Operations Operat ions Management Simulation:
FOR COURSES IN: Operations Management
QUALITY ANALYTICS
by Barbara Flynn, Indiana University
Quality Management Statistical Process Control
Operations Management Simulation: Quality Analytics
In this single-player simulation, students learn how to manage quality in service, health care, and manufacturing settings through the use of analytics related to statistical process control (SPC), process capability, and the cost of quality. Students play 4
different challenges that ask them to calculate control limits, use control limits in real time to maintain control of a process, analyze control charts post hoc to determine whether a process is capable, and make managerial investments in preventive measures.
Students experiment with managerial decisions around process improvement to bring down the total cost of quality.
TEACHING THE SIMULATION
In order to play the simulation,
pretation of control charts, and
course or more advanced courses in
students are expected to have basic knowledge about the purpose of control charts, calculation of control
process capability. This simulation is appropriate for business undergraduate and MBA students who are taking an
quality management, Six Sigma, or SPC. It is appropriate as a mastery exercise after students have completed a module
limits for X-bar and R charts, inter-
introductory operations management
on quality management or SPC.
hbsp.harvard.edu
THE 4 CHALLENGES
The simulation presents 4 separate challenges that illustrate key concepts in quality control. ■
Using sample statistics, Challenge 1 asks students to calculate control limits for X-bar and R charts in a generic manufacturing setting.
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In Challenge 2, students use the control limits from Challenge 1 to inform decisions about machine recalibrations and labor swaps to keep the process in control while minimizing cost.
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In Challenge 3, students are provided with 4 separate histograms
Students use X-bar and R charts to analyze a process in real time.
(each for a different industry) with the means of all samples over a period of time and must determine whether each process is capable of producing to specifications. ■
In Challenge 4, students make investment decisions related to prevention and appraisal in order to minimize the total cost of quality.
CONTROL CHARTS
The simulation uses control charts to illustrate a variety of lessons related to process control and process capability. Key learning objectives include balancing the costs of internal and external failures with the costs of bringing a process back into control, and understanding the difference between control limits and specification limits and how
Challenge 3 helps students understand the difference between control limits and specification limits.
they work together to determine the capability of a process. COST OF QUALITY
In addition to covering process control, the simulation teaches valuable lessons about process improvements. In Challenge 4, students experiment with investments in prevention and appraisal to reduce internal and external failures. This challenge demonstrates how managerial investments in process improvement— while initially expensive—can ultimately lower the total cost of quality by reducing costly defects.
ADMINISTRATION TOOLS ON NEXT PAGE ➜
Administration Tools for Faculty
A comprehensive Teaching Note covers key learning objectives, including: ■
A review of essential calculations in SPC, including control limits and process capability index
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How managerial decisions about quality control, including monitoring a process with SPC and making quality improvement investments, affect product yields and costs
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The relationship between internal failure costs, external failure costs, appraisal costs, and prevention costs and how they contribute to the total cost of quality
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How to use SPC in real time to make go/no go decisions about a process, 1 sample at a time
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The difference between a process that is in control and a process that is capable, through post hoc analysis of a control chart
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How managerial decisions about cost play out in the trade-off between cost and defect rate
Aggregated class results for Challenge 4 illustrate the classic “Cost of Quality” curve.
VIEWING SI MULATION RESULTS
FACULTY DEBRIEF SLIDES
Faculty have full and immediate access to the student results for Challenges 2, 3, and 4 via the Class
Instructors have access to a PowerPoint template presenting specific topics for simulation debrief.
Summary/Overview page. A graphical illustration of Challenge 4 results is
4 1 3 0 2 6 4 8 1 C M
5 6 8 3 1 M # t c u d o r P . r e p a p d e l c y c e r
also available.
n o d e t n i r P
Product #4404 | Single-player | Seat Time: 60 minutes | Developed in partnership with Forio Online Simulations
PREVIEW AND FREE TRIAL ACCESS Visit hbsp.harvard.edu
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Educator Copies, Teaching Notes,
entire simulation and is available to Premium Educators on our web site.
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ALSO AVAILABLE Operations Management Simulation:
Benihana V2 #7003 ■
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