Managing quality ppt @ bec doms


Published on

Managing quality ppt @ bec doms

Published in: Technology, Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • One of the most useful points to made from this slide is that the Motorola example illustrates that quality must be a concern of the enterprise - not an individual or department.
  • This slide not only looks at the impact of quality on productivity - it also enables you to begin a discussion as to the meaning of quality (or perhaps the differing meanings among different people). To many people, the notion of “high quality” carries with it the assumption of “high price.” This slide provides an initial point to challenge that assumption.
  • This slide simply introduces the four activities. Subsequent slides expand on each.
  • One might begin discussion of this slide by introducing the difference between “leadership” and “management.” The point should also be made, again, about the need for involvement and commitment throughout the organization.
  • Some students may find the notion of “continuous improvement” (Why can’t we do it right the first time?) and “employee empowerment” (Doesn’t this reduce or abrogate the role of the manager?) the most difficult to accept. If you have not done so already, this might be a good time to discuss each in some depth. The following slide may be used in a discussion of empowerment.
  • This slide can be used to form the basis for a discussion of empowerment. If you wish to discuss empowerment - begin by asking students to define the term. You may find students are already comfortable with the term, in which case the discussion can be rather short; or, you may find they have unrealistic expectations (or desires?) - in which case you may wish to pursue the discussion at greater length. It may be helpful to ask students to identify the benefits and pitfalls to both management and worker. (For example, empowerment requires workers to assume greater responsibility.)
  • The main point that one might make with this slide is that the customer is, ultimately, the most important person in your business.
  • Once you have introduced these definitions of quality, ask students to provide example of products that use them.
  • It may be most helpful to provide, or ask you students to provide, examples of products for which the notion of quality is based upon one or more of the dimensions listed.
  • Although the text considers service quality at the end of the chapter, you may wish, at this point, to contrast the notion of quality for goods with that for services. If not, skip this slide - it is repeated at the point at which the issues are raised in the text.
  • This slide simply illustrates the relationships between quality and other elements of the firm.
  • You might make the point that companies actually do consider this a prestigious award. For further information, visit the web site:
  • One of the most important points to be made from this slide is that quality standards are now international. Students might be asked to explain the benefits of international as opposed to national standards. They might also be asked to consider the limitations we would face if there were no such standards. The problems to be encountered in developing international standards also make for good discussion. Note to your students that Crosby has great reservations about the standard and the procedures building an effective quality program.
  • Students might be asked what problems they would foresee in implementing this process.
  • A point to be made here is that TQM is not a program but a philosophy.
  • Again, a point to be made here is the universality required to achieve TQM.
  • One point to make here is that this list represents a recent expression of Demings 14 points - the list is still evolving. Students may notice that many of these fourteen points seem to be simply common sense. If they raise this issue - ask them to consider jobs they have held. Were these points emphasized or implemented by their employers? If not, why not? This part of the discussion can be used to raise again the issue that proper approaches to quality are not “programs,” with limited involvement and finite duration, but rather philosophies which must become ingrained throughout the organization.
  • This slide simply introduces concepts of TQM. These concepts are expanded upon in subsequent slides.
  • Students may have a number of questions with respect to the notion of continuous improvement. - Why do we need continuous improvement? Why can’t we do it right the first time? - Doesn’t implementation of continuous improvement introduce a certain instability? - Are we never “done”? - Etc.
  • If you have not done so already, you might at this point discuss: - why employee empowerment works - the role of information technology in enabling employee empowerment - the role of information technology in making employee empowerment a requirement
  • You might discuss: - the benefits and the limitations of quality circles - the impact of quality circles on workers - requirements for quality circles to be successful - implementation of quality circles in the U.S.
  • Ask student to identify firms which they believe could serve as benchmarks. If students are unable to identify any firms - ask them to identify a college or university whose registration system or housing selection system could serve as a benchmark. Most students have enough knowledge of, or friends at,other colleges and universities so as to be able to respond to this question.
  • One might ask students “Given that these suggestions seem to make intuitive sense, why would a company not wish to implement them?”
  • This slide introduces a discussion about JIT. Subsequent slides elaborate.
  • This might be a good time to differentiate between “push”and “pull” systems. Subsequent slides elaborate on the role of JIT and inventory levels in hiding problems.
  • Note that reducing inventory enables problems to be seen - it does not necessarily fix them.
  • This slide simply enables you to introduce the tools of TQM. Particular tools are elaborated upon in subsequent slides.
  • One question to pose to your students: “Of what value is the notion of a “social cost?” How might a manager use this in decision making?
  • How does one identify the “cost” given in this problem?
  • This slide probably deserves some discussion. Some students will probably question whether consumers could tell the difference between the two. You should stress that they can tell the difference and that this will have an impact on their buying decisions.
  • This slide may help clarify the differences between conformance and target-based quality control.
  • This slide probably deserves more discussion than most of us would tend to allot it. Students need to understand the cost of “going the extra mile,” - the difference between something which may be very good, and something which is perfect. The students also need to recognize that Pareto charts suggest where to place effort - on the item that looms largest on the chart. After progress is made on that item, then one performs a Pareto analysis on the remaining items, and repeats the procedure..
  • This slide can be used to introduce Process Charts.
  • You can use this slide as an example of a process chart; use it to guide students in developing their own charts for some common activity.
  • This slide introduces the Cause and Effect Diagram. The next several slide show the development of a simple example. If time is available, it would be helpful to ask students to develop their own examples.
  • This slide illustrates a Cause and Effect Chart for a practical problem.
  • This slide introduces the process of Statistical Process Control. Slides illustrating the mechanics will be found in the presentation for supplement 6S. At some point, you may wish to illustrate or discuss the connection between Statistical Process Control and the Target and Conformance-based quality control discussed earlier.
  • This chart enables you to discuss some of the information which can be obtained from the Process Control Charts.
  • This slide introduces the concept of inspection. At this point, one should probably stress the role of inspection in the overall quality control process. Some students seem to have the notion that inspection is quality control.
  • This slide can be used to frame a discussion about when to inspect. If your students have documented an actual production process from a local business, one of these documented processes can serve as an example.
  • As you discuss inspection points in services, ask students how the use of inspection should differ between goods and services.
  • As you discuss inspection points in services, ask students how the use of inspection should differ between goods and services.
  • As you discuss inspection points in services, ask students how the use of inspection should differ between goods and services.
  • As you discuss inspection points in services, ask students how the use of inspection should differ between goods and services.
  • As you discuss inspection points in services, ask students how the use of inspection should differ between goods and services.
  • As you discuss inspection points in services, ask students how the use of inspection should differ between goods and services.
  • Ask your students to consider other services: Banking, medical care (hospital), home construction, etc., and identify the points of inspection.
  • At this point, you might consider going back to the slides illustrating the differences between goods and services. Those slides are provided next. If you do not wish to use them, simply skip to the final slide in the sequence.
  • Again, it is helpful to look at the differences between goods and services. Have your students identify the consequences of some of these differences.
  • This slide is a repeat of the earlier one on Service Quality Attributes as that topic appears at this point in the text.
  • Managing quality ppt @ bec doms

    1. 1. Managing Quality
    2. 2. Outline <ul><li>GLOBAL COMPANY PROFILE: MOTOROLA </li></ul><ul><li>QUALITY AND STRATEGY </li></ul><ul><li>DEFINING QUALITY </li></ul><ul><ul><li>Implications of Quality </li></ul></ul><ul><ul><li>Malcolm Baldrige National Quality Award </li></ul></ul><ul><ul><li>Cost of Quality (COQ) </li></ul></ul><ul><li>INTERNATIONAL QUALITY STANDARDS </li></ul><ul><ul><li>ISO 9000 </li></ul></ul><ul><ul><li>ISO14000 </li></ul></ul>
    3. 3. Outline - Continued <ul><li>TOTAL QUALITY MANAGEMENT </li></ul><ul><ul><li>Continuous Improvement </li></ul></ul><ul><ul><li>Employee Empowerment </li></ul></ul><ul><ul><li>Benchmarking </li></ul></ul><ul><ul><li>Just-in-Time (JIT) </li></ul></ul><ul><ul><li>Taguchi Concepts </li></ul></ul><ul><ul><li>Knowledge of TQM Tools </li></ul></ul>
    4. 4. Outline - Continued <ul><li>TOOLS OF TQM </li></ul><ul><ul><li>Check sheets </li></ul></ul><ul><ul><li>Scatter Diagrams </li></ul></ul><ul><ul><li>Cause-and-Effect Diagram </li></ul></ul><ul><ul><li>Pareto Charts </li></ul></ul><ul><ul><li>Flow Charts </li></ul></ul><ul><ul><li>Histograms </li></ul></ul><ul><ul><li>Statistical Process Control (SPC) </li></ul></ul>
    5. 5. Outline - Continued <ul><li>THE ROLE OF INSPECTION </li></ul><ul><ul><li>When and Where to Inspect </li></ul></ul><ul><ul><li>Source Inspection </li></ul></ul><ul><ul><li>Service Industry Inspection </li></ul></ul><ul><ul><li>Inspection of Attributes vs Variables </li></ul></ul><ul><li>TQM IN SERVICES </li></ul>
    6. 6. Learning Objectives <ul><li>When you complete this chapter, you should be able to: </li></ul><ul><li>Identify or Define : </li></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Malcolm Baldrige National Quality Award </li></ul></ul><ul><ul><li>ISO International Quality Standards </li></ul></ul><ul><ul><li>Demings, Juran, and Crosby </li></ul></ul><ul><ul><li>Taguchi Concepts </li></ul></ul>
    7. 7. Learning Objectives - continued <ul><li>When you complete this chapter, you should be able to : </li></ul><ul><li>Explain : </li></ul><ul><ul><li>Why quality is important </li></ul></ul><ul><ul><li>Total Quality Management (TQM) </li></ul></ul><ul><ul><li>Pareto charts </li></ul></ul><ul><ul><li>Process charts </li></ul></ul><ul><ul><li>Quality robust products </li></ul></ul><ul><ul><li>Inspection </li></ul></ul>
    8. 8. To Make the Quality Focus Work <ul><li>Motorola: </li></ul><ul><ul><li>Aggressively began a worldwide education program to be sure that employees understood quality and statistical process control </li></ul></ul><ul><ul><li>Established goals </li></ul></ul><ul><ul><li>Established extensive employee participation and employee teams </li></ul></ul>
    9. 9. Ways in Which Quality Can Improve Productivity <ul><li>Sales Gains </li></ul><ul><ul><li>Improved response </li></ul></ul><ul><ul><li>Higher Prices </li></ul></ul><ul><ul><li>Improved reputation </li></ul></ul>Reduced Costs Increased productivity Lower rework and scrap costs Lower warranty costs Increased Profits Improved Quality
    10. 10. Flow of Activities Necessary to Achieve Total Quality Management <ul><li>Organizational Practices </li></ul>Quality Principles Employee Fulfillment Customer Satisfaction
    11. 11. Organizational Practices <ul><li>Leadership </li></ul><ul><li>Mission statement </li></ul><ul><li>Effective operating procedure </li></ul><ul><li>Staff support </li></ul><ul><li>Training </li></ul><ul><li>Yields: What is important and what is to be accomplished </li></ul>
    12. 12. Quality Principles <ul><li>Customer focus </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Benchmarking </li></ul><ul><li>Just-in-time </li></ul><ul><li>Tools of TQM </li></ul><ul><li>Yields: How to do what is important and to be accomplished </li></ul>
    13. 13. Employment Fulfillment <ul><li>Empowerment </li></ul><ul><li>Organizational commitment </li></ul><ul><li>Yields: Employees’ attitudes that they can accomplish what is important and to be accomplished </li></ul>
    14. 14. Customer Satisfaction <ul><li>Winning orders </li></ul><ul><li>Repeat customers </li></ul><ul><li>Yields: An effective organization with a competitive advantage </li></ul>
    15. 15. Definitions of Quality <ul><li>ASC : Product characteristics & features that affect customer satisfaction </li></ul><ul><li>User-Based : What consumer says it is </li></ul><ul><li>Manufacturing-Based : Degree to which a product conforms to design specification </li></ul><ul><li>Product-Based : Level of measurable product characteristic </li></ul>
    16. 16. Dimensions of Quality for Goods Operation Reliability & durability Conformance Serviceability Appearance Perceived quality Quality
    17. 17. Service Quality Attributes Under- standing Tangibles Reliability Communication Credibility Security Responsiveness Competence Courtesy Access © 1995 Corel Corp.
    18. 18. Importance of Quality Costs & market share Company’s reputation Product liability International implications Increased Profits Lower Costs Productivity Rework/Scrap Warranty Market Gains Reputation Volume Price Improved Quality
    19. 19. <ul><li>Established in 1988 by the U.S. government </li></ul><ul><li>Designed to promote TQM practices </li></ul><ul><li>Some criteria </li></ul><ul><ul><li>Senior executive leadership; strategic planning; management. of process quality </li></ul></ul><ul><ul><li>Quality results; customer satisfaction </li></ul></ul><ul><li>Recent winners </li></ul><ul><ul><li>Corning Inc.; GTE; AT&T; Eastman Chemical. </li></ul></ul>Malcom Baldrige National Quality Award
    20. 20. Costs of Quality <ul><li>Prevention costs - reducing the potential for defects </li></ul><ul><li>Appraisal costs - evaluating products </li></ul><ul><li>Internal failure - of producing defective parts or service </li></ul><ul><li>External costs - occur after delivery </li></ul>
    21. 21. <ul><li>Costs of poor quality “are huge, but the amounts are not known with precision. In most companies, the accounting system provides only a minority of the information needed to quantify this cost of poor quality </li></ul>
    22. 22. EC Environmental Standard ISO 14000 <ul><li>Core Elements: </li></ul><ul><ul><li>Environmental management </li></ul></ul><ul><ul><li>Auditing </li></ul></ul><ul><ul><li>Performance evaluation </li></ul></ul><ul><ul><li>Labeling </li></ul></ul><ul><ul><li>Life-cycle assessment </li></ul></ul>
    23. 23. International Quality Standards <ul><li>Industrial Standard Z8101-1981 (Japan) </li></ul><ul><ul><li>Specification for TQM </li></ul></ul><ul><li>ISO 9000 series (Europe/EC) </li></ul><ul><ul><li>Common quality standards for products sold in Europe (even if made in U.S.) </li></ul></ul><ul><li>ISO 14000 series (Europe/EC) </li></ul><ul><ul><li>Standards for recycling, labeling etc. </li></ul></ul><ul><li>ASQC Q90 series; MILSTD (U.S.) </li></ul>
    24. 24. Traditional Quality Process (Manufacturing) Specifies Need Customer Interprets Need Marketing Designs Product Defines Quality Engineering Produces Product Plans Quality Monitors Quality Operations Quality is customer driven!
    25. 25. TQM <ul><li>Encompasses entire organization, from supplier to customer </li></ul><ul><li>Stresses a commitment by management to have a continuing, company-wide, drive toward excellence in all aspects of products and services that are important to the customer. </li></ul>
    26. 26. Achieving Total Quality Management Organizational Practices Quality Principles Employee Fulfillment Attitudes (e.g., Commitment) How to Do What to Do Effective Business Customer Satisfaction
    27. 27. Deming’s Fourteen Points <ul><li>Create consistency of purpose </li></ul><ul><li>Lead to promote change </li></ul><ul><li>Build quality into the products </li></ul><ul><li>Build long term relationships </li></ul><ul><li>Continuously improve product, quality, and service </li></ul><ul><li>Start training </li></ul><ul><li>Emphasize leadership </li></ul>
    28. 28. Deming’s Points - continued <ul><li>Drive out fear </li></ul><ul><li>Break down barriers between departments </li></ul><ul><li>Stop haranguing workers </li></ul><ul><li>Support, help, improve </li></ul><ul><li>Remove barriers to pride in work </li></ul><ul><li>Institute a vigorous program of education and self-improvement </li></ul><ul><li>Put everybody in the company to work on the transformation </li></ul>
    29. 29. Concepts of TQM <ul><li>Continuous improvement </li></ul><ul><li>Employee empowerment </li></ul><ul><li>Benchmarking </li></ul><ul><li>Just-in-time (JIT) </li></ul><ul><li>Taguchi concepts </li></ul><ul><li>Knowledge of TQM tools </li></ul>
    30. 30. Continuous Improvement Represents continual improvement of process & customer satisfaction Involves all operations & work units Other names Kaizen (Japanese) Zero-defects Six sigma © 1984-1994 T/Maker Co.
    31. 31. Shewhart’s PDCA Model 4. Act 1. Plan 3. Check 2. Do Identify the improvement and make a plan Test the plan Is the plan working Implement the plan
    32. 32. 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.
    33. 33. Quality Circles Group of 6-12 employees from same work area Meet regularly to solve work-related problems 4 hours/month Facilitator trains & helps with meetings © 1995 Corel Corp.
    34. 34. Benchmarking <ul><li>Selecting best practices to use as a standard for performance </li></ul><ul><li>Determine what to benchmark </li></ul><ul><li>Form a benchmark team </li></ul><ul><li>Identify benchmarking partners </li></ul><ul><li>Collect and analyze benchmarking information </li></ul><ul><li>Take action to match or exceed the benchmark </li></ul>
    35. 35. Resolving Customer Complaints Best Practices <ul><li>Make it easy for clients to complain </li></ul><ul><li>Respond quickly to complaints </li></ul><ul><li>Resolve complaints on the first contact </li></ul><ul><li>Use computers to manage complaints </li></ul><ul><li>Recruit the best for customer service jobs </li></ul>
    36. 36. Just-in-Time (JIT) <ul><li>Relationship to quality: </li></ul><ul><ul><li>JIT cuts cost of quality </li></ul></ul><ul><ul><li>JIT improves quality </li></ul></ul><ul><ul><li>Better quality means less inventory and better, easier-to-employ JIT system </li></ul></ul>
    37. 37. Just-in-Time (JIT) <ul><li>‘ Pull’ system of production/purchasing </li></ul><ul><ul><li>Customer starts production with an order </li></ul></ul><ul><li>Involves ‘vendor partnership programs’ to improve quality of purchased items </li></ul><ul><li>Reduces all inventory levels </li></ul><ul><ul><li>Inventory hides process & material problems </li></ul></ul><ul><li>Improves process & product quality </li></ul>
    38. 38. Just-In-Time (JIT) Example Scrap Work in process inventory level (hides problems) Unreliable Vendors Capacity Imbalances
    39. 39. Just-In-Time (JIT) Example Scrap Reducing inventory reveals problems so they can be solved. Unreliable Vendors Capacity Imbalances
    40. 40. Tools for TQM <ul><li>Quality Function Deployment </li></ul><ul><ul><li>House of Quality </li></ul></ul><ul><li>Taguchi technique </li></ul><ul><li>Quality loss function </li></ul><ul><li>Pareto charts </li></ul><ul><li>Process charts </li></ul><ul><li>Cause-and-effect diagrams </li></ul><ul><li>Statistical process control </li></ul>
    41. 41. Quality Function Deployment (QFD) <ul><li>Determines what will satisfy the customer </li></ul><ul><li>Translates those customer desires into the target design </li></ul>
    42. 42. Taguchi Techniques <ul><li>Experimental design methods to improve product & process design </li></ul><ul><ul><li>Identify key component & process variables affecting product variation </li></ul></ul><ul><li>Taguchi Concepts </li></ul><ul><ul><li>Quality robustness </li></ul></ul><ul><ul><li>Quality loss function </li></ul></ul><ul><ul><li>Target specifications </li></ul></ul>
    43. 43. <ul><li>Ability to produce products uniformly regardless of manufacturing conditions </li></ul><ul><li>Put robustness in House of Quality matrices besides functionality </li></ul>Quality Robustness © 1984-1994 T/Maker Co. © 1995 Corel Corp .
    44. 44. <ul><li>Shows social cost ($) of deviation from target value </li></ul><ul><li>Assumptions </li></ul><ul><ul><li>Most measurable quality characteristics (e.g., length, weight) have a target value </li></ul></ul><ul><ul><li>Deviations from target value are undesirable </li></ul></ul><ul><li>Equation: L = D 2 C </li></ul><ul><ul><li>L = Loss ($); D = Deviation; C = Cost </li></ul></ul>Quality Loss Function
    45. 45. Quality Loss Function
    46. 46. <ul><li>The specifications for the diameter of a gear are 25.00 ± 0.25 mm . If the diameter is out of specification, the gear must be scrapped at a cost of $4.00 . What is the loss function ? </li></ul>Quality Loss Function Example © 1984-1994 T/Maker Co.
    47. 47. <ul><li>L = D 2 C = (X - Target) 2 C </li></ul><ul><ul><li>L = Loss ($); D = Deviation; C = Cost </li></ul></ul><ul><li>4.00 = (25.25 - 25.00) 2 C </li></ul><ul><ul><li>Item scrapped if greater than 25.25 (USL = 25.00 + 0.25) with a cost of $4.00 </li></ul></ul><ul><li>C = 4.00 / (25.25 - 25.00) 2 = 64 </li></ul><ul><li>L = D 2 • 64 = (X - 25.00) 2 64 </li></ul><ul><ul><li>Enter various X values to obtain L & plot </li></ul></ul>Quality Loss Function Solution
    48. 48. Target Specification Example <ul><ul><li>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. </li></ul></ul>Japanese factory (Target-oriented) U.S. factory (Conformance-oriented)
    49. 49. Quality Loss Function; Distribution of Products Produced Low loss High loss Frequency Lower Target Upper Specification Loss (to producing organization, customer, and society) Quality Loss Function (a) Unacceptable Poor Fair Good Best Target-oriented quality yields more product in the “best” category Target-oriented quality brings products toward the target value Conformance-oriented quality keeps product within three standard deviations Distribution of specifications for product produced (b)
    50. 50. PDCA Cycle 4.Act: Implement the plan 1.Plan: Identify the improvement and make a plan 3.Check: Is the plan working 2.Do: Test the plan
    51. 51. Tools of TQM <ul><li>Tools for generating ideas </li></ul><ul><ul><li>Check sheet </li></ul></ul><ul><ul><li>Scatter diagram </li></ul></ul><ul><ul><li>Cause and effect diagram </li></ul></ul><ul><li>Tools to organize data </li></ul><ul><ul><li>Pareto charts </li></ul></ul><ul><ul><li>Process charts (Flow diagrams) </li></ul></ul><ul><li>Tools for identifying problems </li></ul><ul><ul><li>Histograms </li></ul></ul><ul><ul><li>Statistical process control chart </li></ul></ul>
    52. 52. Seven Tools for TQM
    53. 53. Pareto Analysis of Wine Glass Defects (Total Defects = 75) 72% 16% 5% 4% 3%
    54. 54. <ul><li>Shows sequence of events in process </li></ul><ul><li>Depicts activity relationships </li></ul><ul><li>Has many uses </li></ul><ul><ul><li>Identify data collection points </li></ul></ul><ul><ul><li>Find problem sources </li></ul></ul><ul><ul><li>Identify places for improvement </li></ul></ul><ul><ul><li>Identify where travel distances can be reduced </li></ul></ul>Process Chart
    55. 55. Process Chart Example SUBJECT: Request tool purchase Dist (ft) Time (min) Symbol Description  D  Write order  D  On desk 75    D  To buyer  D  Examine  = Operation;  = Transport;  = Inspect; D = Delay;  = Storage
    56. 56. <ul><li>Used to find problem sources/solutions </li></ul><ul><li>Other names </li></ul><ul><ul><li>Fish-bone diagram, Ishikawa diagram </li></ul></ul><ul><li>Steps </li></ul><ul><ul><li>Identify problem to correct </li></ul></ul><ul><ul><li>Draw main causes for problem as ‘bones’ </li></ul></ul><ul><ul><li>Ask ‘What could have caused problems in these areas?’ Repeat for each sub-area. </li></ul></ul>Cause and Effect Diagram
    57. 57. Cause and Effect Diagram Example Too many defects Problem
    58. 58. Cause and Effect Diagram Example Method Manpower Material Machinery Too many defects Main Cause Main Cause
    59. 59. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Overtime Steel Wood Lathe Too many defects Sub-Cause
    60. 60. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Overtime Steel Wood Lathe Too many defects Tired Old Slow
    61. 61. Fishbone Chart - Problems with Airline Customer Service
    62. 62. <ul><li>Uses statistics & control charts to tell when to adjust process </li></ul><ul><li>Developed by Shewhart in 1920’s </li></ul><ul><li>Involves </li></ul><ul><ul><li>Creating standards (upper & lower limits) </li></ul></ul><ul><ul><li>Measuring sample output (e.g. mean wgt.) </li></ul></ul><ul><ul><li>Taking corrective action (if necessary) </li></ul></ul><ul><li>Done while product is being produced </li></ul>Statistical Process Control (SPC)
    63. 63. Statistical Process Control Steps Produce Good Provide Service Stop Process Yes No Assign. Causes? Take Sample Inspect Sample Find Out Why Create Control Chart Start
    64. 64. Process Control Chart
    65. 65. Control Chart
    66. 66. Patterns to Look for in Control Charts
    67. 67. <ul><li>Involves examining items to see if an item is good or defective </li></ul><ul><li>Detect a defective product </li></ul><ul><ul><li>Does not correct deficiencies in process or product </li></ul></ul><ul><li>Issues </li></ul><ul><ul><li>When to inspect </li></ul></ul><ul><ul><li>Where in process to inspect </li></ul></ul>Inspection
    68. 68. When and Where to Inspect <ul><li>At the supplier’s plant while the supplier is producing </li></ul><ul><li>At your facility upon receipt of goods from the supplier </li></ul><ul><li>Before costly or irreversible processes </li></ul><ul><li>During the step-by-step production processes </li></ul><ul><li>When production or service is complete </li></ul><ul><li>Before delivery from your facility </li></ul><ul><li>At the point of customer contact </li></ul>
    69. 69. Inspection Points in Services Organization What is Inspected Standard Jones Law Office Receptionist performance Billing Attorney Is phone answered by the second ring Accurate, timely, and correct format Promptness in returning calls
    70. 70. Inspection Points in Services Organization What is Inspected Standard Hard Rock Hotel Reception desk Doorman Room Minibar Use customer’s name Greet guest in less than 30 seconds All lights working, spotless bathroom Restocked and charges accurately posted to bill
    71. 71. Inspection Points in Services Organization What is Inspected Standard Bayfield Community Hospital Billing Pharmacy Lab Nurses Admissions Accurate, timely, and correct format Prescription accuracy, inventory accuracy Audit for lab-test accuracy Charts immediately updated Data entered correctly and completely
    72. 72. Inspection Points in Services Organization What is Inspected Standard Hard Rock Cafe Busboy Busboy Waiter Serves water and bread within 1 minute Clears all entrée items and crumbs prior to desert Knows and suggest specials and desserts
    73. 73. Inspection Points in Services Organization What is Inspected Standard Nordstrom’s Department Store Display areas Stockrooms Salesclerks Attractive, well-organized, stocked, good lighting Rotation of goods, organized, clean Neat, courteous, very knowledgeable
    74. 74. Inspection Points in Services Bank Teller stations Loan accounts Checking accounts Shortages, courtesy, speed, accuracy Collateral, proper credit checks, rates, terms of loans, default rates, loan rates Accuracy, speed of entry, rate of overdraws Organization Some Points of Inspection Issues to Consider
    75. 75. Inspection Points in Services Retail store Stockrooms Display areas Sales counters Clean, uncluttered, organized, level of stockouts, amply supply, rotation of goods Attractive, well-organized, stocked, visible goods, good lighting Neat, courteous knowledgeable personnel; waiting time; accuracy in credit checking and sales entry Organization Some Points of Inspection Issues to Consider
    76. 76. Inspection Points in Services Restaurant Kitchen Cashier station Dining areas Clean, proper storage, unadulterated food, health regulations observed, well-organized Speed, accuracy, appearance Clean, comfortable, regular monitoring by personnel, Organization Some Points of Inspection Issues to Consider
    77. 77. <ul><li>Service quality is more difficult to measure than for goods </li></ul><ul><li>Service quality perceptions depend on </li></ul><ul><ul><li>Expectations versus reality </li></ul></ul><ul><ul><li>Process and outcome </li></ul></ul><ul><li>Types of service quality </li></ul><ul><ul><li>Normal: Routine service delivery </li></ul></ul><ul><ul><li>Exceptional: How problems are handled </li></ul></ul>TQM In Services
    78. 78. Goods versus Services <ul><li>Can be resold </li></ul><ul><li>Can be inventoried </li></ul><ul><li>Some aspects of quality measurable </li></ul><ul><li>Selling is distinct from production </li></ul>Reselling unusual Difficult to inventory Quality difficult to measure Selling is part of service Good Service
    79. 79. Goods versus Services - continued <ul><li>Product is transportable </li></ul><ul><li>Site of facility important for cost </li></ul><ul><li>Often easy to automate </li></ul><ul><li>Revenue generated primarily from tangible product </li></ul>Provider, not product is transportable Site of facility important for customer contact Often difficult to automate Revenue generated primarily from intangible service. Good Service
    80. 80. Service Quality Attributes Under- standing Tangibles Reliability Communication Credibility Security Responsiveness Competence Courtesy Access © 1995 Corel Corp.
    81. 81. Determinants of Service Quality <ul><li>Reliability – consistency and dependability </li></ul><ul><li>Responsiveness – willingness/readiness of employees to provide service; timeliness </li></ul><ul><li>Competence – possession of skills and knowledge required to perform service </li></ul><ul><li>Access – approachability and ease of contact </li></ul><ul><li>Courtesy – politeness, respect, consideration, friendliness of contact personnel </li></ul>
    82. 82. Determinants of Service Quality -Continued <ul><li>Communication – keeping customers informed in languages they understand </li></ul><ul><li>Credibility – trustworthiness, believability, honesty </li></ul><ul><li>Security – freedom from danger, risk or doubt </li></ul><ul><li>Understanding/knowing the customer – making the effort to understands the customer’s needs </li></ul><ul><li>Tangibles – the physical evidence of the service </li></ul>