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PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 6-1
Outline
Global Company Profile:
Arnold Palmer Hospital
Quality and Strategy
Defining Quality
Total Quality Management
Tools of TQM
The Role of Inspection
TQM in Services
2014 Pearson Education, Inc. 6-2
Learning Objectives
When you complete this chapter you
should be able to:
1. Define quality and TQM
2. Describe the ISO international quality
standards
3. Explain what Six Sigma is
4. Explain how benchmarking is used in TQM
5. Explain quality robust products and
Taguchi concepts
6. Use the seven tools of TQM
2014 Pearson Education, Inc. 6-3
Managing Quality Provides a
Competitive Advantage
Arnold Palmer Hospital
Deliver over 12,000 babies annually
Virtually every type of quality tool is
employed
Continuous improvement
Employee empowerment
Benchmarking
Just-in-time
Quality tools
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 6-4
Quality and Strategy
Improved Increased
Quality Profits
Reduced Costs via
Increased productivity
Lower rework and scrap costs
Lower warranty costs
CATEGORIES POINTS
Leadership 120
Strategic Planning 85
Customer Focus 85
Measurement, Analysis, and Knowledge 90
Management
Workforce Focus 85
Operations Focus 85
Results 450
Internal Failure
Prevention
Appraisal
Quality Improvement
A Japanese character
that symbolizes a
broader dimension than
quality, a deeper process
than education, and a
more perfect method
than persistence
4. Act 1. Plan
Implement Identify the
the plan, pattern and
document make a plan
3. Check 2. Do
Is the plan Test the
working? plan
A discipline DMAIC
A set of 7 tools 6
2014 Pearson Education, Inc. 6 - 31
Six Sigma
1. Defines the projects purpose, scope, and outputs,
identifies the required process information keeping
in mind the customers definition of quality
2. Measures the process and collects data
3. Analyzes the data ensuring
repeatability and reproducibility DMAIC Approach
4. Improves by modifying or
redesigning existing
processes and procedures
5. Controls the new process
to make sure performance
levels are maintained
Hour
Defect 1 2 3 4 5 6 7 8
A /// / / / / /// /
B // / / / // ///
C / // // ////
Figure 6.6
Absenteeism
Figure 6.6
Manpower Machinery
Figure 6.6
Percent
A B C D E
Figure 6.6
Figure 6.6
Target value
Time
Figure 6.6
Machine
Manpower (hoop &
(shooter) Figure 6.7
backboard)
Cumulative percent
50 72
40
Number of
30
occurrences
20
12
10
4 3 2
0
Room svc Check-in Pool hours Minibar Misc.
72% 16% 5% 4% 3%
Causes and percent of the total
8
80%
1 2 3 4 5 6 7 11
9 10
20%
0% | | | | | | | | |
Lower control limit
1 2 3 4 5 6 7 8 9
Game number