Managing Engineering and Technology Managing Engineering and Technology Third EditionThird EditionBabcock and MorseBabcock and Morse

Managing Production Managing Production OperationsOperations

Chapter 12Chapter 12

D e c i s i o n M a k i n g

P l a n n i n g

O r g a n i z i n g

L e a d i n g

C o n t r o l l i n g

M a n a g e m e n t F u n c t i o n s

R e s e a r c h

D e s i g n

P r o d u c t i o n

Q u a l i t y

M a r k e t i n g

P r o j e c t M a n a g e m e n t

M a n a g i n g T e c h n o l o g y

T i m e M a n a g e m e n t

E t h i c s

C a r e e r

P e r s o n a l T e c h n o l o g y

M a n a g i n g E n g i n e e r i n g a n d T e c h n o l o g y

Advanced OrganizerAdvanced Organizer

Chapter ObjectivesChapter Objectives• Explain and be able to use the Explain and be able to use the

statistics of qualitystatistics of quality

• Describe the quality revolutionDescribe the quality revolution

• Recognize the methods of work Recognize the methods of work measurementmeasurement

Statistical Quality ControlStatistical Quality Control

• Process Control ChartsProcess Control Charts

• Inspection and SamplingInspection and Sampling

QualityQuality• Fitness for UseFitness for Use• Meeting the Requirements, Meeting the Requirements,

Needs, and Desires of the Needs, and Desires of the Customer Customer

• MeasurableMeasurable• Each Person’s ResponsibilityEach Person’s Responsibility

BackgroundBackgroundTotal Quality ManagementTotal Quality Management

• DemingDeming

• JuranJuran

• CrosbyCrosby

• Baldrige AwardBaldrige Award

Quality For:Quality For:• Production processesProduction processes

• Business processesBusiness processes

• Service processesService processes

• Educational processesEducational processes

Why?Why?TQM in IndustryTQM in Industry

• Bottom lineBottom line

• CompetitionCompetition

• Quality problemsQuality problems

• Adaptability to changeAdaptability to change

TQMTQMKey Words and PhrasesKey Words and Phrases

• CustomerCustomer

• Commitment by managementCommitment by management

• EmpowermentEmpowerment

• Process analysisProcess analysis

• Training teamwork Training teamwork

• Long termLong term

Conceptual OverviewConceptual Overview

M a n a g e m e n t C u s t o m e r P r o c e s s W o r k F o r c e

P r o b l e m S o l v i n g

M e a s u r e s / T o o l s

Q u a l i t y

Basic Concepts of QualityBasic Concepts of Quality• Management commitmentManagement commitment

• Focus on customerFocus on customer

• Continuous improvement of Continuous improvement of processesprocesses

• Utilization of entire work forceUtilization of entire work force

• Performance measures for the Performance measures for the processesprocesses

Management CommitmentManagement Commitment• Participating in Quality CouncilParticipating in Quality Council

• Participating in ISO 9000 TeamParticipating in ISO 9000 Team

• MBWAMBWA

• Periodically meeting with all Periodically meeting with all employeesemployees

• Empowering employeesEmpowering employees

CustomerCustomer• Internal or externalInternal or external

• Any person receiving the outputAny person receiving the output

Customer FeedbackCustomer Feedback• Identify customer needsIdentify customer needs

• Determine opportunities for Determine opportunities for improvementimprovement

• Discover priorities of quality Discover priorities of quality relative to other attributesrelative to other attributes

ProcessProcess

Focus on process as well as the Focus on process as well as the resultsresults

Process for ImprovementProcess for Improvement• PlanPlan

• DoDo

• CheckCheck

• ActAct

Work ForceWork Force• Human ResourcesHuman Resources

• TeamsTeams

• Training and EducationTraining and Education

TeamsTeams• Committed to achieving goalsCommitted to achieving goals

• Serve interests of its membersServe interests of its members

• Exchange ideas freely and clearlyExchange ideas freely and clearly

• Have common goalsHave common goals

• Each team member treated Each team member treated equallyequally

Training Program Training Program SuggestionsSuggestions

• Teach tools and techniquesTeach tools and techniques

• Use as team-building Use as team-building opportunitiesopportunities

• Make training an ongoing activityMake training an ongoing activity

MeasurementsMeasurements• MeasureMeasure

• EvaluateEvaluate

• Manage implementationManage implementation

• Tracking systemTracking system

• ControlControl

MeasurementsMeasurements• KPI - Key Performance IndicatorsKPI - Key Performance Indicators

• Measures with focus on Measures with focus on objectivesobjectives

Examples of MeasurementsExamples of Measurements• Positive customer feedbackPositive customer feedback

• Man-hours on administrative Man-hours on administrative taskstasks

• Percent of engineers employedPercent of engineers employed

• Positive customer feedback this Positive customer feedback this year over last year’syear over last year’s

• Funds received over funds Funds received over funds obligatedobligated

Tools and TechniquesTools and Techniques• BrainstormingBrainstorming

• Nominal Group TechniqueNominal Group Technique

• Affinity DiagramAffinity Diagram

• Flow ChartFlow Chart

• Pareto ChartPareto Chart

• Run ChartRun Chart

• Fishbone ChartFishbone Chart

• Statistical Process ControlStatistical Process Control

ISO 9000ISO 9000Requires an organization to create Requires an organization to create

processes in all functional areas processes in all functional areas that focus on customer needs that focus on customer needs and reasonable expectation and and reasonable expectation and that validate requirements of that validate requirements of quality.quality.

ISO DifferenceISO DifferenceDoes not contain substantive Does not contain substantive

requirements in these areas:requirements in these areas:

• Senior Management participationSenior Management participation

• Human Resource issuesHuman Resource issues

• Strategic PlanningStrategic Planning

• Process ImprovementProcess Improvement

QS-9000QS-9000• Developed by Chrysler, Ford, Developed by Chrysler, Ford,

General MotorsGeneral Motors

• Intent is to provide for Intent is to provide for Continuous Improvement, Continuous Improvement, Management Involvement, and Management Involvement, and Business PlansBusiness Plans

Work MeasurementWork Measurement• Direct time studyDirect time study

• Work samplingWork sampling

Work MeasurementWork Measurement• Standard timeStandard time

• Normal timeNormal time

• Normal paceNormal pace

• Actual timeActual time

• AllowancesAllowances

Other Manufacturing Other Manufacturing FunctionsFunctions

• Maintenance and Facilities Maintenance and Facilities EngineeringEngineering

• Human ResourcesHuman Resources

• PurchasingPurchasing