Управление качеством в международных корпорациях. Практикум на английском языке
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Practical training
Questions
1.Why the Russian system of quality assessment lags behind Western?
2.What the Russian system of quality do you know?
3.Which scientific formed the basis of Soviet quality control?
References
1.Andrushchak G., Students evaluating teachers systems: management innovations in Russian universities, Questions in economics, 2014, issue 6, p. 28–32.
2.ArubayiE.Improvementofinstructionandteachereffectiveness: Are student ratings reliable and valid?, Higher education, 2014, vol. 16, p. 267–278.
3.Dmitrieva A. Monitoring of satisfaction with the quality of education. Quality of Higher Education Assurance: European and Belarusian Experience, Minsk, 2013.
4.Kemp B., Kuman G., Student Evaluations: Are We Using them Correctly? // Journal of Education for Business, 2014, issue 65, p. 106–111.
5.Zapesotsky A. A teacher in student’s eyes, Higher education today, 2012, vol.9, p. 28–32.
7. COST OF QUALITY: UK EXPERIENCE
The purpose of this practice – to discuss and fix bases of Cost of quality, its main principles in UK.
This practice will allow creating competences PK-3: possession of skills of the strategic analysis, development and implementation of strategy of the organization aimed at providing competitiveness; and PK-5: ability to analyze interrelations between functional strategy of the companies for the purpose of preparation of the balanced administrative decisions and also to acquire the following knowledge and abilities:
–knowledge of Cost of quality bases;
–understandingofanorderofitsimplementationinthecompanies’ activity;
–ability to define, what elements Cost of quality consist in and how to use them to develop the company and economy.
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RelevanceofpracticeconsistsinnecessitytoknowUKexperience of Cost of quality.
Theoretical part
TherearemanydifferentdefinitionsoftheCostofQualityavailable, and many are lacking in scope or precision. Often these definitions have not kept up with the times and don’t account for software costs, supply chain interactions, or more. To remedy these shortcomings, we thought building on one of our favorite definitions.
Cost of Quality is a measurement used for assessing the waste or loss from a defined process.
These costs are significant and can be significantly reduced or avoided. Cost of quality measurement can track changes over time for a particular process, or be used as a benchmark for comparison of two or more different processes. Cost of Quality is usually measured in monetary terms, requiring all losses and waste to be converted to their liquidated cost equivalent, for example, staff hours lost or spent are converted to their dollar equivalent by multiplying the hourly rate for the staff by the hours spent .
Cost of quality measurements can be used to identify the optimum for a process, that is, the best possible outcome from all operating modes, combinations and permutations of the current process.
In process improvement efforts, quality costs or cost of quality is a means to quantify the total cost of quality-related efforts and deficiencies.
Prior to its introduction, the general perception was that higher quality requires higher costs, either by buying better materials or machines or by hiring more labor.
Furthermore, while cost accounting had evolved to categorize financial transactions into revenues, expenses, and changes in shareholder equity, it had not attempted to categorize costs relevant to quality, which is especially important given that most people involved in manufacturing never set hands on the product.
Whenitcomestomakingdecisions,mostmanagersspeakmoney. The Cost of Quality theory provides the vocabulary to communicate between the quality professionals and their managers.
The Meaning of «Quality Costs» in UK.
The term quality cost has different meanings to different people. Some equate quality costs with the costs of poor quality due to
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finding and correcting defective work. Others equate the term with the costs to attain good quality. Others use the term to mean the costs of running the quality department. In The term «quality costs» means the cost of poor quality.
Normally, quality-related costs run in the range of 10 to 30 percent of sales or 25 to 40 percent of operating expenses. Some of these costs are visible and some hidden. The cost of quality not only includes factory operation, but the support operations significantly contribute too.
Most companies in UK can avoid quality costs. But these companies do not assign clear responsibility for action to reduce them. Nor do they create a structured approach for doing so.
Categories of Cost of Quality.
1. Internal Failure Costs.
Thecostsofdeficienciesdiscoveredbeforedelivery.Weassociate deficiencies or nonconformities with the failure to meet explicit requirements or implicit needs of external or internal customers.
2. External Failure Costs.
The costs associated with deficiencies found after product is received by the customer. These also include lost opportunities for sales revenue.
3. Appraisal Costs.
The costs incurred to determine the degree of conformance to quality requirements. For example inspection costs is an appraisal cost.
4. Prevention Costs.
The costs incurred to keep failure and appraisal costs to a minimum. For example product design or Poke Yoke costs are prevention costs.
Capturing Quality Cost Tips.
1.Established expense accounts. Examples include inspection department appraisal activities and customer response warranty expenses.
2.Define and analysis the ingredients of established expense accounts: For example, suppose an account called customer returns reports the cost of all goods returned. Some customers returned defective goods. Categorized these as cost of poor quality. Some customers return goods to reduce inventory. These are not cost of poor quality. You must break the customer returns into two separate
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expense accounts. To help distinguish the quality costs returns, someone must study of the return documents and classify all returns.
3.Improve accounting documents: For example, some production department employees conduct product inspection. By securing their names, the associated payroll data, and inspection time you can quantify these cost of quality.
4.Include estimates: Input from knowledgeable personnel is clearly important.
5.Use temporary records. For example, some production workers spend part of their time repairing defective product. Here you can create a temporary record to determine the repair time and thereby the repair cost. This cost can then be projected for the study time period.
6.Utilize work sampling: Take random observations of activities. Within a few sampling you can calculate the percent of time spent in each of a number of predefined quality cost categories. Ask employees to record the observation as prevention, appraisal, failure, or first time work.
7.Improve allocation of total resources: For example, some engineers are part–time engaged in making product failure analyses. The engineering department, however, makes no provision for charging engineering time to multiple accounts. Ask each engineer to make an estimate of time spent on product failure analysis. Do this by keeping a temporary engineering activity log for several representative weeks. Categorized time spent due to a product failure as a failure cost.
Case: Poka-Yoke
Poka-yoke is a Japanese term that means «mistake-proofing». A poka-yoke is any mechanism in a lean manufacturing process that helps an equipment operator avoid (yokeru) mistakes (poka). Its purpose is to eliminate product defects by preventing, correcting, or
drawing attention to human errors as they occur.
The concept was formalised, and the term adopted, by Shigeo Shingo as part of the Toyota Production System.
It was originally described as baka-yoke, but as this means «foolproofing» the name was changed to the milder poka-yoke.
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Usage
More broadly, the term can refer to any behavior-shaping constraint designed into a process to prevent incorrect operation by the user and reduce the cost of identifying a suitable quality. Similarly, a constraint that is part of the product (or service) design is considered Design for Manufacturability.
A simple Poka-Yoke example is demonstrated when a driver of the car equipped with a manual gearbox must press on the clutch pedal (a process step, therefore a poka-yoke) prior to starting an automobile. The interlock serves to prevent unintended movement of the car. Another example of poka-yoke would be the car equipped with an automatic transmission, which has a switch that requires the car to be in «Park» or «Neutral» before the car can be started (some automatic transmissions require the brake pedal to be depressed as well). These serve as behavior-shaping constraints as the action of «car in Park (or Neutral)» or «foot depressing the clutch/brake pedal» must be performed before the car is allowed to start. The requirement of a depressed brake pedal to shift most of the cars with an automatic transmission from «Park» to any other gear is yet another example of a poka-yoke application.
Over time, the driver’s behavior is conformed to the requirements by repetition and habit.
History
The term poka-yoke was applied by Shigeo Shingo in the 1960s to industrial processes designed to prevent human errors.Shingo redesigned a process in which factory workers, while assembling a small switch, would often forget to insert the required spring under one of the switch buttons. In the redesigned process, the worker would perform the task in two steps, first preparing the two required springs and placing them in a placeholder, then inserting the springs from the placeholder into the switch. When a spring remained in the placeholder, the workers knew that they had forgotten to insert it and could correct the mistake effortlessly.
Shingo distinguished between the concepts of inevitable human mistakes and defects in the production. Defects occur when the mistakes are allowed to reach the customer. The aim of poka-yoke is to design the process so that mistakes can be detected and corrected immediately, eliminating defects at the source.
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Implementation in manufacturing
Poka-yoke can be implemented at any step of a manufacturing process where something can go wrong or an error can be made. For example, a jig that holds pieces for processing might be modified to only allow pieces to be held in the correct orientation,or a digital counter might track the number of spot welds on each piece to ensure that the worker executes the correct number of welds.
Shigeo Shingo recognized three types of poka-yoke for detecting and preventing errors in a mass production system:
The contact method identifies product defects by testing the product’s shape, size, color, or other physical attributes.
The fixed-value (or constant number) method alerts the operator if a certain number of movements are not made.
The motion-step (or sequence) method determines whether the prescribed steps of the process have been followed.
Either the operator is alerted when a mistake is about to be made, or the poka-yoke device actually prevents the mistake from being made. In Shingo’s lexicon, the former implementation would be called a warning poka-yoke, while the latter would be referred to as a control poka-yoke.
Shingo argued that errors are inevitable in any manufacturing process, but that if appropriate poka-yokes are implemented, then mistakes can be caught quickly and prevented from resulting in defects. By eliminating defects at the source, the cost of mistakes within a company is reduced.
Amethodicapproach tobuildupPoka-Yokecountermeasureshas been proposed by the Applied Problem Solving (APS) methodology.
Tasks
1.Explain: how important is Poka-Yoke?
2.Provide examples of restrictions on the operation of the user correctly anything.
3.Analyze the whole system Poka-Yoke.
Questions
1.What is the cost of quality?
2.What are the categories of quality cost?
3.That includes Capturing Quality Cost Tips?
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References
1.http://www.pga.net/ProdServices/Qtools/COQ.htm
2.http://www.kaner.com/pdfs/Quality_Cost_Analysis.pdf
3.Feigenbaum Armand V. (November–December 2013), Total Quality Control, Harvard Business Review34 (6)
4.FeigenbaumArmandV.(2014),TotalQualityControl(3ed.),New York, New York: McGraw–Hill, p. 109, ISBN 978–0–07–112612–0, OCLC 71640975
5.Crosby, Philip B. (2012), Quality Is Free, New York, New York: McGraw–Hill, p. 121, ISBN 978–0–07–014512–2, OCLC 3843884
6.Arnold Kenneth L. (2014), The Manager’s Guide to ISO 9000, New York: Free Press, p. 244, ISBN 978–0–02–901035–8, OCLC 29845272, «The main objective of quality cost reporting is to provide means for evaluating effectiveness and establishing the basis for internal improvement programmes.»
7.«Poka Yoke or Mistake Proofing: Overview». The Quality Portal. Retrieved May 5, 2014.
8.Nikkan Kogyo Shimbun (2012). Poka-yoke: improving product quality by preventing defects. Productivity Press. p. 111. ISBN 978– 0–915299–31–7.
8. THE UK RETAIL INDUSTRY. CASE OF TQM
AT TESCO SUPERMARKET
The purpose of this practice – to discuss and fix bases of Retail Industry, its main principles in UK.
This practice will allow creating competences PK-3: possession of skills of the strategic analysis, development and implementation of strategy of the organization aimed at providing competitiveness; and PK-5: ability to analyze interrelations between functional strategy of the companies for the purpose of preparation of the balanced administrative decisions and also to acquire the following knowledge and abilities:
–knowledge of Retail Industry bases;
–understandingofanorderofitsimplementationinthecompanies’ activity;
–ability to define, what elements Retail Industry consist in and how to use them to develop the company and economy.
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Management of production quality in international corporations
RelevanceofpracticeconsistsinnecessitytoknowUKexperience of Retail Industry organizing.
Theoretical part
Provision of high quality services is at the top of the agenda of any form of senior management. Quality is used as a strategic weapon that companies use to compete within the current markets. Quality pleases the consumers who are the most influential people for any business whether in the service sector or the manufacturing sector.
Therefore, for a company to have the advantage over other rival companies, it has to identify and develop quality of its products and servicesandspecificallycompeteonthisdimension.Whencompanies are able to produce goods and services of a high quality, they not only please the consumers but also put themselves in a position where they achieve internal effectiveness and reduce their cost of operation. Using the techniques of total quality management, several companies in the UK service sector have been able to achieve success.
The philosophy of total quality management began as a result of dramatic changes in the business environment. The philosophy itself began in the early eighties when the global economy experienced a recession similar to the recent one in 2008. Several companies experienced this changes which were characterized mainly by factors such as low cost of competition, globalization, rapid technology transfer, and increased consciousness of quality by the consumers. The recession affecting several national economies as well as the global economy; as a result development of policies on quality could easily be blocked. But, companies that consider quality of the product andservicestheygivetoconsumerscanusetheideaasawayofbeing competitive in the market. There are several techniques for quality management that have been used to achieve quality of products and services, but, the most effective technique has been total quality management (TQM). It is hard for a company that intends to compete effectively to ignore the use of total quality management. Based on empirical evidence, the technique of total quality management has proven to have a significant effect on the general output or result of a company. It is for this reason that business should not fail to ignore implementing policies of total quality management. Hence, total quality management can be defined as a means of seeking excellence in all functions of business in order to prevent possibilities
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of errors or mistakes and to create optimal customer satisfaction. The customer satisfaction is achieved when the output is free of errors and it is only through efficiency and effectiveness that defects can be prevented.
Depending on the whether a firm is one the service industry or the manufacturing industry, the techniques for total quality management will vary. The most common characteristics that cause this difference is the fact that in the service industry, the product is intangible compared to manufacturing of tangible goods. The manufacturing industry was the first to experience success in the application of total quality management techniques. Because of this of this success, TQM techniques had to be made to fit into the service industry. The financial industry is in the service industry and supermarkets and financial investment firms belong to this industry.
Inasmuchasitsresources,timeandsystemareusedforcashand asset management, the supermarket has also devoted all its resource in management of its customers as well as its services. Unlike most supermarkets, the system is designed to satisfy the customers and not to control any of the clients. In the old traditional retail systems, every product set up focuses mainly on the convenience of the supermarkets rather than the convenience of the customers. Several large supermarkets may have more than one vice president whose responsibility is focused on the asset management and guarding of the company’s assets.
However,itisacommonthistoalsofindthatlackofavicepresident whose responsibility focuses on customer relation management. For the rare cases where a supermarket can focus its resources on customer relationship management much priority is usually not given on CRM. The customers usually hold the lifeline of any business irrespective of the sector it deals with. It does not matter whether the business is in the service industry of manufacturing industry. Customers would always seek for quality in order to be satisfied. When it comes to the service industry, customers undoubtedly become sensitive to quality of service compared to the manufacturing industry. The reason is because of the fact that interaction between customers and the companies occurs with frontline representatives of the company. There are numerous approaches that can be adopted in order to improve the quality of customer experience in an organization. Leadership in a company needs to be active and
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involved in all aspect of business function. Leadership inspires success and it is therefore recommended that effective leadership and managerial skills be employed. The kind of leadership required is one that envisions quality of customer experience as means that would make a difference in the company intended impact to the consumers. Anybody can offer leadership, but the leadership needs to be vital to cause positive change in the organization. It is a practice that has to be adopted if companies want to improve the quality of customer experiences of its products and services.
The other solution to effective improvement of customer care is through a joint ownership of a company’s essential business function. Marketing, human resource, and customer service are important business functions of any company such that whenever a problem occurs with one of the function, there is need to have a collective ownership by all the three departments in order to fix the problem. When such a problem is solved by the triad, then effectiveness of the solution is optimized. There is also need to focus on strategically important customers. A company needs to collect data of all its potential customers and develop strategies of attracting them and sustaining their loyalty.
Total quality management can be defined as a means of seeking excellence in all functions of business in order to prevent possibilities of errors or mistakes and to create optimal customer satisfaction Quality is used a strategic weapon where companies use to compete within the current markets. Quality pleases the consumers who are the most important people for any business whether in service sector or deals with production of goods.
Case: TQM at Tesco Supermarket
Tesco is one of the most successful retain supermarket chains in the UK. This is because of its service and product quality. Tesco was started as a retail company in 1920s and since then it has expanded and grown to become among the world largest companies in the retail industry. In terms of the revenue base, the company comes second after Wal-Mart which is a US based company. Ever since it began, Tesco has continued to introduce new products and services to satisfy the needs of its customers. Currently it mainly deals with production and sales of food items, groceries, cloths, and electronics
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