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Managing Quality Outlines ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why Study Quality? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Defining Quality ,[object Object],[object Object],[object Object],[object Object],[object Object]
Purchasing Qualified Tires for UPS Delivery Vehicles  ,[object Object],[object Object],[object Object],[object Object]
Dimensions of Product Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Dimensions of Product Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Dimensions of Service Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Importance of Quality ,[object Object],[object Object],[object Object],Increased Profits Lower Costs Productivity Rework/Scrap Warranty Market Gains Reputation Volume Price Improved Quality
Description by Specification ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Alternatives to Specification ,[object Object],[object Object],[object Object],[object Object],[object Object]
ISO 9000 Quality Standards ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How to Manage Quality? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Total Quality Management (TQM) Principles ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
To Make the Quality Focus Work ,[object Object],[object Object],[object Object],[object Object]
Flow of Activities Necessary to Achieve Total Quality Management ,[object Object],[object Object],[object Object],[object Object]
Organizational Practices ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Benchmarking the quality of Potential Suppliers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Employee and Supplier Fulfillment ,[object Object],[object Object],[object Object],[object Object],[object Object]
Quality Circle and Six-Sigma Team ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 1995 Corel Corp.
The Baldrige National Quality Award and Deming Prize ,[object Object],[object Object],[object Object]
Deming’s Points for Implementing Quality Improvement ,[object Object],[object Object],[object Object],[object Object]
Deming’s Points for Implementing Quality Improvement ,[object Object],[object Object],[object Object],[object Object],[object Object]
Shewhart’s PDCA Model 4.Act 1.Plan 3.Check 2.Do Identify the improvement and make a plan Test the plan Is the plan working Implement the plan
Exam Information ,[object Object],[object Object]
Cost of Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Traditional View of Quality-Cost Trade offs Low correction cost High detection cost High prevention cost High correction cost Low detection cost Low prevention cost Optimum Quality % of defects Cost
Taguchi Techniques and Quality Loss Function ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Target-Oriented Quality ,[object Object],Japanese factory (Target-oriented) U.S. factory (Conformance-oriented)
Quality Loss Function; Distribution of Products Produced Low loss High loss Frequency Lower Target Upper Specification Loss (to producing organization, customer, and society) Quality Loss Function (a) Unacceptable Poor Fair Good Best Target-oriented quality yields more product in the “best” category Target-oriented quality brings products toward the target value Conformance-oriented quality keeps product within three standard deviations Distribution of specifications for product produced (b)
Quality Loss Function Graph ,[object Object],Lower (upper) specification limit Measurement Greater deviation, more people are dissatisfied, higher cost
[object Object],[object Object],[object Object],Quality Loss Function Example © 1984-1994 T/Maker Co.
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Quality Loss Function Solution
[object Object],[object Object],Quality Robustness © 1984-1994 T/Maker Co. © 1995 Corel Corp .
Assignment and Case Discussion for Managing Quality ,[object Object],[object Object]
Tools of TQM and Continuous Improvement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Flow Chart (Process Diagram)
Flow Charts (Chicken Processing Plant) Packing station Weighting & labeling Quick freeze (60 min) Storage  (4 to 6 hrs) Shipping dock
Check Sheets ,[object Object],[object Object],[object Object]
Check Sheet Types of Error ------------------------------------------------------------------- Month Broken Wrong Mixed Contamination package label items --------------------------------------------------------------------------------------------- Jan 7 5 3 0 Feb 5 7 4 0 Mar 9 3 2 0 Apr 4 5 3 3 May 5 7 2 7 Jun 2 5 4 6 ---------------------------------------------------------------------------------------------- Total Percentage
Pareto Charts ,[object Object],[object Object],[object Object],[object Object]
Pareto Analysis of Production Process (Total Defects = 44)
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Cause and Effect Diagram
Cause and Effect Diagram Example Too many  defects Problem
Cause and Effect Diagram Example Method Manpower Material Machinery Too many  defects Main Cause Main Cause
Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many  defects Sub-Cause
Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many  defects Tired Old Slow
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Statistical Process Control (SPC)
Process Control Chart
Patterns to Look for in  Control Charts
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Inspection
When and Where to Inspect (Aided by Flow Chart) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Routine Inspection vs. Probing Inspection ,[object Object],[object Object],[object Object]
Inspection Points in Services Bank Teller stations Loan  accounts Checking accounts Shortages, courtesy, speed, accuracy Collateral, proper credit checks, rates, terms of loans, default rates, loan rates Accuracy, speed of entry, rate of overdraws Organization Some Points of Inspection Issues to Consider
Inspection Points in Services Retail store Stockrooms Display areas Sales counters Clean, uncluttered, organized, level of stockouts, amply supply, rotation of goods Attractive, well-organized, stocked, visible goods, good lighting Neat, courteous knowledgeable personnel; waiting time; accuracy in credit checking and sales entry Organization Some Points of Inspection Issues to Consider
Inspection Points in Services Restaurant Kitchen Cashier station Dining areas Clean, proper storage, unadulterated food, health regulations observed, well-organized Speed, accuracy, appearance Clean, comfortable, regular monitoring by personnel,  Organization Some Points of Inspection Issues to Consider
Luckway Supermarket ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Southwestern University (B) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Southwestern University (B) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Survey Data vs. Open-Ended Comments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Analyze Survey Data
Ranking      Speed of Service 1.96 Poor   Seating 2.14     Printed Program 2.34     Concession Prices 2.36     Traffic 2.41     Season Ticket Plans 2.78     Entertainment 3.23     Parking 3.28     Ticket Pricing 3.36     Items in Weighted Descending Order     Food Selection 3.44 Good
Issues for Analyzing Open-Ended Comments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Categorize Open-Ended Comments
Ranking (ABC Analysis)     Speed of Service 1.96 Poor   Seating 2.14     Printed Program 2.34     Concession Prices 2.36     Traffic 2.41     Season Ticket Plans 2.78     Entertainment 3.23     Parking 3.28     Ticket Pricing 3.36     Items in Descending Order     Food Selection 3.44 Good
Pareto Chart 100% 70% 40% 10%
Cause and Effect Diagram Internal Facility Manpower External Facility Food Stands Too many  complains Main Cause Main Cause
Other Concerns about Data Collection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Managing Quality

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  • 23. Shewhart’s PDCA Model 4.Act 1.Plan 3.Check 2.Do Identify the improvement and make a plan Test the plan Is the plan working Implement the plan
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  • 29. Traditional View of Quality-Cost Trade offs Low correction cost High detection cost High prevention cost High correction cost Low detection cost Low prevention cost Optimum Quality % of defects Cost
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  • 32. Quality Loss Function; Distribution of Products Produced Low loss High loss Frequency Lower Target Upper Specification Loss (to producing organization, customer, and society) Quality Loss Function (a) Unacceptable Poor Fair Good Best Target-oriented quality yields more product in the “best” category Target-oriented quality brings products toward the target value Conformance-oriented quality keeps product within three standard deviations Distribution of specifications for product produced (b)
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  • 40. Flow Charts (Chicken Processing Plant) Packing station Weighting & labeling Quick freeze (60 min) Storage (4 to 6 hrs) Shipping dock
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  • 42. Check Sheet Types of Error ------------------------------------------------------------------- Month Broken Wrong Mixed Contamination package label items --------------------------------------------------------------------------------------------- Jan 7 5 3 0 Feb 5 7 4 0 Mar 9 3 2 0 Apr 4 5 3 3 May 5 7 2 7 Jun 2 5 4 6 ---------------------------------------------------------------------------------------------- Total Percentage
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  • 44. Pareto Analysis of Production Process (Total Defects = 44)
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  • 46. Cause and Effect Diagram Example Too many defects Problem
  • 47. Cause and Effect Diagram Example Method Manpower Material Machinery Too many defects Main Cause Main Cause
  • 48. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many defects Sub-Cause
  • 49. Cause and Effect Diagram Example Method Manpower Material Machinery Drill Over Time Steel Wood Lathe Too many defects Tired Old Slow
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  • 52. Patterns to Look for in Control Charts
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  • 56. Inspection Points in Services Bank Teller stations Loan accounts Checking accounts Shortages, courtesy, speed, accuracy Collateral, proper credit checks, rates, terms of loans, default rates, loan rates Accuracy, speed of entry, rate of overdraws Organization Some Points of Inspection Issues to Consider
  • 57. Inspection Points in Services Retail store Stockrooms Display areas Sales counters Clean, uncluttered, organized, level of stockouts, amply supply, rotation of goods Attractive, well-organized, stocked, visible goods, good lighting Neat, courteous knowledgeable personnel; waiting time; accuracy in credit checking and sales entry Organization Some Points of Inspection Issues to Consider
  • 58. Inspection Points in Services Restaurant Kitchen Cashier station Dining areas Clean, proper storage, unadulterated food, health regulations observed, well-organized Speed, accuracy, appearance Clean, comfortable, regular monitoring by personnel, Organization Some Points of Inspection Issues to Consider
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  • 64. Ranking     Speed of Service 1.96 Poor   Seating 2.14     Printed Program 2.34     Concession Prices 2.36     Traffic 2.41     Season Ticket Plans 2.78     Entertainment 3.23     Parking 3.28     Ticket Pricing 3.36     Items in Weighted Descending Order     Food Selection 3.44 Good
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  • 67. Ranking (ABC Analysis)     Speed of Service 1.96 Poor   Seating 2.14     Printed Program 2.34     Concession Prices 2.36     Traffic 2.41     Season Ticket Plans 2.78     Entertainment 3.23     Parking 3.28     Ticket Pricing 3.36     Items in Descending Order     Food Selection 3.44 Good
  • 68. Pareto Chart 100% 70% 40% 10%
  • 69. Cause and Effect Diagram Internal Facility Manpower External Facility Food Stands Too many complains Main Cause Main Cause
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Editor's Notes

  1. Other methods such as qualitative and associative forecasting are also relevant.