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2008 Prentice Hall, Inc.6 1Operations Operations ManagementManagementChapter 6 Managing QualityPowerPoint presentation to accompany PowerPoint presentation to accompany Heizer/Render Heizer/Render Principles of Operations Management, 7ePrinciples of Operations Management, 7eOperations Management, 9e Operations Management, 9e 2008 Prentice Hall, Inc.6 2OutlineGlobal Company Profile: Arnold Palmer HospitalQuality and StrategyDefining QualityImplications of QualityImplications of QualityMalcolm Baldrige National Quality Malcolm Baldrige National Quality AwardAwardCost of Quality (COQ)Cost of Quality (COQ)Ethics and Quality ManagementEthics and Quality Management 2008 Prentice Hall, Inc.6 3Outline ContinuedInternational Quality StandardsISO 9000ISO 9000ISO14000ISO14000 2008 Prentice Hall, Inc.6 4Outline ContinuedTotal Quality ManagementContinuous ImprovementContinuous ImprovementSix SigmaSix SigmaEmployee EmpowermentEmployee EmpowermentBenchmarkingBenchmarkingJust-in-Time (JIT)Just-in-Time (JIT)Taguchi ConceptsTaguchi ConceptsKnowledge of TQM ToolsKnowledge of TQM Tools 2008 Prentice Hall, Inc.6 5Outline ContinuedTools of TQMCheck SheetsCheck SheetsScatter Diagrams Scatter Diagrams Cause-and-Effect DiagramsCause-and-Effect DiagramsPareto ChartsPareto ChartsFlowchartsFlowchartsHistogramsHistogramsStatistical Process Control (SPC)Statistical Process Control (SPC) 2008 Prentice Hall, Inc.6 6Outline ContinuedThe Role of InspectionWhen and Where to InspectWhen and Where to InspectSource InspectionSource InspectionService Industry InspectionService Industry InspectionInspection of Attributes versus Inspection of Attributes versus VariablesVariablesTQM in Services 2008 Prentice Hall, Inc.6 7Learning ObjectivesWhen you complete this chapter you should be able to:Define quality and TQMDefine quality and TQMDescribe the ISO international Describe the ISO international quality standardsquality standardsExplain Six SigmaExplain Six SigmaExplain how benchmarking is used Explain how benchmarking is used Explain quality robust products and Explain quality robust products and Taguchi conceptsTaguchi conceptsUse the seven tools of TQMUse the seven tools of TQM 2008 Prentice Hall, Inc.6 8Managing Quality Provides a Competitive AdvantageArnold Palmer HospitalDeliver over 13,000 babies annuallyDeliver over 13,000 babies annuallyVirtually every type of quality tool is Virtually every type of quality tool is employedemployedContinuous improvementContinuous improvementEmployee empowermentEmployee empowermentBenchmarkingBenchmarkingJust-in-timeJust-in-timeQuality toolsQuality tools 2008 Prentice Hall, Inc.6 9Quality and StrategyManaging quality supports differentiation, low cost, and response strategiesQuality helps firms increase sales and reduce costsBuilding a quality organization is a demanding task 2008 Prentice Hall, Inc.6 10Two Ways Quality Improves ProfitabilityImproved Improved QualityQualityIncreased Increased ProfitsProfitsIncreased productivityLower rework and scrap costsLower warranty costsReduced Costs viaImproved responseFlexible pricingImproved reputationSales Gains viaFigure 6.1Figure 6.1 2008 Prentice Hall, Inc.6 11The Flow of ActivitiesOrganizational PracticesLeadership, Mission statement, Effective operating procedures, Staff support, TrainingYields: What is important and what is to beaccomplishedQuality PrinciplesCustomer focus, Continuous improvement, Benchmarking, Just-in-time, Tools of TQMYields: How to do what is important and to beaccomplishedEmployee FulfillmentEmpowerment, Organizational commitmentYields: Employee attitudes that can accomplishwhat is importantCustomer SatisfactionWinning orders, Repeat customersYields: An effective organization witha competitive advantageFigure 6.2Figure 6.2 2008 Prentice Hall, Inc.6 12Defining QualityThe totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needsAmerican Society for QualityAmerican Society for Quality 2008 Prentice Hall, Inc.6 13Different ViewsUser-based better performance, more featuresManufacturing-based conformance to standards, making it right the first timeProduct-based specific and measurable attributes of the product 2008 Prentice Hall, Inc.6 14Implications of Quality1.Company reputationPerception of new productsPerception of new productsEmployment practicesEmployment practicesSupplier relationsSupplier relations2.Product liabilityReduce riskReduce risk3.Global implicationsImproved ability to competeImproved ability to compete 2008 Prentice Hall, Inc.6 15Key Dimensions of QualityPerformanceFeaturesReliabilityConformanceDurabilityServiceabilityAestheticsPerceived qualityValue 2008 Prentice Hall, Inc.6 16Malcom Baldrige National Quality AwardEstablished in 1988 by the U.S. governmentDesigned to promote TQM practicesRecent winnersPremier Inc., MESA Products, Sunny Premier Inc., MESA Products, Sunny Fresh Foods, Park Place Lexus, North Fresh Foods, Park Place Lexus, North Mississippi Med
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