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MBA 8452 Systems and Operations ManagementMBA 8452 Systems and Operations Management

Quality Quality ManagementManagement

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QualityManagement

StatisticalProcess Control

Inventory Control

Just in Time

Introduction to Operations Management/ Operations Strategy

ProjectManagement

Planning for ProductionProcess Analysisand Design

Process Controland Improvement

Waiting Line Analysis

Services

Manufacturing

Process Analysis

Job DesignAggregate Planning

Capacity Management

Supply ChainManagement

Layout/ Assembly Line Balancing

Scheduling

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Objective: Quality Management

Be able to Define TQM Two Types of Quality What is meant by Customer Driven

Definition of Quality? Explain the Quality Awards/Certifications

Be able to describe the Quality Awards and Certifications

Apply the Quality Problem Solving Tools Be able to identify and use the problem

solving tools for quality management

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What Is Quality?

A degree or level of excellence(Oxford American Dictionary)

The totality of features and characteristics that satisfies given needs (ANSI and ASQC “official” definition)

Fitness for use (Joseph Jurn’s definition)

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What Is Quality? Design & Conformance Quality

Quality of Design the degree to which quality

characteristics are purposely designed into the product or service

Quality of Conformance the degree to which the product or

service design specifications are met

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What Is Quality? Dimensions of Product Quality

Performance (basic operating characteristics) Features (extra items added) Reliability (likelihood that product will perform

normally over time) Conformance (meeting pre-specified

standards) Durability (useful life span) Serviceability (ease of repair) Aesthetics (sensory characteristics) Perception (perceived quality)

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What Is Quality? Dimensions of Service Quality

Time & Timeliness (waiting time, on time

service)

Completeness (customer gets all they asked for)

Courtesy (treatment by employees)

Consistency (same level of service for all)

Accessibility (ease of obtaining service)

Accuracy (performed right every time)

Responsiveness (reactions to unusual situations)

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Cost of Quality

Cost of achieving good quality Prevention (quality planning and training,

identify and removing poor quality source) Appraisal (inspection, testing)

Cost of poor quality Internal failure costs (scrap, rework, repair) External failure costs (returned products,

warranty charges, complaints, liability)

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Total Quality Management (TQM)

Management of the entire

organization so that it excels on all

dimensions of products and services

that are important to the customer

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Total Quality Management

Elements

1. Customer-driven quality

2. Top management leadership

3. Quality as a strategic issue

4. All employees responsible for quality

5. Continuous improvement (CI)

6. Shared problem solving

7. Statistical quality control (SQC)

8. Training & education for all employees

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Total Quality Management Deming’s 14 Points

1. Create a constancy of purpose toward improvement of product and service with a plan to be competitive, stay in business, and provide jobs.

2. Adopt the new philosophy of preventing poor-quality products instead of acceptable levels of poor quality.

3. Cease dependence on mass inspection to achieve quality, instead using statistical evidence that quality is being built into the product.

4. Select a few suppliers or vendors based on quality commitment rather than competitive prices.

5. Constantly improve the system of production and service, thus increasing productivity and reducing costs.

6. Institute modern methods of training, including statistical techniques and thinking.

7. Instill leadership among supervisors to help workers perform better.

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Total Quality Management Deming’s 14 Points

8. Driving out fear from the workforce by encouraging employee involvement so that everyone may work effectively for the company.

9. Break down barriers between departments, and promote teamwork.

10. Eliminate slogans and numerical targets that urge workers to achieve higher performance levels without first showing them how to do it.

11. Eliminate numerical quotas that employees attempt to meet at any cost without regard for quality.

12. Promote worker pride by improving supervision and the production process so that workers can perform to their capabilities.

13. Institute vigorous education and training programs in methods of quality improvement throughout the organization, from top management down, so that continuous improvement can occur.

14. Develop a commitment from top management to implement the previous thirteen points.

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Continuous Improvement:

P-D-C-A Cycle (Deming Wheel)

Identify problem and develop plan for improvement

Implement plan on test basis

Assess the plan: Is the plan working?

Institutionalizeimprovement Do

Check

Act

Plan

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Continuous Improvement:

Benchmarking Process of measuring and improving a firm’s

performance by learning from the best practices identify processes needing improvement

identify the best practices or leaders

contact, visit, and study the benchmark organization

analyze data

take action

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Continuous Improvement: Seven Quality Control Tools

1. Pareto analysis2. Process flowcharts3. Check sheets4. Histograms5. Scatter diagrams6. Control charts7. Cause & effect diagrams

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Per

cent

fro

m e

ach

caus

e

Causes of poor quality

Mac

hine

cal

ibra

tions

Defec

tive

parts

Wro

ng d

imen

sions

Poor D

esig

n

Ope

rato

r erro

rsDef

ectiv

e m

ater

ials

Surfa

ce a

bras

ions

0

10

20

30

40

50

60

70(64)

(13)(10)

(6)(3) (2) (2)

80% of the problems can often be attributed to 20% of thecauses.

Pareto Analysis

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Process Flowcharts

Identify the potential fail points

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Check Sheet

COMPONENTS REPLACED BY LABTIME PERIOD: 2/5/01 - 2/9/01REPAIR TECHNICIAN: Bob Smith

TV SET MODEL 1013

Integrated Circuits ||||

Capacitors |||| |||| |||| |||| |||| ||

Resistors ||

Transformers ||||

CommandsCRT |

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Histogram

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Number of defects

Frequ

ency

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Scatter Diagram

Hours of Training

Num

ber

of D

efec

ts

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Control Chart

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12

6

3

9

15

21

24

2 4 6 8 10 12 14 16

Sample number

Num

ber

of d

efec

ts

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Cause & Effect Diagram (Fishbone Diagram)

QualityProblem

MachinesMeasurement Human

ProcessEnvironment Materials

Faulty testing equipment

Incorrect specifications

Improper methods

Poor supervision

Lack of concentration

Inadequate training

Out of adjustment

Tooling problems

Old / worn

Defective from vendor

Not to specifications

Material-handling problems

Deficienciesin product design

Ineffective qualitymanagement

Poor process design

Inaccuratetemperature control

Dust and Dirt

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Quality Awards

The Malcolm Baldrige National Quality Award (USA, since 1987) www.quality.nist.gov

The Deming Prize (Japan, since 1951) www.deming.org

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Malcolm Baldrige Quality Award: Criteria (2000)

1.0 Leadership (125 points)

2.0 Strategic Planning (85 points)

3.0 Customer and Market Focus (85 points)

4.0 Information and Analysis (85 points)

5.0 Human Resource Focus (85 Points)

6.0 Process Management (85 points)

7.0 Business Results (450 points)

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Categories for the Baldrige Award

Manufacturing companies or subsidiaries

Service companies or subsidiaries

Small businesses (less than 500

employees)

Health care organizations

Educational institutions

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ISO 9000

A set of international quality standards and guidelines agreed upon by the International Organization for Standardization (ISO)

Adopted in 1987

Recognized by more than 100 countries

ISO 9000 Certification for competitive advantage

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ISO 9000 Series 9001

Model for Quality Assurance in Design, Production, Installation, and Servicing.

9002 Model for Quality Assurance in

Production and Installation 9003

Model for Quality Assurance in Final Inspection Test

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ISO 9000 Series

Application Areas

Design/Development

Production Installation ServicingProcurement

ISO9003

ISO9001

ISO9002

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ISO 9000 Certification

required by many foreign firms enhance global competitiveness three Forms of Certification

First party: firm audits itself Second party: customer audits supplier Third party: audited by "qualified"

agencies (ANSI, ASQC, RAB)