1. Bus 2411 Production Operations Management Quality Management U. Akinc Quality Management U. Akinc

2. Bus 2412 Quality Management Quality is defined as “fitness” for intended use (Joseph Juran) Dimensions: l Technological l Psychological l Time Oriented l Contractual Ethical Quality is defined as “fitness” for intended use (Joseph Juran) Dimensions: l Technological l Psychological l Time Oriented l Contractual Ethical

3. Bus 2413 Six Sigma The Six Sigma's Breakthrough Strategy is a disciplined method of using extremely rigorous data-gathering and statistical analysis to pinpoint sources of errors and ways of eliminating them Six Sigma and General Electric Six Sigma and General Electric See Six Sigma and General ElectricSix Sigma and General Electric

4. Bus 2414 TQM Total Quality Management: The management of quality throughout the organization.. at all levels and across all functions TQM is both a comprehensive management philosophy and a collection of tools and approaches for its implementation… Total Quality Management: The management of quality throughout the organization.. at all levels and across all functions TQM is both a comprehensive management philosophy and a collection of tools and approaches for its implementation…

5. Bus 2415 TQM Principles l Customer Defines Quality l Top management’s leadership is essential l Quality is a strategic issue l Quality is responsibility of all employees l All functions must focus on cont. impr. l Quality problems are solved via cooperation l Use of statistical and other tools l Training and education is critical l Customer Defines Quality l Top management’s leadership is essential l Quality is a strategic issue l Quality is responsibility of all employees l All functions must focus on cont. impr. l Quality problems are solved via cooperation l Use of statistical and other tools l Training and education is critical

6. Bus 2416 Specific TQM Approaches l Continuous Improvement (Kaizen) Piecemeal improvement of existing processes Important components: –Process Selection –Process Study –Training, Empowerment –Leadership –Quality circles is a common way of implementation l Continuous Improvement (Kaizen) Piecemeal improvement of existing processes Important components: –Process Selection –Process Study –Training, Empowerment –Leadership –Quality circles is a common way of implementation What to focus on? What tasks, sub-processes? In tools and methods of improvement Encouragement, reward system

7. Bus 2417 Specific TQM Approaches l Business processes re-engineering Fundamental rethinking and redesign of business processes that deliver quality. –Focus on outcome not on existing tasks –Understand the current process –Remove complexity –Innovation is central –Benchmarking l Business processes re-engineering Fundamental rethinking and redesign of business processes that deliver quality. –Focus on outcome not on existing tasks –Understand the current process –Remove complexity –Innovation is central –Benchmarking Quantum leap Think critically about the process Learn from others

8. Bus 2418 Edwards Deming’s Chain Reaction l Improve Quality l Cost Decreases l Productivity Improves l Increase or maintain market share l Stay in Business l Provide jobs and more jobs l Improve Quality l Cost Decreases l Productivity Improves l Increase or maintain market share l Stay in Business l Provide jobs and more jobs

9. Bus 2419 Deming’s 14 Points l 1. Management Commitment l 2. Learn the New Philosophy l 3. Understand Inspection l 4. End Price Tag Decisions l 5. Improve Constantly l 6. Institute Training l 7. Institute Leadership l 1. Management Commitment l 2. Learn the New Philosophy l 3. Understand Inspection l 4. End Price Tag Decisions l 5. Improve Constantly l 6. Institute Training l 7. Institute Leadership Be Credible Everybody Price is not the sole criterion

10. Bus 24110 Deming’s 14 Points (Cont’d) l 8. Drive Out Fear l 9. Optimize Team Efforts l 10. Eliminate Exhortations l 11. Eliminate Quotas (MBO) l 12. Remove Barriers to Pride in Workmanship l 13. Institute Education l 14. Take Action l 8. Drive Out Fear l 9. Optimize Team Efforts l 10. Eliminate Exhortations l 11. Eliminate Quotas (MBO) l 12. Remove Barriers to Pride in Workmanship l 13. Institute Education l 14. Take Action Create trust, a climate for innovation Not Targets but direction For everyone

11. Bus 24111 Management of Quality l Quality of Design: Resolution of the many trade offs among dimensions of quality l Quality of Conformance: Degree to which design specs are met l Time Oriented Dimensions Availability Reliability Maintainability l Field Service: Repair, Replacement, Service l Quality of Design: Resolution of the many trade offs among dimensions of quality l Quality of Conformance: Degree to which design specs are met l Time Oriented Dimensions Availability Reliability Maintainability l Field Service: Repair, Replacement, Service

12. Bus 24112 Quality Management model

13. Bus 24113 A Quality management Paradigm l Define Quality Attributes l Develop Measuring Scales l Set Quality Standards l Establish an Inspection Plan l Monitor, Discover and Correct Causes of Poor Quality l Define Quality Attributes l Develop Measuring Scales l Set Quality Standards l Establish an Inspection Plan l Monitor, Discover and Correct Causes of Poor Quality

14. Bus 24114 Quality Policy Design Quality Level of Quality Perceived Value and Cost Value and Cost

15. Bus 24115 Quality Policy ( Juran ) Conformance Quality Conformance Quality Level of Conformance Costs: Avoidable Unavoidable Costs: Avoidable Unavoidable 100% 0%0% 0%0%

16. Bus 24116 Quality Policy ( Crosby ) Conformance Quality Conformance Quality Level of Conformance Costs: Avoidable Unavoidable Costs: Avoidable Unavoidable 100% 0%0% 0%0%

17. Bus 24117 Quality Control Managing Quality of Conformance Quality Control System l A. Inspection points –Receiving Inspection –Process Control –Final Inspection Managing Quality of Conformance Quality Control System l A. Inspection points –Receiving Inspection –Process Control –Final Inspection

18. Bus 24118 Quality Control (cont’d) l B. Type of Measurements –Measurement by Attributes –Measurement by Variables l C. Amount of Inspection –100% Inspection –Sampling inspection l D. Agent of Inspection –QC Department –Operator l B. Type of Measurements –Measurement by Attributes –Measurement by Variables l C. Amount of Inspection –100% Inspection –Sampling inspection l D. Agent of Inspection –QC Department –Operator

19. Bus 24119 Quality Control Statistical Quality Control Statistical Quality Control Attributes Variables Attributes Variables Acceptance Sampling Acceptance Sampling Process Control Process Control

20. Bus 24120 Statistical Process Control (SPC) l Assignable Causes of Variation l Un-assignable Causes of Variation A process is considered in control when it only exhibits variation due to un-assignable causes. When the variation exceeds pre-established limits, suspicion arises that there is an assignable (correctable) cause and hence the process is deemed out of control. l Assignable Causes of Variation l Un-assignable Causes of Variation A process is considered in control when it only exhibits variation due to un-assignable causes. When the variation exceeds pre-established limits, suspicion arises that there is an assignable (correctable) cause and hence the process is deemed out of control.

21. Bus 24121 Control Charts l X-Bar Charts – Controlling the Central value l R Charts– Controlling the spread of the values l P- Charts – Controlling the proportion defective l C- Charts – Controlling the number of defects l X-Bar Charts – Controlling the Central value l R Charts– Controlling the spread of the values l P- Charts – Controlling the proportion defective l C- Charts – Controlling the number of defects Mean UCL LCL x x x x x x x x x x x