Managing Quality Chapter 6

30 November 2023
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Quality and Strategy
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Managing quality helps build successful strategies of differentiation, low cost , and response. Two ways quality improves profitability: 1.Sales Gains 2.Reduced cost
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Sales Gain
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Via improved response, price flexibility, increased market share, and/or improved reputation.
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Reduced Costs
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Via Increased productivity, lower network and scrap costs, and.or lower warranty cost.
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Operation Management Objective
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To build a total quality management system that identifies and satisfies customer needs.
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Quality
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The ability of a product or service to meet cusomter needs
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American Society of Quality
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An official Definition of Quality: The total features and characteristics of a product or service that bears on it ability to satisfy stated or implied needs
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Two well know quality Awards
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U.S.: Malcom Baldridge National quality Award Japan:Deming Prize
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ISO 9000
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A set of quality standards developed by the international organization for standardization Only quality standard with international recognition
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Cost of quality (COQ)
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The cost of doing things wrong; that is, the price of non conformance
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4 major categories of cost associated with quality
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1.Prevention cost 2.Appraisal cost 3.Internal failure cost 4.External failure cost
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Total Quality Management (TQM)
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Management of an entire organization so that it excels in all aspects of products and service that are important to the customer
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Seven Concepts for effective TQM
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1.Continous improvement 2.Six sigma 3.Employee Empowerment 4.Benchmarking 5.Just in time 6.Taguchi Concepts 7. Knowledge of TQM tools
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Continuous Improvement
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A continous improvement model that involves for stages Plan,Do, Check, Act. (PDCA)
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Six Sigma
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A program to save time, improve quality, and lower cost. Statistical sense 99.9997% accuracy or 3.4 defects per million
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3.Employee Empowerment
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Enlarging employee jobs so that the added responsibility and authority are moved to the lowest level possible in the organization. Quality Circle
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Quality Circle
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A group of employees meeting regularly with a facilitator to solve work related problems in their work area
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4.Benchmarking
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Selecting a demonstrated standard of performance that represents the very best performance for a process or an activity
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5. Just In time
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The philosophy behind JIT involves continuing improvement and enforced problem solving, JIT system are designed to produce or deliver goods just as they are needed.
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Quality Robust
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Products that are consistently built to meet customers needs in spite of adverse conditions in the production process.
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Quality Loss Functions (QLF)
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A mathematical function that identifies all costs connected with poor quality and show how these costs increase as products quality moves from what the customer wants
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QLF math formula
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L=D^2C
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Target Oriented Quality
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A philosophy of continuous improvement to bring the product exactly on target
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TQM Tools
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Tools that generate ideas include: Check Sheet Scatter diagram cause and effect diagram Tools for organizing the idea Pareto chart flowchart Tools for identifying the problems Histograms statistical process control chart
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Cause and Effect chart
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A schematic technique used to discover possible locations of quality problems 4 M's (Material,machinery, manpower, and methods)
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Pareto chart
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A graphic that identifies the few critical items as opposed to many less important ones
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Flowchart
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A block diagram that graphically describes a process or system.
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Statistical Process control(SPC)
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A process used to monitor standards, make measurements, and take corrective actions as a product or service is being produced
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Control Chart
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A graphic presentation of process data over time, with predetermined control limits
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Role of inspection
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To ensure that a system is producing at the expected quality level, control of the process is needed.
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Inspection
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A means of ensuring that an operation is producing at the quality level expected
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Source Inspection
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Controlling or monitoring at the point of production or purchase: at the source
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Poka-yoke
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"Fool proof" has come to mean a device or technique that ensures the production of a good unit every time
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Checklist
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Type of poka-yoke that list the steps needed to ensure consistency and completeness in a task
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Attribute Inspection
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An inspection that classifies items as being either good or defective.
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Variable Inspection
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Measure dimension such as weight, speed, size, or strength to see if an item fall siwthin an acceptable range
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TQM in services
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Determinant of service quality , reliability, responsiveness, competence, access courtesy, communication, credibility, security, understanding, the customer, and tangibles
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Service Recovery
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Training and empowering frontline workers to solve problems immediately