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Managing Quality
A
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Dr. Anisah Firli

Source : Jay Heizer, Barry Render, Chuck Munson. Operation Management.

 Managing Quality Provides
Competitive Advantage at Arnold
Palmer Hospitals

• Arnold Palmer Hospital has touched the lives of over 7 million children and women and their families

• The patients come not only from Orlando, but from 50 states and around the world

• Arnold Palmer Quality is the mantra-practiced in a fashion like Ritz Carlton practices in the hotel
industry
Quality Management Technique
Managers follow patient questionnaire result daily

Continuous Improvement : The hospital constantly seeks new way t

lower infection rates, readmission
rates, deaths, costs, and hospital stay times.

Employee Empowerment : When employees see a problem, they are

trained to take care of it; staff are empowered to give gifts to patien
displeased with some aspect of services

Benchmarking: hospital belongs to a 2000 member organization tha

monitor standards in many areas and provides monthly feedback to
the hospital

Just in Time for suppliers

Using tools such as Pareto Charts and flowcharts

 Quality and Strategy
 Quality is a wonderful tonic for improving operations
 Managing Quality helps build successful strategies of differentiation, low
cost and response

Improvements in quality
help firms increase sales
and reduce costs, both of
which can improve
profitability

Companies with highest

quality will five times as
productive as companies
with the poorest quality
Achieve Total Quality Management
 Defining Quality
The Operations Manager’s Objective is to build a
total quality management system that identifies
and satisfies customer needs

Quality : The ability of a Product of Service to

Meet Customer Needs

Quality is user Quality is Quality is product

based Manufacturing based
based
Implications of Quality

Product Liability Global Implications

Company Reputation
• Design, produce, • A company and a country
Quality will show up to compete effectiverly in
distribute liable for
in perceptions about damages or injuries Global economy
the firm’s new • • Product must meet global
Customer Product
products, employment Safety Act sets and quality, design and price
practices, and supplier enforces product
expectations
relations standards

Malcolm Baldrige National Quality Award

ISO 9000 International Quality Standards
1. Top Management Leadership
2. Customer Satisfaction 7. A system approach to management
3. Continual Improvement 8. Mutually beneficial supplier relationships
4. Involvement of People
5. Process Analysis
6. Use of data driven decision making
 Cost of Quality (COQ)

PREVENTION APPRAISAL INTERNAL EXTERNAL

COST COSTS FAILURE COSTS FAILURE COSTS
Cost related to Cost that resullts from
Cost associated with Cost that occur after
evaluating products, production of defective
reducing the potential delivery of defective
processes, parts, and parts or services before
for defective parts of parts or services
services delivery to customers
services

Example: training, Ezample :rework, return

Example : testing, lab, Ezample : rework,
quality improvement goods, liabilities, lost
inspectors scrap, downtime
program goodwill, costs to society
Total Quality Management
Deming’s 14 Points for Implementing Quality Improvement
 Continuous Improvement

4.Act: 1.Plan:
Implement
the plan
Identify the
improvement
PLAN
and make a
plan DO
CHECK
3.Check: 2.Do: ACTION
Is the plan
working Test the plan
Six Sigma
(1) Defines the project’s purpose, scope, and
outputs and then identifies the required process
information, keeping in
mind the customer’s definition of quality;
(2) Measures the process and collects data;
(3) Analyzes the data, ensuring repeatability (the
results can be duplicated) and reproducibility
(others get the same result);
(4) Improves, by modifying or redesigning, existing
processes and procedures;
(5) Controls the new process to make sure
performance levels are maintained.
Employee Empowerment
Improving employees in every step of the production process
Developing Building
Open, High Morale
01 supportive 03
supervisions
Organizayion 05

Creating
Building 02 Moving 04 Formal
Communications Responsibility Organization
as team
 Benchmarking
Involves selecting a demonstrated standard of products, services, costs, or practices that represent the very best
performance for processes or activities very similar to your own

Form Collect
a and
01 Benchmark 03
Team
Analyze 05

02 04
Determine what Take action
Identity To match
To Benchmark
Benchmark Or exceed the
Partners benchmark

Internal Benchmarking
 Just in Time
JIT Cuts the cost of Quality
Cost are directly related to inverntory on
hand  JIT Cost ara lower

JUST
JIT Improves Quality IN
JIT shirks lead time, it keeps evidence of TIME
error
JIT Creates an early warning system for
quality problem.

Better Quality means less inventory

Keeping Inventory is to protect against poor
production performance
 Taguchi Concepts
Quality Robustness, Target-Oriented Quality, and The Quality loss Function
Knowledge of TQM Tools
7 Tools of TQM
Knowledge of TQM Tools
7 Tools of TQM
The Role of Inspection
When and Where to Inspect
Deciding when and where to inspect depends on the type of process and the value added
at each stage. Inspections can take place at any of the following points:
At your supplier’s plant while the supplier is producing.
At your facility upon receipt of goods from your supplier.
Before costly or irreversible processes.
During the step-by-step production process.
When production or service is complete.
Before delivery to your customer.
At the point of customer contact.
 TQM in Services
Reliability Responsiveness
Tangibles Competence

Access Service Quality

Attributes

Security Courtesy
© 1995 Corel Corp.

Credibility Communication
 Reliability – consistency and dependability
Responsiveness – willingness/readiness of employees to provide service;
timeliness
Competence – possession of skills and knowledge required to perform service
Access – approachability and ease of contact
Courtesy – politeness, respect, consideration, friendliness of contact personnel
Communication – keeping customers informed in languages they understand
Credibility – trustworthiness, believability, honesty
Security – freedom from danger, risk or doubt
Understanding/knowing the customer – making the effort to understands the
customer’s needs
Tangibles – the physical evidence of the service