badm567_07_Quality & Six Sigma (reduced)
Page 1: Introduction
Course details for BADM 567: Fundamentals of Operations Management.
Focus on Quality Management & Introduction to Six Sigma.
Page 2: Objectives
Recognize the multiple aspects of quality.
Understand principles underlying total quality management.
See role of quality management initiatives in organizations.
Distinguish between different costs of quality.
Understand role of CI programs including Six Sigma and implementations.
Page 3: Defining Quality and its Dimensions
Discuss the concepts needed to articulate quality effectively.
Page 4: Defining Good Quality
Brainstorm words to define "good quality" for products and services used daily.
Page 5: Good Quality from Consumers' Perspective
Excellence
Features
Perfection
Consistency
Exceeding expectations
Value
Durability
Page 6: Good Quality from Producers' Perspective
Providing a good and usable product.
Total customer service and satisfaction.
Eliminating waste.
Availability.
Compliance with policies and procedures.
Doing it right the first time.
Delighting customers.
Page 7: Business Relevance of Better Quality
Improved quality design leading to:
Higher perceived value.
Lower costs.
Increased sales revenues.
Higher profitability.
Page 8: Dimensions of Quality – Product Performance
Product performance: Primary characteristics (e.g., gas mileage).
Features: Supplements to basic performance (e.g., built-in Wi-Fi).
Conformance: Meeting specified tolerances (e.g., bandwidth).
Page 9: Dimensions of Quality – Long Term
Durability: Extent of use before deterioration.
Serviceability: Ease or experience of repairs.
Reliability: Probability of product breakdown.
Page 10: Dimensions of Quality – Subjective Aspects
Aesthetics: Individual preferences related to human senses.
Perceived Quality: Reputation and user reviews.
Page 11: Defining Quality
Quality definition according to Deming: Translating future user needs into measurable characteristics to ensure satisfaction at a feasible price.
Page 12: Evolution of Quality & Quality Management Systems
Overview of the evolution of quality management practices.
Page 13: Comprehensive Approach to Quality
Quality should consider fitness for purpose, customer features, and be defect-free. Includes:
Internal process customers.
Entire product lifespan (design, production, distribution).
Page 14: 1980s Quality Revolution in U.S.
Key figures:
Walter A. Shewhart: Continuous improvement cycles.
W. Edwards Deming: Management responsibility.
Joseph M. Juran: Planning for quality.
Genichi Taguchi: Experimental design.
Kaoru Ishikawa: Quality circles.
Armand V. Feigenbaum: Total quality control.
Philip B. Crosby: Zero defects.
Page 15: Quality Management Systems Overview
Quality Management Systems involve systematic efforts to innovate work processes.
Page 16: Quality Certification Standards
Verification via ISO standards (ISO 9000, ISO 14000).
U.S. FDA Good Manufacturing Practices, Bureau of Indian Standards.
Page 17: Quality Awards
Recognize excellence in quality management:
Deming Award.
Malcolm Baldrige National Quality Award.
EFQM Award.
Shingo Prize.
Page 18: Evolution of Quality Practices and Systems
Overview from the 1970s to 1990s:
Quality Circles, TQM, ISO 9000, Agile, SPC, Lean, Six Sigma, etc.
Page 19: Reasons for Constant Renewal in Quality
Resistance to change, need for cross-functional work, publicizing improvements, operational metrics usage, and control vs. innovation.
Page 20 & Page 21: Links to Other Business Functions
Marketing: Customer expectations.
Finance: Value assessment of changes.
HRM: Employee development.
R&D, Engineering, Information Systems, and Analytics also play crucial roles.
Page 22: Six Sigma Overview
Business improvement approach aiming to eliminate defects in processes for financial returns.
Page 23: Lean Management Overview
Aims to create smooth flow of goods/services through value streams by reducing waste.
Page 24: Structure of Quality Management Programs
Continuous Improvement Initiative governs modification via operational processes.
Page 25: Organizational Elements for Quality Management
Key components include committed leadership, cross-functional views, total systems perspective, and measurement.
Page 26: Employee Involvement Elements
Essential for quality improvement initiatives:
Goal setting.
Continuous learning and empowerment.
Page 27: Introduction to Costs of Quality
Examines various cost categories associated with quality management.
Page 28: Cost of Quality Overview
Illustrates costs associated with good vs poor quality: prevention, appraisal, internal failure, and external failure.
Page 29-30: Costs associated with Good Quality
Prevention Costs: Quality planning, product design, training.
Appraisal Costs: Inspections and tests throughout production stages.
Page 31-32: Expenses from Poor Quality
Internal Failure Costs: Non-conformance before delivery (scrap, rework).
External Failure Costs: Defects found post-delivery (complaints, returns).
Page 33: Traditional View of Total Cost of Quality
Total Cost of Quality consists of costs from failures and costs from prevention/appraisal.
Page 34: Changes to the Model
Discussion on unrecognized synergies and cost versus quality perceptions.
Page 35: Justification for Continuous Improvement
Emphasizes proactive quality management initiatives.
Page 36-37: Potential Payoff from Continuous Improvement
Realizing cost impacts and illustrating potential quality improvements through CI initiatives.
Page 38-41: Cost Components of Company X
Illustration of different expense categories, calculating impacts related to quality improvement initiatives.
Page 42-43: Sales and Costs with Continuous Improvement
Reflects the costs of quality as part of total sales and the impact of CI elements.
Page 44-45: Comparison of Costs without vs with CI
Shows significant differences in costs across quality components with and without CI initiatives.
Page 46: Recap of Key Concepts
Highlights on quality aspects, total quality management principles, roles in organizations, and understanding costs of quality.
Page 47: Recap of Improvement Programs
Final recap focusing on continuous improvement theories, elements, and distinctions between process improvement types.
Page 48: Process Perspective
Defines process and introduces Process Thinking for organizational flows.
Page 49-60: Origin, Initiative and Results of Six Sigma
Details history, initiatives taken by Motorola, results achieved, and adoption across organizations.
Page 61-68: Philosophy and Metrics of Six Sigma
Explanation of Six Sigma and its terminology; emphasizes defect rates, performance standards, and the importance of controlling variations.