Transcript Module BML003: Introduction to Supply Chain Management

BA (Hons) Business, Management &
Communications
Managing Quality & Risk
Semester 1
Week 2 – 22/09/2014
Module Lecturer: Tim Rose
Module Route Map
Introduction to managing quality
Defining quality and its importance
Quality monitoring and controlling process
Approaches to quality improvement
Diagnosing quality problems
Preventing failure
Identifying potential causes of failure.
Intended learning outcomes
Identify quality characteristics
Discuss measurment of quality
Explore methodology of quality management
Discuss application of quality control processes
Introduce statiscal approaches to quality.
Activity 1 (10 mins)
In groups – specify the quality characteristics of:
• Group A – a Car
• Group B – a Bank Loan
• Group C – an Airline Journey.
Quality Characteristics
Including characteristics based on:
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Functionality – performance and features
Appearance – aesthetic appeal, look, feel, sound & smell
Reliability – consistency of performance
Durability – total useful life of the product
Recovery – ease of problem solution
Contact – include personnel involvement/ intangibles
(Plus, legal & regulatory compliance requirements).
Presentation sourced:
Slack, et al (2007)
Quality characteristics of the 'total package'
• Breakdown of 'package' to identify individual characteristics
within and between each element of itself
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'Package' meaning organisation, operation, department, etc...
• Enables assignment of responsibilities for maintaining each
aspect of quality; 'accountability‘.
Measuring each characteristic
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Aim for specific, quantifiable, objective tangible measures
Measure intangibles, such as customer perception, staff
satisfaction (think 'The Five Gap Model' of quality)
Two types of measures
• Variables – measured on a continuous variable scale e.g.
length, diameter, weight, time
• Attributes – assessed on two states e.g. right or wrong, works
or does not work (yes/no).
Setting quality standards
Against what do you measure quality?
• The quality standard is the level of quality which defines
the boundary between acceptable and unacceptable.
• Need to consider organisational constraints e.g. legal,
regulatory, technology, costs …
• Standards need to meet customer expectations.
Activity 2: (30 mins)
Quality Control Processes
In groups, research and prepare a short presentation on your allocated
topic:
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EFQM
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http://www.efqm.org/the-efqm-excellence-model
The Kitemark BSI
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ISO 9001:2008
Investors in People
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The Standard
Six Sigma
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http://www.isixsigma.com/new-lean-six-sigma/
Control quality standards
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Where should the checks take place?
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Identify critical control points to enable product/service to conform to
specification
Consider risk based approach to defining critical control points i.e. prior to a
costly part of the process ...
100% product check or sample check only?
100% check may not be 100% accurate?
Sampling can create judgement errors:
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Type I error – making a correction where none is needed
Type II error – not making corrections where they are needed.
Control quality standards
3. How should the checks be performed –
Statistical Process Control (SPC)
Sampling the process during production
Acceptance sampling
Analysis of incoming or outgoing batch of materials as
acceptable or not.
Statistical Process Control (SPC)
Key elements:
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Control Charts – Useful to monitor results of many samples
over a period of time
Identify trends/patterns in faults reported
Decision making to resolve fault – consider human and/or
technical solutions
Set control limits (usually at three standard deviations either
side).
Variation in process quality
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Common variance causes:
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Machinery
Materials
People
Environmental
Key question – ‘Is this variation in the process performance
acceptable?’
Key decision – define the acceptable range of weights within
agreed tolerance levels – this is the specification range.
SPC summary
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System assumes any values of process performance within the
control limits are equally acceptable and any values outside the
limits are not
(i.e. Values close to the ‘target’ are regarded as equal to those
on perimeter range)
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Sustaining performance within given control limits does not
help to support an ethos of ‘continuous improvement’.
Benefits of SPC
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Builds on process knowledge at detailed level
Organisational experience in understanding the specifics of
each process and its capability
Competitive advantage
Greater accuracy in predicting how a process will perform
under change
Detailed analysis builds the knowledge of process capability
leading to strategic advantage.
Acceptance Sampling
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Process control before or after a process
Sample will determine whether to accept or reject the whole
batch
Usually based on attributes (wrong/right)
Risks involved in using a sample to determine decision
• Type I risk = producer’s risk (batch rejected which is of
good quality)
• Type II risk – consumer’s risk (batch accepted which is of
poor quality and sending it to consumer).
Out of class activity
P. 551-565 –
Slack, N., Chambers, S. & Johnston, R. (2009) Operations
Management. 6th Edition. London: Financial Times Prentice
Hall
Intended learning outcomes
 Identify quality characteristics – Activity 1
 Discuss measurment of quality - PPT
 Explore methodology of quality management – Activity 2
 Discuss application of quality control processes - PPT
 Introduce statiscal approaches to quality – PPT and ‘Out of class
activity’.
Any questions …?