Managing Quality
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Managing Quality

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Tools of Total Quality Management

Tools of Total Quality Management

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  • 1. Chapter 6: Managing Quality ÖZGE ÇELİK 8th April 2011
  • 2. Learning Objectives
    • Explain quality robust products and Taguchi concepts
    • Use the seven tools of TQM
    • 1. Check Sheets
    • 2. Scatter Diagrams
    • 3. Cause-and-Effect Diagrams
    • 4. Pareto Charts
    • 5. Flowcharts
    • 6. Histograms
    • 7. Statistical Process Control Charts
  • 3. Taguchi Concepts
    • Engineering and experimental design methods to improve product and process design
      • - Identify key component and process variables affecting product variation
    • Taguchi Concepts
      • - Quality robustness
      • - Quality loss function
      • - Target-oriented quality
  • 4. Quality Robustness
    • Ability to produce products uniformly in adverse manufacturing and environmental conditions
      • - Remove the effects of adverse conditions
      • - Small variations in materials and process do not destroy product quality
  • 5. Quality Loss Function
    • Shows that costs increase as the product moves away from what the customer wants
    • Costs include customer
    • dissatisfaction, warranty and service, internal scrap and repair, and costs to society
    • Traditional conformance specifications are too simplistic
    Target-oriented quality
  • 6. Quality Loss Function Unacceptable Poor Good Best Fair High loss Loss (to producing organization, customer, and society) Low loss Frequency Lower Target Upper Specification Target-oriented quality yields more product in the “best” category Target-oriented quality brings product toward the target value Conformance-oriented quality keeps products within 3 standard deviations L = D 2 C where L = loss to society D = distance from target value C = cost of deviation
  • 7. Tools of TQM
    • Tools for Generating Ideas
      • Check sheets
      • Scatter diagrams
      • Cause-and-effect diagrams
    • Tools to Organize the Data
      • Pareto charts
      • Flowcharts
    • Tools for Identifying Problems
      • Histogram
      • Statistical process control chart
  • 8. Seven Tools of TQM / / / / /// / // /// // //// /// // / Hour Defect 1 2 3 4 5 6 7 8 A B C / / // / 1. Check Sheet: An organized method of recording data
  • 9. Seven Tools of TQM 2. Scatter Diagram: A graph of the value of one variable vs. another variable Absenteeism Productivity
  • 10. Seven Tools of TQM 3. Cause-and-Effect Diagram: A tool that identifies process elements (causes) that might effect an outcome Cause Materials Methods Manpower Machinery Effect
  • 11. Cause-and-Effect Diagrams Material (ball) Method (shooting process) Machine (hoop & backboard) Manpower (shooter) Missed free-throws Rim alignment Rim size Backboard stability Rim height Follow-through Hand position Aiming point Bend knees Balance Size of ball Lopsidedness Grain/Feel (grip) Air pressure Training Conditioning Motivation Concentration Consistency
  • 12. Seven Tools of TQM 4. Pareto Chart: A graph to identify and plot problems or defects in descending order of frequency Frequency Percent A B C D E
  • 13. Pareto Charts Number of occurrences Room svc Check-in Pool hours Minibar Misc. 72% 16% 5% 4% 3% 12 4 3 2 54 – 100 – 93 – 88 – 72 70 – 60 – 50 – 40 – 30 – 20 – 10 – 0 – Frequency (number) Causes and percent of the total Cumulative percent Data for October
  • 14. Seven Tools of TQM 5. Flowchart (Process Diagram): A chart that describes the steps in a process
  • 15. Flow Charts MRI Flowchart
    • Physician schedules MRI
    • Patient taken to MRI
    • Patient signs in
    • Patient is prepped
    • Technician carries out MRI
    • Technician inspects film
    • If unsatisfactory, repeat
    • Patient taken back to room
    • MRI read by radiologist
    • MRI report transferred to physician
    • Patient and physician discuss
    11 10 20% 9 8 80% 1 2 3 4 5 6 7
  • 16. Seven Tools of TQM 6. Histogram: A distribution showing the frequency of occurrences of a variable Distribution Repair time (minutes) Frequency
  • 17. Seven Tools of TQM 7. Statistical Process Control Chart: A chart with time on the horizontal axis to plot values of a statistic Upper control limit Target value Lower control limit Time
  • 18. Statistical Process Control (SPC)
    • Uses statistics and control charts to tell when to take corrective action
    • Drives process improvement
    • Four key steps
      • - Measure the process
      • - When a change is indicated, find the assignable cause
      • - Eliminate or incorporate the cause
      • - Restart the revised process
  • 19. An SPC Chart Upper control limit Coach’s target value Lower control limit Game number | | | | | | | | | 1 2 3 4 5 6 7 8 9 20% 10% 0% Plots the percent of free throws missed
  • 20. Inspection
    • Involves examining items to see if an item is good or defective
    • Detect a defective product
      • Does not correct deficiencies in process or product
      • It is expensive
    • Issues
      • When to inspect
      • Where in process to inspect
  • 21. When and Where to Inspect
    • At the supplier’s plant while the supplier is producing
    • At your facility upon receipt of goods from the supplier
    • Before costly or irreversible processes
    • During the step-by-step production process
    • When production or service is complete
    • Before delivery to your customer
    • At the point of customer contact
  • 22. Inspection
    • Many problems
      • Worker fatigue
      • Measurement error
      • Process variability
    • Cannot inspect quality into a product
    • Robust design, empowered employees, and sound processes are better solutions
  • 23. Source Inspection
    • Also known as source control
    • The next step in the process is your customer
    • Ensure perfect product to your customer
    Poka-yoke is the concept of foolproof devices or techniques designed to pass only acceptable product
  • 24. Service Industry Inspection Attractive, well-organized, stocked, good lighting Rotation of goods, organized, clean Neat, courteous, very knowledgeable Display areas Stockrooms Salesclerks Nordstrom Department Store Standard What is Inspected Organization
  • 25. Attributes Versus Variables
    • Attributes
      • Items are either good or bad, acceptable or unacceptable
      • Does not address degree of failure
    • Variables
      • Measures dimensions such as weight, speed, height, or strength
      • Falls within an acceptable range
    • Use different statistical techniques
  • 26. TQM In Services
    • Service quality is more difficult to measure than the quality of goods
    • Service quality perceptions depend on
      • Intangible differences between products
      • Intangible expectations customers have of those products
  • 27. Service Quality The o perations m anager must recognize:
    • The tangible component of services is important
    • The service process is important
    • The service is judged against the customer’s expectations
    • Exceptions will occur
  • 28. Determinants of Service Quality
    • Reliability
    • Responsiveness
    • Competence
    • Access
    • Courtesy
    • Communication
    • Credibility
    • Security
    • Understanding/ knowing the customer
    • Tangibles
  • 29. Service Recovery Strategy
    • Managers should have a plan for when services fail
    • Marriott’s LEARN routine
      • L isten
      • E mpathize
      • A pologize
      • R eact
      • N otify
  • 30. Managerial Implications
    • We will have plan for when services fail.
    • We will recognize that the service is judged against the customer’s expentations.