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Chapter 6: Managing Quality BUSI 2016

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Quality What is quality? In what ways does quality impact the organization? What are some of the reasons why we must consider quality? What conditions must be present in order to increase quality? How do we get quality?

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Quality What is quality? Several definitions If a product and its features comply to the user needs Making products without defects Meeting a precise and measurable variable (benchmarks, standards) In what ways does quality impact the organization? Improved Response Flexible Pricing Improves Reputation Increased productivity Lower rework and scrap (defects) Lower warranty cost Ethics recalls?

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Quality What are some of the reasons why we must consider quality? Our reputation Product liability Global competition What conditions must be present in order to increase quality? Acceptance of defects Organizational culture and committment Understanding the principles of quality Engaged employees Measurement How do we get quality? Incrementally

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Approaches Continuous Improvement

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Approaches Six Sigma Program approach consists of many QI projects High reliance on statistics Strategic, Process, Tools DMAIC Define Purpose Process Data Link to strategy Measure Collect data Analyze Use tools Method Improve Modify Process Control Ensure Benefit

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Approaches Employee Empowerment (EE) EE more closely related to improvements than top-down when nonconformance occurs, the worker is seldom wrong. Techniques Including employees in communication networks Developing open and supporting supervisors Responsibility lies with High Morale Teams and Quality Circles

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Approaches - Benchmarking Benchmarking Just In Time (JIT) Taguchi Concepts Quality Robust Quality Loss Function

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Quality Tools - Check Sheets

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Quality Tools Fishbone Diagram

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Quality Tools Scatterplots

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Quality Tools Pareto Charts 80% of a firms problems related to 20% of the causes

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Quality Tools Flowchart Depict Sequence of tasks Decisions within a process Concurrent tasks Detect Repetition Unneeded tasks

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Quality Tools Control Chart (SPC)

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Inspection Where and when? At your suppliers plant? Before acceptance of a delivery of supplies? Before a costly process? Before delivery? Before an irreversible process? ???

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Inspection Source Inspection (or control) Employees Monitor their work at the source Poka-yokes, checklists Assign Inspection Points Before acceptance of a delivery of supplies? Before a costly process? Random?

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Inspection Attributes vs Variables Attributes Defects (either yes or no) Variables Something measureable (weight, length, time, etc)

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Statistical Process Control Application of Statistical Techniques to ensure adherence to standards Variation Natural Cant be eliminated Assignable attributable to something. Must be IDENTIFIED and ELIMINATED

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Statistical Process Control

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Video https://www.youtube.com/watch?v=zvp8qmH3Eos