quality management - opreations management
DESCRIPTION
TRANSCRIPT
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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
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Ways in Which Quality Can Improve Productivity
Sales Gains• Improved response• Higher Prices• Improved reputation
Reduced Costs¨ Increased productivity¨ Lower rework and scrap
costs¨ Lower warranty costs
Increased ProfitsImproved Quality
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TQM
Encompasses entire organization, from supplier to customer Stresses a commitment by
management to have a continuing company-wide drive towards excellence in all aspects of products and services that are important to the
customer.
Note: TQM is not a program but a philosophy.
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Flow of Activities Necessary to Achieve Total Quality Management
• Organizational Practices
¨ Quality Principles
¨ Employee Fulfillment
¨ Customer Satisfaction
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Organizational Practices
• Leadership• Mission statement• Effective operating procedure• Staff support• Training
Outcome: What is important and what is to be accomplished
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Quality Principles
• Customer focus• Continuous improvement• Employee empowerment• Benchmarking• Just-in-time• Tools of TQM
Outcome: How to do what is important and to be accomplished
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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
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Continuous Improvement
¨ Represents continual improvement of process & customer satisfaction
¨ Involves all operations & work units
¨ Other names¨ Kaizen (Japanese)¨ Zero-defects (Philip Crosby)¨ Six sigma
© 1984-1994 T/Maker Co.
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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
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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
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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
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Just-in-Time (JIT)
• ‘Pull’ system of production/purchasing• Company 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
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Tools for TQM
• Quality Function Deployment• Taguchi technique
Taguchi methods are statistical methods developed by Genichi Taguchi to improve the quality of manufactured goods, and more recently also applied to engineering, biotechnology, marketing and advertising
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• Pareto charts• type of chart that contains both bars and a line
graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line.
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Tools for TQM
• Process charts• Cause-and-effect diagrams
• The Cause & Effect (CE) diagram, also sometimes called the ‘fishbone’ diagram, is a tool for discovering all the possible causes for a particular effect
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Employment Fulfillment
• Empowerment• commitment
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Customer Satisfaction
• Winning orders• Repeat customers
The customer is, ultimately, the most important person in your business.
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¨ Operation¨ Reliability & durability¨ Conformance¨ Serviceability¨ Appearance¨ Perceived quality
Dimensions of Quality for Goods
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Service Quality Attributes
• Reliability• Competence• Tangibles and intangibles• Credibility• Responsiveness
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Importance of Quality
¨ Costs & market share
¨ Company’s reputation
¨ Product liability
¨ International implications
IncreasedProfits
Lower CostsProductivityRework/ScrapWarranty
Market GainsReputationVolumePrice
ImprovedQuality
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Traditional Quality Process (Manufacturing)
SpecifiesNeed
Customer
InterpretsNeed
Marketing
DesignsProduct
DefinesQuality
Engineering
ProducesProduct
PlansQuality
MonitorsQuality
Operations
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TQM In Services
• Service quality is more difficult to measure than for goods
• Service quality perceptions depend on • Expectations versus reality• Process and outcome