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Chapter 9

Management of Quality

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Chapter 9: Learning Objectives • You should be able to: – Define the term quality

Chapter 9: Learning Objectives

You should be able to:

Define the term quality

Explain why quality is important and the consequences of

poor quality

Identify the determinants of quality

Describe the costs associated with quality

Describe the quality awards

Discuss the philosophies of quality gurus

Describe TQM

Give an overview of problem solving

Give an overview of process improvement

Describe and use various quality tools

overview of problem solving – Give an overview of process improvement – Describe and use various

Quality

What does the term quality mean?

Quality

is the ability of a product or service to consistently

meet or exceed customer expectations.

• Quality – is the ability of a product or service to consistently meet or exceed

Quality Contributors

Quality Contributors 9-4
Quality Contributors 9-4

Deming’s 14 Points

Deming’s 14 Points 9-5
Deming’s 14 Points 9-5

Determinants of Quality

Design

Ease of Use

Conformance to

Design

After-Sale

Service

Determinants of Quality Design Ease of Use Conformance to Design After-Sale Service 9-6

Costs of Quality

Failure Costs

Costs incurred by defective parts/products or faulty services.

Appraisal Costs

Costs of activities designed to ensure quality or uncover defects

Prevention Costs

All TQ training, TQ planning, customer assessment, process

control, and quality improvement costs to prevent defects from

occurring

TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring 9-7
TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring 9-7

Quality Awards and Certification

Quality Awards

Deming Prize

Malcolm Baldrige National Quality Award

Quality Certifications

ISO 9000

ISO 14000

ISO 24700

– Malcolm Baldrige National Quality Award • Quality Certifications – ISO 9000 – ISO 14000 –

Recent Baldrige Winners

2007

PRO-TEC Coating Co. small business

Mercy Health System healthcare

Sharp HealthCarehealthcare

City of Coral Springsnonprofit

U.S. Army Armament Research, Development, and Engineering Centernonprofit

2006

Premier, Inc.service

MESA Products, Inc.small business

North Mississippi Medical Centerhealthcare

2005

Sunny Fresh Foods, Inc.manufacturing

DynMcDermott Petroleum Operations Companyservice

Park Place Lexussmall business

Jenks Public Schoolseducation

Richland Collegeeducation

Bronson Methodist Hospital-- healthcare

Jenks Public Schools – education – Richland College – education – Bronson Methodist Hospital-- healthcare 9-9

Total Quality Management

T Q M
T
Q
M

A philosophy that involves everyone in an organization in a continual effort to improve

quality and achieve customer satisfaction.

that involves everyone in an organization in a continual effort to improve quality and achieve customer

TQM Culture

TQM Culture 9-11
TQM Culture 9-11

Six Sigma

Six Sigma

A business process for improving quality, reducing costs, and increasing customer satisfaction

Statistically

Having no more than 3.4 defects per million

Conceptually

Program designed to reduce defects

Requires the use of certain tools and techniques

– Conceptually • Program designed to reduce defects • Requires the use of certain tools and

Quality Tools

Seven basic quality tools:

Flowcharts

Checksheets

Histograms

Pareto Analysis

Scatter Diagrams

Control Charts

Cause-and-Effect Diagrams

Run Charts

– Pareto Analysis – Scatter Diagrams – Control Charts – Cause-and-Effect Diagrams • Run Charts 9-13

Methods for Generating Ideas

Methods for Generating Ideas • Brainstorming • Affinity Diagram • Quality circles • Interviewing •

Brainstorming

Affinity Diagram

Quality circles Interviewing

Benchmarking

5W2H

Ideas • Brainstorming • Affinity Diagram • Quality circles • Interviewing • Benchmarking • 5W2H 9-14

Operations Strategy

Quality is a strategic imperative for organizations

Customers are very concerned with the quality of goods and

services they receive

Quality is a never-ending journey

It is important that most organizational members understand and

buy into this idea

Customer satisfaction ≠ customer loyalty

Quality needs to be incorporated throughout the entire

supply chain, not just the organization itself

loyalty • Quality needs to be incorporated throughout the entire supply chain, not just the organization