CH 6
Chapter 6 & 6S Managing Quality in Integrated Operations & SCM
Learning Objectives
Interrelationships between Quality Types:
Explain how product quality, design quality, and conformance quality are interrelated.
7 Dimensions of Product Quality:
Identify each of the seven dimensions that constitute product quality.
Components of TQM System:
Explain how components of a Total Quality Management (TQM) system affect quality.
Costs of Quality:
Identify the costs of quality and how they change as quality improves.
Quality Management Tools:
Define and interpret results of key quality management tools including PDCA (Plan, Do, Check, Act), check sheets, Pareto analysis, scatter plots, and process control charts.
Role of IoT and AI:
Explain how IoT (Internet of Things) and AI (Artificial Intelligence) are utilized for quality improvement, monitoring, and control.
Quality Experiences
Reflecting on Quality:
Consider personal experiences where quality was perceived as either very good or poor.
Define what quality means in these contexts and explore underlying reasons for performance outcomes.
Product Quality
Definitions:
Product Quality:
The degree to which a product is fit for consumption.
Design Quality:
How well the design features align with customer requirements.
Conformance Quality:
The extent to which product specifications are met during production.
Design Quality
Customer Expectations:
Design quality is related to how effectively customer expectations are integrated into design specifications.
Design Specifications Include:
Materials (types and amounts), processes (specific steps and conditions), targets, and acceptable ranges (minimum and maximum).
Conformance Quality
Understanding Conformance Quality:
Conformance quality is determined by the degree to which design specifications are met.
There are variations in all processes; thus, there is an acceptable range (tolerance).
Example:
Shampoo Bottle Target:
Target: 10 oz with a tolerance range of 9.95 oz to 10.05 oz (i.e., 10 oz ± 0.05).
Process Capability:
Design processes must be capable of meeting specifications.
Metrics Used:
Measured by process capability metrics such as and .
Monitoring Process Changes:
Continuous monitoring is necessary to identify process variations or changes.
Examples of Causes for Variation:
New employee (requires training), worn machinery (needs maintenance), or a new supplier (collaborate for improvement).
Dimensions of Product Quality
Seven Dimensions of Quality:
Performance:
Operating characteristics of the product.
Features:
Unique attributes beyond basic functions.
Reliability:
Length of time before repair and dependability of performance.
Durability:
Overall lifespan of the product.
Aesthetics:
Look, feel, sound, smell, taste impacts on customer perception.
Support/Responsiveness:
Knowledge and speed of service.
Perceived Quality:
Reputation and customer perceptions of the brand and product, including empathy shown by staff.
Conformance:
Adherence to design specifications.
Examples of Dimensions of Quality
Durability:
Speed Queen washing machines last 20–25 years vs. 10–12 years for competitors.
Performance:
Cars accelerate from 0 to 60 mph in 2.2 seconds.
Reliability:
Amazon ensures consistent delivery times.
Features:
Chewy offers auto shipments for convenience.
Conformance:
Toyota focuses on minimizing defects during production.
Perceived Quality:
Designer handbags from Hermes can exceed $100,000 in value.
Aesthetics:
Starbucks enhances ambiance through improved lighting and reduced noise.
Support/Responsiveness:
Customer feedback highlights Chick-fil-A employees exceeding expectations.
How Roles Impact Product Quality
Marketing Managers:
Decide on market pursuits and product features, develop advertising messages, and establish new product testing programs.
Sales Managers:
Set sales targets and interact with customers to understand their needs.
Product Designers/Engineers:
Create product specifications and tolerances, design prototyping procedures.
Process Engineers:
Design manufacturing processes, choose technology, define quality assurance tests.
Finance & Accounting Managers:
Define equipment purchase restrictions, set facility utilization goals, measure efficiency.
Human Resources Managers:
Develop hiring criteria, training programs, and compensation schemes.
Manufacturing & Service Operations Managers:
Oversee process execution, design work policies, interact with customers, manage facilities and equipment.
Supply Managers:
Define purchasing requirements and manage supplier relationships.
Logistics Managers:
Choose transportation providers and oversee storage, packaging, and material handling.
Total Quality Management (TQM)
Definition:
TQM is a holistic strategy to instill quality awareness across an organization.
Key Points:
Product quality is defined by customer acceptance and usage.
Quality management requires organization-wide involvement, not just technical tasks.
Continuous quality improvement needs total commitment from all employees.
Costs of Quality
Types of Quality Costs:
Prevention Costs:
Investing in measures to prevent defects (design, training, improvements).
Appraisal Costs:
Inspection-related costs to assess quality (staff, tools, training).
Internal Failure Costs:
Costs due to defects found prior to delivery (rework, waste).
External Failure Costs:
Costs of defects found after delivery (lost sales, reputation, warranty issues, recalls, lawsuits).
Cost of Quality Examples
Precision Manufacturing Case Study:
Direct financial losses from quality problems: $600,000 due to external failures.
Internal failure costs: $300,000 from scrap, rework, and downtime.
Prevention costs: $100,000 for training and quality planning.
Appraisal costs: $150,000 for inspections.
Recommendations:
Increase investment in prevention and appraisal immediately.
Fresh Harvest Foods Case Study:
External failure costs due to recalls: $150,000.
Internal failure costs from disposed products: $300,000.
Total failure costs: $450,000.
Prevention costs: $180,000; Appraisal costs: $120,000.
Recommendations:
Commit to increased investment in prevention and appraisal efforts.
Boeing Quality and Safety
Discussion on why Boeing’s quality controls and safety checks may still miss critical defects, alongside the associated conformance quality factors and costs incurred in quality failures.
Poka-Yoke: Error Proofing
Definition:
Poka-yoke refers to mechanisms in place to prevent mistakes or make them noticeable when they occur.
Example:
Pick to light systems in distribution centers.
Quality Management Tools
PDCA Cycle:
Plan: identify the problem and outline actions for improvement.
Do: implement the plan.
Check: monitor the results.
Act: make corrective action and institutionalize changes.
Check Sheet:
Used for measuring defect types and incident occurrences over time.
Pareto Analysis:
Identifies crucial quality problems based on frequency; often illustrated with a cumulative percentage calculation.
Scatter Plot:
Visual representation of relationships in data, such as delivery delays vs. distance or shipment volume.
Process Control Charts:
Used to monitor processes ensuring that operations remain within defined limits.
Monitoring Processes using IoT & AI
IoT (Internet of Things):
Devices with embedded sensors for real-time data collection and monitoring, often in connection with AI for data evaluation.
Applications:
Predictive quality analytics regarding environmental conditions.
Automated inspections by analyzing product images for defects.
Review of Learning Objectives
Recap the interrelationships of product quality, design quality, and conformance quality.
Confirm understanding of the 7 dimensions of product quality.
Reiterate how components of a TQM system impact overall quality.
Recognize the evolving costs associated with quality enhancements.
Demonstrate ability to define and interpret key quality management tools (PDCA, check sheets, pareto analysis, scatter plots, and process control charts).
Discuss applications of IoT and AI in quality monitoring and improvement.