Chapter 6. Managing Quality. Outline. Quality And Strategy Defining Quality Why Quality is important? Seven tools of TQM. Quality and Strategy. Managing quality supports differentiation , low cost , and response strategies Quality helps firms increase sales and reduce costs
The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
American Society for Quality
Quality ImprovementCosts of Quality
Refers to a quality emphasis that:
Encompasses entire organization, from
supplier to customer. And Stresses a
commitment by management to have a continuing, companywide drive toward excellence in all aspects of products and services that are important to the customer
Identify the improvement and make a plan
Implement the plan
Is the plan working?
Test the planShewhart’s PDCA Model for Continuous Improvement
Define critical outputs and identify gaps for improvement
Measure the work and collect process data
Analyze the data
Improve the process
Control the new process to make sure new performance is maintainedSix Sigma Improvement Model
Selecting best practices to use as a standard for performance
Use internal benchmarking if you’re big enough
JIT systems are designed to produce or deliver goods
as they are needed
Relationship to quality:
Unreliable Vendors to Quality?
ScrapJust-In-Time (JIT) Example
Work in process inventory level(hides problems)
Reducing inventory revealsproblems so they can be solved
(a) Check Sheet: An organized method of recording data
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Defect 1 2 3 4 5 6 7 8
Productivity to Quality?
AbsenteeismSeven Tools for TQM
(b) Scatter Diagram: A graph of the value of one variable vs. another variable
Cause to Quality?
MachinerySeven Tools for TQM
(c) Cause and Effect Diagram: A tool that identifies process elements (causes) that might effect an outcome
Machinery to Quality?
Insufficient clean pillows
& blankets on-board
Deicing equipment not available
supply of magazines
Mechanical delay on plane
Broken luggage carousel
Inadequate special meals on-board
Dissatisfied Airline Customer
Understaffed ticket counters
Poor check-in policies
Poorly trained attendants
Percent to Quality?
A B C D ESeven Tools for TQM
(d) Pareto Charts: A graph to identify and plot problems or defects in descending order of frequency
Data for October to Quality?
Number of occurrences
Room svc Check-in Pool hours Minibar Misc.
72% 16% 5% 4% 3%
Causes and percentPareto Charts
(e) Flow Charts (Process Diagrams): A chart that describes the steps in a process
Sealing Weighing Labeling to Quality?
Quick freeze storage
(4 to 6 hrs)
Shipping dockFlow Charts
Packing and shipping process
Distribution to Quality?
Repair time (minutes)Seven Tools for TQM
(f) Histogram: A distribution showing the frequency of occurrence of a variable
Upper control limit to Quality?
Lower control limit
TimeSeven Tools for TQM
(g) Statistical Process Control Chart: A chart with time on the horizontal axis to plot values of a statistic
Plots the percent of free throws missed to Quality?
Upper control limit
Coach’s target value
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1 2 3 4 5 6 7 8 9
Lower control limit
Game numberAn SPC Chart
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 processes
When production or service is complete
Before delivery from your facility
At the point of customer contact