Operations Manager

Deliver a quality product to the right place at the right time and at the right price.

Quality Management
Highlights
The resounding success of Japanese manufacturing firms have invariably been linked to excellent practices in quality management in the last 30 years. Much of the progress that organisations made in quality and productivity management is attributed to the teachings of quality gurus such as Deming, Juran, Crosby, Taguchi, Shingo and Ishikawa. A good quality management system must
enable a manager to understand the qualitative attributes that influence a customer and have a method of translating these into unambiguous quantifiable parameters for design and manufacturing

Quality Management
Highlights
A total quality management programme consists of three components; Top management commitment, employee involvement through continuous improvement initiatives, training and skill development and investment in robust systems. Several tools and techniques are available that help in
highlighting the problems, identifying specific improvement opportunities, analysing problems and their root causes, and operation and strategic planning for building quality into products and services.

Alternative certification procedures and award mechanisms are available to recognise excellent quality management systems in organisations.

Is 99% accuracy good enough?

What Is Quality?
The degree of excellence of a thing

Fitness For Use

Ability of the product to consistently meet or exceed customer expectations.

Alternative definitions of Quality

Quality Revolution in the 1990s

Salient features
Alternative ideas about what constitutes good quality Newer methods to build quality in products and services New tools to assess performance of an organisation with respect to quality Changed roles of middle managers and supervisors from one of control to facilitation of the process of building quality into the products and services

Quality Management
Changing Perceptions
Yesterday It is often uneconomical to make quality improvements since it brings down productivity, increases cost and investment. Today Productivity goes up and cost comes down as quality goes up. This fact is Known, but only to a selected few.

Does Quality Matter?

Reputation Costs and market share Productivity Product liability International implications

Quality And Productivity

Productivity = output / input

Fewer defects increase output

Quality improvement reduces inputs

Quality Control Approaches

Statistical process control (SPC)
Monitors production process to prevent poor quality

Acceptance sampling
Inspects random sample of product to determine if a lot is acceptable

Variation
Common Causes
Variation inherent in a process Can be eliminated only through improvements in the system

Special Causes
Variation due to identifiable factors Can be modified through operator or management action

Cause & Effect Diagram

Inspection
Classification Error

CPU Chip
Received Defective Damaged in storage

Pins not Assigned Defective Pins

BAD CPU

Condition Maintenance Speed

Procedures and Methods Training

Equipment

Employees

Quality Specifications
Quality of Design
Refers to the intention of designer to include or exclude certain features.

Quality of Conformance
Refers to the degree to which product conforms to the intent of design.

Both aspects are important.

Best design cannot overcome poor workmanship. Good workmanship cannot compensate for poor quality of design.

Service Quality
1. Time & Timeliness
customer waiting time, completed on time

2. Completeness
customer gets all they asked for

3. Courtesy
treatment by employees

Service Quality
4. Consistency
same level of service for all customers

5. Accessibility & Convenience

ease of obtaining service

6. Accuracy
performed right every time

7. Responsiveness
reactions to unusual situations

Categories of Quality Costs

Quality Costing

Quality Costs

Control Costs

Failure Costs

Prevention

Appraisal

Internal

External

Costs Associated with Quality Management

Prevention costs Appraisal costs Internal failure costs External failure costs

Cost of Quality Some Assumptions

Failures are caused

Prevention is cheaper

Performance can be measured

Prevention Costs
Costs associated with preventing defects before they happen. Example
Costs of process design, Product and Service design, Employee training, Supplier programs, etc.

As quality increases this cost increases.

Appraisal Costs
Costs incurred in assessing the level of quality. Example
Costs of inspection, testing.

As quality increases this cost decreases.

Internal Failure Costs

Internal failures are those that are discovered during the production process. Example
Cost of reworking.

As quality increases this cost decreases.

External Failure Costs

External failures are those that are discovered after delivery to the customer. Example
Warranty costs, Loss of market share, Lawsuits from injury.

As quality increases this cost decreases.

Quality Assurance
Product/Service Design Transformation process Service after delivery

Elements of a Quality Assurance System

Understand customer needs Translate them to meaningful measures for the operating system Mechanisms for identifying quality problems Top Management Commitment to Quality Quality Certifications & Benchmarking exercises

Quality Assurance System

Documentation of all quality related initiatives for continuous learning & improvement

Tools & techniques for the employees For tracking problems to their root causes Identifying corrective measures

Employee involvement for continuous focus on quality improvement

Methods for preventing recurrence of problems

No

Quality Certifications & Awards

N a m e of th e A w ard /C ertification

A w ard in g A gen cy

A p p licab le to w h om

R em ark s

S om e w ell k n ow n Q u ality A w ard s U nion of Japanese N o geo graphical S cientists & restrictions for E ngineers (JU S E ) applicants. N ational Institute O pen only for M alco m B ald rige of S tandards & U S corporations N ation al Q u ality T echnolo g y A w ard (N IS T ), U S A E uropean O pen only for E u rop ean Q u ality Foundation for E uropean A w ard Q uality com panies M anagem ent (E FQ M ) C onfederation of A n y com pan y in C II-E X IM B u sin ess Indian Industries India can apply E xcellen ce A w ard (C II) Indian R ajiv G an d h i N ation al B ureau of Indian S tandards (B IS ) com panies can Q u ality A w ard apply D em in g P rize

M ore than one m a y be selected for the prize. O nly one w inner selected fo r each category O nly one w inner selected fo r each category

O nly one w inner selected fo r each category Four categories (L arge scale m anufacturin g, sm all scale m anufacturin g, service sector, B E S T O F A L L ). R ating agen cies assess and recom m end certification. C ertificates valid for three years.

S om e IS O 9000 series IS O 14000 series (E n viron m en tal issu es) Q S 9000 series (A u to m otive secto r) T L 9000 series (T eleco m m u n ication S ector) O H S A S 18001

w ell k n ow n q u ality International O rganization for S tandardization

certification s A n y com pan y can apply fo r the certification

A n association of national standards bodies

C om panies can apply w ith the respective national standards bo d y.

D eals w ith occupational health & safety m anagem ent

Demings 14 Points
1. Create constancy of purpose 2. Adopt philosophy of prevention 3. Cease mass inspection 4. Select a few suppliers based on quality 5. Constantly improve system and workers 6. Institute worker training 7. Instill leadership among supervisors

Demings 14 Points
8. Eliminate fear among employees 9. Eliminate barriers between departments 10. Eliminate slogans 11. Remove numerical quotas 12. Enhance worker pride 13. Institute vigorous training & education programs 14. Implement these 13 points