Ops management lecture 5 quality management

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Ops Management Lecture 5

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Ops management lecture 5 quality management

  1. 1. Chapter fiveQuality management
  2. 2. Learning objectives• Understand the need for quality in organizations• Describe different definitions of quality• Describe a good or service in terms of the quality dimensions• Identify and describe the eight principles of quality systems• Discuss some of the popular quality standards• Name and describe the contributions of some of the quality gurus• Describe the roles of various South African organisations for quality
  3. 3. Learning objectives (cont.)• Discuss some of the popular quality standards• Name and describe the contributions of some of the quality gurus• Describe the roles of various South African organisations for quality.
  4. 4. 5.1 Introduction• Quality: – Expectations – Standards – Apply to both goods and services – Set by customers – Government regulations.
  5. 5. 5.2 Exploring definitions of quality• Highly perceptual & value driven• No set definition• Quality can be defined in terms of: – fitness for use – conformance to requirements e.g. meets specification – freedom from deficiencies – Transcendentally – something intuitive but impossible to communicate e.g. Beauty of love, greatness etc. – a system e.g. ISO9000 – Culturally e.g. management style, work practices etc. – Judgmentally – what customer says it is – Value – more benefits than the personal sacrifices made to acquire
  6. 6. 5.2 Exploring definitions of qualityQuality dimensions for goods – Performance – achieves intended purpose – Features – “bells and whistles” – Reliability – does it perform consistently? – Conformance – specification within prescribed tolerances – Durability – tolerates stress or trauma without failing – Serviceability – ease of maintenance and repair – Aesthetics – does it look, feel, taste…….good? – Perceived quality – perceptions of different users – Safety – does product protect users? – Environmental friendliness – does product have a destructive effect on natural resources?
  7. 7. 5.2 Exploring definitions of qualityQuality dimensions for services – Tangibles – e.g.. Physical appearance of service facility – Reliability – is service delivered dependable and accurately? – Responsiveness – is service provider helpful and prompt? – Assurance – are employees knowledgeable and courteous? – Empathy – does service satisfy customers requirement for caring and attentive service?
  8. 8. 5.2 Exploring definitions of quality (cont.)• Why has quality become a priority? – Competition - globalisation – The customer-focused organisation - loyalty – Higher level of customer expectation – availability of information, greater number of suppliers – Performance improvement – Change in the form of organisations – Changing work force – The information revolution – The role of the ‘quality department’. Responsibility of everyone!
  9. 9. 5.3 Gurus of qualityDeming•Management of a system for improving quality•Use of statistics for continual improvement•World authority on quality management•Large influence on American and Japanese industry•Trained in engineering and mathematical physics•His mantra “continual never-ending improvement”QUALITY = JOURNEY WITHOUT A DESTINATION
  10. 10. 5.3 Gurus of quality• Deming’s14 points
  11. 11. DEMING’S 14 POINTS1.Create constancy of purpose• Organisations exist not just to make money• Also exist to serve customers and employees• Must have strategic plans• Clear vision and mission• Must be communicated throughout organisation• Must invest in innovation, training, research• Must commit resources over long term to ensure completion of quality initiativesQUALITY IMPROVEMENT LONGTERM
  12. 12. DEMING’S 14 POINTS2. Adopt a new philosophy•Customer centred approach•Based on mutual co-operation between management andwork force•Everyone is engaged in continual improvement•Reduction in defects improvement insatisfaction•Specification measurement customer servicemeasures of quality
  13. 13. DEMING’S 14 POINTS3. Cease mass inspection•Routine inspection does not add value•Inspector responsible for detecting defects – no everyoneis responsible•Increase in cost•Decrease in productivity•Instill quality at source no requirement for massinspection QUALITY IS NOT RESPONSIBILITY OF QUALITY DEPARTMENT
  14. 14. DEMING’S 14 POINTS4. Do not award business on price tags•Traditionally purchasing decisions based on price notquality•Defective raw materials = defective final product•Minimise number of suppliers•Build trust and loyalty in long term relationship MANY SUPPLIERS IMPROVED QUALITY AND DECREASED COST
  15. 15. DEMING’S 14 POINTS5. Constantly improve the system•Improve constantly and forever•Improve quality and productivity•Thus constantly reduce cost•Should occur in small incrementsPoor performance of a system Poor management!
  16. 16. DEMING’S 14 POINTS6. Institute training on the job•Essential to have necessary training•Training improves productivity and morale•Training does not guarantee successfulimplementation of a quality system
  17. 17. DEMING’S 14 POINTS7. Improve leadership•Key to improving quality•Upper management MUST be involved forwide ranging success•Supervisors aim should be to help people,machines, processes do a better job
  18. 18. DEMING’S 14 POINTS8. Drive out fear•Only way to work effectively•Culture should encourage suggestions without fear of beinglabelled “troublemaker”•Should acknowledge and reward suggested improvements•Japanese firms offer lifetime employment to overcomefears!
  19. 19. DEMING’S 14 POINTS9. Breakdown barriers betweendepartment•Must work as a team•Eradicates production problems•Work collectively to meet needs of customer TEAMWORK ATTAIN ORGANISATIONS GOALS AND OBJECTIVES
  20. 20. DEMING’S 14 POINTS10. Eliminate slogans•Remove slogans asking for zero qualitydefects etc.•Cause adversarial relationships withinworkforce
  21. 21. DEMING’S 14 POINTS11. Eliminate work standards•Once work standards met continualimprovement stops?
  22. 22. DEMING’S 14 POINTS12. Remove barriers to pride•Workers should be proud of quality work•Supervisors role should be to ensurequality not manage numbers•Casual labour can be de-motivating•Employees should feel trusted and able tomake decisions•Performance appraisals are destructive??
  23. 23. DEMING’S 14 POINTS13. Institute education and self help•Culture should be one of learning•Reinforce and reward learning•Employees should strive to achieve their best•Very motivational
  24. 24. DEMING’S 14 POINTS14. Put everyone to work•Everyone in organisation should be striving fortransformation•Transformation is EVERYONE’S job•A quality management system must thereforeinclude all workers in organisation
  25. 25. 5.3 Gurus of quality (cont.)• Juran• The Juran Trilogy: – Planning – everything begins with this. Meeting customers needs – Control – manufactured to specification – Improvement – investigation of problems, identification of root causes. Implementation of improvement
  26. 26. 5.3 Gurus of quality (cont.)• Crosby• Quality = source of profit• 14 steps• Page 121
  27. 27. 5.3 Gurus of quality (cont.)• Ishikawa• ‘Company wide quality control’• 11 points• Page 122
  28. 28. 5.4 Quality spheresFigure 5.1.
  29. 29. QUALITY SPHERESQUALITY CONTROL•Deciding what to measure•Implementing a measurement system•Measuring the selected parameters•Comparing the measurements with astandard•Taking necessary corrective action ifdeviation from standard
  30. 30. QUALITY CONTROL
  31. 31. QUALITY CONTROL
  32. 32. QUALITY SPHERESQUALITY ASSURANCEProvision of evidence to establish confidence in a product.Used to show that:-•Product fit for purpose and safe to use•Product meets legal, professional and industrial standardsand regulations•Product conforms to customer requirements•Procedures are adequate and being adhered to•All concerned parties are aware of quality requirements•Corrective action is taken as appropriate•Improvement opportunities are identified and implemented
  33. 33. QUALITY SPHERESQUALITY MANAGEMENT•Planning and implementing quality•Creating an organizational culture that promotesquality•Planning and providing resources forimplementation and maintenance of quality•Motivating and rewarding employees•Ensuring suppliers are meeting quality standardsrequired
  34. 34. 5.5 Quality contributions from other disciplines• Financial perspective• Human resources perspective• Engineering perspective.
  35. 35. 5.6 Costs of quality• Internal costs: • External costs – Incurred before – Occur post delivery delivery – Types: • Prevention costs • Appraisal costs • Internal failure costs i.e. rework
  36. 36. 5.7 Quality management systems• What is ISO 9000?• Series of standards• European• Most recent - ISO 9000:2000• Focuses on 8 principles of quality management
  37. 37. 5.7 Quality management systems (cont.)• 8 principles of quality management: – 1 Customer-focused organisation – 2 Leadership – 3 Involvement of people. – 4 Process approach. – 5 Systems approach to management. – 6 Continual improvement. – 7 Factual approach to decision making, whereby effective decisions are based on the analysis of data and information. – 8 Mutually beneficial supplier relationships
  38. 38. 5.7 Quality management systems (cont.).• Certification• Registration• Motivational or demotivational? Advantages/disadvantages. P129
  39. 39. 5.7 Quality management systems (cont.)• ISO 9000:2000• Three standards: – Fundamentals and vocabulary – Requirements – Guidelines for performance improvement – Also: • ISO 14000: Environmental standards • OHSAS: Safety standards • ISO 22000: Food safety standard
  40. 40. ISO 9000 QUALITY STANDARDS
  41. 41. ISO 9000 QUALITY STANDARDS
  42. 42. 5.8 Quality awards• Malcolm Baldrige National Quality Award [MBNQA]• Deming prize for quality• European Quality Award [EQA].
  43. 43. 5.9 South African quality organisations• SABS – South African Bureau of Standards• SAQI – South African Quality Institute• SASQ – South African Society for Quality• SAACTA. – South African Auditors and Certification Training Association
  44. 44. Summary• Foundational knowledge regarding ‘quality’• Definitions• Dimensions• Reasons for quality as a priority• Gurus• Standards and quality management• Awards• SA quality organisations.
  45. 45. NEXT SESSION• Quality tools & techniques• Essentially a workshop on quality tools• Please bring:- • Your brains! • Calculator • Graph paper • Pencil • Eraser • Ruler

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