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Managing Quality

Managing Quality. 12 July 2001. Introduction. What: quality in operations management Where: Quality affects all goods and services Why: Customers demand quality. What is Quality. High quality products Low quality products What does quality mean to you?. American Society for Quality.

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Managing Quality

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  1. Managing Quality 12 July 2001

  2. Introduction • What: quality in operations management • Where: Quality affects all goods and services • Why: Customers demand quality

  3. What is Quality • High quality products • Low quality products • What does quality mean to you?

  4. American Society for Quality • “The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs”

  5. User-Based Definition • “Quality lies in the eye of the beholder” • Higher quality = better performance • Higher quality = nicer features

  6. Manufacturing-Based Definition • Quality = conforming to standards • “Making it right the first time”

  7. Product-Based Definition • Quality = a measurable variable

  8. Our Definition • Quality: The ability of a product or service to meet customer needs

  9. Implications of Quality • Company Reputation • Product Liability • Global Implications

  10. Global Implications • National Quality Awards: • US: Malcolm Baldridge National Quality Award • Japan: Deming Prize • Canada: National Quality Institute Canada Awards for Excellence

  11. Canada Award Winners 2000 • Aeronautical and Technical Services • British Columbia Transplant Society • Delta Hotels • Honeywell Water Controls Business Unit

  12. Quality and Strategy • Differentiation • Cost Leader • Response

  13. Quality and Profitability • Sales Gains • Improved Response • Higher Prices • Improved Reputation Improved Quality Increased Profits • Reduced Costs • Increased Productivity • Lower Rework, Scrap • Lower Warranty Costs

  14. Costs of Quality • Prevention Costs • Appraisal Costs • Internal Failure • External Costs

  15. International Standards • ISO 9000 • Establish quality management procedures • Documented processes • Work Instructions • Record Keeping • Does NOT tell you how to make a product!

  16. Total Quality Management • TQM – Total Quality Management • Quality emphasis throughout an organization • From suppliers through to customers

  17. W. Edwards Deming

  18. Deming’s 14 Points • Create consistency of purpose • Lead to promote change • Build quality into the product, stop depending on inspections to catch problems • Build long-term relationships based on performance instead of awarding business on the basis of price • Continuously improve product, quality and service • Start training

  19. Deming’s 14 Points • Emphasize leadership • Drive out fear • Break down barriers between departments • Stop haranguing workers • Support, help and improve • Remove barriers to pride in work • Institute a vigorous program of education and self-improvement • Put everybody in the company to work on transformation

  20. TQM Concepts • Continuous Improvement • Employee Empowerment • Benchmarking • Just-In-Time • Taguchi • Knowledge of Tools

  21. Continuous Improvement Act Plan Check Do

  22. Continuous Improvement • Kaizen • Zero Defects • Six Sigma

  23. Employee Empowerment • Involve employees in every step of production • High involvement by those who understand the shortcomings of the system • Quality circle

  24. Benchmarking • Pick a standard or target to work towards • Compare your performance • Best practices in the industry

  25. Just-In-Time • Produce or deliver goods just when they are needed • Low inventory on hand • Keeps evidence of errors fresh

  26. Taguchi Concepts • Quality robustness • Quality Loss Function • Target-oriented Quality

  27. TQM Tools • Check Sheet • Scatter Diagram • Cause and effect diagram (fishbone) • Pareto Chart – 80-20 Rule • Flow Charts • Histogram • Statistical Process Control

  28. Inspection • Attribute Inspection • Variable Inspection

  29. Inspection • At supplier’s plant • Upon receipt of goods from supplier • Before costly processes • During production • When production complete • Before delivery • At point of customer contact

  30. Source Inspection • Employees self-check their work • Poka-yoke 

  31. Statistical Process Control • Apply statistical techniques to ensure processes meet standards • Natural variations • Assignable variations • Goal: signal when assignable causes of a variation are present

  32. Statistics • Mean • Standard deviation • Natural variation • Assignable variation

  33. Control Charts • X Bar Chart • R Chart 

  34. In Control vs Out Of Control • In control and producing within control limits • In control, but not producing within control limits • Out of control

  35. Central Limit Theorem • Mean • Standard Deviation • 95.5% • 99.73% • Control Limits

  36. Using Control Charts • Mean changing – • Range changing

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