Chap 6 Managing Quality

1

• Chap 6 - Managing Quality
• Motorola was 6000 rejects/million, 5 years
  latter 40/million
• Education program - quality and statistical
  process control
• Focused on uniformity and consistency
• Employee participation and employee teams
• Managing quality differentiates your product
• Bose - High quality
• Nucor Steel - low cost
• Dell Computer - response
• Quality leads to Market share f6.1 p170
• Lower price due to less re-work, scrap, and
  warranty costs leads to
• Improved response times and Improved reputation
  leads to
• Greater market share leads to Economies of Scale
  leads to lower price
• Loop
• TQM - begins with an organizational environment
  that fosters quality

2

• Definitions of Quality
• User-Based What consumer says it is
• Why people buy a certain vehicle
• Manufacturing-Based Degree to which a product
  conforms to design specification
• tolerances, engineering
• Product-Based Level of measurable product
  characteristic
• MPG, HP, 0-60 speed, 60-0 speed
• Reliability durability, Conformance,
  Serviceability, Appearance, Perceived quality
• Reasons Quality is Important - Company
  reputation, Product liability, Global
  implications (Yugo)
• International Quality Standards
• Z8101-1981 (Japan)
• ISO 9000 series (Europe/EC) for products sold in
  Europe
• ISO 14000 series (Europe/EC) recycling labeling
• Life-cycle assessment - ie computers
• ASQC Q90 series MILSTD (U.S.)
• Malcom Baldridge National Quality Award (U.S.)

3

• TQM
• Encompasses entire organization, from supplier to
  customer
• W. Edwards Deming, 14 points, t6.1 p175, post
  WWII Japan Died in 1993
• 5 Concepts of TQM
• 1. Continuous improvement
• people, equipment, suppliers, material,
  procedures
• Other names - Kaizen (Japanese), Zero-defects,
  Six sigma
• eliminate variables that effect quality
• 2. Employee empowerment
• Getting employees involved in product process
  improvements - communication
• 85 of quality problems are due to process
  material - find a better way to build it
• Solve problems at the lowest level - Let workers
  make decisions
• Build teams quality circles (Saturn ads)

4

• 3. Benchmarking
• target to compare your performance
• similar organizations, but not necessarily the
  same industry
• best practices of other firms
• LL Bean p177, Warehouse - common sense
• 4. Just-in-time (JIT)
• produce or deliver goods JIT
• vendor partnership programs
• Reduces all inventory levels - costs
• Immediately exposes bad quality, eliminate
  variables
• Good quality supply - no need for large inventory
• Holding cost verse volume discount
• 5. Taguchi Techniques
• Most quality problems result from product
  process design
• Produce products uniformly regardless of
  manufacturing conditions
• 6. Knowledge of tools

5

• 7 Tools for TQM, f6.5 p180
• a) Check Sheets, tallies, cross-tabs
• b) Scatter Diagrams, x-y plot
• c) Cause and Effect Diagram (Fish-Bone) f6.6 p181
• Used to find problem sources/solutions
• Main causes for problem as bones
• Problem sub-areas on each bone.
• d) Pareto Chart p182
• a method of organizing errors, problems or
  defects
• Joseph M Juran, post WWII Japan, 80 of a firms
  problems are a result of only 20 of the causes
  
• e) Flow Charts - graphically represent a process
  or system
• f) Histograms - graphical representation of a
  frequency distribution. Used of goodness of
  fit analysis, determine how the data is
  distributed.

6

• g) Statistical Process Control Chart
• quality measurement on the y axis, time on x
  axis.
• Determine if the process is in control. Is the
  machine working properly.
• Uses statistics control charts to tell when to
  adjust process f 6.7 p184
• Create standards, upper lower limits, UCL, LCL,
  target value
• Take corrective action (if necessary)
• The Role of Inspection
• Inspection - measuring tasting, touching,
  weighing, testing
• Examining items to see if an item is good or
  defective
• Inspection may destroy product
• Detecting a defective product does not correct
  deficiencies in process or product
• Quality can not be inspected into a product
• Source Inspection - doing the job properly,
  employee empowerment
• Poka-yoke - foolproof - avoid errors provide
  quick feedback, Fries example p185

7

• TQM In Services
• Service quality is more difficult to measure than
  for goods
• Service quality perceptions depend on
  expectations vs. reality
• When people brag about restaurants or movies
• Focus group research, what is quality service
• 10 determinants in t6.4 p187
• When technology has evened out, product
  distinction can be found in service, copiers,
  computers.
• Liability Issues
• Expectations for quality levels are higher than
  ever.
• Tolerance are tighter
• pill bottles, p188
• food poisoning
• recall done immediately.