C215 Operations Management Study Guide Total Quality Management & SQC | Accurate & Verified Answers to Pass Actual Exam

C215 Operations Management Study Guide Total Quality Management & SQC | Accurate & Verified

Answers to Pass Actual Exam

LC215 – Operations Management Study Guide



Chapter 5: Total Quality Management - Topics to know

✓ Five definitions of Quality

1. Conformance to specifications
 How well a product / service meets targets and tolerances defined by its designers
2. Fitness for use
 Evaluates performance for intended use
3. Value for price paid
 Evaluation of usefulness vs price paid
4. Support services
 Quality of support provided after the product/service is purchased
5. Psychological criteria
 Judgmental evaluation of what constitutes product/service quality

✓ Differences between Manufacturing and Servicing Organizations

Manufacturing focuses on tangible product features (can be seen, touched, directly managed)

 Conformance
 Performance
 Reliability
 Features
 Durability
 Serviceability
Service produces intangible products that must be experienced (cannot be seen or touched)

 Intangible factors
 Consistency
 Responsiveness
 Courtesy, friendliness
 Promptness, timeliness
 atmosphere

✓ Four Costs of Quality (See Figure 5:1)
Quality Control Costs (to achieve high quality)
1. Prevention costs – costs of preparing and implementing a quality plan
2. Appraisal costs – cost of testing, evaluating, and inspecting quality
Quality failure costs (high costs associated with poor quality)
3. Internal failure costs – costs of scrap, rework, and material losses
4. External failure costs – costs of failure at customer site, including returns, repairs and recalls

✓ Quality Gurus and their Contributions to TQM (See Table 5:2)

,Walter A. Shewhart

• Contributed to understanding of process variability.
• Developed concept of statistical control charts.

W. Edwards Deming
• Stressed management’s responsibility for quality.

• Developed “14 Points” to guide companies in quality improvement.
Joseph M. Juran

• Defined quality as “fitness for use.”
• Developed concept of cost of quality.

Armand V. Feigenbaum
• Introduced concept of total quality control.

Philip B. Crosby
• Coined phrase “quality is free.”

• Introduced concept of zero defects.
Kaoru Ishikawa

• Developed cause-and-effect diagrams.
• Identified concept of “internal customer.”

Genichi Taguchi
• Focused on product design quality.

• Developed Taguchi loss function.

 Dr Taguchi view of quality
o As conformance values move away from the target, loss increases as a quadratic
function

✓ The Philosophy of TQM (See Table 5:3)

, Focus on customer
o Identify and meet customer needs
o Quality is customer driven
o Stay tuned to changing needs (fashion styles etc)
 Continuous improvement
o Plan-do-study-act (PDSA) cycle
 Plan
 Evaluate current process
 Documents current procedures, collect data, identify problems
 Develop an improvement plan, performance objectives
 Do
 Implement the plan
 Study
 Collect data and evaluate against objectives
 Act
 Communicate the results from the trial
 If successful, implement new process
*****After act phase, start planning and repeat process*****

o Benchmarking – study how others do things
 Employee empowerment
o Empower all employees
o External verses internal customers
o Team approach
 Teams formed around processes
 Quality circles (8-10 people)
 Meet weekly to analyze and solve problems
 Use of quality tools
o Ongoing training on analysis, assessment and correction as well as the use of
implementation tools
o 7 tools of quality control
 Cause-and-effect diagrams

,  Often called fishbone diagram
 Focused on identifying potential causes of quality problems
 Used by quality control teams; brainstorming
 Used when trying to find potential causes for quality problems
 Flowcharts
 Schematic diagrams used to document the details steps in a
process
 Use when - How does process go from start to finish, evaluate
how much time something is taking, or able to combine steps
 Checklists
 Simple data check-off sheets
 Designed to identify type of quality problems at each work
station; per shift, per machine, per operator
 Control charts
 The UCL and LCL are calculated limits used to show when a
process is in or out of control; eg weight, width, volume
 Key tools used in statistical process control
 Used to make sure we are within specifications
 Scatter diagrams
 Graphs that show how two variables are related to one another
 Pareto analysis
 Used to identify quality problems based on their degree of
importance
 Named after a nineteenth-century Italian economist; often calls
the 80-20 rule
o Principle is that quality problems are the result of only a
few causes; 80% of problems are caused by 20% of
causes
 Histograms
 a chart that shows the frequency distribution of observed
values of a variable (eg service time at a bank drive up window)
 displays whether the distribution is symmetrical (normal) or
skewed
 service time at a drive up window