Operations Management: Meaning and Nature of Quality
Operations Management: Meaning and Nature of Quality
Operations CONTENTS
7.1. Meaning and nature of quality
management
7.2. Determinants of Quality
7.3. Dimensions of Quality for Goods and Services
7.3. The Costs of Quality
7.4. Quality Circles and Quality Improvement Teams
7.5. International Quality Documentation Standards
7.6. Total Quality Management
7.7. Quality Control and Improvement
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Quality from the Customer’s Perspective Quality from the Producer’s Perspective
Quality should be aimed at the needs of the Product or service design results in design
consumer, present and future. specifications that should achieve the desired
From this perspective, product and service quality.
quality is determined by what the customer However, once the product design has been
wants and is willing to pay for. determined, the producer perceives quality to
Since customers have different product be how effectively the production process is
needs, they will have different quality able to conform to the specifications required
expectations. by the design referred to as the quality of
Define quality as a service’s or product’s conformance.
fitness for its intended use, or fitness for use; What this means is quality during production
how well does it do what the customer or focuses on making sure that the product
user thinks it is supposed to do and wants it meets the specifications required by the
to do? design.
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Principles of TQM
The philosophies of TQM
TQM is a philosophy so its elements consist of the
The distinctive approach of TQM can be various strategies, tactics which includes the Following:
summarized as comprising seven basic
Knowledge of tools
principles:
Continuous improvement -- Kaizen
Customer Focus
1. The Approach = Management-led Product Design
2. The Scope = Company-wide Competitive benchmarking
3. The Scale = Everyone is responsible Employee empowerment
4. The Philosophy = Prevention not detection Team approach
5. The Standard = Right-first-time Decisions based on facts
6. The Control = Cost of quality Managing Supplier quality
7. The Theme = Continuous improvement Quality at the source-- Process Management
Champion
Importance of TQM
Producing quality products or services: These aspects include Barriers to the Implementation of TQM
durability, reliability, performance, and conformance with quality standards
and aesthetics.
Achieving a high level of customer satisfaction: Signifies that TQM Poor Planning
enables an organization to achieve maximum customer satisfaction by
providing them quality products and services. Resistance of Employees
Building reputation: Refers to the fact that TQM helps the organization
to gain good public image by providing superior quality products and Lack of Proper Training:
services.
Making efficient utilization of resources: Signifies that TQM aims at
Lack of Management Commitment
making an optimum use of available resources by reducing defects in
products. Shortage of Resources
Generating high revenue: The TQM approach helps an organization to
reduce wastage, which, in turn, decreases additional costs and generates
high revenue for the organization.
Motivating employees: Signifies that employees always prefer to be
associated with an organization that has good market image.
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Continuous Improvement
Approaches of Continuous Improvement
The Philosophy that seeks to make never-ending
improvements to the process of converting inputs into The four approaches to wards
outputs. continuous improvement are:
Represents continual improvement of process & The plan–do–study–act (PDSA) cycle,
customer satisfaction, involves all operations & work Benchmarking
units.
Quality circles and
Other names Kaizen (Japanese), Zero defects.
Taguchi Concepts.
Kaizen: is the Japanese word for continuous
improvement; kai (“change”) Zen (“good’’).
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III. Benchmarking
Plan –Do-Study-Act (PDSA) Cycle: Selecting best practices to use as a standard for performance
Determine what to benchmark Use internal
benchmarking
Form a benchmark team if you’re big
Identify benchmarking partners enough
Collect and analyze benchmarking information
Take action to match or exceed the benchmark
Best Practices for Resolving Customer Complaints
Best Practice Justification
• Make it easy for clients to complain. • It is free market research.
• Respond quickly to complaints. • It adds customers and loyalty.
• Resolve complaints on the first
contact. • It reduces cost
• Use computers to manage complaints. • Discover trends, share them, and
• Recruit the best for customer service align your services.
jobs. • It should be part of formal
training and career advancement
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Principles of the ISO 9000 Series What types of systems are required?
The ISO 9000 series is based on the eight principles
ISO-9000 requires a documented quality system
of quality management,
comprising the following:
1. Customer Focus:
A policy document mentioning the Company’s
2. Leadership:
intention to ensure that the system exists and to
3. Involvement of People guarantee consistent product quality.
4. Process Approach Operating procedures which are instructions on
5. System Approach equipment operation, Inspection and tests,
6. Continual Improvement documentation, etc.
7. Mutually Beneficial Supplier Relation Specific instructions relating to particular contracts
8. Factual Approach to Decision Making
which include drawings, specific test procedures,
quality plans etc.
What are the quality system requirements What are the benefits of the ISO-9000
specified by the Standard? standards?
1. Management 11. Inspection, Measuring and
Responsibility Test Equipment
12. Inspection and Test ISO-9000 Standards have universal
2. Quality System
3. Contract Review
Status acceptance.
13. Control of Non conforming
4. Design Control The supplier audits are fewer and have
product
5. Document Control
6. Purchasing
14. Corrective Action more focus.
15. Handling, Storage,
7. Purchaser-Supplied Packaging and Delivery Easier, faster and more comprehensive
Product
8. Product Identification and
16. Quality Records learning, resulting in increased
17. Internal Quality Audits
Traceability productivity and quality.
18. Training
9. Process Control
19. Servicing Giving rise to better market sales.
10. Inspection and Testing
20. Statistical Techniques
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SIX SIGMA
Benefits of Quality Control Statistically speaking a process is said to be in Six Sigma stage if it does
not have more than 3 or 4 defects per million.
Improving the quality of products and services. Most of the organizations measure their quality program in terms of Six
Sigma.
Increasing the productivity of manufacturing
Conceptually the Six Sigma Program is designed to reduce defects and
processes, commercial business, corporations requires the use of certain tools and techniques.
Reducing manufacturing and corporate costs. Six Sigma Programs are always directed towards quality improvement,
cost cutting and time saving.
Determining and improving the marketability of
Six Sigma Programs are employed in:
products and services.
Design
Reducing consumer prices of products and Production
services. Service
Improving and/or assuring on time deliveries and Operation management
availability. Inventory management
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1. Check Sheet
Keeps a list of causes of quality problems with 2. Pareto Analysis
the number of defects resulting from each
Most quality problems & cost result from a
cause;
Used to develop histograms and Pareto diagrams fewer causes.
up on completion of tallying. Applied by tallying the no of defects for
COMPONENTS REPLACED BY LAB each possible cause of poor quality and
TIME PERIOD: 22 April to 27 April 2015
REPAIR TECHNICIAN: Abebe
developing frequency distribution from the
data.
TV SET MODEL 1013
The frequency distribution is called Pareto
Integrated Circuits ||||
Capacitors |||| |||| |||| |||| |||| || diagram
Resistors ||
Transformers ||||
Commands
CRT |
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0
Causes of poor quality 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1
Start/
Operation Operation Decision Operation
Y
Finish
Operation Operation
Decision Start/
Finish
X
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