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OPERATING AND CONTROLLING THE SYSTEM

PART FOUR. OPERATING AND CONTROLLING THE SYSTEM. Chapter Nine Introduction to Quality Chapter Ten Quality Control Chapter Eleven TQM and Continuous Improvement Chapter Twelve Aggregate Planning Chapter Thirteen Inventory Management. Chapter 9. Introduction to Quality.

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OPERATING AND CONTROLLING THE SYSTEM

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  1. PART FOUR OPERATING AND CONTROLLING THE SYSTEM • Chapter Nine • Introduction to Quality • Chapter Ten • Quality Control • Chapter Eleven • TQM and Continuous Improvement • Chapter Twelve • Aggregate Planning • Chapter Thirteen • Inventory Management MTSU Management 362

  2. Chapter 9 Introduction to Quality

  3. Different Ways to Define Quality • User-based quality • Operations-based quality • Product-based quality MTSU Management 362

  4. Dimensions of Quality (1 of 2) • Performance • Aesthetics • Special features • ConformanceSafety • Reliability MTSU Management 362

  5. Dimensions of Quality (2 of 2) • Durability • Perceived Quality • Service after sale MTSU Management 362

  6. Table 9-1 Examples of Quality Dimensions (1 of 2) MTSU Management 362

  7. Table 9-1 Examples of Quality Dimensions (2 of 2) MTSU Management 362

  8. Determinants of Quality Ease of use Design Conformance to design Service MTSU Management 362

  9. Why Quality is Important to the Firm? • Reduced costs and increased market share • Improved company reputation • Reduced chances of product liability suits • International implications MTSU Management 362

  10. The Consequences of Poor Quality • Loss of business • Liability • Productivity • Costs MTSU Management 362

  11. Costs of Quality (1 of 2) • Failure Costs - costs incurred by defective parts/products or faulty services. • Internal Failure Costs • Costs incurred to fix problems that are detected before the product/service is delivered to the customer. • External Failure Costs • All costs incurred to fix problems that are detected after the product/service is delivered to the customer. MTSU Management 362

  12. Costs of Quality (2 of 2) • Appraisal Costs • All product and/or service quality inspection costs. • Prevention Costs • All quality training, quality planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring MTSU Management 362

  13. Table 9-6 Key Contributors to Quality Management MTSU Management 362

  14. Quality Awards Baldrige Award Deming Prize MTSU Management 362

  15. Malcolm Baldrige National Quality Award • Began in 1987 • Recognizes achievements of excellent firms and provide examples to others • may give two awards in each category • manufacturing • small business • service • Establishes criteria for evaluating quality efforts • Provides guidance for other American companies MTSU Management 362

  16. 1999 MBNQA Categories and Scoring System 1.0 Leadership 125 2.0 Strategic Planning 85 3.0 Customer and Market Focus 85 4.0 Information and Analysis 85 5.0 Human Resource Focus 85 6.0 Process Management 85 7.0 Business Results 450 8.0 Global Market Development and Competitiveness (optional) 100 MTSU Management 362

  17. Deming Prize • Instituted 1951 by Union of Japanese Scientists and Engineers (JUSE) honoring W. Edwards Deming • Several categories including prizes for individuals, factories, small companies, and Deming application prize • Japan’s highly coveted award • Main focus on statistical quality control • American company winners MTSU Management 362

  18. Quality Certification - ISO 9000 • Set of international standards on quality management and quality assurance, critical to international business • ISO 9000 series standards, briefly, require firms to document their quality-control systems at every step (incoming raw materials, product design, in-process monitoring and so forth) so that they’ll be able to identify those areas that are causing quality problems and correct them MTSU Management 362

  19. ISO 9000 Registration Process (1 of 3) • When an organization feels that its quality system is good enough, it may ask an accredited registrar or other third party audit team for pre-assessment • Feedback is provided regarding how well the company’s systems meet certification standards • The company makes adjustments based on this information MTSU Management 362

  20. ISO 9000 Registration Process (2 of 3) • The final audit begins with a review of the company's quality manual, which the accredited registrar or third party audit team typically uses as its guide • The audit team checks to see that the documented quality system meets the requirement of ISO 9000 and that the organization is practicing what is documented MTSU Management 362

  21. ISO 9000 Registration Process (3 of 3) • When the registrar is satisfied with the favorable recommendation of the audit team, registration is granted • This certification lasts three years during which the registrar periodically monitors the company MTSU Management 362

  22. Table 9-8 ISO 9000 Series MTSU Management 362

  23. ISO 14000 • ISO 14000 - A set of international standards for assessing a company’s environmental performance • Standards in three major areas • Management systems • Operations • Environmental systems MTSU Management 362

  24. 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 MTSU Management 362

  25. QUALITY

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