Slide 1OutlineOutline – ContinuedSlide 4Slide 5Slide 6Learning ObjectivesManaging Quality Provides a Competitive AdvantageQuality and StrategyTwo Ways Quality Improves ProfitabilityThe Flow of ActivitiesDefining QualityDifferent ViewsImplications of QualityKey Dimensions of QualityMalcom Baldrige National Quality AwardBaldrige CriteriaTakumiCosts of QualitySlide 20Leaders in QualityEthics and Quality ManagementInternational Quality StandardsISO 14000 Environmental StandardTQMDeming’s Fourteen PointsSlide 27Seven Concepts of TQMContinuous ImprovementShewhart’s PDCA ModelSix SigmaSlide 32Six Sigma ProgramSlide 34Six Sigma ImplementationEmployee EmpowermentQuality CirclesBenchmarkingBenchmarking Factors for Web SitesBest Practices for Resolving Customer ComplaintsJust-in-Time (JIT)Slide 42Just-In-Time (JIT) ExampleSlide 44Taguchi ConceptsQuality RobustnessQuality Loss FunctionSlide 48Tools of TQMSeven Tools of TQMSlide 51Slide 52Slide 53Slide 54Slide 55Slide 56Cause-and-Effect DiagramsPareto ChartsFlow ChartsStatistical Process Control (SPC)An SPC ChartInspectionWhen and Where to InspectSlide 64Source InspectionService Industry InspectionSlide 67Slide 68Slide 69Slide 70Attributes Versus VariablesTQM In ServicesService QualityService Specifications at UPSDeterminants of Service QualityService Recovery Strategy© 2008 Prentice Hall, Inc. 6 – 1Operations ManagementOperations ManagementChapter 6 – Chapter 6 – Managing QualityManaging QualityPowerPoint presentation to accompany PowerPoint presentation to accompany Heizer/Render Heizer/Render Principles of Operations Management, 7ePrinciples of Operations Management, 7eOperations Management, 9e Operations Management, 9e© 2008 Prentice Hall, Inc. 6 – 2OutlineOutlineGlobal Company Profile: Arnold Global Company Profile: Arnold Palmer HospitalPalmer HospitalQuality and StrategyQuality and StrategyDefining QualityDefining QualityImplications of QualityImplications of QualityMalcolm Baldrige National Quality Malcolm Baldrige National Quality AwardAwardCost of Quality (COQ)Cost of Quality (COQ)Ethics and Quality ManagementEthics and Quality Management© 2008 Prentice Hall, Inc. 6 – 3Outline – ContinuedOutline – ContinuedInternational Quality StandardsInternational Quality StandardsISO 9000ISO 9000ISO14000ISO14000© 2008 Prentice Hall, Inc. 6 – 4Outline – ContinuedOutline – ContinuedTotal Quality ManagementTotal Quality ManagementContinuous ImprovementContinuous ImprovementSix SigmaSix SigmaEmployee EmpowermentEmployee EmpowermentBenchmarkingBenchmarkingJust-in-Time (JIT)Just-in-Time (JIT)Taguchi ConceptsTaguchi ConceptsKnowledge of TQM ToolsKnowledge of TQM Tools© 2008 Prentice Hall, Inc. 6 – 5Outline – ContinuedOutline – ContinuedTools of TQMTools of TQMCheck SheetsCheck SheetsScatter Diagrams Scatter Diagrams Cause-and-Effect DiagramsCause-and-Effect DiagramsPareto ChartsPareto ChartsFlowchartsFlowchartsHistogramsHistogramsStatistical Process Control (SPC)Statistical Process Control (SPC)© 2008 Prentice Hall, Inc. 6 – 6Outline – ContinuedOutline – ContinuedThe Role of InspectionThe Role of InspectionWhen and Where to InspectWhen and Where to InspectSource InspectionSource InspectionService Industry InspectionService Industry InspectionInspection of Attributes versus Inspection of Attributes versus VariablesVariablesTQM in ServicesTQM in Services© 2008 Prentice Hall, Inc. 6 – 7Learning ObjectivesLearning ObjectivesWhen you complete this chapter you When you complete this chapter you should be able to:should be able to:Define quality and TQMDefine quality and TQMDescribe the ISO international Describe the ISO international quality standardsquality standardsExplain Six SigmaExplain Six SigmaExplain how benchmarking is used Explain how benchmarking is used Explain quality robust products and Explain quality robust products and Taguchi conceptsTaguchi conceptsUse the seven tools of TQMUse the seven tools of TQM© 2008 Prentice Hall, Inc. 6 – 8Managing Quality Provides a Managing Quality Provides a Competitive AdvantageCompetitive AdvantageArnold Palmer HospitalArnold Palmer HospitalDeliver over 13,000 babies annuallyDeliver over 13,000 babies annuallyVirtually every type of quality tool is Virtually every type of quality tool is employedemployedContinuous improvementContinuous improvementEmployee empowermentEmployee empowermentBenchmarkingBenchmarkingJust-in-timeJust-in-timeQuality toolsQuality tools© 2008 Prentice Hall, Inc. 6 – 9Quality and StrategyQuality and StrategyManaging quality supports Managing quality supports differentiation, low cost, and differentiation, low cost, and response strategiesresponse strategiesQuality helps firms increase Quality helps firms increase sales and reduce costssales and reduce costsBuilding a quality organization is Building a quality organization is a demanding taska demanding task© 2008 Prentice Hall, Inc. 6 – 10Two Ways Quality Two Ways Quality Improves ProfitabilityImproves ProfitabilityImproved Improved QualityQualityIncreased Increased ProfitsProfitsIncreased productivityLower rework and scrap costsLower warranty costsReduced Costs viaImproved responseFlexible pricingImproved reputationSales Gains viaFigure 6.1Figure 6.1© 2008 Prentice Hall, Inc. 6 – 11The Flow of ActivitiesThe Flow of ActivitiesOrganizational PracticesLeadership, Mission statement, Effective operating procedures, Staff support, TrainingYields: What is important and what is to beaccomplishedQuality PrinciplesCustomer focus, Continuous improvement, Benchmarking, Just-in-time, Tools of TQMYields: How to do what is important and to beaccomplishedEmployee FulfillmentEmpowerment, Organizational commitmentYields: Employee attitudes that can accomplishwhat is importantCustomer SatisfactionWinning orders, Repeat customersYields: An effective organization witha competitive advantageFigure 6.2Figure 6.2© 2008 Prentice Hall, Inc. 6 – 12Defining QualityDefining QualityThe totality of features and The totality of features and characteristics of a product or characteristics of a product or service that bears on its ability to service that bears on its ability to satisfy stated or implied needssatisfy stated or implied needsAmerican Society for QualityAmerican Society for Quality© 2008 Prentice Hall, Inc. 6 – 13Different
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