mba 8452 systems and operations management
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MBA 8452 Systems and Operations Management. Quality Management. Introduction to Operations Management/ Operations Strategy. Process Control and Improvement. Process Analysis and Design. Project Management. Planning for Production. Quality Management. Process Analysis. - PowerPoint PPT PresentationTRANSCRIPT
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MBA 8452 Systems and Operations ManagementMBA 8452 Systems and Operations Management
Quality Quality ManagementManagement
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QualityManagement
StatisticalProcess Control
Inventory Control
Just in Time
Introduction to Operations Management/ Operations Strategy
ProjectManagement
Planning for ProductionProcess Analysisand Design
Process Controland Improvement
Waiting Line Analysis
Services
Manufacturing
Process Analysis
Job DesignAggregate Planning
Capacity Management
Supply ChainManagement
Layout/ Assembly Line Balancing
Scheduling
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Objective: Quality Management
Be able to Define TQM Two Types of Quality What is meant by Customer Driven
Definition of Quality? Explain the Quality Awards/Certifications
Be able to describe the Quality Awards and Certifications
Apply the Quality Problem Solving Tools Be able to identify and use the problem
solving tools for quality management
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What Is Quality?
A degree or level of excellence(Oxford American Dictionary)
The totality of features and characteristics that satisfies given needs (ANSI and ASQC “official” definition)
Fitness for use (Joseph Jurn’s definition)
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What Is Quality? Design & Conformance Quality
Quality of Design the degree to which quality
characteristics are purposely designed into the product or service
Quality of Conformance the degree to which the product or
service design specifications are met
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What Is Quality? Dimensions of Product Quality
Performance (basic operating characteristics) Features (extra items added) Reliability (likelihood that product will perform
normally over time) Conformance (meeting pre-specified
standards) Durability (useful life span) Serviceability (ease of repair) Aesthetics (sensory characteristics) Perception (perceived quality)
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What Is Quality? Dimensions of Service Quality
Time & Timeliness (waiting time, on time
service)
Completeness (customer gets all they asked for)
Courtesy (treatment by employees)
Consistency (same level of service for all)
Accessibility (ease of obtaining service)
Accuracy (performed right every time)
Responsiveness (reactions to unusual situations)
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Cost of Quality
Cost of achieving good quality Prevention (quality planning and training,
identify and removing poor quality source) Appraisal (inspection, testing)
Cost of poor quality Internal failure costs (scrap, rework, repair) External failure costs (returned products,
warranty charges, complaints, liability)
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Total Quality Management (TQM)
Management of the entire
organization so that it excels on all
dimensions of products and services
that are important to the customer
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Total Quality Management
Elements
1. Customer-driven quality
2. Top management leadership
3. Quality as a strategic issue
4. All employees responsible for quality
5. Continuous improvement (CI)
6. Shared problem solving
7. Statistical quality control (SQC)
8. Training & education for all employees
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Total Quality Management Deming’s 14 Points
1. Create a constancy of purpose toward improvement of product and service with a plan to be competitive, stay in business, and provide jobs.
2. Adopt the new philosophy of preventing poor-quality products instead of acceptable levels of poor quality.
3. Cease dependence on mass inspection to achieve quality, instead using statistical evidence that quality is being built into the product.
4. Select a few suppliers or vendors based on quality commitment rather than competitive prices.
5. Constantly improve the system of production and service, thus increasing productivity and reducing costs.
6. Institute modern methods of training, including statistical techniques and thinking.
7. Instill leadership among supervisors to help workers perform better.
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Total Quality Management Deming’s 14 Points
8. Driving out fear from the workforce by encouraging employee involvement so that everyone may work effectively for the company.
9. Break down barriers between departments, and promote teamwork.
10. Eliminate slogans and numerical targets that urge workers to achieve higher performance levels without first showing them how to do it.
11. Eliminate numerical quotas that employees attempt to meet at any cost without regard for quality.
12. Promote worker pride by improving supervision and the production process so that workers can perform to their capabilities.
13. Institute vigorous education and training programs in methods of quality improvement throughout the organization, from top management down, so that continuous improvement can occur.
14. Develop a commitment from top management to implement the previous thirteen points.
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Continuous Improvement:
P-D-C-A Cycle (Deming Wheel)
Identify problem and develop plan for improvement
Implement plan on test basis
Assess the plan: Is the plan working?
Institutionalizeimprovement Do
Check
Act
Plan
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Continuous Improvement:
Benchmarking Process of measuring and improving a firm’s
performance by learning from the best practices identify processes needing improvement
identify the best practices or leaders
contact, visit, and study the benchmark organization
analyze data
take action
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Continuous Improvement: Seven Quality Control Tools
1. Pareto analysis2. Process flowcharts3. Check sheets4. Histograms5. Scatter diagrams6. Control charts7. Cause & effect diagrams
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Per
cent
fro
m e
ach
caus
e
Causes of poor quality
Mac
hine
cal
ibra
tions
Defec
tive
parts
Wro
ng d
imen
sions
Poor D
esig
n
Ope
rato
r erro
rsDef
ectiv
e m
ater
ials
Surfa
ce a
bras
ions
0
10
20
30
40
50
60
70(64)
(13)(10)
(6)(3) (2) (2)
80% of the problems can often be attributed to 20% of thecauses.
Pareto Analysis
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Process Flowcharts
Identify the potential fail points
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Check Sheet
COMPONENTS REPLACED BY LABTIME PERIOD: 2/5/01 - 2/9/01REPAIR TECHNICIAN: Bob Smith
TV SET MODEL 1013
Integrated Circuits ||||
Capacitors |||| |||| |||| |||| |||| ||
Resistors ||
Transformers ||||
CommandsCRT |
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Histogram
0
5
10
15
20
25
30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Number of defects
Frequ
ency
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Scatter Diagram
Hours of Training
Num
ber
of D
efec
ts
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Control Chart
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12
6
3
9
15
21
24
2 4 6 8 10 12 14 16
Sample number
Num
ber
of d
efec
ts
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Cause & Effect Diagram (Fishbone Diagram)
QualityProblem
MachinesMeasurement Human
ProcessEnvironment Materials
Faulty testing equipment
Incorrect specifications
Improper methods
Poor supervision
Lack of concentration
Inadequate training
Out of adjustment
Tooling problems
Old / worn
Defective from vendor
Not to specifications
Material-handling problems
Deficienciesin product design
Ineffective qualitymanagement
Poor process design
Inaccuratetemperature control
Dust and Dirt
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Quality Awards
The Malcolm Baldrige National Quality Award (USA, since 1987) www.quality.nist.gov
The Deming Prize (Japan, since 1951) www.deming.org
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Malcolm Baldrige Quality Award: Criteria (2000)
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)
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Categories for the Baldrige Award
Manufacturing companies or subsidiaries
Service companies or subsidiaries
Small businesses (less than 500
employees)
Health care organizations
Educational institutions
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ISO 9000
A set of international quality standards and guidelines agreed upon by the International Organization for Standardization (ISO)
Adopted in 1987
Recognized by more than 100 countries
ISO 9000 Certification for competitive advantage
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ISO 9000 Series 9001
Model for Quality Assurance in Design, Production, Installation, and Servicing.
9002 Model for Quality Assurance in
Production and Installation 9003
Model for Quality Assurance in Final Inspection Test
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ISO 9000 Series
Application Areas
Design/Development
Production Installation ServicingProcurement
ISO9003
ISO9001
ISO9002
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ISO 9000 Certification
required by many foreign firms enhance global competitiveness three Forms of Certification
First party: firm audits itself Second party: customer audits supplier Third party: audited by "qualified"
agencies (ANSI, ASQC, RAB)