Chapter 2: Managing Quality
Cause and effect diagrams
(Ishikawa or fishbone diagrams): Illustration of factors that may influence or cause a given outcome
Taco Bell's example of TQM
(late 1980s) Thought sales would increase with frequent menu additions Instead found FACT: Fast service and Accurate orders with food serves in a Clean restaurant and at the right Temperature
Tools Used in Process Improvement: Project Planning (define and give 2 examples)
Project Planning: Once the process has been identified and analyzed, planning and implementation of a new change occurs. Examples 1) Plan-do-check-act (PDCA) cycle 2) Gantt Charts
Scatter Diagrams
Provide a visual way to examine possible relationships between 2 variables. Data from 2 variables plotted on X and Y axis
Quality Function Deployment (QFD)
Quality design method to help organizations transform the voice of the customer into a product or service Developed by Dr. Yoji Akao (1988)
Lean
Using less human effort, less space, less capital, and less time to make products exactly as the customer wants with fewer defects than occur in mass production Originated in automobile industry (1990)
How does the American Society for Quality define quality?
-"The characteristics of a product or service that bear on its ability to satisfy stated or implied needs" -"Product or service that is free of defects" (ex: free of contamination)
Kaizen (emphasis on ___ vs ____; core elements?)
-A Japanese philosophy emphasizing incremental and continuous improvement in every aspect of daily life -"Good change" in Japanese Masaaki Imai (1986), Japanese consultant -Emphasis on: Continuous, small, incremental improvements vs large changes -Core elements (basis for 5S program) 1) Teamwork 2) Discipline 3) Improved morale 4) Quality circles 5) Suggestions for improvement *On RD Exam* Important when counseling patients as well: more likely to make small changes
Six Sigma
-A disciplined, data-driven approach for improving quality by removing defects and their causes -Developed by Bill Smith (engineer at Motorola Corp) for measuring quality -Achieving Six Sigma means that a process can't produce >3.4 defects/million opportunities -Sigma: Used to define standard deviation -Six Sigma: 6 SD from the mean -Very little variability -Average in US: Three Sigma
Continuous Quality Improvement (CQI)
-A focused management philosophy for providing leadership, structure, training, and an environment in which to improve continuously all organizational processes. -No endpoint in quality efforts -Continually improving quality of the operations and customer experience -Focuses on the process, instead of blaming individuals
QUALITY STANDARDS: ISO 9001 STANDARDS
-A group of 5 individual but related international standards on quality management -Developed by International Organization for Standards (ISO) -Worldwide, nongovernmental federation with representatives from national standard groups in more than 160 countries -Technical subcommittees develop draft standards that need consensus of the ISO to be implemented
Total Quality Management (TQM)
-A management philosophy directed at improving customer satisfaction while promoting positive change and an effective cultural environment for continuous improvement of all organizational aspects -helps the organization focus on customers by identifying and satisfying their needs and expectations.
Quality Assurance (QA)
-A procedure that defines and ensures maintenance within prescribed tolerances for a product or service -Began in the 1970's -Output oriented -Define measurable quality standards and put controls in place to ensure standards are met -Measurement of performance compares actual results to standards -Reactive process -It's predicted on follow-up and inspection and finding error after the fact
Pareto Analysis
-Analysis that focuses on the most important causes to solve problems -80/20 rule: 80% of given outcome typically results from 20% of an input -Example: 80% of sales come from 20% of the customers Focus on these few vital causes
Customer (and types of customers)
-Anyone affected by a product or service -External customers: Don't belong to the organization i.e. Buy pizza from a pizza joint -Internal customer: Belong to organization i.e. Employees and suppliers
Tools Used in Process Improvement: Cause Analysis (define and give 3 tools used)
-Cause Analysis: Determining why a certain outcome is occurring -Tools include: 1) Cause and effect diagrams 2) Pareto analysis 3) Root causes analysis
Value Stream Map
-Complex flowchart documenting processes and flows to help a manager determine which processes add value and which do not. -Used in Lean project
Theory of Constraints
-Concentration on exploiting and elevating constraints that slow production or service. -Goldratt (1984) in The Goal -Constraint: Anything in an organization that keeps the organization from reaching its goals -Physical i.e. individual worker, capacity of a machine -Non-physical i.e. Company policies, demand for a product
TQM in the foodservice system
-Controls play a role in the entire food system -Ex: in a farm: GAP (Good Agricultural Practices
What is the DMAIC approach for quality improvement when using Six Sigma?
-Define project goals -Measure current performance of the process -Analyze and determine causes and defects -Improve the process by eliminating defects -Control and standardize future process performance
Quality Standards
-Developed by professional organizations and industry groups -Some guidelines for operations -Some mandated standards to be met as part of accreditation
Flowcharts
-Graphical representation of steps in a process -Stopwatch timing and videotaping of actual activities -American National Standards Institute: developed symbols
Failure Mode and Effects Analysis
-Involves identification of potential failures that might occur in the process -Evaluated for: Severity of consequences Probability of occurrence Probability of detection before it happens -Allows for planning to focus/minimize the impact before it happens i.e. HACCP
QUALITY STANDARDS:The Joint Commission (JC)
-Key source of standards for improving the quality and safety of patient care. -Independent, not-for-profit organization that sets standards for and accredits healthcare organizations -JC mission: Continuously improve the safety and quality of care provided to the public -~80% hospitals accredited by JC -Comes in every 5 years to accredit
What does TQM require?
-Long-term commitment from organization -Complete understanding of organization -Upper-management commitment and participation -Free and open lines of communication among all departments
QUALITY STANDARDS:Professional Practices in College and University Foodservice
-National Association of College & University Food Services (NACUFS) developed the NACUFS Professional Practices Manual as a tool for professional development, self-assessment, and continuous quality improvement -Contains 100+ areas including: 1) Sustainability 2) Safety and security 3) Professionalism 4) Marketing 5) Service management
What does the ASQ suggest about quality?
-Quality isn't a program; it's an approach to business -Quality is defined by the customer through his/her satisfaction -Quality is aimed at performance excellence; anything less is an opportunity for improvement -Quality increases customer satisfaction, reduces cycle times and costs, and eliminates errors and reworks
Reengineering
-Radical redesign of business processes for dramatic improvement -Focus = improving the process that are core to a business -Process defines as "a complete end-to-end set of activities that together create value for a customer." (Foodservice model: Inputs → Outputs)
EXTERNAL RECOGNITION OF QUALITY: Malcolm Baldridge National Quality Award (1987)
-Recognized companies for their achievements in quality and performance -Promotes sharing info on successful performance strategies -Up to 3 awards given in 5 categories: Manufacturing Service Small business Education Health Care
Reengineering example (taco bell)
-Reengineered process for preparing food -Before 30% floor space for customer seating → 70% -↓ labor needs by 15 hrs/day -↑ capacity of kitchen from $400/hr to $1500/hr -Grew from $500 million company to $3 billion in 10 years
QFD characteristics
-Seeks out spoken and unspoken customer needs -Uncovers "positive" qualities that wow the customer -Translates these into designs, characteristics, and deliverable actions -Builds and delivers a quality product or service by focusing the various business functions towards achieving a common goal: customer satisfaction
QUALITY STANDARDS: Keys to Excellence
-The School Nutrition Association developed the Keys to Excellence to provide quality standards for Child Nutrition Programs -4 key quality areas: 1) Administration 2) Marketing and communications 3) Nutrition, nutrition education, and physical activity 4) Operations Schools demonstrating superior performance can earn designation as a District Excellence in Child Nutrition
Tools Used in Process Improvement: Benchmarking
-comparison against best performance in the field -Help identify areas on which to focus improvement efforts -The Association for Healthcare Foodservice offers members: BENCHMARKING EXPRESS, financial and operational indicator comparison tool -National Association of College & University Food Services, conducts an Annual Operating Performance Benchmark Survey
Empowerment of employees
-degree which management allows employees to act independently within their job description. -Make decisions in area they work in
EXTERNAL RECOGNITION OF QUALITY: The American Society for Quality (ASQ)
-offers multiple options for certification in quality management -i.e. Manager of Quality/Organizational Excellence Certification -Many states present quality awards annually
14-Point System To Increase Quality (Deming, 1986)
1) Create consistency of purpose toward improvement of quality and services. 2) Adopt the new philosophy of quality. 3) Cease dependence on inspection to achieve quality. 4) End the practice of choosing suppliers based solely on price. 5) Improve constantly and forever the production and service systems. 6) Institute excessive training on the job. 7) Shift focus from production numbers to quality. 8) Drive out fear. 9) Break down barriers among departments. 10) Eliminate slogans and targets for the workplace. 11) Eliminate numeric quotas for the workplace. 12) Remove barriers that rob employees of pride or workmanship and eliminate annual rating or merit systems. 13) Institute a vigorous program of education and self-improvement for everyone. 14) Make sure everyone in the company is put to work to accomplish the preceding 13 points.
ISO 9001:2008 = generic management standards divided into 5 broad sections:
1) General Requirements for the Quality Management System 2) Management Responsibilities for Quality Policies and Customer Focus and Satisfaction 3) Resource Management 4) Product Realization 5) Measurement, Analysis, and Continual Improvement
5 Steps in Lean
1) Identify which features create value for internal or external customers 2) Document the value stream -Sequence of activity that create value 3) Improve flow -Eliminate things that interrupt flow 4) Let the customer pull the product or service through the process -Provide product/service when customer wants it 5) Perfect the process
What are the 6 components of TQM?
1) Intense focus on customer 2) Concern for continual improvement 3) Focus on process 4) Improvement in quality of everything the company does 5) Accurate measurement 6) Empowerment of employees
Approaches to Quality: Heskett, Jones, Loveman, et al (1994)
1) Introduced concept of serving profit chain and demonstrated how internal service quality increases: -Employee satisfaction -Employee Loyalty -Productivity 2) This resulted in: -Increased customer satisfaction -Increased customer loyalty -Increased profits
List the Management Approaches to Improving Performance
1) Quality Assurance 2) Total Quality Management 3) Continuous Quality Improvement 4) Six Sigma 5) Kaizen 6) Reengineering 7) Lean 8) Theory of Constraints
Kaizen 5S Program
1) Sort (Seiri): Remove unnecessary items from workplace to create tidy work area 2) Set in Order (Seiton): Create order by having a specific location for everything 3) Shine (Seiso): Clean and inspect work area 4) Standardize (Seiketsu): Standardize best practices in the workplace 5) Sustain (Shitsuke): Have discipline to maintain improved practices
Root Cause Analysis
Analysis focusing on identification of the root cause of a given problem Asking "why" questions
Gantt Charts
Bar charts used to show a project implementation schedule
Histograms
Bar graphs that are used to display graphically the frequent distribution of data
Control Charts
Graphical record of process performance over a period of time i.e. google analytics (how many visits per day)
Approaches to quality: Buzzell and Gale (1987)
Buzzell and Gale (1987): Most important factor for predicting success of a business is the quality of its product and services.
Tools Used in Process Improvement: Data Collection and Analysis (list 4 examples)
Data Collection and Analysis: A variety of tools and techniques used. 4 examples: 1) Check sheets 2) Control charts 3) Histograms 4) Scatter diagrams
The problem: Not enough food on the school serving line Draw a fishbone diagram to identify possible causes of being short of food on the school serving line (the effect)
Environment: Huge increase in students b/c nearby school had to close down Materials: Not enough food ordered from vendor Methods: Portion sizes too large Equipment: Limited number of stoves/ovens, and convenience appliances (food processors, choppers, etc) People: Short staffed Other: Vendor delivered spoiled food
Typical steps of TQM
May be multiple factors leading to a problem May have multiple solutions to solve a problem --> have employees weigh in
Tools Used in Process Improvement: Process Analysis (define and give 3 examples)
Process Analysis: Other tools used to help analyze a process Examples: 1) Flowcharts 2) Failure Mode and Effects Analysis 3) Value Stream Mapping
Elevating the constraint
Taking whatever actions needed to break the constraint
Check Sheets
Tools for collecting data about observation
Ex of Lean
Toyota moved decision making to: -Production employees -Maintained very low inventory -Grew to be large and profitable company They were "lean" because compared to the competition, they used: -Less labor -Less manufacturing space -Less equipment
Approaches to Quality: US General Accounting Office Study (1994)
US General Accounting Office Study (1994): Companies using TQM practices vs those who did not had: -Higher profitability -Greater customer satisfaction -Better employee relations -Increased market share
The problem: The coffee is too cold Using the root cause analysis, determine what is the problem (you will need to make up a scenario using a series of "why" questions)
Why is the coffee cold? It was not served right away. Why was it not served right away? The server had too many tables Why did the server have too many tables? Because we were short staffed Why were we short staffed? Because several employees reduced their hours for various reasons (ex: school) Solution: Hire more people, advertise the position. Hire more year-round employees to ensure proper coverage
Plan-do-check-act (PDCA) cycle
model for coordinating process improvement efforts. Developed by Walter Shewhart (1930s), statistician at Bell Labs