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Operations Management
Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Service Industry Inspection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Learning Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Learning Objectives - continued ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
To Make the Quality Focus Work ,[object Object],[object Object],[object Object],[object Object]
Ways in Which Quality Can Improve Productivity ,[object Object],[object Object],[object Object],[object Object],Reduced Costs Increased productivity Lower rework and scrap costs Lower warranty costs Increased Profits Improved Quality
Flow of Activities Necessary to Achieve Total Quality Management ,[object Object],Quality Principles Employee Fulfillment Customer Satisfaction
Organizational Practices ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Quality Principles ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Employment Fulfillment ,[object Object],[object Object],[object Object]
Customer Satisfaction ,[object Object],[object Object],[object Object]
Definitions of Quality ,[object Object],[object Object],[object Object],[object Object]
Dimensions of Quality for Goods Operation Reliability & durability Conformance Serviceability Appearance Perceived quality Quality
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
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Malcom Baldrige National Quality Award
Baldrige Award Criteria Framework    
Costs of Quality ,[object Object],[object Object],[object Object],[object Object]
EC Environmental Standard ISO 14000 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
International Quality Standards ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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!
TQM ,[object Object],[object Object]
Achieving  Total Quality Management Organizational Practices Quality Principles Employee Fulfillment Attitudes  (e.g., Commitment) How to Do What to Do Effective Business Customer Satisfaction
Deming’s Fourteen Points ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Deming’s Points - continued ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Concepts of TQM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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.
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
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.
Benchmarking ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Just-in-Time (JIT) ,[object Object],[object Object],[object Object],[object Object]
Just-in-Time (JIT) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Just-In-Time (JIT) Example Scrap Work in process inventory level (hides problems) Unreliable Vendors Capacity Imbalances
Just-In-Time (JIT) Example Scrap Reducing inventory reveals problems so they can be solved. Unreliable Vendors Capacity Imbalances
Tools for TQM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cause and Effect Diagram Example Too many  defects Problem
Cause and Effect Diagram Example Method Manpower Material Machinery Too many  defects Main Cause Main Cause
Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many  defects Sub-Cause
Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many  defects Tired Old Slow
Fishbone Chart - Problems with Airline Customer Service

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Operations management ppt @ bec doms bagalkot

  • 2.
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  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Dimensions of Quality for Goods Operation Reliability & durability Conformance Serviceability Appearance Perceived quality Quality
  • 15. 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
  • 16.
  • 17. Baldrige Award Criteria Framework  
  • 18.
  • 19.
  • 20.
  • 21. 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!
  • 22.
  • 23. Achieving Total Quality Management Organizational Practices Quality Principles Employee Fulfillment Attitudes (e.g., Commitment) How to Do What to Do Effective Business Customer Satisfaction
  • 24.
  • 25.
  • 26.
  • 27. 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.
  • 28. 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
  • 29. 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.
  • 30.
  • 31.
  • 32.
  • 33. Just-In-Time (JIT) Example Scrap Work in process inventory level (hides problems) Unreliable Vendors Capacity Imbalances
  • 34. Just-In-Time (JIT) Example Scrap Reducing inventory reveals problems so they can be solved. Unreliable Vendors Capacity Imbalances
  • 35.
  • 36. Cause and Effect Diagram Example Too many defects Problem
  • 37. Cause and Effect Diagram Example Method Manpower Material Machinery Too many defects Main Cause Main Cause
  • 38. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many defects Sub-Cause
  • 39. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many defects Tired Old Slow
  • 40. Fishbone Chart - Problems with Airline Customer Service

Editor's Notes

  1. 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.
  2. This slide 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. On Quiz: An improvement in quality will decease production costs.
  3. This slide simply introduces the four activities. Subsequent slides expand on each .
  4. Read Slide…………………. Point out the difference between “leadership” and “management.”………….a leader will rally the employees to share the same vision and mutually work together to achieve the same goals. To manage is to ensure that all the resources are working towards the same goal. The point should also be made, again, about the need for involvement and commitment throughout the organization.
  5. Read Slide……………………… Discuss the importance of employee involvement. All of the above principles can be esier achieved when there is a high level of employee involvement.
  6. This slide can be used to form the basis for a discussion of empowerment. Read Slide……………………… Discuss empowerment - begin by asking students to define the term. 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.)
  7. The main point that one might make with this slide is that the customer is, ultimately, the most important person in your business.
  8. Once you have introduced these definitions of quality, ask students to provide example of products that use them.
  9. 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 .
  10. This slide simply illustrates the relationships between quality and other elements of the firm.
  11. You might make the point that companies actually do consider this a prestigious award. For further information, visit the web site: http://www.quality.nist.gov
  12. On quiz………prevention costs.
  13. 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.
  14. What problems they would foresee in implementing this process?
  15. A point to be made here is that TQM is not a program but a philosophy. All functions within an organization must be involved in quality or TQM Includes manufacturing, logistics, maintenance, accounting, and all levels of employees.
  16. Again, a point to be made here is the universality required to achieve TQM.
  17. One point to make here is that this list represents a recent expression of Demings 14 points - the list is still evolving. You notice that many of these fourteen points seem to be simply common sense. Consider jobs you have held. Were these points emphasized or implemented by their employers? If not, why not? Proper approaches to quality are not “programs,” with limited involvement and finite duration, but rather philosophies which must become ingrained throughout the organization.
  18. This slide simply introduces concepts of TQM . Explain later
  19. 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. On Quiz: Kaizen is similar to TQM in that both focus on continuous improvement.
  20. 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
  21. 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.
  22. This slide introduces a discussion about JIT. Subsequent slides elaborate. On Quiz: Waste reduction is central to the Just-In-Time philosophy. Waste of inventory or excessive inventory works against the J.I.T. concept and contributes to quality problems.
  23. This might be a good time to differentiate between “push”and “pull” systems. Do Beer example Subsequent slides elaborate on the role of JIT and inventory levels in hiding problems.
  24. Remember this slide!
  25. Note that reducing inventory enables problems to be seen - it does not necessarily fix them.
  26. This slide is to simply introduce the tools of TQM. Q. F. D. We discussed this one last week. It determines what will satisfy the customer, and translates those customer desires into the target design. Quality Loss Function is a mathematical function that identifies all costs connected with poor quality and shows how these costs increase as product moves from what the customer wants. Pareto’s rule states that 80% of a firm’s problems are a result of 20% of the causes. It’s a graphical method of identifying the few critical items as opposed to many less important ones. As Spock would say on Star Trek, “sacrifice the trivial many to save the vital few, it’s logical. Be careful to watch the wording on the quiz on this ones. Fish-Bone, or Cause & Effect, Ishikawa chart is used to identify the location where quality problems are. It helps identify the source of a problem. Poke-Yoke is a Japanese term for error proofing. It usually means a device or technique that ensures a good unit every time. Such devices should lead to fewer inspection points.
  27. This slide illustrates a Cause and Effect Chart for a practical problem.