Operations Manager

Deliver a quality product/service to the right place at the right time and at the right price.

Quality Management
Highlights
The resounding success of Japanese manufacturing firms have invariably been linked to excellent practices in quality management in the last 30 years. Much of the progress that organisations made in quality and productivity management is attributed to the teachings of quality gurus such as Deming, Juran, Crosby, Taguchi, Shingo and Ishikawa. A good quality management system must
enable a manager to understand the qualitative attributes that influence a customer and have a method of translating these into unambiguous quantifiable parameters for design and manufacturing

Quality Management
Highlights
A total quality management programme consists of three components; Top management commitment, employee involvement through continuous improvement initiatives, training and skill development and investment in robust systems. Several tools and techniques are available that help in
highlighting the problems, identifying specific improvement opportunities, analysing problems and their root causes, and operation and strategic planning for building quality into products and services.

Alternative certification procedures and award mechanisms are available to recognise excellent quality management systems in organisations.

Is 99% accuracy good enough?

What Is Quality?
The degree of excellence of a thing Fitness For Use Ability of the product to consistently meet or exceed customer expectations.

Alternative definitions of Quality

Qualitative and Intangible attributes of Quality Customer
Fitness for Use Fulfill customer needs Conformance to specs Minimize loss to society

Firm

Quantifiable attributes of quality

Quality Revolution in the 21st century

Salient features Alternative ideas about what constitutes good quality Newer methods to build quality in products and services New tools to assess performance of an organisation with respect to quality Changed roles of middle managers and supervisors from one of control to facilitation of the process of building quality into the products and services

Quality Management
Changing Perceptions
Yesterday It is often uneconomical to make quality improvements since it brings down productivity, increases cost and investment. Today Productivity goes up and cost comes down as quality goes up. This fact is Known, but only to a selected few.

Does Quality Matter?

Reputation Costs and market share Productivity Product liability International implications

Quality And Productivity

Productivity = output / input Fewer defects increase output Quality improvement reduces inputs

Quality Specifications
Quality of Design
Refers to the intention of designer to include or exclude certain features.

Quality of Conformance
Refers to the degree to which product conforms to the intent of design.

Both aspects are important.

Best design cannot overcome poor workmanship. Good workmanship cannot compensate for poor quality of design.

Service Quality
1. Time & Timeliness
customer waiting time, completed on time

2. Completeness
customer gets all they asked for

3. Courtesy
treatment by employees

Service Quality
4. Consistency
same level of service for all customers

5. Accessibility & Convenience

ease of obtaining service

6. Accuracy
performed right every time

7. Responsiveness
reactions to unusual situations

Categories of Quality Costs

Quality Costing

Quality Costs
Control Costs Failure Costs

Prevention

Appraisal

Internal

External

Costs Associated with Quality Management

Prevention costs Appraisal costs Internal failure costs External failure costs

Cost of Quality Some Assumptions

Failures are caused

Prevention is cheaper

Performance can be measured

Prevention Costs
Costs associated with preventing defects before they happen. Example
Costs of process design, Product and Service design, Employee training, Supplier programs, etc.

As quality increases this cost increase.

Appraisal Costs
Costs incurred in assessing the level of quality. Example
Costs of inspection, testing.

As quality increases this cost decrease.

Internal Failure Costs

Internal failures are those that are discovered during the production process. Example
Cost of reworking.

As quality increases this cost decrease.

External Failure Costs

External failures are those that are discovered after delivery to the customer. Example
Warranty costs, Loss of market share, Lawsuits from injury.

As quality increases this cost decrease.

Quality Assurance
Product/Service Design Transformation process Service after delivery

Elements of a Quality Assurance System

Understand customer needs Translate them to meaningful measures for the operating system Mechanisms for identifying quality problems Top Management Commitment to Quality Quality Certifications & Benchmarking exercises

Quality Assurance System

Documentation of all quality related initiatives for continuous learning & improvement

Tools & techniques for the employees For tracking problems to their root causes Identifying corrective measures

Employee involvement for continuous focus on quality improvement

Methods for preventing recurrence of problems

Quality Certifications & Awards

No

Name of the Award/Certification

Awarding Agency

Applicable to whom

Remarks

1 2

4 5

Some well known Quality Awards Union of Japanese No geographical Scientists & restrictions for Engineers (JUSE) applicants. National Institute Open only for Malcom Baldrige of Standards & US corporations National Quality Technology Award (NIST), USA European Open only for European Quality Foundation for European Award Quality companies Management (EFQM) Confederation of Any company in CII-EXIM Business Indian Industries India can apply Excellence Award (CII) Indian Rajiv Gandhi National Bureau of Indian Standards (BIS) companies can Quality Award apply Deming Prize

More than one may be selected for the prize. Only one winner selected for each category Only one winner selected for each category Only one winner selected for each category Four categories (Large scale manufacturing, small scale manufacturing, service sector, BEST OF ALL). Rating agencies assess and recommend certification. Certificates valid for three years. Deals with occupational health & safety management

Some well known quality certifications International Any company ISO 9000 series Organization for can apply for the ISO 14000 series certification (Environmental issues) Standardization QS 9000 series (Automotive sector) TL 9000 series (Telecommunication Sector) An association of Companies can OHSAS 18001 national standards apply with the bodies respective national standards body.