Transcript Materials Management

Management of Quality
Operations Management
Session 4
1
Objectives
By the end of this session, student will be able to:
– Assess the importance of quality
– Understand the history and the development of
quality management
– Understand the various definitions of quality
– Understand how quality promotes strategic objectives
– Understand the principles of TQM
– Be able to implement TQM
– Understand need to promote continuous improvement
2
Topics
•
•
•
•
•
•
•
History of quality management
Zero defects/TQM/Six Sigma
JIT
House of Quality
Taguchi – robustness
Taguchi – fish-bone diagram
Quality in service industries
3
Ways in Which Quality Can
Improve Productivity
Market Gains
Improved
Quality
– Improved response
– Economies of Scale
– Improved reputation
Reduced Costs
Increased
Profits
– Increased productivity
– Lower rework and scrap
costs
– Lower warranty costs
4
Traditional Quality Process
(Manufacturing)
Monitors
Quality
Customer
Marketing
Engineering
Operations
Specifies
Need
Interprets
Need
Designs
Product
Produces
Product
Defines
Quality
Who should define quality?
5
The Quality Gurus
• W Edwards Deming (1950s)
– workers must know what quality work is and be given
the means to achieve it – use of statistical techniques
• Joseph Juran (1960s – 1970s)
– ‘cost of quality’. Quality = ‘fitness for purpose’.
As defects decrease cost increases so zero defects is
impossible
• Philip B Crosby (1980s)
– Quality = ‘conformance to requirements’. As quality
improves, costs fall. So, “Quality is free!”
• Kaoru Ishikawa (1960s)
- Company wide quality. Quality circles.
6
Deming’s Fourteen Points
1.
2.
3.
4.
5.
Create consistency of purpose
Lead to promote change
Build quality into the products
Build long term relationships
Continuously improve product, quality, and
service
6. Start training
7. Emphasize leadership
7
Deming’s Points – cont.
8. Drive out fear
9. Break down barriers between departments
10. Stop haranguing workers
11. Support, help, improve
12. Remove barriers to pride in work
13. Institute a vigorous program of education
and self-improvement
14. Put everybody to work on the
transformation
8
TQM
• Encompasses entire organization, from
supplier to customer
• Stresses a commitment by management
to have a continuing company-wide drive
toward excellence in all aspects of
products and services that are important to
the customer.
9
Flow of Activities Necessary to
Achieve TQM
Organizational Practices
Quality Principles
Employee Fulfillment
Customer Satisfaction
10
Organizational Practices
• Leadership
• Mission statement
• Effective operating procedure
• Staff support
• Training
Yields: What is important and what is to be
accomplished
11
Quality Principles
• Customer focus
• Continuous improvement
• Employee empowerment
• Benchmarking
• Just-in-time
• Tools of TQM
Yields: How to do what is important and to
be accomplished
12
Achieving
Total Quality Management
Effective
Business
Employee
Fulfillment
Quality
Principles
Organizational
Practices
Customer
Satisfaction
Attitudes
(e.g., Commitment)
How to Do
What to Do
13
Concepts of TQM
•
•
•
•
•
Continuous improvement
Employee empowerment
Benchmarking
Just-in-time (JIT)
Knowledge of tools
14
Continuous Improvement
• Represents continual improvement of
process & customer satisfaction
• Involves all operations
& work units
• Other names
– Kaizen (Japanese)
– Zero-defects
– Six Sigma
15
Employee Empowerment
• Getting employees involved in product &
process improvements
– 85% of quality problems are due to process &
material
• Techniques
© 1995 Corel Corp.
– Support workers
– Let workers make decisions
– Build teams & quality circles
16
Quality Circles
• Group of 6-12 employees from same work
area
• Meet regularly to solve work-related
problems
– 4 hours/month
• Facilitator trains
& helps with
meetings
17
Benchmarking
Selecting best practices to use
as a standard for performance
•
•
•
•
•
Determine what to benchmark
Form a benchmark team
Identify benchmarking partners
Collect and analyze benchmarking information
Take action to match or exceed the benchmark
18
Six Sigma
• Pioneered by Bill Smith at Motorola in 1986
• Aims to reduce defect levels below 3.4 Defects
Per (one) Million Opportunities (DPMO)
• DMAIC - used to improve an existing business
process
• DMADV - used to create new product designs or
process designs for more predictable, mature
and defect free performance
19
Just-in-Time (JIT)
Relationship to quality:
– JIT cuts cost of quality
– JIT improves quality
– Better quality means less inventory and
better, easier-to-employ JIT system
20
Just-in-Time (JIT)
• ‘Pull’ system of production/purchasing
– Customer starts production with an order
• Involves ‘vendor partnership programs’ to
improve quality of purchased items
• Reduces all inventory levels
– Inventory hides process & material problems
• Improves process & product quality
21
Just-In-Time (JIT) Example
Work in process inventory level
(hides problems)
Unreliable
Vendors
Scrap
Capacity
Imbalances
22
Just-In-Time (JIT) Example
Reducing inventory reveals
problems so they can be solved.
Unreliable
Vendors
Scrap
Capacity
Imbalances
23
Quality Function Deployment
(QFD)
• Determines what will satisfy the customer
• Translates customer preferences into
specific product characteristics
• Product design process using
cross-functional teams
eg. marketing/engineering/manufacturing
24
House of Quality
• House of Quality is a QFD technique
• Involves creating 4 tabular ‘Matrices’ or
‘Houses’- breaks down product design into
increasing levels of detail
25
To Build House of Quality
• Identify customer wants
• Identify how the good/service will satisfy
customer wants.
• Relate the customer’s wants to the
product’s hows.
• Identify relationships between the firm’s
hows.
• Develop importance ratings
• Evaluate competing products
26
House of Quality Sequence
Customer
Requirements
Design
Characteristics
House
1
Design
Characteristics
Specific
Components
House
2
Specific
Components
Production
Process
House
3
Production
Process
Quality
Plan
House
4
27
Taguchi Techniques
• Experimental design methods to improve
product & process design
– Identify key component & process variables
affecting product variation
• Taguchi Concepts
– Quality robustness
– Quality loss function
– Target specifications
28
Quality Robustness
• Ability to produce products
uniformly regardless of
manufacturing conditions
• Robustness is more a
function of design than
control of manufacture
• Put robustness in House of
Quality matrices besides
functionality
• Quality losses result mainly
from product failure after
sale
© 1995 Corel Corp.
© 1984-1994 T/Maker Co.
29
Fish-Bone Diagram
A tool of TQM
30
Cause and Effect Diagram
• Used to find problem sources/solutions
• Other names
– Fish-bone diagram, Ishikawa diagram
• Steps
– Identify problem to correct
– Draw main causes for problem as ‘bones’
– Ask ‘What could have caused problems in
these areas?’ Repeat for each sub-area.
31
Cause and Effect Diagram
Example
Problem
Too many
defects
32
Cause and Effect Diagram
Example
Method
Manpower
Main Cause
Too many
defects
Material
Machinery
Main Cause
33
Cause and Effect Diagram
Example
Method
Drill
Manpower
Over
Time
Wood
Steel
Material
Too many
defects
Lathe
Machinery
Sub-Cause
34
Cause and Effect Diagram
Example
Method
Drill
Slow
Manpower
Tired
Over
Time
Old
Wood
Steel
Material
Too many
defects
Lathe
Machinery
35
TQM In Services
• Service quality perceptions depend on
comparison of expectations with reality
• Perception of service quality derived from
process as well as outcome
• Types of service quality
– Normal: Routine service delivery
– Exceptional: How problems are handled
36
Determinants of Service Quality
•
•
•
•
•
Reliability
Responsiveness
Competence
Access
Courtesy
•
•
•
•
Communication
Credibility
Security
Understanding/
knowing the
customer
• Tangibles
37