View
239
Download
1
Category
Preview:
Citation preview
© 2011 Pearson Education, Inc. publishing as Prentice Hall
SCM 352
6 Managing Quality
Outline
• Global Company Profile: Arnold Palmer Hospital• Quality and Strategy • Defining Quality• Malcolm Baldrige National Quality Award • Cost of Quality • International Quality Standards
– ISO 9000, ISO 14000• Ethics and Quality Management• Total Quality Management• Six Sigma Quality• TQM Tools
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Arnold Palmer Hospital
• Deliver over 16,000 babies annually• Virtually every type of quality management
technique is employed– Continuous improvement– Employee empowerment– Benchmarking– Just-in-time– Quality tools
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Quality and Strategy
• An operations manager’s objective is to build a total quality management system that identifies and satisfies customer needs
• Managing quality supports differentiation, low cost, and response strategies
• Quality helps firms increase sales and reduce costs
• Building a quality organization is a demanding task
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Improved Quality
Increased Profits
Increased productivityLower rework and scrap costsLower warranty costs
Reduced Costs
Improved responseHigher PricesImproved reputation
Sales Gains
Figure 6.1
Quality Improves Productivity
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Dimensions of Quality for Goods
Quality
Performance
Features
Reliability
Durability
Conformance
Serviceability
Aesthetics
Perceived quality
Value
Importance of Perceived Quality
• “The issue of public perception is coming into sharper focus now because experts say the Big Three, after years of concentrating on trucks and all but ignoring cars, have markedly improved the quality and look of their sedans and compacts.”
• “If they think it’s an American car, the perception of the vehicle falls dramatically,” said Art Spinella, VP of CNW Market Research, “Detroit gets a bum rap in the US.”
• “Those negative impressions are now souring efforts by Ford Motor Co., General Motors Corp. and Chrysler LLC to halt their long slide in US market share. And for these Detroit auto makers, persuading import buyers to even consider a US car is becoming a new battleground.”
(Neal Boudette, “Detroit Auto Makers Try Some New Tricks,” Wall Street Journal, Sep 14, 2007)
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Under-standing
Tangibles
Reliability
CommunicationCredibility
Security
Responsiveness
Competence
Courtesy
Access
© 1995 Corel Corp.
Service Quality Dimensions
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Malcolm Baldrige National Quality Award
• Established in 1988 by the U.S. government• Designed to promote performance excellence• Seven criteria
– Leadership; strategic planning; customer and market focus; measurement, analysis and knowledge management; human resource focus; process management; business results
• Past winners– Motorola; Xerox; Ritz-Carlton Hotels;
Cadillac; Los Alamos National Bank• Similar award in Japan - Deming Prize
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Cost of Quality – 4 Categories
• Prevention costs – reducing the potential for defective parts or service (training, quality improvement programs, vendor certification)
• Appraisal costs – evaluating products, processes & services (testing, labs, inspectors)
• Internal failure – production of defective parts or service before delivery to customers (rework, scrap, downtime)
• External costs – occur after delivery of defective products or service (warranty, lost goodwill, liabilities, costs to society)
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Internal Failure
Prevention
Appraisal
Total Cost
Quality Improvement
Total Cost
Costs of Quality
External Failure
© 2011 Pearson Education, Inc. publishing as Prentice Hall
International Standards
• ISO 9000 – international quality standards
• ANSI/ASQ Q9000 series - US
• ISO 14000 – international environmental management standards
• These procedures say nothing about the actual quality of the product – they deal entirely with standards to be followed
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Ethics and Quality Management
• Operations managers must deliver healthy, safe, quality products and services
• Poor quality risks injuries, lawsuits, recalls, and regulation – recent Mattel China toy recall
• Organizations are judged by how they respond to problems
• All stakeholders much be considered
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Deming’s Fourteen Points
• Create consistency of purpose• Lead to promote change• Build quality into the products; stop depending
on inspections to catch problems• Build long term relationships based on
performance instead of awarding business based on price
• Continuously improve product, quality, and service
• Start training
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Deming’s 14 Points - continued
• Emphasize leadership• Drive out fear• Break down barriers between departments• Stop haranguing workers• Support, help, improve• Remove barriers to pride in work• Institute a vigorous program of education and
self-improvement• Put everybody in the company to work on the
transformation
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Total Quality Management (TQM)
• 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.
• Continuous Improvement, Employee Empowerment, Benchmarking, Just-in-Time (JIT), Taguchi Concepts, Knowledge of TQM tools
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Continuous Improvement
• Represents continual improvement of process & customer satisfaction
• Involves all operations & work units
• Other names– Kaizen (Japanese)– Zero-defects– Six sigma
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Six Sigma Quality
• Originally developed by Motorola, Six Sigma refers to an extremely high measure of process capability
• A Six Sigma capable process will return no more than 3.4 defects per million operations (DPMO)
• Highly structured approach to process improvement
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Six Sigma
Two meaningsStatistical definition of a process that is 99.9997% capable, 3.4 defects per
million opportunities (DPMO)A program designed to reduce
defects, lower costs, and improve customer satisfaction
Mean
Lower limits Upper limits
3.4 defects/million
±6σ
2,700 defects/million
±3σ
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Employee Empowerment
• Getting employees involved in product & process improvements– 85% of quality problems are due to
process & material • Techniques
– Support workers– Let workers make decisions– Build teams & quality circles
© 1995 Corel Corp.
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Seven Tools of TQM
Table 6.6
Thank You
Questions? ?
Recommended