Course Title Production and Operations Management Course Code

Course Title: Production and Operations Management Course Code: MGT 362 Course Book: Operations Management 10 th Edition. By Jay Heizer & Barry Render 6 -1

Chapter 6: Managing Quality 6 -2

Summary u Quality and Strategy u Defining Quality u Implications of Quality u Malcolm Baldrige National Quality Award u Cost of Quality (COQ) u Ethics and Quality Management u International Quality Standards u ISO 9000 u ISO 14000 6 -3

Summary u Total Quality Management u Continuous Improvement u Six Sigma u Employee Empowerment u Benchmarking u Just-in-Time (JIT) u Taguchi Concepts u Knowledge of TQM Tools 6 -4

Employee Empowerment u Getting employees involved in product and process improvements u 85% of quality problems are due to process and material u Techniques u Build communication networks that include employees u Develop open, supportive supervisors u Move responsibility to employees u Build a high-morale organization u Create formal team structures 6 -5

Quality Circles u Group of employees who meet regularly to solve problems u Trained in planning, problem solving, and statistical methods u Often led by a facilitator u Very effective when done properly 6 -6

Benchmarking Selecting best practices to use as a standard for performance al 1. Determine what to benchmark 2. Form a benchmark team rn g e t n rkin i e Us hma ig c ’re b n e b you if nough e 3. Identify benchmarking partners 4. Collect and analyze benchmarking information 5. Take action to match or exceed the benchmark 6 -7

Best Practices for Resolving Customer Complaints Best Practice Justification Make it easy for clients to complain It is free market research Respond quickly to complaints It adds customers and loyalty Resolve complaints on first contact It reduces cost Use computers to manage complaints Discover trends, share them, and align your services Recruit the best for customer service jobs It should be part of formal training and career advancement Table 6. 3 6 -8

Just-in-Time (JIT) Relationship to quality: u JIT cuts the cost of quality u JIT improves quality u Better quality means less inventory and better, easier-to-employ JIT system 6 -9

Just-in-Time (JIT) u ‘Pull’ system of production scheduling including supply management u Production only when signaled u Allows reduced inventory levels u Inventory costs money and hides process and material problems u Encourages improved process and product quality 6 - 10

Just-In-Time (JIT) Example Work in process inventory level (hides problems) Unreliable Vendors Scrap Capacity Imbalances 6 - 11

Just-In-Time (JIT) Example Reducing inventory reveals problems so they can be solved Unreliable Vendors Scrap Capacity Imbalances 6 - 12

Summary u Total Quality Management u Continuous Improvement u Six Sigma u Employee Empowerment u Benchmarking u Just-in-Time (JIT) u Taguchi Concepts u Knowledge of TQM Tools 6 - 13