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Quality Management: Principles of Operations Management Chapter

This document discusses key principles and concepts related to quality management. It covers topics such as customer expectations, types of quality, total quality management principles, Deming's 14 points, the cost of quality, ISO 9000 standards, Six Sigma methodology, statistical process control, and continuous quality improvement tools. The overall purpose is to ensure that goods and services meet customer needs through effective quality policies, procedures, and management systems.

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50 views29 pages

Quality Management: Principles of Operations Management Chapter

This document discusses key principles and concepts related to quality management. It covers topics such as customer expectations, types of quality, total quality management principles, Deming's 14 points, the cost of quality, ISO 9000 standards, Six Sigma methodology, statistical process control, and continuous quality improvement tools. The overall purpose is to ensure that goods and services meet customer needs through effective quality policies, procedures, and management systems.

Uploaded by

sollar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Quality Management

Principles of Operations Management Chapter 6

Quality Management
Policies and procedures used to ensure that goods and services are produced with appropriate levels of quality to meet the needs of consumers

Types of Quality
Design quality meeting or exceeding the needs and expectations of customers Conformance quality the extent to which a process is able to meet design specifications

Quality and Profitability

Customer Expectations
Performance primary operating characteristics Features bells and whistles Reliability probability of survival Conformance degree to which a product meets standards Durability length of practical use Serviceability speed, courtesy, and competence of repair Aesthetics how a product looks, feels, sounds, tastes, or smells

Service Quality Dimensions


Reliability ability to provide what was promised, dependably and accurately Assurance knowledge and courtesy of employees that conveys trust and confidence Tangibles physical facilities and appearance Empathy degree of caring and individual attention provided to customers Responsiveness willingness to help customers and provide prompt service
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Evolution of Quality Management


Evidence of quality control in ancient history Quality departments resulting from the industrial revolution Widespread adoption during World War II Rebuilding of Japan and Japanese innovations Total Quality Management organization-wide approaches
7

Principles of Total Quality


Focus on customers and stakeholders Process focus supported by continuous improvement and learning Participation and teamwork by everyone in the organization

Deming Chain Reaction


Improve quality Costs decrease Productivity improves Increase market share with better quality and lower prices

Stay in business
Provide jobs and more jobs
9

Demings 14 Points (1 of 2)
1. Create a vision and demonstrate commitment. 2. Learn the new philosophy. 3. Understand inspection. 4. Stop making decisions purely on the basis of cost. 5. Improve constantly and forever. 6. Institute training. 7. Institute leadership.
10

Demings 14 Points (2 of 2)
8. Drive out fear. 9. Optimize the efforts of teams. 10. Eliminate exhortations. 11. Eliminate numerical quotas and M.B.O. 12. Remove barriers to pride of workmanship. 13. Encourage education and self-improvement. 14. Take action.

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Jurans Quality Trilogy


Quality planning Quality control Quality improvement Use the cost of quality (COQ) to focus attention.
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Cost of Quality
Prevention costs investments made to keep nonconforming products from occurring and reaching the customer Appraisal costs investments made to ensure conformance to requirements Internal failure costs costs due to unsatisfactory quality found before delivery to customers External failure costs costs that occur after poorquality products reach the customer
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Crosbys Absolutes of Quality Management


Quality means conformance to requirements Problems are functional in nature There is no optimum level of defects Cost of quality is the only useful measurement Zero defects is the only performance standard

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The Baldrige Framework A Systems Perspective


Organizational Profile: Environment, Relationships, and Challenges 5 Human Resource Focus 7 Business Results 3 Customer & Market Focus

2 Strategic Planning 1 Leadership

6 Process Management

4 Measurement, Analysis, and Knowledge Management

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ISO 9000:2000
Objectives
Achieve, maintain, and seek to continuously improve product quality (including services) in relationship to requirements. Improve the quality of operations to continually meet customers and stakeholders stated and implied needs. Provide confidence to internal management and other employees that quality requirements are being fulfilled and that improvement is taking place. Provide confidence to customers and other stakeholders that quality requirements are being achieved in the delivered product. Provide confidence that quality system requirements are fulfilled.
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ISO 9000 Quality Principles


Principle 1: CustomerFocused Organization Principle 2: Leadership Principle 3: Involvement of People Principle 4: Process Approach
Principle 5: System Approach to Management Principle 6: Continual Improvement Principle 7: Factual Approach to Decision Making Principle 8: Mutually Beneficial Supplier Relationships

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Six Sigma
At most 3.4 defects per million opportunities (dpmo)

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Six Sigma as a Business Philosophy


Thinking in terms of business processes and customer requirements Corporate sponsors and high level of teamwork Quantifiable measures applied to all parts of an organization Metrics that focus on business results Extensive training and project team deployment Highly qualified process improvement experts Stretch objectives for improvement
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Six Sigma Problem Solving (DMAIC)


Define Measure Analyze Improve Control

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Problem Solving Tools


Elementary statistics Advanced statistical tools Product design and reliability Measurement Process control Process improvement Implementation and teamwork
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Design for Six Sigma


Concept development
Product functionality to meet customer requirements, technological capabilities, and economic realities

Design development
Product and service performance

Design optimization
Minimize impact of variation in production and use

Design verification
Ensuring production system capability
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Control
Control the activity of ensuring conformance to requirements and taking action when necessary to correct problems and maintain stable performance. Types of variation
Common causes Special causes
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Fundamental Managerial Mistakes


1. Treating any fault, complaint, mistake, breakdown, accident, or shortage as a special cause when it actually is due to common causes. Attributing any fault, complaint, mistake, breakdown, accident, or shortage to common causes when it actually is due to a special cause.

2.

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Key Issues for Quality Control


Contract management, design control, and purchasing Inspection and testing Preventing defects and errors (poka-yoke) Metrology

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Importance of Metrology
Some variation is due to measurement error
Systematic (bias) Random

Good measurement systems have


High repeatability (low equipment variation) High reproducibility (low operator variation)

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Process Capability
Process capability the range of natural variation in a process Necessary
to predict how well a process will meet specifications, to specify technology requirements level of control needed
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Statistical Process Control


SPC methodology to identify special causes of variation and signal the need to take corrective action Applications of SPC
Establish a state of statistical control Monitor a process and signal when it goes out of control Determine process capability
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Quality Improvement
Kaizen gradual and orderly continuous improvement Kaizen blitz intense and rapid improvement activity over a short time Deming cycle
Plan, Do, Study, Act

Seven QC Tools
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