Podcast
Questions and Answers
What concept did Crosby coin that promotes eliminating mistakes in products or services?
What concept did Crosby coin that promotes eliminating mistakes in products or services?
Which of the following is NOT one of Deming's Fourteen Points?
Which of the following is NOT one of Deming's Fourteen Points?
What is emphasized as crucial in preventing defects according to the content?
What is emphasized as crucial in preventing defects according to the content?
What role does leadership play according to Deming's philosophy?
What role does leadership play according to Deming's philosophy?
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What should operations managers ensure according to quality management principles?
What should operations managers ensure according to quality management principles?
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Which of the following points addresses removing barriers to teamwork?
Which of the following points addresses removing barriers to teamwork?
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According to the philosophy discussed, what is the enemy of quality?
According to the philosophy discussed, what is the enemy of quality?
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What is a key benefit of instituting a program of education and self-improvement in the workplace?
What is a key benefit of instituting a program of education and self-improvement in the workplace?
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What significant focus did ISO 9001: 2000 introduce in quality management?
What significant focus did ISO 9001: 2000 introduce in quality management?
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Which of the following were emphasized in ISO 9001: 2015?
Which of the following were emphasized in ISO 9001: 2015?
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What is the primary objective of the preventive actions emphasized in ISO 9001: 1994?
What is the primary objective of the preventive actions emphasized in ISO 9001: 1994?
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How many clauses are there in the ISO 9001 standard?
How many clauses are there in the ISO 9001 standard?
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What was the key change introduced in ISO 9001: 2008 compared to previous versions?
What was the key change introduced in ISO 9001: 2008 compared to previous versions?
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Which clause of ISO 9001 addresses 'Leadership and commitment'?
Which clause of ISO 9001 addresses 'Leadership and commitment'?
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In which version of ISO 9001 was an emphasis on process performance measures first introduced?
In which version of ISO 9001 was an emphasis on process performance measures first introduced?
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What does Clause 7 of ISO 9001 cover?
What does Clause 7 of ISO 9001 cover?
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Which Quality Management Principle focuses on the importance of meeting customer requirements?
Which Quality Management Principle focuses on the importance of meeting customer requirements?
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What is the purpose of QMP6 in the Quality Management Principles?
What is the purpose of QMP6 in the Quality Management Principles?
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Which of the following is not a principle of ISO 9000?
Which of the following is not a principle of ISO 9000?
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How many Quality Management Principles are defined in ISO 9000?
How many Quality Management Principles are defined in ISO 9000?
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Which document in the ISO 9000 family provides requirements for quality management systems?
Which document in the ISO 9000 family provides requirements for quality management systems?
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Which Quality Management Principle is associated with creating a process-based approach to management?
Which Quality Management Principle is associated with creating a process-based approach to management?
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In which year was ISO 9001 last updated to reflect current quality management practices?
In which year was ISO 9001 last updated to reflect current quality management practices?
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Which of the following Quality Management Principles emphasizes the importance of maintaining quality through organizational relationships?
Which of the following Quality Management Principles emphasizes the importance of maintaining quality through organizational relationships?
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What standard does Alaska Airlines set for the opening of the airplane door after arrival?
What standard does Alaska Airlines set for the opening of the airplane door after arrival?
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What is the standard for the receptionist's performance at Jones Law Office?
What is the standard for the receptionist's performance at Jones Law Office?
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Which standard is related to the Doorman's performance at the Hard Rock Hotel?
Which standard is related to the Doorman's performance at the Hard Rock Hotel?
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What aspect of the room does the Hard Rock Hotel inspect?
What aspect of the room does the Hard Rock Hotel inspect?
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What standard does Jones Law Office establish for billing?
What standard does Jones Law Office establish for billing?
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What is the primary goal of the Six Sigma program?
What is the primary goal of the Six Sigma program?
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What does a process need to achieve to be considered 'Six Sigma'?
What does a process need to achieve to be considered 'Six Sigma'?
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What does 'DMAIC' stand for in the context of Six Sigma?
What does 'DMAIC' stand for in the context of Six Sigma?
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Which of the following best describes 'Defect' in Six Sigma terminology?
Which of the following best describes 'Defect' in Six Sigma terminology?
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What is considered a key focus of Six Sigma methodology?
What is considered a key focus of Six Sigma methodology?
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Who originally developed the Six Sigma program?
Who originally developed the Six Sigma program?
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Which of the following does NOT describe a characteristic of the Six Sigma methodology?
Which of the following does NOT describe a characteristic of the Six Sigma methodology?
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What is the statistical representation of standard deviation referred to in the Six Sigma framework?
What is the statistical representation of standard deviation referred to in the Six Sigma framework?
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What is emphasized as a standard metric in Six Sigma?
What is emphasized as a standard metric in Six Sigma?
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Which roles are referred to as qualified process improvement experts in Six Sigma?
Which roles are referred to as qualified process improvement experts in Six Sigma?
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What type of objectives are considered 'stretch objectives'?
What type of objectives are considered 'stretch objectives'?
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What is one of the main techniques for employee empowerment mentioned?
What is one of the main techniques for employee empowerment mentioned?
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Which of the following is NOT a part of the employee empowerment techniques?
Which of the following is NOT a part of the employee empowerment techniques?
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What is the primary function of quality circles?
What is the primary function of quality circles?
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Who typically leads quality circles?
Who typically leads quality circles?
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What percentage of quality problems is attributed to materials and processes?
What percentage of quality problems is attributed to materials and processes?
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Study Notes
Managing Quality
- PowerPoint presentation accompanies Heizer, Render, Munson's Operations Management (13th Global Edition) and Principles of Operations Management (11th Edition).
- Copyright © 2020 Pearson Education Ltd.
- Presentation slide number: 6-1
Final Exam of OM
- Exam Date & Time: December 9, 2029, 9-12 hrs
- Content: Managing Quality and Project Management
- Format: 40 multiple-choice questions
- Score: 100%
- Permitted items: Pen, pencil, eraser, student ID card, any type of calculator
- Allowed notes: No cheat sheet.
Outline
- Global Company Profile: Arnold Palmer Hospital
- Quality and Strategy
- Defining Quality
- Determinants of Product & Service Quality
- Cost of Quality
- Total Quality Management
- Tools of TQM
- The Role of Inspection
- Slide number: 6-2
Managing Quality Provides a Competitive Advantage
- Arnold Palmer Hospital delivers over 14,000 babies annually
- Virtually every type of quality tool is employed
- Continuous improvement
- Employee empowerment, benchmarking,
- Just-in-time (JIT)
- Quality tools
- Slide number: 6-3
Learning Objectives
- Define quality and TQM
- Describe the ISO international quality management system standards
- Explain Six Sigma
- Explain how benchmarking is used in TQM
- Use the seven tools of TQM
- Slide number: 6-4
Strategies for Competitive Advantage
- Differentiation – better or at least different
- Cost leadership – cheaper
- Response – more responsive
- Slide number: 6-5
Quality and Strategy
- Managing quality supports differentiation, low cost and response strategies
- Quality helps firms increase sales and reduce costs
- Building a quality organization is a demanding task
- Slide number: 6-6
Two Ways Quality Improves Profitability
- Improved Quality: Sales Gains via improved response, flexible pricing, improved reputation
- Reduced Costs via increased productivity, lower rework and scrap costs, lower warranty costs
- Figure 6.1
- Slide number: 6-7
The Flow of Activities
- Organizational Practices: Leadership, Mission Statement, Effective Operating Procedures, Staff Support, Training
- Quality Principles: Customer Focus, Continuous Improvement, Benchmarking, Just-in-Time, Tools of TQM
- Employee Fulfillment: Employee Motivation, Empowerment, Organizational Commitment
- Customer Satisfaction: Winning Orders, Repeat Customers
- Figure 6.2
- Slide number: 6-8
Defining Quality
- An operation manager's objective is to build a total quality management system that identifies and satisfies customer needs
- Slide number: 6-9
Defining Quality
- The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
- Understanding customer needs is fundamental for effective management.
- Implied needs are those that are not explicitly communicated by customers.
- Slide number: 6-10
Different Views of Quality
- User-based: Better performance, more features
- Manufacturing-based: Conformance to standards, making it right the first time
- Product-based: Specific and measurable attributes of the product
- Slide number: 6-11
Determinants of Product Quality
- Performance: Primary operating characteristic
- Features: Secondary aspect of performance
- Reliability: Probability of malfunctioning
- Conformance: Meeting standards/specifications
- Durability: Product life
- Serviceability: Speed, ease of repair
- Aesthetics: Product looks, feels, etc.
- Perceived quality: Reputation, images
Determinants of Service Quality
- Consistency of Performance and Dependability
- Responsiveness: Employee willingness to provide service
- Competence: Possession of skills and knowledge
- Access: Approachability, ease of contact
- Courtesy: Politeness, respect, consideration
- Communication: Keeping customers informed, listening
- Credibility: Trustworthiness, honesty
- Security: Freedom from danger, risk, or doubt
- Understanding the customer: Understanding customer needs
- Tangibles: Physical evidence of the service
Outline (Bechtel Group)
- Global Company Profile: Bechtel Group
- The Importance of Project Management
- Project Planning
- Project Scheduling
- Project Controlling
- Project Management Techniques: CPM
- Determining the Project Schedule
- Slide number: 3-2
Critical Path and Slack Times for Milwaukee Paper
- This figure displays a project network diagram with estimated time values for each activity.
- List of paths: A-C-F-H, A-C-E-G-H, A-D-G-H, B-D-G-H
- Critical path: A-C-E-G-H
- Figure 3.16
- Slide number: 3-66
Implications of Quality
- Company reputation: perception of new products, employment practices, supplier relations
- Product liability: reduce risk
- Global implications: improved ability to compete
- Slide number: 6-14
Malcolm Baldrige National Quality Award
- Established in 1988 by the US government
- Designed to promote TQM practices
- Any type of organization can apply for assessment
- Slide number: 6-15
Baldrige Criteria
- Evaluated on: Leadership, Strategic Planning, Customer Focus, Measurement, Analysis, and Knowledge Management, Workforce Focus, Operations Focus, Results
- Factors used by US Government
- Points for each category: Leadership (120), Strategic Planning (85), Customer Focus (85), Measurement, Analysis, and Knowledge Management (90), Workforce Focus (85), Operations Focus (85), Results (450)
- Categories used: 1. Leadership (120), 2. Strategic Planning (85), 3. Customer Focus (85), 4. Measurement, Analysis, and Knowledge Management (90), 5. Workforce Focus (85), 6. Operations Focus (85), 7. Results (450)
ISO 9000 International Quality Management System Standards
- Recognizes standards, encourages detailed procedures, documentation, and recordkeeping.
- 2015 revision emphasizes risk-based thinking.
- Over 1.6 million certifications in many countries.
- Important for global business
- Slide number: 6-17
ISO 9000: Quality Management System
- Quality Management Principles (QMP) -QMP1 – Customer Focus -QMP2 – Leadership -QMP3 – Engagement of People -QMP4 – Process Approach -QMP5 - Improvement -QMP6 – Evidence-based Decision Making -QMP7 – Relationship Management
- Slide number: 6-18
A Comparison Between Baldrige Award and ISO 9000
- Comparing Baldrige Award criteria and ISO 9001 QMP
- Slide number: 6-19
ISO 9000: Family of Standards
- ISO 9000:2015 Quality Management Systems Fundamentals and Vocabulary
- ISO 9001:2015 Quality Management Systems Requirements
- ISO 9004:2018 Quality Management, guidance for achieving sustained success
- ISO 19011:2018 Guidelines for auditing managment systems
ISO 9001: Quality Management Systems - Requirements
- ISO 9001:1987, ISO 9001:1994, ISO 9001:2000, ISO 9001:2008, ISO 9001:2015 (current edition)
- Focus on conforming to procedures rather than on management process; variety reduction
- Risk-based thinking, emphasis on leadership, and increased flexibility
- Slide number: 6-21
ISO 9001: Quality Management Systems - Requirements
- Consisting of 11 clauses
- Clauses: Introduction, Scope, References, Terms and Definitions, Context of the organization, Leadership, Planning for the QMS, Support, Operational Planning and Control, Performance evaluation, Improvement
- Slide number: 6-22
Costs of Quality
- Prevention costs: Reducing potential defects (training, design, maintenance costs)
- Appraisal costs: Evaluating products, parts, and services (testing, inspecting, calibrating costs)
- Internal failure costs: Producing defective parts before delivery (repair, rework, downgrade costs)
- External failure costs: Defects discovered after delivery (replacement, warranty, lawsuit)
- Slide number: 6-23
Costs of Quality
- Prevention Costs
- Appraisal Costs
- Failure Costs (Internal & External).
- In a cost of quality graph, the prevention and appraisal costs go down as variation increases.
- Slide Number: 6-24
Leaders in Quality
- W. Edwards Deming: Management accepting responsibility for building good systems. 14 points for implementing quality improvment
- Joseph M. Juran: Top-management commitment, support, and involvement; Teams that continually seek to raise standards; Define quality as fitness for use, not written specifications
Leaders in Quality
- Armand Feigenbaum: Total Quality Control, integrated processes, learning from each other's successes.
- Philip B. Crosby: Quality Is Free, Cost of poor quality is understated, zero defects
- Slide number: 6-25, 6-26, 6-27
Deming's Fourteen Points
- Consistency of purpose, Promote Change, Building quality into product, long-term relationships, continuous improvement, training, emphasize leadership
- Drive out fear, breakdown barriers, stop haranguing workers, support, work without rating, education & improvement, transformation
- Slide number: 6-28, 6-29
Ethics and Quality Management
- Operations managers must deliver healthy, safe, quality products and services
- Poor quality risks (injuries, lawsuits, recalls, violations)
- Ethical conduct must dictate response and actions
- All stakeholders must be considered
- Slide number: 6-30
Total Quality Management
- Encompasses entire organization from supplier to customer
- Stresses a commitment by management to have a continuous companywide drive toward excellence in all aspects of products and services that are important to the customer
- Slide number: 6-31
Related Concepts of TQM
- Continuous improvement
- Six Sigma
- Employee empowerment
- Benchmarking
- Just-in-time (JIT)
- Knowledge of TQM tools (logical order: big picture, data collection, data analysis, problem identification, prioritization)
Continuous Improvement
- Never-ending process of improvement
- Covers people, equipment, suppliers, materials, and procedures.
- Every operation can be improved.
Shewhart's PDCA Model (Plan-Do-Check-Act)
- Plan: Identify the pattern; make a plan.
- Do: Test the plan.
- Check: Is the plan working?
- Act: Implement the plan; document
- Figure 6.3
- Slide number: 6-34
Continuous Improvement (Kaizen)
- Ongoing process of unending improvement (incremental quality improvement)
- TQM and zero defects used to describe continuous improvement.
- “Kaizen” in Japanese.
Quality Improvement: Kaizen, Kaikaku, Kakushin
- Kaizen: Incremental Improvement
- Kaikaku: Breakthrough Improvement
- Kakushin: Transformational Innovation
Pareto Charts
- Graph plotting problems or defects in descending frequency order
- 80-20 Rule: Roughly 80% of effects come from 20% of causes.
- Slide number: 6-79, 6-80, 6-81
Inspection
- Examining items to determine if they are good or defective
- Detecting defective products does not correct process or product deficiencies. Inspection is expensive.
- Issues: When to inspect, where in the process to inspect.
When and Where to Inspect
- Supplier's plant
- Facility upon receipt
- Before costly processes
- During production steps
- After production/service completion
- Before delivery to the customer
- Point of customer contact
When and Where to Inspect (Samsung Smartphone example)
- Durability, Visual Inspection, X-ray, Charge & Discharge, Organic Pollution, Disassembling, Accelerated Usage, Volatility
Inspection
- Problems: Work fatigue, measurement errors, process variability.
- Better solutions: Robust design, empowered employees, processes.
Source Inspection
- Techniques to reduce inspection: Source control (Poka-yoke)
- Next step: Customer. Ensure perfect product.
Poka-Yoke
- Foolproof devices or techniques
- Pass only acceptable products
- Use tools to detect human error
Poka-Yoke in Process Design
- Concept in total quality management
- Restricting errors at the beginning (cradle) (mistake-proofing or fail-safe)
- Elimination (eliminate); Replacement (replace with error-proofing); Facilitation (easier action)
Source Inspection: Checklists
- Checklists ensure consistency and completeness.
Service Industry Inspection
- Examples of inspection in services: Alaska Airlines, Jones Law Office, Hard Rock Hotel, Arnold Palmer Hospital, Olive Garden Restaurant, and Nordstrom Department Store.
- Specific areas/tasks inspected and standards for each organization.
TQM in Services
- Service quality is more difficult to measure than the quality of goods.
- Intangible differences between products and intangible expectations.
Service Quality
- Tangible component of services is important.
- Service process is important.
- Services judged against customer expectations.
- Exceptions will occur.
Service Specifications (Alaska Airlines example)
- Aircraft boarding, flight attendants, baggage, cargo, on-board check-in, final load closeout, doors closed
Service Recovery Strategy
- Have a plan for when services fail (Marriott's LEARN): Listen, Empathize, Apologize, React, Notify.
Cause-and-Effect Diagrams
- Tools for identifying process elements (causes) that may affect an outcome. (Fishbone Diagram)
Pareto Charts
- 80/20 rule (roughly 80% of effects from 20% of causes)
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Description
Test your knowledge on the key principles of quality management, including the philosophies of Crosby and Deming, as well as the ISO standards. This quiz covers important concepts such as leadership's role, teamwork, and preventive actions in quality management. Perfect for those looking to strengthen their understanding of quality assurance practices.
