1. Chapter 6: Managing Quality BUSI 2016

2. Quality What is quality? In what ways does quality impact the organization? What are some of the reasons why we must consider quality? What conditions must be present in order to increase quality? How do we get quality?

3. Quality What is quality? Several definitions If a product and its features comply to the user needs Making products without defects Meeting a precise and measurable variable (benchmarks, standards) In what ways does quality impact the organization? Improved Response Flexible Pricing Improves Reputation Increased productivity Lower rework and scrap (defects) Lower warranty cost Ethics – recalls?

4. Quality What are some of the reasons why we must consider quality? Our reputation Product liability Global competition What conditions must be present in order to increase quality? Acceptance of defects Organizational culture and committment Understanding the principles of quality Engaged employees Measurement How do we get quality? Incrementally

5. Approaches – Continuous Improvement

6. Approaches – Six Sigma Program approach – consists of many QI projects High reliance on statistics Strategic, Process, Tools DMAIC Define Purpose Process Data Link to strategy Measure Collect data Analyze Use tools Method Improve Modify Process Control Ensure Benefit

7. Approaches – Employee Empowerment (EE) EE more closely related to improvements than “top-down” “when nonconformance occurs, the worker is seldom wrong.” Techniques Including employees in communication networks Developing open and supporting supervisors Responsibility lies with High Morale Teams and Quality Circles

8. Approaches - Benchmarking Benchmarking Just In Time (JIT) Taguchi Concepts Quality Robust Quality Loss Function

9. Quality Tools - Check Sheets

10. Quality Tools – Fishbone Diagram

11. Quality Tools – Scatterplots

12. Quality Tools – Pareto Charts “80% of a firm’s problems related to 20% of the causes”

13. Quality Tools – Flowchart Depict Sequence of tasks Decisions within a process Concurrent tasks Detect Repetition Unneeded tasks

14. Quality Tools – Control Chart (SPC)

15. Inspection Where and when? At your suppliers plant? Before acceptance of a delivery of supplies? Before a costly process? Before delivery? Before an irreversible process? ???

16. Inspection Source Inspection (or control) Employees Monitor their work at the source Poka-yokes, checklists Assign Inspection Points Before acceptance of a delivery of supplies? Before a costly process? Random?

17. Inspection Attributes vs Variables Attributes Defects (either “yes” or “no”) Variables Something measureable (weight, length, time, etc)

18. Statistical Process Control Application of Statistical Techniques to ensure adherence to standards Variation Natural – Can’t be eliminated Assignable – attributable to something. Must be IDENTIFIED and ELIMINATED

19. Statistical Process Control

22. Video https://www.youtube.com/watch?v=zvp8qmH3Eos