8/11/2013

1

2011 Pearson Education,
Inc. publishing as Prentice
Hall
When you complete this chapter you should be able to:
1. 1. 1. 1. Define quality and TQM Define quality and TQM Define quality and TQM Define quality and TQM
2. 2. 2. 2. Describe the ISO international quality Describe the ISO international quality Describe the ISO international quality Describe the ISO international quality
standards standards standards standards
3. 3. 3. 3. Explain Six Sigma Explain Six Sigma Explain Six Sigma Explain Six Sigma
4. 4. 4. 4. Explain how benchmarking is used Explain how benchmarking is used Explain how benchmarking is used Explain how benchmarking is used
5. 5. 5. 5. Use Use Use Use the seven tools of TQM the seven tools of TQM the seven tools of TQM the seven tools of TQM
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Improved
Quality
Increased
Profits
Increased productivity Increased productivity Increased productivity Increased productivity
Lower rework and scrap costs Lower rework and scrap costs Lower rework and scrap costs Lower rework and scrap costs
Lower warranty costs Lower warranty costs Lower warranty costs Lower warranty costs
Reduced Costs via Reduced Costs via Reduced Costs via Reduced Costs via
Improved response Improved response Improved response Improved response
Flexible pricing Flexible pricing Flexible pricing Flexible pricing
Improved reputation Improved reputation Improved reputation Improved reputation
Sales Gains via Sales Gains via Sales Gains via Sales Gains via
Figure 6.1 Figure 6.1 Figure 6.1 Figure 6.1
2011 Pearson Education,
Inc. publishing as Prentice
Hall
User User User User- -- -based based based based: better performance, more : better performance, more : better performance, more : better performance, more
features, value, fitness for use, features, value, fitness for use, features, value, fitness for use, features, value, fitness for use,
support support support support
Manufacturing Manufacturing Manufacturing Manufacturing- -- -based based based based: conformance to : conformance to : conformance to : conformance to
standards, making it right the first standards, making it right the first standards, making it right the first standards, making it right the first
time time time time
Product Product Product Product- -- -based based based based: specific and : specific and : specific and : specific and
measurable attributes of the product measurable attributes of the product measurable attributes of the product measurable attributes of the product
2011 Pearson Education,
Inc. publishing as Prentice
Hall
The totality of features and The totality of features and The totality of features and The totality of features and
characteristics of a product or service characteristics of a product or service characteristics of a product or service characteristics of a product or service
that bears on its ability to satisfy stated that bears on its ability to satisfy stated that bears on its ability to satisfy stated that bears on its ability to satisfy stated
or implied needs or implied needs or implied needs or implied needs
American Society for Quality American Society for Quality American Society for Quality American Society for Quality
Fundamentals of Operations
Management 4e
The McGraw-Hill Companies, Inc., 2003
66
Quality in Goods Quality in Goods Quality in Goods Quality in Goods
o Performance Performance Performance Performance
o Features Features Features Features
o Reliability Reliability Reliability Reliability
o Durability Durability Durability Durability
o Conformance Conformance Conformance Conformance
o Serviceability Serviceability Serviceability Serviceability
o Aesthetics Aesthetics Aesthetics Aesthetics
o Perceived quality Perceived quality Perceived quality Perceived quality
Quality in Services Quality in Services Quality in Services Quality in Services
o Tangibles Tangibles Tangibles Tangibles
o Reliability Reliability Reliability Reliability
o Responsiveness Responsiveness Responsiveness Responsiveness
o Competence Competence Competence Competence
o Courtesy Courtesy Courtesy Courtesy
o Credibility Credibility Credibility Credibility
o Security Security Security Security
o Access Access Access Access
o Communication Communication Communication Communication
o Understanding the customer Understanding the customer Understanding the customer Understanding the customer
8/11/2013
2
2011 Pearson Education,
Inc. publishing as Prentice
Hall
1. 1. 1. 1. Company reputation Company reputation Company reputation Company reputation
Perception of new products Perception of new products Perception of new products Perception of new products
Employment practices Employment practices Employment practices Employment practices
Supplier relations Supplier relations Supplier relations Supplier relations
2. 2. 2. 2. Product liability Product liability Product liability Product liability
Reduce risk Reduce risk Reduce risk Reduce risk
3. 3. 3. 3. Global implications Global implications Global implications Global implications
Improved ability to compete Improved ability to compete Improved ability to compete Improved ability to compete
Fundamentals of Operations
Management 4e
The McGraw-Hill Companies, Inc., 2003
68
Cost Category
Prevention costs Costs associated with the development of
programs to prevent defectives from
occurring in the first place (e.g., training,
quality improvement programs)
Appraisal costs Costs associated with the test and
inspection of subassemblies and products
after they have been made.
Failure costs Costs associated with the failure of a
defective product.
Internal failure costsproducing
defective products that are identified
before shipment.
External failure costsproducing
defective products that are delivered to
the customer.

2011 Pearson Education,
Inc. publishing as Prentice
Hall
Established in 1988 by the U.S. Established in 1988 by the U.S. Established in 1988 by the U.S. Established in 1988 by the U.S.
government government government government
Designed to promote TQM practices Designed to promote TQM practices Designed to promote TQM practices Designed to promote TQM practices
Recent winners include Recent winners include Recent winners include Recent winners include
Honeywell Federal, Honeywell Federal, Honeywell Federal, Honeywell Federal, Midway USA, Midway USA, Midway USA, Midway USA,
AtlantiCare AtlantiCare AtlantiCare AtlantiCare, ,, , Heartland Health, Heartland Health, Heartland Health, Heartland Health, Cargill Corn Cargill Corn Cargill Corn Cargill Corn
Milling, PRO Milling, PRO Milling, PRO Milling, PRO- -- -TEC Coating Co., City of Coral TEC Coating Co., City of Coral TEC Coating Co., City of Coral TEC Coating Co., City of Coral
Springs, Premier Inc., Sunny Fresh Foods, Springs, Premier Inc., Sunny Fresh Foods, Springs, Premier Inc., Sunny Fresh Foods, Springs, Premier Inc., Sunny Fresh Foods,
Park Place Lexus, Richland College Park Place Lexus, Richland College Park Place Lexus, Richland College Park Place Lexus, Richland College
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Applicants Applicants Applicants Applicants are evaluated on: are evaluated on: are evaluated on: are evaluated on:
Categories Categories Categories Categories Points Points Points Points
Leadership Leadership Leadership Leadership 120 120 120 120
Strategic Planning Strategic Planning Strategic Planning Strategic Planning 85 85 85 85
Customer & Market Focus Customer & Market Focus Customer & Market Focus Customer & Market Focus 85 85 85 85
Measurement, Analysis, and Knowledge Measurement, Analysis, and Knowledge Measurement, Analysis, and Knowledge Measurement, Analysis, and Knowledge
Management Management Management Management 90 90 90 90
Workforce Focus Workforce Focus Workforce Focus Workforce Focus 85 85 85 85
Process Management Process Management Process Management Process Management 85 85 85 85
Results Results Results Results 450 450 450 450
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Table 6.1 Table 6.1 Table 6.1 Table 6.1
Leader Leader Leader Leader Philosophy/Contribution Philosophy/Contribution Philosophy/Contribution Philosophy/Contribution
W. Edwards Deming W. Edwards Deming W. Edwards Deming W. Edwards Deming 14 Points for Management 14 Points for Management 14 Points for Management 14 Points for Management
Joseph M. Joseph M. Joseph M. Joseph M. Juran Juran Juran Juran Top management Top management Top management Top management
commitment, fitness for use commitment, fitness for use commitment, fitness for use commitment, fitness for use
Armand Armand Armand Armand Feigenbaum Feigenbaum Feigenbaum Feigenbaum Total Quality Control Total Quality Control Total Quality Control Total Quality Control
Philip B. Crosby Philip B. Crosby Philip B. Crosby Philip B. Crosby Quality is Free, zero defects Quality is Free, zero defects Quality is Free, zero defects Quality is Free, zero defects
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Operations managers must deliver Operations managers must deliver Operations managers must deliver Operations managers must deliver
healthy, safe, quality products and healthy, safe, quality products and healthy, safe, quality products and healthy, safe, quality products and
services services services services
Poor quality risks injuries, lawsuits, Poor quality risks injuries, lawsuits, Poor quality risks injuries, lawsuits, Poor quality risks injuries, lawsuits,
recalls, and regulation recalls, and regulation recalls, and regulation recalls, and regulation
Organizations are judged by how they Organizations are judged by how they Organizations are judged by how they Organizations are judged by how they
respond to problems respond to problems respond to problems respond to problems
All stakeholders much be considered All stakeholders much be considered All stakeholders much be considered All stakeholders much be considered
8/11/2013
3
2011 Pearson Education,
Inc. publishing as Prentice
Hall
ISO 9000 series (Europe/EC) ISO 9000 series (Europe/EC) ISO 9000 series (Europe/EC) ISO 9000 series (Europe/EC)
Common quality standards for products sold in Common quality standards for products sold in Common quality standards for products sold in Common quality standards for products sold in
Europe (even if made in U.S Europe (even if made in U.S Europe (even if made in U.S Europe (even if made in U.S.). The standard is .). The standard is .). The standard is .). The standard is
being accepted worldwide. being accepted worldwide. being accepted worldwide. being accepted worldwide.
2008 update places greater emphasis on 2008 update places greater emphasis on 2008 update places greater emphasis on 2008 update places greater emphasis on
leadership, and leadership, and leadership, and leadership, and customer requirements and customer requirements and customer requirements and customer requirements and
satisfaction satisfaction satisfaction satisfaction
ISO 14000 series (Europe/EC) ISO 14000 series (Europe/EC) ISO 14000 series (Europe/EC) ISO 14000 series (Europe/EC)
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Core Elements: Core Elements: Core Elements: Core Elements:
Environmental management Environmental management Environmental management Environmental management
Auditing Auditing Auditing Auditing
Performance evaluation Performance evaluation Performance evaluation Performance evaluation
Labeling Labeling Labeling Labeling
Life cycle assessment Life cycle assessment Life cycle assessment Life cycle assessment
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Advantages: Advantages: Advantages: Advantages:
Positive public image and reduced Positive public image and reduced Positive public image and reduced Positive public image and reduced
exposure to liability exposure to liability exposure to liability exposure to liability
Systematic approach to pollution Systematic approach to pollution Systematic approach to pollution Systematic approach to pollution
prevention prevention prevention prevention
Compliance with regulatory requirements Compliance with regulatory requirements Compliance with regulatory requirements Compliance with regulatory requirements
and opportunities for competitive and opportunities for competitive and opportunities for competitive and opportunities for competitive
advantage advantage advantage advantage
Reduction in multiple audits Reduction in multiple audits Reduction in multiple audits Reduction in multiple audits
2011 Pearson Education,
Inc. publishing as Prentice
Hall
An approach for An approach for An approach for An approach for integrating quality integrating quality integrating quality integrating quality at at at at all all all all functional functional functional functional
areas and areas and areas and areas and levels levels levels levels within an organization. within an organization. within an organization. within an organization.
Encompasses Encompasses Encompasses Encompasses entire organization, from supplier to entire organization, from supplier to entire organization, from supplier to entire organization, from supplier to
customer. customer. customer. customer.
Stresses a commitment by management to have a Stresses a commitment by management to have a Stresses a commitment by management to have a Stresses a commitment by management to have a
continuing, companywide continuing, companywide continuing, companywide continuing, companywide drive toward excellence in drive toward excellence in drive toward excellence in drive toward excellence in
all aspects all aspects all aspects all aspects of products and services that are of products and services that are of products and services that are of products and services that are
important to the important to the important to the important to the customer. customer. customer. customer.
Focuses on Focuses on Focuses on Focuses on producing high quality goods and producing high quality goods and producing high quality goods and producing high quality goods and
services. services. services. services.
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Table 6.2 Table 6.2 Table 6.2 Table 6.2
1. Create consistency of purpose
2. Lead to promote change
3. Build quality into the product; stop
depending on inspections
4. Build long-term relationships based on
performance instead of awarding
business on price
5. Continuously improve product, quality,
and service
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Table 6.2 Table 6.2 Table 6.2 Table 6.2
6. Start training
7. Emphasize leadership
8. Drive out fear
9. Break down barriers between
departments
10. Stop haranguing workers
11. Support, help, and improve
8/11/2013
4
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Table 6.2 Table 6.2 Table 6.2 Table 6.2
12. Remove barriers to pride in work
13. Institute education and self-
improvement
14. Put everyone to work on the
transformation
Fundamentals of Operations
Management 4e
The McGraw-Hill Companies, Inc., 2003
620
Leadership Leadership Leadership Leadership
o Top management vision, planning and support Top management vision, planning and support Top management vision, planning and support Top management vision, planning and support
Employee involvement Employee involvement Employee involvement Employee involvement
o All employees assume responsibility for inspecting the All employees assume responsibility for inspecting the All employees assume responsibility for inspecting the All employees assume responsibility for inspecting the
quality of their work. quality of their work. quality of their work. quality of their work.
Product/Process Excellence Product/Process Excellence Product/Process Excellence Product/Process Excellence
o Involves product design quality and monitoring the Involves product design quality and monitoring the Involves product design quality and monitoring the Involves product design quality and monitoring the
process for continuous improvement. process for continuous improvement. process for continuous improvement. process for continuous improvement.
Poka Poka Poka Poka- -- -yokes are devices that prevent yokes are devices that prevent yokes are devices that prevent yokes are devices that prevent defect products defect products defect products defect products
from being produced. from being produced. from being produced. from being produced..
Fundamentals of Operations
Management 4e
The McGraw-Hill Companies, Inc., 2003
621
Continuous Improvement Continuous Improvement Continuous Improvement Continuous Improvement
o A concept that A concept that A concept that A concept that recognizes recognizes recognizes recognizes that quality improvement is a that quality improvement is a that quality improvement is a that quality improvement is a
journey with no end journey with no end journey with no end journey with no end and that there is and that there is and that there is and that there is a need for continually a need for continually a need for continually a need for continually
looking for new approaches looking for new approaches looking for new approaches looking for new approaches for improving quality. for improving quality. for improving quality. for improving quality.
Customer Focus on Fitness for Use Customer Focus on Fitness for Use Customer Focus on Fitness for Use Customer Focus on Fitness for Use
o Design quality Design quality Design quality Design quality
Specific characteristics of a product that determine its Specific characteristics of a product that determine its Specific characteristics of a product that determine its Specific characteristics of a product that determine its
value in the marketplace. value in the marketplace. value in the marketplace. value in the marketplace.
o Conformance quality Conformance quality Conformance quality Conformance quality
The degree to which a product meets its design The degree to which a product meets its design The degree to which a product meets its design The degree to which a product meets its design
specifications. specifications. specifications. specifications.
Fundamentals of Operations
Management 4e
The McGraw-Hill Companies, Inc., 2003
622
Successful Implementation of TQM Successful Implementation of TQM Successful Implementation of TQM Successful Implementation of TQM
o Requires total integration of TQM into day Requires total integration of TQM into day Requires total integration of TQM into day Requires total integration of TQM into day- -- -to to to to- -- -day day day day
operations. operations. operations. operations.
Causes of TQM Implementation Failures Causes of TQM Implementation Failures Causes of TQM Implementation Failures Causes of TQM Implementation Failures
o Lack of focus on strategic planning and core Lack of focus on strategic planning and core Lack of focus on strategic planning and core Lack of focus on strategic planning and core
competencies competencies competencies competencies
o Obsolete, outdated organizational cultures. Obsolete, outdated organizational cultures. Obsolete, outdated organizational cultures. Obsolete, outdated organizational cultures.
Fundamentals of Operations
Management 4e
The McGraw-Hill Companies, Inc., 2003
623
Lack of a company Lack of a company Lack of a company Lack of a company- -- -wide definition of quality. wide definition of quality. wide definition of quality. wide definition of quality.
Lack of a formalized strategic plan for change. Lack of a formalized strategic plan for change. Lack of a formalized strategic plan for change. Lack of a formalized strategic plan for change.
Lack of a customer focus. Lack of a customer focus. Lack of a customer focus. Lack of a customer focus.
Poor inter Poor inter Poor inter Poor inter- -- -organizational communication. organizational communication. organizational communication. organizational communication.
Lack of real employee empowerment. Lack of real employee empowerment. Lack of real employee empowerment. Lack of real employee empowerment.
Lack of employee trust in senior management. Lack of employee trust in senior management. Lack of employee trust in senior management. Lack of employee trust in senior management.
View of the quality program as a quick fix. View of the quality program as a quick fix. View of the quality program as a quick fix. View of the quality program as a quick fix.
Drive for short Drive for short Drive for short Drive for short- -- -term financial results. term financial results. term financial results. term financial results.
Politics and turf issues. Politics and turf issues. Politics and turf issues. Politics and turf issues.
2011 Pearson Education,
Inc. publishing as Prentice
Hall
1. 1. 1. 1. Continuous Continuous Continuous Continuous improvement improvement improvement improvement
(Kaizen) (Kaizen) (Kaizen) (Kaizen)
2. 2. 2. 2. Six Sigma Six Sigma Six Sigma Six Sigma
3. 3. 3. 3. Employee empowerment Employee empowerment Employee empowerment Employee empowerment
4. 4. 4. 4. Benchmarking Benchmarking Benchmarking Benchmarking
5. 5. 5. 5. Just Just Just Just- -- -in in in in- -- -time (JIT) time (JIT) time (JIT) time (JIT)
6. 6. 6. 6. Taguchi concepts Taguchi concepts Taguchi concepts Taguchi concepts
7. 7. 7. 7. Knowledge of TQM tools Knowledge of TQM tools Knowledge of TQM tools Knowledge of TQM tools
8/11/2013
5
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Represents Represents Represents Represents continual improvement continual improvement continual improvement continual improvement of all of all of all of all
processes ( processes ( processes ( processes (never ending process never ending process never ending process never ending process) )) )
Involves all operations and work centers Involves all operations and work centers Involves all operations and work centers Involves all operations and work centers
including suppliers and customers including suppliers and customers including suppliers and customers including suppliers and customers
People, Equipment, Materials, Procedures People, Equipment, Materials, Procedures People, Equipment, Materials, Procedures People, Equipment, Materials, Procedures
The The The The end goal is perfection end goal is perfection end goal is perfection end goal is perfection, which is never , which is never , which is never , which is never
achieved but always sought achieved but always sought achieved but always sought achieved but always sought
2011 Pearson Education,
Inc. publishing as Prentice
Hall
4. Act 4. Act 4. Act 4. Act
Implement the Implement the Implement the Implement the
plan document plan document plan document plan document
2. Do 2. Do 2. Do 2. Do
Test the plan Test the plan Test the plan Test the plan
3. Check 3. Check 3. Check 3. Check
Is the plan Is the plan Is the plan Is the plan
working? working? working? working?
1. 1. 1. 1.Plan Plan Plan Plan
Identify the pattern Identify the pattern Identify the pattern Identify the pattern
and make a plan and make a plan and make a plan and make a plan
Figure 6.3 Figure 6.3 Figure 6.3 Figure 6.3
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Two meanings Two meanings Two meanings Two meanings
Statistical definition of a process that is Statistical definition of a process that is Statistical definition of a process that is Statistical definition of a process that is
99.9997% capable, 3.4 defects per 99.9997% capable, 3.4 defects per 99.9997% capable, 3.4 defects per 99.9997% capable, 3.4 defects per
million opportunities (DPMO) million opportunities (DPMO) million opportunities (DPMO) million opportunities (DPMO)
A program designed to reduce defects, A program designed to reduce defects, A program designed to reduce defects, A program designed to reduce defects,
lower costs, and improve customer lower costs, and improve customer lower costs, and improve customer lower costs, and improve customer
satisfaction satisfaction satisfaction satisfaction
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Two meanings Two meanings Two meanings Two meanings
Statistical definition of a process that is Statistical definition of a process that is Statistical definition of a process that is Statistical definition of a process that is
99.9997% capable, 3.4 defects per 99.9997% capable, 3.4 defects per 99.9997% capable, 3.4 defects per 99.9997% capable, 3.4 defects per
million opportunities (DPMO) million opportunities (DPMO) million opportunities (DPMO) million opportunities (DPMO)
A program designed to reduce defects, A program designed to reduce defects, A program designed to reduce defects, A program designed to reduce defects,
lower costs, and improve customer lower costs, and improve customer lower costs, and improve customer lower costs, and improve customer
satisfaction satisfaction satisfaction satisfaction
Mean Mean Mean Mean
Lower limits Lower limits Lower limits Lower limits Upper limits Upper limits Upper limits Upper limits
3.4 defects/million 3.4 defects/million 3.4 defects/million 3.4 defects/million
6 66 6
2,700 defects/million 2,700 defects/million 2,700 defects/million 2,700 defects/million
3 33 3
Figure 6.4 Figure 6.4 Figure 6.4 Figure 6.4
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Originally developed by Motorola, Originally developed by Motorola, Originally developed by Motorola, Originally developed by Motorola,
adopted and enhanced by Honeywell adopted and enhanced by Honeywell adopted and enhanced by Honeywell adopted and enhanced by Honeywell
and GE and GE and GE and GE
Highly structured approach to process Highly structured approach to process Highly structured approach to process Highly structured approach to process
improvement improvement improvement improvement
A strategy A strategy A strategy A strategy
A discipline A discipline A discipline A discipline - -- - DMAIC DMAIC DMAIC DMAIC
6 6
2011 Pearson Education,
Inc. publishing as Prentice
Hall
1. 1. 1. 1. Define critical outputs Define critical outputs Define critical outputs Define critical outputs
and identify gaps for and identify gaps for and identify gaps for and identify gaps for
improvement improvement improvement improvement
2. 2. 2. 2. Measure the work and Measure the work and Measure the work and Measure the work and
collect process data collect process data collect process data collect process data
3. 3. 3. 3. Analyze the data Analyze the data Analyze the data Analyze the data
4. 4. 4. 4. Improve the process Improve the process Improve the process Improve the process
5. 5. 5. 5. Control the new process to make Control the new process to make Control the new process to make Control the new process to make
sure new performance is sure new performance is sure new performance is sure new performance is
maintained maintained maintained maintained
DMAIC Approach DMAIC Approach DMAIC Approach DMAIC Approach
8/11/2013
6
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Emphasize defects per million opportunities as Emphasize defects per million opportunities as Emphasize defects per million opportunities as Emphasize defects per million opportunities as
a standard metric a standard metric a standard metric a standard metric
Provide extensive training Provide extensive training Provide extensive training Provide extensive training
Focus on corporate sponsor support Focus on corporate sponsor support Focus on corporate sponsor support Focus on corporate sponsor support
(Champions) (Champions) (Champions) (Champions)
Create qualified process improvement experts Create qualified process improvement experts Create qualified process improvement experts Create qualified process improvement experts
(Black Belts, Green Belts, etc.) (Black Belts, Green Belts, etc.) (Black Belts, Green Belts, etc.) (Black Belts, Green Belts, etc.)
Set stretch objectives Set stretch objectives Set stretch objectives Set stretch objectives
This cannot be accomplished without a major commitment from top This cannot be accomplished without a major commitment from top This cannot be accomplished without a major commitment from top This cannot be accomplished without a major commitment from top
level management level management level management level management
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Getting employees involved in product and Getting employees involved in product and Getting employees involved in product and Getting employees involved in product and
process improvements process improvements process improvements process improvements
85% of quality problems are due 85% of quality problems are due 85% of quality problems are due 85% of quality problems are due
to process and material to process and material to process and material to process and material
Techniques Techniques Techniques Techniques
Build communication networks Build communication networks Build communication networks Build communication networks
that include employees that include employees that include employees that include employees
Develop open, supportive supervisors Develop open, supportive supervisors Develop open, supportive supervisors Develop open, supportive supervisors
Move responsibility to employees Move responsibility to employees Move responsibility to employees Move responsibility to employees
Build a high Build a high Build a high Build a high- -- -morale organization morale organization morale organization morale organization
Create formal team structures Create formal team structures Create formal team structures Create formal team structures
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Group of employees who meet Group of employees who meet Group of employees who meet Group of employees who meet
regularly to solve problems regularly to solve problems regularly to solve problems regularly to solve problems
Trained in planning, problem solving, Trained in planning, problem solving, Trained in planning, problem solving, Trained in planning, problem solving,
and statistical methods and statistical methods and statistical methods and statistical methods
Often led by a facilitator Often led by a facilitator Often led by a facilitator Often led by a facilitator
Very effective when done properly Very effective when done properly Very effective when done properly Very effective when done properly
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Selecting best practices to use as a standard Selecting best practices to use as a standard Selecting best practices to use as a standard Selecting best practices to use as a standard
for performance for performance for performance for performance
1. 1. 1. 1. Determine what to Determine what to Determine what to Determine what to
benchmark benchmark benchmark benchmark
2. 2. 2. 2. Form a benchmark team Form a benchmark team Form a benchmark team Form a benchmark team
3. 3. 3. 3. Identify benchmarking partners Identify benchmarking partners Identify benchmarking partners Identify benchmarking partners
4. 4. 4. 4. Collect and analyze benchmarking Collect and analyze benchmarking Collect and analyze benchmarking Collect and analyze benchmarking
information information information information
5. 5. 5. 5. Take action to match or exceed the Take action to match or exceed the Take action to match or exceed the Take action to match or exceed the
benchmark benchmark benchmark benchmark
2011 Pearson Education,
Inc. publishing as Prentice
Hall
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 Table 6.3 Table 6.3 Table 6.3
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Relationship to quality: Relationship to quality: Relationship to quality: Relationship to quality:
JIT cuts the cost of quality JIT cuts the cost of quality JIT cuts the cost of quality JIT cuts the cost of quality
JIT improves quality JIT improves quality JIT improves quality JIT improves quality
Better quality means less inventory Better quality means less inventory Better quality means less inventory Better quality means less inventory
and better, easier and better, easier and better, easier and better, easier- -- -to to to to- -- -employ JIT employ JIT employ JIT employ JIT
system system system system
8/11/2013
7
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Pull system of production scheduling Pull system of production scheduling Pull system of production scheduling Pull system of production scheduling
including supply management including supply management including supply management including supply management
Production only when signaled Production only when signaled Production only when signaled Production only when signaled
Allows reduced inventory levels Allows reduced inventory levels Allows reduced inventory levels Allows reduced inventory levels
Inventory costs money and hides process and Inventory costs money and hides process and Inventory costs money and hides process and Inventory costs money and hides process and
material problems material problems material problems material problems
Encourages improved process and product Encourages improved process and product Encourages improved process and product Encourages improved process and product
quality quality quality quality
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Scrap Scrap Scrap Scrap
Unreliable Unreliable Unreliable Unreliable
Vendors Vendors Vendors Vendors
Capacity Capacity Capacity Capacity
Imbalances Imbalances Imbalances Imbalances
Work in process Work in process Work in process Work in process
inventory level inventory level inventory level inventory level
(hides problems) (hides problems) (hides problems) (hides problems)
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Reducing inventory reveals Reducing inventory reveals Reducing inventory reveals Reducing inventory reveals
problems so they can be solved problems so they can be solved problems so they can be solved problems so they can be solved
Scrap Scrap Scrap Scrap
Unreliable Unreliable Unreliable Unreliable
Vendors Vendors Vendors Vendors
Capacity Capacity Capacity Capacity
Imbalances Imbalances Imbalances Imbalances
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Engineering and experimental design Engineering and experimental design Engineering and experimental design Engineering and experimental design
methods to improve product and process methods to improve product and process methods to improve product and process methods to improve product and process
design design design design
Identify key component and process Identify key component and process Identify key component and process Identify key component and process
variables affecting product variation variables affecting product variation variables affecting product variation variables affecting product variation
Taguchi Concepts Taguchi Concepts Taguchi Concepts Taguchi Concepts
Quality robustness Quality robustness Quality robustness Quality robustness
Quality loss function Quality loss function Quality loss function Quality loss function
Target Target Target Target- -- -oriented quality oriented quality oriented quality oriented quality
2011 Pearson Education, Inc. publishing as Prentice
Hall
Ability to produce products Ability to produce products Ability to produce products Ability to produce products uniformly uniformly uniformly uniformly in in in in
adverse manufacturing and adverse manufacturing and adverse manufacturing and adverse manufacturing and
environmental conditions environmental conditions environmental conditions environmental conditions
Remove the effects of adverse conditions Remove the effects of adverse conditions Remove the effects of adverse conditions Remove the effects of adverse conditions
Small variations in materials and process Small variations in materials and process Small variations in materials and process Small variations in materials and process
do not destroy product quality do not destroy product quality do not destroy product quality do not destroy product quality
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Shows that costs increase as the Shows that costs increase as the Shows that costs increase as the Shows that costs increase as the
product moves away from what the product moves away from what the product moves away from what the product moves away from what the
customer wants customer wants customer wants customer wants
Costs include customer Costs include customer Costs include customer Costs include customer
dissatisfaction, warranty dissatisfaction, warranty dissatisfaction, warranty dissatisfaction, warranty
and service, internal and service, internal and service, internal and service, internal
scrap and repair, and costs to society scrap and repair, and costs to society scrap and repair, and costs to society scrap and repair, and costs to society
Traditional conformance specifications Traditional conformance specifications Traditional conformance specifications Traditional conformance specifications
are too simplistic are too simplistic are too simplistic are too simplistic
8/11/2013
8
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Unacceptable Unacceptable Unacceptable Unacceptable
Poor Poor Poor Poor
Good Good Good Good
Best Best Best Best
Fair Fair Fair Fair
High loss High loss High loss High loss
Loss (to Loss (to Loss (to Loss (to
producing producing producing producing
organization, organization, organization, organization,
customer, and customer, and customer, and customer, and
society) society) society) society)
Low loss Low loss Low loss Low loss
Frequency Frequency Frequency Frequency
Lower Lower Lower Lower Target Target Target Target Upper Upper Upper Upper
Specification Specification Specification Specification
Target Target Target Target- -- -oriented quality oriented quality oriented quality oriented quality
yields more product in yields more product in yields more product in yields more product in
the best category the best category the best category the best category
Target Target Target Target- -- -oriented quality oriented quality oriented quality oriented quality
brings product toward the brings product toward the brings product toward the brings product toward the
target value target value target value target value
Conformance Conformance Conformance Conformance- -- -oriented oriented oriented oriented
quality keeps products quality keeps products quality keeps products quality keeps products
within 3 standard within 3 standard within 3 standard within 3 standard
deviations deviations deviations deviations
Figure 6.5 Figure 6.5 Figure 6.5 Figure 6.5
L LL L = = = = D DD D
2 22 2
C CC C
where where where where
L LL L = == = loss to society loss to society loss to society loss to society
D DD D = == = distance from target distance from target distance from target distance from target
value value value value
C CC C = == = cost of deviation cost of deviation cost of deviation cost of deviation
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Tools for Generating Ideas Tools for Generating Ideas Tools for Generating Ideas Tools for Generating Ideas
Check sheets Check sheets Check sheets Check sheets
Scatter diagrams Scatter diagrams Scatter diagrams Scatter diagrams
Cause Cause Cause Cause- -- -and and and and- -- -effect diagrams effect diagrams effect diagrams effect diagrams
Tools to Organize the Data Tools to Organize the Data Tools to Organize the Data Tools to Organize the Data
Pareto charts Pareto charts Pareto charts Pareto charts
Flowcharts Flowcharts Flowcharts Flowcharts
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Tools for Identifying Problems Tools for Identifying Problems Tools for Identifying Problems Tools for Identifying Problems
Histogram Histogram Histogram Histogram
Statistical process control chart Statistical process control chart Statistical process control chart Statistical process control chart
2011 Pearson Education,
Inc. publishing as Prentice
Hall
/ // /
/ // /
/ // / / // / /// /// /// /// / // /
// // // // /// /// /// ///
// // // // //// //// //// ////
/// /// /// ///
// // // //
/ // /
Hour Hour Hour Hour
Defect Defect Defect Defect 1 11 1 2 22 2 3 33 3 4 44 4 5 55 5 6 66 6 7 77 7 8 88 8
A AA A
B BB B
C CC C
/ // /
/ // /
// // // //
/ // /
(a) (a) (a) (a) Check Sheet: An organized method of recording data Check Sheet: An organized method of recording data Check Sheet: An organized method of recording data Check Sheet: An organized method of recording data
Figure 6.6 Figure 6.6 Figure 6.6 Figure 6.6
2011 Pearson Education,
Inc. publishing as Prentice
Hall
(b) (b) (b) (b) Scatter Diagram: A graph of the value of one variable vs. Scatter Diagram: A graph of the value of one variable vs. Scatter Diagram: A graph of the value of one variable vs. Scatter Diagram: A graph of the value of one variable vs.
another variable another variable another variable another variable
Absenteeism Absenteeism Absenteeism Absenteeism
P
r
o
d
u
c
t
i
v
i
t
y
P
r
o
d
u
c
t
i
v
i
t
y
P
r
o
d
u
c
t
i
v
i
t
y
P
r
o
d
u
c
t
i
v
i
t
y
Figure 6.6 Figure 6.6 Figure 6.6 Figure 6.6
2011 Pearson Education,
Inc. publishing as Prentice
Hall
(c) (c) (c) (c) Cause Cause Cause Cause- -- -and and and and- -- -Effect Diagram: A tool that identifies process Effect Diagram: A tool that identifies process Effect Diagram: A tool that identifies process Effect Diagram: A tool that identifies process
elements (causes) that might effect an outcome elements (causes) that might effect an outcome elements (causes) that might effect an outcome elements (causes) that might effect an outcome
Figure 6.6 Figure 6.6 Figure 6.6 Figure 6.6
Cause Cause Cause Cause
Materials Materials Materials Materials Methods Methods Methods Methods
Manpower Manpower Manpower Manpower Machinery Machinery Machinery Machinery
Effect Effect Effect Effect
8/11/2013
9
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Material Material Material Material
(ball) (ball) (ball) (ball)
Method Method Method Method
(shooting process) (shooting process) (shooting process) (shooting process)
Machine Machine Machine Machine
(hoop & (hoop & (hoop & (hoop &
backboard) backboard) backboard) backboard)
Manpower Manpower Manpower Manpower
(shooter) (shooter) (shooter) (shooter)
Missed Missed Missed Missed
free free free free- -- -throws throws throws throws
Figure 6.7 Figure 6.7 Figure 6.7 Figure 6.7
Rim alignment Rim alignment Rim alignment Rim alignment
Rim size Rim size Rim size Rim size
Backboard Backboard Backboard Backboard
stability stability stability stability
Rim height Rim height Rim height Rim height
Follow Follow Follow Follow- -- -through through through through
Hand position Hand position Hand position Hand position
Aiming point Aiming point Aiming point Aiming point
Bend knees Bend knees Bend knees Bend knees
Balance Balance Balance Balance
Size of ball Size of ball Size of ball Size of ball
Lopsidedness Lopsidedness Lopsidedness Lopsidedness
Grain/Feel Grain/Feel Grain/Feel Grain/Feel
(grip) (grip) (grip) (grip)
Air pressure Air pressure Air pressure Air pressure
Training Training Training Training
Conditioning Conditioning Conditioning Conditioning
Motivation Motivation Motivation Motivation
Concentration Concentration Concentration Concentration
Consistency Consistency Consistency Consistency
To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Passenger processing at gate
Late cabin cleaners
Unavailable cockpit crew
Late cabin crew
Personnel
Aircraft late to gate
Mechanical failures
Equipment
Procedures
Waiting for late passengers
Weight/balance sheet late
Poor announcement of departures
Delayed check-in procedure
Delayed
flight
departures
Materials
Late food service
Late fuel
Late baggage to aircraft
Contractor not provided
updated schedule
Figure 4.11
Weather
Air traffic delays
Other
Source: Adapted fromD. Daryl Wyckoff, NewTools for Achieving Service Quality. The Cornell Hotel and Restaurant
Administration Quarterly, November 1984, pg. 89. 1984 Cornell H.R.A. Quarterly. Used by permission. All rights reserved.
2011 Pearson Education,
Inc. publishing as Prentice
Hall
(d) (d) (d) (d) Pareto Chart: A graph to identify and plot problems or defects in Pareto Chart: A graph to identify and plot problems or defects in Pareto Chart: A graph to identify and plot problems or defects in Pareto Chart: A graph to identify and plot problems or defects in
descending order of frequency descending order of frequency descending order of frequency descending order of frequency
Figure 6.6 Figure 6.6 Figure 6.6 Figure 6.6
F
r
e
q
u
e
n
c
y
F
r
e
q
u
e
n
c
y
F
r
e
q
u
e
n
c
y
F
r
e
q
u
e
n
c
y
P
e
r
c
e
n
t
P
e
r
c
e
n
t
P
e
r
c
e
n
t
P
e
r
c
e
n
t
A AA A B BB B C CC C D DD D E EE E
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Number of Number of Number of Number of
occurrences occurrences occurrences occurrences
Room svc Room svc Room svc Room svc Check Check Check Check- -- -in in in in Pool hours Pool hours Pool hours Pool hours Minibar Minibar Minibar Minibar Misc. Misc. Misc. Misc.
72% 72% 72% 72% 16% 16% 16% 16% 5% 5% 5% 5% 4% 4% 4% 4% 3% 3% 3% 3%
12 12 12 12
4 44 4
3 33 3 2 22 2
54 54 54 54
100 100 100 100
93 93 93 93
88 88 88 88
72 72 72 72
70 70 70 70
60 60 60 60
50 50 50 50
40 40 40 40
30 30 30 30
20 20 20 20
10 10 10 10
0 0 0 0
F
r
e
q
u
e
n
c
y
(
n
u
m
b
e
r
)
F
r
e
q
u
e
n
c
y
(
n
u
m
b
e
r
)
F
r
e
q
u
e
n
c
y
(
n
u
m
b
e
r
)
F
r
e
q
u
e
n
c
y
(
n
u
m
b
e
r
)
Causes and percent of the total Causes and percent of the total Causes and percent of the total Causes and percent of the total
C
u
m
u
l
a
t
i
v
e

p
e
r
c
e
n
t
C
u
m
u
l
a
t
i
v
e

p
e
r
c
e
n
t
C
u
m
u
l
a
t
i
v
e

p
e
r
c
e
n
t
C
u
m
u
l
a
t
i
v
e

p
e
r
c
e
n
t
Data for October Data for October Data for October Data for October
2011 Pearson Education,
Inc. publishing as Prentice
Hall
(e) (e) (e) (e) Flowchart (Process Diagram): A chart that describes the steps in a Flowchart (Process Diagram): A chart that describes the steps in a Flowchart (Process Diagram): A chart that describes the steps in a Flowchart (Process Diagram): A chart that describes the steps in a
process process process process
Figure 6.6 Figure 6.6 Figure 6.6 Figure 6.6
2011 Pearson Education,
Inc. publishing as Prentice
Hall
MRI Flowchart MRI Flowchart MRI Flowchart MRI Flowchart
1. Physician schedules MRI
2. Patient taken to MRI
3. Patient signs in
4. Patient is prepped
5. Technician carries out MRI
6. Technician inspects film
7. If unsatisfactory, repeat
8. Patient taken back to room
9. MRI read by radiologist
10. MRI report transferred to
physician
11. Patient and physician discuss
11 11 11 11
10 10 10 10
20% 20% 20% 20%
9 99 9
8 88 8
80% 80% 80% 80%
1 11 1 2 22 2 3 33 3 4 44 4 5 55 5 6 66 6 7 77 7
8/11/2013
10
2011 Pearson Education,
Inc. publishing as Prentice
Hall
(f) (f) (f) (f) Histogram: A distribution showing the frequency of occurrences of a Histogram: A distribution showing the frequency of occurrences of a Histogram: A distribution showing the frequency of occurrences of a Histogram: A distribution showing the frequency of occurrences of a
variable variable variable variable
Figure 6.6 Figure 6.6 Figure 6.6 Figure 6.6
Distribution Distribution Distribution Distribution
Repair time (minutes) Repair time (minutes) Repair time (minutes) Repair time (minutes)
F
r
e
q
u
e
n
c
y
F
r
e
q
u
e
n
c
y
F
r
e
q
u
e
n
c
y
F
r
e
q
u
e
n
c
y
2011 Pearson Education,
Inc. publishing as Prentice
Hall
(g) (g) (g) (g) Statistical Process Control Chart: A chart with time on the horizontal Statistical Process Control Chart: A chart with time on the horizontal Statistical Process Control Chart: A chart with time on the horizontal Statistical Process Control Chart: A chart with time on the horizontal
axis to plot values of a statistic axis to plot values of a statistic axis to plot values of a statistic axis to plot values of a statistic
Figure 6.6 Figure 6.6 Figure 6.6 Figure 6.6
Upper control limit Upper control limit Upper control limit Upper control limit
Target value Target value Target value Target value
Lower control limit Lower control limit Lower control limit Lower control limit
Time Time Time Time
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Uses statistics and control charts to tell Uses statistics and control charts to tell Uses statistics and control charts to tell Uses statistics and control charts to tell
when to take corrective action when to take corrective action when to take corrective action when to take corrective action
Drives process improvement Drives process improvement Drives process improvement Drives process improvement
Four key steps Four key steps Four key steps Four key steps
Measure the process Measure the process Measure the process Measure the process
When a change is indicated, find the assignable cause When a change is indicated, find the assignable cause When a change is indicated, find the assignable cause When a change is indicated, find the assignable cause
Eliminate or incorporate the cause Eliminate or incorporate the cause Eliminate or incorporate the cause Eliminate or incorporate the cause
Restart the revised process Restart the revised process Restart the revised process Restart the revised process
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Upper control limit Upper control limit Upper control limit Upper control limit
Coachs target value Coachs target value Coachs target value Coachs target value
Lower control limit Lower control limit Lower control limit Lower control limit
Game number Game number Game number Game number
| || | | || | | || | | || | | || | | || | | || | | || | | || |
1 11 1 2 22 2 3 33 3 4 44 4 5 55 5 6 66 6 7 77 7 8 88 8 9 99 9
20% 20% 20% 20%
10% 10% 10% 10%
0% 0% 0% 0%
Plots the percent of free throws missed Plots the percent of free throws missed Plots the percent of free throws missed Plots the percent of free throws missed
Figure 6.8 Figure 6.8 Figure 6.8 Figure 6.8
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Involves examining items to see if an item is Involves examining items to see if an item is Involves examining items to see if an item is Involves examining items to see if an item is
good or defective good or defective good or defective good or defective
Detect a defective product Detect a defective product Detect a defective product Detect a defective product
Does not correct deficiencies in process or Does not correct deficiencies in process or Does not correct deficiencies in process or Does not correct deficiencies in process or
product product product product
It is expensive It is expensive It is expensive It is expensive
Issues Issues Issues Issues
When to inspect When to inspect When to inspect When to inspect
Where in process to inspect Where in process to inspect Where in process to inspect Where in process to inspect
2011 Pearson Education,
Inc. publishing as Prentice
Hall
1. 1. 1. 1. At the suppliers plant while the supplier is At the suppliers plant while the supplier is At the suppliers plant while the supplier is At the suppliers plant while the supplier is
producing producing producing producing
2. 2. 2. 2. At your facility upon receipt of goods from the At your facility upon receipt of goods from the At your facility upon receipt of goods from the At your facility upon receipt of goods from the
supplier supplier supplier supplier
3. 3. 3. 3. Before costly or irreversible processes Before costly or irreversible processes Before costly or irreversible processes Before costly or irreversible processes
4. 4. 4. 4. During the step During the step During the step During the step- -- -by by by by- -- -step production process step production process step production process step production process
5. 5. 5. 5. When production or service is complete When production or service is complete When production or service is complete When production or service is complete
6. 6. 6. 6. Before delivery to your customer Before delivery to your customer Before delivery to your customer Before delivery to your customer
7. 7. 7. 7. At the point of customer contact At the point of customer contact At the point of customer contact At the point of customer contact
8/11/2013
11
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Many problems Many problems Many problems Many problems
Worker fatigue Worker fatigue Worker fatigue Worker fatigue
Measurement error Measurement error Measurement error Measurement error
Process variability Process variability Process variability Process variability
Cannot inspect quality into a product Cannot inspect quality into a product Cannot inspect quality into a product Cannot inspect quality into a product
Robust design, empowered Robust design, empowered Robust design, empowered Robust design, empowered
employees, and sound processes are employees, and sound processes are employees, and sound processes are employees, and sound processes are
better solutions better solutions better solutions better solutions
2011 Pearson Education,
Inc. publishing as Prentice
Hall
The Operations Manager must The Operations Manager must The Operations Manager must The Operations Manager must
recognize: recognize: recognize: recognize:
1. 1. 1. 1. The tangible component of services The tangible component of services The tangible component of services The tangible component of services
is important is important is important is important
2. 2. 2. 2. The service process is important The service process is important The service process is important The service process is important
3. 3. 3. 3. The service is judged against the The service is judged against the The service is judged against the The service is judged against the
customers expectations customers expectations customers expectations customers expectations
4. 4. 4. 4. Exceptions will occur Exceptions will occur Exceptions will occur Exceptions will occur
2011 Pearson Education,
Inc. publishing as Prentice
Hall
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Reliability Consistency of performance and dependability
Responsiveness Willingness or readiness of employees
Competence Required skills and knowledge
Access Approachability and ease of contact
Courtesy Politeness, respect, consideration, friendliness
Communication Keeping customers informed
Credibility Trustworthiness, believability, honesty
Security Freedom from danger, risk, or doubt
Understanding/
knowing the customer
Understand the customers needs
Tangibles Physical evidence of the service
Table 6.5 Table 6.5 Table 6.5 Table 6.5
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Managers should have a plan for when
services fail
Marriotts LEARN routine
Listen
Empathize
Apologize
React
Notify
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Also known as source control Also known as source control Also known as source control Also known as source control
The next step in the process is your The next step in the process is your The next step in the process is your The next step in the process is your
customer customer customer customer
Ensure perfect product Ensure perfect product Ensure perfect product Ensure perfect product
to your customer to your customer to your customer to your customer
Poka Poka Poka Poka- -- -yoke is the concept of foolproof devices or techniques designed yoke is the concept of foolproof devices or techniques designed yoke is the concept of foolproof devices or techniques designed yoke is the concept of foolproof devices or techniques designed
to pass only acceptable product to pass only acceptable product to pass only acceptable product to pass only acceptable product
8/11/2013
12
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Organization
What is
Inspected
Standard
Jones Law Office Receptionist
performance
Billing
Attorney
Is phone answered by the
second ring
Accurate, timely, and
correct format
Promptness in returning
calls
Table 6.4 Table 6.4 Table 6.4 Table 6.4
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Organization
What is
Inspected
Standard
Hard Rock Hotel Reception
desk
Doorman
Room
Minibar
Use customers name
Greet guest in less than 30
seconds
All lights working, spotless
bathroom
Restocked and charges
accurately posted to bill
Table 6.4 Table 6.4 Table 6.4 Table 6.4
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Organization
What is
Inspected
Standard
Arnold Palmer
Hospital
Billing
Pharmacy
Lab
Nurses
Admissions
Accurate, timely, and
correct format
Prescription accuracy,
inventory accuracy
Audit for lab-test accuracy
Charts immediately
updated
Data entered correctly and
completely
Table 6.4 Table 6.4 Table 6.4 Table 6.4
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Organization
What is
Inspected
Standard
Olive Garden
Restaurant
Busboy
Busboy
Waiter
Serves water and bread
within 1 minute
Clears all entre items and
crumbs prior to dessert
Knows and suggest
specials, desserts
Table 6.4 Table 6.4 Table 6.4 Table 6.4
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Organization
What is
Inspected
Standard
Nordstrom
Department
Store
Display areas
Stockrooms
Salesclerks
Attractive, well-organized,
stocked, good lighting
Rotation of goods,
organized, clean
Neat, courteous, very
knowledgeable
Table 6.4 Table 6.4 Table 6.4 Table 6.4
Japanese
Term
English
Equivalent
Meaning in Japanese
Context
Seiri Tidiness
Throw away all rubbish and unrelated
materials in the workplace
Seiton Orderliness
Set everything in proper place for
quick retrieval and storage
Seiso Cleanliness
Clean the workplace; everyone
should be a janitor
Seiketsu Standardization
Standardize the way of maintaining
cleanliness
Shitsuke Discipline
Practice 'Five S' daily - make it a way
of life; this also means 'commitment'
8/11/2013
13
2011 Pearson Education,
Inc. publishing as Prentice
Hall
Attributes
Items are either good or bad, acceptable or
unacceptable
Does not address degree of failure
Variables
Measures dimensions such as weight,
speed, height, or strength
Falls within an acceptable range
Use different statistical techniques

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Tools for Improving Quality
Step 1Checklist
Step 2Pareto chart
Step 3Cause-and-effect diagram
Step 4Bar chart

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Checklists
Figure 4.12
Headliner Defects
Defect type Tally Total
A. Tears in fabric
B. Discolored fabric
C. Broken fiber board
D. Ragged edges
Total

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Checklists
Figure 4.12
Headliner Defects
Defect type Tally Total
A. Tears in fabric
B. Discolored fabric
C. Broken fiber board /
D. Ragged edges
Total

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Checklists
Figure 4.12
Headliner Defects
Defect type Tally Total
A. Tears in fabric
B. Discolored fabric
C. Broken fiber board //
D. Ragged edges
Total

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Checklists
Figure 4.12
Headliner Defects
Defect type Tally Total
A. Tears in fabric /
B. Discolored fabric
C. Broken fiber board //
D. Ragged edges
Total
8/11/2013
14

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Checklists
Figure 4.12
Headliner Defects
Defect type Tally Total
A. Tears in fabric /
B. Discolored fabric
C. Broken fiber board //
D. Ragged edges /
Total

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Checklists
Headliner Defects
Defect type Tally Total
A. Tears in fabric //// 4
B. Discolored fabric /// 3
C. Broken fiber board //// //// //// ////
//// //// //// / 36
D. Ragged edges //// // 7
Total 50
Figure 4.12

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
C
D
A
B
Pareto Chart
100
80
60
40
20
0
C
u
m
u
l
a
t
i
v
e

p
e
r
c
e
n
t
a
g
e
N
u
m
b
e
r

o
f

d
e
f
e
c
t
s
50
40
30
20
10
0
Defect type
Figure 4.12

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Cause-and-Effect Diagram
Figure 4.12
Out of specification
Not available
Materials
Humidity
Schedule changes
Other
Machine maintenance
Machine speed
Wrong setup
Process
Training
Absenteeism
Communication
People
Broken
fiber board

To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Bar Chart 20
15
10
5
0
N
u
m
b
e
r

o
f

b
r
o
k
e
n

f
i
b
e
r

b
o
a
r
d
s
First Second Third
Shift
Figure 4.12
To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Figure 4.13
(a) Flowchart for one-teller bank
(b) Flowchart for two-teller bank
Entrance Buffer Work Station Buffer
Door Line Teller Served Customers
Work Station
Teller 1
Entrance Buffer Buffer
Door Line Served Customers
Work Station
Teller 2
8/11/2013
15
To Accompany Krajewski &
Ritzman Operations
Management: Strategy and
Analysis, Seventh Edition
2004 Prentice Hall, Inc. All
Figure 4.14
Element Element Statistics Overall
Types Names Means
Entrance(s) Door Service level 0.90
Buffer(s) Line Mean inventory 4.47
Mean cycle time 11.04