Operations Management Chapter 6

quality

ability of a product or service to meet customer needs

ISO 9000

set of quality standards developed by the international organization for standardization

cost of quality (COQ)

the cost of doing things wrong-that is, the price of nonconformance

Total quality management (TQM)

management of an entire organization so that it excels in all aspects of the products and services that are important to the customer

PDCA

continuous improvement model of plan, do, check, act

Six sigma

a program to save time, improve quality and lower costs

employee empowerment

Enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization

quality circle

team of employees who meet periodically to discuss ways of improving work quality

quality loss function (QLF)

a mathematical function that identifies all costs connected with poor quality and shows how these costs increase as product quality moves from what the customer wants

target-oriented quality

A philosophy of continuous improvement to bring a product exactly on target.

cause-and-effect diagram

schematic technique used to discover possible locations of quality problems

Pareto charts

a graphic way of classifying problems by their level of importance, often referred to as the 80 to 20 rule

flowcharts

Block diagrams that graphically describe a process or system

statistical process control (SPC)

a process used to monitor standards, make measurements, and take corrective action as a product or service is being produced

control charts

graphic presentations of process data over time, with predetermined control limits

inspection

means of ensuring that an operation is producing at the quality level expected

source inspection

controlling or monitoring at the point of production or purchase at the source ( people at source do inspection)

poka-yoke

Literally translated, "foolproof"; it has come to mean a device or technique that ensures the pro- duction of a good unit every time.

checklist

type of polka-yoke that lists the steps needed to ensure consistency and completeness in a task

attribute inspection

an inspection that classifies items as being either good or defective

variable inspection

classifications of inspected items as falling on a continuum scale, such as dimension or strength

service recovery

training and empowering frontline workers to solve a problem immediately

3 approaches to the definition of quality

1. user based
2. manufacturing based
3. product based
-if quality is not there, company reputation can be damaged
-global implications

quality leaders

1. W.Edwards Deming- introduced plan, do, check, act (PDCA)= in order to focus on quality there must be a process
2. Philip B. Crosby- zero defects = continue to work on quality to make sure there are no defects
3. Armand Feigenbaum- quality begins at the

quality management recognition (4 awards)

-Malcolm baldridge national quality award
-the deming prize
-ISO 9000
-ISO 14000

Malcom Baldridge national quality award

award recognizes companies focused on quality (highest level of national quality to receive for US company) that only 2 manufacturers, 2 small businesses, 2 services, 2 education and 2 health care receive

the deming prize

named after edward deming, established in 1951, anyone company can receive it, give by smart japanese people 1991 first US company won it called Florida Power and Light

ISO 9000 award

developed by international organizations for standardization- can be taken away if it is not up to standards

ISO 14000

focus on quality and service on the environment and sustainability

cost can be broken down into two categories

achieving
-prevention costs= quality planning, design costs/ planning, training costs, information costs
- appraisal costs= measuring, testing and analyzing
poor quality
-internal= generates scrap, rework, process failure, down time, price down grades
-ex

7 concepts of total quality management (TQM)

1. continuos improvement
2. 6 sigma
3. employee empowerment
4. benchmarking
5. JIT
6. Taguchi concept ( japanese version of TQM
7. knowledge of TQM tools

7 suggestive areas of where an when to inspect

1. at your supplier facility before it gets to the shipping dock
2. at your receiving dock
3. before costly or irreversible process
4. in-process inspection
5. final inspection
6. your shipping dock
7. at the point of customer contact

attributes v. variables

inspect both total quality management in services