Quality: Management of Quality Pertemuan 11 Mata kuliah : J0444 - Manajemen Operasional Tahun : 2010
Jan 21, 2016
Quality: Management of Quality
Pertemuan 11
Mata kuliah : J0444 - Manajemen OperasionalTahun : 2010
Learning Objectives
• Define the term quality. • Explain why quality is important and the
consequences of poor quality. • Identify the determinants of quality. • Describe the costs associated with quality. • Describe the quality awards. • Discuss the philosophies of quality gurus. • Describe TQM. • Give an overview of process improvement. • Describe and use various quality tools.
Quality Management
• What does the term quality mean?
• Quality is the ability of a product or service to consistently meet or exceed customer expectations.
Definitions of Quality
• ASC: Product characteristics & features that affect customer satisfaction
• User-Based: What consumer says it is• Manufacturing-Based: Degree to which a
product conforms to design specification• Product-Based: Level of measurable product
characteristic
Quality Principles
• Customer focus• Continuous improvement• Employee empowerment• Benchmarking• Just-in-time• Tools of TQM
Yields: How to do what is important and to be accomplished
Dimensions of Quality
• Performance - main characteristics of the product/service
• Aesthetics - appearance, feel, smell, taste
• Special Features - extra characteristics
• Conformance - how well product/service conforms to customer’s expectations
• Reliability - consistency of performance
Dimensions of Quality (Cont’d)
• Durability - useful life of the product/service
• Perceived Quality - indirect evaluation of quality (e.g. reputation)
• Serviceability - service after sale
Examples 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 price Friendliness, courtesy, Competency, quickness Clean work/waiting area Location, call when ready Computer diagnostics
Examples of Quality Dimensions
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
Service Quality
• Convenience• Reliability• Responsiveness• Time• Assurance• Courtesy• Tangibles
Examples of Service Quality
Dimension Examples1. Convenience Was the service center conveniently located?
2. Reliability Was the problem fixed?
3. Responsiveness Were customer service personnel willing and able to answer questions?
4. Time How long did the customer wait?
5. Assurance Did the customer service personnel seem knowledgeable about the repair?
6. Courtesy Were customer service personnel and the cashierfriendly and courteous?
7. Tangibles Were the facilities clean, personnel neat?
Challenges 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-safing must be designed into the system
Determinants of Quality
Service
Ease ofuse
Conforms to design
Design
Determinants of Quality (cont’d)
• Quality of design– Intension of designers to include or exclude
features in a product or service
• Quality of conformance– The degree to which goods or services
conform to the intent of the designers
The Consequences of Poor Quality
• Loss of business• Liability• Productivity• Costs
• Top management• Design• Procurement• Production/operations• Quality assurance• Packaging and shipping• Marketing and sales• Customer service
Responsibility for Quality
Costs of Quality
• Failure Costs - costs incurred by defective parts/products or faulty services.
• Internal Failure Costs– Costs incurred to fix problems that are
detected before the product/service is delivered to the customer.
• External Failure Costs– All costs incurred to fix problems that are
detected after the product/service is delivered to the customer.
Costs of Quality (continued)
• Appraisal Costs– Costs of activities designed to ensure
quality or uncover defects
• Prevention Costs– All TQ training, TQ planning, customer
assessment, process control, and quality improvement costs to prevent defects from occurring
• Substandard work– Defective products– Substandard service– Poor designs– Shoddy workmanship– Substandard parts and materials
Ethics and Quality
Having knowledge of this and failing to correctand report it in a timely manner is unethical.
Quality Awards
Baldrige Award
Deming Prize
Malcolm Baldrige National Quality Award
•1.0 Leadership (125 points)
•2.0 Strategic Planning (85 points)
•3.0 Customer and Market Focus (85 points)
•4.0 Information and Analysis (85 points)
•5.0 Human Resource Focus (85 points)
•6.0 Process Management (85 points)
•7.0 Business Results (450 points)
Benefits of Baldrige Competition
• Financial success• Winners share their knowledge• The process motivates employees• The process provides a well-designed
quality system• The process requires obtaining data• The process provides feedback
Quality Certification
• ISO 9000
– Set of international standards on quality management and quality assurance, critical to international business
• ISO 14000– A set of international standards for
assessing a company’s environmental performance
ISO 9000 Standards
Requirements
• System requirements
• Management
• Resource
• Realization
• Remedial
• ISO 14000 - A set of international standards for assessing a company’s environmental performance
• Standards in three major areas– Management systems– Operations– Environmental systems
ISO 14000
• Management systems– Systems development and integration of
environmental responsibilities into business planning
• Operations– Consumption of natural resources and
energy• Environmental systems
– Measuring, assessing and managing emissions, effluents, and other waste
ISO 14000
Total Quality Management
A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
T Q M
Organizational Practices
Quality Principles
Employee Fulfillment
Attitudes (e.g., Commitment)
How to Do
What to Do
EffectiveBusiness
EffectiveBusiness
CustomerSatisfaction
CustomerSatisfaction
Achieving Total Quality Management
Concepts of TQM
• Continuous improvement• Employee empowerment• Benchmarking• Just-in-time (JIT)• Taguchi concepts• Knowledge of TQM tools
Continuous Improvement
Represents continual improvement of process & customer satisfaction
Involves all operations & work units
Other names Kaizen (Japanese) Zero-defects Six sigma
Shewhart’s PDCA Model
4.Act 1.Plan
3.Check 2.Do
Identify the improvement and make a plan
Test the planIs the plan working
Implement the plan
Employee Empowerment
Getting employees involved in product & process improvements 85% of quality problems are due to process &
material
Techniques Support workers Let workers make decisions Build teams & quality circles
© 1995 Corel Corp.
Benchmarking
Selecting best practices to use as a standard for performance
• Determine what to benchmark• Form a benchmark team• Identify benchmarking partners• Collect and analyze benchmarking
information• Take action to match or exceed the
benchmark
Just-in-Time (JIT)
Relationship to quality:– JIT cuts cost of quality– JIT improves quality– Better quality means less inventory and
better, easier-to-employ JIT system
Just-in-Time (JIT)
• ‘Pull’ system of production/purchasing– Customer starts production with an order
• Involves ‘vendor partnership programs’ to improve quality of purchased items
• Reduces all inventory levels– Inventory hides process & material
problems• Improves process & product quality
Taguchi Techniques
• Experimental design methods to improve product & process design– Identify key component & process variables
affecting product variation• Taguchi Concepts
– Quality robustness– Quality loss function– Target specifications
• Ability to produce products uniformly regardless of manufacturing conditions
• Put robustness in House of Quality matrices besides functionality © 1984-1994 T/Maker Co.
© 1995 Corel Corp.
Quality Robustness
• Shows social cost ($) of deviation from target value• Assumptions
– Most measurable quality characteristics (e.g., length, weight) have a target value
– Deviations from target value are undesirable• Equation: L = D2C
– L = Loss ($); D = Deviation; C = Cost
Quality Loss Function
Freq.
XTarget USLLSL
A study found U.S. consumers preferred Sony TV’s made in Japan to those made in the U.S. Both factories used the same designs & specifications. The difference in quality goals made the difference in consumer preferences.
Japanese factory (Target-oriented)
U.S. factory (Conformance-oriented)
Target Specification Example
Seven Tools for TQM
Tools of TQM
• Tools for generating ideas– Check sheet– Scatter diagram– Cause and effect diagram
• Tools to organize data– Pareto charts– Process charts (Flow diagrams)
• Tools for identifying problems– Histograms– Control chart
Check Sheet
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Monday
• Used to find problem sources/solutions• Other names
– Fish-bone diagram, Ishikawa diagram• Steps
– Identify problem to correct– Draw main causes for problem as ‘bones’– Ask ‘What could have caused problems in
these areas?’ Repeat for each sub-area.
Cause and Effect Diagram
Too many defects
Too many defects
Problem
Cause and Effect Diagram Example
Method Manpower
Material Machinery
Too many defects
Too many defects
Main Cause
Main Cause
Cause and Effect Diagram Example
Method Manpower
Material Machinery
DrillDrillDrillDrillOvertimeOvertimeOvertimeOvertime
SteelSteelSteelSteel
WoodWoodWoodWood
LatheLatheLatheLathe
Too many defects
Too many defects
Sub-Cause
Cause and Effect Diagram Example
Method Manpower
Material Machinery
DrillDrillDrillDrillOvertimeOvertimeOvertimeOvertime
SteelSteelSteelSteel
WoodWoodWoodWood
LatheLatheLatheLathe
Too many defects
Too many defects
TiredTiredTiredTired
OldOldOldOld
SlowSlowSlowSlow
Cause and Effect Diagram Example
Control Chart
970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL
Six Sigma
• Statistically– Having no more than 3.4 defects per million
• Conceptually– Program designed to reduce defects– Requires the use of certain tools and
techniques
Six sigma: A business process for improvingquality, reducing costs, and increasingcustomer satisfaction.
Six Sigma Programs
• Six Sigma programs – Improve quality– Save time– Cut costs
• Employed in – Design– Production– Service– Inventory management– Delivery
Six Sigma Management
• Providing strong leadership• Defining performance metrics• Selecting projects likely to succeed• Selecting and training appropriate people
Six Sigma Technical
• Improving process performance• Reducing variation• Utilizing statistical models• Designing a structured improvement
strategy
Six Sigma Team
• Top management• Program champions• Master “black belts”• “Black belts”• “Green belts”
Six Sigma Process
• Define• Measure• Analyze• Improve• Control
DMAIC
The End