chapter 09 pom

8/17/2019 Chapter 09 Pom

1/43

Management ofQuality

Chapter 9

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc !ll rights reser"e#


2/43

Chapter 9: Learning Objectives

You should be able to:1. Dene the term quality as it relates to products and

as it relates to services

2. Explain why quality is important and the

consequences of poor quality. !dentify the determinants of quality

". Distinguish the costs associated with quality

#. $ompare the quality awards

%. Discuss the philosophies of quality gurus

&. Descri'e (QM). *ive an overview of pro'lem solving

+. *ive an overview of process improvement

1,. Descri'e and use various quality tools

Instructor Slides 9-2


3/43

Quality Management

Quality

(he a'ility of a product or serviceto consistently meet or exceed

customer expectations



4/43

Dimensions of roduct Quality

erformance! main characteristics of theproduct

"esthetics! appearance- feel- smell- taste

#pecial features! extra characteristics

Conformance! how well the product conforms todesign specications

$eliability! consistency of performance

Durability! the useful life of the producterceived %uality! indirect evaluation of quality

#erviceability! handling of complaints or repairs



5/43

Dimensions&'(amples

erformance! Everything wors/ 0it and 0inish-ride- handling -acceleration

"esthetics! Exterior and !nterior design

#pecial features! $onvenience/ lacement ofgauges

igh tech/ *3 system

3afety/ anti4sid- air'ags

Conformance! car matches manufacturer5s

specication

$eliability! !nfrequent need for repair

Durability! useful life in miles- resistant to rust

erceived %uality! top rated#erviceabilit ! ease of re airInstructor Slides 5


6/43

Dimensions of #ervice Quality

Convenience! the availa'ility and accessi'ility of the service

$eliability! a'ility to perform a service dependa'ly- consistently-and accurately

$esponsiveness! willingness to help customers in unusualsituations and to deal with pro'lems

)ime! the speed with which the service is delivered

"ssurance! nowledge exhi'ited 'y personnel and their a'ilityto convey trust and condence

Courtesy! the way customers are treated 'y employees

)angibles! the physical appearance of facilities- equipment-personnel- and communication materials

Consistency! the a'ility to provide the same level of goodquality repeatedly



7/43

"ssessing #ervice Quality

"udit service to identify strengths and*ea+nesses

,n particular- loo+ for discrepanciesbet*een:1. $ustomer expectations and management perception of

those expectations

2. Management perceptions customer expectations andservice4quality specications

. 3ervice quality and service actually delivered

". $ustomers5 expectations of the service provider andtheir perceptions of provider delivery



8/43

Determinants of Quality

Quality of design !ntention of designers to include or exclude features in a product

or service

Quality of conformance (he degree to which goods or services conform to the intent of

the designers 'ase&of&.se and user instructions !ncrease the lielihood that a product will 'e used for its intended

purpose and in such a way that it will continue to functionproperly and safely

"fter&the&sale service (aing care of issues and pro'lems that arise after the sale



9/43

$esponsibility for Quality

(op management

Design

rocurement

roduction6operations

Quality assurance

acaging andshipping

Mareting and sales

$ustomer service

Everyone in theorgani7ation has someresponsi'ility forquality- 'ut certain

areas of theorgani7ation areinvolved in activitiesthat mae them ey

areas of responsi'ility.



10/43

/ene0ts of 1ood Quality

Enhanced reputation for quality

8'ility to command premium prices

!ncreased maret share

*reater customer loyalty9ower lia'ility costs

0ewer production or service pro'lems

9ower production costs

igher prots



11/43

)he Conse%uences of oor Quality

9oss of 'usiness

9ia'ility

roductivity

$osts



12/43

Costs of Quality

"ppraisal Costs$osts of activities designed to ensure quality or

uncover defects

revention Costs8ll (Q training- (Q planning- customer

assessment- process control- and qualityimprovement costs to prevent defects fromoccurring



13/43

Costs of Quality

2ailure Costs & costs incurred bydefective parts3products or faultyservices4,nternal 2ailure Costs

$osts incurred to x pro'lems that are detected'efore the product6service is delivered to thecustomer.

'(ternal 2ailure Costs8ll costs incurred to x pro'lems that are detected

after the product6service is delivered to thecustomer



14/43

'thics and Quality

#ubstandard *or+ Defective products3u'standard serviceoor designs3hoddy wormanship3u'standard parts and materials

Having knowledge of this and failing to correctand report it in a timely manner is unethical.



15/43

Quality Contributors

Contributor 5ey Contributions

#he*art $ontrol charts: variance reduction

Deming 1" points: special vs. common causes of variation

6uran Quality is tness4for4use: quality trilogy

2eigenbaum Quality is a total eld: the customer denes quality

Crosby Quality is free: 7ero defects

,shi+a*a $ause4and4e;ect diagrams: quality circles

)aguchi (aguchi loss function

Ohno and #hingo $ontinuous improvementInstructor Slides 9-15


16/43

Deming7s 8 oints

Deming7s 8 oints1. $reate constancy of purpose toward improvement of product and service with

a plan to 'ecome competitive and stay in 'usiness.2. 8dopt the new philosophy.


17/43

$reate a constant purpose towardsimprovement.

8dopt the new philosophy.

3top depending on inspections@se a single supplier for any one item.

!mprove constantly and forever.

@se training on the =o'

!mplement leadership

Eliminate fear

Deming7s 8 oints

17Instructor Slides


18/43

>rea down 'arriers 'etween departments

*et rid of unclear slogans

Eliminate management 'y o'=ective

?emove 'arriers to pride of wormanship!mplement education and self improvement

Mae Atransformation5 everyone5s =o'

Cont44

18Instructor Slides


19/43

Quality "*ards and Certi0cation

Quality "*ardsDeming ri7eMalcolm >aldrige Bational Quality 8wardEuropean Quality 8ward

Quality Certi0cations!3C +,,,!3C 1",,,

!3C 2"&,,


http://www.juse.or.jp/e/deming/http://www.nist.gov/baldrige/http://www.efqm.org/http://www.efqm.org/http://www.nist.gov/baldrige/http://www.juse.or.jp/e/deming/


20/43

/ene0ts of the /aldrige Competition

1.


21/43

"*ard Categories

1. Education

2. ealthcare

. Manufacturing

". Bonprot6*overnment

#. 3ervice

%. 3mall >usiness

)he /aldrige Competition



22/43

/aldrige Criteria



23/43

,nternational Organiation for #tandardiation

,#O 9;;; 3et of international standards on quality management

and quality assurance- critical to international 'usiness,#O 8;;; 8 set of international standards for assessing a

company5s environmental performance

,#O


24/43

Quality Certi0cation

,#O 9;;;: Quality rinciples/rinciple 1 $ustomer focusrinciple 2 9eadership

rinciple !nvolvement of peoplerinciple " rocess approachrinciple # 3ystem approach to managementrinciple % $ontinual improvementrinciple & 0actual approach to decision maing

rinciple ) Mutually 'enecial supplier relationships


http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_management/qmp.htmhttp://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_management/qmp.htm


25/43

Quality and the #upply Chain

>usiness leaders are increasingly recogni7ingthe importance of their supply chains inachieving their quality goals?equires/Measuring customer perceptions of quality!dentifying pro'lem areas$orrecting these pro'lems

3upply chain quality management can 'enet

from a colla'orative relationship with supplierselping suppliers with quality assurance e;orts!nformation sharing on quality4related matters



26/43

)otal Quality Management

8 philosophy that involves everyone in anorgani7ation in a continual e;ort to improvequality and achieve customer satisfaction.

T Q M

Instructor Slides

9-26


27/43

)QM "pproach

1. 0ind out what the customer wants

2. Design a product or service that meets orexceeds customer wants

. Design processes that facilitate doing the =o'right the rst time

". eep trac of results

#. Extend these concepts throughout the supplychain



28/43

)QM 'lements

1. $ontinuous improvement

2. $ompetitive 'enchmaring

. Employee empowerment

". (eam approach

#. Decision 'ased on fact- not opinion%. nowledge of tools

&. 3upplier quality

). $hampion

+. Quality at the source1,. 3uppliers are partners in the process



29/43

Continuous ,mprovementhilosophy that sees to mae never4ending

improvements to the process of convertinginputs into outputs

5aien Fapanese word for continuous improvement.

Continuous ,mprovement



30/43

)he philosophy of ma+ingeach *or+er responsible forthe %uality of his or her *or+ GDo it rightH and G!f it isn5t right- x

itH

Quality at the #ource



31/43

#i( #igma

#i( #igma8 'usiness process for improving quality-

reducing costs- and increasing customersatisfaction

#tatisticallyaving no more than ." defects per million

Conceptuallyrogram designed to reduce defects

?equires the use of certain tools and techniques

Instructor Slides

9-31


32/43

Lean #i( #igma

Lean #i( #igma8 'alanced approach to process improvement

that integrates principles from lean operationand statistical tools for variation reduction

from six sigma to achieve speed and quality8n approach that is equally applica'le to

products and servicesEarly application in service support functions of

*eneral electric and $aterpillar 0inance

Instructor Slides

9-32


33/43

Obstacles to ,mplementing )QM

Obstacles include:1. 9ac of company4wide denition of quality

2. 9ac of strategic plan for change

. 9ac of customer focus

". oor inter4organi7ational communication

#. 9ac of employee empowerment%. Iiew of quality as a Gquic xH

&. Emphasis on short4term nancial results

). !nordinate presence of internal politics and GturfH issues

+. 9ac of strong motivation

1,. 9ac of time to devote to quality initiatives11. 9ac of leadership



34/43

D#" Cycle

lan&Dotudy&"ct ?D#"@ Cyclelan>egin 'y studying and documenting the current

process.

$ollect data on the process or pro'lem8naly7e the data and develop a plan for

improvement3pecify measures for evaluating the plan

Do!mplement the plan- document any changes made-

collect data for analysis

lan

Do#tud

y

"ct

Instructor Slides

9-34


35/43

D#" Cycle

lan&Dotudy&"ct ?D#"@ Cycle#tudyEvaluate the data collection during the do phase$hec results against goals formulated during the plan

phase"ct!f the results are successful- standardi7e the new

method and communicate it to the relevant personnel!mplement training for the new method

!f unsuccessful- revise the plan and repeat the process

lan

Do#tud

y

"ct

Instructor Slides

9-35


36/43

roblem #olving

Instructor Slides

9-36


37/43

rocess ,mprovement8 systematic approach to improving a process

rocess ,mprovement



38/43

/asic Quality )ools



39/43

Instructor Slides

Chec+ #heet

Quality )ools

Pareto Diagram

9-39


40/43

Methods for 1enerating ,deas

>rainstorming

8nity Diagram

Quality circles!nterviewing

>enchmaring

#


41/43

Quality Circles

Quality Circle*roups of worers who meet to discuss ways of

improving products or processes9ess structured and more informal than teams

involved in continuous improvementQuality circle teams have historically had relatively

little authority to mae any 'ut the most minorchanges



42/43

/enchmar+ing rocess

1. !dentify a critical process that needsimprovement

2. !dentify an organi7ation that excels in thisprocess

. $ontact that organi7ation

". 8naly7e the data

#. !mprove the critical process



43/43

Operations #trategy

Quality is a strategic imperative fororganiations $ustomers are very concerned with the quality of goods

and services they receive

Quality is a never&ending journey !t is important that most organi7ational mem'ers

understand and 'uy into this idea

Customer satisfaction A customer loyalty

Quality needs to be incorporated throughoutthe entire supply chain- not just theorganiation itself


chapter 09 pom

Documents