Chapter 9: Management of QualityChapter 9 focuses on the importance of quality. It discusses various concepts and tools that can be used to achieve high quality and continuous improvement. Broadly defined, quality refers to the ability of a product or service to consistently meet or exceed customer requirements or expectations. Different customers will have different expectations, so a working definition of quality is customer-dependent. When
discussing quality one must consider design, production, and service. In a culmination of efforts, it begins with careful assessment of what the customers want, then translating this information into technical specifications to which goods or services must conform. The specifications guide product and service design, process design, production of goods and delivery of services, and service after the sale or delivery. Show There are several costs associated with quality: Chapter 9 discusses key contributors of quality management and several awards for companies who possess traits of excellent quality management. This chapter defines total quality management (TQM) as a philosophy that involves everyone in the organization in a continual effort to improve quality and achieve customer satisfaction. This philosophy concentrates on continuous improvement and quality at the source. Six sigma is a concept that stresses improving quality, reducing costs, and increasing customer satisfaction. Lastly, this chapter gives several examples of quality tools, which include flowcharts, check sheets, histograms, pareto analysis, scatter diagrams, controls charts, and cause-and-effect diagrams. Successful management of quality requires that managers have insights on various aspects of quality. These include defining quality in operational terms, understanding the costs and benefits of quality, recognizing the consequences of poor quality and recognizing the need for
ethical behavior. Dimensions of Product Quality Dimensions of Service Quality The Determinants of Quality Having good quality is a competitive advantage against others who offer similar products or services in the marketplace.
Consequence’s include:
Failure to meet quality standards can damage a company’s image, reputation or lead to external criticism. In the manufacturing field, the quality of raw materials or equipment can affect the whole manufacturing process. If defects or poor quality are not detected on time, companies may face various costs to solve problems. Discovering and fixing problems on time reduces costs. Quality costs include prevention (prevent defects from occurring by planning system, training and control procedures), appraisal (ensure quality or uncover defects by inspections, testings and audits), and failure (caused by defective parts, products or by faulty services discovered during the production process – internal or after delivery to the customer – external). Three well- known awards given annually to recognize quality are: 1. Baldrige Award (given by the U.S. government) 2. European Quality Award 3. Deming Prize (established by the Japanese). There are also worldwide known quality certifications like ISO 9000 (which is a set of international standards on quality management and quality assurance, critical to international business) and ISO 14000 (a set of international standards for assessing a company’s environmental performance). Total quality management (TQM) is a constant pursuit of quality that involves everyone in an organization. The driving force is customer satisfaction; a key philosophy is continuous improvement. The Japanese use the term kaizen to refer to continuous improvement. Training of managers and workers in quality concepts, tools, and procedures is an important aspect of TQM. Teams are an integral part of TQM. Two major aspects of the TQM approach are problem solving and process improvement. Six-sigma programs are a form of TQM. A six-sigma improvement project typically has one or more objectives such as: reducing delivery time, increasing productivity, or improving customer satisfaction. They emphasize the use of statistical and management science tools on selected projects to achieve business results. There are seven basic quality tools that an organization can use for problem solving and process improvements. A flowchart is a visual representation of a process. As a problem-solving tool, a flowchart can help investigators in identifying possible points in a process where problems occur. The diamond shapes in the flowchart represent decision points in the process, and the rectangular shapes represent procedures. They show the direction of “flow” of the steps in the process.arrows A check sheet is a simple tool frequently used for problem identification. Check sheets provide a format that enables users to record and organize data in a way that facilitates collection and analysis. A histogram can be useful in getting a sense of the distribution of observed values. It is a chart of an empirical frequency distribution. Pareto analysis is a technique for focusing attention on the most important problem areas. The idea is to classify the cases according to degree of importance, and focus on resolving the most important, leaving the less important. A scatter diagram can be useful in deciding if there is a correlation between the values of two variables. It is a graph that shows the degree and direction of relationship between two variables. A correlation may point to a cause of a problem. A control chart can be used to monitor a process to see if the process output is random. It can help detect the presence of correctable causes of variation. It is a statistical chart of time-ordered values of sample statistic. A cause-and-effect diagram offers a structured approach to the search for the possible cause(s) of a problem. It is also known as a fishbone diagram because of its shape, or an Ishikawa diagram, after the Japanese professor who developed the approach to aid workers overwhelmed by the number of possible sources of problems when problem solving. This helps to organize problem-solving efforts by identifying categories of factors that might be causing problems. A run chart can be used to track the values of a variable over time. This can aid in identifying trends or other patterns that may be occurring.Important People in Quality
DIMENSIONS OF QUALITY
An emphasis on quality control heightened during WWII. Quality control then evolved to quality assurance and is now better known as a Strategic Approach, a tool for improving not only products but also processes and services. Quality can be thought of as the degree to which performance of a product or service meets or exceeds expectations. Quality should be measured differently for products and services, and therefore product and service quality are judged on their own set of dimensions. Responsibility for overall quality lies with top management. Top management must establish strategies, institute programs for quality, and motivate managers and workers. Most times managers are on a quest for the quality of an organization as a whole; this is referred to as Total Quality Management (TQM). TQM involves a continual effort for quality improvement by everyone in an organization. So in essence, for an organization to meet and exceed goals of quality control the entire supply chain needs to be involved. Consequences of poor quality Methods for Generating Ideas
Brainstorming is used to communicate thoughts and ideas without any criticism. Everyone has equal input and ideas are shared in order to facilitate problem solving. Responsibility for Quality Top Management– has the ultimate responsibility for quality. While they establish strategies for quality, they also institute programs to improve quality; guide, direct, and motivate
managers and workers; and set an example by being involved in quality initiatives. Sales can be lost when the products are not designed well and do not function correctly. Customers get turned off when that happens and may not want to risk buying the same brand again. Liability is an important area because there is the potential for damages or injures that could reflect badly on the company and then damage control will need to be done to repair the company image and reputation. Productivity can be slowed when there are defects and poor quality because time must be spent to redo and fix these issues. Costs can be reduced by up to five times if problems are caught early on in the process, compared to later in the production stages. Questions to the chapter 2.Whose key contribution included the cause-and-effect diagram (fishbone diagram)? 3.Which cost of quality involves the cost of preventing a defect from occurring? 4.Which failures are discovered after delivery to customer? 5.Which method for generating ideas is a tool used to organize data into logical categories? 6. Which of the following is a consequence of poor quality? 7. Which of the following is true of the benefits of good quality? 8. The cost
to fix a problem at the design or production stage, compared to at an earlier stage costs how many times more? 10. Productivity is closely related to which of the following?: 11. What are the three costs that are associated with quality? 12. Which of the following are two major aspects of the TQM approach? 13. What is the Japanese term for continuous improvement? 14. What are the four basic steps in the PDSA cycle? 15. Which basic quality tool is focused on resolving the most important problem? 16. Which of the following is a Determinant of Product Quality? 17.
Which of the following doesn’t refer to the term “Ease of Use”? 18. Which is NOT a Consequence of Poor Quality 19. The consequences of poor quality products or services may result in: 20. One of the things Designers should consider when making a product is… 21. Although
closely associated with quality, this name is not on the list of quality gurus: 22. Which name is associated with management responsibility? 23. Which quality pioneer compiled a list of 14 points that he believed were imperative to achieve quality in an
organization? 24. Which one of these is a tool for gathering data? 25. Which one of these is a tool for problem solving? 26. Which of
these people are not considered one of the “gurus” who mapped out some of the foundations of modern quality management? 27. What is Six Sigma best defined as: 28. Which of the following is not a dimension of product quality? 29. Philip B. Crosby identified key points in his concept of zero defects, which of the below is one of his key points? 30. Reducing one or more steps in a supply chain by cutting out one or more intermediaries is known as: 31. What are the key
elements of Deming’s 14 points? 32. By how many times is it more costly to fix a problem at the customer end compared to the design stage? 33.Costs of activities designed to ensure quality or uncover defects are costs associated with? 35. What is known as performance, aesthetics, special features, conformance, reliability, durability, perceived quality, and serviceability? 36.Which technique uses groups of people to share thoughts and ideas without any
criticism? 37. Benchmarking uses which of the following to improve standards? 38.Which methods asks 7 questions to improve processes? 39. Control charts have which of the following features? 40. A Scatter diagram is useful when there is 41.What is NOT the primary determinants of qualiy, which a product or a service
successfully satisfies its intended purpose? 42.What is the correct definition of an appraisal cost? 43.Which quality tool can be useful in getting a sense of the distribution of observed values? 44. What step comes after “develop performance measures and collect data” and before “generate potential solutions” in the TQM problem-solving process? 46. Who is known as the “father of statistical quality control?” 47. Which of the following isNOTa dimension of quality? 49. A statistical chart of time-ordered values of a sample statistic is a: 50. What question is not included in the 5W2H approach? 51. Which are included in the product quality? 52. What are the determinants of quality? 53.Which of the following is not a consequence of poor quality? 54. The appraisal costs
means: 55. A set of international standards for assessing a company’s environmental performance is 56.
Which tool uses a diagram of the steps as a visual representation of a process? 57. A run chart shows performance over 59. All of the following are affected by poor quality EXCEPT — One more choice needed. 60. The Baldrige Award is an award given out for doing what? 61. Dimensions of quality include: Performance, Special Features, Reliability, Durability, Perceived quality, and ___. 62. Which quality tool uses a technique for classifying problem areas according to degree of importance, and focusing on the most important. 63.) Which quality management principle(s) form the basis of the latest version of ISO 9000: A.) A customer focus 64.) Which is the annual award given by the US government to recognize quality achievements of US companies? A.) European Quality Award 65) Problem solving, material and product losses, scrap, and downtime are examples of: A) Appraisal costs 66. One of the quality dimentions is this same for product and service. Which one? 67. Six sigma is a process to : 68. a) Juran 69. a) Liability 70. a) Plan Direct Study Act 71. a) Deming Prize 72. a) Prevention Costs Research the three well-known awards (Baldridge Award, European Quality Award, Deming Prize) given annually to recognize quality. Pick one of the awards and one of the main evaluation criteria. Compare and Contrast this evaluation criterion for Apple and Microsoft. How would these two organizations score on this quality dimension? How would you suggest improving the quality related to this criterion based on the material that is covered in this section? Which costs are likely to decrease as a result of better quality except?All of the following costs are likely to decrease as a result of better quality except. The Correct Answer Is: C. Maintenance costs.
What costs decrease as quality increases quizlet?lowered cost from increased quality comes from costs dropping due to firms increased productivity and lower rework, scrap and warrant costs.
What are the four major categories of quality costs?The four major types of quality costs are prevention, appraisal, internal failure, and external failure.
Which of the following cost is not a cost of quality?Solution: Cost Of Quality include Prevention Cost, Failure Cost, Appraisal cost, Internal Failure and External Failure Cost. Build Cost is not the part of cost of Quality.
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