1. Quality in Manufacturing and Service Systems
Chapter 2
Quality in Manufacturing and Service Systems
Slide 2.1 1

2. Growth of Modern Quality Management
Manufacturing
quality
Improved
product designs
Service
Performance
excellence
Slide 2.2 2

3. Key Idea
As consumer expectations have risen, a focus on quality has permeated other key sectors of the economy, most notably health care, education, not-for-profits, and government.
Slide 2.3

4. Quality in Manufacturing System Functions (1 of 2)
Marketing and sales
Responsible for determining customer needs and expectations
Product design and engineering
Responsible for developing technical specifications for products and processes determined by the marketing function
Purchasing and receiving
Responsible for procurement
Production planning and scheduling
Responsible for specifying long-term and short-term production requirements for filling customer orders and meeting anticipated demands
Manufacturing and assembly
Responsible that the product is made correctly
Tool engineering
Responsible for designing and maintaining tools used in manufacturing inspection
Slide 2.4 3

5. Quality in Manufacturing System Functions (2 of 2)
Industrial engineering and process design
Responsible for working with product design engineers to develop realistic specifications, appropriate technologies, equipment, work methods, and a smooth production flow
Finished goods inspection and test
Judge the quality of manufacturing
Packaging, shipping, and warehousing
Protect the quality of goods after manufacturing
Installation and service
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6. Relationships in a Typical Manufacturing System (Fig.2.1)
Slide 2.6

7. Quality in Marketing
Marketing and sales personnel are responsible for determining the needs and expectations of consumers.
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8. Quality in Product Design
Product design and engineering functions develop technical specifications for products and production processes to meet the requirements determined by the marketing function.
Slide 2.8

9. Quality in Purchasing
A purchasing agent should not simply be responsible for low-cost procurement, but should maintain a clear focus on the quality of purchased goods and materials.
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10. Quality in Production Planning & Scheduling
Poor quality often results from time pressures caused by insufficient planning and scheduling.
Slide 2.10

11. Quality in Manufacturing and Assembly
Both technology and people are essential to high-quality manufacturing.
Slide 2.11

12. Quality in Production Planning & Scheduling
Poor quality often results from time pressures caused by insufficient planning and scheduling.
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13. Quality in Process Design
Manufacturing processes must be capable of producing output that meets specifications consistently.
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14. Quality in Finished Goods Inspection and Testing
The purposes of final product inspection are to judge the quality of manufacturing, to discover and help to resolve production problems that may arise, and to ensure that no defective items reach the customer.
If quality is built into the product, final inspection should be used for auditing and testing
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15. Quality in Installation and Service
Service after the sale is one of the most important factors in establishing customer perception of quality and customer loyalty.
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16. Quality in Business Support Functions for Manufacturing
General management
Finance and accounting
Human resource management
Quality assurance
Legal services
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17. Quality in Services
Service is defined as “a social act which takes place in direct contact between the customer and representatives of the service company.”
Examples: Hospitals
Law firms
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18. Types of Services
Core services - primary means of creating customer satisfaction
Facilitating services - enhance the value of core services
American Management Association estimates that poor customer service accounts for 2/3 of the portion a company’s customers are lost annually
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19. Critical Differences Between Service and Manufacturing
Customer needs more difficult to identify and measure
Output is intangible
Services are produced and consumed simultaneously
Customers are often involved in actual process
Services are more labor-intensive
Manufacturing is more equipment intensive
Services handle large numbers of transactions
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20. Higher Education as a Production System
Design and
Redesign
Consumer
research
Suppliers:
families, high
schools, colleges,
business
Customers:
business, families,
society, students
Inputs:
students
faculty
Processes
Teaching, counseling,
scientific research
Outputs:
able students
new knowledge
Slide 2.20 9

21. Key Dimensions of Service Quality
Time
Timeliness
Completeness
Courtesy
Consistency
Accessibility and convenience
Accuracy
Responsiveness
Slide 2.21 10

22. Key Service Attributes
Intangible output
Simultaneous production and consumption
Customer involvement
Labor intensity
High volumes of transactions
Slide 2.22 11

23. Service System Quality: Two Important Components
Employees
Information technology
Slide 2.23 12