Quality And Performance
PowerPoint Slides by Jeff Heyl
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
For Operations Management, 9e by
Krajewski/Ritzman/Malhotra
© 2010 Pearson Education
5–1
Costs of Quality
A failure to satisfy a customer is considered a defect
Prevention costs
Appraisal costs
Internal failure costs
External failure costs
Ethics and quality
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
5–2
Total Quality Management
Customer satisfaction Figure 5.1 – TQM Wheel
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
5–3
Total Quality Management
Customer satisfaction
Conformance
to specifications
Value
Fitness
for use
Support
Psychological
impressions
Employee involvement
Cultural
change
Teams
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
5–4
Total Quality Management
Continuous improvement
Kaizen
A
philosophy
Not
unique to quality
Problem
solving process
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
5–5
The Deming Wheel
Plan
Act
Do
Study
Figure 5.2 – Plan-Do-Study-Act Cycle
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
5–6
Six Sigma
Process average OK; too much variation
Process variability OK; process off target
X
X
X
X
X
X X
X X
XX XX
X
X X
X
X
Reduce spread Process on target with low variability
Center process X
XX
X
X
X XX
Figure 5.3 – Six-Sigma Approach Focuses on Reducing Spread and Centering the Process
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
5–7
Six Sigma Improvement Model
Define
Measure
Analyze
Improve
Control
Figure 5.4 – Six Sigma Improvement Model
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
5–8
Acceptance Sampling
Application of statistical techniques
Acceptable quality level (AQL)
Linked through supply chains
Copyright © 2010 Pearson Education, Inc.