Forecasting/MAD/Exponential Smoothing problem solving homework (Operations Management)
MDNAQ
w04_total_quality_management.pptxWeek 4: Quality Management
OPERATIONS MANAGEMENT
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Outline
Quality definition
Dimension of quality in product and services
Quality assurance
Quality leaders
Cost of quality
Total quality management and tools
Definition of Quality
Quality is a predictable degree of uniformity and dependability, at low cost and suitable to the market (Deming)
Quality is fitness for use (Juran)
Quality is the conformance to requirements (Crosby)
Quality is the (minimum) loss imparted by a product to
society from the time the product is shipped. (Taguchi)
Why Quality
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Managing quality supports differentiation, low cost, and response strategies
Quality helps firms increase sales and reduce costs
Building a quality organization is a demanding task
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Ethics and Quality Management
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Operations managers must deliver healthy, safe, quality products and services
Poor quality risks injuries, lawsuits, recalls, and regulation
Organizations are judged by how they respond to problems
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Dimensions of Quality for Manufacturing Product
Performance: Product’s primary operating characteristics
Features: Secondary characteristics that supplement the products basic functioning
Reliability: The probability of a product’s surviving over a specified period of time under stated conditions of use
Durability: The amount of use one gets from a product before it physically deteriorates or until replacement is preferable.
Serviceability: The ability to repair a product quickly and easily
Aesthetics: How a product looks, feels, tastes, or smells
Service Quality Attributes
Timeliness: Will a service be performed when promised?
Completeness: Are all items in an order included?
Courtesy: Do front-line employees greet each customer cheerfully and politely.
Consistency: Are services delivered in the same fashion for every customer and every time for the same customers.
Accessibility and convenience: Is the service easy to obtain?
Accuracy: Are the services performed right the first time?
Responsiveness: Can the service personnel response quickly and resolve unexpected problem?
Quality Control
All those operational techniques and activities that are used to fulfill requirements for quality.
The objectives are:
(i) To ensure true expression/correct translation of stated and implied needs of the customers.
(ii) To monitor the process for realization of the product at various stages of its operations and eliminating causes of unsatisfactory performance at all stages of quality loop in order to achieve economic effectiveness.
(iii) Inspection of the product/service package to determine conformance to customer needs.
Quality Assurance
All the planned and systematic activities implemented within the organization for quality management, to provide adequate confidence that a product or service will satisfy given requirements for quality (ISO - International Organization for Standardization).
Quality assurance is a preventive activity and is therefore required to be systematically planned in advance.
The activity includes identification and planning of the checks, inspection, and control of processes as a part of quality control.
Quality assurance means establishment of a quality system which can demonstrate the capability of organization to satisfy the requirements of customers.
Quality assurance provides confidence internally to the management and external to the customers.
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Leaders in Quality
W. Edwards Deming 14 Points for Management
Joseph M. Juran Top management commitment, fitness for use
Costs of Quality: cost of doing this wrong
Prevention costs –costs to identify the cause of the defect, corrective action to eliminate the causes of failure, training, education, redesign the product or system, etc.
Appraisal costs – the costs of the inspection, testing to ensure the product/process is acceptable
Internal failure- yield losses (scrap), rework costs ( rework, repair)
External costs – defect is discovered after receiving the product or service; loss of customer goodwill, handling complaints, product repair, warranty replacements
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Costs of Quality
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External Failure
Internal Failure
Prevention
Appraisal
Total Cost
Quality Improvement
Total Cost
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Principles of Total Quality Management
TQM conveys a company-wide effort that includes all employees, suppliers, and customers, and that seeks to continuously improve the quality of products and processes to meet the needs and expectations of customers.
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Customers
Employees
Suppliers
Continuous quality
Improvement for
processes and products
Customers
Satisfaction
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Deming’s 14 Principals to implement TQM
Create consistency of purpose
Lead to promote change
Build quality into the product; stop depending on inspections
Build long-term relationships based on performance instead of awarding business on price
Continuously improve product, quality, and service
Start training
Emphasize leadership
Drive out fear
Break down barriers between departments
Stop criticizing workers
Support, help, and improve
Remove barriers to pride in work
Institute education and self-improvement
Put everyone to work on the transformation
Continuous improvement
Six sigma
Employee empowerment
Benchmarking
Juts-in-time
Taguchi concept of quality robustness
Knowledge of TQM tools
Seven concepts for effective TQM
© 2011 Pearson Education, Inc. publishing as Prentice Hall
Continuous Improvement
Represents continual improvement of all processes
Involves all operations and work centers including suppliers and customers
People, Equipment, Materials, Procedures
4. Act
Implement the plan document
2. Do
Test the plan
3. Check
Is the plan working?
Plan
Identify the pattern and make a plan
Shewhart’s PDCA Model
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Tools of TQM
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Tools for Generating Ideas
Check sheets
Scatter diagrams
Cause and effect diagrams
Tools to Organize the Data
4. Pareto charts
5. Flow charts
Tools for Identifying Problems
6. Histogram
7. Statistical process control (SPC)chart
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2/14/2016
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Exhibit S6.1
Group size in a restaurant
1. Check Sheet
Equipment with accessories
2.Scatterplot of Customer Satisfaction and Waiting Time in an Upscale Restaurant
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Exhibit S6.6
3. Cause-and-effect or fishbone diagram
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Material
Machinery
Methods
Manpower
Inadequate
supply of magazines
Inadequate special meals on-board
Insufficient clean pillows
& blankets on-board
Broken luggage carousel
Mechanical delay on plane
Deicing equipment not available
Overbooking policies
Bumping policies
Mistagged bags
Poor check-in policies
Understaffed ticket counters
Understaffed crew
Poorly trained attendants
Dissatisfied Airline Customer
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Poor
Exam
performance
Poor
scheduling
Poor
planning
Health
problem
Class
performance
Forgot exam date
Missed review
Needed
prerequisites
Over my head
Too much materials
Class too hard
I was sick
Relative was sick
Poor performance in
Course work
Didn’t study
Didn’t do homework
Didn’t do teamwork
Cut classes
Slept in classes
No case presentation
4. Pareto Chart of issues in an emergency room
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Pareto chart identify the vital few and trivial many and highlights problems
that should be given attention. This is graphical picture of the relative
frequencies of different types of quality problem with the most frequent problem
type obtaining clear visibility.
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5. Flow Diagram and Process Chart of an Office Procedure—Present Method*
*Requisition is written by supervisor, typed by secretary, approved by superintendent, and approved by purchasing agent; then order is prepared by a stenographer.
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6. Histogram of Hole Diameters
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Histogram are used to display
continuous data that can be
measured.
7. Statistical Process Control (SPC)Chart
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A chart with time on the horizontal axis to plot values of a statistic
Upper control limit
Target value
Lower control limit
Time
Four key steps
Measure the process
When a change is indicated, find the assignable cause
Eliminate or incorporate the cause
Restart the revised process
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Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
S6-26
Patterns to Look for in Control Charts
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Ask the students to imagine a product, and consider what problem might cause each of the graph configurations illustrated.
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Thank you
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What are the four major categories of cost associated with quality?
What are the TQM tools?
How does a Pareto chart differ from a run chart?
Draw a cause-and-effect diagram for your poor or good performance in your last year’s exam.
Answer the questions from the case Ritz-Carlton Hotel (page 246)
Tutorial
