The document discusses various aspects of quality management including definitions of quality, total quality management principles, quality tools and standards, inspection practices, and quality in services. It defines key terms like ISO standards, quality costs, Baldrige award, and quality tools. It also explains total quality management concepts such as continuous improvement, employee empowerment, benchmarking, and statistical process control.

1. Managing Quality

16. Dimensions of Quality for Goods Operation Reliability & durability Conformance Serviceability Appearance Perceived quality Quality

17. Service Quality Attributes Under- standing Tangibles Reliability Communication Credibility Security Responsiveness Competence Courtesy Access © 1995 Corel Corp.

18. Importance of Quality Costs & market share Company’s reputation Product liability International implications Increased Profits Lower Costs Productivity Rework/Scrap Warranty Market Gains Reputation Volume Price Improved Quality

24. Traditional Quality Process (Manufacturing) Specifies Need Customer Interprets Need Marketing Designs Product Defines Quality Engineering Produces Product Plans Quality Monitors Quality Operations Quality is customer driven!

26. Achieving Total Quality Management Organizational Practices Quality Principles Employee Fulfillment Attitudes (e.g., Commitment) How to Do What to Do Effective Business Customer Satisfaction

30. Continuous Improvement Represents continual improvement of process & customer satisfaction Involves all operations & work units Other names Kaizen (Japanese) Zero-defects Six sigma © 1984-1994 T/Maker Co.

31. Shewhart’s PDCA Model 4. Act 1. Plan 3. Check 2. Do Identify the improvement and make a plan Test the plan Is the plan working Implement the plan

32. Employee Empowerment Getting employees involved in product & process improvements 85% of quality problems are due to process & material Techniques Support workers Let workers make decisions Build teams & quality circles © 1995 Corel Corp.

33. 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 © 1995 Corel Corp.

38. Just-In-Time (JIT) Example Scrap Work in process inventory level (hides problems) Unreliable Vendors Capacity Imbalances

39. Just-In-Time (JIT) Example Scrap Reducing inventory reveals problems so they can be solved. Unreliable Vendors Capacity Imbalances

45. Quality Loss Function

49. Quality Loss Function; Distribution of Products Produced Low loss High loss Frequency Lower Target Upper Specification Loss (to producing organization, customer, and society) Quality Loss Function (a) Unacceptable Poor Fair Good Best Target-oriented quality yields more product in the “best” category Target-oriented quality brings products toward the target value Conformance-oriented quality keeps product within three standard deviations Distribution of specifications for product produced (b)

50. PDCA Cycle 4.Act: Implement the plan 1.Plan: Identify the improvement and make a plan 3.Check: Is the plan working 2.Do: Test the plan

52. Seven Tools for TQM

53. Pareto Analysis of Wine Glass Defects (Total Defects = 75) 72% 16% 5% 4% 3%

55. Process Chart Example SUBJECT: Request tool purchase Dist (ft) Time (min) Symbol Description  D  Write order  D  On desk 75    D  To buyer  D  Examine  = Operation;  = Transport;  = Inspect; D = Delay;  = Storage

57. Cause and Effect Diagram Example Too many defects Problem

58. Cause and Effect Diagram Example Method Manpower Material Machinery Too many defects Main Cause Main Cause

59. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Overtime Steel Wood Lathe Too many defects Sub-Cause

60. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Overtime Steel Wood Lathe Too many defects Tired Old Slow

61. Fishbone Chart - Problems with Airline Customer Service

63. Statistical Process Control Steps Produce Good Provide Service Stop Process Yes No Assign. Causes? Take Sample Inspect Sample Find Out Why Create Control Chart Start

64. Process Control Chart

65. Control Chart

66. Patterns to Look for in Control Charts

69. Inspection Points in Services Organization What is Inspected Standard Jones Law Office Receptionist performance Billing Attorney Is phone answered by the second ring Accurate, timely, and correct format Promptness in returning calls

70. Inspection Points in Services Organization What is Inspected Standard Hard Rock Hotel Reception desk Doorman Room Minibar Use customer’s name Greet guest in less than 30 seconds All lights working, spotless bathroom Restocked and charges accurately posted to bill

71. Inspection Points in Services Organization What is Inspected Standard Bayfield Community Hospital Billing Pharmacy Lab Nurses Admissions Accurate, timely, and correct format Prescription accuracy, inventory accuracy Audit for lab-test accuracy Charts immediately updated Data entered correctly and completely

72. Inspection Points in Services Organization What is Inspected Standard Hard Rock Cafe Busboy Busboy Waiter Serves water and bread within 1 minute Clears all entrée items and crumbs prior to desert Knows and suggest specials and desserts

73. Inspection Points in Services Organization What is Inspected Standard Nordstrom’s Department Store Display areas Stockrooms Salesclerks Attractive, well-organized, stocked, good lighting Rotation of goods, organized, clean Neat, courteous, very knowledgeable

74. Inspection Points in Services Bank Teller stations Loan accounts Checking accounts Shortages, courtesy, speed, accuracy Collateral, proper credit checks, rates, terms of loans, default rates, loan rates Accuracy, speed of entry, rate of overdraws Organization Some Points of Inspection Issues to Consider

75. Inspection Points in Services Retail store Stockrooms Display areas Sales counters Clean, uncluttered, organized, level of stockouts, amply supply, rotation of goods Attractive, well-organized, stocked, visible goods, good lighting Neat, courteous knowledgeable personnel; waiting time; accuracy in credit checking and sales entry Organization Some Points of Inspection Issues to Consider

76. Inspection Points in Services Restaurant Kitchen Cashier station Dining areas Clean, proper storage, unadulterated food, health regulations observed, well-organized Speed, accuracy, appearance Clean, comfortable, regular monitoring by personnel, Organization Some Points of Inspection Issues to Consider

80. Service Quality Attributes Under- standing Tangibles Reliability Communication Credibility Security Responsiveness Competence Courtesy Access © 1995 Corel Corp.