Presentation on theme: "Roberta Russell & Bernard W. Taylor, III"— Presentation transcript:
1 Roberta Russell & Bernard W. Taylor, III Chapter 3Quality ManagementOperations Management - 5th EditionRoberta Russell & Bernard W. Taylor, III
2 Meaning of Quality Webster’s Dictionary American Society for Quality Degree of excellence of a thingAmerican Society for QualityTotality of features and characteristics that satisfy needsGoogle’s Definition?Are there different perspectives?
3 Meaning of Quality: Consumer’s Perspective Fitness for useHow well product or service does what it is supposed toQuality of designDesigning quality characteristics into a product or serviceA Mercedes sports car and a Ford truck are equally “fit for use,” but with different design dimensions
4 Dimensions of QualityWhat are some of the dimensions of quality for a manufactured product?What about for a service?Do they differ?If yes, should they?If no, why not?
5 Dimensions of Quality: Manufactured Products PerformanceBasic operating characteristics of a product; how well a car handles or its gas mileageFeatures“Extra” items added to basic features, such as a leather interior in a carReliabilityProbability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years
6 Dimensions of Quality: Manufactured Products (cont.) ConformanceDegree to which a product meets pre–established standardsDurabilityHow long product lasts before replacementWhat’s the life expectancy of the tires on your car?ServiceabilityEase of getting repairs, speed of repairs, courtesy and competence of repair personiPhone, anyone?
7 Dimensions of Quality: Manufactured Products (cont.) AestheticsHow a product looks, feels, sounds, smells, or tastesSafetyAssurance that customer will not suffer injury or harm from a product; an especially important consideration for automobilesPerceptionsSubjective perceptions based on brand name, advertising, etc.
8 Dimensions of Quality: Service Time and TimelinessHow long must a customer wait for service, and is it completed on time?Is an overnight package delivered overnight?CompletenessIs everything customer asked for provided?Is a mail order from a catalogue company complete when delivered?
9 Dimensions of Quality: Service (cont.) CourtesyHow are customers treated by employees?Are catalogue phone operators nice and are their voices pleasant?ConsistencyIs the same level of service provided to each customer each time?Is your newspaper delivered on time every morning?
10 Dimensions of Quality: Service (cont.) Accessibility and convenienceHow easy is it to obtain service?Does a service representative answer you calls quickly?AccuracyIs the service performed right every time?Is your bank or credit card statement correct every month?ResponsivenessHow well does the company react to unusual situations?How well is a telephone operator able to respond to a customer’s questions?What about Internet-based service – does it differ?
11 Meaning of Quality: Producer’s Perspective Quality of ConformanceMaking sure a product or service is produced according to designIf new tires do not conform to specifications, they wobbleIf a hotel room is not clean when a guest checks in, the hotel is not functioning according to specifications of its design
12 Meaning of Quality: A Final Perspective Consumer’s and producer’s perspectives depend on each otherConsumer’s perspective: PRICEProducer’s perspective: COSTConsumer’s view must dominateWhy?
13 Producer’s Perspective Consumer’s Perspective Meaning of QualityFitness forConsumer UseProducer’s PerspectiveConsumer’s PerspectiveQuality of ConformanceConformance to specificationsCostQuality of DesignQuality characteristicsPriceMarketingProductionMeaning of Quality
14 Total Quality Management Commitment to quality throughout the organizationPrinciples of TQMCustomer-orientedLeadershipStrategic planningEmployee responsibilityContinuous improvementCooperationStatistical methodsTraining and education
15 Deming Wheel: PDCA Cycle 1. PlanIdentify problem and develop plan for improvement.2. DoImplement plan on a test basis.3. Study/CheckAssess plan; is it working?4. ActInstitutionalize improvement; continue cycle.
16 Quality Improvement and Role of Employees Should employees be involved?Participative problem solvingEmployees involved in quality managementEvery employee has undergone extensive training to provide quality service to Disney’s guests
17 Quality Circle Organization Training Presentation ImplementationMonitoringSolutionProblem resultsProblem AnalysisCause and effectData collection and analysisProblem IdentificationList alternativesConsensusBrainstormingTrainingGroup processesData collectionProblem analysisOrganization8-10 membersSame areaSupervisor/moderator
18 Strategic Implications of TQM Strong leadershipGoals, vision, or missionOperational plans and policiesMechanism for feedback
19 Six SigmaA process for developing and delivering near perfect products and servicesMeasure of how much a process deviates from perfection3.4 defects per million opportunitiesChampionAn executive responsible for project success
20 Black Belts and Green Belts Project leaderMaster Black BeltA teacher and mentor for Black BeltsGreen BeltsProject team members
21 Six Sigma: DMAIC DEFINE MEASURE ANALYZE IMPROVE CONTROL 67,000 DPMO cost = 25% of sales3.4 DPMO
22 TQM in Service Companies Principles of TQM apply equally well to services and manufacturingServices and manufacturing companies have similar inputs but different processes and outputsServices tend to be labor intensiveService defects are not always easy to measure because service output is not usually a tangible item
23 Quality Attributes in Service Benchmark“Best” level of quality achievement one company or companies seek to achieveTimelinessHow quickly a service is provided“quickest, friendliest, most accurate service available.”
24 Cost of Quality Cost of Achieving Good Quality Cost of Poor Quality Prevention costsCosts incurred during product designAppraisal costsCosts of measuring, testing, and analyzingCost of Poor QualityInternal failure costsInclude scrap, rework, process failure, downtime, and price reductionsExternal failure costsInclude complaints, returns, warranty claims, liability, and lost sales
25 Quality Management and Productivity Ratio of output to inputYield: a measure of productivityYield=(total input)(% good units) + (total input)(1-%good units)(% reworked)orY=(I)(%G)+(I)(1-%G)(%R)
26 Product Cost Product Cost where: Kd = direct manufacturing cost per unitI = inputKr = rework cost per unitR = reworked unitsY = yield
27 Computing Product Yield for Multistage Processes Y = (I)(%g1)(%g2) … (%gn)where:I = input of items to the production process that will result in finished productsgi = good-quality, work-in-process products at stage i
28 Quality–Productivity Ratio QPRProductivity index that includes productivity and quality costsQPR =(non-defective units)(input) (processing cost) + (defective units) (reworked cost)
30 Pareto Analysis NUMBER OF CAUSE DEFECTS PERCENTAGE Poor design 80 64 % Wrong part dimensions 16 13Defective parts 12 10Incorrect machine calibration 7 6Operator errors 4 3Defective material 3 2Surface abrasions 3 2%
31 Percent from each cause Causes of poor qualityMachine calibrationsDefective partsWrong dimensionsPoor DesignOperator errorsDefective materialsSurface abrasions10203040506070(64)(13)(10)(6)(3)(2)Pareto Chart
33 Check Sheet COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002REPAIR TECHNICIAN: BobTV SET MODEL 1013Integrated Circuits ||||Capacitors |||| |||| |||| |||| |||| ||Resistors ||Transformers ||||CommandsCRT |
36 Control Chart Number of defects Sample number 18 12 6 3 9 15 21 24 2 4 101416Sample numberNumber of defectsUCL = 23.35LCL = 1.99c = 12.67
37 Cause-and-Effect Diagram QualityProblemOut of adjustmentTooling problemsOld / wornMachinesFaultytesting equipmentIncorrect specificationsImproper methodsMeasurementPoor supervisionLack of concentrationInadequate trainingHumanDeficienciesin product designIneffective qualitymanagementPoor process designProcessInaccuratetemperaturecontrolDust and DirtEnvironmentDefective from vendorNot to specificationsMaterial-handling problemsMaterials
38 American Customer Satisfaction Index (ACSI) Measures customer satisfactionEstablished in 1994Web site:Who do you think is top in ‘Breweries’?Automobiles?