Chapter 2
Quality in Manufacturing
and Service Systems
Slide 2.1
Growth of Modern Quality
Management
Performance
excellence
Service
quality
Improved
product designs
Manufacturing
quality
Slide 2.2
Key Idea
As consumer expectations have risen, a
focus on quality has permeated other key
sectors of the economy, most notably
health care, education, not-for-profits,
and government.
Slide 2.3
Quality in Manufacturing
System Functions (1 of 2)
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Marketing and sales
n
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Product design and engineering
n
l
Responsible that the product is made correctly
Tool engineering
n
Slide 2.4
Responsible for specifying long-term and short-term production
requirements for filling customer orders and meeting anticipated
demands
Manufacturing and assembly
n
l
Responsible for procurement
Production planning and scheduling
n
l
Responsible for developing technical specifications for products and
processes determined by the marketing function
Purchasing and receiving
n
l
Responsible for determining customer needs and expectations
Responsible for designing and maintaining tools used in
manufacturing inspection
Quality in Manufacturing
System Functions (2 of 2)
l
Industrial engineering and process design
n
l
Finished goods inspection and test
n
l
Slide 2.5
Judge the quality of manufacturing
Packaging, shipping, and warehousing
n
l
Responsible for working with product design engineers to develop
realistic specifications, appropriate technologies, equipment, work
methods, and a smooth production flow
Protect the quality of goods after manufacturing
Installation and service
Relationships in a Typical
Manufacturing System (Fig.2.1)
Slide 2.6
Quality in Marketing
Marketing and sales personnel are
responsible for determining the needs
and expectations of consumers.
Slide 2.7
Quality in Product
Design
Product design and engineering functions
develop technical specifications for
products and production processes to
meet the requirements determined by the
marketing function.
Slide 2.8
Quality in Purchasing
A purchasing agent should not simply be
responsible for low-cost procurement, but
should maintain a clear focus on the
quality of purchased goods and materials.
Slide 2.9
Quality in Production
Planning & Scheduling
Poor quality often results from time
pressures caused by insufficient planning
and scheduling.
Slide 2.10
Quality in Manufacturing
and Assembly
Both technology and people are essential
to high-quality manufacturing.
Slide 2.11
Quality in Production
Planning & Scheduling
Poor quality often results from time
pressures caused by insufficient planning
and scheduling.
Slide 2.12
Quality in Process
Design
Manufacturing processes must be capable
of producing output that meets
specifications consistently.
Slide 2.13
Quality in Finished Goods
Inspection and Testing
The purposes of final product inspection
are to judge the quality of manufacturing,
to discover and help to resolve production
problems that may arise, and to ensure
that no defective items reach the
customer.
• If quality is built into the product, final
inspection should be used for auditing and
testing
Slide 2.14
Quality in Installation and
Service
Service after the sale is one of the most
important factors in establishing
customer perception of quality and
customer loyalty.
Slide 2.15
Quality in Business Support
Functions for Manufacturing
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l
Slide 2.16
General management
Finance and accounting
Human resource management
Quality assurance
Legal services
Quality in Services
l
Service is defined as “a social act
which takes place in direct contact
between the customer and
representatives of the service
company.”
n
Examples: Hospitals
Law firms
Slide 2.17
Types of Services
l
Core services - primary means of
creating customer satisfaction
l
Facilitating services - enhance the
value of core services
American Management Association estimates that poor
customer service accounts for 2/3 of the portion a
company’s customers are lost annually
Slide 2.18
Critical Differences Between Service
and Manufacturing
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Customer needs more difficult to identify and
measure
Output is intangible
Services are produced and consumed
simultaneously
Customers are often involved in actual process
Services are more labor-intensive
Manufacturing is more equipment intensive
Services handle large numbers of transactions
Slide 2.19
Higher Education as a
Production System
Suppliers:
families, high
schools, colleges,
business
Design and
Redesign
Consumer
research
Customers:
business, families,
society, students
Inputs:
Outputs:
students
faculty
able students
new knowledge
Teaching, counseling,
scientific research
Processes
Slide 2.20
Key Dimensions of Service
Quality
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Slide 2.21
Time
Timeliness
Completeness
Courtesy
Consistency
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Accessibility and
convenience
Accuracy
Responsiveness
Key Service Attributes
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Slide 2.22
Intangible output
Simultaneous production and
consumption
Customer involvement
Labor intensity
High volumes of transactions
Service System Quality: Two
Important Components
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Slide 2.23
Employees
Information technology