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Managing Quality - Coggle Diagram
Managing Quality
Quality and Strategy
► Managing quality supports differentiation, low cost, and response strategies
► Quality helps firms increase sales and reduce costs
► Building a quality organization is a demanding task
Two Ways Quality Improves Profitability:
1) Sales Gains via
• Improved response
• Flexible pricing
• Improved reputation
2) Reduced Costs via
• Increased productivity
• Lower rework and scrap costs
• Lower warranty costs
The Flow of Activities:
Organizational Practices > Quality Principles > Employee Fulfillment > Customer Satisfaction
Quality
- An operations manager’s objective is to build a total quality management system that identifies and satisfies customer needs
- The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
Different Views
► User based: better performance, more features ► Manufacturing based: conformance to standards, making it right the first time
► Product based: specific and measurable attributes of the product
Implications of Quality
- Company reputation
► Perception of new products
► Employment practices
► Supplier relations
- Product liability
► Reduce risk
- Global implications
► Improved ability to compete
Costs of Quality
► Prevention costs - reducing the potential for defects
► Appraisal costs - evaluating products, parts, and services
► Internal failure costs - producing defective parts or service before delivery
► External failure costs - defects discovered after delivery
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
1) Continuous improvement
► Never-ending process of continuous improvement
► Covers people, equipment, suppliers, materials, procedures
► Every operation can be improved
3) Employee empowerment
► Getting employees involved in product and process improvements
► 85% of quality problems are due to materials and process
► Techniques:
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
4) Benchmarking Selecting best practices to use as a standard for performance
- Determine what to benchmark
- Form a benchmark team
- Identify benchmarking partners
- Collect and analyze benchmarking information
- Take action to match or exceed the benchmark
5) Just-in-time (JIT)
► 'Pull' system of production scheduling including supply management
► Production only when signaled
► Allows reduced inventory levels
► Inventory costs money and hides process and material problems
► Encourages improved process and product quality
6)Taguchi Concepts
► Engineering and experimental design methods to improve product and process design
► Identify key component and process variables affecting product variation
► Taguchi Concepts:
1) Quality robustness
2) Target-oriented quality
3) Quality loss function
7) Knowledge on TQM Tools
► Tools for Generating Ideas
(a)Check Sheet: An organized method of recording data
(b)Scatter Diagram: A graph of the value of one variable vs. another variable
(c)Cause-and-Effect Diagram: A tool that identifies process elements (causes) that may effect an outcome
► Tools to Organize the Data
(d)Pareto Chart: A graph to identify and plot problems or defects in descending order of frequency
(e)Flowchart (Process Diagram): A chart that describes the steps in a process
►Tools for Identifying Problems
(f) Histogram: A distribution showing the frequency of occurrences of a variable
(g)Statistical Process Control Chart: A chart with time on the horizontal axis to plot values of a statistic
2) Six Sigma
- Controls the new process to make sure performance levels are maintained
- Improves by modifying or redesigning existing processes and procedures
- Analyzes the data ensuring repeatability and reproducibility
- Measures the process and collects data
- Defines the project’s purpose, scope, and outputs, then identifies the required process information keeping in mind the customer’s definition of quality
Inspection ► Involves examining items to see if an item is good or defective ► Detect a defective product
- Does not correct deficiencies in process or product
- It is expensive
► Issues
- When to inspect
- Where in process to inspect
Source Inspection
► Also known as source control
► The next step in the process is your customer
► Ensure perfect product to your customer
► Poka-yoke is the concept of foolproof devices or techniques designed to pass only acceptable products
► Checklists ensure consistency and completenes
TQM In Services
► Service quality is more difficult to measure than the quality of goods
► Service quality perceptions depend on
1) Intangible differences between products
2) Intangible expectations customers have of those products
Attributes Versus Variables ► Attributes
- Items are either good or bad, acceptable or unacceptable
- Does not address degree of failure
► Variables
- Measures dimensions such as weight, speed, height, or strength
- Falls within an acceptable range
- Use different statistical techniques
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Determinants of Service Quality:
- Reliability
- Responsiveness
- Competence
- Access involves approachability and ease of contact - Courtesy
- Communication
- Credibility
- Security
- Understanding/knowing the customer
- Tangibles
Service Recovery Strategy► Managers should have a plan for when services fail
► Marriott's LEARN routine
- Listen
- Empathize
- Apologize
- React
- Notify