DBA-BAU 706 MADY Module 2 Quality Management Feb 2020

Operations
Management
Chapter 6 –
Managing Quality
PowerPoint presentation to accompany
Heizer/Render
Principles of Operations Management, 6e
Operations Management, 8e
© 2006
© 2006 Prentice
Prentice Hall, Inc. Hall, Inc. 6–1
Managing Quality Provides a
Competitive Advantage
Arnold Palmer Hospital
 Deliver over 10,000 babies annually
 Virtually every type of quality tool is
employed
 Continuous improvement
 Employee empowerment
 Benchmarking
 Just-in-time
 Quality tools
© 2006 Prentice Hall, Inc. 6–2
PART ONE:
Quality Fundamentals
I. Quality Strategy
II. Defining Quality
III. Implications of Good Quality
IV. Costs of Quality

I. Quality and Strategy
 Managing quality supports
differentiation, low cost, and
response strategies
 Building a quality organization is a
demanding task

II. Defining Quality
The totality of features and

characteristics of a product or
service that bears on its ability to
satisfy stated or implied needs
American Society for Quality

Different Views
 User-based – better performance,
more features (Performance
Quality).
 Manufacturing-based –
conformance to standards,
making it right the first time
(Conformity Quality)
 Product-based – specific and
measurable attributes of the
product (Design Quality)
III. Implications of Good
Quality
1. Company reputation
 Perception of new products
 Employment practices
 Supplier relations
2. Product liability
 Reduce risk
3. Global implications
 Improved ability to compete
Ways Quality Improves
Profitability
Sales Gains
 Improved response
 Higher Prices
 Improved reputation
Improved Increased
Quality Profitability
Reduced Costs
 Increased productivity
 Lower rework and scrap costs
 Lower warranty costs
Figure 6.1
IV. Costs of Quality
 Prevention costs - reducing the
potential for defects
 Appraisal costs - evaluating
products, parts, and services
 Internal failure - producing defective
parts or service before delivery
 External costs - defects discovered
after delivery
Costs of Quality
Total Total Cost

Cost
External Failure
Internal Failure
Prevention
Appraisal
Quality Improvement
© 2006 Prentice Hall, Inc. 6 – 10

PART TWO:
How to measure the quality level
of a product or a service ?
• Rely on your Customer to assess the
“Quality” of your product and/or service.
• Use some Dimensions and Elements.
• Your costumer is the one who should
assign a priority for each dimension and
element.
• Do actual measurement (survey). Do not
rely on your employees’ judgment and
perception.
© 2006 Prentice Hall, Inc.

11 6 – 11
Product Quality Dimensions*
Graven (1988) has identified eight dimensions
or categories of quality that apply for the most
part to manufactured products:
1. Performance ‫قدرة السلعة على األداء‬ .1

2. Features ‫السمات المميزة للسلعة‬ .2
3. Reliability ‫اإلعتمادية و االتساق‬ .3
4. Conformance ‫درجة المطابقة‬ .4
5. Durability ‫العمر المنتج‬ .5
6. Serviceability ‫سهولة الصيانة و االصالح‬ .6
7. Aesthetics ‫المظهر الجمالي للسلعة‬ .7
8. Perceived Quality ‫الجودة كما يدركها العميل‬ .8
*Garven

12 6 – 12
1. Performance : It refers to the primary operating
characteristics of a product ( like clarity, color, and
the ability to receive distance stations on a color
television set).
2. Features: The “ bells and whistles “ of a product
( like a remote control for the television).
3. Reliability: The probability of a product’s
malfunctioning or falling within a specific period of
time.
4. Conformance: The degree to which a product’s
design and orating characteristics meet pre-
established standards ( a definition of quality often
used by Phil Crosby, one of the best known US “
quality gurus” ).
5. Durability: A measure of product life that has both
economic and technical dimensions. 13
6. Serviceability : The speed , courtesy,
competence, and ease of repair. Attempts have
been made to identify “ measurable “
characteristics of serviceability ( like speed of
response) as opposed to the more elusive
elements of customer satisfaction.
7. Aesthetics user-defined , subjective set of
attributes, based on individual preferences, of a
product-how a product looks, feels, sounds,
tastes, or smells according to the customer.
8. Perceived quality: “ Continuous do not always
possess complete information about a product
or a service’s attributes. Frequently, for
example , can seldom be observed directly; it
usually must be inferred from various tangible
and intangible aspects of a product.”
14 6 – 14
Measuring the Quality Level
of a Service?

Differences between service
quality and product quality
• Consumer behavior is a characteristic
of quality
• Not every characteristic of quality is
tangible
• Image (expectation ) is a
characteristic of quality
• Consumer should be part of the
production process

16 6 – 16
Differences Cont.
• Testing and inspecting product are
not enough to ensure quality and
customer satisfaction
• Standards might be global, customer
needs are not
• Customized services can not be
standardized

17 6 – 17
Differences Cont.
• Some extra service must be
performed on demand
• Measures of system efficiency are
different
• Customer satisfaction might not be
cost effective

18 6 – 18
Measuring quality of service
means:
• We must stop and make things right
before it is sometimes too late: that
is when the customer discover that
we failed somewhere.
• The customer is always the first to
know, specially in service business

19 6 – 19
Characteristics of Service Quality*
1. Reliability
2. Responsiveness
3. Competence
4. Access
5. Courtesy
6. Communication
7. Credibility
8. Security
9. Understanding / Knowing the customer
10. Tangibles
* Parasurman, Zeithaml , & Berry.

20
Tangibility – Reliability- Responsiveness – Assurance
Empathy. 6 – 20
1- Reliability involves consistency of performance and
dependability. It means that the firm performs the service
right the first time. It also means that the firm honors its
promises. Specifically, it involves:
• accuracy in billing;
• keeping records correctly;
• performing the service at the designated time.
2- Responsiveness concerns the willingness or readiness of

employees to provide service. It involves timeliness of
services:
• mailing a transaction slip immediately;
• calling the customer back quickly;
• giving prompt service (e.g. setting up appointments
quickly).
•

21 6 – 21
3- Competence means possession of the required skills
and knowledge to perform the service. It involves:
• knowledge and skill of the contact personnel;
• knowledge and skill of operational support personnel;
• research capability of the organization (e.g. securities
brokerage firm).
4- Access involves approachability and ease of contact. It

means:
• the service is easily accessible by telephone (lines are
not busy and they don’t put up on hold);
• waiting time to receive service (e.g., at a bank) is not
extensive;
• convenient hours of operation;
• convenient location of service facility.

22 6 – 22
5- Courtesy involves politeness, respect, consideration, and
friendliness of contact personnel (including receptionists,
telephone operators, etc.). It includes:
• consideration for the consumer’s property (e.g., no

muddy shoes on the carpet);
• clean and neat appearance of public contact
personnel.
6- Communication means keeping customers informed in
language they can understand and listening to them. It may
mean that the company has to adjust its language for different
consumers-increasing the level of sophistication and a well
educated customer and speaking simply and plainly with a
novice. It involves:
• explaining the service itself;
• explaining how much the service will cost;
• explaining the trade-offs between service and cost;
• assuring the consumer that a problem will be handled.
23 6 – 23
7- Credibility involves trustworthiness, believability,
honesty. It involves having the customer’s best interest at
heart. Contributing to credibility are:
• company name;
• company reputation;
• personal characteristics of the contact personnel;
• the degree of good will involved in interactions with
the customer.
8- Security is freedom from danger, risk or doubt. It
involves:
• physical safety (Will I get mugged at the automatic teller
machine?);
• financial security (Does the company know where my
stock certificate is?);
• confidentiality (Are my dealings with the company
private?).
24 6 – 24
9- Understanding/knowing the customer involves making
the effort to understand the customer’s needs. It involves:
• learning the customer’s specific requirements;
• providing individualized attention;
• recognizing the regular customer
10- Tangibles include the physical evidence of the

service:
• physical facilities
• appearance of personnel;
• tools or equipment used to provide the service;
• physical representations of the service, such as a
plastic credit card or a bank statement;
• other customers in the service facility.

25 6 – 25
How do we quality control
those characteristics
involving human behavior?
We must develop a quality of
behavioral system parallel to the
Technical Quality Assurance
System. Including:

26 6 – 26
Including:
• Interpersonal skills
• Organizational climate
• Recruitment, improvement and
training
• Customer feedback
• supervision

27 6 – 27
Image is a major factor in
shaping customer’s
expectation
Therefore ………
Managing a good “IMAGE” means
making customer expectation
possible

28 6 – 28
Service Quality Model: The Gap Model
Customer
Word-of-Mouth
Communications Personal Needs Experience
Expected Service
(Gap 5 )
Perceived Service
Provider Service Delivery

(Gap
External
4)
Communications
(Gap 3 ) to customers
(Gap
1) Service Quality
Specifications
(Gap 2 )
Management
Perceptions of
Customer
Expectations 29 6 – 29
Managers who do not
understand the consumers'
expectation:
Risk either failing to provide
customer satisfaction
Or
Wasting effort on
irrelevant characteristics
Or
Both

30 6 – 30
1. Gap 1: Difference between consumer
expectations and management perceptions
of consumer expectations.
2. Gap 2 : Difference between management
perceptions of consumer expectations and
service quality specifications.
3. Gap 3: Difference between service quality
specifications and the service actually
delivered.
4. Gap 4: Difference between service delivery
and what is communicated about the
service to consumers.
5. Gap 5: Difference between consumer
expectations and perceptions , which in turn
depends on the size and direction of the
four gaps associated with the delivery of
service quality on the marketer’s 31
side. 6 – 31
Closing gap 1
• Talk with customers and potential
customers (interview)
• Pay attention to complaints and warranty
claims (complaints/suggestion boxes /
questionnaires)
• Surveys (market research)
• Panels (focus groups)
• Monitor the competitors and best practices
(benchmarking, reveres engineering)
32 6 – 32
The Secret Formula:
• Consumer’s expectation: comparison
between what they expect and what they
receive
• The way the service is performed: the
service process vs the service outcome
• Quality levels: how to handle problems
and expectations
• Flexibility and adaptability: when does a
low-contact service become a high-
contact service

33 6 – 33
PART THREE:
Quality Management
 What is Total Quality Management?
 Leaders in Quality Management
 Principles of TQM
 TQM Implementation Models
 TQM Tools

1.What is
Total Quality Management?
(TQM)
• Totality: All managerial levels, all
departments, all employees, and the
entire supply chain.
- Quality is everybody’s job (Ford
Company)
• Quality: Quality of the processes and
systems then the quality of the product.
- Do it right the first time.
- Quality cannot be inspected into a
product, it must be built in.

35 6 – 35
Total Quality Management
(TQM) Cont.
• Management: Planning, Organizing,
controlling, Directing (leadership,
communication, rewarding, …)
- Quality management is more than
Quality control.
- Quality management is not quality
engineering.
- Human resources are very critical for the
success of TQM implementation

36 6 – 36
II. Leaders in Quality
Management
W. Edwards Deming 14 Points for

Management
Joseph M. Juran Top
management
commitment,
fitness for use
Armand Feigenbaum Total Quality
Control
Philip B. Crosby Quality is Free
Deming’s Philosophy
• Management Role: about 85% of the problems can
be solved only by management
• The total quality program should lead to desired
goals of improved quality, customer satisfaction,
higher productivity and lower total costs in the
long run
• Corporate culture should focus on long-term
rather the short-term goals
• Management and workers need to speak a
common language
• Organization boundaries are extended to include
supplier, customers, investors, employees, and
the community
• The primary goal of an organization is to satisfy
the customer
38 6 – 38
Deming’s Fourteen Points
1. Create consistency of purpose
2. Lead to promote change
3. Build quality into the product; stop
depending on inspection
4. Build long term relationships based on
performance, not price
5. Continuously improve product, quality,
and service
6. Start training
7. Emphasize leadership
Table 6.1
Deming’s Fourteen Points
8. Drive out fear
9. Break down barriers between
departments
10. Stop haranguing workers
11. Support, help, improve
12. Remove barriers to pride in work
13. Institute a vigorous program of
education and self-improvement
14. Put everybody in the company to work
on the transformation
Table 6.1
Juran’s Quality Trilogy
• Quality planning
• Quality control
• Quality improvement
www.juran.com
41 6 – 41
Key Idea
Juran proposed a simple definition

of quality: “fitness for use.” This
definition of quality suggests that
it should be viewed from both
external and internal perspectives;
that is, quality is related to “(1)
product performance that results in
customer satisfaction; (2) freedom
from product deficiencies, which
avoids customer dissatisfaction.” 6 – 42
Phillip B. Crosby
Quality is free . . .
“Quality is free. It’s not a gift, but it
is free. What costs money are the
unquality things -- all the actions
that involve not doing jobs right the
first time.”

Philip B. Crosby
Absolutes of Quality Management:
• Quality means conformance to
requirements
• Problems are functional in nature
• There is no optimum level of defects
• Cost of quality is the only useful
measurement
• Zero defects is the only performance
standard
www.philipcrosby.c
44
om 6 – 44
A.V. Feigenbaum
• Three Steps to Quality
– Quality Leadership, with a strong
focus on planning
– Modern Quality Technology,
involving the entire work force
– Organizational Commitment,
supported by continuous training
and motivation

Kaoru Ishikawa
• Instrumental in developing Japanese
quality strategy
• Influenced participative approaches
involving all workers
• Advocated the use of simple visual
tools and statistical techniques

III. Principles
of Total Quality
I. Customer and stakeholder focus
II. Participation and teamwork
III. Process focus supported by
continuous improvement and
learning
…all supported by an integrated organizational
infrastructure, a set of management practices,
and a set of tools and techniques

47 6 – 47
I. Customer and
Stakeholder Focus
• Customer is principal judge of
quality
• Organizations must first understand
customers’ needs and expectations
in order to meet and exceed them
• Organizations must build
relationships with customers
• Customers include employees and
society at large
48 6 – 48
Best Practices for Resolving
Customer Complaints
 Make it easy for clients to complain

 Respond quickly to complaints
 Resolve complaints on first contact
 Use computers to manage
complaints
 Recruit the best for customer
service jobs
ii. Participation and Teamwork
• Employees know their jobs best and

therefore, how to improve them
• Management must develop the systems
and procedures that foster participation
and teamwork
• Empowerment better serves customers,
and creates trust and motivation
• Teamwork and partnerships must exist
both horizontally and vertically
50 6 – 50
Employee Involvement
• Cultural Change
- Awareness
- Every-body business
- Internal and External Customer
• Teams
- Special-Purpose Teams
- Problem-Solving Teams
- Self-management Teams
• Individual Development
• Award and Incentives

51 6 – 51
Quality Circles
 Group of employees who meet
regularly to solve problems
 Trained in planning, problem
solving, and statistical methods
 Often led by a facilitator
 Very effective when done
properly

Employee Empowerment
Getting employees involved in product
and process improvements
 85% of quality problems are due to
process and material
Techniques
 Build communication networks that
include employees
 Develop open, supportive supervisors
 Move responsibility to employees
 Build a high-morale organization
 Create formal team structures
Quality and Personal
Values
• Personal initiative has a positive impact
on business success
• Quality begins with personal attitudes
• Quality-focused individuals often
exceed customer expectations
• Attitudes can be changed through
awareness and effort (e.g., personal
quality checklists)

54 6 – 54
iii. Process Focus and
Continuous Improvement
• A process is a sequence of activities
that is intended to achieve some
result

55 6 – 55
Why Continuous
Improvement?
• Enhancing value through new
products and services
• Reducing errors, defects, waste, and
costs
• Increasing productivity and
effectiveness
• Improving responsiveness and cycle
time performance

Continuous Improvement
 Represents continual
improvement of all products,
services and processes
 Involves all operations and work
centers including suppliers and
customers
 All resources: People, Equipment,
Materials, Procedures
Shewhart’s PDCA Model
1.Plan
4. Act Identify the
Implement improvement
the plan and make
a plan
3. Check 2. Do
Is the plan Test the
working? plan
Figure 6.3

Benchmarking
Selecting best practices to use as
a standard for performance
 Determine what to
benchmark
 Form a benchmark team
 Identify benchmarking partners
 Collect and analyze benchmarking
information
s e i
 Take action to match or exceed the U
h
n c
benchmark be re
o u’
© 2006 Prentice Hall, Inc. y6 – 59
IV. TQM Implementation
Models
• TQM Wheel Model
• The Quality Award Approach
USA, Europe, Japan , Kuwait, ..
• The Certification Approach

60 6 – 60
1. TQM Wheel Model

61 6 – 61
62 6 – 62
2.Quality Awards Around
the World
Programs in place
No programs
Malcom Baldrige US
National Quality Award
 Established in 1988 by the U.S.
government
 Designed to promote TQM practices
 Recent winners
 The Bama Companies, Kenneth W.
Monfort College of Business,
Caterpillar Financial Services, Baptist
Hospital, Clarke American Checks,
Los Alamos National Bank
Baldrige Award Criteria Framework
System
Management
Management
of
of process
process Goal
Quality • Customer
Quality
5.0 Satisfaction
5.0 • Customer
Customer
Customer Satisfaction
Human
Human Focus
Focus and
and relative to
“Driver” Resource
Resource Satisfactio
Satisfactio Competitors
Developmen
Developmen nn • Customer
tt and 7.0 Retention
and 7.0
Senior
Senior • Market Share
Executive Management
Management Gain
Executive
Leadership 4.0
4.0 Measure
Leadership s of
1.0
1.0 Strategic
Strategic Progres
Quality Quality
Quality and
and s
Quality Operationa
Planning Operationa • Products and
Planning ll Results Service Quality
3.0 Results
3.0 6.0 • Productivity
6.0
Improvement
Information
Information and
and • Waste
analysis
analysis Reduction/
Elimination
2.0
2.0 • Supplier Quality
65 6 – 65
1. Leadership 125
• Organizational leadership 85
• Public Responsibility and Citizenship 40
2. Strategic Planning 85
• Strategy Development 40
• Strategy Deployment 45
3. Customer and Market Focus 85
• Customer and Market Knowledge 40
• Customer Satisfaction and Relationship 45
4. Information and analysis 85
• Measurement of Organizational Performance 40
• Analysis of Organizational performance 45
5. Human Resource Focus 85
• Work systems 35
• Employee Education, Training , Development 25
• Employee Well-Being and Satisfaction 25
6. Process Management 85
• Product and service processes 55
• Support Processes 15
• Supplier and Partnering Process 15
7. Business Results 450
• Customer Focused Results 115
• Financial and Market Results 115
• Human Resource Results 80
• Supplier and Partner Results 66 25
© 2006 Prentice Hall, Inc. • Organizational Effectiveness Results 115 6 – 66
The European Quality Award
People People
Management Satisfactio
n
Lead Busines
Policy & Process Customer
ershi Satisfactio s
Strategy es n
p Results
Impact on
Resources
Society
Enablers Results
European Foundation for Quality Management, 1992

67 6 – 67
Japanese Deming Prize
• Instituted 1951 by Union of Japanese
Scientists and Engineers (JUSE)
• Several categories including prizes for
individuals, factories, small companies,
and Deming application prize
• American company winners include
Florida Power & Light and AT&T Power
Systems Division

68 6 – 68
The Kuwaiti Quality Award
• Only in Manufacturing Companies
• Public Authority for Industry
• 2001
• Several plants received the award

69 6 – 69
The Kuwaiti Award (2001)

70 6 – 70
3. International Quality
Standards
 Industrial Standard Z8101-1981 (Japan)
 Specification for TQM
 ISO 9000 series (Europe/EC)
 Common quality standards for products
sold in Europe (even if made in U.S.)
 2000 update places greater emphasis on
leadership and customer satisfaction
 ISO 14000 series (Europe/EC)

ISO
• International Standardization
Organization (ISO) developed a set
of standards for companies doing
business in European Union

72 6 – 72
ISO 9000 Standards
• Is a set of standards governing

documenting of a quality program.
• Companies become certified by
providing to a qualified external
examiner that they have complied
with all the requirements

73 6 – 73
Kinds
• ISO 9000 Overview document
• ISO 9001 Design, Produce, Install,
Service
• ISO 9002 Produce, Install
• ISO 9003 Production’s Final
Inspection
• ISO 9004 guidelines

74 6 – 74
ISO 9000 CONTENTS
• Management Responsibility
• Quality System Documentation
• Purchasing
• Product Design
• Inspection
• Training
• Corrective Actions

75 6 – 75
ISO 9000/2000
• More Emphasis on Customer
• More Emphasis on Leadership
• More close to TQM principles
• Only 9001 Certification

76 6 – 76
Structure of ISO 9000/2000
Standards
• 21 elements organized into four
major sections:
– Management Responsibility
– Resource Management
– Product Realization
– Measurement, Analysis, and
improvement

77 6 – 77
ISO 9000:2000 Quality
Management Principles
1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. System Approach to Management
6. Continual Improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier
Relationships
ISO 14000
Environmental Standard
Core Elements:
 Environmental management
 Auditing
 Performance evaluation
 Labeling
 Life-cycle assessment

TQM In Services
 Service quality is more difficult to
measure than the quality of goods
 Service quality perceptions depend
on
 Intangible differences between
products
 Intangible expectations customers
have of those products

Service Quality
The Operations Manager must
recognize:
1. The tangible component of
services is important
2. The service process is important
3. The service is judged against the
customer’s expectations
4. Exceptions will occur

Ethics and Quality
Management
 Operations managers must
deliver healthy, safe, quality
products and services
 Poor quality risks injuries,
lawsuits, recalls, and regulation
 Organizations are judged by
how they respond to problems

Six Sigma
 Originally developed by Motorola,
Six Sigma refers to an extremely
high measure of process capability
 A Six Sigma capable process will
return no more than 3.4 defects per
million operations (DPMO)
 Highly structured approach to
process improvement

Six Sigma
1. Define critical outputs
and identify gaps for DMAIC Approach
improvement
2. Measure the work and
collect process data
3. Analyze the data
4. Improve the process
5. Control the new process to
make sure new performance
is maintained
Six Sigma Implementation
 Emphasize DPMO as a standard metric
 Provide extensive training
 Focus on corporate sponsor support
(Champions)
 Create qualified process improvement
experts (Black Belts, Green Belts, etc.)
 Set stretch objectives
This cannot be accomplished without a major

commitment from top level management

PART FOUR
Tools of TQM
 Tools for Generating Ideas
Check sheets
Scatter diagrams
Cause and effect diagrams
 Tools to Organize the Data
Pareto charts
Flow charts
 Tools for Identifying Problems
Histogram
Statistical process control chart
Seven Tools for TQM
(a) Check Sheet: An organized method of
recording data
Hour
Defect 1 2 3 4 5 6 7 8
A /// / / / / /// /
B // / / / // ///
C / // // ////
Figure 6.5

Seven Tools for TQM
(b) Scatter Diagram: A graph of the value
of one variable vs. another variable
Productivity
Absenteeism
Figure 6.5

Seven Tools for TQM
(c) Cause and Effect Diagram: A tool that
identifies process elements (causes) that
might effect an outcome
Cause
Materials Methods
Effect
Manpower Machinery
Figure 6.5

Seven Tools for TQM
(d) Pareto Charts: A graph to identify and plot
problems or defects in descending order of
frequency
Frequency
Percent
A B C D E
Figure 6.5

Seven Tools for TQM
(e) Flow Charts (Process Diagrams): A chart
that describes the steps in a process
Figure 6.5

Seven Tools for TQM
(f) Histogram: A distribution showing the
frequency of occurrence of a variable
Distribution
Frequency
Repair time (minutes)

Figure 6.5

Seven Tools for TQM
(g) Statistical Process Control Chart: A chart with
time on the horizontal axis to plot values of a
statistic
Upper control limit
Target value
Lower control limit
Time
Figure 6.5

Cause-and-Effect Diagrams
clean pillows
Material Machinery
Insufficient
& blankets
not available
on-board
equipment
Deicing
Inadequate
Mechanical delay
supply of
magazines on plane
Inadequate special Broken luggage
meals on-board carousel
Dissatisfied
Airline
Overbooking policies Understaffed Customer
crew
Bumping policies Understaffed
Poor check-in
Poorly trained
ticket counters
attendants
policies
Mistagged
bags
Methods Manpower
Figure 6.6

Pareto Charts
Data for October
– 100
70 – – 93
– 88
60 – 54
Frequency (number)
Cumulative percent
– 72
50 –
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

Flow Charts
Packing and shipping process
Sealing Quick freeze

Packing Storage Shipping
Weighing storage
station (4 to 6 hrs) dock
Labeling (60 Mins)

Statistical Process Control
(SPC)
 Uses statistics and control charts to
tell when to take corrective action
 Drives process improvement
 Four key steps
 Measure the process
 When a change is indicated, find the
assignable cause
 Eliminate or incorporate the cause
 Restart the revised process
An SPC Chart
Plots the percent of free throws missed
Upper control limit

20%
10%
Coach’s target value
| | | | | | | | | Lower control limit

0% 1 2 3 4 5 6 7 8 9
Game number
Figure 6.7

Inspection
 Involves examining items to see if
an item is good or defective
 Detect a defective product
 Does not correct deficiencies in
process or product
 It is expensive
 Issues
 When to inspect
 Where in process to inspect
When and Where to Inspect
1. At the supplier’s plant while the supplier is
producing
2. At your facility upon receipt of goods from
the supplier
3. Before costly or irreversible processes
4. During the step-by-step production
processes
5. When production or service is complete
6. Before delivery from your facility
7. At the point of customer contact
Inspection
 Many problems
 Worker fatigue
 Measurement error
 Process variability
 Cannot inspect quality into a
product
 Robust design, empowered
employees, and sound processes
are better solutions
Source Inspection
 Also known as source control
 The next step in the process is
your customer
 Ensure perfect product to your
customer
Poka-yoke is the concept of foolproof devices

or techniques designed to pass only
acceptable product

Service Industry Inspection
What is
Organization Standard
Inspected
Jones Law Office Receptionist Is phone answered by the
performance second ring
Billing Accurate, timely, and
correct format
Attorney Promptness in returning
calls
Table 6.4

What is
Inspected
Hard Rock Hotel Reception Use customer’s name
desk
Doorman Greet guest in less than 30
seconds
Room All lights working, spotless
bathroom
Minibar Restocked and charges
accurately posted to bill
Table 6.4

What is
Inspected
Arnold Palmer Billing Accurate, timely, and
Hospital correct format
Pharmacy Prescription accuracy,
inventory accuracy
Lab Audit for lab-test accuracy
Nurses Charts immediately
updated
Admissions Data entered correctly and
completely
Table 6.4

What is
Inspected
Hard Rock Cafe Busboy Serves water and bread
within 1 minute
Busboy Clears all entrée items and
crumbs prior to dessert
Waiter Knows and suggest
specials and desserts
Table 6.4

What is
Inspected
Nordstrom’s Display areas Attractive, well-organized,
Department stocked, good lighting
Store Rotation of goods,
Stockrooms
organized, clean
Salesclerks Neat, courteous, very
knowledgeable
Table 6.4

Some Effort “in Arabic
(1994)

108 6 – 108
TQM in Service Organizations
(in Arabic, 2002)

109 6 – 109

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Operations

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The totality of features and

American Society for Quality

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Total Total Cost

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1. Performance ‫قدرة السلعة على األداء‬ .1

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* Parasurman, Zeithaml , & Berry.

2- Responsiveness concerns the willingness or readiness of

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4- Access involves approachability and ease of contact. It

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• consideration for the consumer’s property (e.g., no

10- Tangibles include the physical evidence of the

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Provider Service Delivery

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W. Edwards Deming 14 Points for

Juran proposed a simple definition

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 Make it easy for clients to complain

• Employees know their jobs best and

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• Is a set of standards governing

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