9-1 Management Science – 2 Management Science – 2 Introduction to Quality Introduction to Quality Total Quality Management Total Quality Management
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Management Science – 2 Management Science – 2
Introduction to Quality Introduction to Quality Total Quality Management Total Quality Management
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Quality ManagementQuality Management
What does the term quality mean?
Quality is the ability of a product or service to consistently meet or exceed customer expectations.
degree of excellence of a thing.
Totality of features and characteristics that satisfy needs
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Evolution of Quality ManagementEvolution of Quality Management
Fredrick Taylor (Scientific Management) 1924 - Statistical process control charts 1930 - Tables for acceptance sampling 1940’s - Statistical sampling techniques 1950’s - Quality assurance/TQC (DEMING)
1960’s - Zero defects 1970’s - Quality assurance in services
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Quality Assurance vs. Strategic Quality Assurance vs. Strategic ApproachApproach
Quality Assurance Emphasis on finding and correcting defects
before reaching market
Strategic Approach Proactive, focusing on preventing mistakes
from occurring Greater emphasis on customer satisfaction
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Dimensions of QualityDimensions of Quality
Performance basic operating characteristics of a product; how
well a car is handled.
Features “extra” items added to basic features, such as a
stereo CD or a leather interior in a car
Reliability probability that a product will operate properly
within an expected time frame; that is, a TV will work without repair for about seven years
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Dimensions of Quality (Cont’d)Dimensions of Quality (Cont’d)
Conformance degree to which a product meets pre–
established standards Durability
how long product lasts before replacement Serviceability
ease of getting repairs, speed of repairs, courtesy and competence of repair person
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Dimensions of Quality (Cont’d)Dimensions of Quality (Cont’d)
Aesthetics how a product looks, feels, sounds, smells, or
tastes
Safety assurance that customer will not suffer injury or
harm from a product; an especially important consideration for automobiles
Perceptions subjective perceptions based on brand name,
advertising, and the like
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Examples of Quality DimensionsExamples of Quality DimensionsDimension
1. Performance 2. Aesthetics 3. Special features
(Product) Automobile
Everything works, fit & finish Ride, handling, grade of materials used Interior design, soft touch Gauge/control placement Cellular phone, CD player
(Service) Auto Repair
All work done, at agreed priceFriendliness, courtesy, Competency, quickness Clean work/waiting area Location, call when ready Computer diagnostics
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Examples of Quality Dimensions Examples of Quality Dimensions (Cont’d)(Cont’d)
Dimension
5. Reliability 6. Durability 7. Perceived quality 8. Serviceability
(Product) Automobile
Infrequency of breakdowns Useful life in miles, resistance to rust & corrosion Top-rated car Handling of complaints and/or requests for information
(Service) Auto Repair
Work done correctly, ready when promised Work holds up over time Award-winning service department Handling of complaints
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Dimensions of Quality: ServiceDimensions of Quality: Service
Time and Timeliness How long must a customer wait for service, and
is it completed on time? Is an overnight package delivered overnight?
Completeness: Is everything customer asked for provided? Is a mail order from a catalogue company
complete when delivered?
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Dimensions of Quality: ServiceDimensions of Quality: Service
Courtesy: How are customers treated by employees? Are catalogue phone operators nice and are their
voices pleasant?
Consistency Is the same level of service provided to each
customer each time? Is your newspaper delivered on time every
morning?
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Dimensions of Quality: ServiceDimensions of Quality: Service
Accessibility and convenience How easy is it to obtain service? Does a service representative answer you calls
quickly?
Accuracy Is the service performed right every time? Is your bank or credit card statement correct
every month?
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Dimensions of Quality: ServiceDimensions of Quality: Service
Responsiveness How well does the company react to unusual
situations? How well is a telephone operator able to respond
to a customer’s questions?
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Challenges with Service QualityChallenges with Service Quality
Customer expectations often change Different customers have different
expectations Each customer contact is a “moment of truth” Customer participation can affect perception
of quality Fail-staffing must be designed into the
system
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Quality GurusQuality Gurus
Walter Shewart In 1920s, developed control charts Introduced the term “quality assurance”
W. Edwards Deming Developed courses during World War II to teach
statistical quality-control techniques to engineers and executives of companies that were military suppliers
After the war, began teaching statistical quality control to Japanese companies
Joseph M. Juran Followed Deming to Japan in 1954 Focused on strategic quality planning
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Quality Gurus (cont.)Quality Gurus (cont.)
Armand V. Feigenbaum In 1951, introduced concepts of total quality control and
continuous quality improvement Philip Crosby
In 1979, emphasized that costs of poor quality far outweigh the cost of preventing poor quality
In 1984, defined absolutes of quality management—conformance to requirements, prevention, and “zero defects”
Kaoru Ishikawa Promoted use of quality circles Developed “fishbone” diagram Emphasized importance of internal customer
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Determinants of Quality (cont’d)Determinants of Quality (cont’d)
Quality of design Intension of designers to include or exclude
features in a product or service: Different car models with different features
size Appearance Roominess Fuel economy Comfort Material used
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Determinants of Quality (cont’d)Determinants of Quality (cont’d)
Quality of Conformance Making sure a product or service is produced
according to design: if new tires do not conform to specifications, they
wobble if a hotel room is not clean when a guest checks in,
the hotel is not functioning according to specifications of its design
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The Consequences of Poor QualityThe Consequences of Poor Quality
Loss of business Liability Productivity Costs
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Benefits of Good Quality Benefits of Good Quality
Organizations will benefit in different way:
Enhance reputation Increase market share Greater customer loyalty Lower liability Cost Fewer complains Lower production cost Higher profits
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Top management Design Procurement Production/operations Quality assurance Packaging and shipping Marketing and sales Customer service
Responsibility for QualityResponsibility for Quality
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Costs of QualityCosts of Quality
Failure Costs - costs incurred by defective parts/products or faulty services.
Internal Failure Costs Costs incurred to fix problems that are
detected during the production. Defective materials
Incorrect machine setting
Faulty equipment
Carelessness
Wrong procedure
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Costs of QualityCosts of Quality
External Failure Costs
All costs incurred to fix problems that are detected after the product/service is delivered to the customer.
Warranty work
Handling of complains
Replacement
Liability
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Costs of Quality (continued)Costs of Quality (continued)
Appraisal Costs Costs of activities designed to ensure
quality or uncover defects Cost of inspector Testing Test equipment Labs Field testing
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Costs of Quality (continued)Costs of Quality (continued)
Prevention Costs Cost of preventing defects form occurring
Planning and adminstration Working with vendors Training Quality control procedures
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Total Quality ManagementTotal Quality Management
A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
Continuous Improvement Involvement of Everyone Customer Satisfaction
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Elements of TQMElements of TQM
1. Continual improvement (never ending)
2. Competitive benchmarking 3. Employee empowerment 4. Team approach5. Decisions based on facts6. Knowledge of tools7. Supplier quality8. Champion 9. Quality at the source10.Suppliers
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Quality at the SourceQuality at the Source
The philosophy of making each worker responsible for
the quality of his or her work.
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Basic Quality ToolsBasic Quality Tools
Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams Control charts Cause-and-effect diagrams Run charts
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Quality ToolsQuality Tools
Flow Chart :displays the steps in a process showing order and relationships helps in understanding of that process and identifies potential weaknesses i.e. poor performance
Cause and EffectAlso know as fishbone or Ishikawa
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Quality ToolsQuality Tools
Histogramdisplaying variation in a processtrying to explain the cause of itNote: Box Whisker Plots would be auseful addition to this
Pareto Charta form of bar-chart which displaysthe relative importance of problemsor conditions by ordering frequencyand showing the cumulative effect
Scatter Graph looks for relationships between factors and displays their strength
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Quality ToolsQuality Tools
Clustering Reduces complexity or size of data set by grouping ideas under headingsUseful for qualitative data from questionnaires
Filtering ideas Reduces ideas by asking questions e.g. Is the idea feasible? Affordable? Is it within our control? Would it improve the situation?
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Check SheetCheck Sheet
COMPONENTS REPLACED BY LABTIME PERIOD: 22 Feb to 27 Feb 2002REPAIR TECHNICIAN: Bob
TV SET MODEL 1013
Integrated Circuits ||||Capacitors |||| |||| |||| |||| |||| ||Resistors ||Transformers ||||CommandsCRT |
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Cause-and-Effect DiagramCause-and-Effect DiagramFigure 9.12
QualityProblemQuality
Problem
Out of adjustmentOut of adjustment
Tooling problemsTooling problems
Old / wornOld / worn
MachinesMachines
FaultyFaulty testing equipmenttesting equipment
Incorrect specificationsIncorrect specifications
Improper methodsImproper methods
MeasurementMeasurement
Poor supervisionPoor supervision
Lack of concentrationLack of concentration
Inadequate trainingInadequate training
HumanHuman
DeficienciesDeficienciesin product designin product design
Ineffective qualityIneffective qualitymanagementmanagement
Poor process designPoor process design
ProcessProcess
InaccurateInaccuratetemperature temperature controlcontrol
Dust and DirtDust and Dirt
EnvironmentEnvironment
Defective from vendorDefective from vendor
Not to specificationsNot to specifications
Material-Material-handling problemshandling problems
MaterialsMaterials
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Methods for Generating IdeasMethods for Generating Ideas
Brainstorming
Quality circles
Interviewing
Benchmarking