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Process Performance and Quality

This document discusses concepts related to operations management and quality control. It covers the costs of poor quality, total quality management principles of customer satisfaction, employee involvement and continuous improvement. Specific quality control tools are also outlined, including statistical process control using control charts to monitor processes and identify abnormalities. The six sigma improvement methodology is introduced, with its define, measure, analyze, improve, control model. Key aspects of six sigma implementation include top-down commitment, tracking progress, goal setting, education programs for belts, communication and prioritizing customers.

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Ajit Das
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43 views12 pages

Process Performance and Quality

This document discusses concepts related to operations management and quality control. It covers the costs of poor quality, total quality management principles of customer satisfaction, employee involvement and continuous improvement. Specific quality control tools are also outlined, including statistical process control using control charts to monitor processes and identify abnormalities. The six sigma improvement methodology is introduced, with its define, measure, analyze, improve, control model. Key aspects of six sigma implementation include top-down commitment, tracking progress, goal setting, education programs for belts, communication and prioritizing customers.

Uploaded by

Ajit Das
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Operations Management

HRM-306

Chapter-05
 Cost of poor process performance and quality

When a process fails to satisfy a customer, it is consider a defect.

1. Prevention cost: cost associate with preventing defects before they happen.
2. Appraisal cost: cost incurred when the firm assesses the performance level
of its process.
3. Internal failure cost: cost resulting from defect that are discovered during
the production of a service or product.
i. Rework
ii. Scrap
4. External failure cost: cost that arise when a defect is discovered after the
customer receives the service or product.
 Total quality management:
Total quality management (TQM) is a philosophy that stresses three principles for
achieving high level of process performance and quality. These principles are related to
customer satisfaction, employee involvement, and continuous improvement in
performance.
Customer satisfaction:
Customer, internal or external, are satisfied when their expectations regarding a
service or product have been meet or exceeded. Often customer use the general
term Quality to describe their level of satisfaction with a service or product.

1. Conformance to specifications
2. Value
3. Fitness for use
4. Support
5. Psychological impressions.
Employee involvement:
One of the most important elements of TQM is employee involvement ,
its includes changing organizational culture and encouraging teamwork.

1. Culture change
2. Team
a. Problem solving team
b. Special purpose team
c. Self manage team.
Continuous improvement
The philosophy of continually seeking way to improve processes based
on a Japanese concept called Kaizen.

Getting started:
• Train employee in the method of statistical process control (SPC) and
other tools for improving quality and performance.
• Make SPC methods a normal aspect of daily operations.
• Build work team and encourage employee involvement
• Utilize problem solving tools.
• Develop a sense of operator ownership in the process.
Problem-Solving Process:
Most firms actively engaged in continuous improvement train their work teams to
use the Plan-Do-check-act Cycle for problem solving. Another name of this
approach is the Deming Wheel.
1. Plan
2. Do
3. Check
4. Act
 Statistical Process Control:
Statistical Process Control is the application of statistical techniques to
determine whether a process is delivering what the customer want.

Control chart:
To determine whether observed variations are abnormal , we can
measure and plot the performance measure taken from the sample on
a time order diagram called a control chart.
 Six Sigma:
A comprehensive and flexible system for achieving, sustaining and
maximizing business success by minimizing defect and variability in
process.
 Six Sigma improvement Model:
• Define
• Measure
• Analysis
• Improve
• Control
 Implementation of six sigma:
1. Top down commitment
2. Measurement systems to track progress
3. Tough goal setting
4. Education
a) Green belt
b) Black belt
c) Master black belt
5. Communication
6. Customer priorities
THANKS EVERYONE

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