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Lecture Managing operations across the supply chain (2/e): Chapter 6 - Swink, Melnyk, Cooper, Hartley

Chapter 6 - Managing quality. This chapter include objectives: Explain product quality and quality management, explain roles of various business functions in determining product quality, describe core values and practices, perform cost analysis, compare and contrast various quality standards and certification programs, apply six sigma and DMAIC. | Copyright © 2014 McGraw-Hill Higher Education. All rights reserved. CHAPTER 6 Managing Quality McGraw-Hill/Irwin 1 Learning Objectives LO6-1 Explain product quality and quality management LO6-2 Explain roles of various business functions in determining product quality LO6-3 Describe core values and practices LO6-4 Perform cost analysis LO6-5 Compare and contrast various quality standards and certification programs LO6-6 Apply Six Sigma and DMAIC 6–2 2 Quality Definitions 6–3 Product Quality: fitness for consumption in meeting customers needs and desires Design Quality: match between designed features and customer requirements Conformance Quality: meeting design specifications Quality Management: organization wide quality focus LO6-1 3 Dimensions of Quality for Goods and Services 6–4 LO6-1 Quality 4 5–5 Functional Influence on Product Quality LO6-2 5 Quality Thought Leaders 6–6 LO6-3 ] 6 Cost of Quality (COQ) 6–7 Costs associated with inspection to assess quality levels (e.g. staff, tools, training, etc.) Costs from defects found before delivery to the customer (e.g., rework, scrap, etc.) Costs associated with defects found after delivery to customer (e.g., warranty, recall, etc.) Costs associated with preventing defects and limiting failure and appraisal costs (e.g., training, improvement projects, data gathering, analysis) Appraisal Costs Internal Failure Costs External Failure Costs Prevention Costs LO6-4 7 TQM Guiding Methodologies 6–8 LO6-5 8 Guiding Methodologies: PDCA 6–9 Figure 6-2 LO6-5 9 Guiding Methodologies: 6σ – Part I Six Sigma: quality improvement through elimination of defects and variation Standard deviation: statistical measure of variation 6–10 LO6-6 10 Guiding Methodologies: 6σ – Part II Sigma level of quality: 6–11 Lower specification Mean Upper specification Four sigma Six sigma Two sigma 1σ 1σ 1σ LO6-6 11 Guiding Methodologies: 6σ – Part III 6–12 Sigma Level Defects per Million 2σ 308,537 3σ 66,807 4σ 6,210 5σ 233 6σ 3.4 LO6-6 12 Managing Quality Summary 1. Quality management strives to achieve superior quality 2. It is important to integrate quality management into the firm’s strategic activities 3. Formal certifications confirm that a firm’s major processes have been documented and followed 4. Many firms use award guidelines to assess the performance of their quality management systems. 5. Service quality management must take into consideration the interpersonal interactions of service providers and customers. 6. Core TQM values are the critical aspects to make quality improvement a success. 6–13 13 | Copyright © 2014 McGraw-Hill Higher Education. All rights reserved. CHAPTER 6 Managing Quality McGraw-Hill/Irwin 1 Learning Objectives LO6-1 Explain product quality and quality management LO6-2 Explain roles of various business functions in determining product quality LO6-3 Describe core values and practices LO6-4 Perform cost analysis LO6-5 Compare and contrast various quality standards and certification programs LO6-6 Apply Six Sigma and DMAIC 6–2 2 Quality Definitions 6–3 Product Quality: fitness for consumption in meeting customers needs and desires Design Quality: match between designed features and customer requirements Conformance Quality: meeting design specifications Quality Management: organization wide quality focus LO6-1 3 Dimensions of Quality for Goods and Services 6–4 LO6-1 Quality 4 5–5 Functional Influence on Product Quality LO6-2 5 Quality Thought Leaders 6–6 LO6-3 ] 6 Cost of Quality (COQ) 6–7 Costs associated with inspection to assess quality levels (e.g. staff, .