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Beni Asllani University of Tennessee at Chattanooga Quality Management Operations Management - 5 th  Edition Chapter 3 Roberta Russell & Bernard W. Taylor, III
Lecture Outline ,[object Object],[object Object],[object Object],[object Object],[object Object]
Lecture Outline (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Meaning of Quality ,[object Object],[object Object],[object Object],[object Object],[object Object]
Meaning of Quality: Consumer’s Perspective ,[object Object],[object Object],[object Object],[object Object],[object Object]
Dimensions of Quality: Manufactured Products ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Dimensions of Quality: Manufactured Products (cont.)
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Dimensions of Quality: Manufactured Products (cont.)
Dimensions of Quality: Service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Dimensions of Quality: Service (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Dimensions of Quality: Service (cont.)
Meaning of Quality: Producer’s Perspective ,[object Object],[object Object],[object Object],[object Object]
Meaning of Quality: A Final Perspective ,[object Object],[object Object],[object Object],[object Object]
Meaning of Quality Fitness for Consumer Use Producer’s Perspective Consumer’s Perspective Quality of  Conformance ,[object Object],[object Object],Quality of Design ,[object Object],[object Object],Marketing Production Meaning of Quality
Total Quality Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Quality Gurus ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Quality Gurus (cont.)
Deming’s 14 Points ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Deming’s 14 Points (cont.)
[object Object],[object Object],[object Object],[object Object],Deming’s 14 Points (cont.)
Deming Wheel: PDCA Cycle 1. Plan Identify  problem and develop  plan for improvement. 2. Do Implement  plan on a test basis. 3. Study/Check Assess  plan; is it working? 4. Act Institutionalize improvement; continue  cycle.
TQM and… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Quality Improvement and Role of Employees ,[object Object],[object Object],[object Object]
Quality Circle Presentation Implementation Monitoring Solution Problem results Problem Analysis Cause and effect Data collection and analysis Problem Identification List alternatives Consensus Brainstorming Training Group processes Data collection Problem analysis Organization 8-10 members Same area Supervisor/moderator
Strategic Implications of TQM ,[object Object],[object Object],[object Object],[object Object]
Six Sigma ,[object Object],[object Object],[object Object],[object Object],[object Object]
Black Belts and Green Belts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Six Sigma: DMAIC 3.4 DPMO 67,000 DPMO cost = 25% of sales DEFINE CONTROL IMPROVE ANALYZE MEASURE
TQM in Service Companies ,[object Object],[object Object],[object Object],[object Object]
Quality Attributes in Service ,[object Object],[object Object],[object Object],[object Object],“ quickest, friendliest, most accurate service available.”
Cost of Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Prevention Costs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Appraisal Costs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Internal Failure Costs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
External Failure Costs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Measuring and Reporting Quality Costs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Quality–Cost Relationship ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Quality Management and Productivity ,[object Object],[object Object],[object Object],Yield=(total input)(% good units) + (total input)(1-%good units)(% reworked) or Y=(I)(%G)+(I)(1-%G)(%R)
Product Cost Product Cost where: K d   = direct manufacturing cost per unit I  = input K r  = rework cost per unit R  = reworked units Y  = yield
Computing Product Yield for Multistage Processes Y =  ( I )(% g 1 )(% g 2 ) … (% g n ) where: I  = input of items to the production process that will result in finished products g i  = good-quality, work-in-process products at stage  i
Quality–Productivity Ratio ,[object Object],[object Object],QPR = (non-defective units) (input) (processing cost) + (defective units) (reworked cost)
Seven Quality Control Tools ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pareto Analysis NUMBER OF CAUSE DEFECTS PERCENTAGE Poor design 80 64 % Wrong part dimensions 16 13 Defective parts 12 10 Incorrect machine calibration 7 6 Operator errors 4 3 Defective material 3 2 Surface abrasions 3 2 125 100 %
Pareto Chart Percent from each cause Causes of poor quality Machine calibrations Defective parts Wrong dimensions Poor Design Operator errors Defective materials Surface abrasions 0 10 20 30 40 50 60 70 (64) (13) (10) (6) (3) (2) (2)
Flow Chart Operation Decision Start/ Finish Start/ Finish Operation Operation Operation Operation Decision
Check Sheet COMPONENTS REPLACED BY LAB TIME PERIOD:  22 Feb  to  27 Feb 2002 REPAIR TECHNICIAN:  Bob TV SET MODEL 1013 Integrated Circuits |||| Capacitors ||||  ||||  ||||  ||||  ||||  || Resistors || Transformers |||| Commands CRT |
Histogram 0 5 10 15 20 1  2  6  13  10 16 19 17 12 16 2017 13  5  6  2  1
Scatter Diagram Y X
Control Chart 18 12 6 3 9 15 21 24 2 4 6 8 10 12 14 16 Sample number Number of defects UCL = 23.35 LCL = 1.99 c  = 12.67
Cause-and-Effect Diagram  Quality Problem Out of adjustment Tooling problems Old / worn Machines Faulty testing equipment Incorrect specifications Improper methods Measurement Poor supervision Lack of concentration Inadequate training Human Deficiencies in product design Ineffective quality management Poor process design Process Inaccurate temperature  control Dust and Dirt Environment Defective from vendor Not to specifications Material- handling problems Materials
Baldrige Award ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Other Awards for Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
American Customer Satisfaction Index (ACSI) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ISO 9000 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Implications of ISO 9000 for U.S. Companies ,[object Object],[object Object],[object Object],[object Object]
Copyright 2006 John Wiley & Sons, Inc. All rights reserved.  Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful.  Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc.  The purchaser may make back-up copies for his/her own use only and not for distribution or resale.  The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.

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Quality Management

  • 1. Beni Asllani University of Tennessee at Chattanooga Quality Management Operations Management - 5 th Edition Chapter 3 Roberta Russell & Bernard W. Taylor, III
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. Deming Wheel: PDCA Cycle 1. Plan Identify problem and develop plan for improvement. 2. Do Implement plan on a test basis. 3. Study/Check Assess plan; is it working? 4. Act Institutionalize improvement; continue cycle.
  • 22.
  • 23.
  • 24. Quality Circle Presentation Implementation Monitoring Solution Problem results Problem Analysis Cause and effect Data collection and analysis Problem Identification List alternatives Consensus Brainstorming Training Group processes Data collection Problem analysis Organization 8-10 members Same area Supervisor/moderator
  • 25.
  • 26.
  • 27.
  • 28. Six Sigma: DMAIC 3.4 DPMO 67,000 DPMO cost = 25% of sales DEFINE CONTROL IMPROVE ANALYZE MEASURE
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39. Product Cost Product Cost where: K d = direct manufacturing cost per unit I = input K r = rework cost per unit R = reworked units Y = yield
  • 40. Computing Product Yield for Multistage Processes Y = ( I )(% g 1 )(% g 2 ) … (% g n ) where: I = input of items to the production process that will result in finished products g i = good-quality, work-in-process products at stage i
  • 41.
  • 42.
  • 43. Pareto Analysis NUMBER OF CAUSE DEFECTS PERCENTAGE Poor design 80 64 % Wrong part dimensions 16 13 Defective parts 12 10 Incorrect machine calibration 7 6 Operator errors 4 3 Defective material 3 2 Surface abrasions 3 2 125 100 %
  • 44. Pareto Chart Percent from each cause Causes of poor quality Machine calibrations Defective parts Wrong dimensions Poor Design Operator errors Defective materials Surface abrasions 0 10 20 30 40 50 60 70 (64) (13) (10) (6) (3) (2) (2)
  • 45. Flow Chart Operation Decision Start/ Finish Start/ Finish Operation Operation Operation Operation Decision
  • 46. Check Sheet COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits |||| Capacitors |||| |||| |||| |||| |||| || Resistors || Transformers |||| Commands CRT |
  • 47. Histogram 0 5 10 15 20 1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1
  • 49. Control Chart 18 12 6 3 9 15 21 24 2 4 6 8 10 12 14 16 Sample number Number of defects UCL = 23.35 LCL = 1.99 c = 12.67
  • 50. Cause-and-Effect Diagram Quality Problem Out of adjustment Tooling problems Old / worn Machines Faulty testing equipment Incorrect specifications Improper methods Measurement Poor supervision Lack of concentration Inadequate training Human Deficiencies in product design Ineffective quality management Poor process design Process Inaccurate temperature control Dust and Dirt Environment Defective from vendor Not to specifications Material- handling problems Materials
  • 51.
  • 52.
  • 53.
  • 54.
  • 55.
  • 56. Copyright 2006 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.