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BUSMAN

The document outlines various definitions and views of quality, including product and service quality, and introduces key principles of Total Quality Management (TQM). It discusses methodologies for quality improvement, challenges in implementing TQM, and the importance of capacity decisions in production. Additionally, it covers techniques for methods analysis and the significance of efficiency and utilization in measuring capacity performance.

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Camille Torralba
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0% found this document useful (0 votes)
4 views

BUSMAN

The document outlines various definitions and views of quality, including product and service quality, and introduces key principles of Total Quality Management (TQM). It discusses methodologies for quality improvement, challenges in implementing TQM, and the importance of capacity decisions in production. Additionally, it covers techniques for methods analysis and the significance of efficiency and utilization in measuring capacity performance.

Uploaded by

Camille Torralba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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4.

​ Conformance – Matches design


standards and specs.
Definition of Quality 5.​ Durability – How long the product
lasts.
Quality = How well a product, service, process,
6.​ Serviceability – How easy and
or idea meets or exceeds expectations.
affordable it is to repair.
7.​ Aesthetics – How it looks, feels,
sounds, tastes, or smells.
8.​ Perceived Quality – Customer’s
Five Views of Quality perception (brand, marketing, etc.).

1.​ Transcendent View


○​ Quality is recognized but hard
to define (innate excellence). B. Service Quality – SERVQUAL
2.​ Product-Based View Model
○​ Quality = More/better
measurable attributes (e.g. more By Parasuraman, Zeithaml, and Berry
RAM, higher resolution).
3.​ User-Based View Measures the gap between customer
○​ Quality = Satisfies the user's expectations and their actual experience.
needs and preferences.
5 Dimensions of Service Quality:
4.​ Manufacturing-Based View
○​ Quality = Conformance to
1.​ Tangibles – Physical facilities,
design and specifications.
equipment, staff appearance.
5.​ Value-Based View
2.​ Reliability – Doing what was promised,
○​ Quality = Worth based on
accurately and consistently.
performance vs. cost (good
3.​ Responsiveness – Willingness to help
quality at fair price).
and provide prompt service.
4.​ Assurance – Knowledge and courtesy
of staff, building trust.
5.​ Empathy – Personalized, caring service
Dimensions of Quality to customers.

A. Product Quality – Garvin’s 8


Dimensions
7 Principles of Quality
By David Garvin (1988)
Management
1.​ Performance – Main functions of the
product. (From ISO Quality Management Guidelines)
2.​ Features – Additional functions that
1.​ Customer Focus
enhance usability.
○​ Understand current and future
3.​ Reliability – Consistent performance
customer needs.
over time.
○​ Deliver what the customer ○​ Build good relationships with
wants (or more). suppliers, partners, and other
○​ Satisfied customers = loyalty stakeholders.
and repeat business. ○​ Work together for mutual
2.​ Leadership benefit.
○​ Leaders set direction and align ○​ Strong partnerships = more
the organization toward quality consistent quality and less risk.
goals.
○​ Create a clear vision and
supportive environment.
What is TQM (Total Quality
○​ Encourage a culture where Management)?
everyone is committed to
quality. TQM is a comprehensive approach to
3.​ Engagement of People improving the quality of products, services,
○​ Involve everyone at all levels. processes, and workplace culture by involving
○​ Encourage participation, all employees in continuous improvement.
teamwork, and personal
responsibility.
○​ Empower people to take
initiative and contribute.
4.​ Process Approach
History & Key Pioneers of
○​ Manage activities as TQM
interconnected processes.
○​ Know what goes in, what Frederick W. Taylor – Scientific
happens, and what comes out.
Management
○​ Helps deliver consistent and
predictable results.
Focused on efficiency and standardization
5.​ Improvement
through:
○​ Continuous improvement =
long-term success. 1.​ Work Analysis – Breaking tasks into
○​ Always seek better ways of components.
doing things. 2.​ Time and Motion Studies –
○​ Encourage innovation, learning Eliminating wasteful movements.
from mistakes, and prevention. 3.​ Standardization – Uniform tools,
6.​ Evidence-Based Decision Making techniques, and procedures.
○​ Base decisions on data and 4.​ Division of Labor – Specialized tasks
analysis, not guesses. for higher productivity.
○​ Use accurate, reliable, and 5.​ Training – Matching workers with
relevant information. suitable skills and training them.
○​ Helps make informed choices 6.​ Incentives – Pay tied to productivity.
that produce better outcomes. 7.​ Managerial Control – Strong
7.​ Relationship Management management oversight of processes.
Walter A. Shewhart – Statistical 11.​ Replace quotas and numerical goals
Process Control (SPC) with leadership.
12.​ Restore pride in workmanship for all
●​ Developed Control Charts (Shewhart employees.
Charts). 13.​ Encourage education and
●​ Introduced SPC to monitor and control self-improvement.
quality using data. 14.​ Make quality improvement everyone’s
●​ Emphasized that all processes have job.
inherent variation.
●​ SPC allows real-time monitoring to
ensure consistent, high-quality output.
Spread and Development of
TQM
W. Edwards Deming – Quality
Management and Statistical Thinking ●​ 1950s: Deming’s methods were adopted
in Japan.
●​ Advocated for data-driven quality ●​ 1970s–1980s: Western companies
control. recognized Japan’s success and began
●​ Taught Japanese industries about quality adopting quality practices.
post-WWII, influencing: ●​ 1980s–1990s: TQM became formalized
○​ Kaizen (continuous through books like:
improvement) ○​ Out of the Crisis by Deming
○​ Toyota Production System ○​ Quality Is Free by Philip
(TPS) Crosby
●​ Global Adoption: TQM spread to
Deming’s 14 Points for Management service industries, healthcare, education,
(simplified): and government.

1.​ Commit to long-term improvement.


2.​ Adopt a new philosophy focused on
quality.
3.​ Build quality into the product, not just
Core Elements of TQM
inspect it.
1.​ Customer Focus – Understand and
4.​ Work with fewer, reliable suppliers.
meet/exceed customer expectations.
5.​ Improve processes continuously.
2.​ Employee Involvement – Engage all
6.​ Provide job training.
employees in quality improvement.
7.​ Practice supportive leadership.
3.​ Continuous Improvement (Kaizen) –
8.​ Eliminate fear in the workplace.
Make ongoing, incremental
9.​ Break down barriers between
improvements.
departments.
4.​ Process Management – Optimize
10.​ Avoid empty slogans and unrealistic
processes through analysis and control.
targets.
5.​ Supplier Relationships – Develop ○​ Maintain transparency.
strong, cooperative relationships with
suppliers. 4. Lean Manufacturing
6.​ Leadership Commitment – Leaders
must promote and support a culture of ●​ Goal: Maximize value, minimize
quality. waste.
7.​ Data-Driven Decision Making – Use ●​ Five principles:
accurate data to guide improvements. 1.​ Define value (from the
8.​ Training and Education – Invest in customer’s view).
skill development for employees. 2.​ Map the value stream (analyze
9.​ Benchmarking – Compare against best for waste).
practices to identify improvement areas. 3.​ Create flow (remove barriers
10.​ Quality Culture – Make quality a and delays).
shared value across the organization. 4.​ Establish a pull system (produce
11.​ Communication – Ensure transparency only when needed).
and alignment on quality goals. 5.​ Strive for perfection (continuous
evaluation).

5. ISO 9000 Series


Key TQM Methodologies and ●​ International standards for establishing
Frameworks and maintaining a Quality Management
System (QMS).
1. Deming’s 14 Points – Management
principles for systemic quality
improvement.
Implementing TQM: Steps
2. Juran Trilogy – By Joseph M. Juran
1.​ Assessment – Evaluate current quality
●​ Quality Planning – Design for quality. practices.
●​ Quality Control – Monitor and adjust 2.​ Goal Setting – Define quality
processes. objectives.
●​ Quality Improvement – Eliminate 3.​ Planning – Develop action plans for
causes of problems and drive change. improvement.
4.​ Training – Educate staff on TQM
3. Kaizen principles and tools.
5.​ Implementation – Apply quality
●​ Philosophy of continuous initiatives across the organization.
improvement. 6.​ Monitoring – Track progress using
●​ Key principles: metrics and feedback.
○​ Know your customer. 7.​ Continuous Improvement – Make
○​ Eliminate waste. ongoing enhancements.
○​ Go to the source (gemba).
○​ Empower employees.
Challenges in Implementing Steps in the Methods
TQM Analysis Process
●​ Resistance to change 1.​ Select the Job​
●​ Lack of management support Choose tasks that are repetitive, costly,
●​ Poor training and communication unsafe, or bottlenecks.
●​ Low employee engagement 2.​ Gather Information​
●​ Short-term focus Collect details on:
●​ Weak organizational culture ○​ Layout
●​ Poor understanding of customer needs ○​ Tools & materials
●​ Difficulty sustaining momentum ○​ Procedure steps
○​ Time per step
○​ Worker motions
Methods Analysis – Overview 3.​ Record the Existing Method​
Use charts, diagrams, or video to
Definition:​
document the current process.
Methods Analysis is a systematic study of how
4.​ Analyze the Data​
a task or job is performed, aiming to eliminate
Ask:
unnecessary steps, improve efficiency,
○​ Can a step be eliminated,
enhance safety, and maintain quality. It
combined, or simplified?
focuses on how work is done.
○​ Is the sequence or layout
optimal?
○​ Is equipment appropriate?
5.​ Develop Improved Methods
Objectives of Methods ○​ Rearrange or remove steps
○​ Change layout or tools
Analysis ○​ Combine or simplify operations
6.​ Evaluate the New Method
1.​ Improve Efficiency – Reduce time and
○​ Check feasibility
effort needed to perform a task.
○​ Assess cost-effectiveness and
2.​ Reduce Costs – Minimize waste, labor,
benefits
and energy use.
7.​ Implement the New Method
3.​ Improve Safety – Eliminate hazardous
○​ Train workers
practices.
○​ Apply the improved method in
4.​ Enhance Quality – Achieve consistent
practice
output through standard procedures.
8.​ Follow Up
5.​ Reduce Fatigue – Lower physical and
○​ Monitor results
mental strain.
○​ Adjust if needed to sustain
6.​ Improve Job Satisfaction – Design
improvements
more ergonomic, less frustrating tasks.
Definition:​
Techniques Used in Methods
Capacity decisions involve determining how
Analysis much production capability (resources, time,
facilities) an organization should allocate to
Technique Purpose efficiently meet current and future demand.
Process Visualizes the step-by-step
Flowchart process

Worker-Ma Shows interaction between Why Capacity Decisions Are


chine Chart workers and machines
Important
Activity Tracks multiple people or
Chart machines at once ●​ Long-term effect on competitiveness,
profitability, and customer satisfaction
Operation Focuses on a worker’s actions ●​ Helps balance costs and resources while
Chart at a workstation avoiding both overcapacity and
Flow Maps movement of materials undercapacity
Diagram or people in a workspace

Motion Analyzes basic body


Study movements (e.g., reach, grasp, Determinants of Effective
move)
Capacity
Therbligs Classification of basic motions
used in tasks Factor Explanation

Micromotio Uses video to study fine Faciliti Size, layout, and location determine
n Study movements es flow and potential for future
expansion.
Work Observes work at random
Sampling times to find time spent per Produ Standardized outputs allow for more
task ct/Serv predictable and efficient capacity
ice use.
Ergonomics Designs tasks to suit human
Analysis capabilities Proces Includes quality standards,
s setup/changeover times, and
Value Lean tool to visualize flow productivity.
Stream from customer order to
Mapping delivery Huma Skills, training, motivation, and
n turnover impact capacity realization.
Simulation Uses software to test and Factor
analyze process changes s

Capacity Decisions
Policy Management choices like shift ○​ Daily = 24 ÷ 4 = 6 cakes
policies and overtime rules affect ○​ Weekly = 6 × 7 = 42 cakes
availability.
2. Effective Capacity
Opera Includes scheduling, inventory
tional control, equipment differences, and ●​ Design capacity minus losses due to
quality control. maintenance, breaks, setup time, etc.

Suppl Supplier capability and logistics Formula:​


y must align with capacity decisions. Effective Capacity = Design Capacity × (1 -
Chain Downtime%) × (1 - Setup%)

Extern Regulations and market conditions Example:


al may restrict or influence capacity
Factor options. ●​ Design Capacity = 1000 units/day
s ●​ Downtime = 5%, Setup = 2%
●​ Effective Capacity = 1000 × (0.95) ×
(0.98) = 931 units/day

Steps in Capacity Planning


1.​ Estimate future capacity needs
2.​ Evaluate current capacity and identify
Using Capacity to Measure
gaps Performance
3.​ Explore alternatives to meet demand
4.​ Conduct financial analysis of options These two functions of capacity are used to
5.​ Consider qualitative factors (risk, evaluate Efficiency and Utilization.
workforce impact)
6.​ Choose the best long-term solution
7.​ Implement the selected plan
8.​ Monitor outcomes and adjust 1. Efficiency
accordingly
●​ Measures how effectively inputs are
turned into outputs
●​ Focuses on minimizing waste and
maximizing productivity
Types of Capacity
Formula:​
1. Design Capacity Efficiency (%) = (Actual Output / Effective
Capacity) × 100
●​ The maximum possible output under
ideal conditions
●​ Example:
○​ A bakery runs 24 hours/day, 1 2. Utilization
cake every 4 hours
●​ Measures how much of the total
available capacity is actually being
used
●​ Helps identify if resources (labor,
equipment) are idle or underused

Formula:​
Utilization (%) = (Actual Output / Design
Capacity) × 100

Comparison:

Mea What It Compares Purpose


sure

Effic Actual Output vs. Measures


iency Effective Capacity productivity

Utili Actual Output vs. Measures


zatio Design Capacity resource
n usage

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