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Chapter 5: Managing Quality, 6) The Role of Inspection, NUR ARISSA BINTI…
Chapter 5: Managing Quality
1) Provides a Competitive Advantage
Arnold Palmer Hospital
Delivers over 12,000 babies annually
Virtually every type of quality tool is employed
Benchmarking
Just-in-time
Employee empowerment
Quality tools
Continuous improvement
2) Quality and Strategy
Quality helps firms increase sales and reduce costs
Building a quality organization is a demanding task
Managing quality supports differentiation, low cost, and response strategies
Two Ways Quality Improves Profitability
Sales Gains via
Flexible pricing
Improved reputation
Improved response
Reduced Costs via
Lower rework and scrap costs
Lower warranty costs
Increased productivity
The Flow of Activities
3) Employee Fulfillment
Yields: Employee attitudes that can accomplish what is important
Organizational commitment
Empowerment
4) Customer Satisfaction
Yields: An effective organization with a competitive advantage
Winning orders
Repeat customers
2) Quality Principles
Yields: How to do what is important and to be accomplished
Just-in-time
Tools of TQM
Benchmarking
Continuous improvement
Customer focus
1) Organizational Practices
Yields: What is important and what is to be accomplished
Training
Staff support
Effective operating procedures
Mission statement
Leadership
3) Defining 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
Manufacturing based: conformance to standards, making it right the first time
Product based: specific and measurable attributes of the product
User based: better performance, more features
Implications of Quality
Product liability
Reduce risk
Global implications
Improved ability to compete
Company reputation
Perception of new products
Employment practices
Supplier relations
Malcolm Baldrige National Quality Award
Established in 1988 by the U.S. government
Designed to promote TQM practices
Recent winners include
Charter School of San Diego
Mid-America Transplant Services
MidwayUSA
Hill Country Memorial
PricewaterhouseCoopers Public Sector Practice
Elevations Credit Union
MESA Products Inc
Lockheed Martin Missiles and Fire Control
Baldrige Criteria
Leadership
Strategic Planning
Customer Focus
Operations Focus
Results
Measurement, Analysis, and Knowledge Management
Workforce Focus
ISO 9000 International Quality Standards
International recognition
Encourages quality management procedures, detailed documentation, work instructions, and recordkeeping
2015 revision gives greater emphasis to risk-based thinking
Over one million certifications in 206 countries
Critical for global business
Management principles
Customer satisfaction
Continual improvement
Top management leadership
Involvement of people
Process analysis
Costs of Quality
External failure costs
defects discovered after delivery
Internal failure costs
producing defective parts or service before delivery
Appraisal costs
evaluating products, parts, and services
Prevention costs
reducing the potential for defects
Takumi
A Japanese character that symbolizes a broader dimension than quality, a deeper process than education, and a more perfect method than persistence
Leaders in Quality
W. Edwards Deming
Joseph M. Juran
Philip B. Crosby
Armand Feigenbaum
Ethics and Quality Management
Operations managers must deliver healthy, safe, quality products and services
Poor quality risks injuries, lawsuits, recalls, and regulation
Ethical conduct must dictate response to problems
All stakeholders must be considered
5) Tools of TQM
Tools for Generating Ideas
Scatter Diagram
Cause-and-Effect Diagram
Check Sheet
Tools to Organize the Data
Pareto Chart
Flowchart (Process Diagram)
Tools for Identifying Problems
Histogram
Statistical Process Control Chart
Seven Tools of TQM
Statistical Process Control (SPC)
7) TQM in Services
Service quality is more difficult to measure than the quality of goods
Service quality perceptions depend on
Intangible differences between products
Intangible expectations customers have of those products
Service Quality
The operations manager must recognize:
Exceptions will occur
The service is judged against the customer’s expectations
The service process is important
The tangible component of services is important
Service Specifications
Determinants of Service Quality
Competence
Access
Responsiveness
Courtesy
Reliability
Service Recovery Strategy
Managers should have a plan for when services fail
Marriott's LEARN routine
Empathize
Apologize
React
Notify
Listen
4) Total Quality Management
Encompasses entire organization from supplier to customer
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
Deming's Fourteen Points
Seven Concepts of TQM
Continuous improvement
Never-ending process of continuous improvement
Six Sigma
A comprehensive system for achieving and sustaining business success
Knowledge of TQM tools
Employee empowerment
Getting employees involved in product and process improvements
Techniques
Benchmarking
Internal Benchmarking
Can and should be established in a variety of areas
Data more accessible
When the organization is large enough
Just-in-time (JIT)
'Pull' system of production scheduling including supply management
Relationship to quality:
JIT cuts the cost of quality
JIT improves quality
Taguchi concepts
Engineering and experimental design methods to improve product and process design
Taguchi Concepts
Target-oriented quality
Quality loss function
Quality robustness
6) The Role of 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
Service Industry Inspection
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
Many problems
Cannot inspect quality into a product
Robust design, empowered employees, and sound processes are better solutions
Source Inspection
Also known as source control
The next step in the process is your customer
Checklists
ensure consistency and completeness
Poka-yoke
concept of foolproof devices or techniques designed to pass only acceptable products
Ensure perfect product to your customer
NUR ARISSA BINTI MOHAMAD 2019416444 KBA2462A