Slide Chapter 17 Quality management

Transcription

1 Slide 17.1 Chapter 17 Quality management

2 Slide 17.2 Quality management Direct Design Operations management Develop Quality management Deliver The market requires consistent quality of products and services The operation supplies... the consistent delivery of products and services at specification or above Figure 17.1 This chapter covers quality management

3 Slide 17.3 Key operations questions What is quality and why is it so important? What is total quality management (TQM)?

4 Slide 17.4 Different Perspectives Quality Transcendent: Quality = Excellence. Recognized only through experience Manufacturingbased: Quality is in conformance to the firm s developed specifications User-based: Quality lies in the eyes of the beholder Value-based: Quality is a trade-off between price and value

5 Slide 17.5 Quality characteristics of goods and services Functionality how well the product or service does the job for which it was intended. Appearance aesthetic appeal, look, feel, sound and smell of the product or service. Reliability consistency of product or services performance over time. Durability the total useful life of the product or service. Recovery the ease with which problems with the product or service can be rectified or resolved. Contact the nature of the person-to-person contacts that take place.

6 Slide 17.6 High quality puts costs down and revenue up Revenue effects Cost effects Enhanced service/product image (brand value) Reduced price competition Increased sales volume Increased revenue Improved quality (consistent conformance to customers expectations) Faster customer response time Increased customer service Economies of scale Increased profit Reduced cost of rectifying errors Reduced capital costs Reduced operations costs Figure 17.2 Higher quality has a beneficial effect on both revenues and costs Reduced cost of compensating customers Reduced cost of detecting errors Increased productivity

7 Slide 17.7 The Secret of Quality Customers expectations for the product or service Gap Customers perceptions of the product or service Customers expectations for the product or service Customers perceptions of the product or service Gap Customers expectations for the product or service Customers perceptions of the product or service Expectations > perceptions Perceived quality is poor Expectations = perceptions Perceived quality is acceptable/satisfied Expectations < perceptions Perceived quality is surprising

8 Slide 17.8 A Gap model of quality Previous Experience Word-of-mouth communications Image of product or service The customer s domain Management s concept of the product or service Gap 2 Customer s expectations concerning a product or service Customer s own specification of quality Gap 1 Organization s specification of quality Gap? Customer s perceptions concerning the product or service The operation s domain The actual product or service Gap 3 Gap 4

9 Slide 17.9 Total Quality Management Encompasses entire organization, from supplier to customer Stresses a commitment by management to have a continuing, companywide drive toward excellence in all aspects of products and services that are important to the customer

10 Slide TQM Elements 1. Continuous Improvement 2. Employee Empowerment 3. Benchmarking 4. Just-in-Time (JIT) 5. Taguchi & Poka-Yoke 6. Knowledge of TQM Tools

11 Slide Continuous Improvement Represents continual improvement of all processes Involves all operations and work centers including suppliers and customers People, Equipment, Materials, Procedures

12 Slide Employee Empowerment Getting employees involved in product and process improvements Techniques Build communication networks that include employees Develop open, supportive supervisors Move responsibility to employees Build a high-morale organization Create formal team structures

13 Slide Employee Empowerment Quality Circles Group of employees who meet regularly to solve problems Trained in planning, problem solving, and statistical methods Often led by a facilitator Very effective when done properly

14 Slide Benchmarking Selecting best practices to use as a standard for performance Determine what to benchmark Form a benchmark team Identify benchmarking partners Collect and analyze benchmarking information Take action to match or exceed the benchmark

15 Slide Just-in-Time (JIT) Relationship to quality: JIT cuts the cost of quality JIT improves quality Better quality means less inventory and better, easier-to-employ JIT system

16 Slide Taguchi Methods Taguchi Methods = Robustness Ability to produce products uniformly in adverse (environmental) conditions Small variations in 3M (man, machine, material) and process do not destroy product/service quality

17 Slide Poka-yoke (fail-safeing) Prevent inadvertent operator mistakes resulting in a defect Fail-safeing the server Color coding cash register Digital counter on machines, e.g., to count money The McDonald s french-fry scoop Checklist which have to be filled, either in preparation for, or on completion of, an activity Trays used in hospital with shaped of items

18 Slide Seven Tools of TQM Tools for Generating Ideas Check sheets Scatter diagrams Cause and effect diagrams Tools to Organize the Data Pareto charts Flow charts Tools for Identifying Problems Histogram Statistical process control chart

19 Slide Check Sheet Check Sheet: An organized method of recording data Hour Defect A /// / / / / /// / B // / / / // /// C / // // ////

20 Productivity Slide Scatter Diagram Scatter Diagram: A graph of the value of one variable vs. another variable Absenteeism Figure 6.5

21 Mistagged bags Poor check-in policies Poorly trained attendants Insufficient clean pillows & blankets on-board Deicing equipment not available Slide Cause-and-Effect Diagrams A tool that identifies process elements (causes) that might effect an outcome Material Machinery Inadequate supply of magazines Inadequate special meals on-board Overbooking policies Bumping policies Mechanical delay on plane Broken luggage carousel Understaffed crew Understaffed ticket counters Dissatisfied Airline Customer Methods Manpower Figure 6.6

22 Frequency (number) Cumulative percent Slide Pareto Charts Data for October Number of occurrences Room svc Check-in Pool hours Minibar Misc. 72% 16% 5% 4% 3% Causes and percent

23 Step Operation Transport Inspect Delay Storage Time (min) Distance (feet) Slide Flow Charts Date: Analyst: TLR Location: Graves Mountain Process: Apple Sauce Description of process Unload apples from truck Move to inspection station Weigh, inspect, sort Move to storage Wait until needed Move to peeler Apples peeled and cored Soak in water until needed Place in conveyor Move to mixing area Weigh, inspect, sort 360 Page 1 0f 3 Total ft 50 ft 20 ft 20 ft 190 ft

24 Frequency Slide Histogram Histogram: A distribution showing the frequency of occurrences of a variable Distribution 2011 Pearson Education Repair time (minutes)

25 Slide Statistical Process Control Chart Statistical Process Control Chart: A chart with time on the horizontal axis to plot values of a statistic Upper control limit Target value Lower control limit Time Figure 6.5