Financially focused quality:
Saved in:
| Main Author: | |
|---|---|
| Format: | Book |
| Language: | English |
| Published: |
Boca Raton [u.a.]
St. Lucie Press
1999
|
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XVIII, 294 S. Ill. |
| ISBN: | 1574442481 |
Staff View
MARC
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| 245 | 1 | 0 | |a Financially focused quality |c Thomas M. Cappels |
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| 300 | |a XVIII, 294 S. |b Ill. | ||
| 336 | |b txt |2 rdacontent | ||
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Record in the Search Index
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| adam_text | Contents
Chapter 1. Update on Quality 1
Introduction 1
Focus on Quality 2
Quality Becomes Big Business 3
The Business of Quality 4
Evolution of the Corporate World 5
Financially Focused Quality 6
Self Study/Discussion Questions 6
References 7
Chapter 2. Employee Involvement in Quality Management 9
Introduction 9
Human Resources 10
Employee Benefits 10
Retirement Plan 10
Medical and Dental Benefits 11
Vacation/Holiday Benefits 11
Sick Pay/Salary Continuation Policy 11
Employee Stock Ownership Plans 11
Employee Stock Options 12
Assistance With Further Education 12
Company Training Programs 13
Flexibility of Shifts 13
Transportation and Commute Alternatives 13
Employee Recreation Facilities 13
Executive Perks 14
Summary 14
Employee Participation in Quality Management Activities 14
Total Quality Management 15
Total Quality Service 15
Empowerment and Ownership 16
Employee Suggestion Systems 17
Cost Reduction or Avoidance Programs 18
ix
Continuous Quality Improvement 18
Process Management 19
Pay for Performance 19
Participative Management and Team Building 20
Quality Circles 20
Task Force Teams 21
Natural Work Teams 21
Process Improvement Teams 22
Effective Meetings 22
Meet at the Right Time and Place 25
Meeting Locations 26
Possible Roles of Attendees 26
Brainstorming 27
Affinity Diagrams 28
Lean Process 28
Kaizen Event 28
Six Sigma 28
Summary 29
Self Study/Discussion Questions 29
References 29
Chapter 3. Managerial Strategies for Quality Management 31
Introduction 31
Total Improvement Management 32
The Financially Focused Quality Blueprint 32
Component 1: Direction 33
Component 2: Basic Concepts 34
Component 3: Profit Generation 34
Component 4: Enterprise Impacts 35
Component 5: Rewards and Recognition 35
Manufacturing Resource Planning 35
Just in Time Manufacturing 36
Business Objectives 36
Vision Statements 36
Mission Statement 39
Benchmarking/Best Practices 39
Training 40
Measurement Process 41
Core Competencies 42
Outsourcing 42
Reengineering 43
Restructuring 43
Rightsizing/Smartsizing 44
Downsizing and Budget Cutting 44
Partnerships With Suppliers 45
Quality Costs and Poor Quality Costs 45
Full Cycle Corrective Action 46
Cost as an Independent Variable 46
x
Summary 46
Self Study/Discussion Questions 46
References 47
Chapter 4. Quality Management Systems and Customer Focus 49
Introduction 49
Quality Management Systems 50
Standardization 50
The Euro 50
Movie, Video, and Computer Products 51
8 mm Movies: Super 8 vs. Single 8 Movie Formats 51
Beta vs. VHS Videotape Formats 51
VHS vs. 8 mm Videotape 51
Macintosh vs. Personal Computers 52
ISO 9000 and ISO 14000 Series 52
ISO 9000 Series 53
ISO 14000 Series 54
External Customer Focus 55
Customer Feedback 56
Expensive Products and Customer Feedback 56
Inexpensive Products and Customer Feedback 57
Service Industry Feedback — Surveys and Questionnaires 58
Service Industry Feedback— Real Time (Restaurant) 58
Service Industry Feedback — Real Time (Hotel) 60
Unsolicited Letters 60
Summary 61
Self Study/Discussion Questions 62
References 62
Chapter 5. Quality Control 63
Introduction 63
Dr. W. Edwards Deming 63
Process Quality Control and Statistical Analysis 65
Diminishing Returns of Quality Control Measures 65
Quality Control Definition and Goals 67
Quality Assurance Organization 67
Closed Loop Corrective Action 68
Relationship of Financially Focused Quality to Closed Loop Corrective Action 70
CLCA Operations and Failure Reporting Systems 70
Supplier Operations 70
Fleet and Field Facilities Operations 74
Quality Engineering 74
Summary 76
Quality Assurance and the Product Life Cycle 76
Research and Development Phase 76
Design Phase 76
Production Phase 77
Operation Phase 77
Disposal Phase 77
xi
Cycle of Quality Activities 77
Quality Assurance Functions 78
Receiving Inspection 78
In Process Inspection 79
Shipping Inspection and/or Final Inspection 79
Accelerated Test 79
Configuration Management 79
Destructive Testing 80
Engineering Evaluation Test 80
Electrical In Process Inspection 80
Fabrication and Assembly Inspection and Test 80
Failure Analysis 80
Failure Diagnosis 80
Failure Verification 81
First Article Compatibility Test 81
Material Review Board 81
Mechanical In Process Inspection 81
Metrology Audits 81
Parts Application Review 81
Product Evaluation Test 81
Quality Assessment 82
Quality Audit 82
Receiving Inspection and Test 82
Source Acceptance 82
Source Verification Inspection 82
Statistical Process Control 82
Value Engineering 82
Summary 83
Traditional Finance Involvement in the Cycle of Quality Activities 83
Completing the Cycle of Quality Activities: Finance 85
Self Study/Discussion Questions 86
References 86
Chapter 6. Avoiding Product Liability: Design and Development 87
Introduction 87
Product Safety 87
Responsibility for Product Safety 88
Manufacturer Liability 88
Basic Conditions of a Product Liability Case 89
Manufacturing Defects 90
Quality Assurance vs. Product Liability 90
Evolution of Quality Assurance 91
Relationship Between Quality Assurance and Product Liability 92
Systematic Approach to Quality and Safety Assurance 92
Product Design Safety 93
Purchased Material Quality 93
Manufactured Product Quality 93
Product Safety After Delivery 94
xii
Quality Control and Product Liability Aversion 95
Product Safety Related Quality Information 95
The Financially Focused Approach to Product Safety Related Corrective Action 96
Product Design: The Beginning 96
Product Design Safety 96
Product Safety Specification 97
Standards for Design and Manufacture 97
Evaluation of Safe Product Design Quality 98
Design and Documentation Reviews 98
Safety Design Review 99
Classification of Safety Critical Characteristics 100
Design and Qualification Test 100
Vendor Materials Control 101
Sources for Raw Materials, Parts, and Components 101
Make or Buy Committees 101
Supplier Selection 102
Ordering Cost Effective Quantities 102
Conforming to Requirements 102
Suppliers Performance Histories 103
Supplier Quality Evaluation Survey 103
Supplier Evaluation Questionnaire 104
Purchasing Provisions and Specifications 104
Summary 105
Self Study/Discussion Questions 105
References 106
Chapter 7. Avoiding Product Liability: Manufacturing and Use 107
Introduction 107
Inspection and Test of Vendor Components 107
First Article Inspection 108
Source Inspection 108
Vendor Inspection 109
Receiving Inspection 109
Inspection Records During the Receiving Cycle 110
Source/Receiving Inspection: Corrective Action 110
Inspection of Storage Facilities 110
Inspection and Testing in Manufacturing 111
The Obligation To Inspect and Test 111
Inspection and Test Areas Ill
Measurement 112
Training of Inspectors 113
Inspection Instructions 114
Inspection Procedure Manuals 115
Industrial Quality Assurance 116
Assessing the Production Process 116
Process Capability Studies 116
Mandatory Process Evaluation 116
The Manufacturing Process 117
xiii
Process Control U?
In Process Inspection and Testing 118
Tolerances H9
Nonconforming Material 119
Quality Assurance Through Statistics and Sampling 120
Definition of Terms 120
Sampling Inspection 121
Random Numbers 121
Sampling Plans 123
Degree of Inspection 124
Sampling Plans vs. 100% Inspection 124
Arguments Against Sampling Plans 125
Inspector Errors 125
Consumerism 126
Shipping Inspection 126
Packaging for Product Safety 126
Product Safety in the Field 127
Service Publications 127
Field Results 127
Product Recall 128
Management Resources for Assuring Quality 129
Accredited Laboratories 129
Audit Control 130
Vendor Audit 130
Product Safety Audit 131
Quality Assurance Evaluation Checklist 132
Summary 133
Self Study/Discussion Questions 134
References 134
Chapter 8. Financial Administration and
Financially Focused Quality Training 137
Introduction to Financially Focused Quality 137
Financial Training 138
Cycle of Financial Activities 139
Financial Concepts 141
Accounting Classifications 142
Direct vs. Indirect Costs 142
Labor vs. Nonlabor Costs 143
Direct Direct and Allocated Direct Costs 144
Overhead Costs (Indirect Costs) 144
Work Breakdown Structure 144
Cost Accumulation Structure 145
Charge Numbers 145
Timekeeping, Timecards, and Cost Segregation 146
Virtual and Manual Timecards and Labor Recording 148
Forecasting Personnel 150
Criteria 150
xiv
Proposals 150
Training 150
Facilities 150
Human Resources 151
Forward Pricing Rates/Overhead and General Administrative Costs 151
Forecasting Direct Personnel 151
Yield/Realization Factor 152
Forecasting Problem 154
Contracting Modes (Fixed Price/Cost Reimbursable) 154
Fixed Price 154
Firm Fixed Price 154
Fixed Price Incentive 155
Cost Reimbursable Contract 155
Cost Plus Fixed Fee 155
Cost Plus Incentive Fee 155
Cost Plus Award Fee 156
Disallowances 156
Rates per Direct Labor Hour 156
Teaching Financially Focused Quality and Financial Concepts 157
An Effective FFQ Training Guideline 158
Examples of Financially Focused Training Materials 160
Self Paced Training 160
Summary 160
Self Study/Discussion Questions 161
References 161
Chapter 9. Financial Functions 163
Introduction 163
Proposals and Pricing 163
Commercial Contracting 163
Government Contracting 164
Proposal Preparation Flow 165
Raw Resource 166
Proposal Components 166
Basis of Estimate 166
Elements of a Historical Basis of Estimate 168
Engineering Estimates 168
Security Guidelines for Cost Proposals 168
Audit Checklist for Basis of Estimate 169
Pricing 170
Budgeting 170
Government Appropriations and Funding Fences 171
Management Reserve and Undistributed Budget 171
Reporting 172
General Accounting 173
Payroll Accounting 173
Accounts Payable 174
Financial Accounting 175
XV
Cost Accounting 175
Contract Closure 176
Summary 176
Self Study/Discussion Questions 177
Chapter 10. Financially Focused Quality Performers and Components 179
Introduction 179
Financially Focused Quality Overview 180
Failure Identifier or Opportunity Identifier 181
Failure Notice 181
Process Improvement Recommendation 181
Process Improvement Coordinator 181
Failure Analyst or Process Analyst 181
Process Analysis Meeting 182
Finance 182
Process Improvement Cost Analysis 182
Process Improvement 182
Process Improvement Follow Up Plan 182
Product Support 183
Process Improvement Closure Notice 183
Failure or Opportunity Identifier 183
Process Improvement Begins With Opportunity Identification 185
Methods for Failure and Opportunity Identification 185
The Failure and Opportunity Identification Process 186
Customers 188
Government Failure Identification 188
Warranty Service Department 189
Failure Identifiers in the Factory 189
Inspectors 189
Manufacturing Employees 189
All Other Company Employees 189
Summary 190
Failure Notice 190
Failure During Manufacturing 190
Failure: Customer Return 191
Failure: Hotel Industry 192
Generic Failure 192
Process Improvement Recommendation 193
Process Improvement Recommendation Success Factors 195
Ease of Processing 195
Low Implementation/Administration Costs 195
Mandatory Management Involvement 196
Process Improvement Recommendation Motivation 198
Examples of Process Improvement Recommendations 200
Illustration of Acting on a Process Improvement Recommendation 201
Summary 202
Self Study/Discussion Questions 202
xvi
Chapter 11. Financially Focused Quality Process
Improvement Coordination and Decision Making 203
Introduction 203
Process Improvement Coordination 203
When Process Improvement or Corrective Action Is Not Required 204
Time Requirements for Process Improvement Coordination 205
Time Requirements for Process Improvement
Recommendation Coordination 205
Time Requirements for Failure Notice Coordination 205
Process Improvement Recommendations: Related Functions
of the Process Improvement Coordinator 206
The Financially Focused Quality Mindset 206
The Process Improvement Coordinator and the Failure Notice 207
Auto or Aircraft Manufacturing Failure 207
Television Manufacturing 208
Service Industry Failure #1 208
Service Industry Failure #2 208
The Coordination Process 208
Coordination of Process Improvement Recommendation Projects 209
Coordination of Process Improvement Recommendation Concerns 210
Coordination of Failure Notices 212
Failure Analysts 212
Process Analysis Meeting 214
Brainstorming 216
Topic or Objective Definition 217
Recording Ideas 218
Presentation of Rules 218
Take Turns 218
Place Maximum Effort on Idea Generation 218
Don t Throw Anyone into a State of Self Conscious Distress 218
Everyone Has To Participate 219
Relax and Have a Sense of Humor 219
Exaggerate 219
Condense Ideas and Be Concise 219
No Judgments Allowed 219
Completion of Brainstorming and Discussion 220
Financially Focused Quality and Probabilities 220
Selection 221
Components of Effective Brainstorming 221
Process Improvement Cost Analysis 222
Process Improvement Follow Up Plan 224
Process Improvement Closure Notice 226
Financial Administration 227
Product Support Organizations 229
Summary 230
Self Study/Discussion Questions 231
References 231
xvii
Case Study A: Perky Pets — Commercial Manufacturing 233
Case Study B: Financially Focused Quality
Implemented in Software Engineering 245
Case Study C: Bob s Purple Bayou Cafe 257
Case Study D: One Company s Success With Outsourcing 265
Case Study E: Hotel Operations 273
Index 287
xviii
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