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Managing Quality. 12 July 2001. Introduction. What: quality in operations management Where: Quality affects all goods and services Why: Customers demand quality. What is Quality. High quality products Low quality products What does quality mean to you?. American Society for Quality.

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managing quality

Managing Quality

12 July 2001

introduction
Introduction
  • What: quality in operations management
  • Where: Quality affects all goods and services
  • Why: Customers demand quality
what is quality
What is Quality
  • High quality products
  • Low quality products
  • What does quality mean to you?
american society for quality
American Society for Quality
  • “The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs”
user based definition
User-Based Definition
  • “Quality lies in the eye of the beholder”
  • Higher quality = better performance
  • Higher quality = nicer features
manufacturing based definition
Manufacturing-Based Definition
  • Quality = conforming to standards
  • “Making it right the first time”
product based definition
Product-Based Definition
  • Quality = a measurable variable
our definition
Our Definition
  • Quality: The ability of a product or service to meet customer needs
implications of quality
Implications of Quality
  • Company Reputation
  • Product Liability
  • Global Implications
global implications
Global Implications
  • National Quality Awards:
  • US: Malcolm Baldridge National Quality Award
  • Japan: Deming Prize
  • Canada: National Quality Institute Canada Awards for Excellence
canada award winners 2000
Canada Award Winners 2000
  • Aeronautical and Technical Services
  • British Columbia Transplant Society
  • Delta Hotels
  • Honeywell Water Controls Business Unit
quality and strategy
Quality and Strategy
  • Differentiation
  • Cost Leader
  • Response
quality and profitability
Quality and Profitability
  • Sales Gains
  • Improved Response
  • Higher Prices
  • Improved Reputation

Improved Quality

Increased Profits

  • Reduced Costs
  • Increased Productivity
  • Lower Rework, Scrap
  • Lower Warranty Costs
costs of quality
Costs of Quality
  • Prevention Costs
  • Appraisal Costs
  • Internal Failure
  • External Costs
international standards
International Standards
  • ISO 9000
  • Establish quality management procedures
    • Documented processes
    • Work Instructions
    • Record Keeping
  • Does NOT tell you how to make a product!
total quality management
Total Quality Management
  • TQM – Total Quality Management
  • Quality emphasis throughout an organization
  • From suppliers through to customers
deming s 14 points
Deming’s 14 Points
  • Create consistency of purpose
  • Lead to promote change
  • Build quality into the product, stop depending on inspections to catch problems
  • Build long-term relationships based on performance instead of awarding business on the basis of price
  • Continuously improve product, quality and service
  • Start training
deming s 14 points1
Deming’s 14 Points
  • Emphasize leadership
  • Drive out fear
  • Break down barriers between departments
  • Stop haranguing workers
  • Support, help and improve
  • Remove barriers to pride in work
  • Institute a vigorous program of education and self-improvement
  • Put everybody in the company to work on transformation
tqm concepts
TQM Concepts
  • Continuous Improvement
  • Employee Empowerment
  • Benchmarking
  • Just-In-Time
  • Taguchi
  • Knowledge of Tools
continuous improvement1
Continuous Improvement
  • Kaizen
  • Zero Defects
  • Six Sigma
employee empowerment
Employee Empowerment
  • Involve employees in every step of production
  • High involvement by those who understand the shortcomings of the system
  • Quality circle
benchmarking
Benchmarking
  • Pick a standard or target to work towards
  • Compare your performance
  • Best practices in the industry
just in time
Just-In-Time
  • Produce or deliver goods just when they are needed
  • Low inventory on hand
  • Keeps evidence of errors fresh
taguchi concepts
Taguchi Concepts
  • Quality robustness
  • Quality Loss Function
  • Target-oriented Quality
tqm tools
TQM Tools
  • Check Sheet
  • Scatter Diagram
  • Cause and effect diagram (fishbone)
  • Pareto Chart – 80-20 Rule
  • Flow Charts
  • Histogram
  • Statistical Process Control
inspection
Inspection
  • Attribute Inspection
  • Variable Inspection
inspection1
Inspection
  • At supplier’s plant
  • Upon receipt of goods from supplier
  • Before costly processes
  • During production
  • When production complete
  • Before delivery
  • At point of customer contact
source inspection
Source Inspection
  • Employees self-check their work
  • Poka-yoke 
statistical process control
Statistical Process Control
  • Apply statistical techniques to ensure processes meet standards
  • Natural variations
  • Assignable variations
  • Goal: signal when assignable causes of a variation are present
statistics
Statistics
  • Mean
  • Standard deviation
  • Natural variation
  • Assignable variation
control charts
Control Charts
  • X Bar Chart
  • R Chart 
in control vs out of control
In Control vs Out Of Control
  • In control and producing within control limits
  • In control, but not producing within control limits
  • Out of control
central limit theorem
Central Limit Theorem
  • Mean
  • Standard Deviation
  • 95.5%
  • 99.73%
  • Control Limits
using control charts
Using Control Charts
  • Mean changing –
  • Range changing