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OPM CHAP 8 - Coggle Diagram
OPM CHAP 8
Intro: Quality Management
- Quality Related Costs
- Traditional Approaches to Quality Management
- Contemporary Thinking in Quality Management (TQM)
- Method of Quality Management
- Lean Production
Quality Management
- Involves planning and controlling activities to ensure the product or service is fit for purpose, meeting design specifications and the needs of customers
Key Processes of Quality Management
- Quality Planning
- devising a quality management plan that describes the processes and metrics that are to be used.
- Quality Assurance
- assuring, validating and exhibiting to the organization that you have the abilities, skills, knowledge and attitude to achieve the desired outcome
- Quality Control
- inspection, testing and measurement of project deliverables
- Continual Improvement
- examining how the three elements above will drive further improvements in efficiency and effectiveness
Quality Related Costs
Types of cost of quality:
- Prevention costs
- Appraisal costs
- Internal failure cost
- External failure cost
1. Prevention costs
- cost of preventing defects before they occur
- e.g. training employees in the best ways to do their job
2. Appraisal costs
- costs of quality inspection and testing
3. Internal failure costs
- costs arising from a failure to meet quality standards
- e.g. cost of re-working parts
4. External failure cost
- costs arising from a failure to meet quality standard
- e.g. cost of lost goodwill
Traditional Approach to Quality Management
- Associated with the inspection of quality management
- Allows for built in waste and waste reduces profitability
Contemporary Thinking in Quality Management (TQM)
- philosophy of quality management that originated in Japan
- continuous improvement in quality, productivity and effectiveness obtained by establishing management responsibility for processes as well as outputs
Features of TQM
- Prevention of error before they occur
- Continual improvement
- Real participant by all
- Commitment of senior management
TQM Tools
- Six Sigma
- 5-S Practice
- Kaizen
- Quality Circles
4. Quality Circles
- a small group of employees with range of skills from all levels of the organisation
- Meet voluntarily on a regular basis to discuss quality issues and to develop solutions to real problems.
Advantage of Quality Circles
- improvements in quality
- leading to greater customer satisfaction
- improved productivity
3. Kaizen
- continuous improvement in performance
Features of Kaizen
- Involved all level of employees
- Everyone is encourage to come up with small improvement suggestions on a regular basis
- involves in setting standards and then continually improving those standards
- Cycle involve in Kaizen are Deming Cycle (Plan, Do, Check and Act)
2. 5-S Practice
- An approach to achieving an organised, clean and standardised workplace
- is often part of a Kaizen approach
5-S Practice
1. Seiri (Sort)
- Eliminate unnecessary items
2. Seiton (Organise)
- A structure filing system
3. Seiso (Clean)
- Clean work station regularly
4. Seiketsu (Standardise)
- Alphabetic filing system
5. Shitsuke (Discipline)
- Do not slip back into old habits
1. Six Sigma
- to identify root problems and address them
- focused on the customer and based on the level of performance acceptable to the customer
Critism of Six Sigma
- criticised for its focus on current processes and reliance on data because too rigid and limit process innovation
- Approach can be time consuming and expensive
- The culture must be supportive
- The process is heavily data-driven
Implementation of TQM Approach
- Step 1: Senior management consultancy
- Managers must be committed to the programme and should undergo quality training
- Step 2: Establish a quality steering committee
- The committee will guide the company through the process of implementing TQM
- Step 3: Presentations and training
- The steering committee should communicate the benefits of the change programme to employees in order to gain buy in
- Step 4: Establish quality circle
- This will involve employees in the process of quality improvement
- Step 5: Documentation
- The actions carried out should be clearly documented
- Step 6: Monitor progress
- Actual results should be monitored against the standards set
External Quality Standard
- widely used EQS are those published by the ISO
Main ISO Standards
- ISO 9001
- contains the quality management standards
- ISO 9000 and 9004
- contains guidelines to help organisations to implement quality standards
Requirements include ISO
- A set of procedures that cover all key business processes
- Keeping adequate records
- Checking output for defects
- Facilitating continuous improvement
Methods of Quality Measurement
Servqual (measuring service quality)
- uses 22 questions to understand a respondent's attitude about service quality
- questions claimed to be reliable indicators of five distinct dimensions (tangible, reliability, responsiveness, assurance, empathy)
Benchmarking
- process of systematic comparison of a service, practice or process
- used to provide a target for action in order to improve competitive position
- Types of benchmarking (competitive, internal, functional)
1. Competitive benchmarking
- a method of comparing performance in key areas with of the most successful competitors
2. Internal benchmarking
- a method of comparing performance in key areas in one part of the organisation with the performance in another part of the organisation
3. Functional benchmarking
- involves comparing a function with the practices of an organisation known to excel in that area
Benchmarking Process
- Select process to be benchmarked
- Assign responsibilities
- Identity potential to benchmark against
- Collect, analyse and evaluate information
- Identify best practice
- Implement the change
- Review success
Business Process Re-engineering (BPR)
- involve focusing attention inwards to consider how the business processes could be redesigned or re-engineered to improve efficiency
- use contrasts with benchmarking which is an external exercise although the ideas generated through benchmarking may be used here to offer radical solutions
Lean Management
- aims to systematically eliminate waste
Wasted to be eliminated
- Inventory
- Waiting
- Defective units
- Effort
- Transportation
- Over-processing
Characteristics of Lean Production
- Improve production scheduling
- continuous improvement
- zero inventory
- zero waiting time
Criticism and limitations on lean manufacturing
- High initial outlay
- Requires a change in culture
- Part adoption
- Cost may exceed benefit
Six core method of lean manufacturing
- JIT
- Kaizen
- 5-S Practice
- Total Productive Maintenance (TPM)
- Cellular Manufacturing
- Six Sigma
Factors affecting application of lean techniques to services
- Services are intangible
- Services are consumed immediately