Operations

Management
Reference: Strategic Production and Operations Management
Author: Prof. Rpme Sheririff G. Montoya, MBA, MRIBA Sr., (DBA ongoing)

Dr. Joann M. Amargo

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Managing Quality
 Specifying Quality
“Quality” - to most people seems to mean
“high quality”. And it is a little like
mother, God, Queen and country -
everyone is for it, and more the quality
the better. But do people really want the
highest possible quality of everything.
The answer has to be NO, because
COSTS are always part of the picture.

“Quality” - is hard concept to pin down.

Yet a factory has to make products of
specified quality. Why not always try to
make the best.
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 Specifying Quality
*Supermarkets sell millions of pounds of candy, millions of water
glasses and dishes, and millions of other things —practically
all oall of which are admittedly of medium or low quality. Not
all people buy their candy and glassware and dishes from
supermarkets, but a good many do. People don’t allow want
the very best of these things — at least not to the extent of
being willing to pay the cost of high quality. What most of us
usually want it the best quality we can get for the money we
are willing to spend.

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 Specifying Quality
*A manufacturer does not object to high quality as such. He is as
much in favor of it as everyone else, but he has to contend with
cost. As a rule, the higher the quality, the higher the costs. a
good bit more money.
This is why Sears Roebuck is the world’s biggest merchandiser,
even though it never carries the highest quality of anything.
And this is what quality means to a manufacturer. He tries to
make the best product he can for the price he can get. Hormel
doesn’t put top-grade pork loin into Spam because Spam users
wouldn’t pay the price.

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 Specifying Quality
*A product’s or a service’s quality is embodied in its
characteristics. The organisation’s managers decide these
characteristics and then they have their designers try to
develop products and services which incorporate these
characteristics.

The end product of managerial decisions on quality may the form

of quality policy statements. In this form, these statements
cannot be used by the factory because they do not contain
instructions telling what to do.

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 Specifying Quality
*They are goal statements. Some samples are:
1. We wish to provide dry cell batteries of such a quality that no
more than 2% are (defective being defined as batteries whose
average life in a typical transistor radio is less than 20 hours of
playing time or those which leak). Manufacturing cost should be
less than 12 cents per unit.
2. The failure rate of our computers should average 1305 per year
(meaning that they will fail on the average of once every nine
months), But we will develop a service repair organization and
carry spare parts inventories which can provide “same day
service” to 95% of our customers.
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 Specifying Quality
*They are goal statements. Some samples are:
3. We wish to produce soap that is 99.44% pure.
4. We will make our bread from ingredients which are organically grown
and without artificial preservatives.
Most of these quality goals as stated above are not “operationized”. The
factory cannot make products using only these instructions. Rater
these policy statements are in the nature the delegation or “mission
charges” to designers. After receiving such as delegation, the
designers, in conjunction with process engineers and industrial
engineers, develop the specific instructions which the factory will have
to have when it performs the operations which taken together,
implement these policies.
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 Specifying Quality
*The instructions tot eh factory take the form of specifications
and drawings showing dimensions and tolerances, or they
formulas, processing instructions and the like. They also cover
inspection and testing methods and specify acceptable levels.

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 Quality Control and Reliability
Quality control in production involves not
only the finished product but also the
whole production process.

Reliability refers to the development of the

correct part for the condition to which
that part will be subjected.

Quality control is method of checking

manufacturing operations to determine
how well these operations adhere to
blueprint specifications on dimensions
tolerances, surface finish and the life, as
well as processing testing and
manufacturing. 12
 Quality Control and Reliability
Reliability, however is a
different matter.
Reliability means the
probability that a product
will perform without failure
when operated under
reasonable conditions
through its normal life.

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 Quality Control and Reliability
* However, sticking to a blueprint specifications does not
guarantee reliability. A product may become unreliable even
blueprint specifications are footed if that product is subjected
to stresses for which it was not designed. The blueprint must
be tested to assure reliability, and this should be followed by
quality control to assure that the blueprint is adhere to In the
design stage engineers should be tolerant of varied views.

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 Four Phases of Reliability Program
1. Design - should take into account the intended
function of the part the environmental
conditions, the stresses to which the product
will be subjected, and the financial capabilities
of the customer.

2. Testing - In case of car manufacture, durability

tests are made on cars on the production line
under severe conditions to determine their
suitability to the country and to detect areas
where improvements could be made.

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 Four Phases of Reliability Program
continuation:
2. Testing - considerable testing is also
performed on parts and assemblies in
laboratories and workshops to detect defects
or failures. Additional testing isa lso
performed on normal parts produced
according to improved designs.
3. Production
4. Services - the last phase of reliability takes
place when the car comes into the possession
of the customer who spots weaknesses
missed in design and testing. For this reason,
it is extremely important that a manufacturer
establish fast and efficient feedback on field
failures so that corrective possible time. 16
 Rationale
* A firm that manufacturers shoes may either produce shoes that fit exceedingly
well last for many years, and are very stylish, or it can produce satisfactory
shoes that give good service and wear moderately well. The former sells for
several times the price of the latter , to much smaller clientele, and requires
different materials and processes. Both has place in the total market.
Similarly, retail establishments may differ in their service to customers.
Some are able to sell item for less because they reduce total costs, purposely,
specifying, that they will not service the merchandise they sell. Competition
may well be on the basis of design quality rather than price with firms
spending large amounts for advertising designed to create a quality rather
than price with hims spending large amounts for advertising designed to
create “quality” image. In this manner that can charge premium prices for
their “quality” products.
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 Inspection
*Inspections
The primary quality control
implementation activity on a day-to-
day basis is inspection. Obviously,
products and services should be
inspected in order to weed out
inferior units. Inspecting products
while they are being made also
avoids further work on already
defective units. But, if these savings
are all that the inspector
accomplishes, then larger gains are
being overlooked. 18
 Inspection
* The primary objective of inspection
should be prevention - not remedy. The
object is to stop making defective items
(or stop inferior service). This requires
that inspectors (or production workers)
tell management not only that a product
is being rejected but also why, so
managers can concentrate on improving
the situation. Statistical quality control is
helpful here because it is performed right
at the operation and helps to prevent the
continued production of defective units.
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 Testing and Inspection
Testing - is a specific kind of inspection. Inspection, a broader
term than testing, includes all activities, among them
testing, to see if the products are up to standards, If, to
inspect an item a person has to do more than just look at it
or measure it, it is usually called testing rather than
inspecting. Tests maybe be performance or operating tests.

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 Methods of Checking Product Quality In
1. Inspection Manufacturing
a. Visual
b. Judgemental
c. Broad - ex. Garments
d. Testing - ex. Foods
e. Deals with properties terms to attributes —- inherent characteristics (visual). When
an inspector looks at a product and says “It passes” or “It is a reject” , he is dealing
with “attributes”
2. Testing
a. Specify
b. Quantified
c. Involves physical and chemical properties (min and max ranges/ limits.) Physical
properties establish identity like color, taste, door, specific gravity, BP, FP, viscosity
(when quantified.
Ex. is NaCl vs. sugar on taste. Chemical properties show behavior when subjected tot he
action of other substances or factors causing its composition to change .
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 Methods of Checking Product Quality In
Manufacturing
d. Deals with properties termed
variables (measurable). If the
inspector measures “how much,
“how big”, “how thick” “how round”
and so on, he is dealing with
“variables”.

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Thank you