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MGMT 4000

What is Total Quality Management (TQM)? a Japanese style approach to quality improvement through customer satisfaction.. improving processes, goods, services
What is the customer's perspective of quality? "fitness for use"... Ford Focus vs. Benz
What is Quality of Design the ability of the product as designed to satisfy or exceed customer requirements
What is Quality of Conformance the ability of manufacturing to meet design requirements
What are Project Quality Dimensions according to David Garvin's view of quality as expressed in his article about US and Jap air conditioners? Performance, Features, Reliability, Conformance, Durability, Serviceability, Aesthetics, Perceived Quality
What are Service Quality Dimensions according to David Garvin's view of quality as expressed in his article about US and Jap air conditioners? Tangibles, Service Reliability, Responsiveness, Assurance, Empathy
What is Concurrent Engineering? puts representatives from product design, key suppliers, process design, customer service, and marketing in a room to deliver what the customer wants in a way that permits high quality and low cost
What are the benefits of Concurrent Engineering? Reduces cost of Manufacturing, Improves Reliability, Reduces cost of Repairs
What is the Cost of Quality? Prevention, Appraisal, Failure
What is Internal Failure Scrap, Rework, Process failure, Process downtime, Price-downgrading
What is External Failure Customer complaints, Product return, Warranty, Product liability, Lost sales
Traditional Cost of Quality parameters 2-3% defects
Current Cost of Quality parameters 0% defects
Cost of Quality does not consider: Continuous Improvement of Processes, Quality's Impact on Revenue
Shewart or Deming Wheel PDCA Cycle: Plan, Do, Check, Act
Shewart schematic control chart
W. Edwards Deming Statistical Quality ControlThe Japanese credit Deming with teaching them SPC, 14 Points of Management, Create a constancy of purpose toward improvement of product and service with the aim to become competitive, stay in business and provide jobs
Joseph Juran Japanese credit Juran with teaching them management for quality
The Juran Trilogy Planning, Control, Improvement
Philip Crosby Zero Defects at Martin Company, 25% reduction in rejection and 30% reduction in scrap costs
Zero Defects Behavior and motivational aspects of quality improvement
Kaoru Ishikawa Japanese professor, Ishikawa Diagram (Cause and Effect Diagram) Fishbone Diagram
Ishikawa's Quality Theory Training, Continuous Improvement, Statistical Quality Control
Genichi Taguchi Taguchi Loss Function
Tolerance Stackup failures occur largely because components, within tolerance but not precisely on specification, don’t fit perfectly and cause excessive wear.
Armand Feigenbaum First Ph.D. in Quality, authored Total Quality Control, Initialized Total Quality control field
Shigeo Shingo Japanese Industrial Engineer, Poka-Yoke or Failsafing, authored Zero Quality Control
Poka-Yoke (failsafing) Rather than relying entirely on statistical control techniques, create a method that will not permit a part to be made that is not with tolerance.
The Malcolm Baldridge National Quality Award- American Way 6 Categories: Small Business (less than 500 employees) Large Manufacturers Service Sector Education Hospitals Non profits
The Malcolm Baldridge National Quality Award quality improvement categories- American Way 7 Categories: Leadership, Strategic Planning, Customer and Market Focus, Measurement Analysis and Knowledge, Human Resource Focus, Process Management, Business Results
Baldridge Qualified- American Way four to six examiners; one week; half on site, half preparing report; verify and clarify aspects of the application. Examiners report strengths and areas for improvement
Deming Award Categories- Japanese Way Policy, Organizations and Operations, Collecting Useful Information, Analysis, Planning for the Future, Education and Training, Quality Assurance, Quality Effects, Standardization, Control
Performing a task right the first time means: every step in the process of performing a task is successfully completed the first time around without failures or quality problems
Three main stages in quality management and process control (1) no quality management, (2) inspection, and (3) process control
Myth: Quality work takes more time Reality: Quality work requires a good and structured process, and then it takes less time
Myth: Quality costs more money Reality: High-quality work and a quality process cost less money because they result in less rework and fewer cycles, and they reduce the garbage plant
Myth: It is not possible to provide a quality service or quality product in large quantities Reality: It is possible to provide quality service and produce a quality product even in large quantities if the process is good, consistent, and reliable…and a quality process of selecting, training, and controlling the employees.
Six Sigma (1982 Motorola) -represents a well-thought-out packaging of quality tools and philosophies in an honest effort to provide rigor and repeatability to quality improvement efforts -cost-reduction-oriented than traditional continuous improvement.This made it popular w/ CEOs
Organization of Six Sigma champions, black belts, green belts, and in some situations, yellow belts
Sigma designates Standard Deviation
Six refers to the number of SD’s from the upper specification limit to the mean or from the lower specification limit to the mean
Effects of Six Sigma at Motorola eeded to improve its product designs and analytical techniques to achieve these goals
90% Quality Problems Basic tools of Quality
<10% Quality Problems Six Sigma
<1% Quality Problems Outside Specialist
Champion Work with black belts to identify possible projects
Master Black Belt Work with and train new black belts
Black Belts Committed full time to completing cost-reduction projects
Green Belts Trained in basic quality tools
DMAIC Define, Measure, Analyze, Improve, Control
Define Aspect of DMAIC Four Phases: Develop the business case Project evaluation Pareto analysis Project definition
Reasons for Six Sigma Failure Lack of Leadership by Champions, Misunderstood Roles and Responsibilities, Lack of Appropriate Culture for Improvement, Resistance to Change, Faulty Strategies for Deployment, Lack of Data
Statistical Thinking All work occurs in a system of interconnected processes All process have variation (The amount of variation tends to be underestimated) Understanding variation and reducing variation are important keys to success
Type I error Producer's Risk
Type II error Consumer's Risk
NonRandom Variation “Special Causes” Results from some uncommon event Dispersion and mean of the process are changing Process that is not repeatable Find a bad symptom, then “ask why 5 times” to get to the underlying core problem. jhb
Variable a continuous measurement such as weight, height, or volume.
Attribute is either counted or is a yes/no decision
Developing Process Charts Identify critical operations in the process, Identify critical product characteristics, Determine whether the critical product characteristic is a variable or an attribute. Select the appropriate statistical process control chart, Establish the control l
Just-In-Time From raw material to final customer, deliver each item just as needed. Drive continuous improvement by striving for faster flow of goods, which causes problems and forces one to deal with them.
Origin of Just-In-Time The idea for JIT came to Toyota VP Taichi Ohno while visiting a U.S. supermarket. Shigeo Shingo made JIT possible at Toyota by dramatically lowering setup times. Shingo is known today for SMED (Single Minute Exchange of Dies).
Just-In-Time in the USA brought to the states by the American Production and Inventory Control Society (APICS) with their Zero Inventory Crusade and by the big three automobile manufacturers, who adopted JIT and required their suppliers to adopt it.
Management Commitment means that managers are educated in the nature of the system they want implemented, actively involved in bringing about the implementation, and interested and concerned about the impact the system will have on workers.
Cards standardized containers, or even a square painted on the floor may be used to signal to a worker that it is time for him or her to produce one container of parts
Setup Time the time between finishing the last part of one order and starting the first part of the next.. reduction is crucial to smooth flow of materials
Long Setup Times Long setup times disrupt the smooth flow of parts through a facility and cause workers at other work centers to wait for an authorization to work (the Kanban signal)
Obsolete Measures of Performance Equipment utilization, Worker efficiency, Individual incentives, Costing based on direct labor hours
3 Rules of JIT Rule I: Work only as needed in terms of time, quantity, and specifications. Rule II: Work in small, appropriate, and smart batches. Rule III: Avoid waste and activities that do not add value to the organization.
Transfer Batch The number of units, number of work hours, or frequency of transfer between one work station and another.
Process (working or production) Batch The number of units (or labor hours) that are worked on continuously at a workstation. This is the amount of work between one setup and the next
Examples of Waste Overproduction Waiting times Unnecessary conveyance Rejected products in processing Surplus stock
Purpose of Phase Review is to establish agreement that all required work for that Phase has been done properly, and that the organization supports a decision for the project to proceed to the next phase, or conversely, to terminate the project
Why projects Fail... *Uninvolved Users/Customers *Poorly Defined End Products *Scope and the Multiplication of Interfaces *Uncontrolled Changes *Undisciplined Management System *Inappropriate Focus on Technology *Assuming 100% Availablity of Committed Resources *Poor S
Why forecast? Materials Staffing Equipment Physical plant
How long should the Forecast be? As long as the longest lead time for the thing to be planned. For example, power companies must plan 15 years ahead to build a new plant
Independent Demand Items finished goods (such as automobiles) and replacement parts (such as replacement tires) need to be forecast.
Dependent Demand Items component parts (such as tires included as original equipment) are derived from demand for their parent items.
Forecasting Techniques Moving averages Weighted Moving Averages Exponential Smoothing Decomposition
Forecast Accuracy measures how far, on the average a forecast is removed from actual demand
Forecast Bias measures the tendency of the forecast to be systematically either too high or too low
Supply Chain Defenition consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.
The value a Supply Chain generates: is the difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customer’s request. For most commercial supply chains, value will be strongly correlated with supply chain profitability.
Strategic decisions made by companies include: the location and capacities of production and warehousing facilities, products to be manufactured or stored at various locations, modes of transportation to be made available along different shipping legs, and type of information system to be utilized
Supply Chain Planning the supply chain’s configuration determined in the strategic phase is fixed. Companies start the planning phase with a forecast for the coming year of demand in different markets. Planning includes decisions regarding which markets will be supplied from
How is Strategic Fit achieved? Understanding the customer. Understanding customer needs helps the company define the desired cost and service requirements. Understanding the supply chain. There are many types of supply chains. A company must understand what the supply chain is desig
After product becomes Commodity: Demand has become more certain Margins are lower due to an increase in competitors and more competitive pressure Price becomes a significant factor in customer choice
Obstacles to proper balance between responsiveness and efficiency: Increasing variety of products Decreasing product life cycle lengths Increasingly demanding customers Fragmentation of supply chain ownership Globalization Difficulty executing new strategies
Paradigms the way we see the world - not in terms of our visual sense of sight, but in terms of perceiving, understanding, interpreting. - Stephen Covey -Paradigm shifts causes you to see the world differently.
Created by: 553587228
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