chapter 1 introduction to quality ppt

MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 1

Chapter 1Chapter 1

Introduction to

Quality


Modern Importance of QualityModern Importance of Quality

“The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.”

- William Cooper Procter


Key Idea

Building—and maintaining—quality into an organization’s goods and services, and more importantly, into the infrastructure of the organization itself, is not an easy task.


Quality Assurance

...is any action directed toward providing customers with goods and services of appropriate quality.


History of Quality Assurance (1 of 3)


Skilled craftsmanship during Middle Ages Industrial Revolution: rise of inspection

and separate quality departmentsEarly 20th Century: statistical methods at

Bell SystemQuality control during World War IIPost-war Japan: evolution of quality

management




Quality awareness in U.S. manufacturing industry during 1980s: from “Little Q” to “Big Q” - Total Quality Management

Malcolm Baldrige National Quality Award (1987)

Disappointments and criticism


Key Idea

Although quality initiatives can lead to business success, they cannot guarantee it, and one must not infer that business failures or stock price dives are the result of poor quality.




Emergence of quality management in service industries, government, health care, and education

Evolution of quality to performance excellence Growth and adoption of Six Sigma Current and future challenge: continue to apply

the principles of quality and performance excellence. Quality is “a race without a finish line.”


Contemporary Influences on QualityGlobalization Innovation/creativity/changeOutsourcingConsumer sophisticationValue creationChanges in quality


Defining Quality

Perfection

ConsistencyEliminating waste

Fast delivery

Compliance with policies and procedures

Providing a good, usable product

Doing it right the first time

Delighting or pleasing customers

Total customer service and satisfaction


Formal Definitions of QualityFormal Definitions of Quality

Transcendent definition: excellence Product-based definition: quantities of

product attributes User-based definition: fitness for intended

use Value-based definition: quality vs. price Manufacturing-based definition:

conformance to specifications


Quality PerspectivesQuality Perspectives

CustomerCustomer

DistributionDistribution

productsproducts and and servicesservices

needsneeds

transcendent &transcendent &product-basedproduct-based user-baseduser-based

manufacturing-manufacturing- basedbased

value-basedvalue-based

MarketingMarketing

DesignDesign

ManufacturingManufacturing

Information flowInformation flow

Product flowProduct flow


Key Idea

Because individuals in different business functions speak different “languages,” the need for different views of what constitutes quality at different points inside and outside an organization is necessary to create products of true quality that will satisfy customers’ needs.


Customer-Driven QualityCustomer-Driven Quality

“Meeting or exceeding customer expectations”

Customers can be... Consumers External customers Internal customers


Total Quality People-focused management system Focus on increasing customer satisfaction

and reducing costs A systems approach that integrates

organizational functions and the entire supply chain

Stresses learning and adaptation to change

Based on the scientific method


Principles of Total Quality

Customer and stakeholder focusParticipation and teamworkProcess focus supported by continuous

improvement and learning

…all supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques


Customer and Stakeholder Focus

Customer is principal judge of quality Organizations must first understand

customers’ needs and expectations in order to meet and exceed them

Organizations must build relationships with customers

Customers include employees and society at large


Key Idea

To meet or exceed customer expectations, organizations must fully understand all product and service attributes that contribute to customer value and lead to satisfaction and loyalty.


Participation and Teamwork

Employees know their jobs best and therefore, how to improve them

Management must develop the systems and procedures that foster participation and teamwork

Empowerment better serves customers, and creates trust and motivation

Teamwork and partnerships must exist both horizontally and vertically


Key Idea

In any organization, the person who best understands his or her job and how to improve both the product and the process is the one performing it.


Process Focus and Continuous Improvement

A process is how work creates value for customers

Processes transform inputs (facilities, materials, capital, equipment, people, and energy) into outputs (goods and services)

Most processes are cross-functional


Key Idea

A process is a sequence of activities that is intended to achieve some result


Continuous Improvement Enhancing value through new products

and services Reducing errors, defects, waste, and costs Increasing productivity and effectiveness Improving responsiveness and cycle time

performance


Key Idea

Major improvements in response time may require significant simplification of work processes and often drive simultaneous improvements in quality and productivity.


Deming’s View of aProduction System

Suppliers ofmaterials and equipment

Receipt and test of materials

Design and Redesign

Consumer research

ABCD

Production, assembly inspection

Tests of processes, machines, methods

Distribution

Consumers

INPUTS PROCESSES OUTPUTSFeedback


Learning

The foundation for improvement … Understanding why changes are successful through feedback between practices and results, which leads to new goals and approaches

Learning cycle: Planning Execution of plans Assessment of progress Revision of plans based on assessment findings


Infrastructure, Practices, and Tools

Leadership Strategic HRM Process Information and knowledgeLeadership Strategic HRM Process Information and knowledge Planning mgt. managementPlanning mgt. management

Performance TrainingPerformance Training appraisalappraisal

Trend chartTrend chartToolsTools

PracticesPractices

InfrastructureInfrastructure


TQ Infrastructure

Customer relationship management Leadership and strategic planning Human resources management Process management Information and knowledge management


Competitive AdvantageCompetitive Advantage

Is driven by customer wants and needs Makes significant contribution to business

success Matches organization’s unique resources with

opportunities Is durable and lasting Provides basis for further improvement Provides direction and motivation

Quality supports each of these characteristics


Quality and ProfitabilityQuality and Profitability

Improved quality of design

Higher perceived value

Increased market share

Higher prices

Increased revenues

Improved quality of conformance

Lower manufacturing and

service costs

Higher profitability


Key Idea

Considerable evidence exists that quality initiatives positively impact bottom-line results.


Quality and Business Results Studies

General Accounting Office study of Baldrige Award applicants

Hendricks and Singhal study of quality award winners

Performance results of Baldrige Award recipients


Key Idea

An organization that is committed to total quality must apply it at three levels: the organizational level, the process level, and the performer/job level.


Three Levels of Quality

Organizational level: meeting external customer requirements

Process level: linking external and internal customer requirements

Performer/job level: meeting internal customer requirements


Quality and Personal ValuesQuality and Personal Values Personal initiative has a positive impact on

business success Quality-focused individuals often exceed

customer expectations Quality begins with personal attitudes Attitudes can be changed through awareness and

effort (e.g., personal quality checklists) Unless quality is internalized at the personal

level, it will never become rooted in the culture of an organization. Thus, quality must begin at a personal level (and that means you!).


Key Idea

In the daily attempt to bring about change in the individual parts of the organizational universe, managers, employees, professors, and students can find that personal quality is the key to unlock the door to a wider understanding of what the concept really is all about.

chapter 1 introduction to quality ppt

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