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Chap 6 - Managing Quality Motorola: was 6000 rejects

*Definitions of QualityUser-Based: What consumer says it isWhy people buy a certain vehicleManufacturing-Based: Degree to which a product conforms to design specificationtolerances, engineeringProduct-Based: Level of measurable product characteristicMPG, HP, 0-60 speed, 60-0 speedReliability

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Chap 6 - Managing Quality Motorola: was 6000 rejects

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    1. Chap 6 - Managing Quality *Motorola: was 6000 rejects/million, 5 years latter 40/million Education program - quality and statistical process control Focused on uniformity and consistency Employee participation and employee teams Managing quality differentiates your product Bose - High quality Nucor Steel - low cost Dell Computer - response *Quality leads to Market share f6.1 p170 Lower price due to less re-work, scrap, and warranty costs leads to: Improved response times and Improved reputation leads to: Greater market share leads to Economies of Scale leads to lower price Loop TQM - begins with an organizational environment that fosters quality

    2. *Definitions of Quality User-Based: What consumer says it is Why people buy a certain vehicle Manufacturing-Based: Degree to which a product conforms to design specification tolerances, engineering Product-Based: Level of measurable product characteristic MPG, HP, 0-60 speed, 60-0 speed Reliability & durability, Conformance, Serviceability, Appearance, Perceived quality Reasons Quality is Important - Company reputation, Product liability, Global implications (Yugo) International Quality Standards Z8101-1981 (Japan) *ISO 9000 series (Europe/EC) for products sold in Europe ISO 14000 series (Europe/EC) recycling & labeling Life-cycle assessment - ie computers ASQC Q90 series; MILSTD (U.S.) Malcom Baldridge National Quality Award (U.S.)

    3. TQM Encompasses entire organization, from supplier to customer W. Edwards Deming, 14 points, t6.1 p175, post WWII Japan Died in 1993 **5 Concepts of TQM 1. Continuous improvement people, equipment, suppliers, material, procedures Other names - Kaizen (Japanese), Zero-defects, Six sigma eliminate variables that effect quality 2. Employee empowerment Getting employees involved in product & process improvements - communication 85% of quality problems are due to process & material - find a better way to build it Solve problems at the lowest level - Let workers make decisions Build teams & quality circles (Saturn ads)

    4. 3. Benchmarking target to compare your performance similar organizations, but not necessarily the same industry best practices of other firms LL Bean p177, Warehouse - common sense 4. Just-in-time (JIT) produce or deliver goods JIT vendor partnership programs Reduces all inventory levels - costs Immediately exposes bad quality, eliminate variables Good quality supply - no need for large inventory Holding cost verse volume discount 5. Taguchi Techniques *Most quality problems result from product & process design Produce products uniformly regardless of manufacturing conditions 6. Knowledge of tools Every one must be trained in the techniques of TQM Everyone must see the big picture and have an organizational focus

    5. 7 Tools for TQM, f6.5 p180 a) Check Sheets, tallies, cross-tabs b) Scatter Diagrams, x-y plot c) Cause and Effect Diagram (Fish-Bone) f6.6 p181 Used to find problem sources/solutions Main causes for problem as bones Problem sub-areas on each bone. d) Pareto Chart p182 a method of organizing errors, problems or defects Joseph M Juran, post WWII Japan, 80% of a firms problems are a result of only 20% of the causes* e) Flow Charts - graphically represent a process or system f) Histograms - graphical representation of a frequency distribution. Used of goodness of fit analysis, determine how the data is distributed.

    6. g) Statistical Process Control Chart quality measurement on the y axis, time on x axis. Determine if the process is in control. Is the machine working properly. Uses statistics & control charts to tell when to adjust process f 6.7 p184 Create standards, upper & lower limits, UCL, LCL, target value Take corrective action (if necessary) The Role of Inspection *Inspection - measuring tasting, touching, weighing, testing Examining items to see if an item is good or defective Inspection may destroy product Detecting a defective product does not correct deficiencies in process or product *Quality can not be inspected into a product Source Inspection - doing the job properly, employee empowerment Poka-yoke - foolproof - avoid errors & provide quick feedback, Fries example p185

    7. TQM In Services Service quality is more difficult to measure than for goods Service quality perceptions depend on expectations vs. reality When people brag about restaurants or movies Focus group research, what is quality service 10 determinants in t6.4 p187 When technology has evened out, product distinction can be found in service, copiers, computers. Liability Issues Expectations for quality levels are higher than ever. Tolerance are tighter pill bottles, p188 food poisoning recall done immediately.

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