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Quality Management - Coggle Diagram

- - - - Reduced Operations Costs
    - - Increased Sales Volme
        
        Increased Revenue
        
        Increased Profit
        
        Economies of Scale
        
        Reduced Operations Costs
  - - - Increased Revenue
      - Economies of Scale
        
        Reduced Operations Costs
  - - - Reduced Operations Costs
  - - - Reduced Operations Costs
  - - - Reduced Operations Costs
- - - - Variable measures are those that can be measured on a continuously variable scale (for example, length, diameter, weight, or time)
      - Attributes are those that are assessed by judgement and are dichotomous (that is, they have two states such as right or wrong, works or does not work, looks ok or not ok)
  - - - Where in the operation should they check that I is conforming to standards?
      - Should they check every service or product or take a sample?
      - How should the checks be performed?
    - - At the start of the process, incoming resources may be inspected to make sure that they are to the correct specification
      - During the process, checks may take place before a particularly costly process, prior to difficult to check, immediately after a process with a high defective rate, before potential damage or distress might be cause, and so on
      - Checks may also take place after the process itself, to ensure that customers do not experience non-conformance
      - Check every product and service, or take a sample
        
        Might be dangerous to inspect everything
        
        Checking everything might destroy the product or interfere with the service
        
        Checking everything can be time-consuming and costly
        
        100% checking may not guarantee that all defects will be identified as sometimes it can be intrinsically difficult nor is it easy to notice everything
      - Type I and Type II errors
        
        Like any decision activity, we may get the decision wrong
        
        Type II errors
        
        are those that occur when nothing was done, yet the decision to do something should have been taken as the situation did indeed warrant it
        
        if he or she decides not to cross, even through there was an adequate gap in the traffic
        
        Type I errors
        
        are those that occur when a decision is made to do something and the situation did not warrant it
        
        if he or she decides to cross when there is not an adequate break in the traffic, resulting in a accident
      - How should checks be performed
        
        The most common approach for checking the quality of a sample service or product so as to make inferences about all the output from an operation is called statistical process control (SPC)
        
        This is concerned with sampling the process during the production of the goods or the delivery of service
        
        The value of the SPC is not just to make checks of a single sample, but to monitor quality over a period pf time
        
        In addition to looking at trends in quality performance , a key aspect of SPC is that it looks at the variability in performance
        
        So called natural variations, which derive from common causes, can never be entirely eliminated (although they can be reduced). For example, if a machine is filling boxes with rice, it will not place exactly the same weight of rice in every box it fills
        
        Normally, this type of variation can be described by normal distribution, with 99.7% of the variation lying within ± 3 standard deviations
        
        Assignable causes of variability
        
        There may be something wrong with the process that is assignable to a particular and preventable cause: equipment may have been set up badly, or an untrained person may not be following prescribed procedures. (the causes of such variation are called assignable causes)
        
        Assignable variation is a signal that something has changed in the process, which therefore must be investigated
        
        To distinguish between the two, control limits can be added to the control chart (the red dotted lines) that indicate the expected extent of common-cause variation
        
        if any points lie outside these control limits (the shaded zone), then the process can be deemed out of control in the sense that variation is likely to be due to assignable causes
        
        These control limits could be set intuitively, but they can also be set in a more statistically revealing manner.
        
        normal variation is itself a problem because it masks any changes in process behaviour
  - - - This can be viewed as a logical extension of the way in which quality-related practice has progressed, as shown below
        
        It is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organisation so as to enable production and service at the most economical levels which allow for full customer satisfaction
        
        It is best thought of as a philosophy of how to approach quality improvement with the philosophy, above everything, stressing the total of TQM
      - Aspects
        
        The Quality Control (QC) concept developed a more systematic approach to not only detecting but also treating quality problems
        
        Quality Assurance (QA) winded the responsibility for quality to include functions other than direct operations
        
        use of more sophisticated statistical quality techniques
      - Important factors
        
        Meeting the needs and expectations of customers
        
        Covering all parts of the organisation
        
        Including every person in the organisation
        
        Examining all costs that are related to quality, especially failure costs, and getting things right first time
        
        Developing the systems and procedures that support quality and improvement
        
        Developing a continuous process of improvement
      - TQM
        
        Meets the needs and expectations of customers
        
        In TQM, the customer perspective is particularly important, and may be referred to as customer-centricity or the voice of the customer
        
        TQM stresses the importance of starting with an insight into customer needs, wants, perceptions, and preferences
        
        Covers all parts of the organisation
        
        For an organisation to be truly effective, every single part of it, each department, each activity, and each person at each level, must work properly together, because every person and every activity affects and in turn is affected by others
        
        Includes every person in the organistion
        
        Every person in the organisation has the potential to contribute to quality
        
        Means all costs of quality are considered
        
        necessary to examine all the costs and benefit associated with quality (cost of quality is usually taken to refer to both costs and benefits of quality)
        
        Prevention costs are those costs incurred in trying to prevent problems, failures, and errors from occurring in the first place
        
        Identifying potential problems and putting the process right before poor quality occurs
        
        Designing an improving the design of products and services, and processes to reduce quality problems
        
        Training and development of personnel in the best way to perform their jobs
        
        Process control through SPC
        
        Appraisal costs are those costs associated with controlling quality to check to see if problems or errors have occurred during and after the creation of the service or product
        
        The setting up of statistical acceptance sampling plans
        
        The time and effort required to inspect inputs, processes, and outputs
        
        Obtaining processing inspection and test data
        
        Investigating quality problems an providing quality reports
        
        Conducting customer surveys and quality audits
        
        Internal failure costs are failure costs associated with errors that are dealt with inside the operation
        
        The cost of scrapped parts and materials
        
        Reworked parts and materials
        
        The lost production time as a result of coping with errors
        
        Lack of concentration due to time spent troubleshooting rather than improvement
        
        External failure costs are those that are associated with an error going out of the operation to a customer
        
        Loss of customer goodwill affecting future business
        
        Aggrieved customers who may take up time
        
        Litigation (or payment s to avoid litigation)
        
        Guarantee and warranty costs
        
        The cost to the company of providing excessive capability (too much coffee in the pack, or too much information to a client)
        
        In traditional quality management, it was assumed that failure costs reduce as the money spent on appraisal and prevention increases
        
        Furthermore, it was assumed that there is an optimum amount of quality effort to be applied in any situation, which minimise the total costs of quality
        
        The argument is that there must be a point beyond which diminishing returns set in – this is the cost of improving quality gets larger than the benefits that it brings
        
        TQM believes this logic is flawed
        
        1.It implies that failure and poor quality are acceptable. Why, as argued by TQM proponents, should any operation accept the inevitability of errors?
        
        it assumes that costs are known and measurable
        
        It is argued that failure costs in the traditional model are greatly underestimated
        
        It implies that prevention costs are inevitably high because it involves expensive inspection
        
        The optimum-quality level approach, by accepting compromise, does little to challenge operations managers and stuff to find ways of improving quality
        
        TQM quality-cost model
        
        TQM rejects the optimum-quality level concept and strives to reduce all known and unknown failure costs by preventing errors and failure taking place
        
        Rather than looking for optimum levels of quality effort, TQM stresses the relative balance between different types of quality costs
        
        Of the four cost categories, two (costs of prevention and costs of appraisal) are open to managerial influence, while the other two (internal costs failure and external costs of failure) show the consequences of changes in the first two
        
        Rather than placing most emphasis on appraisal (so that bad products and services don’t get through to the customer), TQM emphasises prevention (to stop errors happening in the first place)
        
        This change in the view of quality costs has come about with a movement from an inspect-in (appraisal-driven) approach to a design-in (getting it right first time) approach
    - - The ISO 9000 series is a family of standards compiled by the International Organisation of Standardisation (ISO), which is the world’s largest developer and publisher of international standards, based on Geneva, Switzerland
      - The ISO illustrates the benefits of the standard as follows: Without satisfied customers, an organisation is in peril
      - The ISO 9001:2008 standard provides a tried-and-tested framework for taking a systematic approach to managing the organisation’s processes so that they consistently turn out products that satisfies customers’ expectations
        
        In addition, it is also seen as providing benefits both to the organisation adopting it (because it gives them detailed guidance on how to design their control procedures) and especially to customers (who have the assurance of knowing that the products and services they purchase are produced by an operation working to a defined standard)
        
        Furthermore, it may also provide a useful discipline to stick to sensible, process-orientated procedures, which lead to error reduction, reduced customer complaints and reduced costs of quality, and may even identify existing procedures that are not necessary and can be eliminated
- - - - Leadership that looks to the future, acts as a role model for values and ethics, inspires trust, is flexible, enables anticipation etc. can react in a timely manner
      - Strategy that implements the organisation’s mission and vision by developing and deploying a stakeholder-focused strategy
      - People who should be valued by their organisation, creating a culture that allows mutually beneficially achievement of both organisational and personal goals, develops the capabilities of people, promotes fairness and equality, care for, communicates, rewards and recognises people )in a way that motivates and builds commitment)
      - Partnership and resources such as external partnerships, suppliers and internal resources that organisations should plan to manage in order to support strategy and policies and the effective operation of processes
      - Processes, products and services that organisations should design, manage and improve to ensure value for customers and other stakeholders
    - - Customer results- meeting or exceeding the needs and expectations of customers
      - People results – meeting or exceeding the needs and expectations of employees
      - Society results – achieving and sustaining results that meet or exceed the needs and expectations of the relevant stakeholders within society
      - Business results – achieving and sustaining results that meet or exceed the needs and expectations of business stakeholders