24F_Topic_7_-_Quality_Management

Chapter 6: Managing Quality at Algonquin College

Learning Objectives

• Understand quality management systems and tools for operations managers.

• Identify and describe quality dimensions.

• Explore the benefits, costs, and ethics of quality management.

• Identify and produce Total Quality Management (TQM) techniques and tools.

• Describe various quality problem-solving methodologies and opportunities for process improvements.

• Understand different international quality standards (ISO).

What is Quality?

• Definition: Ability of a product or service to consistently meet or exceed customer expectations.

• Quality Control: Monitoring, testing, and correcting quality issues post-occurrence.

• Quality Assurance: Ensuring product quality by preventing defects ahead of time.

Defining Quality

• Quality defined by the American Society of Quality: Totality of features and characteristics that satisfies stated or implied needs.

Quality and Strategy

• Managing quality is essential for:

  • Differentiation

  • Low cost

  • Response strategies

• Objective: Create a quality system that identifies and satisfies stated or implied needs.

Operations Managers Actions Regarding Quality System

• Establish Standards: Setting clear quality standards and objectives.

• Monitor Performance: Collecting data on production processes (defect rates, efficiency, satisfaction).

• Implement Corrective Actions: Addressing deviations from standards.

• Enforce Quality Standards: Conducting inspections and tests.

• Continuous Improvement: Using methods like Six Sigma or Total Quality Management (TQM).

Different Views on Quality

• User-based: Better performance and more features.

• Manufacturing-based: Conformance to standards—getting it right the first time.

• Product-based: Specific measurable attributes of the product.

Key Dimensions of Quality

1. Special Features

2. Performance: Meeting customer expectations.

3. Value: Perceived value to consumers.

4. Conformance: Adherence to specifications.

5. Durability: Product lifespan.

6. Reliability: Probability of malfunction.

7. Serviceability: Ease and speed of repair.

8. Aesthetics: Subjective quality perception.

Benefits of Good Quality

• Improved product quality.

• Better conformance to design specifications.

• Lower manufacturing and warranty costs.

• Enhanced reputation and increased market share.

• Higher profitability.

Costs of Quality

• Prevention Costs: Reduce potential defects.

• Appraisal Costs: Evaluate products/services.

• Internal Failure Costs: Defective products found internally.

• External Failure Costs: Defective products discovered post-delivery.

Hidden Costs of Quality

• High-quality materials, monitoring costs, employee training, and more.

• Risks include late fees, injuries, recalls, and loss of business.

Ethics and Quality Management

• Operations managers must ensure safe and healthy products.

• Poor quality can lead to injuries, lawsuits, and recalls.

• Business ethics: rules and standards for moral decision-making.

ISO International Quality Standards

• Developed by the International Organization of Standardization to ensure safety and reliability of products and services.

• Considered a strategic tool for businesses.

ISO 9001

• International standards for quality management systems, crucial for international business.

• Certification and re-registration cycles.

ISO 14000 Management Systems

• Focused on environmental management practices.

• Aims to establish environmentally-friendly business practices.

Total Quality Management (TQM)

• Principles: Continuous improvement, data-driven decisions, employee empowerment, supplier partnerships, and fail-safing.

• Involves everyone in the organization to improve quality and achieve customer satisfaction.

The TQM Approach

1. Identify customer needs.

2. Design a product/service that exceeds expectations.

3. Create processes to get it right the first time.

4. Track results over time.

5. Apply concepts to suppliers.

Problem Solving and Continuous Improvement

1. Define the problem and set goals.

2. Measure and collect data.

3. Analyze the problem.

4. Generate potential solutions.

5. Implement and monitor the solution.

PDSA Cycle

• Plan: Develop and document plans based on analysis.

• Do: Implement the plan on a small scale.

• Study: Evaluate the outcomes.

• Act: Standardize successful changes or revise if necessary.

Tools of TQM

• Flow Charts: Visual representation of processes.

• Check Sheets: Data collection methods.

• Histograms: Data frequency distribution.

• Pareto Charts: Identifying major causes of problems.

• Fishbone Diagrams: Process element identification.

• Scatter Diagrams: Relationship visualization between variables.

• Control Charts: Monitoring process variations over time.

Summary of TQM Tools

• Check Sheet, Scatter Diagram: Data recording and analysis tools.

• Fishbone Diagram: Detecting process causes.

• Pareto Chart: Identifying significant problems in quality issues.

• Flowchart: Outlining step-by-step processes.

• Statistical Process Control Chart: Visual representation of statistical control measures.

Group Activity

• Complete a Fishbone Diagram for a car engine failure case study.