BADM370 - U4DB

QUALITY CONTROL MANUAL

QUALITY CONTROL MANUAL BADM370 UNIT 4IP Keysha Jamerson 9/12/2018

Table of Contents

1. Introduction (pages 2-4)

1.1. History of the quality management evolution.

1.2. Why it is needed

1.2.1. Definition of quality

1.2.2. Where was it discovered/used?

1.2.3. Who are the developers/philosophers?

1.2.4. When was it developed?

2. The Role of Leadership (pages 4-5)

2.1. Why it is a strategic issue

2.2. Management as a role model

2.3. New kinds of metrics

2.3.1. What are the different management roles?

2.3.2. How is quality measured

2.3.3. The impact of leadership failure

3. General Quality Strategies and Tools (pages 5-7)

3.1. Establishing customer expectations

3.2. Designing quality in

3.3. Defining metrics

3.4. Mistake-proofing

3.5. Kaizen

3.6. Six Sigma

3.6.1. Definitions

3.6.2. Risks

3.6.3. Value

4. Quality Tactics and the Logistics and Supply Chain Functions (pages )

4.1. What tools are applicable internally

4.2. What tools are applicable with vendors

5. References (pages)

Introduction

According to MUSE (2018), quality is difficult to define, it could mean value, durability, reliability or getting what is worth your money. Quality, as it pertains to business, mean to produce a product or perform a service that meets specifications determined by performance and cost.

Quality management began in China in the 12th century B.C. There were governmental departments created to delegate responsibilities such as (Editorial Board,2016):

-production

-inventory

-product distribution (supply chain)

The Chinese issued policies and procedures to control product throughout the country, including prohibiting the sale of nonconforming material. The employees where given the responsibility of inspecting the products for quality.

During the Middle Ages the standard for quality was set; craftsmen performed the tasks of manufacturing and inspecting. The quality was built into the product during the creation process, which the worker took pride in. Customers’ expectations were met and understood by the craftsmen.

During the Industrial Revolution there was the production of interchangeable parts whose specifications were too relaxed. The parts were standardized to produce a finished product; variations in the products impacted the quality.

Quality Management took off during the 1920’s in America, with less than positive results. There were some pioneers of Quality Management including (editorial board,2016):

-Frederick Taylor- broke jobs down into smaller components, trained the employees to concentrate on that specific job, taking the “human” aspect out of the job.

-Frank and Lillian Gilbreth-developed “micro motion” -study of the movements a worker makes. This technique eased worker fatigue and productivity was increased.

-Walter Shewart’s-mathematics of quality developed “Statistical Process Control” method, “Shewart Cycle Learning” and “Improvement Cycle”. The Learning and Improvement cycles combined creative thinking and statistical analysis. The cycle has 4 steps; plan, do, study and act (PDSA).

-Drs. Deming and Juran- (1940) Invited to Japan to help with quality management. Total Management Quality philosophers-dependent upon math and Shewart’s control charts. Dr. Juran is the author of the industry standard Quality Assurance Handbook. Deming philosophy has 14 points and four parts:

1. -Appreciation for the system- systematic approach

2. -Understanding process variation- the long term effects

3. -Theory of knowledge- informed of the process

4. -Psychology-why people do what they do

Juran had the idea that departments “speak different languages”; he concentrated on 3 aspects of quality:

1. -quality planning

2. -quality improvement

3. -quality control

-Phillip Crosby-quality is free and absolute, it has “zero defects”, he believed in changing behavior. He developed 14 steps to maintain quality.

There are specific directions that companies are adopting in terms of strategic quality management including (asq,2018):

-TQM element approach: utilizes important business processes and organizational units to promote improvements.

-quality circles

-statistical process control

-Organization Model Approach: technique used by teams or individuals, visit organizations that are leaders in the field of TQM and learn their process and procedures in order to be successful. Integrate and provide input to generate a model for the organization

-The Award Criteria Approach: A quality award criteria, such as the Deming Prize, European Quality Award is used to identify areas of improvement.

This quality control manual is meant for the logistics and supply chain management department of Love Community Health Care Systems. This health care system delivers care to the community and the surrounding counties. We pride ourselves on delivering excellent patient-centered care at our state of the art medical facility.

Six Sigma is a quality improvement system that has been tested and proven, over time to elevate product quality and services. This approach identifies the source of defects and provides enduring cures that will permanently improve quality. Six Sigma analyze the business, identify problems and review the culture that may lead to issues in quality (Ozyasar,2018). Some pros of Six Sigma are once implemented improvements will continue to increase, identifying and eliminating possible defects early will save time and money, profits will increase, operational costs will decrease. Some cons of this program are may not result in cost savings due to improvement byproduct and an increase in overhead and capital costs (CEBOS,2018).

The Role of Leadership

According to Baldrige (2017), senior management’s role in successful quality improvement programs included recognizing what the customers require, providing the employees with the tools needed to accomplish the goals set by the organization, collecting input from employees and customers, analyzing the data and developing a plan to carry out the plan and following up with employees to share the status of the quality improvement program.

BTES use the CAP-DO process (Check, Act, Plan, Do) which motivates employees to improve processes quickly. Employee and customer related input is gathered consistently from all departments and treated as either an opportunity for improvement (OFI) through the Improvement Initiative Process (IIP).

BTES has saved its customers money and has been able to retain $70 million over the last 40 years due to the integration of fiber optic system, energy-efficient home improvement loans, training at in-house seminars and trade shows, energy-efficient lighting and equipment and continuous cost evaluation and control.

The use of Customer Average Interruption Duration Index (CAIDI) data is used to measure customer satisfaction. The feedback (positive/negative) is tracked and reviewed weekly by the organization’s senior management during staff meetings.

Employment engagement is measured through performance appraisals, retention and attendance. Attendance is at 75% and retention is at 91% due to the commitment to building an effective workplace environment and to engaging and empowering the workforce (Baldrige,2017).

Roles for effective senior management include (Juneja,2018):

1. Facilitator of the program: requires planning and research

2. Leader: lead by example, be knowledgeable and approachable, great communicator

3. Delegate of duties: choose the right person for the right job

4. Provide resources: training pamphlets, booklets and classes

5. Allocate time: allow time for training

6. Provide training: there are various TQM practices/ ensure implementation of TQM without obstacles

7. Welcome feedback: empower the employees

8. Inspire employees: show the employees how you practice TQM

9. Role model: practice TQM

10. Allocate budget: the program costs money and should be in the budget each fiscal year

If the roles of leadership are not used while implementing the TQM chaos could ensue, the program could fail and there would be many obstacles to overcome. Senior management should use metrics that fit the needs of the organization including SMART goals, these are goals that are specific, measurable, achievable, relevant and time-bound (Kaner,2018). Other forms of metrics include: sales, profits, costs, and customer satisfaction and retention (Markgraf,). There should be meetings held in order to discuss the progress or lack thereof. E-mails should be sent out to communicate progress and staff meeting times.

General Quality Strategies and Tools

TACTIC	DEFINITION	RISK	VALUE
ESTABLISHING CUSTOMER EXPECTIONS	1. The perceived value or benefit that the customer looks for when making a purchase or obtaining service	1. Customers take advantage 1. Influence decision-making process 1. Difficult to change a customer’s mind	1. Customer satisfaction 1. Retained/gained customer 1. Trust is gained 1. Organization viability
DESIGNING QUALITY	1. The result of designing quality into a product and its processes	1. May decrease revenue due to superior product/longevity	1. Inspections will not be needed 1. Less waste 1. Less man-hours 1. Saves money 1. Address causes of possible quality issues
DEFINING METRICS	1. Evaluation of performance management, quantifiable measurement 1. S.M.A.R.T. goals 1. Profits 1. costs	1. Incorrect calculations 1. Incorrect information 1. Address the wrong audience	1. Performance criteria 1. Measures criteria against targets set forth by organization
MISTAKE-PROOFING	1. A method that makes it impossible for an error to occur 1. Immediately makes errors obvious	1. Prevent human errors not errors of a poorly designed or programmed machine	1. Eliminates-cause of the error 1. Replacement-replaces the step with an “error-proof” step 1. Facilitation-makes the correct step easier than the error
KAIZEN	1. A strategy that involves proactive, consistent improvements to the manufacturing process 1. Continuous improvement	1. Resistance to change 1. Increase workload 1. Hard to change back to previous methods once implemented 1. Lowered morale	1. Organizing events that are focused on improving specific areas 1. Team work 1. Builds organizational culture 1. Employees are actively engaged Empowerment
SIX SIGMA	1. Increase in performance decrease in process variation	1. Decrease in revenue (may not save money) 1. May lead to increased overhead and capital costs ie. Cancel out savings 1. Consumes more resources	1. Reduction in defects 1. Improvement in profits 1. Boost morale 1. Quality of products/service

Quality Tactics and the Logistics and Supply Chain Functions

TBD

References:

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