Quality Management - Opreations Management

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<ul><li> 1. To Make the Quality Focus Work Motorola: Aggressively began a worldwide education program to be sure that employees understood quality and statistical process control Established goals Established extensive employee participation and employee teams</li></ul> <p> 2. Ways in Which Quality Can Improve Productivity Sales Gains Improved response Higher Prices Improved reputationImproved QualityIncreased ProfitsReduced Costs Increased productivity Lower rework and scrap costs Lower warranty costs 3. TQMEncompasses entire organization, from supplier tocustomer Stresses a commitment by management to have a continuing company-wide drive towards excellence in all aspects ofproducts and services that are important to thecustomer. Note: TQM is not a program but a philosophy. 4. Flow of Activities Necessary to AchieveTotal Quality Management Organizational PracticesQuality Principles Employee Fulfillment Customer Satisfaction 5. Organizational Practices Leadership Mission statement Effective operating procedure Staff support TrainingOutcome: What is important and what is to be accomplished 6. Quality Principles Customer focus Continuous improvement Employee empowerment Benchmarking Just-in-time Tools of TQMOutcome: How to do what is important and to beaccomplished 7. Resolving Customer ComplaintsBest Practices Make it easy for clients to complain Respond quickly to complaints Resolve complaints on the first contact Use computers to manage complaints Recruit the best for customer service jobs 8. Continuous ImprovementRepresents continual improvement ofprocess &amp; customer satisfactionInvolves all operations&amp; work unitsOther namesKaizen (Japanese)Zero-defects (Philip Crosby)Six sigma 1984-1994 T/Maker Co. 9. Employee EmpowermentGetting employees involved in product &amp;process improvements85% of quality problems are due to process &amp; materialTechniquesSupport workersLet workers make decisionsBuild teams &amp; quality circles 10. BenchmarkingSelecting best practices to useas 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 11. 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 12. Just-in-Time (JIT) Pull system of production/purchasing Company starts production with an order Involves vendor partnership programs toimprove quality of purchased items Reduces all inventory levels Inventory hides process &amp; material problems Improves process &amp; product quality 13. Tools for TQM Quality Function Deployment Taguchi techniqueTaguchi methods are statistical methodsdeveloped by Genichi Taguchi to improve the qualityof manufactured goods, and more recently alsoapplied to engineering, biotechnology, marketingand advertising 14. Pareto charts type of chart that contains both bars and a linegraph, where individual values are represented indescending order by bars, and the cumulative total isrepresented by the line. 15. Tools for TQM Process charts Cause-and-effect diagrams The Cause &amp; Effect (CE) diagram, also sometimescalled the fishbone diagram, is a tool for discoveringall the possible causes for a particular effect 16. Employment Fulfillment Empowerment commitment 17. Customer Satisfaction Winning orders Repeat customers The customer is, ultimately, the most important person in your business. 18. Dimensions of Quality for Goods Operation Reliability &amp; durability Conformance Serviceability Appearance Perceived quality 19. Service Quality Attributes Reliability Competence Tangibles and intangibles Credibility Responsiveness 20. Importance of QualityCosts &amp; Market Gainsmarket share ReputationCompanysVolumereputation PriceImprovedIncreasedProduct QualityProfitsliability Lower CostsInternationalProductivityimplications Rework/Scrap Warranty 21. TraditionalQuality Process (Manufacturing)CustomerMarketingEngineering OperationsSpecifies InterpretsDesignsProducesNeed Need Product Product DefinesPlans QualityQualityMonitors Quality 22. TQM In Services Service quality is more difficult to measure than forgoods Service quality perceptions depend on Expectations versus reality Process and outcome </p>

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