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Chapter 9

Chapter 9 BU385.docx

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Department
Business
Course
BU385
Professor
Paul Iyogun
Semester
Fall

Description
BU385 Chapter 9 – Management of Quality Week 6 Introduction -Quality – the ability of a good or service to consistently meet or exceed customer expectations Evolution of Quality Management -Quality control – monitoring, testing, and correcting quality problems after they occur -Quality assurance – providing confidence that a product’s quality will be good by preventing defects before they occur -Continuous improvement – never-ending improvements to key processes as part of total quality management Dimensions of Quality Quality of Goods -Dimensions of quality of goods – performance, aesthetics, special features, safety, reliability, durability, perceived quality, service after sale, and latent -Ex. Car Dimension Example Performance Everything works, ride, handling, leg room Aesthetics Interior design, soft touch, fit and finish, grade of materials used Special Features: Convenience Placement of gauges and controls High tech GPS, DVD player Safety Antilock brakes, airbags Reliability No breakdowns in first 5 years Durability Long life, resistance to rust and corrosion Perceived Quality Top-rated car Ex. Cadillac Service after Sale Warranty, handling of complaints, maintenance Latent Roadworthiness (satisfies government regulation) Service Quality -Ex. Car repairs Dimension Example Tangibles Clean facilities and neat personnel Convenience Convenient location of repair shop and open evenings and weekends Reliability Problem fixed right every time Responsiveness Willing and able to answer questions Time Reasonable wait time Assurance Staff knowledgeable about repair Courtesy Friendly and courteous treatment of customers by staff -Customers evaluate a good or service’s quality relative to their expectation Determinants of Quality -Determined by: 1. Product design 2. Process design 3. Production -Product design involves decisions about the characteristics and specifications of a product such as size, shape, and material -During process design, technical (product) characteristics should be translated into process characteristic and specifications -Conformance to design specifications during production – the degree to which produced goods or BU385 Chapter 9 – Management of Quality Week 6 services conform to the specifications of the designers Costs of Quality -Failure costs- costs caused by defective parts or products -Internal failures – failures discovered during production -External failures- failures discovered after delivery to the customer -Appraisal (detection) costs – costs of inspection and testing -Prevention costs – costs of preventing defects from occurring Quality Gurus W. Edwards Deming PDSA cycle – plan-do-study-act Joseph M. Juran -See Table 9.3 on p. 291 if needed Armand Feigenbaum -Quality at the source- every employee is responsible for inspecting his own work -See Table 9.4 and 9.5 on p. 292 if needed Philip B. Crosby -Zero defects – the philosophy that any level of defects is too high 1. Top management must demonstrate its commitment to quality and its willingness to give support to achieve good quality 2. Management must be persistent in efforts to achieve good quality 3. Management must spell out clearly what it wants in terms of quality and what workers must do to achieve that 4. Make it (or do it) right the first time Contributor Key Contributions Deming 14 points; special vs. common causes of variation, SPC, PDSA cycle Juran Quality if fitness-for-use; quality trilogy Feigenbaum Quality is a total field; quality at the source Crosby Quality is free; zero defects ISO 9001 -ISO = International Organization for Standardization -Promotes worldwide standards that will improve operating efficiency and productivity, and reduce costs -ISO 9001 – the international standard for a quality management system, critical to international business -The ISO 9001 review process involves considerable self-appraisal, resulting in problem identification and improvement -If a summary is required see Table 9.7 on p. 295 Hazard Analysis Critical Control Point (HACCP) -HACCP - A quality management system designed for food processors -Especially meat, poultry and fish processors -Deals with food safety, in particular biological, chemical, and physical hazards BU385 Chapter 9 – Management of Quality Week 6 -The HACCP team inspects various construction and/or sanitary aspects of the plant, equipment, and personnel -If there is any shortcoming, corrective action is undertaken -The following product and process background information is required: 1. Describe the product, source of raw material, product characteristics, ingredients, packaging, how the product is used, shelf life, where the product will be sold, labelling instructions, and distribution control 2. Draw the process flow diagram and number the steps of the process 3. Identify all the Regulatory Action Points (RAP) -There are three main HACCP steps: 1. Perform Hazard Analysis: For each ingredient/processing step, identify potential hazard(s); determine if the potential hazard is significant and provide your justification; provide preventive measures for significant hazards in process design 2. Determine the Critical Control Points (CCPs): For every ingredient/processing step with one or more significant hazard(s), if there will not be a subsequent step that would eliminate the hazard, then this step is a CCP 3. Establish the HACCP Plan: for each CCP/significant hazard, determine a control/preventive measure, the critical limits, the monitoring procedure, the corrective action and records, and the verification procedures Canada Awards for Excellence (CAE) and Total Quality Management (TQM) -CAE will recognize outstanding quality achievement by Canadian organizations, administered annually by the National Quality Institute (NQI) -The 6 main categories of the criteria are: leadership and governance, planning and environmental sustainability, customer/citizen/client focus, people focus and healthy workplace, process management, supplier/partner focus -In recent years, it is now divided into four stages called Progressive Excellence Program: Level 1: Foundation Level 2: Transformation Level 3: Role model Level 4: World class -Level 1 requires developing a mission statement, defining customers, planning training in management principles and practices, and performing an assessment of the above activities -Level 2
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