390(H/R) Ch6 Managing Quality I. FLOW OF ACTIVITIES NECESSARY TO ACHIEVE TOTAL QUALITY MANAGEMENT A. Organizational Practices 1. Leadership 2. Mission statement 3. Effective operating procedure 4. Staff support 5. Training Yields: What is important and what is to be accomplished B. Principles 1. Customer focus 2. Continuous improvement 3. Employee empowerment 4. Benchmarking 5. Just-in-time 6. Tools of TQM Yields: How to do what is important and to be accomplished C. Employment Fulfillment 1. Empowerment 2. Organizational commitment Yields: Employees’ attitudes that they can accomplish what is important and to be accomplished. D. Customer satisfaction 1. Winning orders 2. Repeat customers Yields: An effective organization with a competitive advantage. II. QUALITY ISSUES A. Definitions 1. ASC: Product characteristics & features that affect customer satisfaction 2. User-Based: What customer says it is 3. Manufacturing-Based: Degree to which a product conforms to design specification 4. Product-Based: Level of measurable product characteristic B. Dimensions of Quality for Goods 1. Operation 4. Serviceability 2. Reliability & durability 5. Appearance 3. Conformance 6. Perceived quality C. Service Quality attributes 1. Reliability 6. Communication 2. Responsiveness 7. Credibility 3. Competence 8. Security 4. Assess 9. Understanding 5. Courtesy 10. Tangibles D. Importance of quality 1. Market share 4. International implications 2. Company’s reputation 3. Product liability E. Cost of quality 1. Prevention costs – reducing the potential for defects 2. Appraisal costs – evaluating products 3. Internal failure – of producing defective parts or service 4. External costs – occur after delivery F. Malcolm Baldrige National Quality Award 1. Established in 1988 by the U.S. Government 2. Designed to promote TQM practices 3. Some criteria - executive leadership; strategic planning; customer satisfaction 4. Recent winners - GTE; AT&T; Eastman Chemical. III. TOTAL QUALITY MANAGMENT A. Concepts of TQM 1. Continuous improvement 4. Just-in-time (JIT) 2. Employee empowerment 5. Taguchi concepts 3. Benchmarking 6. Knowledge of quality tools B. Tools for TQM 1. Quality function deployment - House of Quality 2. Taguchi technique 5. Process charts 3. Quality loss function 6. Cause-and-effect diagram 4. Pareto charts 7. Statistical process control (SPC) C. Quality Robustness - produce products uniformly regardless of manufacturing conditions D. International Quality standards 1. Industrial Standard Z8101-1981 (Japan) - Specification for TQM 2. ISO 9000 series - Quality standards for products sold in Europe (even if made in U.S.) 3. ISO 14000 series (Europe/EC) - Standards for recycling, labeling etc. 4. ASQC Q90 series; MILSTD (U.S.) IV. STATISTICAL PROCESS CENTER (SPC) A. Uses statistics & control charts to tell when to adjust process B. Developed by Shewhart in 1920’s C. Involves – 1. Creating standards (upper & lower limits) 2. Measuring sample output (e.g. mean weight.) 3. Taking corrective action (if necessary) D. Done while product is being produced V. INSPECTION A. Involves examining items to see if an item is good or defective B. Detect a defective product - Does not correct deficiencies in process or product C. Issues – 1. When to inspect. 2. Where in process to inspect VI. WHEN AND WHERE TO INSPECT A. At the supplier’s plant while the supplier is producing B. At your facility upon receipt of goods from the supplier C. Before costly or irreversible processes D. During the step-by-step production process E. When production or service is complete F. Before delivery from your facility G. At the point of customer contact