om ppt quality management
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Quality Management
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Quality Management
Quality - Totality of features andcharaterstics of a product or servicethat bears on its ability to satisfy thecustomer.
Transcendent de nition Quality isabsolute, innate and universallyrecognizable and often loosely relatedto comparison of features andcharacteristics of products .
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Meaning of Quality:onsumer!s
"erspectiveFitness for use
ho# #ell product or
service does #hat it issupposed to
Quality of designdesigning $ualitycharacteristics into a
product or service% Mercedes and a &ord aree$ually ' t for use,( but#ith di)erent designdimensions
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*imensions of Quality:Manufactured "roducts 0cont.1
onformance degree to #hich a product meets preestablished standards
*urabilityho# long product lasts before replacement
2erviceabilityease of getting repairs, speed of repairs,courtesy and competence of repair person
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*imensions of Quality:Manufactured "roducts 0cont.1
%estheticsho# a product loo/s, feels, sounds,
smells, or tastes2afety
assurance that customer #ill notsu)er in3ury or harm from a product+an especially important considerationfor automobiles
"erceptionssub3ective perceptions based onbrand name, advertising, and the li/e
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*imensions ofQuality:2ervice
Time and Timeliness4o# long must a customer #ait for service,and is it completed on time56s an overnight pac/age delivered overnight5
ompleteness:
6s everything customer as/ed for provided56s a mail order from a catalogue companycomplete #hen delivered5
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*imensions ofQuality:
2ervice 0cont.1ourtesy:
4o# are customers treated by employees5%re catalogue phone operators nice andare their voices pleasant5
onsistency6s the same level of service provided toeach customer each time56s your ne#spaper delivered on time everymorning5
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*imensions of Quality:2ervice 0cont.1
%ccessibility and convenience4o# easy is it to obtain service5*oes a service representative ans#er you calls $uic/ly5
%ccuracy6s the service performed right every time56s your ban/ or credit card statement correct everymonth5
esponsiveness4o# #ell does the company react to unusual situations54o# #ell is a telephone operator able to respond to acustomer!s $uestions5
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Meaning of Quality:"roducer!s
"erspective
Quality of onformanceMa/ing sure a product or service isproduced according to design
if ne# tires do not conform tospeci cations, they #obbleif a hotel room is not clean #hen a guestchec/s in, the hotel is not functioningaccording to speci cations of its design
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Meaning of Quality:
% &inal "erspective
onsumer!s and producer!sperspectives depend on each other
onsumer!s perspective: " 6 7"roducer!s perspective: 82T
onsumer!s vie# must dominate
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Meaning of Quality
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Fitness for Consumer Use
Fitness for Consumer Use
Producers PerspectiveProducers Perspective Consumers PerspectiveConsumers Perspective
Quality of ConformanceQuality of Conformance
Conformance to
specifications Cost
Quality of DesignQuality of Design
Quality characteristics Price
MarketingMarketingProductionProduction
Meaning of QualityMeaning of Quality
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Total Quality Management
ommitment to $uality throughout organization
"rinciples of TQM"rinciples of TQM ustomer-orientedustomer-oriented 9eadership9eadership 2trategic planning2trategic planning 7mployee responsibility7mployee responsibility
ontinuous improvementontinuous improvement ooperationooperation 2tatistical methods2tatistical methods Training and education Training and education
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Quality urus
;alter 2he#art 6n ?s, developed control charts
6ntroduced the term ' quality assurance ;. 7d#ards *eming *eveloped courses during ;orld ;ar 66 to teach
statistical $uality-control techni$ues to engineersand e ecutives of companies that #ere militarysuppliers
%fter the #ar, began teaching statistical $ualitycontrol to @apanese companies @oseph M. @uran
&ollo#ed *eming to @apan in
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Quality urus 0cont.1
%rmand . &eigenbaum6n
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*eming!s
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*eming!s
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*eming ;heel: "* %
ycle
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1. Plandentify
pro!lem and
develop planforimprovement.
". Domplement
plan on a test!asis.
#. $tudy%Check&ssess plan' is it
(orking)
*. &ctnstitutionali+e
improvement'
continuecycle.
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TQM andG
Partnering a relationship bet#een a company
and its supplier based on mutual$uality standards Customers
system must measure customersatisfaction
Information Technology infrastructure of hard#are,
net#or/s, and soft#are necessaryto support a $uality program
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Quality 6mprovementand ole of7mployees
Participativeproblem solving employees involved in
$uality management every employee has
undergone e tensivetraining to provide$uality service to*isney!s guests
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Quality ircle
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Presentationmplementation
Monitoring
$olutionPro!lem results
Pro!lem &nalysisCause and effect
Data collection andanalysis
Pro!lem
dentification,ist alternativesConsensus
-rainstorming
raining
/roup processesData collectionPro!lem analysis
0rgani+ation213 mem!ers$ame area
$upervisor%moderator
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2trategic 6mplications
of TQM
Strong leadership
Goals , vision , or mission Operational plans and policies Mechanism for feedback
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2i 2igma
% process for developing and deliveringnear perfect products and services
Measure of ho# much a processdeviates from perfection
H.B defects per million opportunities hampion
an e ecutive responsible for pro3ect success
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Ilac/ Ielts and
reen Ielts Black Belt
pro3ect leader
Master Black Belt a teacher and
mentor for Ilac/Ielts
reen Belts pro3ect team
members
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2i 2igma: *M%6
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3.4 DPMO3.4 DPMO
67,000 DPMOcost = 25% of
sales
67,000 DPMOcost = 25% of
sales
DE !"EDE !"E #O"$ OO"$ O&!MP O'E!MP O'E ("(&)*E ("(&)*EME(+ EME(+ E
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TQM in 2ervice
ompanies Principles of TQM apply e!ually "ell
to services and manufacturing
#ervices and manufacturingcompanies have similar inputs butdi$erent processes and outputs
#ervices tend to be labor intensive #ervice defects are not al"ays easy
to measure because service outputis not usually a tangible item
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Quality %ttributes in
2ervice Ienchmar/
'best( level of$uality achievementone company orcompanies see/ toachieve
Timeliness ho# $uic/ly a
service is provided
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quickest, friendliest, mostquickest, friendliest, mostaccurate serviceaccurate service
available.available.
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ost of Quality
ost of %chieving ood Quality "revention costs
costs incurred during product design %ppraisal costs
costs of measuring, testing, and analyzing
ost of "oor Quality 6nternal failure costs
include scrap, re#or/, process failure,do#ntime, and price reductions
7 ternal failure costs include complaints, returns, #arranty claims,
liability, and lost sales3-29
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Prevention Costs Quality planning costs
costs of developing andimplementing $ualitymanagement program
"roduct-design costs costs of designing
products #ith $ualitycharacteristics
"rocess costs costs e pended to
ma/e sure productiveprocess conforms to$uality speci cations
Training costs costs of developing and
putting on $ualitytraining programs foremployees andmanagement
6nformation costs costs of ac$uiring and
maintaining datarelated to $uality, anddevelopment of reportson $uality performance
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Internal Failure Costs
Scrap costs costs of poor-$uality
products that must be
discarded, includinglabor, material, andindirect costs
Rework costs costs of ing defective
products to conform to$uality speci cations
Process failure costs costs of determining #hy
production process isproducing poor-$ualityproducts
Process downtimecosts costs of shutting do#n
productive process to problem
Price downgradingcosts costs of discounting
poor-$uality productsEthat is, selling productsas 'seconds(
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&'ternal Failure Costs
ustomer complaint costs costs of investigating and
satisfactorily responding to acustomer complaint resultingfrom a poor-$uality product
"roduct return costs costs of handling and
replacing poor-$ualityproducts returned by
customer ;arranty claims costs costs of complying #ith
product #arranties
"roduct liabilitycosts litigation costs
resulting fromproduct liability andcustomer in3ury
9ost sales costs costs incurred
because customersare dissatis ed #ithpoor $uality productsand do not ma/eadditional purchases
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Measuring andeporting Quality
osts Inde' numbers
ratios that measure $uality costs
against a base value labor inde' ratio of $uality cost to labor hours
cost inde' ratio of $uality cost to manufacturing cost
sales inde' ratio of $uality cost to sales
production inde' ratio of $uality cost to units of nal product
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Quality Management
and "roductivity Productivity
ratio of output to input (ield) a measure of productivity
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4ield56total input768 good units7 9 6total input76128good units768 re(orked7 4ield56total input768 good units7 9 6total input76128good units768 re(orked7
or
!"#$%#&'%(#$%#1)&'%#&*%!"#$%#&'%(#$%#1)&'%#&*%
or
!"#$%#&'%(#$%#1)&'%#&*%!"#$%#&'%(#$%#1)&'%#&*%
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"roduct ost
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Y
R K I K r d ))(())(( +
=P o /ct #ost
where:K d = ect a /fact/ cost e / tI = /tK r = e o cost e / tR = e o e / tsY = el
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omputing "roduct Kield for Multistage
"rocesses
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Y = I %g 1 %g 2 : % g n
;e eP =o - efect ?e / ts
/t ocess cost @ efect ?e / ts e o e cost
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2even Quality ontrol Tools
"areto %nalysis &lo# hart hec/ 2heet
4istogram
2catter *iagram 2" hart ause-and-7)ect
*iagram
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"areto %nalysis
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:UM-;< 0F:UM-;< 0FC&U$;C&U$; D;F;C $D;F;C $ P;rong part dimensions 1=1= 1#1#Defective partsDefective parts 1"1" 1313
ncorrect machine cali!rationncorrect machine cali!ration ?? ==0perator errors0perator errors ** ##
Defective materialDefective material ## ""$urface a!rasions$urface a!rasions ## ""
1"@1"@ 133133 88
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"areto
hart
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P e r c e n
t f r o m
e a c
h c a u s e
P e r c e n t f r o m
e a c
h c a u s e
Causes of poor AualityCauses of poor Auality M a
c h i n e
c a l i !
r a t i o n s
M a c h i n e
c a l i !
r a t i o n s
D e f e c
t i v e p
a r t s
D e f e c
t i v e p
a r t s
> r o n
g d i m
e n s i o
n s
> r o n
g d i m
e n s i o
n s
P o o r
D e s i g n
P o o r
D e s i g n
0 p e r a
t o r e r r o r s
0 p e r a
t o r e r r o r s
D e f e c
t i v e m
a t e r i a l s
D e f e c
t i v e m
a t e r i a l s
$ u r f a
c e a ! r a s
i o n s
$ u r f a
c e a ! r a s
i o n s33
1313
"3"3
#3#3
*3*3
@3@3
=3=3
?3?36=*76=*7
61#761#761376137
6=76=76#76#7 6"76"7 6"76"7
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&lo# hart
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0peration Decision$tart%Finish
$tart%Finish
0peration
0peration0peration
0peration
Decision
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hec/ 2heet
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COMPONENTS REPLACED BY LABTIME PERIOD: 22 Feb to 27 Feb 2002REPAIR TECHNICIAN: Bob
TV SET MODEL 1013
Integrated Circuits ||||Capacitors |||| |||| |||| |||| |||| ||Resistors ||Transformers ||||CommandsCRT |
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2catter *iagram
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! !
+ +
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ontrol hart
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11
1"1"
==
##
BB
1@1@
"1"1
"*"*
"" ** == 1313 1"1" 1*1* 1=1=
$ample num!er $ample num!er
: u m
! e r o f
d e
f e c
t s
: u m
! e r o f
d e
f e c
t sUC, 5 "#.#@
,C, 5 1.BB
c 5 1".=?
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ause-and-7)ect*iagram
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QualityPro!lemQuality
Pro!lem
0ut of ad ustment0ut of ad ustment
ooling pro!lemsooling pro!lems
0ld % (orn0ld % (orn
MachinesMachinesFaultyFaulty testing eAuipmenttesting eAuipment
ncorrect specificationsncorrect specifications
mproper methodsmproper methods
MeasurementMeasurement
Poor supervisionPoor supervision
,ack of concentration,ack of concentration
nadeAuate trainingnadeAuate training
umanuman
DeficienciesDeficienciesin product designin product design
neffective Aualityneffective Aualitymanagementmanagement
Poor process designPoor process design
ProcessProcess
naccuratenaccuratetemperaturetemperaturecontrolcontrol
Dust and DirtDust and Dirt
;nvironment;nvironment
Defective from vendor Defective from vendor
:ot to specifications:ot to specifications
Material2Material2handling pro!lemshandling pro!lems
MaterialsMaterials
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Ialdrige %#ard
reated in
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8ther %#ards for Quality ational individual
a#ards %rmand . &eigenbaum
Medal
*eming Medal 7. @ac/ 9ancaster Medal 7d#ards Medal 2he#art Medal
6shi/a#a Medal
6nternational a#ards 7uropean Quality %#ard anadian Quality %#ard %ustralian Iusiness
7 cellence %#ard *eming "rize from
@apan
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%merican ustomer
2atisfaction 6nde 0% 261 Measures customer satisfaction
7stablished in ??H1 %mazon.com scored DD 0highest in service1 *ell scored of CD 0highest in computer
industry1 adillac scored DC 0highest in car industry1
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628 =???
% set of procedures andpolicies for international$uality certi cation ofsuppliers 2tandards 628 =???:>???
!uality ManagementSystems"#undamentalsand $ocabulary
de nes fundamentalterms and de nitionsused in 628 =??? family
628 =????? !uality Management
Systems"Requirements standard to assess ability to
achieve customersatisfaction
628 =??B:>??? !uality Management
Systems"Guidelines forPerformance %mprovements
guidance to a company forcontinual improvement of its$uality-management system
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6mplications of 628 =??? for L.2.ompanies
Many overseas companies#ill not do business #ith asupplier unless it has 628=??? certi cation
628 =??? accreditation 628 registrars % total commitment to
$uality is re$uiredthroughout an organization
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