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Lecture 6 Managing Quality (Deming - Most influential but never defined…
Lecture 6
Managing Quality
Deming - Most influential but never defined quality
Major shift was to think about quality
Recuing variability in prod and design
High qual - high prod = high market share
Juran - Japanese quality revolution
Major shift was to plan quality
quality = fitness for use
mgt speaks in dollars - qm must be translated into dollars
trilogy - quality planning, control and improvement
Crosby - Absolutes of QM
Quality means confrmance - not elegance
No such thing s a quality problem
Doing things right first time is always cheaper
The only performance measure is cost of quality
Only performance standard is zero defect
Definign quality
(Garvin 1988)
Transcendent
Product based
user based
operations based
value based
Quality has two aspects:
External - meeting or exceeding customer expectations
Internal - process output matches design specifcations
Customer satisfaction:
Result of the customers overall assessment of the perceptions of the service compared with their expectations
Dissatisfaction can then be due to a gap in either:
Gap between Customer expectation and service
Gap between customer perception and service
Genesis of perception
Selective filtering - eg focus on food when hungry
Selective distortion - a bias towards a certain brand
Selective retention - recall biased t our beliefs
David Hockney "We see with memory, which is why none of us see the same thing, even when we are looking at the same thing"
Expectations
Continuum between ideal and tolerable
different questions produce different answers
Tolerance zone - not much variation of perception
Fuzzy expectations
Ops Management needs to manage customer expectations
Influenceing factors - such as price, alternatives, -
marketing, word of mouth, previous service, -
customers mood and confidence
Customer Confidence
Trust in an org
For orgs that are rarely used, eg fire service
Confidence influenced by:
-- Personal belief
-- Media
-- Word of mouth
-- Visibility of the org
-- Familiarity with the org and its employees
-- communication resulting in knowledge about the org
Managing expectations - occurs in the first phase of interaction
Managing perception - occurs in the last phase of the interaction
Peak end rule:
Push at least one perception above the zone of tolerance
One experience below the zone of tolerance can be compensated by several experiences above
Dissatisfaction or delight at one point in the process can change the width of the zone of tolerance - so an early dissatisfaction will cause a customer to raise their tolerance - and vice versa
Service Quality Factors
Hygience
Critical
Neutral
Enhancing
Measuring Quality
Cost of good quality
costs of poor quality
Traditional cost/quality trade off based on the assumption that last fault was the most costly
Zero defects quality management is based on the assumption that the last mistake was as costly as the first.
Measuring Service Quality
SERVQUAL:
Determine customer satisfaction
Measure customer attitudes
Identify quality dimensions, administer questionnaire to customers and measure results
Quest - completed any time
Performed by marketing
WALK THROUGH AUDIT:
Assess customer experience
Measure Customer perceptions
Flowchart of service process from customer perspective. Administer questionnaire to own customers, at a benchmark org and to staff. Analyse results
Quest completed during or after service
Performed by operations personnel
Gap Model
Useful for identifying gaps inprcess and service. This recognises that there are gaps which are opportunities for differences in customer and org
Customer expectations Vs Our perception of expectations
Our perception of targets Vs Operationalisation or Spec of targets
Specs in Manuals Vs Implementation of specs
Promise to customer Vs Customer perceptions
Actual Manufacturing Vs Customer expectations
ISO 9000: 2015
International Organisation for Standardisation
DIN ISO 9000
For trade with/in the EU and also adopted by the US and 100 other countries
Generic characteristics of management processes can be standardised and optimised
For all processes affecting quality
Based on auditing and continuous improvement
Good starting point for companies without QMS
7 Principles of ISO 9000:
Customer Focus
Leadership
Involvement of people
Process approach
Continual improvement
Factual approach to decsision making
Mutually beneficial supplier relationships
SIx Sigma
Find and eliminate causes of defects in processes
Focus on customer output - expected financial return
Zero defect aim
Defects per unit
Defect being any mistake or error that reaches the customer
Concepts
DPMO - defects per million opportunities = # of defects divided by the number of opportunities x 1,000,000
Expected ration is 3.4
Staff training to identify non-value add, cycle time and profitability
Projec teams
corporate sponsors, such as champions
highly qualified process improvement experts (green, black, master black belts)
Key measures
accuracy
cycle time
cost
customer satisfaction
DMAIC Methodology
Define - manager needs to identify customers and priorities, and characteristics that are vital to customer perspective - CTQ (Critical to quality)
Measure - identify measures and processes
analyse - understand likely causes of defects
improve - means to remove the defects
control - how to maintain the improvement
Kaizen
Small, gradual, frequent improvements are made, over long term with minimal cost. Everyone involved
All aspects of the org serve quality
Kaizen event - short event using all departmental resources to improve (in contrast to Kaizen process)
Poke a Yoke
Mistake proofing
automatic devices to avoid simple human errors
Taguchi
Design a process so it can be abused
make robust function under adverse conditions
focus on one target at a time and square costs in deviation from target - so costs are multiplied by themselves
TQM
Principles are:
Deming's 14 steps
Juran's 10 steps
Crosby's 14 steps
Oakland's 11 steps
Basics:
Customers define quality and their needs must be met
Quality is the responsibility of all employees
Continuous improvement
Unconditional Service Guarantee
Unconditional - no exceptions
easy to udnerstand and communicate - if-then relationships
meaningful - important in financial and service terms
easy to invoke
easy to collect
Cost of Quality Tool
Preventing poor quality from reaching the customer
(Planning - salaries, design etc)
(process control)
(IS)
(Training and General Mgt)
Appraisal of quality
tests and inspection
instrument maintenance
staff in process control
Internal falure - errrs found before reaching customer
External failure - returns etc
History
Definitions
Tools for improving quality