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Operations Management by R. Dan Reid & Nada R. Sanders 2nd Edition Wiley 2005
PowerPoint Presentation by R.B. Clough - UNH
2005 Wiley
Competing on Quality?
2005 Wiley
Conformance to specifications
Support services
Psychological
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Quality often defined by perceptional factors like responsiveness, courtesy, friendliness, promptness, waiting time, consistency
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Cost of Quality
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What is TQM?
Integrated organizational effort designed to improve quality of processes at every business level
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Focus on Customer
Identify and meet customer needs Stay tuned to changing needs, e.g. fashion styles
Continuous Improvement
Employee Empowerment
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Team Approach
Teams formed around processes 8 to 10 people Meet weekly to analyze and solve problems
Studying practices at best in class companies Certifying suppliers vs. receiving inspection
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Benchmarking
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Also called the Deming Wheel after originator Circular, never ending problem solving process Tools typically taught to problem solving teams
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PDSA Details
Plan
Do
Evaluate current process Collect procedures, data, identify problems Develop an improvement plan, performance objectives
Implement the plan trial basis Collect data and evaluate against objectives
Study
Communicate the results from trial If successful, implement new process 2005 Wiley
Act
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PDSA
(continued)
Cycle is repeated
After act phase, start planning and repeat process
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Cause-and-Effect Diagrams Flowcharts Checklists Control Charts Scatter Diagrams Pareto Analysis Histograms
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Cause-and-Effect Diagrams
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Other
Weather Air traffic
poor announcement of departures weight an balance sheet late Delayed checkin procedure Confused seat selection Passengers bypass checkin counter Checking oversize baggage Issuance of boarding pass Acceptance of late passengers cutoff too close to departure time Desire to protect late passengers Desire to help companys income Poor gate locations
Material
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Procedure
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Flowcharts
Used to document the detailed steps in a process Often the first step in Process Re-Engineering
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Yes
Check Luggage
Yes
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Checklist
Simple data check-off sheet designed to identify type of quality problems at each work station; per shift, per machine, per operator
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Control Charts
Important tool used in Statistical Process Control Chapter 6 The UCL and LCL are calculated limits used to show when process is in or out of control
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Scatter Diagrams
A graph that shows how two variables are related to one another Data can be used in a regression analysis to establish equation for the relationship
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Pareto Analysis
Technique that displays the degree of importance for each element Named after the 19th century Italian economist Often called the 80-20 Rule Principle is that quality problems are the result of only a few problems e.g. 80% of the problems caused by 20% of causes
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Histograms
A chart that shows the frequency distribution of observed values of a variable like service time at a bank drive-up window Displays whether the distribution is symmetrical (normal) or skewed
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Malcolm Baldrige National Quality Award The Deming Prize ISO 9000 Certification ISO 14000 Standards
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Award named after the former Secretary of Commerce Regan Administration Intended to reward and stimulate quality initiatives Given to no more that two companies in each of three categories; manufacturing, service, and small business Past winners; FedEx, 3M, IBM, Ritz-Carlton Typical winners have scored around 700 points
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Given by the Union of Japanese Scientists and Engineers since 1951 Named after W. Edwards Deming who worked
Not open to foreign companies until 1984 Florida P & L was first US company winner
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ISO Standards
ISO 14000:
Certification developed by International Organization for Standardization Set of internationally recognized quality standards Companies are periodically audited & certified ISO 9000:2000 QMS Fundamentals and Standards ISO 9001:2000 QMS Requirements ISO 9004:2000 QMS - Guidelines for Performance More than 40,000 companies have been certified
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Lack of a genuine quality culture Lack of top management support and commitment Over- and under-reliance on SPC methods
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2005 Wiley