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D. Anthony Chevers
SBCO 6240 - Production and Operations Management
Lecture #2 - Quality
Definitions; Purpose & Profitability
Quality Inspection
Total Quality Management (TQM)
Continuous Improvement Tools
Process Capability & Statistical QC
• Process Capability; Process Capability Ratio
• Process Capability Index; Six-Sigma
International Standard Organization
Customer Care & Key Performance Indicators
Exercises/Case Analysis
Higher Price
Profits
Costs decreases
because of less Capture
rework, fewer the Provide
Improve mistakes, fewer Productivity market Stay in jobs and
Quality delays, fewer improves with business more
snags, better use better jobs
of machine time quality
and materials
Source: Reprinted from out of the Crisis by W. Edward Deming by permission of MIT and W. Edward Deming
Published MIT, Center for Advanced Engineering Study, Cambridge, Mass 02139, Copyright 1966 by W. Deming
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Control Charts & Control Charts &
Control Charts
Acceptance Tests Acceptance Tests
Quality of partially
Quality of Inputs Quality of Outputs
completed products
Origin – European
Certifications – ISO9000/1/2 & 14000
Purpose – All organizations must be ISO certified to
compete in the global marketplace.
Statement – ISO certification, a statement that you are
a quality organization with standard systems
through:
• Policies
• Procedures
• Instructions
• Records
Motto
• Say what you do
• Do what you say
• Prove it
• Improve it
Jamaican firms – Grace Kennedy, J.F.Mills, Cable &
Wireless, Alpart, Windalco, Jamalco, FedEx, Pegasus,
Sigma Unit Trust, Berger, Jamaica Boilers, JWN, etc
Benefits – Consistently produce quality products
through quality systems.
Normal
NormalBehavior
Behavior
Possible
Possibleproblem,
problem,investigate
investigate
LCL
1 2 3 4 5 6 Samples
over time
UCL
Possible
Possibleproblem,
problem,investigate
investigate
LCL
1 2 3 4 5 6 Samples
over time
Lecture 2 - Quality Management & Statistical Quality Control | 24
Control Limits:
Normal Curve
x
µ
z
-3 -2 -1 0 1 2 3
Standard
Standarddeviation
deviation
units
unitsor
or“z”
“z”units.
units.
B ig F o rd M
o f 2 5 cm .,
Lecture 2 - Quality Management & Statistical Quality Control | 32
Process Capability Index
-Cpk
In some cases, the process mean, µ, is
not exactly centered on the target value
In these cases, we use the process
capability index, Cpk, to determine
whether or not the process is capable of
meeting the tolerance limits 99.7% of the
time.
As
Asaaproduction
productionprocess
process
produces
producesitems
itemssmall
small
shifts
shiftsin
inequipment
equipmentoror
systems
systemscancancause
cause
differences
differencesininproduction
production
performance
performancefromfrom
differing
differingsamples.
samples.
Engineers at Milb
for a key dyeing
Target v
Cpk = min µ
Upper t
Lecture 2 - Quality Management & Statistical Quality Control | 35
Six-Sigma Quality
(UTL – LTL)/12σ
Lecture 2 - Quality Management & Statistical Quality Control | 36
Exercise – Six-Sigma
M ilb u rn T
Calcul
m e a n is
Lecture 2 - Quality Management & Statistical Quality Control | 37
Service Quality #1
Consistency
• Same level of service for all customers
Accessibility & Convenience
• Ease of obtaining service
Responsiveness
• Reactions to unusual situations
Others?
U.S. Distributor – “It is not our intention to satisfy our customers. Its our intention to amaze them”
[It is imperative
that the customer
is happy]
Lecture 2 - Quality Management & Statistical Quality Control | 42
Quality Standards – KPI’s
Organization
Jones Law Office
Lecture 2 - Quality Management & Statistical Quality Control | 43
Discussion Questions #1
• Different customers can perceive the value of the same
product or service very differently. Explain how this can
occur. What are the implications for developing successful
operations and supply chain strategies?
Given: µ
Lecture 2 - Quality Management & Statistical Quality Control | 46
Solution – Improvement
Manager
Upper Spec
Lower Spec
Lecture 2 - Quality Management & Statistical Quality Control | 47
Case Studies
D. Anthony Chevers
delroy.chevers@uwimona.edu.jm
DOMS, Room #28
49