Operations ManagementUTCCSupply Chain Management 2. ปัจจัยภายใน - ความได้เปรียบด้านค่าแรงงานราคา ถูกกำลังหมดลง - การขาดแคลน ทางด้านเทคโนโลยี - ขาดความสามารถทางด้านการ วางแผนระยะยาว Ability to competitiveness The improvement of quality in products and improvement of quality in service – these are national priorities as never before.
Operations ManagementUTCC Page 12 Modern Importance of Quality “The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.” - William Cooper Procter
Operations ManagementUTCC Quality Management What does the term quality mean? (standard VS. quality) Quality is the ability of a product or service to consistently meet or exceed customer expectations.
Operations ManagementUTCC Leaders in the Quality Revolution Walter Shewhart –“Father of statistical quality control” W. Edwards Deming Joseph M. Juran Armand Feignbaum Philip B. Crosby Kaoru Ishikawa Genichi Taguchi
Operations ManagementUTCC Deming Methods to making TQM systems Continuous Improvement Employee empowerment Benchmarking Just in Time (JIT) Knowledge of TQM tools (14 points)
Operations ManagementUTCC Page 16 Deming’s 14 Points (Abridged) (1 of 2) 1. Create and publish a company mission statement and commit to it. 2. Learn the new philosophy. 3. Understand the purpose of inspection. 4. End business practices driven by price alone. 5. Constantly improve system of production and service. 6. Institute training. 7. Teach and institute leadership. 8. Drive out fear and create trust.
Operations ManagementUTCC Page 17 Deming’s 14 Points (2 of 2) 9. Optimize team and individual efforts. 10. Eliminate exhortations for work force. 11. Eliminate numerical quotas and Focus on improvement. 12. Remove barriers that rob people of pride of workmanship. 13. Encourage education and self-improvement. 14. Take action to accomplish the transformation.
Operations ManagementUTCC Page 18 Deming Chain Reaction Improve quality Costs decrease Productivity improves Increase market share with better quality and lower prices Stay in business Provide jobs and more jobs
Operations ManagementUTCC Phillip B. Crosby Quality is free... : “Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”
Operations ManagementUTCC Page 21 Philip B. Crosby Absolutes of Quality Management: Quality means conformance to requirements Problems are functional in nature There is no optimum level of defects Cost of quality is the only useful measurement Zero defects is the only performance standard
Operations ManagementUTCC A.V. Feigenbaum Three Steps to Quality –Quality Leadership, with a strong focus on planning –Modern Quality Technology, involving the entire work force –Organizational Commitment, supported by continuous training and motivation
Operations ManagementUTCC Kaoru Ishikawa Instrumental in developing Japanese quality strategy Influenced participative approaches involving all workers Advocated the use of simple visual tools and statistical techniques
Operations ManagementUTCC Genichi Taguchi (design) Pioneered a new perspective on quality based on the economic value of being on target and reducing variation and dispelling the traditional view of conformance to specifications: No LossLoss Tolerance
Operations ManagementUTCC Service Quality Tangibles Convenience Reliability Responsiveness Time Assurance Courtesy
Operations ManagementUTCC Page 26 Malcolm Baldrige National Quality Award Help improve quality in U.S. companies Recognize achievements of excellent firms and provide examples to others Establish criteria for evaluating quality efforts Provide guidance for other U.S. companies Malcolm Baldrige, former U.S. Secretary of Commerce
Operations ManagementUTCC Page 27 Criteria for Performance Excellence Malcolm Baldrige National Quality Award Leadership (125 points) Strategic Planning (85 points) Customer and Market Focus (85 points) Information and Analysis (85 points) Human Resource Focus (85 points) Process Management (85 points) Business Results (450 points) Baldrige Award trophy
Operations ManagementUTCC The Baldrige Framework – A Systems Perspective 4 Information and Analysis 5 Human Resource Focus 3 Customer & Market Focus 7 Business Results 7 Business Results 2 Strategic Planning 1 Leadership 6 Process Management Organizational Profile: Environment, Relationships, and Challenges
Operations ManagementUTCC Receive Applications Judges Select for Consensus Review? Judges Select for Site Visit Review? Stage 1 Independent Review Stage 2 Consensus Review Stage 3 Site Visit Review Stage 4 Judges Recommend Award Recipients to NIST Director/DOC Feedback report to applicant Feedback report to applicant Feedback report to applicant No Baldrige Award Evaluation Process
Operations ManagementUTCC Quality Certification ISO 9001:2000 –Set of international standards on quality management and quality assurance, critical to international business ISO –A set of international standards for assessing a company’s environmental performance
Operations ManagementUTCC ISO 9001:2000 คืออะไร ISO 9001:2000 เป็นอนุกรม มาตรฐานสำหรับระบบบริหารคุณภาพ ซึ่งเป็นข้อกำหนดขั้นต่ำสุดของระบบ คุณภาพซึ่งนำไปปฏิบัติเพื่อให้เกิด ความมั่นใจและความพึงพอใจต่อ ลูกค้าว่าองค์กรนั้น ๆ สามารถผลิต สินค้าหรือให้บริการที่มีคุณภาพบน พื้นฐานของการบริหารคุณภาพที่ ยอมรับกันทั่วโลก
Operations ManagementUTCC Page 32 Objectives of ISO Standards (1 of 2) Achieve, maintain, and continuously improve product quality Improve quality of operations to continually meet customers’ and stakeholders’ needs Provide confidence to internal management and other employees that quality requirements are being fulfilled
Operations ManagementUTCC Page 33 Objectives of ISO Standards (2 of 2) Provide confidence to customers and other stakeholders that quality requirements are being achieved Provide confidence that quality system requirements are fulfilled
Production Planning and ControlWatcharavee C. ISO 9000 Quality Standard ISO 9000 : 2000 ISO 9001 : 2000 ISO 9004 : 2000 ISO’s Eight Quality Management Principles 1.Customer focus 2.Leadership 3.Involvement of people 4.Process approach 5.System approach to management 6.Continual improvement 7.Factual approach to decision making 8.Mutually beneficial supplier relationships
Operations ManagementUTCC Page 37 ISO 9001:2000 Quality system standards adopted by International Organization for Standardization in 1987; revised in 1994 and 2000 Technical specifications and criteria to be used as rules, guidelines, or definitions of characteristics to ensure that materials, products, processes, and services are fit for their purpose.
Operations ManagementUTCC ISO A set of international standards for assessing a company’s environmental performance Standards in three major areas –Management systems –Operations –Environmental systems ISO 14000
Operations ManagementUTCC Management systems –Systems development and integration of environmental responsibilities into business planning Operations –Consumption of natural resources and energy Environmental systems –Measuring, assessing and managing emissions, effluents, and other waste ISO 14000
Production Planning and ControlWatcharavee C. TQM TQM
Operations ManagementUTCC Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. TQM
Production Planning and ControlWatcharavee C. TQM TQM Element TQM Focus on the Customer Workforce Involvement
Operations ManagementUTCC Continuous Improvement Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs. Kaizen: Japanese word for continuous improvement.
Operations ManagementUTCC Sustaining the Quality Organization View quality as a journey (“Race without a finish line”) Recognize that success takes time Create a “learning organization” –Planning –Execution of plans –Assessment of progress –Revision of plans based on assessment findings Use Baldrige assessment and feedback Share internal best practices (internal benchmarking)
Operations ManagementUTCC Problem Solving Process 1.Redefining and analyzing the problem 2.Generating ideas 3.Evaluating and selecting ideas 4.Implementing ideas
Operations ManagementUTCC Basic Steps in Problem Solving 1.Define the problem and establish an improvement goal 2.Collect data 3.Analyze the problem 4.Generate potential solutions 5.Choose a solution 6.Implement the solution 7.Monitor the solution to see if it accomplishes the goal
Operations ManagementUTCC Process Improvement and Tools Process improvement - a systematic approach to improving a process –Process mapping –Analyze the process –Redesign the process Tools –There are a number of tools that can be used for problem solving and process improvement –Tools aid in data collection and interpretation, and provide the basis for decision making
Operations ManagementUTCC The Process Improvement Cycle Implement the Improved process Select a process Study/document Seek ways to Improve it Design an Improved process Evaluate Document
Production Planning and ControlWatcharavee C. Quality Tools Flowchart ; A diagram of the steps in process Check sheet ; A tool for organizing and collecting data; a tall of problems or other events by category Day Defect1234 A B C
Production Planning and ControlWatcharavee C. Quality Tools Histogram ; A chart that shows an empirical frequency distribution ABC D E Pareto ; A diagram that arranges categories from highest to lowest frequency of occurrence Pareto of 1QF04 SMT Defective % 87% 90% 93% 95% 97% 98% 99% 100% % % % % % 77% 66% 56% 32% 44% OfflandSolder bridge OtherRotateMissing with glue Poor solder Missing no glue Missing with solder Over glue FloatingUp side down No solder Peel offSliceMissing no solder CrackDouble parts Solder ball Stand ppm 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Production Planning and ControlWatcharavee C. Quality Tools Scatter diagram ; A graph that shows the degree and direction of relationship between two variables Control chart ; A statistical chart of time-ordered values of a sample statistic Variable B Variable A UCL LCL
Production Planning and ControlWatcharavee C. Quality Tools Cause-and-effect ; A diagram used to organize a search for the cause of a problem ;also known as a fishbone diagram ManMachine Method Material Defect Not follow W/I No have skill Vale is leakage Timing belt is worn out Thickness is out of spec Material is lowest grade No have spec in W/I Not clear in W/I
Operations ManagementUTCC Identify a critical process that needs improving Identify an organization that excels in this process Contact that organization Analyze the data Improve the critical process Benchmarking Process
Operations ManagementUTCC Application TQM
Operations ManagementUTCC The JATCO’s TQM JATCO (The Japan Automatic Transmission Company) Ford 50%, Nissan 25% Mazda 25% HSQ Campaign Hito = Human resources Seiketsu = Clean and faithful Quality TQM - Policy Management - Company –Wide Quality Control (QCC) Supply Chain Management
Operations ManagementUTCC Cross Functional Management Enhanced Standard of Work - handbook of procedure standard design - Developed Computer aided Design - Developed Computer aided Manufacturing - Built the new product Supply Chain Management
Operations ManagementUTCC The YHP’s Tale Critical of YHP Customer’s satisfaction - weakness in quality of product - weakness in processes - no information of customer satisfaction - no use quality management in YHP Key success -defect 0.4 % (4000 ppm) compare with HP 1% - used QCC only 100 ppm until 3 ppm Supply Chain Management