Managing Quality Flashcards by Harvie Morcilla

Managing quality supports…

differentiation
low cost
response strategies

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helps firms increase sales and reduce costs

quality

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Two Ways Quality Improves Profitability

Sales gain via…

Improved Response
Flexible pricing
improves reputation

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Two Ways Quality Improves Profitability

Reduced Cost via…

Increased Productivity
lower rework and scrap costs
Lower warranty costs

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Flow of activities…

Organizational Practices
Quality principles
Employee fulfillment
Customer satisfaction

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Organizational practice scopes in flow of activities

Leadership
Mission statement
effective operating procedures
staff support
training

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Yields what is important and what is to be accomplished

Organizational practices

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Quality principles scopes in flow of activities

Customer focus
Continuous Improvement
Bench-marking
Just-in-time
Tools of TQM

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Yields how to do what is important and to be accomplished

Quality Principles

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Employee Fulfillment scope in flow of activities

empowerment
organizational commitment

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yields employee attitudes that can accomplish what is important

Employee fulfillment

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Customer satisfaction scope in flow of activities

Winning orders
repeat customers

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yields an effective organization with a competitive advantage

Customer satisfaction

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objective is to build a total
quality management system that identifies and satisfies
customer needs

Operations manager

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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

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User based view of quality

better performance, more features

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Manufacturing based view of quality

conformance to standards,
making it right the first time

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Product based view of quality

specific and measurable attributes of the product

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Implications of quality

Company reputation
Product liability
Global implications

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Established in 1988 by the U.S. government
Designed to promote TQM practices

Malcolm Baldrige National Quality Award

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Malcolm Baldrige National Quality Award was established in the year ___ by the US government

1988

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Baldrige criteria categories …

-Leadership
-Strategic Planning
-Customer focus
-Measurement, Analysis, and Knowledge Management
-workforce focus
-Operations Focus

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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

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International recognition
Encourages quality management procedures, detailed documentation, work instructions, and record-keeping

ISO 9000 International Quality Standards

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2015 revision of ISO Standard gives greater emphasis to ..

risk-based thinking

ISO management principles

1. Top management leadership 2. Customer satisfaction 3. Continual improvement 4. Involvement of people 5. Process analysis 6. Use of data-driven decision making 7. A systems approach to management 8. 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

1. Build communication networks that include employees 2. Develop open, supportive supervisors 3. Move responsibility to employees 4. Build a high-morale organization 5. 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

1. Determine what to benchmark 2. Form a benchmark team 3. Identify benchmarking partners 4. Collect and analyze benchmarking information 5. 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

– 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