Management of Quality
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Write My Essay For MeChapter 9
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
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Quality Management
1
You should be able to:
LO 9.1 Discuss the philosophies of quality gurus
LO 9.2 Define the term quality as it relates to products and as it relates to services
LO 9.3 Identify the determinants of quality
LO 9.4 Explain why quality is important and the consequences of poor quality
LO 9.5 Distinguish the costs associated with quality
LO 9.6 Discuss the importance of ethics in managing quality
LO 9.7 Compare the quality awards
LO 9.8 Discuss quality certification and its importance
LO 9.9 Describe TQM
LO 9.10 Give an overview of problem solving
LO 9.11 Give an overview of process improvement
LO 9.12 Describe the six sigma methodology
LO 9.13 Describe and use various quality tools
Chapter 9: Learning Objectives
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Quality Management
Quality
The ability of a product or service to consistently meet or exceed customer expectations
For a decade or so, quality was an important focal point in business. After a while, this emphasis began to fade as other concerns took precedence
There has been a recent resurgence in attention to quality given recent experiences with the costs and adverse attention associated with highly visible quality failures:
Auto recalls
Toys
Produce
Dog food
Pharmaceuticals
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Walter Shewart
“father of statistical quality control”
Control charts
Variance reduction
W. Edwards Deming
Special vs. common cause variation
The 14 points
Joseph Juran
Quality Control Handbook, 1951
Viewed quality as fitness-for-use
Quality trilogy – quality planning, quality control, quality improvement
Quality Contributors
LO 9.1
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Armand Feigenbaum
Quality is a “total field”
The customer defines quality
Philip B. Crosby
Zero defects
Quality is Free, 1979
Kaoru Ishikawa
Cause-and-effect diagram
Quality circles
Recognized the internal customer
Quality Contributors (cont.)
LO 9.1
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Genichi Taguchi
Taguchi loss function
Taiichi Ohno and Shigeo Shingo
Developed philosophy and methods of kaizen
Quality Contributors (cont.)
LO 9.1
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Dimensions of Product Quality
Performance – main characteristics of the product
Aesthetics – appearance, feel, smell, taste
Special features – extra characteristics
Conformance – how well the product conforms to design specifications
Reliability – consistency of performance
Durability – the useful life of the product
Perceived quality – indirect evaluation of quality
Serviceability – handling of complaints or repairs
Consistency – quality doesn’t vary
LO 9.2
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Dimensions of Service Quality
Convenience – the availability and accessibility of the service
Reliability – ability to perform a service dependably, consistently, and accurately
Responsiveness – willingness to help customers in unusual situations and to deal with problems
Time – the speed with which the service is delivered
Assurance – knowledge exhibited by personnel and their ability to convey trust and confidence
Courtesy – the way customers are treated by employees
Tangibles – the physical appearance of facilities, equipment, personnel, and communication materials
Consistency – the ability to provide the same level of good quality repeatedly
Expectancy – meet (or exceed) customer expectations
LO 9.2
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Assessing Service Quality
Audit service to identify strengths and weaknesses
In particular, look for discrepancies between:
Customer expectations and management perceptions of those expectations
Management perceptions customer expectations and service-quality specifications
Service quality and service actually delivered
Service actually delivered and what is communicated about the service to customers
Customers’ expectations of the service provider and their perceptions of provider delivery
LO 9.2
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Quality of design
Intention of designers to include or exclude features in a product or service
Quality of conformance
The degree to which goods or services conform to the intent of the designers
Ease-of-use and user instructions
Increase the likelihood that a product will be used for its intended purpose and in such a way that it will continue to function properly and safely
After-the-sale service
Taking care of issues and problems that arise after the sale
Determinants of Quality
LO 9.3
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Responsibility for Quality
Top management
Design
Procurement
Production/operations
Quality assurance
Packaging and shipping
Marketing and sales
Customer service
Everyone in the organization has some responsibility for quality, but certain areas of the organization are involved in activities that make them key areas of responsibility
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Enhanced reputation for quality
Ability to command premium prices
Increased market share
Greater customer loyalty
Lower liability costs
Fewer production or service problems
Lower production costs
Higher profits
Benefits of Good Quality
LO 9.4
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Loss of business
Liability
Productivity
Costs
The Consequences of Poor Quality
LO 9.4
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Costs of Quality
Appraisal costs
Costs of activities designed to ensure quality or uncover defects
Prevention costs
All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring
LO 9.5
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Costs of Quality (cont.)
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
LO 9.5
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Ethics and Quality
Substandard work
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.
LO 9.6
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Award categories
Education
Healthcare
Manufacturing
Nonprofit/government
Service
Small Business
Purpose of the award
Stimulate efforts to improve quality
Recognize quality achievements
Publicize successful programs
The Baldrige Competition
LO 9.7
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Baldrige Criteria
Leadership
Strategic planning
Customer focus
Measurement, analysis, and knowledge management
Workforce focus
Operations focus
Results
LO 9.7
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International Organization for Standardization
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 company’s environmental performance
ISO 24700
Pertains to the quality and performance of office equipment that contains reused components
Quality Certification
LO 9.8
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Quality Certification (cont.)
ISO 9000
Quality principles
Principle 1 Customer focus
Principle 2 Leadership
Principle 3 Involvement of people
Principle 4 Process approach
Principle 5 System approach to management
Principle 6 Continual improvement
Principle 7 Factual approach to decision making
Principle 8 Mutually beneficial supplier relationships
LO 9.8
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Quality and the Supply Chain
Business leaders are increasingly recognizing the importance of their supply chains in achieving their quality goals
Requires:
Measuring customer perceptions of quality
Identifying problem areas
Correcting these problems
Supply chain quality management can benefit from a collaborative relationship with suppliers
Helping suppliers with quality assurance efforts
Information sharing on quality-related matters
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A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction
Total Quality Management
T
Q
M
LO 9.9
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TQM Approach
Find out what the customer wants
Design a product or service that meets or exceeds customer wants
Design processes that facilitate doing the job right the first time
Keep track of results
Extend these concepts throughout the supply chain
Top management must be involved and committed
LO 9.9
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TQM Elements
Continuous improvement
Competitive benchmarking
Employee empowerment
Team approach
Decision based on fact, not opinion
Knowledge of tools
Supplier quality
Champion
Quality at the source
Suppliers are partners in the process
LO 9.9
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Continuous improvement
Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs
Kaizen
Japanese word for continuous improvement
Continuous Improvement
LO 9.9
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The philosophy of making each worker responsible for the quality of his or her work
“Do it right” and “If it isn’t right, fix it”
Quality at the Source
LO 9.9
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Obstacles to Implementing TQM
Obstacles include:
Lack of company-wide definition of quality
Lack of strategic plan for change
Lack of customer focus
Poor inter-organizational communication
Lack of employee empowerment
View of quality as a “quick fix”
Emphasis on short-term financial results
Inordinate presence of internal politics and “turf” issues
Lack of strong motivation
Lack of time to devote to quality initiatives
Lack of leadership
LO 9.9
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Plan-Do-Study-Act (PDSA) cycle
Plan
Begin by studying and documenting the current process.
Collect data on the process or problem
Analyze the data and develop a plan for improvement
Specify measures for evaluating the plan
Do
Implement the plan, document any changes made, collect data for analysis
PDSA Cycle
LO 9.10
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Plan
Do
Study
Act
Plan-Do-Study-Act (PDSA) cycle
Study
Evaluate the data collection during the do phase
Check results against goals formulated during the plan phase
Act
If the results are successful, standardize the new method and communicate it to the relevant personnel
Implement training for the new method
If unsuccessful, revise the plan and repeat the process
PDSA Cycle
(cont.)
LO 9.10
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Plan
Do
Study
Act
Problem Solving
LO 9.10
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Process improvement
A systematic approach to improving a process
Map the process
Collect information about the process and identify each step in the process
Prepare a flowchart that accurately depicts the process
Analyze the process
Ask critical questions about the process
Ask specific questions about each step in the process
Redesign the process
Process Improvement
LO 9.11
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Six Sigma
A business process for improving quality, reducing costs, and increasing customer satisfaction
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
LO 9.12
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Principles
Reduction in variation is an important goal
The methodology is data driven; it requires data validation
Outputs are determined by inputs
Only a critical few inputs have a significant impact on outputs
DMAIC
Define: Set the context and objectives for improvement
Measure: Determine the baseline performance and capability of the process
Analyze: Use data and tools to understand the cause-and-effect relationships of the process
Improve: Develop the modifications that lead to a validated improvement of the process
Control: Establish plans and procedures to ensure that improvements are sustained
Six Sigma (cont.)
LO 9.12
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Basic Quality Tools
LO 9.13
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Methods for Generating Ideas
Brainstorming
Quality circles
Benchmarking
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Quality circle
Groups of workers who meet to discuss ways of improving products or processes
Less structured and more informal than teams involved in continuous improvement
Quality circle teams have historically had relatively little authority to make any but the most minor changes
Quality Circles
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Identify a critical process that needs improvement
Identify an organization that excels in this process
Contact that organization
Analyze the data
Improve the critical process
Benchmarking Process
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Operations Strategy
Quality is a strategic imperative for organizations
Customers are very concerned with the quality of goods and services they receive
Quality is a never-ending journey
It is important that most organizational members understand and buy into this idea
Customer satisfaction ≠ customer loyalty
Quality needs to be incorporated throughout the entire supply chain, not just the organization itself
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