Documentos de Académico
Documentos de Profesional
Documentos de Cultura
CHAPTER 9
MANAGEMENT OF QUALITY
Teaching Notes
This chapter is devoted to quality management. It presents a definition of quality, discusses the
importance of quality and the determinations of quality, highlights the views of leading experts on
modern quality management, and describes the total quality management approach. A later chapter is
devoted to quality control procedures and quality improvement.
Total Quality Management (TQM) is a popular approach that:
1. Promotes understanding and fulfilling the needs of customers.
2. Defines quality in terms of customer requirements.
3. Views quality improvement as a never ending quest to improve the process.
4. Uses statistical reasoning with data to solve problems and to improve the process.
5. Emphasizes the role of leadership systems in improving quality.
6. Utilizes appropriate education and training to everyone in the organization in a
continuous fashion.
7. Views quality not only as a technical operational issue but also views it from a
strategic orientation that leads to enhanced long term planning.
8. Encourages empowerment of the employees in the work place in order to improve job
design, job performance and continuous improvement in all aspects of the organization.
TQM is an approach that views quality improvement as a never-ending quest to improve the
conversion process so that the level of customer satisfaction continually rises. Since the Japanese have
been so successful in continuously improving the quality of their products and services, Kaizen, or
continuous improvement, has become an extremely popular and widely accepted managerial approach
to improve quality on a daily basis. The old adage, “if it ain’t broke, don’t fix it,” has a rather hollow
ring to it these days. A more appropriate transformation today would be “just because it ain’t broke
doesn’t mean it can’t be improved.”
9-1
Chapter 09 - Management of Quality
The material in this chapter is divided into the following major topics
1. Overview of TQM
2. Problem Solving
3. Continuous Process Improvement
a. Process Mapping
b. Process Analysis
c. Process Redesign
4. Seven Quality Tools
a. Check Sheets
b. Flowcharts
c. Scatter Diagrams
d. Histograms
e. Pareto Charts
f. Control Charts
g. Cause and Effect Diagrams
5. Strategic Issues in implementing TQM
6. Plan-Do-Study-Act Cycle
7. Methods for Generating Ideas
a. Run Charts
b. Brainstorming
c. Quality Circles
d. Benchmarking
9-2
Chapter 09 - Management of Quality
1 Use of meta tags Conveys information to web crawlers about the site.
2 Home page title Communicates the content of the site.
3 A unique domain name Lessens the chance that many other domains will
show up in a search.
4 Search engine site registration Increases visibility on the web.
5 Server reliability Affects the percentage of time a site is “up.”
6 Speed of loading Some potential viewers will not be willing to wait if
loading is slow.
7 Bad links Frustrates visitors, and doesn’t give impression of a
site that is “current.”
8 Spelling errors Doesn’t make a good impression.
9 Visibility of contact information Eases ability to contact.
10 Indication of last update date Reveals how current the site information is.
11 A privacy policy A privacy policy is one of the most important
documents on any web site. It details how
information collected from visitors will be treated.
12 Presence of a search engine Allows visitors to easily find what they are looking
for on the site.
13 Translation to multiple languages Broadens the potential audience.
9-3
Chapter 09 - Management of Quality
b. Organizations must pay special attention to their potential liability due to damages or
injuries resulting from either faulty design or poor workmanship.
c. Poor quality can adversely affect productivity if rework is necessary or if the process
slowed down to accommodate an assembler trying to find a part that fits properly or by
having defects and scrap that reduce output.
d. Poor quality increases costs because of rework, scrap, repair and replacement, warranty
claims, discounts, customer field work such as travel and inspection, lost time, and legal
expenses.
4. Dimension Television Set
Performance On, off, sound, color, picture
Special features Remote control, inset picture, stereo sound
Reliability Infrequency of breakdowns and repair work
Durability Useful life in terms of time and use
Service after sale Handling of complaints, requests for information, repair
work (cost, time, reliability, courtesy and trust)
Conformance Meets or exceeds our expectations
Safety UL approved
Aesthetics Shiny black cabinet
9-4
Chapter 09 - Management of Quality
5. a. (Various responses.)
b. Among the possible reasons: Often these are the extremes - A customer is either very
satisfied or very dissatisfied, a customer receives something in return for a review, such as
discount coupons or a small monetary reward.
c. Student answers will vary.
9-5
Chapter 09 - Management of Quality
When the firm learns about the quality problem, the way in which it deals with it may be
considered unethical if the response to the problem is unreasonably slow, and/or if the
remedies are either nonexistent or considered to be inadequate.
7. Quality Gurus:
W. Edwards Deming: Deming is known as the senior quality guru. He was a statistics
professor at New York University. He went to Japan to assist the Japanese in improving
quality and productivity. As a result of his successful accomplishments in Japan, the Japanese
established the prestigious Deming prize, which is awarded annually to firms that distinguish
themselves with successful quality management programs. His work in quality was not
recognized in the U.S. until the 1980s. Finally, U.S. companies embraced his work. He
assisted many American companies in designing quality programs until his death in 1993.
Deming compiled a famous list of 14 points that he believed was the prescription needed to
achieve quality in an organization. He strongly believed the cause of inefficiency and poor
quality was due to the system and not to the employees. He also believed it was
management’s responsibility to correct the system in order to achieve the desired
improvements in quality and productivity.
The key elements of Deming’s 14 points are: constancy of purpose, continual improvement,
and profound knowledge. Profound knowledge has four key components:
a. An appreciation for a system.
b. A theory of variation (develop a system to reduce the variation in output and distinguish
between special and common causes of variation).
c. A theory of knowledge (knowledge is derived from theory and learning cannot take place
without theory of knowledge).
d. Psychology (management must find a way to motivate workers).
9-6
Chapter 09 - Management of Quality
9. Quality management emphasizes preventing mistakes or correcting them after they occur.
There is a direct trade-off between investment in quality programs and investment in failure
costs. If the quality is poor, the failure costs will be high. The productivity can be
significantly reduced, by reworking defective parts. Injuries can also occur because of
neglected machinery and defective output (internal failure costs). Increase in warranty costs,
service costs, repair costs, discount costs and payments to customers to offset the inferior
quality are examples of external failure costs. The emphasis on quality can lead to a
significant reduction of both internal and external failure costs, thereby reducing production
costs for the company.
10. TQM is a quest for quality that involves everyone in the organization. The key
elements of the TQM approach are continuous improvement and an emphasis on customer
satisfaction.
9-7
Chapter 09 - Management of Quality
Do. Implement the plan, on a small scale if possible. Document any changes that are made
during this phase. Collect data systematically for evaluation.
Study. Evaluate the data collection during the do phase. Check to see how closely the
results match the original goals of the plan phase.
Act. If the results are successful, standardize the new methods and communicate the new
method to all people associated with the process. Implement training for the new method.
Consider opportunities for replicating the same changes in other similar processes. If the
results are not successful, either revise the plan and repeat the process, or cease this
project.
14. Steps of Problem Solving:
a. Define the problem and establish an improvement goal
b. Collect data
c. Analyze the problem
d. Generate potential solutions
e. Choose a solution
f. Implement the solution
g. Monitor the solution to see if it accomplishes the goal.
15. a. Pareto Analysis: Assume that a company has just been bought by another
company. Based on an initial study, it has been established that the organization is
suffering from numerous quality problems. A committee is formed to study the quality
related problems. One of the first tasks of the committee is to enumerate the various
problems experienced by this company and identify the more important problems so
that we can take corrective action. In this context, the company is considering to use
Pareto analysis to differentiate the few important problems from many trivial
problems.
b. Histogram: A company is having problems controlling the quality of the
average diameter of the radial tires. The quality control manager of a tire manufacturing
company wants to determine the shape of the tire diameter distribution so that he can
determine whether excessively large diameters or excessively small diameters are
problematic. A histogram is drawn to shed light on this problem.
c. Flow chart: The company has moved one of its plants to a new location. In the
process of moving, the layout of the plant was altered. As a result of the alteration the
company is having difficulty locating material and controlling its operations. The plant
manager thinks there is a more effective way to determine the organization of the plant.
He proceeds by assigning the Production and Inventory Control manager to determine
where in the process problems occur. The Production and Inventory Control manager
utilizes a flow chart to diagram the steps of the manufacturing process through the plant.
After analyzing the results from the flow chart, the company will consider other options
for the plant layout.
9-8
Chapter 09 - Management of Quality
Taking Stock
1. The more a company spends on quality improvement, the higher the potential quality of the
product. In some cases, while improving quality, we can simultaneously reduce our cost
because of elimination of waste and duplicate effort. However, spending more money on
quality does not always translate into significant improvement of quality. If a company spends
too much money in trying to improve its quality without results, the cost of quality may
become unusually high. We also need to remember that the customer ultimately defines
quality. If we spend money to improve quality beyond the customers’ need, then it will not be
noticed and the money spent to achieve this level of quality could have been used for other
purposes.
2. Setting priorities for quality improvement need to vertically transcend the entire organization.
Therefore, at the macro level, upper management needs to be heavily involved in determining
the desired level of quality. Obviously, marketing department, due to its close contact with the
customers, can provide invaluable information when defining quality. Someone or some
people involved in strategic planning, due to his/her/their knowledge of competition should be
involved. Of course engineering, production, quality control departments/areas will not only
be able to answer technical questions about quality improvement but also will be in a position
to evaluate whether quality goal setting done at the macro level was reasonable. Finally,
accounting and financial personnel can provide valuable information about the cost of quality.
3. The technology had a profound impact on quality. Improvement in measurement systems
drastically improved the measurement of quality. Computer technology has enabled many
companies to perform on-line, real-time statistical process control, which enabled companies
to respond to quality problems faster. Due to technological improvements in computerized
design, the products are designed better, thus have significantly fewer quality problems. The
artificial intelligence systems forewarn potential problems before they occur.
9-9
Chapter 09 - Management of Quality
2. Customer retention is important because it typically costs a lot less to retain current customers
than it does to attract new customers. One possible reason that “satisfied customers” leave is
that “customer satisfaction” is not enough. Retention may require exceeding customer
expectations. Another possibility is that no matter what you do, you won’t be able to retain
some customers.
In some businesses, developing a breakdown of profits generated by each type of customer
(e.g., loyal versus tendency to leave) can be a good starting point. It may turn out that it is not
worthwhile to try to retain those customers. If it is worthwhile, try to find out why you can’t
retain them (i.e., what it would take to retain them), and respond accordingly.
9-10
Chapter 09 - Management of Quality
9-11
Chapter 09 - Management of Quality
Solutions
1. Checksheet
Work Type Frequency
Lube and Oil 12
Brakes 7
Tires 6
Battery 4
Transmission 1
Total 30
Pareto
12
7
6
2. Checksheet
Problem
Customer Type Noisy Failed Odor Warm Totals
Residential 10 7 5 3 25
Commercial 3 2 7 4 16
Totals 13 9 12 7 41
7 7
5
4
3 3
2
9-12
Chapter 09 - Management of Quality
3. 3
2
1
0
The run charts seems to show a pattern of errors possibly linked to break times or the end of the shift.
Perhaps workers are becoming fatigued. If so, perhaps two 10 minute breaks in the morning and again
in the afternoon instead of one 20 minute break could reduce some errors. Also, errors are occurring
during the last few minutes before noon and the end of the shift, and those periods should also be
given management’s attention.
7
6
5
4
3
2
1
0
Time
9-13
Chapter 09 - Management of Quality
5.
Person Lamp
Missing
Didn’t turn
completely on
Bulb
Burned Loose
out
Lamp fails
to light
Power off Not
plugged in
Outlet
defective Defective
Other Cord
6. Supplier
Insufficient
capacity
Inadequate
record keeping
Poor
scheduling
Late
deliveries
Weather
Traffic Wrong
information
Breakdown Missing
information
Scheduling Late to
Capacity supplier
Delivery Orders
system
9-14
7.
Methods Materials
Procedures Handling
Controls Suppliers
Tolerances Specifications
Sequences Tolerances
Chapter 09 - Management of Quality
Timing Controls
Consistency Environment
Poka-Yoke Quality
Consistency
Defective
9-15
Machine
Quality at Adjustment Parts
Organization
the Source
Culture Operation
Personnel Machine
Chapter 09 - Management of Quality
8.
a. Days absent
7
6
5
4
3
2
1
0
0 20 40 60
Age
b.
5
Error rate
3
2
1
0
0 60 70 80 90
9-16
Chapter 09 - Management of Quality
Start
9.
Gather and pack
the materials in
the book bag
Are
all items No
packed?
Yes
Travel to
the library
Find an adequate
place to study
Is
the
Yes
location too
crowded?
No
Study
Are
all items No
packed?
Yes
Stop
9-17
Cause and Effect Diagram
9-18
Section
of a College
Number and type Course
of other courses
# of sections offered at the Time and days
Total capacity scheduled of the week for
same time
other sections of
the course
Estimated # of
eligible students
Estimated # of that need the course Time of
students taking as a requirement the day
it as an elective Days of the week
Estimated # of
students taking it as
a required course
Enrollment Forecasting Time of Offering
Cause and Effect Diagram 11.
Night Type of
Ice vehicles
Sun light
Rain
Oncoming head lights Age of vehicle
Chapter 09 - Management of Quality
Slippery roads
Hills or curves
Condition of
Wind vehicle
9-19
Accidents
12.
Dimensions Examples
1. Tangibles Appearance of the pharmacy and the staff
2. Convenience Location of the pharmacy and the hours of operation
3. Reliability Is the prescription correctly filled?
4. Responsiveness Willingness to answers questions about the medication
5. Time How long did you have to wait?
6. Assurance Knowledge of the pharmacist in answering your questions
7. Courtesy Friendliness of the server
9-20
Chapter 09 - Management of Quality
9-21
Chapter 09 - Management of Quality
9-22
Chapter 09 - Management of Quality
Number of Store/Parking
9
12
11
10
9
8
7
6
5
4
3
2
1
0
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27 Time
12
11
10
9
8
7
6
5
4
3
2
1
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27 Time
Downward trend
9-23
Chapter 09 - Management of Quality
Number of Shortage
Problems per day
12
11
10
9
8
7
6
5
4
3
2
1
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27 Time
Upward trend
Runs Chart—Checkout Problems
Number of Checkout
Problems per day
12
11
10
9
8
7
6
5
4
3
2
1
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27 Time
12
11
10
Number of Waiting Line
9
8
Problems per day
7
6
5
4
3
2
1
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27 Time
9-24
Case: Tip Top Markets
Chapter
12
24
36
48
60
Frequency
Advertisements
coupons
Management
stock
Out of
Weather Lateness
Weather
Marketsof Quality
Supplier capacity
Demand
variability
Store and
conditions
parking lot
Business
cycle Backorders
9-25
speed,
charging
mistakes
Checkout
Pareto Chart
Shortages
(out of stock)
with
products
line service, Problems
quality of
9-26
Chapter 09 - Management of Quality
9-27