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Quality Management Tools

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Using the Cybrary and Web Resources:
1. Select four types of quality management tools or methods.
2. Contrast and compare these tools or methods, identifying their purpose and relationship.
3. Which ones would be most useful for Manychip?

Manychip, Inc., is a specialty memory chip manufacturer located in Southern California with manufacturing plants located in the United States, Europe, Singapore, and Japan. Additionally, Manychip has branch sales offices located in major metropolitan areas across the globe. The market for Manychip's six key products included original equipment manufacturers of personal computers, cellular telephone manufacturers, electronics distributors, and government organizations. The market environment for Manychip's products is extremely volatile, with fluctuating demand and rapidly changing prices. The company uses short term contracts (less than one month) and spot pricing for irregular customers. Internally, the operation is capital-intensive, with depreciation running approximately $1.2 million per day (depreciation has an impact on revenue streams). The six key products had further specialized components, making the possible line mix total 24 distinct products. Further, the manufacturing process required high manufacturing lead times and various product yields. In the high technology memory arena, product life cycles were dramatically shortened because of rapid obsolescence. To coordinate the manufacturing activity, Manychip has an established process and system that helped optimize resource utilization, improve shop floor efficiencies, and manage customer demand.
Manychip is experiencing 10-15% growth in revenues and volume, primarily tied to increased worldwide demand, product type, and market variables. Most significantly, the company received a major pre-order for a new cellular phone memory chip that's schedule to come out in three months. This pre-order is scaled for up to 10 million units and management is concerned the existing process and system may not be suitably optimized for this order. Additionally, the forecast in sales figures for all six key product lines is higher than it has been in the past. With the increase in volume, management is concerned about the quality management process as well-can the existing processes maintain the highest degree of quality needed?
As a new member of the Production Planning Management staff, you'll be expected to help develop strategies to support the expanded growth plans. Your team faces several fundamental issues. First, are the individual plant layouts conducive to the expanded growth expected by the company? Second, are individual plant layouts optimized for the most efficient performance and lowest cost? Third, is the existing supply chain interaction among all the various components optimized in the same manner individual layouts are expected to be optimized? Finally, your group must consider capacity planning and workflow to ensure the company can meet its contractual obligations with the maximum revenue and profitability.Manychip currently uses information systems developed by the company to conduct production planning. You believe that a fully integrated enterprise resource planning tool or specific production planning software would better suit the company in light of its upcoming increase in production.

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Quality Management Tools and comparison/contrast:
Six Sigma concepts can be very valuable tools for driving excellence in operations management and could be very useful for Manychip. Six Sigma is a philosophy and set of methods corporations use to eliminate defects in their products and processes by seeking to reduce variation in the processes that lead to product defects. I believe a significant reason for the popularity of Six Sigma is due to its drive for defect reduction, process improvement, and focus on those outputs that are important to customers. Another popular quality management philosophy that may be useful for Manychip is the Shingo system, developed in parallel and in many ways in conflict with the statistically based approach to quality control. Mr. Shingo's belief is that the way to prevent defects from coming out at the end of a process is to introduce controls within the process itself. Central to this philosophy is the difference between errors and defects. Even though errors are inevitable, defects can be prevented if feedback leading to corrective action takes place ...

Solution Summary

Quality Management Tools are compared.