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Operation MGT - Unit 5

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10 views17 pages

Operation MGT - Unit 5

Uploaded by

yomiftemesgen22
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Chapter -5

QUALITY MANAGEMENT AND


CONTROL
5.1. QUALITY MANAGEMENT

5.1.1. Introduction
• High-quality products are reliable, dependable, and
satisfying, they do the job they were designed for and meet
customer requirements.
• Managers seek to control and improve the quality of their
organization’s products for two fundamental Reasons:
1) The first reason for trying to boost product quality is that
higher product can increase efficiency and thereby lower
operating costs and boost profits.
5.1.2. Meaning of Quality

• Quality can be defined in many ways. But the most


common definitions of quality . For instance
• Webster’s Dictionary
– degree of excellence of a thing
• American Society for Quality
– totality of features and characteristics that satisfy needs
• From view of Consumers
• - Quality is the fitness for use. I’e how well
• product or service does what it is supposed to do
• From view of Producers
• -Quality of Conformance. I’e Making sure a product or service
is produced according to design.
Con.t
• Quality in general is the ability of a product or
service to consistently meet or exceed customer
expectations.

• Or it is the degree to which the design specifications


for a product are appropriate to its function and use
and the degree to which a product conforms to its
design specifications.
Attributes of Quality
• Garvin identified a framework of the following eight
attributes that may be used to define quality:
• Performance
• Features
• Reliability,
• Conformance
• Durability
• Serviceability
• Aesthetics, And
• Perceived Quality.
Dimensions of Quality: Manufactured
Products
Dimensions of Quality of Products
• Performance
– basic operating characteristics of a product; how well a car is handled
or its gas mileage
• Features
– “extra” items added to basic features, such as a stereo CD or a leather
interior in a car.
• Reliability
– probability that a product will operate properly within an expected time
frame; that is, a TV will work without repair for about seven years
• Conformance
– degree to which a product meets pre–established standards
• Durability
– how long product lasts before replacement
• Serviceability
– ease of getting repairs, speed of repairs, courtesy and
competence of repair person
• Aesthetics
– how a product looks, feels, sounds, smells, or tastes
• Safety
– assurance that customer will not suffer injury or harm from
a product; an especially important consideration for
automobiles
• Perceptions
– subjective perceptions based on brand name, advertising,
and the like.
• Dimensions of Quality: Service
• Time and Timeliness
– How long must a customer wait for service, and is it completed on
time?
– Is an overnight package delivered overnight?
• Completeness:
– Is everything customer asked for provided?
– Is a mail order from a catalogue company complete when delivered?
• Courtesy:
– How are customers treated by employees?
– Are catalogue phone operators nice and are their voices pleasant?
• Consistency
– Is the same level of product/service provided to each customer each
time?
• Accessibility and convenience
– How easy is it to obtain service?
– Does a service representative answer you calls quickly?
• Accuracy
– Is the service performed right every time?
– Is your bank or credit card statement correct every month?
• Responsiveness
– How well does the company react to unusual situations?
– How well is a telephone operator able to respond to a customer’s
questions?
• Better reputation
• Quality Management is the management function that is responsible
for all aspects of a product’s quality.
5.1.3. Determinants of Quality
• The degree to which a product or a service successfully
satisfies its intended purpose has two primary
determinates.These are:
1. Conformance
2. Consistency
1. Conformance.
– Conformance is a degree to which a product meets pre–
established standards
– EX: Actual size, actual durability
2. Consistency
– Is the degree to which the same level of product/service
provided to each customer each time?
– Is your newspaper delivered on time every morning?
5.1.4. The Costs of Quality
• Costs of Quality
• can be divided in to three major categories: cost
of prevention, cost of detection/Inspection, and
cost of failure.
• The total quality cost is the sum of costs in the
three categories.
5.1.4. The Costs of Quality
“Costs” of Quality
Category Definition Example

Costs associated with preventing Training, early reviews, quality planning,


Prevention
defects. tools, process improvement initiatives.

Costs associated with analyzing and


Appraisal testing the product to ensure it Inspections, testing, audits, quality control.
conforms to specifications.

Costs associated with fixing defects


Internal Failure Repair, retesting, updating documentation.
found prior to release.

Costs associated with fixing defects Technical support, defect reporting and
External Failure
found after release. tracking, field updates, loss of future sales.
4.1.5. Total Quality Management (TQM)
A philosophy that involves everyone in an organization
in a continual effort to improve quality and achieve
customer satisfaction.TQM is a philosophy of
perpetual improvement.
TQM is a concept that focuses on managing the
total organization to deliver quality to customers.
• Four significant elements of TQM are
– Employee involvement: participation of all
employees in quality improvement companywide
– Focus on the customer: meeting customers needs
and expectations
– Benchmarking: finding out how others do better and
try to imitate or improve
– Continuous improvement: small and incremental
improvement in all areas
Elements of TQM
• Leadership
–Top management vision, planning and support
• Employee involvement
–All employees assume responsibility for inspecting the
quality of their work.
• Product/Process Excellence
–Involves product design quality and monitoring the
process for continuous improvement.
Elements of TQM (cont’d)
• Focus on the customer (on “Fitness for Use”) : meeting
customers needs and expectations
• Continuous Improvement
– A concept that recognizes that quality improvement is a journey with
no end and that there is a need for continually looking for new
approaches for improving quality.

• Benchmarking: finding out how others do better and try


to imitate or improve

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