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Lecture Outline

Topics

09 - 10| Quality Management

Nature of quality Total quality management Fundamental quality tools

Learning objectives

IM 203 Production and operations management


Assistant Professor Dr. Karndee Leopairote Department of Industrial and Operations Management Thammasat Business School im.karndee@gmail.com
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To understand the importance and strategic role of quality management To be able to apply the statistical tool in quality improvement and analysis

Reference
Roberta Russell & Bernard W. Taylor, (2009), Operations Management along the supply chain (CHAPTER 2) Ed 6, John Wiley &Son

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Some say
Good is not good where the better is expected

What is Quality?

Which one has a higher quality?


No problem is a problem

When I hear, I forget. When I see, I remember. When I do, I understand

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4 Source: Russell and TaylorIII (2005)

Meaning of Quality: Consumers Perspective


Fitness for use

Meaning of Quality
Meaning of Quality

how well product or service does what it is supposed to designing quality characteristics into a product or service

Producers Perspective

Consumers Perspective

Quality of design
Quality of Conformance Production Conformance to specifications Cost Quality of Design Quality characteristics Price Marketing

A Mercedes and a Ford are equally fit for use, but with different design dimensions

Fitness for Consumer Use


6 5 Source: Russell and TaylorIII (2005)
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Quality Measure in Manufacturing Industry


Characteristics of products Examples:
Products Metal ring Box of cereal Bag of MaMa Body lotion Cosmetic Quality Characteristics Diameter; thickness Weight Weight Viscosity; color Color

Quality Measure in service industry


Nature of defect is different in
services Service defect is a failure to meet customer requirements Example of Quality Measure

Average waiting time or service time, Average queue length customer satisfaction quickest, friendliest, most On time delivery accurate service Cleanliness available.

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Dimensions for Quality Manufactured Products


Performance Features Reliability Conformance Durability Serviceability
basic operating characteristics of a product; how well a car is handled or its gas mileage extra items added to basic features, such as a stereo CD or a leather interior in a car probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years

Dimensions for Quality Services


Time and timeliness Completeness: Courtesy:
how long must a customer wait for service, and is it completed on time? is an overnight package delivered overnight? is everything customer asked for provided? is a mail order from a catalogue company complete when delivered? how are customers treated by employees? are catalogue phone operators nice and are their voices pleasant? is same level of service provided to each customer each time? is your newspaper delivered on time every morning? how easy is it to obtain service?

degree to which a product meets preestablished standards

how long product lasts before replacement? ease of getting repairs, speed of repairs, courtesy and competence of repair person how a product looks, feels, sounds, smells, or tastes? assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles subjective perceptions based on brand name, advertising, and like
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Consistency

Accessibility and convenience


Accuracy Responsiveness

does service representative answer you calls quickly? is service performed right every time?
is your bank or credit card statement correct every month? how well does company react to unusual situations? how well is a telephone operator at able to respond to a customers questions?
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Aesthetics
Safety Perceptions
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Total Quality Management (TQM)


Philosophy that emphasizes on 3 principles for achieving high level of quality 1. Customer Satisfaction 2. Employee involvement 3. Continuous improvement

ProblemSolving Process
Deming Wheel (PDCA)

Plan

Customer satisfaction

-Conformance to specification - value - fitness for use - support - impression - Kaizen - keep improving - always have some room for improvement
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Act

Do

Team and cultural changes

Check
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PLAN DO CHECK ACT

WORKSHOP CASE TQM at State University

Plan
Team selects a process Assess existing performance use graphical tools Write out improvement plan and goal

Do
Implement plan and monitor the plan Collect data & document data

Check
Analyze collected data: use SPC (Statistical process control) Check against the goal that proposed in Plan

Act
If results are satisfied, implement the process and look for other improvement area If not, plan out the new improvement plan ACT becomes STANDARDIZED

Having to do more, better, with less


Fred Mcmahan
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Common Concerns . . .
Reading
Root Cause Analysis at GM

How can we speed up the process?

How can we get cost down?

How can we eliminate waste?

How can we reduce our customers waiting time?

How can we deliver our service faster?

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Problem Solving Tools & Techniques


Process Analysis / Flow Chart Check sheet Run chart Pareto chart

Process Analysis / Flow Chart


Provide big picture of how process works

Scatter Diagram Fishbone chart (cause-and-effect diagram)

Example of Flowchart of the Sales Process for a Consulting Company

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Check Sheet
COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits Capacitors Resistors Transformers Commands CRT
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Run Chart
24 Show how variable / interested response has as changed over time

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Number of defects

18 15 12 9 6 3 8 10 12 14 16 18 20 22
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Working Hours

Control Chart
Identify unusual or out of control process with consideration of process variation 24

Pareto Chart at
UCL = 23.35 c = 12.67 Percent from each cause

70
60

(64)

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Number of defects

18 15 12 9 6 3 2

Bar chart that shows majority of problems with minority causes

50 40 30 20 (13) 10 0

(10)
(6) (3) (2) (2)

LCL = 1.99

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12

14

16
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Sample number

Causes of poor quality

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Scatter Diagram
Show correlation and relationship of two variables

Fishbone / Cause-and-Effect Diagram

Measurement
Faulty testing equipment Incorrect specifications Improper methods

Human
Poor supervision Lack of concentration Inadequate training

Machines
Out of adjustment Tooling problems Old / worn

Inaccurate temperature control

Quality Problem
Defective from vendor Not to specifications Poor process design Ineffective quality management Deficiencies in product design

Dust and Dirt

Materialhandling problems

X
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Environment

Materials

Process

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