BeniAsllani

UniversityofTennesseeatChattanoogaOperationsManagement-5thEditionChapter3RobertaRussell&BernardW.Taylor,IIIQualityManagementQualityManagementOutlineMeaningofQualityDimensionsofqualitySpecificationsandconformancequalityCostofqualityLevelsofqualityimprovementTotalqualitymanagement(TQM)2QualityManagementOutline(2)QualitymanagementapproachesSixsigmaBaldrigeAwardISO9000Plan-do-check-actcycle(part2handout)Qualitytools3QualityManagementMeaningofQualityAmericanSocietyforQuality:Qualityis"thetotalityoffeaturesandcharacteristicsthatsatisfycustomerneeds"Customer-basedquality:meetingcustomerexpectationsorrequirementsAffectedbyproductpositioningDifferentfordifferenttargetmarketsDifferentfordifferentcustomersinthesametargetmarket4QualityManagementMeaningofQuality(2)Fitnessforuse:theproductorserviceperformsasintendedFeatures:extraitemsaddedtobasiccharacteristicsQualityofdesign:thedegreetowhichqualitycharacteristicsaredesignedintoagoodorserviceValue:Productorserviceissuperiortocompetitorswithsimilarprices.5QualityManagementMeaningofQuality(3)Perceivedquality:thequalitythatthecustomerthinksshegotDiffersbycustomerProducer-basedquality:conformancetospecifications.SpecificationsmustbebasedoncustomerexpectationsorrequirementsSpecificationswillchangeovertime6QualityManagementDimensionsofProductQuality(Garvin–page80)PerformanceFeaturesReliabilityConformancetospecificationsDurabilityServiceabilityandqualityofserviceAestheticsSafetyOtherperceptions7QualityManagementDimensionsofServiceQuality

(pages81-82)TimeandtimelinessCompletenessCourtesyConsistencyAccessibilityandconvenienceAccuracyResponsivenessPhysicalelementsoftheservice8QualityManagementFitnessforUseProducer’sPerspectiveConsumer’sPerspectiveQualityofConformanceConformancetospecificationsCostQualityofDesignQualitycharacteristicsPriceValueMarketingProductionMeaningofQualityMeaningofQuality(3)QualityManagementProductorServiceSpecificationCharacteristicsoftheproductorservicewhichwillbemeasuredtodeterminequalityTargetvaluesforeachcharacteristicShouldbebasedoncustomerexpectationsShouldmeetanylegalrequirementsIfaproductorserviceconsistentlymeetsspecifications,ithasconformancequality.10QualityManagementMeasuringServiceQualityAbsolutemeasuresarebasedonafixedstandard.Timeliness%oftransactionswithouterrors.Perceptualmeasuresarebasedoncustomers’opinions.Howimportantwasthischaracteristictothecustomer?Howsatisfiedwasthecustomer?

11QualityManagementCustomerRequirementsProductSpecificationsStatisticalProcessControl:Measure&monitorqualityMeetsSpecifications?ProcessSpecificationsYesConformanceQualityFixprocessorinputsNoProductlaunchactivities:ReviseperiodicallyOngoingActivitiesQualityManagementAchievingConformanceQualityProductorservicedesignProcesstechnologyandequipmentPurchasingandmaterialsmanagementPlanningandschedulingHiring,training,andsupervisionMeasurementandcontrol13QualityManagementCostofQualityCostofgoodqualityPreventioncostsAppraisalcostsCostofpoorqualityInternalfailurecostsExternalfailurecostsSeepages99-10014QualityManagementQuality–CostRelationshipCostofqualityDifferencebetweenpriceofnonconformanceandconformanceCostofdoingthingswrong20to35%ofrevenuesCostofdoingthingsright3to4%ofrevenuesProfitabilityInthelongrun,qualityisfree15QualityManagementLevelsofqualityimprovementIncremental:manysmallimprovementsadduptomajorimprovementsatmodestcostUsesPlan-Do-Check-ActcycleandqualitytoolsBreakthroughimprovements:largeimprovementsrequiredtomeetbusinessobjectivesRe-engineertheprocessSixSigmaisoftenusedNewtechnologyisoftenneeded16QualityManagementTotalQualityManagementCommitmenttoqualitythroughoutorganizationPrinciplesofTQMCustomer-orientedLeadershipStrategicplanningEmployeeresponsibilityContinuousimprovementCooperationStatisticalmethodsTrainingandeducation17QualityManagementSixSigma(1)AprocessfordevelopinganddeliveringnearperfectproductsandservicesMeasureofhowmuchaprocessdeviatesfromperfectionMaximumalloweddefects:3.4defectspermillionopportunities18QualityManagementSixSigma(2)SixSigmaisabusinessimprovementmethodologythatfocusesanorganizationon:UnderstandingandmanagingcustomerrequirementsAligningkeybusinessprocessestoachievethoserequirementsUtilizingrigorousdataanalysistominimizevariationinthoseprocessesDrivingrapidandsustainableimprovementtobusinessprocesses19QualityManagementSixSigma(3)AhighperformancemanagementsystemthathelpsanorganizationAligntheirbusinessstrategytocriticalimprovementeffortsMobilizeteamstoattackhighimpactprojectsAccelerateimprovedbusinessresultsGoverneffortstoensureimprovementsaresustained20QualityManagementDMAICAprocessimprovementstrategyusedinsixsigmaDefineopportunityMeasureperformanceAnalyzeopportunityImproveperformanceControlperformance21QualityManagementDesignforSixSigma(DFSS)AproactiveapproachfordesigningSixSigmaqualityintoaproduct,service,orprocess22QualityManagementBlackBeltsandGreenBeltsBlackBeltprojectleaderMasterBlackBeltateacherandmentorforBlackBeltsGreenBeltsprojectteammembersQualityManagement3.4DPMO67,000DPMOcost=25%ofsalesDEFINECONTROLIMPROVEANALYZEMEASURESixSigma:DMAICQualityManagementBaldrigeAwardCompetitivequalityawardpresentedby U.S.government5awardcategories:Manufacturing,services,smallbusiness,healthcare,educationAllwrittenapplicationsarereviewedbytrainedexaminersSitevisitstoleadingcandidatesMaximumof2awardspercategory25QualityManagementBaldrigeAwardCriteriaFramework

ASystemsPerspectiveOrganizationalProfileMeasurement,analysis,&knowledgemanagement(90pts)Leadership(120pts)Customer&MarketFocus(85pts)StrategicPlanning(85pts)HumanResourceDevelopment&Mgmt.(85pts)ProcessMgmt.(85pts)BusinessResults(450pts)Total=1,000ptsQualityManagementBaldrigeAward-BusinessResultsCustomer-focusedresultsProductandserviceperformanceFinancialandmarketresu