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Chapter 5 Managing Quality (Total Quality Management (Employee Empowerment…
Chapter 5 Managing Quality
Quality and Strategy
Definition
Managing quality supports differentiation , low cost, and response strategies
Quality helps firms increase sales and reduce cost
Building a quality organization is a demanding task
ISO 9000 International Quality Standard
International recognition
Encourages quality management procedures, detailed documentation, and record keeping
Management principles
Top management leadership
Customer satisfaction
Continual improvement
Improvement of people
Process analysis
Cost of Quality
Prevention costs
Appraisal costs
Internal failure costs
External failure costs
TQM Tools
Tools for generating idea
Check sheet
Scatter diagram
Cause-and-Effect diagram
Tools to Organize the Data
Poreto chart
Flowchart (Process diagram)
Tools for Identifying Problems
Histogram
Statiscal Process Control Chart
Total Quality Management
Continuous Improvement
Covers people, equipment, suppliers, materials, procedures
Shewhart's PDCA model
Kaizen describes the ongoing process of unending improvement
TQM and zero defects also used to describe continuous improvement
Six Sigma
A comprehensive system for achieving and sustaining business success
Defines the project's purpose, scope and outputs, then identifies the required process information keeping in mind the customer's definition of quality
Measures the process and collects data
Analyzes the data ensuring repeatability and reproducibility
Improves by modifying or redesigning existing processes and procedures
Controls the new process to make sure performance levels are maintained
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
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
Just-in-Time (JIT)
'Pull' system of production scheduling including supply management
Allows reduced inventory levels
Encourages improved process and product quality
The Role of Inspection
Source Inspection
Poka-yoke
Checklists
Issues
When to inspect
Where in process to inspect
Problems
Worker fatigue
Measurement error
Process variability
TQM in Service
The operations manager must recognize
The service is judged against the customer's expectations
The tangible component of services is important
The service process is important
Exceptions will occur
Service quality perceptions depend on
Intangible differences between products
Intangible expectations customers have of those products
Service quality is more difficult to measure than the quality of goods
Defining Quality
Implications of Quality
Global Implications
Supplier relations
Perception of new products
Employment practices
Product liability
Reduce risk
Company reputation
Improved ability to compete
An operations manager's objective is to build a total quality management system that identifies and satisfies customer needs
Different views
User based
Manufacturing based
Product based