Operations Management CustomerFocused Principles

1
Operations ManagementCustomer-Focused Principles

• Quality Control and Process Improvement
• (Part 1)

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Overview

• Recall Aspects of TQM (qual2.ppt)
• Quality concepts
• Quality management
• Quality control
• Quality improvement
• Quality Improvement -- At the Source
• The Process Focus
• Process Improvement and Control Overview
• Coarse Grained Analysis

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Quality Improvement -- At the Source

• Quality Improvement
• Recall Quality Action Cycle (Exhibits 4-2 and
  5-1)
• Design
• Fail-safe (pokayoke)
• Capable
• Detection -- if not fail-safe
• Note related OM Principles
• OM2 Dedicate to continuous improvement
• OM10 Facilitate provision of goods without
  error
• OM14 Involve frontline associates

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Exhibit5-1
Quality Action Cycle
5.
1.
Carry Out Process Improvement
Projects

Design Quality In

2.
Perform Self-Inspection Correction
4.
Collect Analyze Process Data
3.
Find Defects in next process in next
company by final customer
5-1
5
Quality Control Modes
Heavy use of inspection Manufacturing QC
are adversaries Firefighting Management by
crisis High costs Lost sales Loss of
competitive position
DetectionMode
Very little inspection QC is a resource of
Manufacturing - teamwork Problem elimination
Smooth operations - continual improvement
Decreasing costs Increased sales More
competitive
5-7
6
Quality Improvement -- At the Source

• Quality as a Specialty
• Contrast
• Quality as the responsibility of Q/C alone
• Q/C as a facilitator (Exhibit 5-2)

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Exhibit 5-2
The Quality Department Emerging Roles
Companywide quality planning. Generating
executive reports on quality. Auditing outgoing
quality. Auditing quality practices. Coordinating
assisting on improvement projects. Training for
quality. Consulting for quality. Developing new
quality methodologies. Transferring activities to
line departments.
5-2
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Quality Improvement -- At the Source

• Inspection
• Once synonymous with quality
• Ineffective
• Error prone
• Takes time (never enough inspectors)
• Negative behavioral consequences
• Sometimes it cant be avoided
• Integrate into tasks
• Cuts flow time gt OM11
• Quick response
• Quick feedback
• On time results
• More time for quality improvement! gt OM10

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Quality Improvement -- At the Source

• Inspection (Continued)
• Typical approaches
• Opinion surveys
• Statistical sampling
• SPC
• Acceptance sampling
• 100 inspection
• No guarantee
• Infeasible
• Destructive testing
• Cant inspect every attribute
• First-article (or first and last) inspection

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Approaches to Quality
Traditional Approach to Quality
Control the quality of the product by
inspection. Acceptable quality levels (AQL).
Some defects will slip through.
World-Class Approach to Quality
The product is only the result of the process
which makes it. If the process is
correct, the product will be good. No need to
inspect.
5-6
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The Process Focus

• Problems
• Result from series of activities (process)
• Not from single aspect (e.g., physician)
• Therefore, for each product, entire process needs
  study for improvement
• Process
• Recall Input/Process/Output model (Chapter 1)
• Input components change over time gt
  instability
• Refer to Exhibit 5-3

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The Process Focus(From Introduction to OM)

• Operation Transformation Process
• Process inputs
• Management
• Methods
• Materials
• Machines
• Maintenance
• Personnel
• Information
• Energy
• Transformation (macro/micro views)
• Outputs (components / finished goods / services)

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Operations A Transformation Process
Outputs
Goods
TransformationProcesses
Services
1-1
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Exhibit 5-3
A Transformation Process
DEFINITION
Process
A unique combination of elements, conditions, or
causes that collectively produces a given outcome
or set of results.
5-3
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Exhibit 5-3
A Transformation Process (cont.)
5-4
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Exhibit 5-3
A Transformation Process (cont.)
5-5
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The Process Focus

• Quality Characteristics
• Recall the multiple dimensions of quality
  (Exhibit 3-1)
• Garvins eight dimensions
• Ten dimensions of service quality
• Characteristics output aspects to be measured
• Each involves variation gt OM10
• Assignable (or special) cause
• Common cause (random variation)
• Types of characteristics
• Variables (quantitative data)
• Attributes (qualitative data)
• Some examples (Exhibits 5-4 through 5-6)

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Exhibit 5-4
Normal Distribution -- Shaft Diameter (What is
this telling us?)
µ
3
2
1
-1
-2
-3
5.88 cm
6.00 cm
6.12 cm
Target
5-8
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Exhibit 5-5
The Process Focus Contributing Variables
Measurement
Management
Maintenance
Manpower
Machines
Materials
Methods
PROCESS 3-inch machine bolt
Length
Process performanceQuality characteristics
Distributionof bolt lengths
(Inches)
Materials
5-9
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Exhibit 5-6
Bolt Length Process Output
A. Two cutting methods
Time
How? gt
2.9
3.0
3.1
Target
Bolt length (inches)
5-10
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Exhibit 5-6
Bolt Length Process Output (cont.)
B. Single cutting method
Time
2.9
3.0
3.1
Bolt length (inches)
5-11
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Exhibit 5-6
Bolt Length Process Output (cont.)
C. Single cutting method with bar-stock
feed adjustment
Time
2.9
3.0
3.1
Bolt length (inches)
Time
5-12
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Process Improvement and Control Overview

• Apply Scientific Method (Exhibit 5-7)
• Incorporate Tools (Exhibit 5-8)
• General tools
• Coarse grained tools
• Fine grained tools

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Exhibit 5-7
Scientific Method for Process Improvement
1. Identify and define the problem.2. Study
the existing situationcollect necessary
data.3. Generate possible solution
alternatives.4. Evaluate alternatives and
choose the preferred one.5. Implement the
improvement and measure results.6. Evaluate
and revise if required.7. Otherwise, return to
step 1 and start again with a new problem.
5-13
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Exhibit 5-8
Tools for Process Improvement
General Tools
1. Team-building and group-interaction tools.2.
Specific process/technology tools.
Coarse-grained Tools
3. Process flowchart.4. Check sheets and
histograms.5. Pareto analysis.6. Fishbone
charts.
Fine-grained Tools
7. Fail-safing.8. Design of Experiments
(DOE)9. Scattergrams.
10. Run diagram.11. Process control chart.
5-14
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Coarse Grained Analyses

• How Are These Different from General and Fine
  Grained Analyses?
• Level of rigor
• Stage of improvement
• ???
• Note Order of Tools Listing

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Exhibit 5-9
Flow Chart Symbols
Activity that adds value to a workpiece or
provides a value-adding service to a customer
usually requires a setup.
Operation
Movement of object from one work station to
another movement of customer from one operation
to another.
Transportation
Work is checked for some characteristic of
quality may call for 100-percent inspection or
inspection by sampling.
Inspection
Applies to materials or documents may be
temporary or permanent.
Storage
Time person, materials, or documents wait for
next operation in lot delay, wait is for other
items in the lot to be processed in process
delay, entire lot waits for workstation or other
bottleneck to clear.
Delay
5-15
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Exhibit5-10
Flowchart Travel Authorization Process
A. Original travel authorization process
Secretary types travel authorization (TA)
Traveler informs secretary
To approving manager
Secretary arranges for tickets
To manager
OK?
Wait for signature
Yes
No
Manager inspects TA
Travel writes tickets
Wait
Signs
To Travel Disbursing departments
Traveler fetches tickets, check, TA
Secretary gets tickets check
Completes TA
Travels
Wait
Disbursing writes check
5-16
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Exhibit 5-10
Flowchart Travel Authorization Process (cont)
B. Improved travel authorization process -- with
E-mail
Disbursing writes check
If yes, notifies traveler, Disbursing, Travel
dept.
Traveler types and sends E-mail memo to manager
To traveler
Some delay before manager responds
Travels
No
To traveler
Travel prints tickets
5-17
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Check Sheet Mishaps at Akron General
Frequency of Occurrence for Week...
III
II
I
IIII
Incorrect dose dispensed from pharmacy Verbal
order taken incorrectly Incorrect dose
ordered Dosage calculation error
I
II
I
II
IIII
I
I
I
I
5-18
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Exhibit 5-11
Histogram Ballroom Setup Time
17 Setups, November 1999
7
6
5
Numberofsetups
4
3
2
1
0
10
20
30
40
50
60
Time required(minutes)
5-19
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Pareto Chart Errors
100
65
60
55
50
45
40
35
50
Percent
30
25
20
15
10
5
0
Rawmaterials
Finalassembly
Sub-assembly
Delivery
Fabrication
Process stage
5-20
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Fishbone Chart - Truck Delivery Failures
ShippingDocuments
Trucking
Leave at wrong time
Packing list incorrect
Latest trafficand roadconditionsnot updated
Invoicemissing
Driver does not know route
Poor truckmaintenance
TruckDeliveryFailure
Wronginformation
No protectivepacking
Labelstuck onpoorly
Wrong container
Wrong label location
Quality incontainerincorrect
ContainerLabeling
Packing
5-21
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Where To from Here?

• Fine Grained Analysis
• Process Capability Analysis