managing quality 12 july 2001. introduction what: quality in operations management where: quality...
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Introduction What: quality in operations
management Where: Quality affects all goods
and services Why: Customers demand quality
American Society for Quality “The totality of features and
characteristics of a product or service that bears on its ability to satisfy stated or implied needs”
User-Based Definition “Quality lies in the eye of the
beholder” Higher quality = better
performance Higher quality = nicer features
Global Implications National Quality Awards: US: Malcolm Baldridge National
Quality Award Japan: Deming Prize Canada: National Quality Institute
Canada Awards for Excellence
Canada Award Winners 2000 Aeronautical and Technical
Services British Columbia Transplant
Society Delta Hotels Honeywell Water Controls Business
Unit
Quality and Profitability
Improved Quality Increased Profits
Sales Gains•Improved Response•Higher Prices•Improved Reputation
Reduced Costs•Increased Productivity•Lower Rework, Scrap•Lower Warranty Costs
International Standards ISO 9000 Establish quality management
procedures Documented processes Work Instructions Record Keeping
Does NOT tell you how to make a product!
Total Quality Management TQM – Total Quality Management Quality emphasis throughout an
organization From suppliers through to
customers
Deming’s 14 Points Create consistency of purpose Lead to promote change Build quality into the product, stop
depending on inspections to catch problems Build long-term relationships based on
performance instead of awarding business on the basis of price
Continuously improve product, quality and service
Start training
Deming’s 14 Points Emphasize leadership Drive out fear Break down barriers between departments Stop haranguing workers Support, help and improve Remove barriers to pride in work Institute a vigorous program of education
and self-improvement Put everybody in the company to work on
transformation
TQM Concepts Continuous Improvement Employee Empowerment Benchmarking Just-In-Time Taguchi Knowledge of Tools
Employee Empowerment Involve employees in every step of
production High involvement by those who
understand the shortcomings of the system
Quality circle
Benchmarking Pick a standard or target to work
towards Compare your performance Best practices in the industry
Just-In-Time Produce or deliver goods just when
they are needed Low inventory on hand Keeps evidence of errors fresh
TQM Tools Check Sheet Scatter Diagram Cause and effect diagram (fishbone) Pareto Chart – 80-20 Rule Flow Charts Histogram Statistical Process Control
Inspection At supplier’s plant Upon receipt of goods from supplier Before costly processes During production When production complete Before delivery At point of customer contact
Statistical Process Control Apply statistical techniques to
ensure processes meet standards Natural variations Assignable variations Goal: signal when assignable
causes of a variation are present
In Control vs Out Of Control In control and producing within
control limits In control, but not producing within
control limits Out of control