ch7(quality management)

8/18/2019 Ch7(Quality Management)

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©The McGraw-Hill Companies,


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Chapter 7

Quality Management


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• Total Quality Management Defined

• Quality Specifications and Costs

• Six Sigma Quality and Tools

• External Benchmarking

• ISO !!!• Ser"ice Quality Measurement

OB#ECTI$ES


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Total Quality Management %TQM&

Defined

• Total 'uality management is defined as

managing the entire organi(ation so that itexcels on all dimensions of products and

ser"ices that are important to the customer


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Quality Specifications

• Design 'uality) Inherent "alue of the product inthe marketplace

– Dimensions include) *erformance+ ,eatures+-elia.ility+ Dura.ility+ Ser"icea.ility+ -esponse+/esthetics+ and -eputation0

• Conformance 'uality) Degree to 1hich theproduct or ser"ice design specifications are met


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Costs of Quality

External Failure

Costs

Appraisal Costs

Prevention Costs

Internal Failure

Costs

Costs of

Quality


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Six Sigma Quality

• / philosophy and set of methods companies use

to eliminate defects in their products and

processes• Seeks to reduce "ariation in the processes that

lead to product defects

• The name+ 2six sigma3 refers to the "ariation

that exists 1ithin plus or minus three standard

de"iations of the process outputs

σ 3±


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Six Sigma Quality %Continued&

• Six Sigma allo1s managers to readily

descri.e process performance using acommon metric) Defects *er Million

Opportunities %D*MO&

1,000,000x

unitsof No. xunit

pererrorfor iesopportunit

of Number

efe!tsof Number

= DPMO 1,000,000x

unitsof No. xunit

pererrorforiesopportunit of Number

efe!tsof Number

= DPMO


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Six Sigma Quality %Continued&

Example of Defects *er Million

Opportunities %D*MO& calculation0Suppose 1e o.ser"e 4!! lettersdeli"ered incorrectly to the 1rongaddresses in a small city during a singleday 1hen a total of 4!!+!!! letters 1ere

deli"ered0 5hat is the D*MO in thissituation6

Example of Defects *er Million

Opportunities %D*MO& calculation0Suppose 1e o.ser"e 4!! lettersdeli"ered incorrectly to the 1rongaddresses in a small city during a singleday 1hen a total of 4!!+!!! letters 1ere

deli"ered0 5hat is the D*MO in thissituation6

[ ]000,1

==1,000,000x

200,000 x1

200 DPMO

[ ]

000,1== 1,000,000x

200,000 x1

200 DPMO

So, for every onemillion lettersdelivered thiscity’s postalmanagers canexpect to have,!!! letters

incorrectly sentto the "rongaddress#

So, for every onemillion letters

delivered thiscity’s postalmanagers canexpect to have,!!! lettersincorrectly sentto the "rongaddress#

Cost of Quality$ %hat might that &P'( mean in termsof over)time employment to correct the errors*

Cost of Quality$ %hat might that &P'( mean in termsof over)time employment to correct the errors*


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Six Sigma Quality) DM/IC Cycle

• Define+ Measure+ /naly(e+ Impro"e+ andControl %DM/IC&

• De"eloped .y 7eneral Electric as a means of

focusing effort on 'uality using amethodological approach

• O"erall focus of the methodology is to

understand and achie"e 1hat the customer1ants

• DM/IC consists of fi"e steps80


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Six Sigma Quality) DM/IC Cycle

%Continued&

90 Define %D&

40 Measure %M&

:0 /naly(e %/&

;0 Impro"e %I&


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/nalytical Tools for Six Sigma and

Continuous Impro"ement) ,lo1 Chart +o,Continue…

'aterialeceived

from

Supplier

Inspect

'aterial for

&efects&efects

found*

eturn to

Supplier

for Credit

-es

Can .e used to

find /uality

pro.lems

Can .e used to

find /uality

pro.lems


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Continuous Impro"ement) -un Chart

Can .e used to identify

"hen e/uipment or

processes are not

.ehaving according to

specifications

Can .e used to identify

"hen e/uipment or

processes are not

.ehaving according to

specifications

0.44

0.460.48

0.5

0.52

0.54

0.56

0.58

1 2 3 4 5 6 7 8 9 10 11 12

Time (Hours)

D i a m e t e r


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Continuous Impro"ement) *areto

/nalysisCan .e used

to find "hen

0!1 of the

pro.lemsmay .e

attri.uted to

2!1 of the

causes

Can .e used

to find "hen

0!1 of the

pro.lemsmay .e

attri.uted to

2!1 of the

causes

Ass.

!nstru"t.

# r e $ u e n "

Desi%n &ur"'. Trainin% t'er

80

1


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Continuous Impro"ement) Checksheet

3illing Errors

%rong Account

%rong Amount

A4 Errors

%rong Account

%rong Amount

'onday

Can .e used to 5eep trac5 of

defects or used to ma5e sure

people collect data in a

correct manner

Can .e used to 5eep trac5 of

defects or used to ma5e sure

people collect data in a

correct manner

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Continuous Impro"ement) =istogram

+ u m . e

r o f 6 o t s

&ata anges

&efects

in lot

0 1 2 3 4

Can .e used to identify the fre/uency of /uality

defect occurrence and display /uality

performance

Can .e used to identify the fre/uency of /uality

defect occurrence and display /uality

performance

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Continuous Impro"ement) Cause >

Effect Diagram

*++e"t

ana"'ine

ateria-et'o

*n/ironment

Possi.le causes$Possi.le causes$ 7he results

or effect

7he results

or effect

Can .e used to systematically trac5 .ac5"ards to

find a possi.le cause of a /uality pro.lem 8or

effect9

Can .e used to systematically trac5 .ac5"ards to

find a possi.le cause of a /uality pro.lem 8or

effect9

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Continuous Impro"ement) Control Charts

Can .e used to monitor ongoing production process

/uality and /uality conformance to stated standards of

/uality

Can .e used to monitor ongoing production process

/uality and /uality conformance to stated standards of

/uality

970

980

990

1000

1010

1020

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

6C6

:C6

1"


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Other Six Sigma Tools• Opportunity ,lo1 Diagram used to graphically

sho1 those acti"ities that add "alue from thosethat are performed %and may.e could .e reducedor remo"ed& that do not add "alue to the finishedproduct

• ,ailure Mode and Effect /nalysis %DME/& is astructured approach to identify+ estimate+prioriti(e+ and e"aluate risk of possi.le failures

at each stage in the process• Design of Experiments %DOE& a statistical test to

determine cause?and?effect relationships.et1een process "aria.les and output

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Six Sigma -oles and -esponsi.ilities

90 Executi"e leaders must champion the

process of impro"ement

40 Corporation?1ide training in Six Sigma

concepts and tools

:0 Setting stretch o.@ecti"es for impro"ement

;0 Continuous reinforcement and re1ards

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The Shingo System) ,ail?Safe Design

• ShingoAs argument) – SQC methods do not pre"ent defects

–

Defects arise 1hen people make errors – Defects can .e pre"ented .y pro"iding 1orkers 1ith

feed.ack on errors

• *oka?oke includes) – Checklists

– Special tooling that pre"ents 1orkers from makingerrors

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ISO !!!

• Series of standards agreed upon .y theInternational Organi(ation forStandardi(ation %ISO&

• /dopted in 9

• More than 9!! countries

• / prere'uisite for glo.al competition6

• ISO !!! directs you to document 1hat youdo and then do as you documented

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Three ,orms of ISO Certification

90 ,irst party) / firm audits itself against ISO

!!! standards

40 Second party) / customer audits its supplier

:0 Third party) / 'ualified national or

international standards or certifying agency

ser"es as auditor

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External Benchmarking Steps

90 Identify those processes needing impro"ement

40 Identify a firm that is the 1orld leader in

performing the process

:0 Contact the managers of that company and

make a personal "isit to inter"ie1 managers

and 1orkers

;0 /naly(e data

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Ser"ice Quality Measurement)Ser"'ual

• / percei"ed ser"ice 'uality 'uestionnairesur"ey methodology

• Examines 2Dimensions of Ser"ice Quality3including) -elia.ility+ -esponsi"eness+

/ssurance+ Empathy+ and Tangi.les %e0g0+

appearance of physical facilities+e'uipment+ etc0&

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Ser"ice Quality Measurement) Ser"'ual

%Continued&

• Fe1 "ersion of this methodology is called2e?Ser"ice Quality3 dealing ser"ice on

the Internet

• Dimensions of Ser"ice Quality on the e?Ser"ice methodology include) -elia.ility+

-esponsi"eness+ /ccess+ ,lexi.ility+ Ease

of Fa"igation+ Efficiency+/ssuranceGTrust+ SecurityG*ri"acy+ *rice

Hno1ledge+ Site /esthetics+ and

Customi(ationG*ersonali(ation

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