OM Ppt Quality Management

8/9/2019 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,

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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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http://www.acsi.org/http://www.acsi.org/


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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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