quality slides(minggu4)

7/27/2019 Quality Slides(Minggu4)

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Global Operations Management

Managing Quality& Six Sigma

(minggu 4)


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Seven Tools for TQM


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MOTOROLA QUALITY AND STRATEGY

DEFINING QUALITY Implications of Quality

Malcolm Baldrige National Quality Award New Mexico Quality Award

Cost of Quality (COQ)

INTERNATIONAL QUALITY STANDARDS ISO 9000 ISO14000


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TOTAL QUALITY MANAGEMENT Continuous Improvement

Employee Empowerment

Benchmarking Just-in-Time (JIT)

Taguchi Concepts

Knowledge of TQM Tools


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TOOLS OF TQM Check sheets

Scatter Diagrams

Cause-and-Effect Diagram Pareto Charts

Flow Charts

Histograms

Statistical Process Control (SPC)


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THE ROLE OF INSPECTIONWhen and Where to Inspect

Source Inspection

Service Industry Inspection Inspection of Attributes vs Variables

TQM IN SERVICES


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To Make the Quality Focus Work

Motorola:

Aggressively began a worldwide education program to

be sure that employees understood quality andstatistical process control

Established goals

Established extensive employee participation andemployee teams


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Ways in Which Quality CanImprove Productivity

Sales Gains Improved response

Higher Prices

Improved reputation

Reduced Costs Increased productivity Lower rework and scrap costs Lower warranty costs

Increased

Profits

Improved

Quality


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Flow of Activities Necessary toAchieve Total Quality Management

Organizational Practices

Quality Principles

Employee Fulfillment

Customer Satisfaction


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Organizational Practices

Leadership

Mission statement

Effective operating procedure

Staff support

TrainingYields: What is important and what is to be

accomplished


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Quality Principles

Customer focus

Continuous improvement

Employee empowerment

Benchmarking

Just-in-time

Tools of TQMYields: How to do what is important and to be

accomplished


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Employment Fulfillment

Empowerment

Organizational commitment

Yields: Employees attitudes that they can

accomplish what is important and to be

accomplished


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Customer Satisfaction

Winning orders

Repeat customers

Yields: An effective organization with a

competitive advantage


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Operation

Reliability & durability

Conformance

Serviceability

Appearance

Perceived quality

Quality

Dimensions of Quality for Goods


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Under-standing

Tangibles

Reliability

CommunicationCredibility

Security

Responsiveness

Competence

Courtesy

Access

1995 Corel Corp.

Service Quality Attributes


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Importance of Quality

Costs & marketshare

Companys

reputation

Productliability

Internationalimplications

Increased

Profits

Lower CostsProductivity

Rework/Scrap

Warranty

Market Gains

Reputation

VolumePrice

Improved

Quality

M l B ld i N ti l Q lit


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Established in 1988 by the U.S. government

Designed to promote TQM practices

Some criteria Senior executive leadership; strategic planning;

management. of process quality

Quality results; customer satisfaction

Recent winners

Corning Inc.; GTE; AT&T; Eastman Chemical.

Malcom Baldrige National QualityAward


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Costs of Quality

Prevention costs - reducing the potential fordefects

Appraisal costs - evaluating products

Internal failure - of producing defective parts orservice

External costs - occur after delivery


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Costs of poor quality are huge, but the

amounts are not known with precision. In

most companies, the accounting systemprovides only a minority of the information

needed to quantify this cost of poor quality

Juran on Quality by Design, The Free Press (1992),p. 119

EC E i t l St d d


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EC Environmental StandardISO 14000

Core Elements:

Environmental management

Auditing

Performance evaluation

Labeling

Life-cycle assessment


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International Quality Standards

Industrial Standard Z8101-1981 (Japan) Specification for TQM

ISO 9000 series (Europe/EC)

Common quality standards for products sold in Europe(even if made in U.S.)

ISO 14000 series (Europe/EC)

Standards for recycling, labeling etc.ASQC Q90 series; MILSTD (U.S.)

T diti l


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TraditionalQuality Process (Manufacturing)

Specifies

Need

Customer

Interprets

Need

Marketing

Designs

Product

Defines

Quality

Engineering

Produces

Product

Plans

Quality

Monitors

Quality

Operations


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TQM

Encompasses entire organization, from supplier tocustomer

Stresses a commitment by management to have acontinuing, company-wide, drive toward

excellence in all aspects of products and services

that are important to the customer.

Achieving


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Organizational

Practices

Quality

Principles

EmployeeFulfillment

Attitudes(e.g., Commitment)

How to Do

What to Do

Effective

Business

Customer

Satisfaction

Achieving

Total Quality Management


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Demings Fourteen Points

Create consistency of purpose

Lead to promote change

Build quality into the products

Build long term relationships

Continuously improve product, quality, andservice

Start training

Emphasize leadership


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Demings Points - continued

Drive out fear

Break down barriers between departments

Stop haranguing workers

Support, help, improve

Remove barriers to pride in work

Institute a vigorous program of education and self-improvement

Put everybody in the company to work on thetransformation


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Concepts of TQM

Continuous improvement

Employee empowerment

Benchmarking

Just-in-time (JIT)

Taguchi concepts

Knowledge of TQM tools


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Continuous Improvement

Represents continual improvement of process &customer satisfaction

Involves all operations& work units

Other names

Kaizen (Japanese)

Zero-defects

Six sigma

1984-1994 T/Maker Co.


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Shewharts PDCA Model

4.Act 1.Plan

3.Check 2.Do

Identify the

improvement andmake a plan

Test the planIs the plan

working

Implement

the plan


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Employee Empowerment

Getting employees involved in product &process improvements

85% of quality problems are due to process &material

Techniques

Support workers

Let workers make decisions

Build teams & quality circles

1995 Corel Corp.


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Quality Circles

Group of 6-12 employees from same workarea

Meet regularly to solve work-related problems

4 hours/month

Facilitator trains & helps

with meetings

1995 Corel Corp.


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Benchmarking

Selecting best practices to useas a standard for performance

Determine what to benchmark Form a benchmark team

Identify benchmarking partners

Collect and analyze benchmarking information Take action to match or exceed the benchmark

Resolving Customer Complaints


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Resolving Customer Complaints

Best Practices

Make it easy for clients to complain

Respond quickly to complaints

Resolve complaints on the first contact

Use computers to manage complaints

Recruit the best for customer service jobs

J i Ti (JIT)


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Just-in-Time (JIT)

Relationship to quality:

JIT cuts cost of quality

JIT improves quality Better quality means less inventory and better,

easier-to-employ JIT system

J t i Ti (JIT)


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Just-in-Time (JIT)

Pull system of production/purchasing

Customer starts production with an order

Involves vendor partnership programs to

improve quality of purchased items

Reduces all inventory levels

Inventory hides process & material problems

Improves process & product quality

J t I Ti (JIT) E l


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Just-In-Time (JIT) Example

Scrap

Work in process inventory level

(hides problems)

Unreliable

Vendors

Capacity

Imbalances

J t I Ti (JIT) E l


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Just-In-Time (JIT) Example

Scrap

Reducing inventory reveals

problems so they can be solved.

Unreliable

Vendors

Capacity

Imbalances

T l f TQM


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Tools for TQM

Quality Function Deployment House of Quality

Taguchi technique

Quality loss function

Pareto charts

Process charts

Cause-and-effect diagramsStatistical process control

Quality Function Deployment


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Q y p y(QFD)

Determines what will satisfy the customer

Translates those customer desires into the target

design

Taguchi Techniques


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Taguchi Techniques

Experimental design methods to improve product& process design

Identify key component & process variables affecting

product variation Taguchi Concepts

Quality robustness

Quality loss function

Target specifications

Quality Robustness


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Ability to produceproducts uniformlyregardless ofmanufacturing conditions

Put robustness in Houseof Quality matrices

besides functionality

1984-1994 T/Maker Co.

1995 Corel Corp.

Quality Robustness

Quality Loss Function


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Shows social cost ($) of deviation from target value

Assumptions

Most measurable quality characteristics (e.g., length, weight)have a target value

Deviations from target value are undesirable

Equation: L = D2C

L = Loss ($); D = Deviation; C = Cost




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y

F

requency

Target Upper Lower

Target-oriented quality

yields more product in

the "best" category

Distribution of Specifications for Products Produced

Conformance-oriented

quality keeps productswithin 3 standard

deviations

Loss

High Loss

Low Loss

Unacceptable

Poor

Fair

Good

Best

Quality Loss Function Example


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The specifications for thediameter of a gear are 25.00 0.25 mm.If the diameter is out ofspecification, the gear mustbe scrapped at a cost of

$4.00. What is the lossfunction?

1984-1994 T/Maker Co.

Quality Loss Function Example

Quality Loss Function Solution


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L = D2C = (X - Target)2C

L = Loss ($); D = Deviation; C = Cost

4.00 = (25.25 - 25.00)2C Item scrapped if greater than 25.25

(USL = 25.00 + 0.25) with a cost of $4.00

C = 4.00 / (25.25 - 25.00)2 = 64L = D2 64 = (X - 25.00)264

Enter various X values to obtain L & plot

Quality Loss Function Solution

Target Specification Example


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Freq.

XTarget USLLSL

A study found U.S. consumers preferred Sony TVsmade in Japan to those made in the U.S. Both factoriesused the same designs & specifications. The differencein quality goals made the difference in consumerpreferences.

Japanese factory(Target-oriented)

U.S. factory(Conformance-oriented)

Target Specification Example

Quality Loss Function; Distribution of


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Qua ty oss u ct o ; st but o o

Products Produced

Low loss

High loss

Frequency

Lower Target UpperSpecification

Loss (toproducingorganization,customer, and

society)

Quality Loss Function (a)Unacceptable

Poor

Fair

GoodBest

Target-orientedquality yields moreproduct in thebest category

Target-oriented qualitybrings products towardthe target value

Conformance-orientedquality keeps productwithin three standarddeviations

Distribution of

specifications for product

produced (b)

PDCA Cycle


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y

4.Act:

Implement theplan

1.Plan:

Identify theimprovement andmake a plan

3.Check:

Is the planworking

2.Do:

Test the plan

Tools of TQM


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Tools of TQM

Tools for generating ideas Check sheet

Scatter diagram

Cause and effect diagram

Tools to organize data Pareto charts

Process charts (Flow diagrams)

Tools for identifying problems Histograms Statistical process control chart

Pareto Analysis of Wine GlassD f t (T t l D f t 75)


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Defects (Total Defects = 75)

54

125 4 2

72%

88% 93% 97% 100%

0

10

20

30

40

50

60

70

Scratches Porosity Nicks Contamination Misc.

Causes, by percent total defects

Frequency

(Number)

0%

20%

40%

60%

80%

100%

Cumulativ

ePercent

72% 16% 5% 4% 3%

Process Chart


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Shows sequence of events in process

Depicts activity relationships

Has many uses Identify data collection points

Find problem sources

Identify places for improvement

Identify where travel distances can be reduced

Process Chart

Cause and Effect Diagram


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Used to find problem sources/solutionsOther names

Fish-bone diagram, Ishikawa diagram

Steps Identify problem to correct

Draw main causes for problem as bones

Ask What could have caused problems in these areas?Repeat for each sub-area.


Cause and Effect DiagramExample


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Too manydefects

Problem

Example



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Method Manpower

Material Machinery

Too manydefects

Main Cause

Main Cause

Example



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Method Manpower

Material Machinery

DrillOvertime

Steel

Wood

Lathe

Too manydefects

Sub-Cause

Example


E l


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Method Manpower

Material Machinery

DrillOvertime

Steel

Wood

Lathe

Too manydefects

Tired

Old

Slow

Example

Fishbone Chart - Problems withAirline Customer Service


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Airline Customer Service

Statistical Process Control (SPC)


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Uses statistics & control charts to tell when to adjustprocess

Developed by Shewhart in 1920s

Involves Creating standards (upper & lower limits)

Measuring sample output (e.g. mean wgt.)

Taking corrective action (if necessary)

Done while product is being produced

( )

Statistical Process Control Steps


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Produce GoodProvide Service

Stop Process

Yes

No

Assign.

Causes?Take Sample

Inspect Sample

Find Out WhyCreate

Control Chart

Start

p

Process Control Chart


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Plot of Sample Data Over Time

0

20

40

60

80

1 5 9 13 17 21

Time

SampleV

alue Sample

Value

UCL

Average

LCL

Control Chart


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Patterns to Look for inControl Charts


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Control Charts

Inspection


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Involves examining items to see if an item isgood or defective

Detect a defective product Does not correct deficiencies in process or product

Issues

When to inspect Where in process to inspect

When and Where to Inspect


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At the suppliers plant while the supplier is producing

At your facility upon receipt of goods from the supplier

Before costly or irreversible processes

During the step-by-step production processes

When production or service is complete

Before delivery from your facility

At the point of customer contact

Inspection Points in Services


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Organization What isInspected Standard

Jones

Law Office

Receptionist

performance

Billing

Attorney

Is phone answered

by the second ring

Accurate, timely,and correct format

Promptness inreturning calls



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Hard Rock

Hotel

Reception desk

Doorman

Room

Minibar

Use customers name

Greet guest in lessthan 30 seconds

All lights working,spotless bathroom

Restocked andcharges accuratelyposted to bill



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Bayfield

CommunityHospital

Billing

Pharmacy

Lab

Nurses

Admissions

Accurate, timely, and correctformat

Prescription accuracy,inventory accuracy

Audit for lab-test accuracy

Charts immediately updated

Data entered correctly andcompletely



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Hard

RockCafe

Busboy

Busboy

Waiter

Serves water and

bread within 1 minuteClears all entre itemsand crumbs prior todesert

Knows and suggestspecials and desserts



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Nordstroms

DepartmentStore

Display areas

Stockrooms

Salesclerks

Attractive, well-organized, stocked, goodlighting

Rotation of goods,organized, clean

Neat, courteous, veryknowledgeable



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BankTeller

stations

Loan

accounts

Checking

accounts

Shortages, courtesy,

speed, accuracy

Collateral, proper credit checks,

rates, terms of loans, default

rates, loan rates

Accuracy, speed of entry,

rate of overdraws

Organization Some Pointsof Inspection Issues to Consider



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Retail storeStockrooms

Display areas

Sales counters

Clean, uncluttered, organized,

level of stockouts, amply supply,

rotation of goods

Attractive, well-organized, stocked,

visible goods, good lighting

Neat, courteous knowledgeable

personnel; waiting time; accuracy

in credit checking and sales entry

Organization Some Pointsof Inspection Issues to Consider



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Restaurant

Kitchen

Cashier station

Dining areas

Clean, proper storage,

unadulterated food, health

regulations observed, well-organized

Speed, accuracy, appearance

Clean, comfortable, regularmonitoring by personnel,

Organization Some Pointsof Inspection

Issues to Consider

TQM In Services


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Service quality is more difficult to measure than forgoods

Service quality perceptions depend on

Expectations versus reality

Process and outcome

Types of service quality

Normal: Routine service delivery

Exceptional: How problems are handled

Goods versus Services


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Can be resold

Can be inventoried

Some aspects ofquality measurable

Selling is distinct fromproduction

Reselling unusual

Difficult to inventory

Quality difficult tomeasure

Selling is part of

service

Good Service

Goods versus Services -continued


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Product is transportableSite of facility important

for cost

Often easy to automateRevenue generated

primarily from tangibleproduct

Provider, not product istransportable

Site of facility important

for customer contactOften difficult to

automateRevenue generated

primarily from intangibleservice.

Good Service

Service Quality Attributes


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Under-standing

Tangibles

Reliability

CommunicationCredibility

Security

Responsiveness

Competence

Courtesy

Access

1995 Corel Corp.

Determinants of Service Quality


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Reliability consistency and dependability

Responsiveness willingness/readiness ofemployees to provide service; timeliness

Competence possession of skills andknowledge required to perform service

Access approachability and ease of contact

Courtesy politeness, respect, consideration,friendliness of contact personnel

Determinants of Service Quality -Continued


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Communication keeping customers informed inlanguages they understand

Credibility trustworthiness, believability, honestySecurity freedom from danger, risk or doubt

Understanding/knowing the customer making

the effort to understands the customers needsTangibles the physical evidence of the service

quality slides(minggu4)

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