Lecture Operations and supply chain management: The Core (3/e) – Chapter 10: Quality management and six sigma

Lecture Operations and supply chain management - Chapter 10: Quality management and six sigma. The main goals of this chapter are to: Understand total quality management. discuss how quality is measured and the different dimensions of quality. explain the six sigma quality philosophy,...

Quality Management and Six Sigma Chapter 10 McGraw­Hill/Irwin         Copyright © 2013 by The McGraw­Hill Companies, Inc. All rights reserved Learning Objectives Understand total quality management Discuss how quality is measured and the different dimensions of quality Explain the Six Sigma quality philosophy Explain the define, measure, analyze, improve, and control (DMAIC) quality improvement process Show how to calculate the capability of a process Describe how processes are monitored with control charts Understand acceptance sampling concepts 10­2 Total Quality Management (TQM)   Total quality management - managing the entire organization so that it excels on all dimensions of products and services that are important to the customer Two fundamental operational goals Careful design of the product or service Ensuring that the organization’s systems can consistently produce the design 10­3 Quality Specifications and Quality Costs   Design quality - inherent value of the product in the marketplace Conformance quality degree to which the product or service design specifications are met 10­4 Costs of Quality 10­5 Six Sigma    A philosophy and set of methods companies use to eliminate defects in their products and processes Seeks to reduce variation in the processes that lead to product defects The name, “six sigma” refers to the goal of no more than four defects per million units 10­6 Six Sigma Methodology 10­7 DMAIC Cycle 10­8 Six Sigma Analytical Tools 10­9 Statistical Quality Control (SQC)   The quantitative aspects of quality management Processes usually exhibit some variation in their output 10­10 Process Capability    The ability of a process to consistently produce a good or deliver a service with a low probability of generating a defect Specification limits – range of variation that is considered acceptable by the designer or customer Process limits – range of variation that a process is able to maintain with a high degree of certainty Excel: Process Capability 10­11 Process Control Procedures     Concerned with monitoring quality while the product or service is being produced Statistical process control - testing a sample of output to determine if the process is producing items within a preselected range Attributes - quality characteristics that are classified as either conforming or not conforming Variable - characteristics that are measured using an actual value Excel: Statistical Process Contr 10­12 Creating p Charts 10­13 Acceptance Sampling     Performed on goods that already exist to determine what percentage of the products conform to specifications Executed through a sampling plan Results include accept, reject, or retest Purposes   Determine quality level Ensure quality is within predetermined level 10­14 Acceptance Sampling Dis advantag e s    Risks of accepting “bad” lots and rejecting “good” lots Added planning and documentation Sample provides less information than 100-percent inspection Advantag e s       Economy Less handling damage Fewer inspectors Upgrading of the inspection job Applicability to destructive testing Entire lot rejection (motivation for improvement) 1­15 ... Understand total quality management Discuss how quality is measured and the different dimensions of quality Explain the Six Sigma quality philosophy Explain the define, measure, analyze, improve, and. .. of the product or service Ensuring that the organization’s systems can consistently produce the design 10­3 Quality Specifications and Quality Costs   Design quality - inherent value of the. .. per million units 10­6 Six Sigma Methodology 10­7 DMAIC Cycle 10­8 Six Sigma Analytical Tools 10­9 Statistical Quality Control (SQC)   The quantitative aspects of quality management Processes