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Unit 4 QM

This document discusses quality planning and control. It aims to deliver products and services that meet or exceed specifications to gain a competitive advantage through satisfied customers. Quality is defined from both the operation and customer perspective. Gaps between expectations and perceptions can be addressed through quality planning steps like defining characteristics, setting standards, and controlling quality through sampling and inspection. The goal is meeting customer expectations to maximize profits and performance.

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Ashlay Baichoo
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94 views39 pages

Unit 4 QM

This document discusses quality planning and control. It aims to deliver products and services that meet or exceed specifications to gain a competitive advantage through satisfied customers. Quality is defined from both the operation and customer perspective. Gaps between expectations and perceptions can be addressed through quality planning steps like defining characteristics, setting standards, and controlling quality through sampling and inspection. The goal is meeting customer expectations to maximize profits and performance.

Uploaded by

Ashlay Baichoo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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QUALITY PLANNING

AND CONTROL
AIM
• Seeks to deliver products and services at their required specification or above it.
IMPORTANCE OF QUALITY
• Quality: a key concern of almost all organizations.
• High quality goods and services can give an organization a considerable competitive edge.
• Good quality reduces the cost of rework, scrap and returns.
• Generates satisfied customers.
• In the long run quality is the most important single factor affecting an organization’s
performance relative to its competitors.
Supply Consistent delivery of products Demand
  and services at specification or  
above

The operation The market


   
Customer requirements
Operation resources

Required quality of products and


services
Various ways in which quality improvements can affect other aspects of operations
performance
(i) Quality up – Image up – Price competition down – Revenue up – Profit up.

(ii)Quality up – Service costs down – Operation costs down – Profits up.

(iii)Quality up – Sales volume up – Revenue up – Profits up.

(iv)Quality up – Inspection and test costs down – Operation costs down – profits up.
(i) Quality up – Rework and scrap costs down – Productivity up – Operation costs down –
Profits up.

(ii)Quality up – Complaint warranty costs down – Productivity up – Operation costs down –


Profits up.

(iii)Quality up – Processing time down – Capital costs down – Profits up.


QUALITY THE OPERATION’S
VIEW:
• Quality is conformance to customer’s expectations. Need to meet a clear specification
(characteristics).
QUALITY – THE CUSTOMER’S
VIEW:
• Quality needs to be understood from the customer’s point of view. (what he/she perceives to
be).
1.RECONCILING THE TWO
VIEWS:
• Degree of fit between customer’s expectations and customer perception of the
product or service.

1) Expectations > Perceptions: Perceived quality poor.

2) Expectations = Perceptions: (satisfied).

3) Expectations < Perceptions. Perceived quality good (Very satisfied)


THE CUSTOMER’S DOMAIN

 Previous experiences

 Word-of-mouth communications

 Image of product or service


• This leads to

Customer’s expectations concerning a product or service and


customer’s own specifications of quality
• This leads to perceived quality, i.e. customer’s perceptions concerning the product or
service.
THE OPERATION’S DOMAIN:

1.Management’s concept of the product or service.

2.Organization’s specification of quality.

3.The actual product or service.


GAP 1: THE CUSTOMER’S SPECIFICATION-
OPERATION’S SPECIFICATION GAP
• Mismatch between the organization’s own internal quality specification
and that expected by the customer.
GAP 2: THE CONCEPT- SPECIFICATION GAP

• The product or service concept and the way the organization has
specified the quality of the product or service internally e.g. concept of a
car energy- efficient , while addition of a catalytic converter adds to cost
+ less energy- efficient.
GAP 3: THE QUALITY SPECIFICATION- ACTUAL QUALITY GAP

• Mismatch between actual quality of service/product provided and


internal quality specification e.g. for a car, gap between doors and body
be less than 7 mm. due to inadequate equipment it is 9 mm.
GAP 4: ACTUAL QUALITY- COMMUNICATED IMAGE GAP:

• Gap between the organization’s external communications or market


image and actual quality of product/service. Advertising campaign and
what is given. Important for managers to close the gaps. If not it will
lead to a mismatch between expectations and perceptions.
• Gap 1: Marketing, product/service development.

• Gap 2: marketing, operations, product/service development.

• Gap 3: Operations

• Gap 4: Marketing
STEPS IN THE QUALITY
PLANNING AND CONTROL
ACTIVITY
STEP 1: DEFINE THE QUALITY
CHARACTERISTICS
• Much of the ‘quality’ of a product or service is specified in its design.

• These consequences for quality planning and control of the design are called the
quality characteristics of the product or service.
CHARACTERISTICS INCLUDE:

• Functionality: how well the product or service does its job. Performance and
features.

• Appearance: aesthetic appeal, look, feel, sound, smell.

• Reliability: consistency of the product’s or service’s performance over time, or the


average time for which it performs within its tolerated band of performance.
• Durability: the total useful life of the product or service, assuming occasional repair
or modification.

• Recovery: the ease with which problems with the product or service can be rectified
or resolved.

• Contract: the nature of the person-to-person contact which might take place e.g.
courtesy, empathy, sensitivity and knowledge of contact staff.
STEP 2: DECIDE HOW TO MEASURE EACH CHARACTERISTIC

• These characteristics must be defined in such a way as to enable them to be


measurable and then controlled.

• Variables: are those that can be measured on a continuously variable scale e.g.
length, diameter, weight or time.

• Attributes: Those which are assessed by judgement and are ok, not ok. Two states,
right/wrong.
STEP 3: SET QUALITY
STANDARDS
• A quality standard against which it can be checked to indicate whether good or bad
performance.

• The quality standard is that level of quality which defines the boundary between
acceptable and unacceptable.

• The quality standards need to be appropriate to the expectations of customers.


STEP 4: CONTROL QUALITY AGAINST THESE STANDARDS

• Check that the products or services conform to those standards.


Where in the operation should they check that it is conforming to standards?

• Identify the critical control points at which the service, products or processes need to
be checked to ensure that the product or service will conform to specification.
(i) At the start of the process:

• The incoming transformed resources.


(ii) During the process;
• At any stage or indeed all stages critical points where inspection might be important.
• Before a particularly costly part of the process.
• Before a series of processes during which checking might be difficult.
• Immediately after part of the process with a high defective rate or a fail point.
• Before a part of the process that might conceal previous defects or problems.
• Before a ‘point of no return’. After which rectification and recovery might be
impossible.
• Before potential damage or distress might be caused.
• Before a change to functional responsibility.
• To ensure that the product or service conforms to its specification or that customers
are satisfied with service they have received.
Should they check every product or service or take a sample?
• How many of the products or services to sample:
• Reasons why every product produced or every service being delivered is not checked.
(i) It might be dangerous to inspect the whole item or every constituent part. e.g. a sample of blood is
taken, tested and conclusion drawn.

(ii) The checking of every single product or every customer might destroy the product or interfere with
the service. E.g. testing the life of light bulb, head waiter to check whether his customers are enjoying
the meal every 30 seconds.

(iii) Time-consuming and costly : High-volume plastic moulding machine, feelings of every bus
commuter in a busy city.
 
• Why 100% inspection does not guarantee that all defects or
problems would be identified?
I. Making the checks may be inherently difficult, e.g a doctor undertaking all the
correct testing procedures to check for a particular disease may not necessarily
diagnose it.

II. Staff may become fatigued over a period of time, when inspecting repetitive items
where it is easy to make mistakes.

III. Quality measures may be unclear. Staff not knowing precisely what to look for.

IV. Wrong information may be given to customers


TYPE I ERROR
• Those which occur when a decision was made to do something and the situation did
not warrant it.
TYPE II ERROR
• Those which occur when nothing was done, yet a decision to do something should
have been taken as the situation did indeed warrant it.
ROAD CONDITIONS
DECISION Unsafe Safe
CROSS Type I error Correct decision
WAIT Correct decision Type II error
KINDS OF SAMPLE PROCEDURE

• Two methods
(I) STATISTICAL PROCESS CONTROL (SPC)

• Sampling the process during the production of the goods or delivery of


the service. Based on this sample, decisions are made as to whether the
process is ‘in control’ or not.
(II) ACCEPTANCE SAMPLING
• More concerned with whether to regard an incoming or outgoing batch
of materials or customers is acceptable or not.

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