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Chapter 5: Managing Quality, Siti Nur Athirah binti Mohd Kamal 2019831738…
Chapter 5: Managing Quality
Provides a Competitive Advantage
Arnold Palmer Hospital delivers over 12,000 babies annually
Arnold Palmer Hospital virtually every type of quality tool is employed
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
The Flow of Activities
Organizational Practices
Quality Principles
Employee Fulfillment
Customer Satisfaction
Quality is an operations manager's objective is to build a total quality management system that identifies and satisfies customer needs
Implication of Quality
Company reputation
Perception of new products
Employment practices
Supplier relations
Product liability
Reduce risk
Global implications
Improved ability to compete
ISO 9000 International Quality Standards
Management principles
Top management leadership
Customer satisfaction
Continual improvement
Involvement of people
Process analysis
Use of data-driven decision making
A systems approach to management
Mutually beneficial supplier relationships
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
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
Total Quality Management
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
Deming's Fourteen Points
Seven Concepts of TQM
Continuous improvement - Never-ending process of continuous improvement
Six sigma
Defines
Measures
Analyzes
Improves
Controls
Employee empowerment - Getting employees involved in product and process improvements
Benchmarking - Selecting best practices to use as a standard performance
Just-in-time (JIT) - Encourages improved process and product quality
Taguchi concepts - Engineering and experimental design methods to improve product and process design
Knowledge of TQM tools
Quality Robustness
Quality Loss Function
TQM
TQM Tools
Tools for Generating Ideas
Check Sheet - An organized method of recording data
Scatter Diagram - A graph of the value of one variable vs another variable
Cause-and-Effect Diagram - A tool that identifies process elements (causes) that may effect an outcome
Tools to Organize the Data
Pareto Chart - A graph to identify and plot problems or defects in descending order or frequency
Flowchart (Process Diagram) - A chart that describes the steps in a process
Tools for Identifying Problems
Histogram - A distribution showing the frequency of occurrences of a variable
Statistical Process Control Chart - A chart with time on the horizontal axis to plot values of a statistic
Statistical Process Control (SPC)
Uses statistics and control charts to tell when to take corrective action
Drives process improvement
Four key steps
Measure the process
When a change is indicated, find the assignable cause
Eliminate or incorporate the cause
Restart the revised process
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:
The tangible component of services is important
The service process is important
The service is judged against the customer's expectations
Expectations will occur
Inspection
Involves examining items to see if an items 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
Many problems
Worker fatigue
Measurement error
Process variability
Cannot inspect quality into a product
Robust design, empowered employees, and sound processes are better solutions
Siti Nur Athirah binti Mohd Kamal
2019831738
KBA2462A