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OM5 C15 IM
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
1
OM5 Chapter 15: Quality Management
Discussion Questions
1. Select two of Deming’s 14 Points and discuss the importance of them to operations
managers (as well as all managers) in today’s business environment.
Point 8: Drive Out Fear. Fear is manifested in many ways: fear of reprisal, fear of
failure, fear of the unknown, fear of relinquishing control, and fear of change. No
system can work without the mutual respect of managers and workers. Workers are
often afraid to report problems because they might not meet their quotas, their
Point 3: Understand Inspection Routine inspection acknowledges that defects are
present, but does not add value to the product. Rather, it is rarely accurate, and
encourages the production of defective products by letting someone else catch and fix
the problem. The rework and disposition of defective material decreases productivity
Point 4: Stop Making Decisions Purely on the Basis of Cost Purchasing departments
have long been driven by cost minimization and competition among suppliers without
regard for quality. Deming recognized that the direct costs associated with poor
OM5 C15 IM
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
2
its impact on the system. Deming also urged businesses to establish long-term
relationships with fewer suppliers, leading to loyalty and opportunities for mutual
improvement. Management previously justified multiple suppliers for reasons such as
providing protection against strikes or natural disasters, while ignoring “hidden” costs
such as increased travel to visit suppliers, loss of volume discounts, increased setup
Point 12: Remove Barriers to Pride in Workmanship People on the factory floor and
even in management were often treated as, in Deming’s words, “a commodity.”
Factory workers are given monotonous tasks, provided with inferior machines, tools,
or materials, told to run defective items to meet sales pressures, and report to
supervisors who know little about the job. How can these individuals take pride in
2. How do you think that quality management concepts can support sustainability
efforts? Find some sources or examples to support your beliefs.
All quality management principles can support sustainability. For example, if we think in
OM5 C15 IM
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
3
The International Organization for Standardization has developed a voluntary social
responsibility standard, ISO 26000:2010 – Guidance on social responsibility. [ISO
26000:2010 Abstract, www.iso.org] The standard provides guidance on concepts, terms and
CSR has been prominent in the Baldrige Criteria since its inception. [Note: A review of
management theories and their relationships with CSR and the Baldrige Criteria can be found
in Jessica Foote, Nolan Gaffney, and James R. Evans, “Corporate Social Responsibility:
Implications for Performance Excellence,” Total Quality Management & Business
3. What types of defects or errors might the following organizations measure and
improve as part of a quality or Six Sigma initiative?
a. a department store such as Wal-Mart or Macy’s
b. Walt Disney World or a regional amusement park such as Six Flags
Customer complaints by category (ride type, restrooms, food service, tour guides,
c. your college or university
OM5 C15 IM
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
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Customer complaints by category (advising, job placement, student health
4. Explain how each of the 7 QC Tools would be used in the five phases of the Six
Sigma DMAIC problem solving approach. For example, in which phase(s) (Define,
Measure, Analyze, Improve, or Control) would you expect to use flowcharts, check
sheets, and so on?
Define: Flowcharts for defining a process; Pareto analysis for identifying significant
problems
Improve: Scatter diagrams to verify whether improvements will impact the problem
5. Which of the Seven QC Tools would be most useful in addressing each of the
following situations? Explain your reasoning.
a. A copy machine suffers frequent paper jams and users are often confused as to how
to fix the problem.
Cause and effect diagram to help diagnose the source of the paper jams. (Comment:
The focus of this question is to trigger a class discussion of when and where to use
b. The publication team for an engineering department wants to improve the
accuracy of its user documentation but is unsure of why documents are not error-free.
Flowcharts to understand the process of creating documents; check sheets and cause
c. A bank needs to determine how many teller positions, drive-through stations, and
ATM machines it needs for a new branch bank in a certain busy location. Its
OM5 C15 IM
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
5
d. A contracting agency wants to investigate why they had so many changes in their
contracts. They believe that the number of changes may be related to the dollar value
of the original contract or the days between the request for proposal and the contract
award.
e. A travel agency is interested in gaining a better understanding of how call volume
varies by time of year in order to adjust staffing schedules.
Problems and Activities
Note: an asterisk denotes problems for which an Excel spreadsheet template on the
CourseMate Web site may be used.
1. Find the websites for the W. Edwards Deming Institute, the Juran Institute, and
Philip Crosby Associates. What services do they offer? How do these organizations
maintain the philosophies and legacies of these quality leaders?
The websites are: www.deming.org; www.juran.com; and www.philipcrosby.com.
The Deming System of Profound Knowledge
The following is an excerpt from Chapter 4 of The New Economics, second edition
by W. Edwards Deming:
The prevailing style of management must undergo transformation. A system can not
understand itself. The transformation requires a view from outside. The aim of this
The first step is transformation of the individual. This transformation is
OM5 C15 IM
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
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Once the individual understands the system of profound knowledge, he will apply its
Set an example
The layout of profound knowledge appears here in four parts, all related to each
other:
One need not be eminent in any part nor in all four parts in order to understand it and
to apply it. The 14 points for management (Out of the Crisis, Ch. 2) in industry,
2. Identify an organization that has achieved ISO 9000 certification and write a short
paper (1 page maximum) that summarizes the benefits and results that the
organization has achieved using ISO 9000. See if you can find a service
organization rather than a traditional manufacturing company.
One company (http://www.specialtiesgraphics.com/page.php?id=98), Specialties
Graphic Finishers LTD, Toronto, Ontario states the following in its ISO introduction.
WHAT IS ISO 9000?
The ISO 9000 philosophy can be summarized in four steps:
1. say what you do,
OM5 C15 IM
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
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ISO 9000 is a rigorous, thorough system of quality assurance standards for both
manufacturing and service organizations. These standards were first widely adopted
by businesses in the European Economic Community and are now being accepted
and implemented by many North American companies. Intended to help businesses
ISO 9000 BENEFITS
Companies that adopt ISO 9000 standards offer their customers a reliable, widely
As companies clearly document their operating procedures and methodically audit
them, the likelihood of employee ambiguity and misunderstanding dramatically
As more companies enter international markets, certification, or lack thereof, will
become an issue. Even if a printer doesn't have any foreign clients, its customers
Also, certification provides a competitive advantage when seeking new business and
A Different Vantage Point
ISO 9000, however, has its critics because it focuses on processes and does not
guarantee the quality of the finished product. Detractors have suggested that quality
OM5 C15 IM
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
8
WHY DID SPECIALTIES GET ISO 9000 CERTIFIED?
As a post press finishing company, Specialties is at the end of the production chain.
The company must respond to the quality expectations, not only of its customers, but
also to its customers' customers. To maintain competitive selling proposition,
Specialties felt it must meet ongoing market demands for shorter production cycles,
seamless client vendor relationships, world-class service, and stringent quality
CUSTOMER BENEFITS
ISO 9000 standards have lead to operational consistency and numerous customer
benefits. In the graphic arts industry, consistency is a major component of quality.
THE FINAL WORD
No matter how talented a company's workforce is, without standardized procedures
and continuous improvement, even the best people cannot deliver consistently
3. Identify an organization that uses the Six Sigma DMAIC improvement approach.
Describe (maximum of two pages) some of the ways that this organization has
applied DMAIC and the results they have achieved.
