MANAGING QUALITY PROVIDES A COMPETITIVE ADVANTAGE
- Managing quality supports differentiation, low costs, and response strategies.
- Quality helps firms increase sales and reduce costs.
- Building a quantity organization is a demanding task.
TWO WAYS QUALITY IMPROVES PROFITABILITY
1) Sales Gains Via
- Improved response
- Flexible pricing
- Improve reputation.
2) Reduces costs via
- Increased productivity
- Lower rework & Scrap costs
- Lower warranty costs.
Increased Profits.
Improved Quality
The Flow of Activities.
i) Organisational Practices.
- Leadership, mission statement, effective operating procedures, staff support, training.
- Yields: What is important & What is to be accomplished.
ii) Quality Principles.
- Customer focus, continuous improvement, Benchmarking, just in time, tools of TQM.
- Yields: How to do, what is important & to be accomplished.
iii) Employee fulfillment.
- Empowerment, organizational commitment.
- Yields: Employees attitudes that can accomplish what is important.
iv) Customer Satisfaction.
- Winning orders, repeat customers.
- Yields: An effective organization with a competitive advantages.
Define Quality.
- An operating manager's objective is to build a total quality.
Different Views.
- Manufacturing based: conformance to standards, making it right the first time.
- User based: Better performance, more features.
- Product based: specific and measurable attributes of the product.
IMPLICATIONS OF QUALITY
2) Product liability.
- Reduce risk.
1) Company reputation.
- Perception of new products.
- Employment practices.
- Supplier relations.
3) Global implications.
- Improve ability to compete.
ISO 9000 INTERNATIONAL QUALITY STANDARDS
- 2015 revision give best greater emphasis to risk based thinking.
- International recognition.
- Critical for global business.
- Encourages quality management procedures, detailed documentation, work instructions, and record keeping.
- Over 1 million certifications in 206 countries.
ISO 9000 INTERNATIONAL QUALITY STANDARDS
- Management principles:
i) Top management leadership
ii) Customer satisfaction.
iii) Continual improvement.
iv) Involvement of people.
v) Process analysis.
vi) Use of data- driven decision making.
vii) A systems approach to management.
viii) Mutually beneficial supplier relationship.
COSTS OF QUALITY
- Appraisal costs- evaluating products, parts, and services.
- Prevention costs- reducing the potential for detects.
- External failure costs- defects discovered after delivery.
- Internal failure costs- producing defective parts or service before delivery.
Total Quality Management (TQM)
- Encompasses entire organization from supplier to customer.
- Stresses a commitment by management to have a continuing company wide drive toward excellence in all aspects of products and services that are important to the customer.
- Seven Concepts of TQM
5) Just-in-time (JIT)
6) Taguchi concepts
4) Benchmarking
7) Knowledge of TQM tools.
3) Employee empowerment
2) Six sigma.
- A program designed to reduces defects, lower costs, save time, and improve customer satisfaction.
- A comprehensive system for achieving and sustaining business success.
1) Continuous improvement.
- Never-ending process of continuous improvement.
- Covers people, equipment, supplier, materials and procedures.
- Every operation can be improved.
- Kaizen describes the ongoing process of unending improvement.
- TQM and zero defects also used to describe continuous improvement.
1) Defines- the project's purpose, scope and outputs and then identified the required process information keeping in mind the customer's definition of quality.
2) Measures- the process and collects data.
3) Analyzes- the data ensuring repeatability and reproducibility.
4) Improves- by modifying or redesigning existing processes and procedures.
5) Controls- the new process to make sure performance levels are maintained.
- Getting employees involved in products and process improvement.
- Techniques:
1) Build communication networks that include employees
2) Develop open, supportive supervisors
3) Move responsibility to employees.
4) Build a high morale organisation.
5) Create a formal team structures.
- Selecting best practices to use as a standard performance:
1) Determine what to benchmark
2) Form a benchmark team
3) Identify benchmarking partners
4) Collect and analyze benchmarking information
5) Take action to match or exceed the benchmark.
- Internal Benchmarking
i) When the organization is large enough.
ii) Data is more accessible
iii) Can and should be established in a variety of areas.
- 'Pull' system of production scheduling including supply management.
- production is only when signaled.
- allows reduces inventory levels
- inventory costs money and hides processes and material problems.
-encourages improved process and product quality.
- Relationship to quality:
- JIT cuts the cost of quality.
- JIT improves quality.
- better quality means less inventory and better, easier- to employ JIT system.
- Engineering and experimental design method to improve product and process design.
- Identify key component and process variables affecting product variation.
- Taguchi concepts:
i) quality robustness
ii) target-oriented quality
iii) quality loss function.
- Tools to identify problems:
1) Histogram
2) Statistical process control chart.
- Seven tools of TQM:
1) Check sheet.
2) Scatter diagram
3) Cause and effect diagram
4) Pareto chart
5) Flowchart ( Process Diagram)
6) Histogram
7) Statistical process control chart.
INSPECTION
- Detect a defective product:
-does not correct deficiencies in process or product.
-it is expensive
- Involves examining items to see if an item is good or defective.
- Issues:
-when to inspect
-where in process to inspect
- Attributes Vs Variables
- Many problems
- Cannot inspect quality into product.
- Robust design, empowered employees, and sound processes are better solutions.
- Sources inspection
- Also known as source control
- 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 completeness.
- Use different statistical techniques.
- Variables:
-measures dimensions such as weight, speed, height, or strength.
-falls within an acceptable range.
- Attributes:
-items are either good or bad, acceptable or unacceptable.
does not address degree of failure
TQM in services
- Service quality is more difficult to measure than the quality of goods.
- Services quality perceptions depend on:
1) Intangible differences between products.
2) Intangible expectations consumers have of those products.
SERVICE QUALITY
- The operations manager must recognize:
i) the tangible component of service is important.
ii) the service process is important.
iii) the service is judged against the customer's expectations.
iv) exceptions will occur.
- Service Recovery Strategy
- Manager should have a plan for when services fail.
- Marriott's learn routine:
1) Listen
2) Empathize
3) Apologize
4) React
5) Notify
NURUL SYUHADA BT ZULKIFLEE
2019416606
KBA2462A