MBF2213 Operations Management Prepared by Dr Khairul Anuar. L8: Quality Management

Transcription

1 MBF2213 Operations Management Prepared by Dr Khairul Anuar L8: Quality Management

2 Capacity planning and control Operations strategy Design Improvement Quality management Planning and control The market requires consistent quality of products and services The operation supplies the consistent delivery of products and services at specification or above 2

3 Key operations questions Quality planning and control Slack et al. identify the following key questions: What is quality and why is it so important? How can quality problems be diagnosed? What steps lead towards conformance to specification? What is Total Quality Management (TQM)? 3

4 Image up Price competition down High quality puts costs down and revenue up Sales volume up Service costs down Scale economies up Quality up Inspection and test costs down Rework and scrap costs down Complaint and warranty costs down Productivity up Inventory down Processing time down Capital costs down Revenue up Profits up Operation costs down 4

5 Perceived quality is governed by the gap between customers expectations and their perceptions of the product or service 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 Expectations < perceptions Perceived quality is good 5

6 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 Customers expectations concerning a product or service Customers own specification of quality Gap 1 Organization s specification of quality Is there a Gap? Customers perceptions concerning the product or service The actual product or service Gap 3 The operation s domain Gap 4 6

7 The perception expectation gap Gap Gap 1 Gap 2 Gap 3 Gap 4 Action required to ensure high perceived quality Ensure consistency between internal quality specification and the expectations of customers Ensure internal specification meets its intended concept of design Ensure actual product or service conforms to internally specified quality level Ensure that promises made to customers concerning the product or service can really be delivered Main organizational responsibility Marketing, operations, product/service development Marketing, operations, product/service development Operations Marketing 7

8 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. 8

9 Attribute and variable measures of quality Attributes Defective or not defective? Variables Measured on a continuous scale Light bulb works or does not work? Light emission of bulb Number of defects in a turbine. Length of blade blade 9

10 Aspects of quality Quality Quality fitness for purpose Reliability ability to continue working at accepted quality level Quality of Design degree to which design achieves purpose Quality of Conformance faithfulness with which the operation agrees with design Variables things you can measure Attributes things you can assess accept/reject 10

11 Total Quality Management What does Total Quality Management include? Includes all parts of the organization Includes all staff of the organization Includes consideration of all costs Includes every opportunity to get things right Includes all the systems that affect quality And it never stops! 11

12 Total quality management can be viewed as a natural extension of earlier approaches to quality management Makes quality central and strategic in the organization Broadens the organizational responsibility for quality Solves the root cause of quality problems Statistics Process analysis Quality standards Quality is strategic Teamwork Staff empowerment Involves customers and suppliers Quality systems Quality costing Problem solving Quality planning Prevents out of specification products and services reaching market Error detection Rectification Inspection Quality control Quality assurance Total Quality Management 12

13 The internal customer supplier concept involves understanding the relationship between processes Process 3 External supplier Process 1 Process 2 Process 5 Process 6 External customer Process 4

14 Costs The traditional cost of quality model Optimum amount of quality effort Amount of quality effort Cost of errors = costs of prevention and appraisal Total cost of quality Cost of quality provision = costs of internal and external failure 14

15 Costs The traditional cost of quality model with adjustments to reflect TQM criticisms Optimum amount of quality effort Amount of quality effort Cost of errors = costs of prevention and appraisal Total cost of quality Cost of quality provision = costs of internal and external failure 15

16 Cost to rectify error The cost of rectifying errors becomes increasingly expensive the longer the errors remain uncorrected in the development and launch process 10, Concept Design Pilot Prototype production Market use Stage in the development and launch process 16

17 Costs of quality Increasing the effort spent on preventing errors occurring in the first place brings a more than equivalent reduction in other cost categories Appraisal Total cost of quality Internal failure Appraisal Prevention Time 17

18 Effectiveness of the TQM initiative The pattern of some TQM programmes which run out of enthusiasm Introduction Learning and understanding Growth Increasing enthusiasm Levelling off Starting to hit the more difficult problems Disillusionment Waning enthusiasm Repackaging Attempts to revitalize the programme 18