Introduction to Operations Management
Introduction to QUALITY MANAGEMENT
Introduction to Operations Management
Quality Management What does the term quality mean?
Quality is the ability of a product or service to consistently meet or exceed customer expectations.
A brief introduction. More details will be discuss in the course ISMT 263: Introduction to Quality Management
Introduction to Operations Management
Dimensions of Quality
How do people evaluate quality?Performance - main characteristics of the
product/serviceSpecial features - extra characteristicsConformance - how well product/service
conforms to customer expectationsReliability - consistency of performance
Introduction to Operations Management
Dimensions of Quality (Cont)
Durability - useful life of the product/service
Perceived Quality - indirect evaluation of quality (e.g. reputation)
Service after sale - handling of customer complaints or checking on customer satisfaction
Introduction to Operations Management
Determinants of Quality
What factors determine the quality of a product or service?
Introduction to Operations Management
Determinants of Quality
Service
Design Ease ofuse
Conform-ance to design
Introduction to Operations Management
Examples of Quality DimensionsD i m e n s i o n
1 . P e r f o r m a n c e
2 . S p e c i a l f e a t u r e s : S a f e t y A e s t h e t i c s C o n v e n i e n c e H i g h t e c h
( P r o d u c t )A u t o m o b i l e
E v e r y t h i n g w o r k s , f i t &f i n i s hR i d e , h a n d l i n g , g r a d e o fm a t e r i a l s u s e d
A n t i l o c k b r a k e s , a i r b a g sI n t e r i o r d e s i g n , s o f t t o u c hG a u g e / c o n t r o l p l a c e m e n tC e l l u l a r p h o n e , C D p l a y e r
( S e r v i c e )A u t o R e p a i r
A l l w o r k d o n e , a t a g r e e dp r i c eF r i e n d l i n e s s , c o u r t e s y ,C o m p e t e n c y , q u i c k n e s s
S e p a r a t e w a i t i n g a r e aC l e a n w o r k / w a i t i n g a r e aL o c a t i o n , c a l l w h e n r e a d yC o m p u t e r d i a g n o s t i c s
Introduction to Operations Management
Examples of Quality Dimensions (Cont’d)
Dimension
3. Reliability
4. Durability
5. Perceived quality
6. Service after sale
(Product)AutomobileInfrequency of breakdowns
Useful life in miles, resistanceto rust & corrosion
Top-rated car
Handling of complaints and/orrequests for information
(Service)Auto Repair
Work done correctly,ready when promised
Work holds up overtime
Award-winning servicedepartment
Handling of complaints
Introduction to Operations Management
The Consequences of Poor Quality
Loss of businessLiabilityProductivity (rework, defective output
that must be scrapped)Costs (rework, scrap, warranty cost,
etc.)
Introduction to Operations Management
Costs of QualityFailure Costs - costs incurred by defective
parts/products or faulty services.Internal Failure Costs
Costs incurred to fix problems that are detected before the product/service is delivered to the customer.
External Failure Costs All costs incurred to fix problems that are detected
after the product/service is delivered to the customer.
Introduction to Operations Management
Costs of Quality (continued)
Appraisal Costs All product and/or service inspection costs.
Prevention Costs All TQ training, TQ planning, customer
assessment, process control, and quality improvement costs to prevent defects from occurring
Introduction to Operations Management
Key Contributors to Quality Management
C o n t r i b u t o r
D e m i n g
J u r a n
C r o s b y
I s h i k a w a
K n o w n f o r
1 4 p o i n t s ; s p e c i a l & c o m m o n c a u s e s o fv a r i a t i o n
Q u a l i t y i s f i t n e s s f o r u s e ; q u a l i t y t r i l o g y
Q u a l i t y i s f r e e ; z e r o d e f e c t s
C a u s e - a n d e f f e c t d i a g r a m s ; q u a l i t yc i r c l e s
Q u a l i t y
Introduction to Operations Management
Total Quality Management
A philosophy that involves everyone in an organization in the quest for quality, with customer satisfaction as the driving force.
Introduction to Operations Management
Elements of TQM
Continual Improvement
Competitive Benchmarking
Employee Empowerment
Team Approach
Knowledge of Tools
Introduction to Operations Management
The process of involving customers in the design stage of new or redesigned products.
Quality Function Deployment(ouse of Quality?
Definition
Voice of theCustomer
ProductDevelopment
Production Sales
Introduction to Operations Management
Quality Awards
Baldrige Award
Deming Prize
Introduction to Operations Management
Malcolm Baldrige National Quality Award1.0 Leadership (100 points)
2.0 Information and Analysis (70 points)
3.0 Strategic Quality Planning (60 points)
4.0 Human Resource Utilization (150 points)
5.0 Quality Assurance of Products and Services (140 Points)
6.0 Quality Results (180 points)
7.0 Customer Satisfaction (300 points)
Introduction to Operations Management
The Deming Prize
Honoring W. Edwards DemingJapan highly coveted awardMain focus on statistical quality control
Introduction to Operations Management
The ISO 9000 Series Standards
Goal is a set of Euronorms
ISO 9000 series standards, briefly, require firms to document their quality-control systems at every step (incoming raw materials, product design, in-process monitoring and so forth) so that they will be able to identify those areas that are causing quality problems and correct them.
Introduction to Operations Management
The ISO 9000 Series Standards
ISO 9000 requires companies to document everything they do that affects the quality of goods and services. Hierarchical approach to documentation
Introduction to Operations Management
The ISO 9000 Series StandardsISO 9001, 9002, and 9003
This series is used in contractual situations. 9001 is the most stringent - addresses
design/development, production, installation, and service
9002 deals only with production and installation
9003 deals only with final testing and inspection
Introduction to Operations Management
ISO 9000 Series (continued)
ISO 9004 Internal standard that lists essential elements of
a quality system including management responsibilities, marketing, procurement, corrective action, human resource management, product safety, and the use of statistical methods.
Designed to help companies identify improvement opportunities
Introduction to Operations Management
ISO 9000 Registration Process
When an organization feels that its quality system is good enough, it may ask an accredited registrar or other third party audit team for pre-assessment.
Introduction to Operations Management
ISO 9000 Registration Process
The final audit begins with a review of the company's quality manual, which the accredited registrar or third party audit team typically uses as its guide. The audit team checks to see that the documented quality system meets the requirement of ISO 9000 and that the organization is practicing what is documented.
Introduction to Operations Management
ISO 9000 Registration Process
When the registrar is satisfied with the favorable recommendation of the audit team, it grants registration and issues a registration document to the company.