Production Operations
Management
Quality Management
U. Akinc
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Quality Management
Quality is defined as “fitness” for intended use
(Joseph Juran)
Dimensions:
Technological
Psychological
Time Oriented
Contractual Ethical
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Six Sigma
The Six Sigma's Breakthrough Strategy is a
disciplined method of using extremely
rigorous data-gathering and statistical
analysis to pinpoint sources of errors and
ways of eliminating them
See Six Sigma and General Electric
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TQM
Total Quality Management: The management
of quality throughout the organization.. at
all levels and across all functions
TQM is both a comprehensive management
philosophy and a collection of tools and
approaches for its implementation…
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TQM Principles
Customer Defines Quality
 Top management’s leadership is essential
 Quality is a strategic issue
 Quality is responsibility of all employees
 All functions must focus on cont. impr.
 Quality problems are solved via cooperation
 Use of statistical and other tools
 Training and education is critical

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Specific TQM Approaches
 Continuous
Improvement (Kaizen)
Piecemeal improvement of existing processes
Important components:
– Process Selection What to focus on?
– Process Study What tasks, sub-processes?
– Training, Empowerment In tools and methods of improvement
– Leadership Encouragement, reward system
– Quality circles is a common way of implementation
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Specific TQM Approaches
 Business
processes re-engineering
Fundamental rethinking and redesign of
business processes that deliver quality.
–
–
–
–
–
Focus on outcome not on existing tasks
Understand the current process
Remove complexity Think critically about the process
Innovation is central Quantum leap
Benchmarking Learn from others
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Edwards Deming’s Chain
Reaction
Improve Quality
 Cost Decreases
 Productivity Improves
 Increase or maintain market share
 Stay in Business
 Provide jobs and more jobs

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Deming’s 14 Points
1. Management Commitment Be Credible
 2. Learn the New Philosophy Everybody
 3. Understand Inspection
 4. End Price Tag Decisions Price is not the sole criterion
 5. Improve Constantly
 6. Institute Training
 7. Institute Leadership

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Deming’s 14 Points (Cont’d)
Create trust, a climate for innovation
8. Drive Out Fear
 9. Optimize Team Efforts
 10. Eliminate Exhortations
 11. Eliminate Quotas (MBO) Not Targets but direction
 12. Remove Barriers to Pride in Workmanship
 13. Institute Education For everyone
 14. Take Action

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Management of Quality
 Quality of Design: Resolution of the many
trade offs among dimensions of quality
 Quality of Conformance: Degree to which
design specs are met
 Time
•
•
•

Oriented Dimensions
Availability
Reliability
Maintainability
Field Service: Repair, Replacement, Service
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Quality Management model
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A Quality management
Paradigm

Define Quality Attributes

Develop Measuring Scales

Set Quality Standards

Establish an Inspection Plan

Monitor, Discover and Correct Causes of
Poor Quality
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Quality Policy
•
Design Quality
Perceived
Value
and Cost
Level of Quality
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Quality Policy (Juran)
•
Conformance
Quality
Costs:
•Avoidable
•Unavoidable
0%
100%
Level of Conformance
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Quality Policy (Crosby)
•
Conformance
Quality
Costs:
•Avoidable
•Unavoidable
0%
100%
Level of Conformance
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Quality Control
Managing Quality of Conformance
Quality Control System

A. Inspection points
– Receiving Inspection
– Process Control
– Final Inspection
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Quality Control (cont’d)

B. Type of Measurements
– Measurement by Attributes
– Measurement by Variables

C. Amount of Inspection
– 100% Inspection
– Sampling inspection

D. Agent of Inspection
– QC Department
– Operator
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Quality Control
Statistical Quality
Control
Process
Control
Acceptance
Sampling
Attributes
Attributes
Variables
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Variables
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Statistical Process Control
(SPC)
Assignable Causes of Variation
 Un-assignable Causes of Variation
A process is considered in control when it
only exhibits variation due to un-assignable
causes.
When the variation exceeds pre-established
limits, suspicion arises that there is an
assignable (correctable) cause and hence the
process is deemed out of control.

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Control Charts
X-Bar Charts – Controlling the Central value
 R Charts– Controlling the spread of the values
 P- Charts – Controlling the proportion defective
 C- Charts – Controlling the number of defects

x
x
UCL
x
x
x
x
Mean
x
x
x
x
x
LCL
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