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MGT613 - Production / Operations Management - Lecture Handout 23

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MANAGEMENT OF QUALITY

After completing the lecture on Management of Quality, the POMA students should be able to understand the term quality and the importance of Quality. The student should be able to learn the Determinants of Quality, when they discuss Total Quality management also they should be able to identify the various costs associated with Quality. The students should also be able to appreciate the famous ISO 9000 and ISO 14000 quality systems, which are also actively seen in Pakistan. And last but not the least out of curiosity than academic interest the students should be aware of philosophies of
Quality Gurus.

Introduction

Quality Management can be understood only if we are able to understand the term quality, which is defined as

Quality is the ability of a product or service to consistently meet or exceed customer expectations.

Quality as determinant of Revenue has been often neglected, people tend to associate quality with high price of the product or item they want to purchase, historically speaking this is an incorrect statement. The debate between American and Japanese philosophy proves that quality is offered free of cost and is the prime source of revenue or profit.

  • When the American industry in 70s and 80s talked about cost cutting and productivity improvement they did not paid heed to Quality Management, which was the “Holy Grail” for the Japanese Industry.
  • When Japanese manufacturers entered and occupied the American Markets the only thing that made their products and services better than the Americans was the concept of Quality, which led to increase in the revenues and productivity of Japanese manufacturers.

Evolution of Quality Management

  1. Prior to Industrial Revolution, the skilled craftsman performed all stages of production. Pride in workmanship and reputation often formed the basis of producing a quality well. One or small group of workers was responsible for the entire product. After industrial revolution and specialization and division of labour each worker was then responsible for small portion of work. This led to loss in pride of workmanship and failure to produce quality products.
  2. Frederick Winslow Taylor the father of scientific management brought back the concept of quality by incorporating product inspection as well as focusing on the importance of manufacturing management.
  3. G.S. Radford introduced the concept of quality in the product design stage and linked high quality with increased productivity and lower costs.
  4. 1924 – W. Shewhart of Bell Technologies introduced the Statistical process control charts.
  5. 1930 – H.F.Dodge and H.G.Romig also of Bell Technologies introduced Tables for acceptance sampling.
  6. 1940’s - Universities, Bell Technologies and US Army were using Statistical sampling techniques for training engineers. American Society for Quality Control aka ASQC ( now ASQ) was formed during the same era
  7. 1950’s - Quality assurance/TQC (The era of Deming, Juran and Feigenbaum) which changed the concepts of quality for ever.
  8. 1960’s - Zero defects championed by Quality Guru Phillip Crosby. It produced the perfect missile for US army
  9. 1970’s - Quality assurance in services like health care, banking and travel industry.
  10. Late 1970s the quality assurance concept changed to Strategic quality approach, Harvard Professor David Garvin advocated preventing mistakes from occurring all together.

Quality Assurance vs. Strategic Approach

  • Strategic Approach is the SUPERLATIVE form of Quality Assurance
  • Quality Assurance places emphasis on finding and correcting defects before reaching market
  • Strategic Approach is Proactive, focusing on preventing mistakes from occurring and places greater emphasis on customer satisfaction

Quality Guru

The Quality Gurus are given more respect and recognized as Key Contributors to Quality Management.
Presented below is their contributions in a nut shell, students should learn to recognize these

  1. Walter Shewhart is also known as “Father of statistical quality control”
  2. W. Edwards Deming presented 14 points for quality management which focused primarily on common cause of variation.
  3. Joseph M. Juran is famous for his concept of “Quality is the fitness for use”.
  4. Armand Feigenbaum said, “Quality is a total field or total function”.
  5. Philip B. Crosby is famous for his philosophy that “Quality is free”.
  6. Kaoru Ishikawa- presented the “fish bone diagram” or “cause effect diagram”.
  7. Genichi Taguchi –robust design for designing products insensitive to change in environment. Taguchi’s contribution was, “Taguchi loss function”.

Dimensions of Quality

The concepts of dimensions of quality represent the fact that customers value a product keeping in mind different dimensions. Quality and Operations Managers come across customer perceptions relating to demand for durable, reliable, performance to a standard and that too in away that is aesthetically correct.

  1. Performance - main characteristics of the product/service
  2. Aesthetics - appearance, feel, smell, taste
  3. Special Features - extra characteristics
  4. Conformance - how well product/service conforms to customer’s expectations
  5. Reliability - consistency of performance
  6. Durability - useful life of the product/service
  7. Perceived Quality - indirect evaluation of quality (e.g. reputation)
  8. Serviceability - service after sale

Quality Dimensions

Service Quality

  • Tangibles
  • Convenience
  • Reliability
  • Responsiveness
  • Time
  • Assurance
  • Courtesy

Examples of Service Quality

Dimension Examples
1. Tangibles Were the facilities clean, personnel neat?
2. Convenience Was the service center conveniently located?
3. Reliability Was the problem fixed?
4. Responsiveness Was customer service personnel willing and able to answer questions?
5. Time How long did the customer wait?
6. Assurance Did the customer service personnel seem knowledgeable about the
repair?
7. Courtesy Were customer service personnel and the cashier friendly and courteous?