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Quality Management

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Highest priority contributed ideas: ... features, such as leather interior. 3. Reliability ... Making sure a product or service is produced according to design ... – PowerPoint PPT presentation

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Title: Quality Management


1
Quality Management
HTM 302 Operations Management
  • Jim Hamerly, Ph.D.
  • jhamerly_at_csusm.edu

2
Quality Management
?
  • What does quality mean to you?

3
Quality Management
?
  • Is quality
  • Objective?
  • Subjective?
  • Both?

4
Quality Management
?
  • Does your expectation of quality depend on the
    product area?
  • Yes
  • No

5
Quality Management
?
  • Who decides what is quality?
  • Manufacturer?
  • Consumer?

6
Quality Management
?
  • Higher Quality often comes at an
  • increased cost
  • Do you always have minimum quality standards?
  • Yes
  • No

7
Quality Management
?
  • How much more are you willing to pay for a
  • 20 increase in quality?
  • 10
  • 20
  • 50
  • 100

8
Quality Management
?
  • When you spend more for quality, do you
  • think you get more?
  • Yes, always
  • Yes, often
  • Rarely
  • Never

9
What Is Quality?
I dont know what it is, but Ill know it when I
see it
10
A recent customer experience
11
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12
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13
Dells Idea Storm
  • Embracing social software by providing a
  • public and transparent feedback-loop
  • Highest priority contributed ideas
  • Organize the sales pages by need, not product
    line (company's shopping experience is all about
    Dell, and not the user )
  • Option to pre-install Linux instead of Windows
  • Option to pre-install Open Office instead of
    Microsoft Office
  • Option of no extra software, trial-ware
  • Own the "green market
  • No overseas call centers

14
Objectives
  • Definition of Quality
  • Total Quality Management (TQM)
  • Role of employees in Quality Improvement
  • Strategic Implications of TQM
  • Six Sigma
  • ISO 9000

15
Meaning of Quality
  • Websters Dictionary
  • degree of excellence of a thing
  • American Society for Quality
  • totality of features and characteristics that
    satisfy needs

16
Quality Perspectives
  • Are the perspectives the same?
  • Should they be?

Q
Consumer
Producer
Product or Service
17
Meaning of Quality Consumers Perspective
  • Fitness for use
  • how well product or service does what it is
    supposed to
  • Quality of design
  • designing quality characteristics into a product
    or service
  • A Honda and a Mercedes
  • may be equally fit for
  • use, but with different
  • design dimensions

18
Another way of thinking about Quality
  • Three categories of satisfaction
  • Basic or expected attributes
  • Performance attributes
  • Surprise and delight attributes

19
Customer Satisfaction as an attribute of Quality
  • Categories of satisfaction cell phones
  • Basic or expected attributes
  • widespread service
  • good voice quality
  • Performance attributes
  • Good user interface
  • Camera
  • Surprise and delight attributes
  • Integrated phone book that works with all phones

20
Select a recent purchase
?
  • Write down
  • Basic or expected attributes
  • Performance attributes
  • Surprise and delight attributes

21
Customer Satisfaction as an attribute of Quality
?
  • Categories of satisfaction Starbucks on campus
  • Basic or expected attributes
  • Performance attributes
  • Surprise and delight attributes

22
Customer Satisfaction as an attribute of Quality
?
  • Categories of satisfaction Class registration
  • Basic or expected attributes
  • Performance attributes
  • Surprise and delight attributes

23
Customer Satisfaction as an attribute of Quality
?
  • Categories of satisfaction CSUSM Parking
  • Basic or expected attributes
  • Performance attributes
  • Surprise and delight attributes

24
Customer Satisfaction as an attribute of Quality
?
  • Categories of satisfaction HTM302 course
  • Basic or expected attributes
  • Performance attributes
  • Surprise and delight attributes

25
Customer Satisfaction as an attribute of Quality
?
  • Categories of satisfaction school IT services
  • Basic or expected attributes
  • Performance attributes
  • Surprise and delight attributes

26
Dimensions of QualityManufactured Products
  • 1. Performance
  • basic operating characteristics of a product how
    well a car accelerates, brakes, handles, or its
    gas mileage
  • 2. Features
  • extra items added to basic features, such as
    leather interior
  • 3. Reliability
  • probability that a product will operate properly
    within an expected time frame that is, the car
    will work without repair for about 100,000
    miles
  • Adapted from What does quality really mean?,
    Sloan Management Review 26(11984)25-43.

27
Dimensions of QualityManufactured Products
(cont.)
  • 4. Conformance
  • degree to which a product meets preestablished
    standards (e.g. gas economy, crash tests, etc.)
  • 5. Durability
  • how long product lasts before replacement
  • 6. Serviceability
  • ease of getting repairs, speed of repairs,
    courtesy and competence of repair person

28
Dimensions of QualityManufactured Products
(cont.)
  • 7. Aesthetics
  • how a product looks, feels, sounds, smells, or
    tastes
  • 8. Safety
  • assurance that customer will not suffer injury
    or harm from a product an especially important
    consideration for automobiles
  • 9. Perceptions
  • subjective perceptions based on brand name,
    advertising, and the like

29
Dimensions of Quality Service
  • 1. Timeliness
  • How long must a customer wait for service, and is
    it completed on time?
  • 2. Completeness
  • Is everything customer asked for provided?

30
Dimensions of Quality Service (cont.)
  • 3. Courtesy
  • How are customers treated by employees?
  • 4. Consistency
  • Is the same level of service provided to each
    customer each time?

31
Dimensions of Quality Service (cont.)
  • 5. Accessibility and convenience
  • How easy is it to obtain service?
  • Does a service representative answer you calls
    quickly?
  • 6. Accuracy
  • Is the service performed right every time?
  • Is your bank or credit card statement correct
    every month?
  • 7. Responsiveness
  • How well does the company react to unusual
    situations?
  • How well is a telephone operator able to respond
    to a customers questions?

32
Meaning of Quality Producers Perspective
  • Quality of Conformance
  • Making sure a product or service is produced
    according to design
  • if new tires do not conform to specifications,
    they wobble
  • if a hotel room is not clean when a guest checks
    in, the hotel is not functioning according to
    specifications of its design

33
Meaning of Quality A Final Perspective
  • Consumers and producers perspectives depend on
    each other
  • Consumers perspective dominated by PRICE
  • Producers perspective dominated by COST
  • Consumers view must reign supreme

34
TQM Throughout the Organization
  • Everyone owns Quality
  • Marketing, sales, research
  • Engineering
  • Purchasing
  • Human resources
  • Management
  • Packing, storing, shipping
  • After-sale support
  • As well as External Suppliers

35
Cost of Quality
  • Cost of achieving good quality
  • Prevention
  • Planning, Product design, Process, Training,
    Information
  • Appraisal
  • Inspection and testing, Test equipment, Operator

36
Cost of Quality
  • Cost of poor quality
  • Internal failure costs
  • Scrap, Rework, Process failure, Process downtime,
    Price-downgrading
  • External failure costs
  • Customer complaints, Product return, Warranty,
    Product liability, Lost sales

37
QualityCost Relationship
  • Increased prevention costs lead to decreased
    failure costs
  • Improved quality leads to increased sales and
    market share
  • Quality improvement at the design stage
  • Higher quality products can command higher prices

38
Profitability
  • Deming Prize winners showed higher than average
    results on financial performance indicators
  • Baldrige Award winners consistently exceed
    industry averages on financial performance
  • Quality leads to improved profitability and ROI
  • Quality is ... a profit--maker
  • In the long run, quality and profitability are
    closely related

39
Quality and Productivity
40
Seven Quality Control Tools
  • Pareto Analysis
  • Flow Chart
  • Control Chart
  • Cause-and-Effect Diagram
  • Check Sheet
  • Histogram
  • Scatter Diagram

41
Pareto Analysis
Analyze the cause of each failure and accumulate
totals
42
Pareto Chart
43
Pareto Analysis
?
  • Brainstorm with the class to identify the top
    five reasons a given class might be less than
    interesting, based on previous experience
  • Determine the ranking of each reason via a class
    vote

44
Flow Chart
Quality Inspections at each process input
output
45
Control Chart
24
21
18
15
Number of defects
12
9
6
3
2
4
6
8
10
12
14
16
Sample number
46
Cause-and-Effect Diagram
47
American Customer Satisfaction Index
  • Measures customer satisfaction
  • Established in 1994
  • Web site http//www.theacsi.org/

48
Six Sigma
  • A process for developing and delivering near
    perfect products and services pioneered by
    Motorola in 1986
  • Measure of how much a process deviates from
    perfection 3.4 defects per million
  • Champion - executive responsible for project
    success

49
ISO 9000
  • A set of procedures and policies for
    international quality certification of suppliers
  • ISO 90002000
  • Quality Management SystemsFundamentals and
    Vocabulary
  • defines fundamental terms and definitions used
    in ISO 9000 family
  • ISO 90012000
  • Quality Management SystemsRequirements
  • standard to assess ability to achieve customer
    satisfaction
  • ISO 90042000
  • Quality Management SystemsGuidelines for
    Performance Improvements
  • guidance to a company for continual improvement
    of its quality-management system

50
Informal feedback
  • Write a 2 minute journal to be handed in
    immediately
  • The journal should briefly summarize
  • Areas not understood or requiring clarification
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