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OPM400 Final Exam ReviewChapter 9: Management of Quality Importance of Quality Quality is not a special feature but is an integral part of a good or service, as illustrated by competition, people buy into better quality. Defined as the ability of a product orexceed customer expectations. service to ...

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OPM400 Final Exam Review Chapter 9: Management of Quality Importance of Quality Quality is not a special feature but is an integral part of a good or service, as illustrated by competition, people buy into better quality. Defined as the ability of a product or service to consistently Meet or exceed customer expectations. Evolution of Quality Management Quality Control: is monitoring, testing, and correcting quality problems after they occur. Quality Assurance: ensuring a products quality will be good by preventing defects before they occur. 1930’s  development of stats analysis for sampling and quality control 1950’s quality movement started to evolve into quality assurance. 1970’s  Nasa and Pillsbury create a QMS (quality management system) (structured, documented system of policies, responsibilities and implementation plan for quality) 1980’s  Total Quality Management (TQM) emphasis on quality improvement in all levels of organization through continuous improvement. Dimensions of Quality Goods Performance, Aesthetics, Special features, Reliability, Durability , Perceived quality and Service after sales (up keep + maintenance repairs) { P.A.SF.R.D.PQ.SAS} Service Tangibles (condition of facilities, equipment, people), Convenience ( easy to access), Reliability (dependable and consistent), Timeliness (Speed of Service Delivery), Assurance(trust, confidence and service guarantee), Courtesy/Empathy ( Respect, emotional intelligence of staff) {T.C.R.T.A.CE} Determinates of Quality Product Design  Includes or excludes features that customer requires Production Process Design translating product characteristics into process specifications and tolerances. Production Degree to which goods and services conform to design specifications. Use Ease of use and user instruction + Support. {PD>PPD>P>U}

Benefits of Good Quality

COST OF QUALITY - Methodology used to determine the resources used to prevent poor quality, appraise the quality of products and deal with internal and external failures. Failure Cost: costs incurred by defective products or parts Internal Failure Cost: fixing problems during production External: fixing problems after delivery to customer Appraisal Cost: cost of inspection and testing Prevention Cost: quality training, planning, customer assessment and creating “standard operating procedures.

Failure Costs increase over time ^^^ Quality Gurus Deming: Deming delivered speeches on what he called "Statistical Product Quality Administration". Many in Japan credit Deming as one of the inspirations for what has become known as the Japanese post-war economic miracle of 1950 to 1960. Deming Prize.

Juran: began to apply the Pareto principle to quality issues

Feigenbaum: He devised the concept of Total Quality Control which inspired Total Quality Management (TQM). Crosby: response to the quality crisis was the principle of "doing it right the first time" (DIRFT). An organization that establishes good quality management principles will see savings returns that more than pay for the cost of the quality system: "quality is free". It is less expensive to do it right the first time than to pay for rework and repairs. Stewhart: the father of statistical quality control and also related to the Shewhart cycle.

Variation Types Deming’s Work dictated, there are two types of variation, Common and Special. Reduction of variation is important. Common Causes of variation: are random and not correctable; fate of production type shit. Variation predictable probabilistically, Phenomena that are active within the system, Variation within a historical experience base which is not regular, Lack of significance in individual high and low values Special Causes of Variation: correctable, New and unanticipated or previously neglected episode within the system, This kind of variation is usually unpredictable and even problematic, The variation has never happened before and is thus outside the historical experience base Quality Certifications: ISO9001: Set of international standards for a quality management and assurance system, critical to international business.  documentation and assessment process takes 12-18 months for certification  re-register every 3 years  100 countries and 180 technical committees  standard is reviewed and updated every 5 years.  focus on quality management and assurance, customer satisfaction, universality of processes. ISO14000: is a family of standards related to environmental management that exists to help organizations  minimize how their operations (processes, etc.) negatively affect the environment (i.e. cause adverse changes to air, water, or land); comply with applicable laws, regulations, and other environmentally oriented requirements;  continually improve in the above

HAACP (Hazards Analysis Critical Control Point): quality control system similar to ISO9001 designed for food processes  deals with food safety ( bio, chem and physical hazards. Main steps include  hazard analysis determination of the critical control points  creation of the HACCP plan Total Quality Management (TQM) A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. Continuous Improvement: make never-ending improvements to critical processes  Data Driven  Employee empowerment: giving workers responsibility and training  Team Approach  Suppliers: encourage partnership and long term relationships Fail Safing: designing in elements that prevent errors. The PDSA Cycle (Plan, Do, Study, Act)

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which is testing a change by developing a plan to test the change, carrying out the test (do), observing and learning from the consequences (study), and determining what modifications should be made to the test act). The cycle, also referred to as the Deming cycle

Six Sigma

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Equipme nt

 more sophisticated statistical approach to problem solving and quality improvement.  process for improving quality, reducing costs and increasing customer satisfaction.  statistically having no more than 3.4 defects per million  requires the use of certain tools and techniques.  steps are DMAIC: Define, Measure, analyze , improve and control. Basic Tools

Effect

Chapter 6: Process Design and Facility Layout Production/Inventory Strategies Make-to-stock strategy means producing and holding items in inventory for fast delivery to customers. This reduces purchase lead time for customers. This strategy is feasible for standardized products that have high predictable demand. Make-to-order strategy means producing a variety of products to customer specifications. This usually involves lowdemand customized products produced with complex but flexible processes resulting in long production lead time. Assemble-to-order strategy means producing a large variety of products after customer orders are received from few standardized sub-assemblies and components which are held in inventory. This results in fast delivery as well as high variety. The large number of possible options with hard-to-predict demand makes stocking finished products uneconomical. Final assembly is postponed until an actual order for the final product is received Process Types Job Shop Small scale, high variety of goods/services, high flexibility (surgery, hair salon) Batch Moderate volume and variety of goods/services, moderate flexibility (bread, cookies, beer) Repetitive High Volumes of Standardized goods/services Slight flexibility of equipment (automobiles, cell phones) Continuous very high volumes of non-discrete goods (gasoline, steel)

Types of Layouts Product (line) Layout Arranges production resources linearly according to the progressive steps by which a product is made ( think Mansteel rebar) Advantages are: Efficient and Easy to use 1. Minimal work-in-process inventories 2. Simplified accounting, purchasing and inventory control 3. Easier training and supervision 4. High degree of labour & equipment utilization = lower cost per unit Disadvantage are: Inflexible 1. Higher equipment cost 2. Dull, repetitive jobs = stress, low morale 3. Lack of flexibility in product or production rates 4. Work stoppage at any point ties up the whole operation

Process (Functional) Layout Arranges production resources together according to similarity of function. Used for intermittent processes (job-shop, batch, most services). Advantages are: Flexibility

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Less vulnerable to shutdown (from mechanical failure or absenteeism)

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Lower maintenance costs (and reduced investment in spare parts)

Disadvantages are: Inefficiency

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Scheduling can be difficult (= low equipment utilization rates)

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Setup, material handling, and Labour and costs can be high

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Increased work-in-process inventory

Cellular Layout Layout in which machines are grouped into a cell that can process items that have similar processing requirements Group technology The grouping into part families of items with similar design (size, shape and function) or manufacturing (type and sequence of operations required) characteristics Benefits: •

Faster processing time and reduced setup times

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Increased capacity

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Less material handling and work-in-process inventory

Conversion is a major undertaking Three primary methods: •

Visual inspection

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Examination of design and production data

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Production flow sequence and routing analysis

Batch Process

Process Flow Diagram For bread it looks like this: process is square items are triangle

Other layouts Warehouse layouts •

Important consideration: frequency of order

Retail layouts •

Important consideration: traffic flow

Office layouts •

Objective: optimize the physical transfer of information or paperwork

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New trend: create an image of openness (low rise partitions)

Restaurant Layout •

Important consideration: process workflow

Hospital Layout •

Important considerations: patient care & safety, easy access to critical resources such as X-ray, CAT scan, & MRI equipment

Measuring Process Performance...