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lowed lower limit of the product characteristic, based on customer expect. s = standard deviation of the product characteristic from the production process PCI Process is capable of meeting customer expectations. PCI Process is not capable. 43 Process Capability Index (PCI) LL UL PCI = PCI = PCI = Process is not capable Process is capable Process is quite capable 44 Example: Process Capability In order for a certain molded part to be considered acceptable, the molding process must be conducted within a limited range of temperature. The lower limit is 455o and the upper limit is 465o. Three molding machines being considered are A, B, and C with standard deviations of sA = , sB = , and sC = . Which of these machines are capable of producing the part in accordance with the temperature requirements? 45 Example: Process Capability PCIA = (465 455) / (6()) = 10/15 = PCIB = (465 455) / (6()) = 10/ = PCIC = (465 455) / (6()) = 10/ = Machine A is not close to being capable, with a PCI well below . Machine B is more than adequate with a PCI well above . Machine C falls slightly short of being capable. 46 Developing Supplier Partnerships ? Supplier bees part of the customer’s TQM program ? The relationship between the supplier and the customer bees longlasting and durable 47 Customer Service, Distribution, and Installation ? Packaging, shipping, and installation must be included in TQM. ? Warehousing, marketing, and the distribution function must be mitted to perfect quality. ? Contact between the customers and the firm’s product must be planned and managed to provide satisfied customers. 48 Building Teams of Empowered Employees ? Employee training programs ? Employees at all levels are trained in quality. ? Works teams and empowerment ? Workers are given the authority to act. ? Quality at the source ? Workers are responsible for their own work. ? Quality circles ? Small groups of employees who analyze and solve quality problems and implement improvement programs. 49 Benchmarking and Continuous Improvement ? Benchmarking ? The practice of establishing internal standards of performance by looking to how worldclass panies run their businesses ? Continuous Improvement ? The pany makes small incremental improvements toward excellence on a continual basis 50 Quality Management in Services ? Since many services are intangible, it is difficult to determine their quality ? Customers set their own standards for services ? Perceived quality of service affected by the surroundings ? Performance of service employees determines in large part the quality of the services 51 WrapUp: WorldClass Practice ? Quality begins when business strategy is formulated ? Quality is the weapon of choice to capture global markets ? Quality drives the productivity machine ? Not depending on inspection to catch defects。 concentrating on doing things right the first time ? Committing tremendous resources to put in place TQM programs aimed at continuous improvement 52 End of Chapter 7