This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
PowerPoint presentation to accompanyPowerPoint presentation to accompany Heizer/Render Heizer/Render Operations Management, 8e Operations Management, 8e
Our Faith in Quality of SystemsOur Faith in Quality of Systems
Have you ever checked a bridge on a Have you ever checked a bridge on a highway before you drove over it with highway before you drove over it with your car?your car?
Have you ever checked the validity of Have you ever checked the validity of the claims on the bottle of your pills?the claims on the bottle of your pills?
Have you ever asked a pilot for her Have you ever asked a pilot for her license before your flight?license before your flight?
Have you ever asked you doctor for Have you ever asked you doctor for his certificate in medicine? his certificate in medicine?
Why should you consider the ideas?Why should you consider the ideas?
Quality Failures ExamplesQuality Failures Examples The big dig panel fell on a car and The big dig panel fell on a car and
killed a lady (product defect)killed a lady (product defect)
A trained doctor who turned into A trained doctor who turned into cosmetic surgeon without a license or cosmetic surgeon without a license or training in area (fake service)training in area (fake service)
Hospital operates patient on wrong leg Hospital operates patient on wrong leg (service error)(service error)
Institutional Practices for Quality Institutional Practices for Quality Assurance: History 13Assurance: History 13thth – 19 – 19thth Century Century
From the end of the 13th century to the early 19th From the end of the 13th century to the early 19th century, craftsmen across medieval Europe were century, craftsmen across medieval Europe were organized into unions called guilds, who developed organized into unions called guilds, who developed strict rules for product and service quality. strict rules for product and service quality.
Inspection committees enforced the rules by Inspection committees enforced the rules by marking flawless goods with a special mark or marking flawless goods with a special mark or symbol.symbol.
Craftsmen themselves often placed a second mark Craftsmen themselves often placed a second mark on the goods they produced. At first this mark was on the goods they produced. At first this mark was used to track the origin of faulty items. used to track the origin of faulty items.
But over time the mark came to represent a But over time the mark came to represent a craftsman’s good reputation. Inspection marks and craftsman’s good reputation. Inspection marks and master-craftsmen marks served as proof of quality master-craftsmen marks served as proof of quality for customers throughout medieval Europe. for customers throughout medieval Europe.
Weaknesses of Medieval Quality Weaknesses of Medieval Quality Assurance PracticesAssurance Practices
Products got more diverse Products got more diverse
Products got more complex and knowledge Products got more complex and knowledge intensiveintensive
Ways of defining quality by the guilds were diverseWays of defining quality by the guilds were diverse
It relied on manual inspection of goods by outside It relied on manual inspection of goods by outside guildsguilds
It slowed down the delivery of goodsIt slowed down the delivery of goods
Mass production era produced more units per day Mass production era produced more units per day than could be manually inspected (staffing, cost than could be manually inspected (staffing, cost and time issues)and time issues)
A New Approach was needed !!!A New Approach was needed !!!
Statistical-Approaches for Quality : 20Statistical-Approaches for Quality : 20thth CenturyCentury
During the World War II (from 1941), US military During the World War II (from 1941), US military products were inspected on delivery to ensure products were inspected on delivery to ensure conformance to requirements. The U.S. armed conformance to requirements. The U.S. armed forces inspected virtually every unit produced to forces inspected virtually every unit produced to ensure that it was safe for operation. This practice ensure that it was safe for operation. This practice required huge inspection forces and caused required huge inspection forces and caused problems in recruiting competent inspection problems in recruiting competent inspection personnel.personnel.
To ease the problems without compromising To ease the problems without compromising product safety, the armed forces began to use product safety, the armed forces began to use sampling inspection to replace unit-by-unit sampling inspection to replace unit-by-unit inspection. Industry consultants, particularly from inspection. Industry consultants, particularly from Bell Laboratories, helped develop sampling tables Bell Laboratories, helped develop sampling tables and published them in a military standard, known and published them in a military standard, known as Mil-Std-105. Later became known as statistical as Mil-Std-105. Later became known as statistical control charts. control charts.
Statistical-Approaches for Quality : Statistical-Approaches for Quality : After World War IIAfter World War II
After the World War II, Japanese manufacturers After the World War II, Japanese manufacturers converted plants from producing military to converted plants from producing military to producing civilian goods for trade. Initially, producing civilian goods for trade. Initially, Japanese goods were shoddy and could not be sold Japanese goods were shoddy and could not be sold as exports in international markets. Japanese firms as exports in international markets. Japanese firms asked American statisticians for help.asked American statisticians for help.
W. Edwards Deming, was frustrated with American , was frustrated with American managers for their termination of the use of quality managers for their termination of the use of quality control methods after the war. He introduced his 14-control methods after the war. He introduced his 14-points approach, of focusing on the System and not points approach, of focusing on the System and not on inspection to improve quality, in Japan plants.on inspection to improve quality, in Japan plants.
Joseph M. Juran, trained Japanese managers about , trained Japanese managers about role of top managers, customers defining quality, role of top managers, customers defining quality, involvement of everyone and continuous involvement of everyone and continuous improvement. improvement.
America Gets the Message of America Gets the Message of Statistical-Approaches for Quality :Statistical-Approaches for Quality :
In the 1970s, price advantages and quality In the 1970s, price advantages and quality competitiveness of Japanese continued to rise. A competitiveness of Japanese continued to rise. A 1980 NBC-TV News special report examined the 1980 NBC-TV News special report examined the question of quality, “If Japan Can… Why Can’t We?” question of quality, “If Japan Can… Why Can’t We?” . It captured the attention from national legislators, . It captured the attention from national legislators, administrators and the media. administrators and the media.
Congress passed a law intended to increase Congress passed a law intended to increase competitiveness through quality improvement and it competitiveness through quality improvement and it introduced a national quality award called Malcolm introduced a national quality award called Malcolm Baldrige National Quality Award. Baldrige National Quality Award. http://www.quality.nist.gov/
U.S. firms began to listen and focus on quality in U.S. firms began to listen and focus on quality in their strategies and in projects and in the training of their strategies and in projects and in the training of staff. The U.S. response, emphasized not only staff. The U.S. response, emphasized not only statistics but also a holistic set of principles that statistics but also a holistic set of principles that became known as Total Quality Management (TQM). became known as Total Quality Management (TQM).
Quality Models by National Quality Models by National AgenciesAgencies
Malcom Baldrige National Quality Malcom Baldrige National Quality AwardAward was established in 1988 by was established in 1988 by the U.S. governmentthe U.S. government
Designed to promote TQM practices in Manufacturing, Designed to promote TQM practices in Manufacturing, government, non-profit and services sectorsgovernment, non-profit and services sectors
Quality Models by Industrial Quality Models by Industrial Sector AgentsSector Agents
Capability Maturity Model Integration Capability Maturity Model Integration for improving quality of the Software for improving quality of the Software development industrydevelopment industry
Quality model for the automotive Quality model for the automotive industryindustry
Company-driven quality initiatives, Company-driven quality initiatives, e.g. Six sigma qualitye.g. Six sigma quality
2.2. External failure CostsExternal failure Costs Liability costsLiability costs Loss of livesLoss of lives Harm to healthHarm to health Harm to environmentHarm to environment Customer defectionsCustomer defections
-Process improvementProcess improvement-Quality programQuality program-Quality trainingQuality training-Process improvementProcess improvement-Statistical processStatistical process control control-Quality auditQuality audit
-Right things -Right things done late done late-Right things doneRight things done-Right things notRight things not done done- Right things doneRight things done poorly poorly-Wrong thingsWrong things donedone
-Right behaviors-Right behaviorsand practicesand practicesleading to right leading to right things being donethings being doneand in timely and in timely manner, all the timemanner, all the time
How Quality Practices Affect How Quality Practices Affect Organizational PerformanceOrganizational Performance
Organizational PracticesLeadership, Mission statement, Effective operating procedures, Staff support, TrainingYields: What is important (priorities, resources) and what is to be accomplished (objectives, purposes)
Quality PrinciplesCustomer focus, Continuous improvement, Benchmarking, Just-in-time, Tools of TQMYields: How well a firm will perform what is important and things to be accomplished (standards of execution)
Employee FulfilmentEmpowerment, Organizational commitmentYields: Employee attitudes that can accomplish what is important (motivation, participation)
Customer SatisfactionWinning orders, Repeat customersYields: An effective organization with a competitive advantage (results, retention, satisfaction, growth)
Department of Motor Vehicles (DMV)Department of Motor Vehicles (DMV) What do you think would be the important thing to an What do you think would be the important thing to an
employee of the DMV when reviewing supporting employee of the DMV when reviewing supporting documentation of an applicant?documentation of an applicant?
What do you think would be the important thing to an What do you think would be the important thing to an applicant for a license with regard to documents that applicant for a license with regard to documents that s/he brings to support her/his application?s/he brings to support her/his application?
What do you think would be the important expectation What do you think would be the important expectation of the police department with regard to the DMV of the police department with regard to the DMV issued licenses? issued licenses?
User-based – better performance, User-based – better performance, more featuresmore features
Manufacturing-based – Manufacturing-based – conformance to standards, conformance to standards, making it right the first timemaking it right the first time
Product-based – specific and Product-based – specific and measurable attributes of the measurable attributes of the product product
Ethics and Quality Ethics and Quality ManagementManagement
Operations managers must Operations managers must deliver healthy, safe, quality deliver healthy, safe, quality products and servicesproducts and services
Poor quality risks injuries, Poor quality risks injuries, lawsuits, recalls, and regulationlawsuits, recalls, and regulation
Organizations are judged by Organizations are judged by how they respond to problemshow they respond to problems
Encompasses entire organization, Encompasses entire organization, from supplier to customerfrom supplier to customer
Stresses a commitment by Stresses a commitment by management to have a continuing, management to have a continuing,
companywide drive toward companywide drive toward excellence in all aspects of products excellence in all aspects of products and services that are important to the and services that are important to the
Define measures, collect data and analyze Define measures, collect data and analyze data about performance using TQM toolsdata about performance using TQM tools
Continuous improvement orientationContinuous improvement orientation Focus on improving continuously not in Focus on improving continuously not in
haphazard or impulsive mannerhaphazard or impulsive manner
Prevention orientationPrevention orientation Prevention of errors is cheaper and more Prevention of errors is cheaper and more
effective than detecting and removing themeffective than detecting and removing them
Variation Elimination orientationVariation Elimination orientation Focus on recognizing and eliminating the Focus on recognizing and eliminating the
root causes of variations in your systems.root causes of variations in your systems.