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Management
of Quality
McGraw-Hill/Irwin
Learning Objectives
9-2
Learning Objectives
9-3
Quality Management
What does the term quality mean?
Quality is the ability of a product or service to
consistently meet or exceed customer
expectations.
KOKO NAKULO DJATIKUSUMO SE., MSi
koko.phd.prog@gmail.com
085692931010
081805198080
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Strategic Approach
Proactive, focusing on preventing mistakes
from occurring
Greater emphasis on customer satisfaction
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W. Edwards Deming
Joseph M. Juran
Armand Feignbaum
Philip B. Crosby
Kaoru Ishikawa
Genichi Taguchi
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Table 9.2
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Dimensions of Quality
Performance - main characteristics of the
product/service
Aesthetics - appearance, feel, smell, taste
Special Features - extra characteristics
Conformance - how well product/service
conforms to customers expectations
Reliability - consistency of performance
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(Product)
Automobile
(Service)
Auto Repair
1. Performance
2. Aesthetics
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(Service)
Auto Repair
5. Reliability
Infrequency of breakdowns
6. Durability
7. Perceived
quality
Top-rated car
Award-winning service
department
Service Quality
Convenience
Reliability
Responsiveness
Time
Assurance
Courtesy
Tangibles
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Dimension
Examples
1. Convenience
2. Reliability
3. Responsiveness
4. Time
5. Assurance
6. Courtesy
7. Tangibles
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Determinants of Quality
Design
Ease of
use
Conforms
to design
Service
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Quality of conformance
The degree to which goods or services
conform to the intent of the designers
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Loss of business
Liability
Productivity
Costs
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Top management
Design
Procurement
Production/operations
Quality assurance
Packaging and shipping
Marketing and sales
Customer service
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Costs of Quality
Failure Costs - costs incurred by defective
parts/products or faulty services.
Internal Failure Costs
Prevention Costs
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Defective products
Substandard service
Poor designs
Shoddy workmanship
Substandard parts and materials
Having knowledge of this and failing to correct
and report it in a timely manner is unethical.
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Quality Awards
Baldrige Award
Deming Prize
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Leadership
Customer focus
Corporate social responsibility
People development and involvement
Results orientation
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Quality Certification
ISO 9000
Set of international standards on quality
management and quality assurance, critical to
international business
ISO 14000
A set of international standards for
assessing a companys environmental
performance
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Customer focus
Leadership
People involvement
Process approach
A systems approach to management
Continual improvement
Factual approach to decision making
Mutually beneficial supplier relationships
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ISO 14000
ISO 14000 - A set of international
standards for assessing a companys
environmental performance
Standards in three major areas
Management systems
Operations
Environmental systems
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ISO 14000
Management systems
Systems development and integration of
environmental responsibilities into business
planning
Operations
Consumption of natural resources and
energy
Environmental systems
Measuring, assessing and managing
emissions, effluents, and other waste
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Elements of TQM
1. Continual improvement
2. Competitive benchmarking
3. Employee empowerment
4. Team approach
5. Decisions based on facts
6. Knowledge of tools
7. Supplier quality
8. Champion
9. Quality at the source
10. Suppliers
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Continuous Improvement
Philosophy that seeks to make neverending improvements to the process of
converting inputs into outputs.
Kaizen: Japanese
word for continuous
improvement.
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Six Sigma
Statistically
Having no more than 3.4 defects per million
Conceptually
Program designed to reduce defects
Requires the use of certain tools and
techniques
Six sigma: A business process for improving
quality, reducing costs, and increasing
customer satisfaction.
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Employed in
Design
Production
Service
Inventory management
Delivery
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Top management
Program champions
Master black belts
Black belts
Green belts
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Define
Measure
Analyze
Improve
Control
DMAIC
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Criticisms of TQM
1. Blind pursuit of TQM programs
2. Programs may not be linked to strategies
3. Quality-related decisions may not be tied
to market performance
4. Failure to carefully plan a program
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Figure 9.2
Act
Do
Study
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Select a
process
Document
Study/document
Evaluate
Seek ways to
Improve it
Implement the
Improved process
Design an
Improved process
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Process Improvement
Process Improvement: A systematic
approach to improving a process
Process mapping
Analyze the process
Redesign the process
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Tools
There are a number of tools that can be used for problem solving and
process improvement
Tools aid in data collection and interpretation, and provide the basis for
decision making
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Check Sheet
Billing Errors
Monday
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
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80%
80%of
of the
the
problems
problems
may
may be
be
attributed
attributed to
to
20%
20%of
of the
the
causes.
causes.
Number of defects
Pareto Analysis
Off
Smeared Missing Loose Other
center print
label
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Figure 9.11
1020
1010
Control Chart
UCL
1000
990
980
LCL
970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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Cause-and-Effect Diagram
Figure 9.12
Methods
Cause
Environment
Materials
Cause
Cause
Cause
Cause
Cause
Cause
People
Cause
Cause
Cause
Cause
Effect
Cause
Equipment
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Diameter
Run Chart
0.58
0.56
0.54
0.52
0.5
0.48
0.46
0.44
1
10 11 12
Time (Hours)
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Tracking Improvements
Figure 9-18
UCL
UCL
LCL
LCL
Process centered
Process not centered and stable
and not stable
UCL
LCL
Additional improvements
made to the process
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Quality Circles
Team approach
List reduction
Balance sheet
Paired comparisons
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Benchmarking Process
Identify a critical process that needs
improving
Identify an organization that excels in
this process
Contact that organization
Analyze the data
Improve the critical process
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