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Operations
Management
Topic 9 -
Quality Management
(TQM)
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Quality Management
Objectives
be able to understand modern
concepts of quality and dimensions
of quality
be able to discuss employee
involvement and J IT in Total Quality
Management
be able to describe basic quality tools
Introduction to ISO
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QUALITY is the ability of a
product or service to consistently
meet or exceed customer
expectations.
What Does the Term QUALITY
means?
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Traditional vs. Modern Concept of
Quality Control
Traditional Modern
One person, small
group
Include everyone from raw
material, productivity,
design, process, top
management
Find mistakes after
completion, at the end
of line
Find where the mistakes
might occur, before
completion
No specific methods,
based on experience
Use statistical; control
charts to monitor

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Dimension of Quality
Performance main characteristics
Special Features extra characteristics
Conformance how well corresponds to
expectation
Reliability consistency of performance without
breakdown
Durability useful life time
Safety safe to use as directed
Aesthetics nice to look at
Service After Sale handling of complaints, help
lines and checking customer satisfaction
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Consequences of Poor Quality
Reputation & image will suffer
Pay special attention to potential liability
due to injury, damage or even death
Rework have to be done, slow the process
to accommodate rework, high scraps
Increase cost of rework, scrap, repair &
replacement, legal expenses
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Responsibility for Quality
Top management
Design
Procurement
Production/operations
Quality assurance
Packaging and shipping
Marketing and sales
Customer service
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Cost of Quality
Internal Cost
Failure cost: results from production of defective
parts before delivery (rework, scrap, downtime)
Appraisal cost: evaluating products (lab testing,
inspector)
Prevention cost: reducing potential for defective
(training, awareness program)
External cost
occur after delivery (liabilities, warranty, sued by
customer)
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Quality Certification
ISO 9000
Set of international standards on quality management
and quality assurance, critical to international
business

ISO 14000
A set of international standards for assessing a
companys environmental performance

Must go through process documenting procedures
Then onsite visit to verify, award certificate & series of
audits

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Total Quality Management
New attitude towards quality using Three Philosophies
Continuous improvement KAIZEN
Involvement of everyone in the organization
Customer satisfaction

Expands the traditional view of quality beyond looking
only at the quality of the final product or service but to
look at quality of every aspect of the process

Not only on product, but also services e.g. banking,
hospital
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Elements of TQM
Utilizes education & training everyone
Encourages empowerment of the employees in
the work place, team approach
Promote understanding & fulfilling the needs of
customers
Define quality in term of customer requirement
Use statistical reasoning with data to solve
problems & to improve
View quality improvement as never ending
quest to improve the process
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Employee Involvement
In every step of production process,
involve directly with the system
Everyone must be responsible on their
work
Build communication network,
employees with supervisor (open
minded, supportive)
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Relationship between TQM and
Just-In-Time
J IT emphasizes continuous improvement
& enforces problem solving since design
to production stage; deliver just as
needed
Target less inventory, less scrap, rework,
reduce cost
Limits potential sources of error, give
early warning, produce in small batches
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TQM Lead to Lower Production
Cost
Emphasize the quality from supplier &
distributor
Reduce prevention cost ( less potential
for defective parts from employees)
Reduce cost of inspection
Reduce cost of rework, replacement
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Obstacles to Implementing TQM
Lack of:
Company-wide definition of quality
Strategic plan for change
Customer focus
Real employee empowerment
Emphasis on short-term financial results
Time to devote to quality initiatives
Leadership
View of quality as a quick fix
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The PDSA
Cycle
Plan
Do
Study
Act
PDCA
Check
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The Process Improvement Cycle
Implement the
Improved process
Select a
process
Study/document
Seek ways to
Improve it
Design an
Improved process
Evaluate
Document
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Basic Quality Tools
There are a number of tools that
can be used for problem solving
and process improvement
Tools aid in data collection and
interpretation, and provide the
basis for decision making

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Basic Quality Tools
1. Flowcharts
2. Check sheets
3. Histograms
4. Pareto Charts
5. Scatter diagrams
6. Control charts
7. Cause-and-effect diagrams
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FLOWCHART
Drive in
check price
self serve?
to pump
shut off
engine
walk to pay
station
yes
no
check card
transmit approved?
turn on
pump
yes
no
back
to car
pump
gas
walk to
booth
wait
employee
totals
charges
check
accuracy
prepare
receipt
sign
copy
copy to
file
copy to
wallet
return to car
on the road
again
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/
/



/ / /// /
// ///
// ////


///
//
/
Hour
Defect 1 2 3 4 5 6 7 8
A
B
C


/
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/

(a) Check Sheet: An organized method of
recording data
Figure 6.6
CHECK SHEETS
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Histogram
(f) Histogram: A distribution showing the
frequency of occurrences of a variable
Figure 6.6
Distribution
Repair time (minutes)
F
r
e
q
u
e
n
c
y

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PARETO ANALYSIS
80% of the
problems
may be
attributed to
20% of the
causes.
Smeared
print
N
u
m
b
e
r

o
f

d
e
f
e
c
t
s

Off
center
Missing
label
Loose Other
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Scatter Diagram
(b) Scatter Diagram: A graph of the value
of one variable vs. another variable
Absenteeism
P
r
o
d
u
c
t
i
v
i
t
y

Figure 6.6
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CONTROL CHART
970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL
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CAUSE-AND-EFFECT DIAGRAM
Effect
Materials Methods
Equipment People
Environment
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
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Benchmarking Process
Identify a critical process that needs
improving
Identify an organization that excels in
this process
Contact that organization
Analyze the data
Improve the critical process
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Lets Recap!
What are the dimensions of quality?
Whose responsible for quality?
Name some of the basic quality tools.
What are the consequences of poor
quality?
Which quality certificate involve with
environmental performance?

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Summary
Understand the Concept of Total
Quality Management
Significant Impact of Total Quality
Management in Modern Manufacturing
Next class, we will have some
calculations in Statistical Quality
Control