Management of Quality
Operations Management
William J. Stevenson
8th edition
9-2
Management of Quality
CHAPTER
Management
of Quality
McGraw-Hill/Irwin
9-3
Management of Quality
Quality Management
9-4
Management of Quality
9-5
Management of Quality
Quality Assurance
Strategic Approach
Proactive, focusing on preventing mistakes
from occurring
Greater emphasis on customer satisfaction
9-6
Management of Quality
Walter Shewhart
W. Edwards Deming
Joseph M. Juran
Armand Feignbaum
Philip B. Crosby
Kaoru Ishikawa
Genichi Taguchi
9-7
Management of Quality
Quality
Deming
Juran
Feignbaum
Crosby
Ishikawa
Taguchi
9-8
Management of Quality
Dimensions of Quality
9-9
Management of Quality
9-10
Management of Quality
Dimension
(Product)
Automobile
(Service)
Auto Repair
1. Performance
2. Aesthetics
9-11
Management of Quality
(Service)
Auto Repair
5. Reliability
Infrequency of breakdowns
6. Durability
7. Perceived
quality
Top-rated car
Award-winning service
department
9-12
Management of Quality
Service Quality
Tangibles
Convenience
Reliability
Responsiveness
Time
Assurance
Courtesy
9-13
Management of Quality
Dimension
Examples
1. Tangibles
2. Convenience
3. Reliability
4. Responsiveness
5. Time
6. Assurance
7. Courtesy
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Management of Quality
Determinants of Quality
Design
Ease of
use
Conforms
to design
Service
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Management of Quality
Quality of design
Quality of conformance
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Management of Quality
9-17
Management of Quality
9-18
Management of Quality
Costs of Quality
9-19
Management of Quality
Appraisal Costs
Prevention Costs
9-20
Management of Quality
Substandard work
Defective products
Substandard service
Poor designs
Shoddy workmanship
Substandard parts and materials
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Management of Quality
Quality Awards
Baldrige Award
Deming Prize
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Management of Quality
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Management of Quality
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Management of Quality
9-25
Management of Quality
Quality Certification
ISO 9000
ISO 14000
9-26
Management of Quality
ISO 14000
ISO 14000 - A set of international standards
for assessing a companys environmental
performance
Standards in three major areas
Management systems
Operations
Environmental systems
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Management of Quality
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Management of Quality
3.
4.
5.
9-29
Management of Quality
Elements of TQM
Continual improvement
Competitive benchmarking
Employee empowerment
Team approach
Decisions based on facts
Knowledge of tools
Supplier quality
Champion
Quality at the source
Suppliers
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Management of Quality
Continuous Improvement
Kaizen: Japanese
word for continuous
improvement.
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Management of Quality
9-32
Management of Quality
Six Sigma
Statistically
Conceptually
Program designed to reduce defects
Requires the use of certain tools and
techniques
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Management of Quality
Employed in
Design
Production
Service
Inventory management
Delivery
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Management of Quality
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Management of Quality
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Management of Quality
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Management of Quality
DMAIC
9-38
Management of Quality
Lack of:
Company-wide definition of quality
Strategic plan for change
Customer focus
Real employee empowerment
Strong strong motivation
Time to devote to quality initiatives
Leadership
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Management of Quality
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Management of Quality
Criticisms of TQM
Blind pursuit of TQM programs
Programs may not be linked to strategies
Quality-related decisions may not be tied to
market performance
Failure to carefully plan a program
9-41
Management of Quality
1.
2.
3.
4.
5.
6.
7.
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Management of Quality
Act
Do
Study
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Management of Quality
Process Improvement
Process Improvement: A systematic
approach to improving a process
Process mapping
Analyze the process
Redesign the process
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Management of Quality
Seek ways to
Improve it
Implement the
Improved process
Design an
Improved process
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Management of Quality
Process mapping
Tools
There are a number of tools that can be used for problem solving and process
improvement
Tools aid in data collection and interpretation, and provide the basis for decision
making
9-46
Management of Quality
Flowcharts
Check sheets
Histograms
Pareto Charts
Scatter diagrams
Control charts
Cause-and-effect diagrams
Run charts
9-47
Management of Quality
Check Sheet
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Monday
Management of Quality
80%
80%of
of the
the
problems
problems
may
may be
be
attributed
attributed to
to
20%
20%of
of the
the
causes.
causes.
Pareto Analysis
Number of defects
9-48
Off
Smeared Missing Loose Other
center print
label
9-49
Management of Quality
Control Chart
Figure 9.11
1020
UCL
1010
1000
990
LCL
980
970
0
9 10 11 12 13 14 15
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Management of Quality
Cause-and-Effect Diagram
Figure 9.12
Methods
Cause
Environment
Materials
Cause
Cause
Cause
Cause
Cause
Cause
People
Cause
Cause
Cause
Cause
Cause
Equipment
Effect
Diameter
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Management of Quality
Run Chart
0.58
0.56
0.54
0.52
0.5
0.48
0.46
0.44
1
Time (Hours)
10 11 12
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Management of Quality
Tracking Improvements
Figure 9-17
UCL
UCL
LCL
LCL
Process centered
Process not centered and stable
and not stable
UCL
LCL
Additional improvements
made to the process
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Management of Quality
Brainstorming
Quality circles
Interviewing
Benchmarking
5W2H
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Management of Quality
Benchmarking Process
Identify a critical process that needs
improving
Identify an organization that excels in this
process
Contact that organization
Analyze the data
Improve the critical process
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Management of Quality
CHAPTER
9-56
Management of Quality
GURUS
DEMING
JURAN
CROSBY
ISHIKAWA
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Management of Quality
7 Basic Tools
Flow Chart
Check Sheet
Histogram
Pareto Chart
Scatter Diagram
Cause & Effect Diagram
Statistical Process Control
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Management of Quality
Drive in
shut off
engine
walk to pay
station
yes
no
check card transmit
approved?
turn on
pump
back
to car
pump
gas
walk to
booth
wait
yes
no
copy to
file
employee
totals
charges
check
accuracy
prepare
receipt
sign
copy
copy to
wallet
return to car
on the road
again
9-59
Management of Quality
Drive in
check
price
shut off
engine
go to
pump
self-serve?
yes
insert
card
in pump
no
approved?
check
credit card
wait
yes
wait for
receipt
store in system
on the road
again
pump gas
no
copy to
wallet
Management of Quality
Example
Exam Score
9-60
Homework Problems
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Management of Quality
Quality/Safety
STA09
Pixux systems
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Management of Quality
Service, Personnel
SDHM5
Training, guestware support