Nashville Custom Guitars (NCG) is a small-scale manufacturing operation, producing fewer than 800 instruments a year. The company does not have a formal quality department nor has it consciously tried to apply the principles of TQM. Nevertheless, a tour of its facilities and operations suggests that many of the principles of TQM and Deming’s 14 Points are evident. Although modern computer numerical controlled (CNC) equipment is used to manufacture minor parts of the guitar, the secret of NCG’s success lies in the small staff of 14 craftsmen, known as luthiers, who apply care and attention to detail while hand-crafting the major components of each instrument. The shop floor is divided into six workstations at which the guitars are progressively assembled as they move from station to station. Experienced luthiers, who are empowered to make their own quality decisions, staff each station. The guitar does not move to the next station until the luthier and another more senior luthier are satisfied with the quality of the work. The manufacturing department inspects what it produces. The company recruits only those who desire to work in a team environment and have a passion for guitar making. There are seven major steps in the process of making a guitar: 1. Selecting and Drying the Wood: The guitar-making process starts with the selection of the highest grades of tonewoods. The wood is treated in an evaporative dehumidifying kiln that slowly and carefully removes bound cellular moisture from the wood. The target moisture level is 3 percent, but when exposed to the temperature/humidity conditions of the shop floor, the moisture content stabilizes at 6 percent. The shop floor is kept at a constant 47 percent humidity, which is optimum for maintaining the equilibrium of moisture conditions. 2. Rough Cutting the Wood: Once dried, the wood is worked down to rough usable forms using traditional woodworking tools. However, NCG uses a CNC machine for creating the necks. 3. Bending the Sides: To create the desired shapes, the guitar sides are first dipped into water for 10 minutes to condition the wood and then placed under gradual hand pressure on a hot bending template. At that point, the tension in the wood has been relaxed, and the wood eventually takes the shape of the template. This process is best performed by human hands because sides that are shaped by machines have a tendency to spring back when they are being forced into molds. 4. Cutting the Top and Back: The top and back of the guitars then are cut to shape, and braces are applied to each surface. The thicknesses of the top and braces have the most influence on the final sound of the guitar. As the luthier shaves off ribbons of wood from the top and braces, he will tap the top to hear the tone that results from each series of shavings until the tone is perfect. Since the true sound of the instruments will not be fully realized until they are assembled, the luthiers write down what they did while building the top. After final assembly, if a guitar produces a sound so special it knocks the player’s socks off, the luthier who built the top will immediately be notified and asked to check his notes to see how this was accomplished so the sound can be duplicated in the future. 5. Cutting the Neck: About 60 percent of the NCG guitar necks are cut on the CNC machine. It is the only major part that is not hand-made. It is critical that the dimensions of the neck be consistent, and the CNC machine does that well than human hands. The 40 percent of necks that are hand-made are done that way because of a customer’s specifications. Ebony fret boards, which are inlaid with mother-of-pearl, are then glued to the necks. 6. Applying the Finish: The guitar body is finished with 12 protective layers of a specially formulated lacquer composed primarily of nitrocellulose and plasticizers to preserve the wood surfaces. The lacquer is thin enough that the sound is not dampened. 7. Completing Final Assembly and Setup: The neck is fitted to the body using a dovetail joint and glued in place. Then the bridge is glued to the body. In the next step, called the setup, the saddle and nut, which suspend the strings over the instrument and are made from bovine bones, are installed. Finally, the strings are placed on the guitar, and it is played for the first time. A technician then adjusts the neck or string height to optimize the feel and play-ability of the instrument. NCG has a web page where guitar owners can have questions about their guitars answered. At NCG, workers are encouraged to further enhance their skills either by taking external courses or by a practice that allows them to build two instruments a year for personal use. These opportunities allow the craftsmen to explore new techniques in guitar building and become familiar with the entire guitar building process. NCG workers are even encouraged to go out on their own to open a luthier business someday. Based on this descriptive tour of NCG, can you identify how the operations and quality practices reflect Deming’s 14 Points? Walker Auto Sales and Service (WASS) is a full service dealership for a major domestic automobile brand. Esentially, WASS provides three main services: new car sales, used car sales, and repair and maintenance service. Because of the competitive nature of the market, the firm’s owner, Darren Walker, wants to take a more systematic approach to improving service and providing a high level of customer satisfaction. Through surveys, focus groups, and analysis of complaint data and information, he identified some important requirements for these services. Customers expect a favorable impression when they arrive at the dealership—a wide range of vehicles and options to evaluate, available salespeople, to be greeted promptly, and to feel comfortable and not pressured. They also expect salespersons to be courteous, knowledgeable about the cars, respect their time, and honor verbal promises. For repair and maintenance service, customers want to have the work explained appropriately, to be fully informed of any additional necessary work, and to have all work reviewed upon completion. They want good time estimates and communications with the service department. Suppliers play an important role in the business and the entire value chain. The dealership needs quality parts, product availability when needed, timely delivery, and fair prices. WASS also receives corporate support for its employee benefits and certain training programs, information technology planning and intranet/Internet development, marketing and advertising, and strategic planning direction. WASS is facing increasing competition for skilled employee talent, changing customer demographics that are leading to growing demand, and more competition as a result of new foreign dealerships that are locating in its market area. Darren recognizes the need to “become the dealership of choice” in its market. Drawing upon the principles of quality management and the unique nature of services addressed in Chapter 1, describe some of the issues that Darren must consider in achieving his vision. Develop a list of action plans that he might consider.
> Summarize the six quality perspectives described in this chapter.
> What practices do Motorola and Mid-American Transplant in the Quality Profiles use to help them achieve high quality?
> What factors have contributed to the increased awareness of quality in modern business?
> Describe some approaches that organizations use to conduct Baldrige self-assessments.
> Think about the “supply chain” for filling a doctor’s prescription. Describe the different types of customers involved in the process.
> What are the characteristics that distinguish Baldrige Award recipients from other organizations?
> Explain the concepts of approach, deployment, learning, and integration in Baldrige assessment.
> Describe the Baldrige Award process. How does it ensure that organizations are truly worthy of receiving the Award?
> What is organizational sustainability? Why is it vital to business success?
> List the Baldrige Core Values and Concepts. Why do you think they are important for any organization to pursue?
> Explain the logic of the Baldrige Criteria framework and why each element is important in any organization.
> Describe the key issues addressed in each of the seven categories of the Criteria for Performance Excellence.
> Why can Baldrige, ISO 9000, and Six Sigma be used together in an organization?
> What are the similarities and differences among Six Sigma, ISO 9000, and the Baldrige approaches?
> What is the role of national culture in adapting the Baldrige framework to a particular country?
> Construct a list of at least 10 different names for a “customer,” for example, buyer, client, and so on.
> Explain the differences between the Baldrige framework and the EFQM framework.
> How does Baldrige support Deming’s 14 Points?
> What are some of the impacts that the Baldrige program has provided, both in the United States and around the world?
> Summarize the purposes of the Baldrige Award.
> Explain the difference between strategies, strategic objectives, and action plans.
> What are strategic challenges? Why is it important to understand them in strategic planning?
> What is the purpose of the Baldrige Organizational Profile? Summarize the information contained in the Organizational Profile. Why is knowing this information important?
> What factors are examined in an environmental assessment?
> Define mission, vision, and guiding principles. What is the purpose of each?
> Explain the elements of a typical strategic planning process.
> A service representative of a major U.S. airline told a customer about an internal memo that had been circulated called “No Waivers, No Favors,” which promises significant and negative consequences to any employee giving a customer special treatment outs
> Summarize the key practices for a strategic focus on performance excellence.
> Why is strategic planning important for all organizations?
> Explain the strategic role of work systems design. How should outsourcing and vertical integration decisions be made from a strategic context?
> What are core competencies? Why is it important to understand them?
> What types of organizational structures are common in TQ-based organizations today?
> Describe the types of organizational structure commonly used. What are the advantages or disadvantages of each?
> Describe the key contextual factors that affect organizational structure. What implications do they have for quality?
> List and explain the seven management and planning tools.
> Why is it important to address human resource plans in strategic planning?
> How does catchall play an important role in policy deployment?
> Many organizations, such as banks, offer significant incentives to attract new customers, such as $150 to open a new checking account. However, existing customers rarely receive incentives to stay. What do you think of such practices? What are the implic
> Explain the concept of hushing kanji and provide a simplified description of this process.
> What is strategy deployment? How does it differ from strategy development?
> What is a strategy? What does a good strategy provide for an organization?
> Explain the knowledge and management expertise that Green Belts, Black Belts, and Master Black Belts should have?
> Explain the role of projects in Six Sigma. How Six Sigma teams are typically organized?
> List and explain the five categories into which all quality problem solving can be classified. Provide some quality-related examples in each category.
> What is Kempner and Trego’s definition of a problem?
> Explain the theoretical basis for the six-sigma 3.4 dpmo measure. How does it relate to process capability concepts?
> List the key principles of the Six Sigma philosophy. How does it differ from TQM?
> What is Six Sigma? Briefly outline its history at Motorola and General Electric.
> A person who runs an auto repair shop related that he routinely washes cars or changes the oil for his best customers at no charge. What are the benefits of such a policy?
> Why is Lean Six Sigma especially useful in services? Cite some examples.
> How did Lean Six Sigma evolve? How does it differ from the original concept of Six Sigma?
> Describe the key tools used in lean production.
> Explain the steps of the Deming cycle.
> Why is brainstorming an important tool in the Improvement phase of DMAIC?
> What is root cause analysis? Describe some tools that are useful in identifying a root cause.
> What is a value stream map and how does it differ from an ordinary flowchart?
> Explain different types of check sheets and how they are used.
> What is an operational definition? Why is it important?
> State the typical elements that make up a project charter.
> Are you loyal to any particular businesses? Why or why not?
> What is a SIPOC diagram? How is it used in DMAIC?
> Explain the concept of Pareto analysis. How is a Pareto distribution created?
> Explain the structure and purpose of the A3 Report that Toyota created. How does it support the DMAIC process?
> Discuss factors that should be considered when selecting Six Sigma projects.
> Explain the four themes that different improvement methodologies share. How are they reflected in the Deming cycle, creative problem-solving process, and DMAIC?
> Provide some examples of low-tech and high-tech measuring instruments used in quality control.
> List and explain the four major categories of quality costs. Give examples of each.
> Why are cost of quality programs valuable to managers?
> Explain the difference in measuring nonconformance’s per unit and defects per million opportunities (dpmo)? What advantages does dpmo have as a quality measure?
> What is the difference between an attribute measurement and a variable measurement?
> One national home improvement store trained employees to “make a customer, not a sale.” For instance, if a customer tried to buy a small item such as a bolt that didn’t have a barcode or one that was unreadable, employees would let the customer have it f
> Explain the difference between a nonconformance and a nonconforming unit of work.
> What trade-offs are involved in selecting the sample size for a control chart?
> Explain the concept of rational subgroups.
> What is a dashboard and why is it valuable in quality control?
> What guidance does ISO standard 11462-1 provide for organizations wishing to use SPC?
> Explain the difference between a c-chart and a u-chart.
> Does an np-chart provide any different information than a p-chart? Why would an np-chart be used?
> Describe some situations in which a chart for individual measurements would be used.
> Why is the s-chart sometimes used in place of the R-chart?
> What does one look for in interpreting control charts? Explain what a control chart for a process in statistical control should look like, and the characteristics of out-of-control indicators.
> A criticism of the Net Promoter Score is that different percentages of promoters, passives, and detractors can result in the same scores. For example, suppose that one firm has 20 percent detractors, 0 percent passives, and 80 percent promoters, while an
> Briefly describe the methodology of constructing and using control charts.
> Explain how pre-control is applied. How does it differ from statistical process control?
> How does a process performance index differ from a process capability index?
> What does the term in statistical control mean?
> What does the acronym SMART signify for measurement? Why are these characteristics important?
> Explain how to interpret the ratio Cpk /Cp .
> Define the process capability indexes, Cp , Cpl, and Cpu, and explain how they may be used to establish or improve quality policies in operating areas or with suppliers.
> What are the three major types of process capability studies? Describe the methodology of conducting a process capability study.
> Explain the term process capability. How can process capability generally be improved?
> How is an R&R study performed? What is its purpose?
> Develop some survey questions that an Urgent Care facility might ask patients about their experience. Group your questions into categories of Physician/ Nurse, Personal Issues, and Overall Experience.
> Explain the difference between repeatability and reproducibility.
> What is calibration and why is it important to a good quality control system?
> What is the difference between accuracy and precision?
> Describe the science of metrology.
> Explain the importance of formula (8.5):
> Define measurement, and explain the difference between measures and indicators.
> Explain and give an example of nominal specifications and tolerances in both manufacturing and service.