Ch. 14: Quality Management

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Ch. 14 Quality Management

• What is Quality?
• Why is quality important?
• How do we achieve good quality?

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From the News

• Whirlpool Corporation recognized Dofasco with
  prestigious quality performance award.

• The quality of our product is a result of the
  innovation, teamwork and dedication of all
  Dofasco employees. By adding value for our
  customers, we are able to differentiate ourselves
  from our competitors and position both Dofasco
  and our customers for success.
  Allen Root, VP Commercial

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Background

• Quality a competitive edge
• Quality a key strategic decision

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What Is Quality?
Quality is fitness for use Example (details in
class)
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Why is Quality Important?

• Accumulation of wealth
• Necessity
• Strategic choice (TQM)

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Improving Quality

• Quality Circle
• PDCA cycle
• Poka-yoke
• Partnering
• Employee involvement
• SPC

• Quality analysis
• Identify quality problem and causes
• Fix and control

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The Quality Circle Process
Figure 14.3
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The Deming Wheel(or PDCA Cycle)
Figure 14.2
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Poka-yoke

• Simple procedure or equipment to prevent defects
• Try it for every product (process)
• Examples
• Components in kits
• 3.5 inch diskette
• File cabinets
• Car fuelling

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TQM and External Suppliers

• Support of suppliers required to satisfy customer
  expectations
• Single-sourcing
• Partnering
• Suppliers may be required to adopt quality
  programs or meet specific standards

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Employees and Quality Improvement

• Employee involvement
• Quality circles
• Process improvement teams
• Employee suggestions

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Quality Analysis Cost

• Cost of achieving good quality
• Prevention
• Appraisal
• Cost of poor quality
• Internal failure costs
• External failure costs
• Example (handout in class)

Cost
defects
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Quality Analysis Yield
Yield (total input) ( good units) (total
input) (1 - good units) ( reworked)
Y (I) (G) (I) (1 - G) (R)
where Y yield I number units started in
production G percentage good units R
percentage of defective units reworked
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Product Cost
where Kd direct manufacturing cost per
unit I input Kr rework cost per unit R
reworked units Y yield
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Multistage Product Yield
Y (I) (g1)(g2)...(gn) where I input
batch size gi percent good at stage i
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Multistage Process Yield
Start with 100 motors
Y (I) (g1)(g2)...(gn)
(100)(0.93)(0.95)(0.97)(0.92) Y 78.8 motors
Example 14.4
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Diagnosis Pareto Chart
Causes of poor quality
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Diagnosis Fishbone diagram
Machines
IS
Human
Slow processing
Aircraft late
Gate agent slow
Too few agents
Link with travel agents
Agent training
Data mining
Plane departs late
Late cleaners
Departure announcement
Weather
Late fuel
Delayed checkin procedure
Air traffic
Late luggage
Acceptance of Late passengers
Late food service
customs
Process
Environment
Materials
Figure 14.6
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Fix and Control