buad306 chapter 9 – management of quality chapter 10 – quality control (not in text) read this...
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Quality Defined by Business The ability of a product or service to consistently meet or exceed customer expectationsTRANSCRIPT
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BUAD306
Chapter 9 – Management of QualityChapter 10 – Quality Control (not in text)
READ THIS CHAPTER!
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Quality Defined By YOU
Examples of high quality products and services?
Examples of low quality products and services?
What do you remember more?
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Quality Defined by Business
The ability of a product or service to consistently meet or exceed customer expectations
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Dimensions of Quality
Performance – basic operating characteristics Aesthetics – how a product looks, feels, etc. Special features – “extras” Conformance – to specifications Reliability – consistency of performance Durability – how long it lasts Perceived Quality – customer’s view of quality Serviceability - service after sale/repairs Safety – risk of harm/injury
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Quality Terms
Ease of Use – how easy it is for the customer to use the product/service
Service after Use – how well the company “steps up”
Quality of Design – designing quality characteristics into a product or service
Quality of Conformance – making sure the product is produced according to the design/intent of designers
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Quality Considerations For Service Industries
Tangibles – appearances (staff, facility, etc.) Convenience – ease of availability/accessibility Reliability – perform consistently & accurately Responsiveness – how well company reacts to
unusual circumstances Timeliness – speed of service delivery/waiting
time Assurance – the knowledge level of the staff Courtesy – how well customer is treated
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Consequences of Poor Quality
Loss of business Liability - due to damages or injury Productivity – defective products can
slow down a production process Costs Diminished Reputation
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Costs of Quality
Appraisal Costs – costs of measuring, testing and analyzing
Prevention Costs – costs incurred during production design
Failure Costs – difference between what it actually costs to produce/deliver & what it would cost if there were no failures Internal Failure Costs (before)– rework, downtime External Failure Costs (after)– complaints, returns
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Quality Responsibilities
Who is responsible for quality in the organization?
Why is it important to face quality issues sooner than later?
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Ensuring Continual Quality
Design quality into the process Instill a quality mentality Continually seek new ideas and
improvements
How do you do this systematically???
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Total Quality Management
A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
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Total Quality Management
1. Customer defined quality2. Successful product design3. Utilize processes that ensure quality4. Continuous improvement - track results & improve on
them5. Encourage suppliers & distributors to embrace TQM6. All employees responsible for quality – requires training7. Utilize competitive benchmarking8. Shared problem solving – team oriented9. Top management leadership
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Six Sigma – as defined by GE “…if you can measure how many "defects"
you have in a process, you can systematically figure out how to eliminate them and get as close to "zero defects" as possible.
To achieve Six Sigma Quality, a process must produce no more than 3.4 defects per million opportunities.
An "opportunity" is defined as a chance for nonconformance, or not meeting the required specifications.
This means we need to be nearly flawless in executing our key processes.
IMPT: Read Text
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Six Sigma Concepts - DMAIC
Define – process improvement goals Measure – baseline data Analyze – to verify cause Improve – based on analysis Control – transition into production &
monitor continuously
IMPT: Read Text
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Example: Trabant
Is Trabant an example of efficiency? Are there issues at Trabant? What solutions do you have?
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Problem Solving & Quality
Variety of Techniques – all generally following the same “steps:”Define problemDevelop measures/standardsAnalyze the situationGenerate solutionsImplement solutionMonitor
IMPT: Read Text
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Basic Quality Tools
Check sheets Flowcharts Scatter diagrams Histograms Pareto analysis Control charts Cause-and-effect diagrams Run Chart
IMPT: Read Text
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Generating New Ideas
Brainstorming Interviewing Benchmarking 5W2H
What, Why, Where, When, Who, How, How Much
IMPT: Read Text
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Benchmarking Steps
Analysis using quality tools Identify a critical process that needs
improvement Identify an organization that excels in
the process Study their benchmark activity Analyze data (compare/contrast) Improve process
IMPT: Read Text
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Chapter 10
Quality Control
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Quality Scenarios
Toner Cartridges Subway Subs Taco Bell Tacos
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Quality Control
A process that measures output relative to a standard and acts when outputs don’t meet the standard
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Phases of Quality Assurance
Acceptancesampling
Processcontrol
Continuousimprovement
Inspectionbefore/afterproduction
Correctiveaction duringproduction
Quality builtinto theprocess
The leastprogressive
The mostprogressive
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Inspection
How Much/How Often Why?? Where/When Centralized vs. On-site
Inputs Transformation Outputs
Acceptancesampling
Processcontrol
Acceptancesampling
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Inspection Points
Production Inputs Finished products Before a costly
operation Before an irreversible
process Before a covering
process
Services Restaurants –
appearance, waiting time, food quality, accuracy
Retail – inventory, pricing, appearance, waiting time
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Process Control
A statistical procedure using control charts to see if any part of the production process is not functioning properly and could cause poor quality.
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Process Control Steps
Define Measure Compare to standard Evaluate Take corrective action Evaluate corrective action
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Variations and Control
Assignable Variation - A variation whose source can be identified Examples: fatigue, equipment
adjustments, carelessness, interruptions
Random Variation - Natural variations in the output of processExamples: Countless minor factors
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Data Evaluated
Attribute Data (P & C Charts)• Product characteristic evaluated with a
discrete choice: Good/bad, yes/no Variable Data (Control Charts)
• Product characteristic that can be measured on a continuous scale: Length, size, weight, height, time, velocity
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Control Charts
A time-ordered plot of sample statistics, used to distinguish between random and nonrandom variability
Compared against control limitsUpper control limitsLower control limits
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Process Control Charts
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL
Sample number
Mean
Out ofcontrol
Normal variationdue to chance
Abnormal variationdue to assignable sources
Abnormal variationdue to assignable sources
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Process is In Control When…
No sample points are outside limits Most points near process average Equal number of points above &
below centerline Points appear randomly distributed