Chapter 3 Total Quality Management - Total Quality in Organizations

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  • *Chapter 3Total Quality inOrganizations

    Dr. John V. PaduaThe Management & Control of Quality, 7e

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  • Learning Objectives*At the end of this session, the students are all expected to understand the following:

    The Systems and its importance Manufacturing Systems Quality in Different Areas Critical Quality Differences in Service and Manufacturing

  • Key IdeaAs consumer expectations have risen, a focus on quality has permeated other key sectors of the economy, most notably health care, education, not-for-profits, and government.*

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  • SystemsA system is a set of functions or activities within an organization that work together for the aim of the organization.Subsystems of an organization are linked together as internal customers and suppliers.A systems perspective acknowledges the importance of the interactions of subsystems, not the actions of them individually.

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  • *Manufacturing Systems (1 of 2)Marketing and salesProduct design and engineeringPurchasing and receivingProduction planning and schedulingManufacturing and assemblyTool engineering

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  • *Manufacturing Systems (2 of 2)Industrial engineering and process designFinished goods inspection and testPackaging, shipping, and warehousingInstallation and service

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  • Key IdeaTraditional quality assurance systems in manufacturing focus primarily on technical issues such as equipment reliability, inspection, defect measurement, and process control.*

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  • Quality in MarketingMarketing and sales personnel are responsible for determining the needs and expectations of consumers.*

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  • Quality in Product DesignProduct design and engineering functions develop technical specifications for products and production processes to meet the requirements determined by the marketing function.*

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  • Quality in PurchasingA purchasing agent should not simply be responsible for low-cost procurement, but should maintain a clear focus on the quality of purchased goods and materials.*

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  • Quality in Production Planning & SchedulingPoor quality often results from time pressures caused by insufficient planning and scheduling.*

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  • Quality in Manufacturingand AssemblyBoth technology and people are essential to high-quality manufacturing.*

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  • Quality in Process DesignManufacturing processes must be capable of producing output that meets specifications consistently.*

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  • Quality in Finished Goods Inspection and TestingThe purposes of final product inspection are to judge the quality of manufacturing, to discover and help to resolve production problems that may arise, and to ensure that no defective items reach the customer.*

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  • Quality in Installation and ServiceService after the sale is one of the most important factors in establishing customer perception of quality and customer loyalty.*

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  • *Quality in Business Support Functions for ManufacturingFinance and accountingQuality assuranceLegal services

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  • Key IdeaEvery manager is responsible for studying and improving the quality of the process for which he or she is responsible; thus, every manager is a quality manager.*

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  • *Quality in ServicesService is defined as any primary or complementary activity that does not directly produce a physical product that is, the non-goods part of the transaction between buyer (customer) and seller (provider).

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  • Key IdeaThe American Management Association estimates that the average company loses as many as 35 percent of its customers each year, and that about two-thirds of these are lost because of poor customer service.*

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  • *Critical Differences Between Service and Manufacturing (1 of 2)Customer needs and performance standards are more difficult to identify and measureServices requires a higher degree of customizationOutput is intangible

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  • Critical Differences Between Service and Manufacturing (2 of 2)Services are produced and consumed simultaneouslyCustomers are often involved in actual processServices are more labor-intensive than manufacturingServices handle large numbers of transactions

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