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Production Operations Management

Production Operations Management. Quality Management U. Akinc. Quality Management. Quality is defined as “fitness” for intended use (Joseph Juran) Dimensions: Technological Psychological Time Oriented Contractual Ethical. Six Sigma.

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Production Operations Management

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  1. Production Operations Management Quality Management U. Akinc Bus 241

  2. Quality Management Quality is defined as “fitness” for intended use (Joseph Juran) Dimensions: Technological Psychological Time Oriented Contractual Ethical Bus 241

  3. Six Sigma The Six Sigma's Breakthrough Strategy is a disciplined method of using extremely rigorous data-gathering and statistical analysis to pinpoint sources of errors and ways of eliminating them See Six Sigma and General Electric Bus 241

  4. TQM Total Quality Management: The management of quality throughout the organization.. at all levels and across all functions TQM is both a comprehensive management philosophy and a collection of tools and approaches for its implementation… Bus 241

  5. TQM Principles • Customer Defines Quality • Top management’s leadership is essential • Quality is a strategic issue • Quality is responsibility of all employees • All functions must focus on cont. impr. • Quality problems are solved via cooperation • Use of statistical and other tools • Training and education is critical Bus 241

  6. Specific TQM Approaches • Continuous Improvement (Kaizen) Piecemeal improvement of existing processes Important components: • Process Selection • Process Study • Training, Empowerment • Leadership • Quality circles is a common way of implementation What to focus on? What tasks, sub-processes? In tools and methods of improvement Encouragement, reward system Bus 241

  7. Specific TQM Approaches • Business processes re-engineering Fundamental rethinking and redesign of business processes that deliver quality. • Focus on outcome not on existing tasks • Understand the current process • Remove complexity • Innovation is central • Benchmarking Think critically about the process Quantum leap Learn from others Bus 241

  8. Edwards Deming’s Chain Reaction • Improve Quality • Cost Decreases • Productivity Improves • Increase or maintain market share • Stay in Business • Provide jobs and more jobs Bus 241

  9. Deming’s 14 Points • 1. Management Commitment • 2. Learn the New Philosophy • 3. Understand Inspection • 4. End Price Tag Decisions • 5. Improve Constantly • 6. Institute Training • 7. Institute Leadership Be Credible Everybody Price is not the sole criterion Bus 241

  10. Deming’s 14 Points (Cont’d) • 8. Drive Out Fear • 9. Optimize Team Efforts • 10. Eliminate Exhortations • 11. Eliminate Quotas (MBO) • 12. Remove Barriers to Pride in Workmanship • 13. Institute Education • 14. Take Action Create trust, a climate for innovation Not Targets but direction For everyone Bus 241

  11. Management of Quality • Quality of Design:Resolution of the many trade offs among dimensions of quality • Quality of Conformance:Degree to which design specs are met • Time Oriented Dimensions • Availability • Reliability • Maintainability • Field Service:Repair, Replacement, Service Bus 241

  12. Quality Management model Bus 241

  13. A Quality management Paradigm • Define Quality Attributes • Develop Measuring Scales • Set Quality Standards • Establish an Inspection Plan • Monitor, Discover and Correct Causes of Poor Quality Bus 241

  14. Quality Policy • Design Quality Perceived Value and Cost Level of Quality Bus 241

  15. Quality Policy (Juran) • Conformance Quality • Costs: • Avoidable • Unavoidable 0% 100% Level of Conformance Bus 241

  16. Quality Policy (Crosby) • Conformance Quality • Costs: • Avoidable • Unavoidable 0% 100% Level of Conformance Bus 241

  17. Quality Control Managing Quality of Conformance Quality Control System • A. Inspection points • Receiving Inspection • Process Control • Final Inspection Bus 241

  18. Quality Control (cont’d) • B. Type of Measurements • Measurement by Attributes • Measurement by Variables • C. Amount of Inspection • 100% Inspection • Sampling inspection • D. Agent of Inspection • QC Department • Operator Bus 241

  19. Quality Control StatisticalQuality Control Process Control Acceptance Sampling Attributes Variables Variables Attributes Bus 241

  20. Statistical Process Control (SPC) • Assignable Causes of Variation • Un-assignable Causes of Variation A process is considered in control when it only exhibits variation due to un-assignable causes. When the variation exceeds pre-established limits, suspicion arises that there is an assignable (correctable) cause and hence the process is deemed out of control. Bus 241

  21. Control Charts • X-Bar Charts – Controlling the Central value • R Charts– Controlling the spread of the values • P- Charts – Controlling the proportion defective • C- Charts – Controlling the number of defects x x UCL x x x x Mean x x x x x LCL Bus 241

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