Operations management by stevenson 9th student slides chapter 9

All Rights Reserved.Chapter 9 Management of Quality... Chapter 9: Learning Objectives– Define the term quality – Explain why quality is important and the consequences of poor quality – I

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Chapter 9

Management of Quality

Chapter 9: Learning Objectives

– Define the term quality – Explain why quality is important and the consequences of poor quality – Identify the determinants of quality

– Describe the costs associated with quality

– Describe the quality awards – Discuss the philosophies of quality gurus – Describe TQM

– Give an overview of problem solving

– Give an overview of process improvement – Describe and use various quality tools

Quality

• What does the term quality mean?

• Quality

– is the ability of a product or service to consistently

meet or exceed customer expectations

Quality Contributors

Deming’s 14 Points

Determinants of Quality

Conformance to

Design

After-Sale Service

Ease of Use

Design

Costs of Quality

• Failure Costs

– Costs incurred by defective parts/products or faulty services.

• Appraisal Costs

– Costs of activities designed to ensure quality or uncover defects

• Prevention Costs

– All TQ training, TQ planning, customer assessment, process

control, and quality improvement costs to prevent defects from occurring

Quality Awards and Certification

• Quality Awards

– Deming Prize

– Malcolm Baldrige National Quality Award

• Quality Certifications

– ISO 9000

– ISO 14000

– ISO 24700

Recent Baldrige Winners

• 2007

– PRO-TEC Coating Co – small business – Mercy Health System – healthcare

– Sharp HealthCare– healthcare

– City of Coral Springs– nonprofit

– U.S Army Armament Research, Development, and Engineering Center– nonprofit

• 2006

– Premier, Inc.– service

– MESA Products, Inc.– small business

– North Mississippi Medical Center– healthcare

• 2005

– Sunny Fresh Foods, Inc.– manufacturing

– DynMcDermott Petroleum Operations Company– service

– Park Place Lexus– small business

– Jenks Public Schools– education

– Richland College– education – Bronson Methodist Hospital healthcare

Total Quality Management

• A philosophy that involves everyone in an

organization in a continual effort to improve

quality and achieve customer satisfaction.

TQM Culture

Six Sigma

• Six Sigma

– A business process for improving quality, reducing

costs, and increasing customer satisfaction

– Statistically

– Conceptually

Quality Tools

• Seven basic quality tools:

– Flowcharts

– Checksheets

– Histograms

– Pareto Analysis

– Scatter Diagrams

– Control Charts

– Cause-and-Effect Diagrams

• Run Charts

Methods for Generating Ideas

• Brainstorming

• Affinity Diagram

• Quality circles

• Interviewing

• Benchmarking

Operations Strategy

• Quality is a strategic imperative for organizations

– Customers are very concerned with the quality of goods and

services they receive

• Quality is a never-ending journey

– It is important that most organizational members understand and

buy into this idea

• Customer satisfaction ≠ customer loyalty

• Quality needs to be incorporated throughout the entire

supply chain, not just the organization itself