Chapter 2 Quality Management Notes from the Book I What is quality a Characteristics of a product or service that bear on its ability to satisfy stated or implied needs b A product or service free of deficiencies c From the customer s prospective i Firms must know how consumer defines quality ii Fitness for use iii Quality of design how well the product or service does what it is supposed to involves designing quality characteristics into a product or service 1 Ex Though Ford and Mercedes have the same use they differ in performance features size etc d Dimensions of Quality for Manufactured Products i Performance operating characteristics of a product 1 Ex mpg ii Features extra items added to the basic features 1 Ex Leather in a car probability that a product will operate properly within an expected degree to which a product meets pre established standards how long the product lasts lifespan before replacement ease speed and courtesy and competence of the repair and iii Reliability time frame iv Conformance v Durability vi Serviceability repair person vii Aesthetics viii Safety ix Other perceptions how a product looks feels sounds smells or tastes assurance the customer will not suffer injury from the product subjective based on brand name advertising etc e Dimensions of Quality for Services how long must a customer wait for a service and is it i Time and timeliness completed on time ii Completeness iii Courtesy iv Consistency v Accessibility and convenience vi Accuracy vii Responsiveness is everything the customer asked for provided for how are customers treated by employees is the same level of service provided to each customer each time how easy is it to obtain the service is the service performed right every time how well does the company react to unusual situations f Quality From the Producer s Perspective i Quality of conformance according to design 1 Depends on a Design of the production process making sure the product or service is produced b Performance level of machinery c Equipment and technology d Materials used e Training and supervision of employees f Degree to which statistical quality control techniques are used 2 Well made 3 Ex if new tires do not conform to specifications they wobble Important consideration achieving quality of conformance at an acceptable cost 2 Product cost is an important design specification in a competitive price 3 Quality characteristics included in the product design must balance ii Price 1 against product costs g Final Perspective on Quality i Two perspectives 1 Customer 2 Producers Quality Management Systems a Deming taught quality control in Japan II i Statistical quality control ii Two Sources of Process Improvement 1 Eliminating common causes of quality problems a Ex poor product design insufficient employee training eliminating special costs etc 2 Eliminating special causes a Ex specific equipment or an operator iii Believed employees and management were responsible for quality iv 14 Points 1 Create a consistency of purpose toward product improvement to achieve long term organizational goals 2 Adopt a philosophy of preventing poor quality products instead of acceptable levels of poor quality as necessary to compete internationally 3 Eliminate the need for inspection to achieve quality by relying instead on statistical quality control to improve product and process design Institute worker training Instill leadership among supervisors 4 Select a few suppliers based on quality 5 Constantly improve system and workers 6 7 8 Eliminate fear among employees 9 Eliminate barriers between departments 10 Eliminate slogans 11 Eliminate numerical quotas 12 Enhance worker pride 13 Institute vigorous training and education programs 14 Develop a commitment from top management to implement above 13 points III v Quality Tools a Process Flowchart reference constitute a process problem causes diagram of the steps in a job operation or process i Presents a picture of how a specific operation works and a common frame of ii Helps understand interrelationship of the departments and functions that b Cause and effect diagram or fishbone diagram chart showing the different categories of i Developed for brainstorming ii Effect quality problem that needs correction iii Sometimes causes are rank ordered along the branches to identify those that are most likely to affect the problem iv Cause and effect matrix grid to prioritize causes of quality problems 1 Y are at the top of the matrix 2 X is the input and outcome of the process left side of the matrix 3 Highest score should be addressed first because it will have the largest impact for customer satisfaction c Checksheets and histograms i Checksheet list of causes of quality problems with the number of defects resulting from each cause used to develop a bar chart called a histogram d Pareto analysis i Most quality problems result from a few causes ii By Joseph Juran iii Tally the number of defects for each of the different possible causes then develop a frequency distribution from the data iv Aid on focusing on major problems e Scatter diagrams i Graph showing how two process variables relate to each other ii Many points show a relationship lack of IV TQM QMS a Total Quality Management TQM employee responsibility continuous improvement cooperation statistical methods and training and education customer oriented leadership strategic planning i Philosophy for managing an organization centered on quality and customer satisfaction for achieving long term success ii TQM supplemented with quality management system system to achieve customer satisfaction that complements other company systems 1 Came from ISO certification process 2 System rather than philosophy 3 Outlines policies and procedures to improve and control processes V Focus of Quality Management Customers a Happy customers are less likely to switch to competitors b High satisfaction emotional bond c Quality Management in the Supply Chain i Need support and resources of suppliers ii Companies reduce amount of suppliers to 1 Direct influence over quality 2 Direct influence over delivery d Meeting Customer Satisfaction iii If a company has a major portion of supplier s business 1 Supplier is more willing to meet the customer s quality standards relationship between a company and its supplier based on mutual iv Partnering quality standards 1 ISO900 Baldrige National Quality Award Guidelines etc i Customer survey VoC voice of the customer ii iii American