978-1285451374 Chapter 15 Solution Manual Part 1

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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

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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

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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

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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

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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

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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,

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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

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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.