Unit 1 Quality Management Best

8/8/2019 Unit 1 Quality Management Best

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1OM, Ch. 15 Quality Management

2009 South-Western, a part of Cengage Learning

QUALITY MANAGEMENT

DAVIDA. COLLIER

AND

JAMES R. EVANS

QM


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LO1 Explain the concepts and definitions of quality.

LO2 Describe the quality philosophies and principles ofDeming, Juran, and Crosby.

LO3 Explain the GAP model and its importance.LO4 Describe the concepts and philosophy of ISO

9000:2000.

LO5 Describe the philosophy and methods of Six Sigma.

LO6 Explain the categories of cost of qualitymeasurement.

LO7 Describe how to apply the 7 QC Tools.

LO8 Explain the concepts of kaizen and poka-yoke.

l e a r n i n g o u t c o m e s

Chapter15 Learning Outcomes


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ow! exclaimed Lauren when she saw the ski runs at Deer ValleyResort in Park City, Utah. Deer Valley has been called The Ritz-Carlton of ski resorts, and Laurens dad was expecting

exceptional services and a superior ski vacation experience after all he hadread in ski magazines. He wasnt disappointed. When he drove up to theslopes, a curbside ski valet took their equipment from his car, parking lotattendants directed him to the closest available parking, and a shuttle

transported them from the lot to Snow Park Lodge. From the shuttle, he andhis daughter walked to the slopes on heated pavers that prevent freezing andassist in snow removal. Staff provided complimentary mountain tours tofamiliarize them with the slopes. At the end of the day, they were able tostore their skis without charge at the lodge and easily retrieve them the nextmorning. The resort limits the number of skiers on the mountain to reduce

lines and congestion. Everyone is committed to ensuring that each guest has awonderful experience. Even the food is consistently rated number one by ski-enthusiast magazines.

Chapter15 Quality Management

What do you think? What satisfying service experiences similar tothe Deer Valley episode have you personally encountered?


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Qualitymanagementrefers to systematicpolicies, methods, and procedures used toensure that goods and services are producedwith appropriate levels of quality to meet the

needs of customers. Organizations today integrate quality principles

into their management systems using toolssuch as Total Quality Management (TQM), Six

Sigma, and LeanOperating Systems (Chapter17).



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A Brief

History

of

Quality

Management

Historical usesofquality managementincludetheprecisioninvolvedin buildingofEgyptianpyramids,interchangeablepartsduring Industrial Revolution,and

statisticaltoolsusedfor qualitycontrolduring WorldWar II.

Dr. Joseph JuranandDr. W. EdwardsDemingwerepioneersinthefield (morelateronthesetwo qualitygurus).

The Japaneseintegrated qualityideasandmethodsthroughouttheirorganizationsanddevelopedacultureofcontinuousimprovement.



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Understanding

Quality

Qualitycan beaconfusingconcept,partlybecausepeopleview qualityinrelationtodifferingcriteria basedontheirindividualrolesinthevaluechain,suchas:

perfection,

delightingorpleasingthecustomer,

eliminatingwaste, doingitrightthefirsttime,and/or

consistency.



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Understanding

Quality

Fitness for use is the ability of a good orservice to meet customer needs.

Qualityof conformance is the extent towhich a process is able to deliver output thatconfirms to design specifications.

Specificationsare targets and tolerancesdetermined by designers of goods andservices.



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Understanding

Quality

Quality Control means ensuringconsistencyinprocessestoachieve

conformance. Service Quality is consistentlymeeting

or exceedingcustomer expectations

(externalfocus)andservice deliverysystemperformancecriteria (internalfocus)duringallservice encounters.



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Understanding

Quality

Principles of Total Quality

1. A focusoncustomersandstakeholders,

2. A processfocussupported bycontinuousimprovementandlearning,and

3. Participationandteamwork by everyoneintheorganization.



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W. Edwards

Deming

Focuson bringingaboutimprovementsinproductandservice quality byreducinguncertaintyandvariabilityingoodsandservicesdesignand

associatedprocesses (the beginningofhisideasin 1920sand 1930s).

Higher qualityleadstohigherproductivityandlowercosts.

14 Pointsmanagementphilosophy.

Deming Cycle Plan,Do, Study,and Act.

Chapter15 Influential Leadersin Quality Management


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W. Edwards

Deming

14 Points

Point 1: Create a Vision and DemonstrateCommitment

Point 2: Learn the Philosophy

Point 3: Understand Inspection

Point 4: Stop Making Decisions Purely onthe Basis of Cost

Point 5: Improve Constantly and Forever

Point 6: Institute Training

Point 7: Institute Leadership



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W. Edwards

Deming

14 Points

Point 8: Drive Out Fear

Point 9: Optimize the Efforts of Teams

Point 10: Eliminate ExhortationsPoint 11: Eliminate Numerical Quotas

Point 12: Remove Barriers to Pride in Work

Point 13: Encourage Education and Self-Improvement

Point 14: Take Action



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Exhibit Extra

Plan: studycurrentsituation Do: implementplanontrial basis

Study: determineiftrialisworkingcorrectly

Act: standardizeimprovements

The DemingCycle


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Joseph

Juran

WroteQualityControlHandbookin 1951,acomprehensive qualitymanual.

Defined qualityasfitness foruse.

Advocateduseofqualitycostmeasurement.

QualityTrilogy: qualityplanning,quality

control,andqualityimprovement.



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Philip

B.Crosby

Wrot eQualityisFree in 1979,which broughtqualitytotheattentionoftopcorporatemanagersinthe U.S.

CrosbysAbsolutesof QualityManagementinclude:

Qualitymeansconformancetorequirements,notelegance.

Thereisnosuchthingasaqualityproblem.

Thereisnosuchthingasthe economicsofquality;doing

the jobrightthefirsttimeisalwayscheaper.

Theonlyperformancemeasurementisthecostofquality,whichisthe expenseofnonconformance.

Theonlyperformancestandardis Zero Defects (ZD).



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TheGAP model recognizesthatthereareseveralwaystomisspecifyandmismanagethecreationanddeliveryofhighlevelsofquality. Thesegapsareshowninthemodelin Exhibit15.2and explained below.

Gap 1 isthediscrepancy betweencustomerexpectationsandmanagementperceptionsofthose expectations.

Gap 2 isthediscrepancy betweenmanagement

perceptionsofwhatfeaturesconstituteatargetlevelofqualityandthetaskoftranslatingtheseperceptionsinto executablespecifications.

Chapter15 The GAP Model


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Exhibit 15.2 Gap ModelofQuality


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Gap 3 isthediscrepancy betweenqualityspecificationsdocumentedinoperatingandtrainingmanualsandplansandtheirimplementation.

Gap 4 isthediscrepancy betweenactualmanufacturingandservicedeliverysystemperformanceand externalcommunicationstothecustomers.

Gap 5 isthedifference betweenthecustomer'sexpectationsandperceptions. Thefifthgapdependsontheotherfour.

Chapter15 The GAP Model


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Exhibit 15.2 Gap ModelofQuality


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ISO 9000:2000

Qualitystandardswerecreatedin 1987 andrevisedin 1994 and2000toimproveproductquality,improvethequalityofoperationsprocesses,and

provideconfidencetoorganizationsandcustomersthatqualitysystemrequirementsarefulfilled.

Internationallyrecognized (andsometimesrequiredtodo businessincertaincountries).

Standardizeskeytermsinqualityandprovidesasetofbasicprinciplesforinitiatingqualitymanagementsystems.



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Six Sigma

Six Sigma is a business improvementapproach that seeks to find and eliminatecauses of defects and errors in manufacturing

and service processes by focusing on outputsthat are critical to customers and results in aclear financial return for the organization.

Used by companies including Motorola,AlliedSignal,Texas Instruments, and General Electric.



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Six Sigma

Defectsare any mistakes or errors that arepassed on to the customer (many people also usethe term nonconformance).

Defects per unit (DPU)=Number ofdefects discovered

Number ofunits processed



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Six Sigma

TheSixSigmaconceptcharacterizesqualityperformance bydefects per

million opportunities (dpmo),computedasDPUv 1,000,000opportunitiesfor error (or,asisoftenusedinservices, errorspermillion

opportunities epmo).



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Six Sigma

ADPUmeasuremightbelostbagspercustomer.However,customersmayhavedifferentnumbersofbags;thusthenumberofopportunitiesfor erroris

theaveragenumberofbagspercustomer.

Iftheaveragenumberofbagspercustomeris 1.6,andtheairlinerecorded3lostbagsfor 8,000passengersinonemonth (note: 12,800opportunitiesfor errorinonemonth),then

epmo = (3/8,000DPU) v 1,000,000/1.6 = 234.375



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Six Sigmas DMAIC Process

1. Define: identifycustomersandtheirpriorities;identifyanddefineasuitableproject;identifyCTQs(criticaltoqualitycharacteristics).

2. Measure: determinehowtomeasuretheprocessandhowitisperforming;identifykeyinternalprocessesthatinfluenceCTQsandmeasurecurrentdefects.

3. Analyze: determinelikelycausesofdefectsandunderstandwhydefectsaregenerated byidentifyingkeyvariablesthatcauseprocessvariation.



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Six Sigmas DMAIC Process

4. Improve: identifymeanstoremovecausesofdefects;confirmkeyvariables;modifytheprocesstostaywithinacceptablerange.

5. Control: determinehowtomaintainimprovements;puttoolsinplaceto ensurethatkeyvariablesremainwithinacceptable

rangesunderthemodifiedprocess.



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CostofQuality Measurements

Thecostofquality refers to the costs associatedwith avoiding poor quality or those incurred as aresult of poor quality.

Preventioncostsare those expended to keepnonconforming goods and services from beingmade and reaching the customer.

Appraisalcostsare those expended onascertaining quality levels through measurementand analysis of data to detect and correctproblems.



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CostofQuality Measurements

Internal-failure costsare costs incurred asa result of unsatisfactory quality that is foundbefore delivery of good or service to the

customer.

External-failure costsare incurred afterpoor-quality goods or services reach the

customer.



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The Seven QC Tools

1. Flowcharts: processmappingtoidentifythesequenceofactivitiesorflowofmaterials/informationinaprocess.

2. RunChartsandControlCharts: arunchartisalinegraphwithdataplottedovertime;controlchartsincludecontrollimits.

3. Checksheets: simpletoolsfordatacollection,ensurecompleteness.

4. Histograms: graphicallyrepresentfrequencyofvalueswithinaspecifiedgroup.

Chapter15 Seven ToolsofQuality Management


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Exhibit 15.3 The StructureofaControlChart


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Source: K. Ishikawa, Guide

to Quality Control(Tokyo:

Asian Productivity

Organization, 1982), p. 33.

Exhibit 15.4 Defective ItemChecksheet


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The Seven QC Tools

5. ParetoDiagrams: separatethevitalfewfromthetrivialmanycauses;providedirectionforselectingprojectsfor

improvement.

6. Cause-and-EffectDiagrams: representchainofrelationships;oftencalledafishbone

diagram.

7. ScatterDiagrams: graphicalcomponentofregressionanalysis.

Chapter15 Seven ToolsofQuality Management


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Exhibit 15.5

UseofPareto Diagramsfor

Progressive Analysis

Source: Small Business Guidebook to Quality Management,

Office of the Secretary of Defense, Quality Management

Office, Washington, DC (1988).


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34OM, Ch. 15 Quality Management2009 South-Western, a part of Cengage Learning

Exhibit 15.6 Cause-and-Effect DiagramforHospital Emergency Admission


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OtherQuality Improvement Strategies

Kaizenfocuses on small, gradual, and frequentimprovements over the long term with minimumfinancial investment and with participation by

everyone in the organization.

Poka-yoke (mistake-proofing) is an approach formistake-proofing processes using automatic

devices or methods to avoid simple human error.



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Poka-Yoke Examples

Machineshavelimitswitchesconnectedtowarninglightsthattelltheoperatorwhenpartsarepositionedimproperlyonthe

machine.

Fastfoodrestaurantsuseautomatedfrench-fryingmachinesthatcanonly beoperatedone

way;thefrenchfriesareprepackagedandtheequipmentautomatedtoreducethechanceofhuman error.


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