacceptable
Standards are likely to be constrained by operational factors
Production cost or technical limits may not allow perfect quality, etc.
Laws and regulations may also set quality standards
Medicines, financial products, transportation services, etc.
Competitors and industry also set quality standards
If competitors have 90% service level, then it does not make sense to aim for higher service level unless it brings competitive advantage
EVALs of Quality Standards? x4
Is 0.1% defect rate an indication of good or bad quality? Statistical Process Control (SPC) is used to conduct production sampling during the process
False Positives and Negatives: Even if a 100% of the production output is tested for quality, the test may not detect problems perfectly
Type I and Type II errors indicate the error rate of testing
Often it is more practical to test a sample of the production for quality, rather than the whole production lot:
- It may be too costly to test everythingeg:Checking every light bulb for their lifetime would destroy the production lot
- Testing may interfere with the production process or pose a danger to the process Eg: Checking whether restaurant customers enjoy their meals every 30 sec would destroy their enjoyment
What does TQM stand for and define it?
Total Quality Management is ‘an effective system for integrating the quality development, quality maintenance and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow for full customer satisfaction’.
TQM is a philosophy that stresses “totality” and puts quality at the centre of all operations
Totality in TMQ? x6
Meeting all needs and expectations of the customers
Covering all parts of the organisation. E.g. Lboro use service-level agreements University management and facilities management to ensure standards are met
Including everyone - staff empowerment
Examining all costs eg: Costs of non-conformance & conformance costs
Developing systems and procedures that support quality and improvement
Improving continuously eg: Quality awards
X2 TYPES of Non-conformance costs? explain
x3 egs each?
External failure costs: product or service has been delivered to the customer and has to be fixed
EG: Rectifying problems on site, handling returns, processing complaints, paying compensation
Internal failure costs: not yet delivered, but fixing is done within the operation
Eg:Scrap, rework, damage to the plant and equipment
X2 TYPES of conformance costs? explain
x3 egs each?
Appraisal costs: controlling quality to see if problems have occurred
eg: Inspection and testing, surveying customer satisfaction
Prevention costs: controlling quality to prevent errors from occurring
eg: Training staff and suppliers, design and redesign of processes
