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Chapter 5 : Managing Quality - Coggle Diagram
Chapter 5 : Managing Quality
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
Implication of Quality
Company reputation
Perception of new products
Employment practices
Supplier relations
Global implications
Improves ability to compete
Product liability
Reduce risk
Definition
An operations manager's objective is to build a total quality management system that identifies and satisfies customer needs
ISO 9000 International Quality Standards
International recognition
Encouraged quality management procedures, detailed documentation, work instructions and record keeping
2015 revision gives greater emphasis to risk-based thinking
Over one million certifications in 206 countries
Critical for global business
Management principles
Cost of Quality
Prevention costs - reducing the potential for defects
Appraisal costs - evaluating products, parts, and services
Internal failure costs - producing defective parts or services before delivery
External failure costs - defects discovered after delivery
Ethnics 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
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
7 Concepts of TQM
Continuous Improvement
Employee Empowerment
Six Sigma
Bench-marking
Just-In-Time (JIT)
Taguchi Concepts
Knowledge of TQM Tools
TQM Tools
- Tools for generating ideas
Check Sheet
Scatter diagram
Cause-and-effect diagram
- Tools to Organize the Data
Pareto Chart
Flowchart (Process Diagram)
- Tools for identifying problems
Histogram
Statistical process control chart
TQM in Services
Services quality is more difficult to measure than the quality of goods
Service quality perceptions depend on
i) Intangible differences between products
ii) 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
Exceptions will occur
Attributes
vs
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