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Topic 11 Quality Management, Apuntes de Administración de Empresas

Universitat de Barcelona (UB)Administración de Empresas

Asignatura: Direccio Operacions, Profesor: ju ju, Carrera: Administració i Direcció d'Empreses, Universidad: UB

Tipo: Apuntes

2015/2016

Subido el 18/06/2016

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1Quality Management
Topic 11
Quality management
Operations Management
Economy and Business Organization department
2Quality Management
Index
• Quality definition
• Quality costs
• Total quality
Bibliography:
DOMÍNGUEZ MACHUCA/ ÁLVAREZ GIL/ GARCÍA GONZÁLEZ/RUÍZ JIMÉNEZ:
Dirección de Operaciones. Aspectos tácticos y operativos en la producción y los servicios. Mc. Graw-Hill. Interamericana
de España, S.A. Madrid, 1994.
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Quality Management 1

Topic 11

Quality management

Operations Management Economy and Business Organization department Quality Management 2 Index

  • Quality definition
  • Quality costs
  • Total quality Bibliography: DOMÍNGUEZ MACHUCA/ ÁLVAREZ GIL/ GARCÍA GONZÁLEZ/RUÍZ JIMÉNEZ: Dirección de Operaciones. Aspectos tácticos y operativos en la producción y los servicios. Mc. Graw-Hill. Interamericana de España, S.A. Madrid, 1994.

Quality Management 3 According to Juran

Adequacy and suitability for use.

According to American Society of Quality Control (A.S.Q.C.)

Set of characteristics of a product, process or

service that bear on its ability to satisfy user

needs.

Quality management Quality Management 4 Also called PDCA cycle

( Plan, Do, Check, Action )

Action Planning Check Execution Quality cycle

 Deming (or Shewhart) cycle. 4 steps:

 Change planning  Application  Checking of results  Adequate decisions

Quality Management 7

Optimum quality level n*  maximum profit.

Income Costs Profit = Income - Costs Quality level € n 1 n n 2* Optimum quality level Quality Management 8 Costs generated by defective articles

Identified in the company

Identified by customers

Inspection costs Prevention costs Quality costs

All costs are caused by a defective

manufacturing.  costs of no quality or defective

quality.

Quality Management 9

Identified defective products

Action possibilities and associated costs:

  • Articles rejection Manufacturing costs (raw material, staff, energy,…).
  • Discount sales of defective products : Additional cost: price difference between both type of products.
  • Remaking the articles: (products from an assembly

line such as cars, televisions, mobiles,…

Reparation costs: personnel, pieces, ... Costs generated by defective articles Besides tangible costs, there are other intangible costs such as production looses, production reprogramming, delays in deliveries, … Quality Management 10

Defective products not identified by the company

and sold to customers.

If defective products are NOT detected in the company and

are delivered to the market, the company will face

complaints from customers.

In addition to assistance costs, repair costs, pieces

substitution, displacements, … there is a dangerous

intangible cost: image loss of the company caused by

negative feedback of customers concerning the quality of

products.

Costs generated by defective articles

Quality Management 13

Total cost of Quality is the sum of defective products

cost plus inspection and prevention costs.

Zone A (costs of defective products higher than 70% of total cost): zone of quality improvement Zone B: indifference zone (includes the optimum quality point) Zone C (costs of prevention and inspection higher than defective products costs): perfectionism zone optimum Curve of total quality cost Zone A Zone B Zone C Total cost of Quality Quality Management 14

Historically:

  • Quality only referred to inspection of finished products.
  • There were conflicts between quality control department and production department. Quality control department didn’t allow any defective product to be delivered to the market while production personnel try to deliver defective (and functional) products to the market in order to achieve productivity objectives.

Nowadays:

  • It is necessary to offer quality at minimum price due to strong competition in the market.
  • Quality concept has evolved and now involves avery area of the company  Total Quality Total Quality

Quality Management 15 Total Quality

CT

1 2 3 4 5 6 Product characteristics Characteristics demanded by consumers Project characteristics

  • Zones 1 & 4, characteristics demanded by consumer that are NOT taken into account when the project is carried out.
  • Zone 5, characteristics of the product that are outside the projectand are NOT demanded by the potential user.