Service
- can be defined as "any primary or complementary activity that does not directly produce a physical product - that is, the non-goods part of the transaction between buyer (customer) and seller (provider).
JCAHO
- - Joint Commission on Accreditation of Healthcare Organizations was created in 1951 and is the principal accreditation agency for health care. Mission - "To Continuously Improve the safety and quality of care provided to the public through the provision
NCQA
- National Committee for Quality Assurance - a private, not-for-profit organization dedicated to improving the quality of health care.
AQIP
- - Academic Quality Improvement Project - Focuses on institutional practices for helping students learn, accomplishing other distinct objectives, understanding other distinct objectives, understanding student and stakeholder needs, valuing people, leadin
Deming Philosophy
- recognized the importance of viewing management processes statistically. Preached importance of top management leadership, customer/supplier partnerships and continuous improvement in product development and manufacturing processes. Sees variation as th
Juran Philosophy
- Did most of the writing, editing and publishing of the Quality Control Handbook. Unlike Deming, he did not propose a major cultural change in the organization; instead, he sought to improve quality by working within the system familiar to managers. Beli
Crosby Philosophy
- Wrote "Quality is Free". Philosophy is embodied in what he calls the "Absolutes of Quality Management" and "Basic Elements of Improvement".
- Absolutes of Quality Management include:
o 1. Quality means conformance to requirements, not elegance
o 2. Ther
A.V. Feigenbaum
- - Coined the phrase "total quality control" defined as "...an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service
Genichi Taguchi
- His philosophy was strongly advocated by Deming - explained the economic value of reducing variation. Maintained that the manufacturing-based definition of quality as conformance to specs limits is inherently flawed. Costs do not depend on the actual va
Two frameworks with mst impact on quality management practices worldwide
- US Malcolm Baldrige National Quality Award and International ISO 9000 certification process.
ISO 9000:2000
- - International Organization for Standardization (IOS) founded in 1946 and adopted a series of written quality standards in 1987. Revised most recently called ISO 9000:2000 family of standards. ISO defines quality system standards based on the premise t
ISO 9000:2000 Quality Management Principles:
-
o 1. Customer focus
o 2. Leadership
o 3. Involvement of People
o 4. Process Approach
o 5. System Approach to Management
o 6. Continual Improvement
o 7. Factual Approach to Decision Making
o 8. Mutually Beneficial Supplier Relationships
SIX SIGMA
- - "six sigma" refers to the statistical concept, while "Six Sigma" refers to the overall approach and philosophy. Based on a statistical measure that equates to 3.4 or fewer errors or defects per million opportunities. It can be described as a business
Leadership
- The ability to positively influence people and systems under one's authority to have a meaningful impact and achieve important results.
Strategic Planning
- the process of envisioning the organization's future and developing the necessary goals, objectives, and action plans to achieve that future. Quality is the key element.
Strategy
- The pattern of decisions that determines and reveals a company's goals, policies, and plans to meet the needs of its stakeholders. Through an effective strategy, a business creates a sustainable competitive advantage.
Benchmarking
- the search for best practices in any company, any industry, anywhere in the world. "measuring your performance against that of best in class companies; determining how the best in class achieve those performance levels; and using the information as a ba
Project Management
- all activities associated with planning, scheduling and controlling projects.
4 Key Skills of PMs - bias toward task completion, technical and administrative credibility, interpersonal and political sensitivity and leadership ability
Project Quality Assurance
- "customer relationship management", requires communication, interpersonal and diplomacy skills. Manage upward. PQA allows the PM to estimate how successfully the final deliverable will perform, not just whether it will be on time and below budgeted cost
Project Quality Control
- involves systematically reviewing the time, resources, cost and performance measures as the project is being carried out. Typical project control system includes: project plan covering expected scope, ensuring bills are paid, ensuring team members are t
Kaizen
- Japanese word meaning gradual and orderly continuous improvement. Focuses on small, gradual and frequent improvements over the long term with minimum financial investment and with participation by everyone in the organization. 3 things required for it t
Top-down
- projects generally tied to business strategy and are aligned with customer needs. Weakness is they are often too broad in scope to be completed in a timely manner. Top managers may under-estimate the cost and overestimate the capabilities of the team or
Bottom-up
- Black belts (orMBBs) choose the projects that are well-suited to the capabilities of teams. Drawback is that the projects may not be tied closely to strategic concerns of top management, thus receiving little support and low recognition from the top.
DMAIC Methodology:
Define, Measure, Analyze, Improve, Control. Emphasizes customer requirements and the use of statistical tools and methodologies.
Application of Six Sigma in Services
- examine 4 key measures of performance:
- Accuracy
- Cycle time
- Cost
- Customer Satisfaction
Lean is focused on efficiency
Six Sigma is focused on effectiveness
Statistics
- a science concerned with the "collection, organization, analysis, interpretation, and presentation of data".
Statistical Thinking - a philosophy of learning and action based on these principles:
1. All work occurs in a system of interconnected processes
Design for Six Sigma (DFSS)
- represents a set of tools and methodologies used in the product development process for ensuring that goods and services will meet customer needs and achieve performance objectives, and that the processes used to make and deliver them achieve six sigma
House of Quality
- Consists of 6 basic steps: 1) Identify customer requirements 2) Identify technical requirements 3) Relate the customer requirements to the technical requirements 4) Conduct an evaluation of competing products or services 5) Evaluate technical requiremen
Deming cycle
- a simple methodology for improvement that was strongly promoted by W. Edwards Deming. Composed of four stages; 1) Plan 2) Do 3) Study 4) Act. It focuses on both short-term continuous improvement and long-term organizational learning.
Run Chart
- a line graph in which data are plotted over time. Vertical axis represents a measurement and horizontal axis is the time scale. They show the performance and variation of a process or some quality or productivity indicator over time in a graphical fashi
Control Chart
- a run chart to which two horizontal lines, called control limits, are added: the upper control limit (UCL) and lower control limit (LCL). Control charts were first proposed by Walter Shewhart at Bell Laboratories in the 1920s and were strongly advocated
Check Sheets
- use simple columnar or tabular forms to record data. The results collected may be interpreted on the form directly without additional processing
Histograms
- a basic statistical tool that graphically shows the frequency or number or observations of a particular value or within a specified group.
Pareto Diagrams
- a histogram of the data from the largest frequency to the smallest. Help analysts to progressively focus in on specific problems.
Pareto distribution - in one in which the characteristics observed are ordered from largest frequency to smallest.
Pareto a
Cause and Effect Diagrams
- assists the generation of ideas for problem causes and, in turn, serves as a basis for solution finding. A simple graphical method for presenting a chain of causes and effects and for sorting out causes and organizing relationships between variables. Ka
Kaizen Blitz
- teams are comprised of employees from all areas involved in the process who understand it and can implement changes on the spot. An intense and rapid improvement process in which a team or a department throws all its resources into an improvement projec
Poka-Yoke (Mistake-Proofing)
- an approach for mistake-proofing processes using automatic devices or methods to avoid simple human error. Developed and refined in the early 1960s by Shigeo Shingo, a Japanese manufacturing engineer who developed the Toyota production system. Focuses o
Statistical Process Control (SPC)
- a methodology for monitoring a process to identify special causes of variation and signaling the need to take corrective action when it is appropriate. When special causes are present, the process is deemed to be out of control. If the variation in the
Control Chart 3 basic applications
- 1) to establish a state of statistical control, 2) to monitor a process and signal when the process goes out of control, and 3) to determine process capability.
x-chart - used to monitor the centering of the process
R-chart - used to monitor the variati
Cost of Quality (COQ)
The cost of doing things wrong- that is, the price of nonconformance.
Definition of Quality
The ability of a product or service to meet customer needs.
Plan-Do-Check-Act
Developed by Walter Shewhart as his version of Continuous Improvement.
Transportation Model
Objective is to determine the best pattern of shipments from several points of supply (sources) to several points of demand (destinations) so as to minimize total production and transportation costs.
Location Strategies
Factors:
1. Purchasing power of the customer-drawing area.
2. Service and image compatibility with demographics of the customer-drawing area.
3. Competition in the area.
4. Quality of the competition.
5. Uniqueness of the firm's and competitors' locations