operation, production & material management

8/14/2019 Operation, Production & Material Management

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OPERATION, PRODUCTION &OPERATION, PRODUCTION &

MATERIAL MANAGEMENTMATERIAL MANAGEMENT

LEADERS OF THE QUALITY

MOVEMENT BY

PHILLIP CROSBY

Presentation by

Kaustubh Chaphalkar

Section- A


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TOPIC TO BE DISCUSSTOPIC TO BE DISCUSS

Quality Concepts.

Quality Management Maturity Grid

Fourteen-Step Quality ImprovementProgram

Real-Life Example


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What does quality is free mean?What does quality is free mean?

vA quality program can save acompany more money than itcosts to implement

vProfitability is best accomplishedby reducing the cost of poorquality and preventing defects

vCost savings include prevention,appraisal, and failure costs.


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The Integrity Systems TableThe Integrity Systems Table

Management participation andattitude

Professional quality managementOriginal programs

Recognition


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Quality Management Maturity GridQuality Management Maturity Grid

qFive stages of an organizationsmaturity

qSix measurement categories

Management understanding andattitude

Quality organization statusProblem handlingCost of quality as a percent of salesQuality improvement actions


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Maturity Grid Stage I: UncertaintyMaturity Grid Stage I: Uncertainty

Quality is the responsibility of the qualitydepartment.

Quality is hidden within manufacturing orengineering; no inspection

The cost of quality is unknown. In reality itis about 20%.

There are no organized qualityimprovement activities.


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Maturity Grid Stage II: AwakeningMaturity Grid Stage II: Awakening

While quality management may be valuable,the organization is not willing to commitresources.

A quality leader is appointed, but theemphasis is on appraisal and moving theproduct.

Teams address major problems, but long-range solutions are not solicited.

The cost of quality is reported at 3%, but isactually 18%.

Activities are limited to short-range,motivational efforts.


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Maturity Grid Stage III: EnlightenmentMaturity Grid Stage III: Enlightenment

Management adopts a supportive andhelpful stance.

Quality is elevated to a functional levelequivalent to engineering, marketing, etc.

Problems are resolved openly and in anorderly way.

The cost of quality is reported as 8%,though it is really about 12% of sales.

The fourteen-step quality improvement

program is implemented. We are identifying and resolving our

problems.


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Maturity Grid Stage IV: WisdomMaturity Grid Stage IV: Wisdom

Top management participates in andunderstands quality.

The quality manager is an officer of thecompany.

Problems are identified in earlydevelopment.

The cost of quality is reported as 6.5%. Itmay be 8%.

The quality improvement program iscontinual and accompanied by follow-uptraining.

Defect prevention is a routine part of our

operation.


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Maturity Grid Stage V: CertaintyMaturity Grid Stage V: Certainty

Quality is an essential part of theorganization.

A quality manager serves on the board ofdirectors.

Problems are prevented.The cost of quality is reported as 2.5%,

which is what it really is.

Quality improvement is normal and

continual. We know why we do not have problems

with quality.


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Fourteen Steps to Quality ImprovementFourteen Steps to Quality Improvement

1. Management commitment with anemphasis on defect prevention andvisibility

2. Quality improvement teams composed on

members of each department or functionall the necessary tools 3. Quality measurement to monitor the

status and improvement of activities

4. Cost of quality evaluation by thecomptroller for accurate figures.

5. Quality awareness by communicating thecost of quality, encouraging

discussion.


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6. Corrective action to ingrain a habit ofidentifying problems and correctingthem.

7. An ad hoc committee to advocate

zero defects. 8. Supervisor training so that all

managers understand the programs andcan explain it.

9. Zero Defects Day to establish zerodefects as the organizational standard.

10. Goal setting as teams, specific and

measurable.


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11. Removing the causes of defects, asdescribed by individual workers, so thatthe people know their problems areheard and answered.

12. Genuine recognition for achievement. 13. Quality councils of quality

professionals and team chairs forstatus information and ideas.

14. Do it over againrepetition makesthe program perpetual.


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A Real World ExampleA Real World Example

Alberto Wisbeck took the job oftop manager at Siemens worstfactory in Jinan, China.

Production capacity was low andthe cost of raw materials was67% of sales.

If efficiency did not improve, thefactory would be closed.


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What did Wisbeck do?What did Wisbeck do?

Wisbeck focused on improving qualityand meeting customer needs

Following the 14-step quality

improvement program, he encouragedworkers and supervisors to identify theprocesses and procedures that werecausing problems.

Following training, top managersimplemented projects in their own workareas.


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What were the results?What were the results?

By focusing on faulty workprocesses, the managers avoidedreprimanding their workersa

critical cultural requirement. Over 300 projects saved the company

$604,000 annually and the plant

rose to rank as Siemens' #2 plant.


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