Presentation on theme: "Chapter 9/11 Introduction to Quality Total Quality Management"— Presentation transcript:
1 Chapter 9/11 Introduction to Quality Total Quality Management Operations Management MBA105Williams J. Srevenson 7th Edition
2 Learning Objectives Define quality. Importance of quality. Determinants of quality.Costs & quality.Quality awards.quality gurusTQMQuality tools
3 Quality Management What does the term quality mean? Quality is the ability of a product or service to consistently meet or exceed customer expectations.degree of excellence of a thing.Totality of features and characteristics that satisfy needs
4 Quality Cost and Productivity Vs. Quality USA Organizations Focus in Cost and productivity (2nd war – mid 1980s)WHY AMERICAN ORGANIZATIONS BEHAVIOR CHANGE TWARD QUALITY??
5 Evolution of Quality Management Fredrick Taylor (Scientific Management)Statistical process control chartsTables for acceptance sampling1940’s - Statistical sampling techniques1950’s - Quality assurance/TQC (DEMING)1960’s - Zero defects1970’s - Quality assurance in services
6 Quality Assurance vs. Strategic Approach Emphasis on finding and correcting defects before reaching marketStrategic ApproachProactive, focusing on preventing mistakes from occurringGreater emphasis on customer satisfaction
7 Dimension of Quality Which type of fuel you prefer to your car MOMTAZ or GAIDWhich Car you preferCAMRY OR LUMINAFULL OPTIONS OR NORMAL OPTIONDid you prefer health centre or private clinic
8 Dimensions of Quality Performance Features Reliability basic operating characteristics of a product; how well a car is handled.Features“extra” items added to basic features, such as a stereo CD or 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
9 Dimensions of Quality (Cont’d) Conformancedegree to which a product meets pre–established standardsDurabilityhow long product lasts before replacementServiceabilityease of getting repairs, speed of repairs, courtesy and competence of repair person
10 Dimensions of Quality (Cont’d) 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, and the like
13 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?Completeness:Is everything customer asked for provided?Is a mail order from a catalogue company complete when delivered?
14 Dimensions of Quality: Service Courtesy:How 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?
15 Dimensions of Quality: Service 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?
16 Dimensions of Quality: Service ResponsivenessHow well does the company react to unusual situations?How well is a telephone operator able to respond to a customer’s questions?
17 Challenges with Service Quality Customer expectations often changeDifferent customers have different expectationsEach customer contact is a “moment of truth”Customer participation can affect perception of qualityFail-staffing must be designed into the system
18 Quality Gurus Walter Shewart W. Edwards Deming Joseph M. Juran In 1920s, developed control chartsIntroduced the term “quality assurance”W. Edwards DemingDeveloped courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliersAfter the war, began teaching statistical quality control to Japanese companiesJoseph M. JuranFollowed Deming to Japan in 1954Focused on strategic quality planning
19 Quality Gurus (cont.) Armand V. Feigenbaum Philip Crosby In 1951, introduced concepts of total quality control and continuous quality improvementPhilip CrosbyIn 1979, emphasized that costs of poor quality far outweigh the cost of preventing poor qualityIn 1984, defined absolutes of quality management—conformance to requirements, prevention, and “zero defects”Kaoru IshikawaPromoted use of quality circlesDeveloped “fishbone” diagramEmphasized importance of internal customer
20 Deming’s 14 Points Create constancy of purpose Adopt philosophy of preventionCease mass inspectionSelect a few suppliers based on qualityConstantly improve system and workersInstitute worker trainingInstill leadership among supervisorsEliminate fear among employeesEliminate barriers between departmentsEliminate slogansRemove numerical quotasEnhance worker prideInstitute vigorous training and education programsDevelop a commitment from top management to implement above 13 points
21 Determinants of Quality (cont’d) Quality of designIntension of designers to include or exclude features in a product or service:Different car models with different featuressizeAppearanceRoominessFuel economyComfortMaterial used
22 Determinants of Quality (cont’d) Quality of ConformanceMaking sure a product or service is produced according to design:if 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
23 Determinants of Quality (cont’d) Ease of UseInstruction manualsGuide the customer for proper usedgood labelingService after Delivery
24 The Consequences of Poor Quality Loss of businessLiabilityProductivityCosts
25 Benefits of Good Quality Organizations will benefit in different way:Enhance reputationIncrease market shareGreater customer loyaltyLower liability CostFewer complainsLower production costHigher profits
26 Responsibility for Quality Top managementDesignProcurementProduction/operationsQuality assurancePackaging and shippingMarketing and salesCustomer service
27 Costs of QualityFailure Costs - costs incurred by defective parts/products or faulty services.Internal Failure CostsCosts incurred to fix problems that are detected during the production.Defective materialsIncorrect machine settingFaulty equipmentCarelessnessWrong procedure
28 Costs of Quality External Failure Costs All costs incurred to fix problems that are detected after the product/service is delivered to the customer.Warranty workHandling of complainsReplacementLiability
29 Costs of Quality (continued) Appraisal CostsCosts of activities designed to ensure quality or uncover defectsCost of inspectorTestingTest equipmentLabsField testing
30 Costs of Quality (continued) Prevention CostsCost of preventing defects form occurringPlanning and adminstrationWorking with vendorsTrainingQuality control procedures
31 Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.Continuous ImprovementInvolvement of EveryoneCustomer Satisfaction
32 Elements of TQM Continual improvement (never ending) Competitive benchmarkingEmployee empowermentTeam approachDecisions based on factsKnowledge of toolsSupplier qualityChampionQuality at the sourceSuppliers
33 Continuous Improvement Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.Kaizen: Japanese word for continuous improvement.
34 Quality at the SourceThe philosophy of making each worker responsible for the quality of his or her work.
35 Process Improvement and Tools Process improvement - a systematic approach to improving a processProcess mappingAnalyze the processRedesign the processToolsThere are a number of tools that can be used for problem solving and process improvementTools aid in data collection and interpretation, and provide the basis for decision making
37 Quality Tools Flow Chart : Cause and Effect displays the steps in a process showing order and relationships helps in understanding of that process and identifies potential weaknesses i.e. poor performanceCause and EffectAlso know as fishbone or Ishikawa
42 Check Sheet COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002REPAIR TECHNICIAN: BobTV SET MODEL 1013Integrated Circuits ||||Capacitors |||| |||| |||| |||| |||| ||Resistors ||Transformers ||||CommandsCRT |
47 Control Chart970980990100010101020123456789101112131415UCLLCL
48 Cause-and-Effect Diagram Figure 9.12QualityProblemOut of adjustmentTooling problemsOld / wornMachinesFaultytesting equipmentIncorrect specificationsImproper methodsMeasurementPoor supervisionLack of concentrationInadequate trainingHumanDeficienciesin product designIneffective qualitymanagementPoor process designProcessInaccuratetemperaturecontrolDust and DirtEnvironmentDefective from vendorNot to specificationsMaterial-handling problemsMaterials