Quality Management Flashcards
Why do we care about quality? Best Case scenario
higher transformation costs (rework, scrap, etc)
best case is people still wanna buy from you, but you will have costs of scrap and the costs of fixing the products!! this will also be higher warranty costs
What is the worst case scenario of poor quality>
there are lawsuits
what are the range of things than can happen in poor quality?
- hihger transformation costs (rework, scrap, etc);
- higher warranty costs (Returns, reparis, etc);
- loss of sales (short term);
- loss of reputation (long term)
- lawsuits
Best case scenario: no profit
Worst case scenario: bankruptcy
Best case scenario: no profit
Worst case scenario: bankruptcy
what are the three parts to quality management
1) alarm bell
2) investigate
3) prevent
this is howyou get better at quality management
alarm bell, investigate, prevent, which is most quantitative
alarm bell
how can quality be very costly (as high as 25% of rev and 40% operating expenses) but also be free?
money is spent upfront will prevent problems in the future!! this will have positive benefit
what are two types of quality costs?
1) control costs (proactive)
-prevention costs: failsafing, traningin
-appraisal costs: insprection labour + equipment
2) failure costs (reactive)
-internal failure costs: rework, downtime, scrap
-external failure costs: returns, warranty lawsuits. reputation
how do accounitng systems miss quality costs-
-where does proactively spent money go?
-where does appraisal expense go
-where does INTERNAL reactive costs go?
-where does EXTERNAL reactive cossts go?
=HR expenses (training etc)
=asset expense (for goods that are tested) and also HR cuz of the inspector pay
=internal failure costs are measured in downtime (time the machines arent functional) this IS NOT RECORDED BY BOOKS
=cost of lost customers are never recorded
How do you show the total quality costs curve?
line going from the left to right increasing curve= failure costs
line going from right to left decreasing curve= control costs
sum them up= total quality costs curve
How to analyze the total quality costs curve?
draw a horizontal line from the y axis and look at it!
company A (on red curve) is spending this much on failure costs
company B (on green curve) is spending this much on control costs
THE SAME AMOUNT OF MONEY IS BEING SPENT! WHAT IS DIFFERENT IS THE MIX OF WHERE THE MONEY IS GOING
is it better to be on the green curve for control or red curve for failure
green curve !
can companies with higher fialuer costs become like companies with higher control costs?
yes! short term expenses will be incurred but long run it is better to have hgiher quality control costs and less failure cosst
tradiitonal view of quality control
-hire an inspector for appraisal
this will make quality go up, but also costs are increased cuz of the paying of inspector
Demings view of quality control
prevention!!!
when you idiot proof something or use a checklist, the quality will go up
but costs go down!!! not paying someone extra to inspect
why is demings view better than the trad view of quality control?
because qualtiy goes up but costs go down
honda 5 preventative measures
1) During assembly take the doors off the cars; they paint the car with the doors on and they then take it off to go through the assembly phase, then afterrr they put it back on
2) Put a white plastic film on the car for shipping protection, and they put this on the paint department, so in assembly you don’t get any chips and scratches on the machine
3) Improve the material that is used for the cars so there is no deformation of the car during manufacturing, cuz if employees are leaning against the car it doesn’t have deformation
4) Giving ring and watch guards to the employees so their personal jewelry doesn’t scratch the car! Very low cost
5) Magnetic “Label” template for location and leveling of the civic logo, this is a very cheap piece of plastic in an L shape that is used to align the logo properly
A380
->Technicians test the toilet by stuffing things down the toilet and seeing if it will jam
->IF THE TOILETS JAM ON THE FLIGHT, PEOPLE WILL REMEMBER FOR YEARS!!!
-> So tecnicians devised plumbing capable of handling such insane things, cuz it only takes one person to flush glasses, spoons, towels
Gas Stations: delivery company mixed up gas and diesel
-> they are using IDIOT PPROOFING TO PREVENT THE MISTAKES!
what is failsafing
creating a control condition wehre the customer or employee can NOT make a mistake
airplane bathroom door failsafe
bathroom light only turns on when door is locked
recycling bins fill too quickly failsafe
only small slot for contrainers
employee accidentally copying and pasting a wrong cell in excel
lock certain cells
saw stop system fail safe
stops the saw as soon as human skin is detected
cold war failsafe
had two keys that needed to work, and one key said war and peace
Slide Notes:
1) the syringe breaks after it is used for the first time, this prevents it being used again Syrringes are often reused and the cross contamination can infect a lot of other people
2) Therefore these self destructing syrrings are so very important so there is no cross contaimination
-Children can become HIV positive because unskilled practitioners re-use
-people are recycling and re-using syringes and these should not be re-used
-New syringes, these are 5 cents and they are the same price as regular syringes, but after one use they break!
Slide Notes:
1) the syringe breaks after it is used for the first time, this prevents it being used again Syrringes are often reused and the cross contamination can infect a lot of other people
2) Therefore these self destructing syrrings are so very important so there is no cross contaimination
-Children can become HIV positive because unskilled practitioners re-use
-people are recycling and re-using syringes and these should not be re-used
-New syringes, these are 5 cents and they are the same price as regular syringes, but after one use they break!
failsafe: syringes
5 cents self destrcucting syringes!
failsafe: stork craft crib recall
you could buikld this crib in a way that babies could slide and suffocate, these were recaleled
failsafe should have been ou shouldnt be able to construct the cirb wrong way at all
Slide Notes:
IDIOT PROOFED
1) The address is on the letter inside the envelope, the window solves the problem. There are not specific envelopes that you need to use
->This saves labour too! Because now you don’t have to worry about matching envelopes
2) The money doesn’t come until the card has been taken out
Cant put money in either until the card withdrawn
3) There is now a bar that hangs down, this is the “clearance bar”, if you hit this you will hit that
4) Speed bumps that forces car to slow down
5) If one drawer is opened than the other one will not open
Slide Notes:
IDIOT PROOFED
1) The address is on the letter inside the envelope, the window solves the problem. There are not specific envelopes that you need to use
->This saves labour too! Because now you don’t have to worry about matching envelopes
2) The money doesn’t come until the card has been taken out
Cant put money in either until the card withdrawn
3) There is now a bar that hangs down, this is the “clearance bar”, if you hit this you will hit that
4) Speed bumps that forces car to slow down
5) If one drawer is opened than the other one will not open
two methods of prevention (quality management)
failsafe
checklist
pros of checklists
1) effective and effiecint
2) showcase the past lessons learned
3) share best practices
4) improve things
