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Quality Management
Operations
Operations Management
Management -- 66thth Edition
Edition
Beni Asllani
Copyright 2009 John Wiley & Sons, Inc. University of Tennessee at Chattanooga
Lecture Outline
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Producers
Producers Perspective
Perspective Consumers
Consumers Perspective
Perspective
Quality
Quality of
of Conformance
Conformance Quality
Quality of
of Design
Design
Production
Production Conformance to Quality characteristics Marketing
Marketing
specifications Price
Cost
Fitness
Fitness for
for
Figure 14.1 Consumer
Consumer UseUse
company functions
Copyright 2009 John Wiley & Sons, Inc. 2-34
Quality in Services
3.4
3.4 DPMO
DPMO
67,000
67,000 DPMO
DPMO
cost
cost == 25%
25% of
of
sales
sales
Copyright 2009 John Wiley & Sons, Inc. 2-38
Six Sigma:
Black Belts and
Green Belts
Black Belt
project leader
Master Black Belt
a teacher and mentor
for Black Belts
Green Belts
project team
members
Cost of quality
difference between price of
nonconformance and conformance
cost of doing things wrong
20 to 35% of revenues
cost of doing things right
3 to 4% of revenues
or
or
Y=(I)(%G)+(I)(1-%G)(%R)
Y=(I)(%G)+(I)(1-%G)(%R)
Copyright 2009 John Wiley & Sons, Inc. 2-48
Computing Product
Cost per Unit
( K d )( I ) ( K r )( R)
Product Cost
Y
where:
Kd = direct manufacturing cost per unit
I = input
Kr = rework cost per unit
R = reworked units
Y = yield
Y = (I)(%g1)(%g2) (%gn)
where:
I = input of items to the production process that will
result in finished products
gi = good-quality, work-in-process products at stage i
QPR
productivity index that includes productivity and
quality costs
(good-quality units)
QPR = (100)
(input) (processing cost) + (reworked units) (rework cost)