1. GROUP MEMBERS: Muniandy A/L Songappen (816530) Sumitra Subramaniam (816714) Yeoh Hoei Zu (814695) Nitha K.Madhavan (816708 TITLE : MANAGING QUALITY OPERATIONS AND TECHNOLOGY MANAGEMENT

2. INTRODUCTION  Quality refers to the ability of a product or service to consistently meet or exceed customer requirements or expectations. Another definition is “fitness for use”  Many people view quality by comparing features and characteristic of goods and services to a set of expectation.  Some of the perspectives includes  Perfection  Consistency  Eliminating waste  Speed of delivery  Compliance with policies and procedures  Providing a good,usable product  Doing it right the first time  Delighting or pleasing customers  Total customer service and satisfaction

3. OVERVIEW GAP model used to evaluate quality of goods and services and identifies where to focus the design and improvement.

4. GAP Model GAP 1 Inadequate market research orientation Lack of upward communication Insufficient relationship focus GAP 2 Absence of customer driven standards Inadequate service leadership Poor service design GAP 3 Lack of human resource policies Failure to match supply and demand Customers not fulfilling roles GAP 4 Ineffective management of customer expectations Overpromising Inadequate horizontal communications GAP 5 Gap between customers expectation and perceptions.Arises when the consumer misinterprets the service quality

5. OVERVIEW : CUSTOMER EXPECTATION  Customers want quality that is appropriate to the price that they are prepared to pay.  Key aspects of quality for the customer include: Good design – looks and style Good functionality – it does the job well Reliable – acceptable level of breakdowns or failure Consistency Durable – lasts as long as it should Good after sales service Value for money  Value for money is especially important because in most markets there are many types of products with different levels of quality available. Thus the customer must be satisfied that the price fairly reflects the quality, meaning derive maximum benefit from the goods and services purchased.

6. QUALITY IN OPERATION  Successful management of quality requires that managers have insights on various aspects of quality.  Quality cannot be compromised for cost reduction purpose or increase profit. It must be addressed throughout the value chain which begins with supplier  Critical to Operation Manager Productivity Cost Quality  Most significant factor in determining the long run success or failure is the quality  High quality of goods and service able to provide: Competitive edge Reduce cost due to returns, rework, scrap and service upsets. Increase productivity and profit Satisfy customers

7. QUALITY IN OPERATION Quality in operation is how well the output of a manufacturing or service process conforms to the design specifications.  Quality of Design – intention of designers to include or exclude features in a product or service.  Quality of conformance- refers to the degree to which goods and services conform to the intent of the designer.  Specification – are targets and tolerances determined by designers of goods and services  Quality Control – is the means of ensuring consistency in processes to achieve conformance  Service quality – is consistently meeting or exceeding customers expectations (external focus) and service delivery performance criteria (internal focus) during all service encounters.

8. Performance - refer to the efficiency with which a product achieves its intended purpose. Features - Attributes of a product that supplement a product’s basic performance Reliability -The propensity for a product to perform consistently over its useful design life Conformance - Numerical dimensions for a product’s performance, such as capacity, speed, size, durability, colour, Durability - The degree to which a product tolerates stress or trauma without failing. Serviceability - Ease of repair Aesthetics -sensory characteristics such as taste, feel, sound, look, and smell. Perceived quality-Consumer's opinion of product's ability to fulfil his or her expectations. QUALITY IN OPERATION Some of the key dimensions of Quality are :

9. QUALITY MANAGEMENT Quality Management Processes comprises of the following :- Quality Planning The process of identifying which quality standards are relevant to the project and determining how to satisfy them. Some of the inputs are quality policy, scope statement, product description, standards and regulations Quality Assurance The process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. Quality Control The process of monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. Includes work results, operational definitions and checklists by inspection, control charts, pareto diagrams, statistical sampling and etc.

10. Quality Performance measurement Some of the common key performance index in organizations are :  Complaints per million  Defect per million  Non Conformance (NCR)  CAPA Overdue  Scar Overdue  First Pass Yield (FPY)  Recall/MRB  QAQ QUALITY MANAGEMENT

11. Companies can build a reputation for quality by gaining recognition with international quality standard such as  ISO 9000 series (Europe/EC)  Common quality standards for products sold in Europe (even if made in U.S.)  2008 updates places greater emphasis on leadership and customer requirements and satisfaction  ISO 14000 series (Europe/EC) -Environmental Standard with below core elements :  Environmental management  Auditing  Performance evaluation  Labelling  Life cycle assessment QUALITY MANAGEMENT

12. TOTAL QUALITY MANAGEMENT (TQM)  comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through on going refinements in response to continuous feedback.  commitment by management for continuous drive towards excellence in all aspects of products and services that are important to the customer, entire organization and supplier to customer  Seven Concepts of TQM  Continuous improvement  Six Sigma  Employee empowerment  Benchmarking  Just-in-time (JIT)  Taguchi concepts  Knowledge of TQM tool

13. 7 CONCEPTS OF TQM Continuous improvement Continuous improvement of all processes involving operations and work centres including suppliers and customers - People, Equipment, Materials, Procedures Six Sigma  A program designed to reduce defects, lower costs, and improve customer satisfaction.  Statistically defined of a process that is 99.9997% capable. Employee Empowerment  Getting employees involved in product and process improvements  85% of quality problems are due to process and material Benchmarking Selecting best practices to use as a standard for performance

14. 7 CONCEPTS OF TQM Just-in-time (JIT)  management system in which materials or products are produced only as demand requires.  avoid the waste associated with overproduction, waiting and excess inventory Taguchi concepts  Quality robustness  Quality loss function  Target-oriented quality Using engineering and experimental design methods to improve product and process design Knowledge of TQM tool  Tools for Generating Ideas - Check sheets,Scatter diagrams, Cause-and-effect diagrams  Tools to Organize the Data- Pareto charts, Flowcharts  Tools for Identifying Problems – Histogram,Statistical process control chart

15. Examples of 7 TQM tools Pareto Diagrams Check Sheet Cause and Effect Diagrams Scatter Diagram

16. Examples of 7 TQM tools Flowcharts Statiscal Process control Chart Histogram Upper control limit Target value Lower control limit Time

17. BENEFITS OF TQM  Better product quality.  Employees more motivated and quality conscious  Improve productivity  Reduced quality costs  Enhanced problem solving capacity  Increased market  Increased competitive advantage of the firm  Improved profitability  Good public image by providing goods and services of higher quality at lower cost to society  Employees empowerment  Enhancement of job interest and security  More training and improvement in skills  Reduced employee grievances