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Chapter 09 - Management of Quality
9-20
12.
Dimension
Pharmacy Filling a Prescription (Service)
Convenience
Location of the pharmacy and the hours of operation
Reliability
Is the prescription filled correctly?
Responsiveness
Willingness to answer questions about the medication
Time
How long did you have to wait?
Assurance
Knowledge of the pharmacist when answering your questions
Courtesy
Friendliness of the pharmacist and the cashier
Tangibles
Appearance of the pharmacy and the staff
Consistency
Pharmacist delivers same quality during each customer visit
Expectations
Pharmacy meet or exceeds customer expectations
Case: Chick-N-Gravy Dinner Line
This case provides the opportunity for students to acquire some insight into analyzing quality
problems. You may prefer to give them some initial guidance, or you may want to let them grapple
with it on their own.
On their own, they may attempt to set up control charts. However, the essence of the case is to
examine the data and draw conclusions about where problems may be.
Data can be organized in a number of ways. One useful way is the following:
Underfilled
Missing
Label
Spilled/Mixed
Unacceptable
Taste
Improper Seal
#1
#2
#1
#2
#1
#2
#1
#2
#1
#2
Morning
0
1
1
11
0
11
2
2
4
14
7
21
0
5
5
Afternoon
3
1
4
0
6
6
4
6
10
0
1
1
1
5
6
3
2
5
11
6
17
6
8
14
14
8
22
1
10
11
most frequent problem. The next most frequent was missing label with 17 occurrences, and then
spill/mixed with 14 occurrences.
Looking more closely at these three categories, we can see that 14 of the 22 unacceptable tastes for
Line #1 occurred in the morning, and 7 of 8 for Line #2 occurred in the morning also. Line #1
exhibited a similar morning problem for missing labels: all 11 occurrences were in the morning. Line
afternoon problems for Line #2 for missing labels. Spill/mixed has afternoon problems on both lines,
and there are seal problems on Line #2 throughout the day.
Chapter 09 - Management of Quality
Case: Tip Top Markets
Based on the analysis of the check sheet given on the following page, the number of complaints
associated with out-of-stock increased over time. On the other hand, the number of complaints
associated with quality of products decreased over time. The number of complaints associated with
checkout line/pricing problems varied over time until July 27, which exhibited a significant decrease.
Analyzing the Pareto diagram, we see that out-of-stock had the most complaints, followed by checkout
line/pricing problems complaints, store/parking lot conditions complaints, quality of products
complaints, and other complaints.
The runs charts show the following:
1. A general increase over time and an increase in the number of out-of-stock complaints for the
Weeks of 7/20 and 7/27.
2. Decreases in the number of checkout line/pricing complaints for the Weeks of 7/20 and 7/27.
3. A decrease in the number of store/parking lot conditions complaints for the Week of 7/20 and
an increase in the Week of 7/27 to the highest level over the time of the study.
4. A general decrease over time and a decrease in the number of quality of products complaints
for the Weeks of 7/20 and 7/27.
5. A decrease in the number of customer unable to find product complaints for the Weeks of 7/20
and 7/27.
6. An increase in the number of other complaints for the Weeks of 7/20 and 7/27.
1. Forecasting
2. Supplier Deliveries
3. Spoilage
4. Inventory Inaccuracies
Further analysis of these four areas is necessary before taking any corrective action.
In addition to the main goal of reducing the out-of-stock problem, Tip Top needs to investigate the
store/parking lot conditions and the checkout line/pricing problems. However, these problems do not
occur nearly as often, and the consequences of these problems are not as serious as the out-of-stock
Chapter 09 - Management of Quality
9-24
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
0
2
4
6
8
10
12
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27
Checkout Line/Pricing Complaints
Complaints
0
1
2
3
4
5
6
7
8
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27
Store/Parking Lot Conditions
Complaints
Complaints
9-25
0
1
2
3
4
5
6
7
8
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27
Quality of Products Complaints
Complaints
0
0.5
1
1.5
2
2.5
3
3.5
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27
Customer Unable to Find Product
Complaints
Complaints
Chapter 09 - Management of Quality
9-26
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Cause-and-Effect Diagram for Out-of-Stock Complaints
0
0.5
1
1.5
2
2.5
6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27
Other Complaints
Complaints
Theft
Inventory Inaccuracies
Human error
Out of Stock)
Supplier Deliveries
Weather
Supplier capacity
Advertisements
coupons
Demand
variability
Weather
Cause-and-Effect Diagram
Backorders
Forecasting
Lateness
Business
cycle
Poor quality
products
Poor
refrigeration
Spoilage
Contamination
Case: Tip Top Markets
Chapter 09 - Management of Quality
9-27
Enrichment Module: TQM Exercise
Suppose that you have just been hired by the Bloor Company as a consultant to assist it in its quality
improvement efforts.
Bloor is a supplier to a wide range of companies, including several in the auto industry. The
company’s desire to institute a total quality approach has come from a number of directions. Senior
management has become aware of successes in other companies’ quality efforts, including those of
several competitors. Apart from that, the company is also being pressured by many of its customers to
adopt a more formal approach to quality. For these and other reasons, Bloor senior management has
decided to develop a TQM approach.
Towards that end, in a series of brainstorming sessions, senior management has put together a list of
possible strategies and tactics that would form the foundation of the company’s effort to achieve a
TQM operation. Your immediate task is to review the list, and to identify those items that are
reflective of a TQM approach.
The list of questions is below. Indicate by placing either a “Yes” or a “No” beside each question
whether or not you feel that the item reflects a TQM approach.
TQM (?) Strategy or Tactic
[YES or NO]
Agree?
_____ 1. Emphasize a company-wide program for finding defectives before they are sent out.
_____ 2. Use a systematic process analysis effort to improve processes throughout the company.
_____ 3. Strive to maintain high-quality ethical standards by not engaging in practices such as
obtaining information about competitors’ quality efforts.
_____ 4. Have senior management carefully design the TQM process, but then turn it over to the
employees with the authority they need to operate it.
_____ 5. Set up a method for achieving customer satisfaction of both internal and external
customers.
_____ 6. Put every member of the organization through the same quality training program to prepare
them to operate in a TQM environment.
_____ 7. Benchmark other companies’ operations, even those that are not in the same industry.
_____ 8. Set a reasonable time limit for the completion of the TQM effort so that it does not become
a never-ending program.
_____ 9. Ensure that all decisions are approved by senior management to keep them actively
involved.
_____ 10. Train employees to work effectively in teams, and give the teams some degree of
autonomy.
Chapter 09 - Management of Quality
Answers TQM—Strategy or Tactic
1. No. Prevention of defects should be the emphasis—not detection of errors.
2. Yes.
