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NU OPNS 430 - Process Quality and Improvement Module

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Slide 18 Dimensions of QualityQuality in Practice: 1. Elements of TQMSlide 4Malcolm Baldridge Award WinnersQuality in Practice: 3. ISO 9000 and 4. ?Costs of QualityComponents of QualitySlide 9Voice of the Customer: Quality Function DeploymentHouse of QualityLinked Houses From Customer To ManufacturingBenefits of QFDRobust Quality: Taguchi’s View of Cost of VariabilityQuality & the Voice of the Customer: Key Learning ObjectivesSlide 18Process CapabilityQuality Wireless (A): CapabilityQuality Wireless (A): CapabilityWhat is Process Improvement?Continuous Improvement: PDCA Cycle (Deming Wheel)Quality Wireless (A): Checking for ImprovementSlide 25Has Process Performance Changed? Quality Wireless (B)Slide 27Slide 28Statistical Process Control: Control ChartsVarious Patterns in Control ChartsCalibration versus Quality: Sharp shootersSPC – Quality Wireless (B)SPC – Quality Wireless (B)SPC – Setting Control LimitsControl Charts & Voice of the Process: Key Learning ObjectivesSlide 3699.9% SuppliersWhy 6-Sigma?Six Sigma: Core methodologySlide 40Magnitude of Difference Between Sigma LevelsWhy 6-Sigma?Slide 43Slide 44Slide 45Quality Performance at Flyrock: 2. Statistical Process ControlSlide 47Slide 48Slide 49Slide 50Slide 51Slide 52Slide 53Key Learning Objectives: Six SigmaSlide 1Operations/QualityProcess Quality & Improvement ModuleQuality & the Voice of the CustomerWhat is Quality?Quality Programs in practiceVoice of the CustomerProcess Capability and ImprovementProcess CapabilityChecking for Improvement: Quality WirelessControl Charts & Voice of the ProcessStatistical Process Control (SPC)Quality Wireless (B)Why 6-Sigma?Flyrock TiresSlide 2Operations/Quality8 Dimensions of QualityPerformanceFeaturesServiceabilityAestheticsPerceived QualityReliabilityConformanceDurabilityQ of designQ of process conformance to design = process capabilitySlide 3Operations/QualityQuality in Practice:1. Elements of TQMManagement by factCross-functional (process) approachCulture and leadership–Customer focus–Employee focus–High performance focusContinuous improvementBenchmarkingExternal alliances - the value chainSource: Eitan ZemelSlide 4Operations/Qualitywww.quality.nist.gov 1 Leadership 1102 Strategic Planning 80–Strategy Development Process3 Customer and Market Focus 804 Information and Analysis 805 Human Resource Development and Management 1006 Process Management 100–Product and Service Processes –Support Processes –Supplier and Partnering Processes7 Business Results 450•TOTAL POINTS 1000Quality in Practice:2. Malcolm Baldrige National Quality AwardSlide 5Operations/Quality2002 Motorola Commercial, Government & Industrial Solutions Sector (Manufacturing)SSM Health Care (Health care)Branch-Smith Printing Division (Small business)2001Clarke American Checks, Inc., San Antonio, Texas (manufacturing); Pal's Sudden Service, Kingsport, Tenn. (small business); Chugach School District, Anchorage, Alaska (education); Pearl River School District, Pearl River, N.Y. (education); University of Wisconsin-Stout, Menomonie, Wis. (education).2000 Dana Corporation-Spicer Driveshaft Division, Toledo, Ohio (manufacturing)KARLEE Company, Inc., Garland, Texas (manufacturing)Operations Management International, Inc., Greenwood Village, Colo. (service)Los Alamos National Bank, Los Alamos, N.M. (small business).1999 STMicroelectronics, Inc. - Region Americas (mfg) BI (service)The Ritz-Carlton Hotel Company, L.L.C. (service)Sunny Fresh Foods (small business) 1998 Boeing Airlift and Tanker Programs (mfg)Solar Turbines Incorporated (mfg)Texas Nameplate Company, Inc. (small business) 19973M Dental Products Division (mfg)Merrill Lynch Credit Corporation (service)Solectron Corporation (mfg)Xerox Business Services (service)1996ADAC Laboratories (mfg)Custom Research Inc. (small business)Dana Commercial Credit Corp. (service)Trident Precision Manufacturing, Inc. (small business)Malcolm Baldridge Award WinnersSlide 6Operations/QualityQuality in Practice:3. ISO 9000 and 4. ? Series of standards agreed upon by the International Organization for Standardization (ISO): (http://www.iso.ch/iso/en/iso9000-14000/iso9000/iso9000index.html)Adopted in 1987More than 100 countriesA prerequisite for global competition?ISO 9000: “document what you do and then do as you documented.”–Most companies providing service strive for ISO9002, while mfg companies that do design go for 9001–The familiar three standard (below) have now been integrated into ISO9001:2000. Design Procurement Production Final test Installation Servicing ISO 9003ISO 9002ISO 9001Slide 7Operations/QualityCosts of QualityCost of Conformance–Cost of Appraisal–Cost of PreventionCost of Non-Conformance–Cost of Internal Failure–Cost of External Failure100:110:11:1ProductDesignProcessDesignProductionImproveProductQuality LeverBenefits of Building Q in EarlyLow VisibilityRewardHigh VisibilityRewardTimeSlide 8Operations/QualityComponents of QualityVoice of the customer–Customer Needs–Quality of DesignVoice of the process–Quality of Conformance–Process CapabilityProcess Control and ImprovementSlide 9Operations/QualityVoice of the Customer: Linking Customer Needs to Business Processes Business Process Customer Need Internal MetricOverall QualityProduct (30%)Sales (30%)Installation (10%)Repair (15%)Billing (15%)Reliability (40 %) % Repair CallEasy to Use (20%) % Calls for HelpFeatures/Functions (40%) Function Performance TestKnowledge (30%) Supervisor ObservationsResponse (25%) % Proposals Mad on TimeFollow-Up (10%) % Follow-Up MadeDelivery Interval (30%) Average Order IntervalDoes Not Break (25%) % Repair ReportsInstalled When Promised % Installed on Due DateNo Repeat Trouble (30%) % Repeat ReportsFixed Fast (25%) Average Speed of RepairKept Informed (10%) % Customers InformedAccuracy, No Surprise (45%) % Billing InquiriesResponse on First Call (35%) % Respolved First CallEasy to Understand (10%) % Billing InquiriesSource: Kordupleski et al., CMR ‘93.Slide


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