BBA07 08 Quality Management

Lecture Outline
Topics
09 - 10| Quality Management
Nature of quality Total quality management Fundamental quality tools
Learning objectives
IM 203 Production and operations management

Assistant Professor Dr. Karndee Leopairote Department of Industrial and Operations Management Thammasat Business School im.karndee@gmail.com
IM 203| Thammasat Business School
To understand the importance and strategic role of quality management To be able to apply the statistical tool in quality improvement and analysis
Reference
Roberta Russell & Bernard W. Taylor, (2009), Operations Management along the supply chain (CHAPTER 2) Ed 6, John Wiley &Son
2
Some say
Good is not good where the better is expected
What is Quality?
Which one has a higher quality?

No problem is a problem
When I hear, I forget. When I see, I remember. When I do, I understand
3
4 3
4 Source: Russell and TaylorIII (2005)
Meaning of Quality: Consumers Perspective

Fitness for use
Meaning of Quality
Meaning of Quality
how well product or service does what it is supposed to designing quality characteristics into a product or service
Producers Perspective
Consumers Perspective
Quality of design
Quality of Conformance Production Conformance to specifications Cost Quality of Design Quality characteristics Price Marketing
A Mercedes and a Ford are equally fit for use, but with different design dimensions
Fitness for Consumer Use

6 5 Source: Russell and TaylorIII (2005)
5
Quality Measure in Manufacturing Industry

Characteristics of products Examples:
Products Metal ring Box of cereal Bag of MaMa Body lotion Cosmetic Quality Characteristics Diameter; thickness Weight Weight Viscosity; color Color
Quality Measure in service industry

Nature of defect is different in
services Service defect is a failure to meet customer requirements Example of Quality Measure
Average waiting time or service time, Average queue length customer satisfaction quickest, friendliest, most On time delivery accurate service Cleanliness available.
7
8 8
Dimensions for Quality Manufactured Products

Performance Features Reliability Conformance Durability Serviceability
basic operating characteristics of a product; how well a car is handled or its gas mileage extra items added to basic features, such as a stereo CD or a leather interior in a car probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years
Dimensions for Quality Services

Time and timeliness Completeness: Courtesy:
how long must a customer wait for service, and is it completed on time? is an overnight package delivered overnight? is everything customer asked for provided? is a mail order from a catalogue company complete when delivered? how are customers treated by employees? are catalogue phone operators nice and are their voices pleasant? is same level of service provided to each customer each time? is your newspaper delivered on time every morning? how easy is it to obtain service?
degree to which a product meets preestablished standards
how long product lasts before replacement? ease of getting repairs, speed of repairs, courtesy and competence of repair person how a product looks, feels, sounds, smells, or tastes? assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles subjective perceptions based on brand name, advertising, and like
9 9
Consistency
Accessibility and convenience

Accuracy Responsiveness
does service representative answer you calls quickly? is service performed right every time?
is your bank or credit card statement correct every month? how well does company react to unusual situations? how well is a telephone operator at able to respond to a customers questions?
10 10
Aesthetics
Safety Perceptions
Total Quality Management (TQM)

Philosophy that emphasizes on 3 principles for achieving high level of quality 1. Customer Satisfaction 2. Employee involvement 3. Continuous improvement
ProblemSolving Process
Deming Wheel (PDCA)
Plan
Customer satisfaction
-Conformance to specification - value - fitness for use - support - impression - Kaizen - keep improving - always have some room for improvement
11 11
Act
Do
Team and cultural changes
Check
12 12
PLAN DO CHECK ACT
WORKSHOP CASE TQM at State University
Plan
Team selects a process Assess existing performance use graphical tools Write out improvement plan and goal
Do
Implement plan and monitor the plan Collect data & document data
Check
Analyze collected data: use SPC (Statistical process control) Check against the goal that proposed in Plan
Act
If results are satisfied, implement the process and look for other improvement area If not, plan out the new improvement plan ACT becomes STANDARDIZED
Having to do more, better, with less

Fred Mcmahan
13 13 14 14
Common Concerns . . .
Reading
Root Cause Analysis at GM
How can we speed up the process?
How can we get cost down?
How can we eliminate waste?
How can we reduce our customers waiting time?
How can we deliver our service faster?
15 15
16 16
Problem Solving Tools & Techniques

Process Analysis / Flow Chart Check sheet Run chart Pareto chart
Process Analysis / Flow Chart

Provide big picture of how process works
Scatter Diagram Fishbone chart (cause-and-effect diagram)
Example of Flowchart of the Sales Process for a Consulting Company
17 17
18 18
Check Sheet
COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits Capacitors Resistors Transformers Commands CRT
|||| |||| |||| |||| |||| |||| || || |||| |
Run Chart
24 Show how variable / interested response has as changed over time
21
Number of defects
18 15 12 9 6 3 8 10 12 14 16 18 20 22
20 20
19 19
Working Hours
Control Chart
Identify unusual or out of control process with consideration of process variation 24
Pareto Chart at
UCL = 23.35 c = 12.67 Percent from each cause
70
60
(64)
21
Number of defects
18 15 12 9 6 3 2
Bar chart that shows majority of problems with minority causes
50 40 30 20 (13) 10 0
(10)
(6) (3) (2) (2)
LCL = 1.99
10
12
14
16
21
Sample number
Causes of poor quality
22
Scatter Diagram
Show correlation and relationship of two variables
Fishbone / Cause-and-Effect Diagram
Measurement
Faulty testing equipment Incorrect specifications Improper methods
Human
Poor supervision Lack of concentration Inadequate training
Machines
Out of adjustment Tooling problems Old / worn
Inaccurate temperature control
Quality Problem
Defective from vendor Not to specifications Poor process design Ineffective quality management Deficiencies in product design
Dust and Dirt
Materialhandling problems
X
Environment
Materials
Process
23
24

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Lecture Outline

09 - 10| Quality Management

Nature of quality Total quality management Fundamental quality tools

IM 203 Production and operations management

Which one has a higher quality?

When I hear, I forget. When I see, I remember. When I do, I understand

4 Source: Russell and TaylorIII (2005)

Meaning of Quality: Consumers Perspective

Fitness for Consumer Use

Quality Measure in Manufacturing Industry

Quality Measure in service industry

IM 203| Thammasat Business School

Dimensions for Quality Manufactured Products

Dimensions for Quality Services

degree to which a product meets preestablished standards

Accessibility and convenience

IM 203| Thammasat Business School

Total Quality Management (TQM)

Team and cultural changes

IM 203| Thammasat Business School

PLAN DO CHECK ACT

WORKSHOP CASE TQM at State University

Having to do more, better, with less

IM 203| Thammasat Business School

IM 203| Thammasat Business School

How can we speed up the process?

How can we get cost down?

How can we eliminate waste?

How can we reduce our customers waiting time?

How can we deliver our service faster?

IM 203| Thammasat Business School

IM 203| Thammasat Business School

Problem Solving Tools & Techniques

Process Analysis / Flow Chart

Scatter Diagram Fishbone chart (cause-and-effect diagram)

Example of Flowchart of the Sales Process for a Consulting Company

IM 203| Thammasat Business School

IM 203| Thammasat Business School

IM 203| Thammasat Business School

IM 203| Thammasat Business School

Bar chart that shows majority of problems with minority causes

IM 203| Thammasat Business School

Causes of poor quality

Fishbone / Cause-and-Effect Diagram

Inaccurate temperature control

Dust and Dirt

IM 203| Thammasat Business School

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