Managing Quality Flashcards
Managing quality supports…
differentiation
low cost
response strategies
helps firms increase sales and reduce costs
quality
Two Ways Quality Improves Profitability
Sales gain via…
Improved Response
Flexible pricing
improves reputation
Two Ways Quality Improves Profitability
Reduced Cost via…
Increased Productivity
lower rework and scrap costs
Lower warranty costs
Flow of activities…
Organizational Practices
Quality principles
Employee fulfillment
Customer satisfaction
Organizational practice scopes in flow of activities
Leadership
Mission statement
effective operating procedures
staff support
training
Yields what is important and what is to be accomplished
Organizational practices
Quality principles scopes in flow of activities
Customer focus
Continuous Improvement
Bench-marking
Just-in-time
Tools of TQM
Yields how to do what is important and to be accomplished
Quality Principles
Employee Fulfillment scope in flow of activities
empowerment
organizational commitment
yields employee attitudes that can accomplish what is important
Employee fulfillment
Customer satisfaction scope in flow of activities
Winning orders
repeat customers
yields an effective organization with a competitive advantage
Customer satisfaction
objective is to build a total
quality management system that identifies and satisfies
customer needs
Operations manager
The totality of features and characteristics of a product or
service that bears on its ability to satisfy stated or implied
needs
and who quoted this definition
Quality
American Society for Quality
User based view of quality
better performance, more features
Manufacturing based view of quality
conformance to standards,
making it right the first time
Product based view of quality
specific and measurable attributes of the product
Implications of quality
Company reputation
Product liability
Global implications
- Established in 1988 by the U.S. government
- Designed to promote TQM practices
Malcolm Baldrige National Quality Award
Malcolm Baldrige National Quality Award was established in the year ___ by the US government
1988
Baldrige criteria categories …
-Leadership
-Strategic Planning
-Customer focus
-Measurement, Analysis, and Knowledge Management
-workforce focus
-Operations Focus
Points for every category..
-Leadership
-Strategic Planning
-Customer focus
-Measurement, Analysis, and Knowledge Management
-workforce focus
-Operations Focus
120
85
85
90
85
85
Total 450
- International recognition
- Encourages quality management procedures, detailed documentation, work instructions, and record-keeping
ISO 9000 International Quality Standards
2015 revision of ISO Standard gives greater emphasis to ..
risk-based thinking
ISO management principles
- Top management leadership
- Customer satisfaction
- Continual improvement
- Involvement of people
- Process analysis
- Use of data-driven decision making
- A systems approach to management
- Mutually beneficial supplier relationships
Types of costs of quality
Prevention cost
Appraisal Cost
Internal failure cost
external failure cost
cost of reducing the potential for defects
prevention cost
cost of evaluating products, parts, and services
Appraisal costs
cost of producing defective parts or service before delivery
Internal Failure Costs
cost of defects discovered after delivery
External Failure cost
A Japanese character that
symbolizes a broader
dimension than quality, a
deeper process than
education, and a more
perfect method than
persistence
Takumi
He insisted management accept responsibility for building good systems. The employee cannot produce products that on average exceed the quality of what the process is capable of producing.
W. Edwards Deming
A pioneer in teaching the Japanese how to improve
quality
Joseph M. Juran
believed strongly in top-management
commitment, support, and involvement in the quality
effort. He was also a believer in teams that continually
seek to raise quality standards.
Joseph M. Juran
His 1961 book Total Quality Control laid out 40 steps
to quality improvement processes.
Armand Feigenbaum
He viewed quality
not as a set of tools but as a total field that integrated
the processes of a company.
Armand Feigenbaum
His work in how people
learn from each other’s successes led to the field of
cross-functional teamwork.
Armand Feigenbaum
He said that quality is free
Philip B. Crosby
He believed that in the
traditional trade-off between the cost of improving
quality and the cost of poor quality, the cost of poor
quality is understated.
Philip B. Crosby
He said that the cost of poor quality should
include all of the things that are involved in not doing
the job right the first time.
Philip B. Crosby
He coined the term
zero defects and stated, “There is absolutely no
reason for having errors or defects in any product or
service.”
Philip B. Crosby
Encompasses entire organization from supplier to customer
Total Quality Management
Stresses a commitment by management to have a
continuing companywide drive toward excellence in all
aspects of products and services that are important to the
customer
Total Quality Management
Demings 14 points…
Sauluhe
Seven concepts of TQM
1) Continuous improvement
2) Six Sigma
3) Employee empowerment
4) Benchmarking
5) Just-in-time (JIT)
6) Taguchi concepts
7) Knowledge of TQM tools
- Never-ending process
- Covers people, equipment, suppliers, materials,
procedures - Every operation can be improved
Continuous Improvement
Shewharts Cycle
Plan
Do
Check
Act
describes the ongoing process of unending improvement
Kaizen
Two meanings
– Statistical definition of a process that is 99.9997%
capable, 3.4 defects per million opportunities (DPMO)
– A program designed to reduce defects, lower costs,
save time, and improve customer satisfaction
Six Sigma
- A comprehensive system for achieving and sustaining
business success
Six Sigma
% capable of six sigma
how many DPMO
99.9997%
3.4 defects per million opportunities
Developed 6sigma
Motorola
Adopted and enhanced 6sigma
Honeywell and GE
Highly structured approach
to process improvement
6sigma
DMAIC approach
Define
Measure
Analyze
Improve
Control
Standard metric of 6sigma
DPMO
Getting employees involved in product and process
improvements
Employee Empowerment
techniques for employee empowerment
- Build communication networks
that include employees - Develop open, supportive
supervisors - Move responsibility to
employees - Build a high-morale
organization - Create formal team structures
Group of employees who meet regularly to solve problems
Often led by a facilitator
Quality Circles
Selecting best practices to use as a standard for performance
Benchmarking
Steps in Benchmarking
- Determine what to benchmark
- Form a benchmark team
- Identify benchmarking partners
- Collect and analyze benchmarking information
- Take action to match or exceed the benchmark
Best Practices for Resolving
Customer Complaints
-Make it easy for clients to complain
-Respond quickly to complaints
-Resolve complaints on first contact
-Use computers to manage complaints
-Recruit the best for customer service jobs
- When the organization is large enough
- Data more accessible
- Can and should be established in a variety of areas
Internal Benchmarking
‘Pull’ system of production scheduling including supply
management
– Production only when signaled
Just-in-Time (JIT)
Allows reduced inventory levels
– Inventory costs money and hides process and material
problems
Just-in-Time (JIT)
- Engineering and experimental design methods to improve
product and process design
– Identify key component and process variables
affecting product variation
Taguchi Concepts
Taguchi Concepts
– Quality robustness
– Target-oriented quality
– Quality loss function
- Ability to produce products uniformly in adverse
manufacturing and environmental conditions
– Remove the effects of adverse conditions
– Small variations in materials and process do not
destroy product quality
Quality Robustness
Shows that costs increase
as the product moves away
from what the customer
wants
Quality Loss Function
Tools for generating ideas
– Check Sheet
– Scatter Diagram
– Cause-and-Effect Diagram
Tools to Organize the Data
– Pareto Chart
– Flowchart (Process Diagram)
Tools for Identifying Problems
– Histogram
– Statistical Process Control Chart
An organized method of recording data
Check Sheet
A graph of the value of one variable vs. another variable
Scatter Diagram
A tool that identifies process
elements (causes) that may effect an outcome
Cause-and-Effect Diagram
A graph to identify and plot problems or
defects in descending order of frequency
Pareto Chart
A chart that describes the
steps in a process
Flowchart (Process Diagram)
A distribution showing the frequency of
occurrences of a variable
Histogram
A chart with time on
the horizontal axis to plot values of a statistic
Statistical Process Control Chart
- Uses statistics and control charts to tell when to take
corrective action - Drives process improvement
Statistical Process Control (SPC)
4 key steps in SPC
– Measure the process
– When a change is indicated, find the assignable cause
– Eliminate or incorporate the cause
– Restart the revised process
Involves examining items to see if an item is good or
defective
Inspection
Problems with inspection
– Worker fatigue
– Measurement error
– Process variability
Other term for source Inspection
source control
Ensure perfect product to
your customer
source inspection
is the concept of
foolproof devices or techniques
designed to pass only
acceptable products
poka-yoke
ensure consistency
and completeness
Checklist
– Items are either good or bad, acceptable or
unacceptable
– Does not address degree of failure
Attributes
- Measures dimensions such as weight, speed, height,
or strength
– Falls within an acceptable range
Variables
Determinants of Service Quality
-Reliability
-Responsiveness
-Competence
-Access
-Courtesy
-Communication
-Credibility
-Security
-Understanding/Knowing the customer
-Tangibles
involves consistency of performance and dependability
Reliability
concerns the willingness or readiness of employees to provide service
Responsiveness
means possession of the required skills and knowledge to perform the service
Competence
involves approachability and ease of contact
Access
involves politeness, respect, consideration, and friendliness
Courtesy
means keeping customers informed and listening to them
Communication
involves trustworthiness, believability, and honesty
credibility
is the freedom from danger, risk, or doubt
security
involves making the effort to understand the customer’s needs
Understanding/knowing the customer
include the physical evidence of the service
Tangibles
Service Recovery Strategy
Marriott’s LEARN routine
LEARN means…
– Listen
– Empathize
– Apologize
– React
– Notify
Direct comparisons between customer service
expectations and actual service provided
* Focuses on gaps in the 10 service quality determinants
SERVQUAL technique
Most common version collapses the determinants to
– Reliability
– Assurances
– Tangibles
– Empathy
– Responsiveness
