Copyright © Houghton Mifflin Company. All rights reserved. 17-1 Organizational Control and Quality Improvement Chapter 17

Download Copyright © Houghton Mifflin Company. All rights reserved. 17-1 Organizational Control and Quality Improvement Chapter 17

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<ul><li> Slide 1 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-1 Organizational Control and Quality Improvement Chapter 17 </li> <li> Slide 2 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-2 Chapter Outline Fundamentals of Organizational Control u Types of Control u Components of Organizational Control Systems u Strategic Control u Identifying Control Problems </li> <li> Slide 3 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-3 Chapter Outline (continued) Crisis Management u Crisis Management Defined u Developing a Crisis Management Program </li> <li> Slide 4 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-4 Chapter Outline (continued) The Quality Challenge u Defining Quality u Five Types of Product Quality u Unique Challenges for Service Providers u Defining Service Quality </li> <li> Slide 5 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-5 Chapter Outline (continued) An Introduction to Total Quality Management (TQM) u Do It Right the First Time u Be Customer-Centered u Make Continuous Improvement a Way of Life u Build Teamwork and Empowerment u The Seven Basic TQM Process Improvement Tools </li> <li> Slide 6 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-6 Chapter Outline (continued) Deming Management u Principles of Deming Management u Deming's Fourteen Points </li> <li> Slide 7 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-7 ORGANIZATIONAL CONTROL Control: the process of taking the necessary preventive or corrective actions to ensure that the organizations mission and objectives are accomplished as effectively and efficiently as possible. </li> <li> Slide 8 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-8 ORGANIZATIONAL CONTROL (continued) Figure 17.1 Types of Control u Feedforward control: active anticipation and prevention of problems, rather than passive reaction. u Concurrent control: involves monitoring and adjusting ongoing activities and processes to ensure compliance with standards. u Feedback control: gathering information about a completed activity, evaluating that information, and taking steps to improve similar activities in the future. </li> <li> Slide 9 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-9 ORGANIZATIONAL CONTROL (continued) Team Exercise: Choose a common activitylike taking a shower, preparing dinner, taking a vacation, or going out on a special dateand explain how feedforward, concurrent, and feedback control could make the activity a success. </li> <li> Slide 10 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-10 COMPONENTS OF ORGANIZATIONAL CONTROL SYSTEMS 1.Objectives (What do we want to accomplish?) 2.Standards (What guidelines and standards do we need to follow?) 3.An evaluation-reward system (How will our results be measured and how will we be rewarded?) </li> <li> Slide 11 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-11 IDENTIFYING CONTROL PROBLEMS Executive reality check: top-level managers periodically work in the trenches to increase their awareness of operations. Internal auditing: independent appraisal of organizational operations and systems to assess effectiveness and efficiency. </li> <li> Slide 12 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-12 IDENTIFYING CONTROL PROBLEMS (continued) For Discussion: Why are executive reality checks particularly important today? </li> <li> Slide 13 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-13 CRISIS MANAGEMENT Crisis management: systematic anticipation of and preparation for internal and external problems that seriously threaten an organizations reputation, profitability, or survival. </li> <li> Slide 14 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-14 DEVELOPING A CRISIS MANAGEMENT PROGRAM Figure 17.3 u Conduct a crisis audit. u Formulate contingency plans. u Create a crisis management team. u Perfect the program through practice. </li> <li> Slide 15 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-15 THE QUALITY CHALLENGE Philip Crosbys Definition of Quality: conformance to requirements. </li> <li> Slide 16 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-16 THE QUALITY CHALLENGE (continued) Five Types of Product Quality u Transcendent quality (Inherent excellence) u Product-based quality (Product attributes) u User-based quality (Meet user's expectations) u Manufacturing-based quality (Matching design specifications) u Value-based quality (Perceived cost-benefit relationship) </li> <li> Slide 17 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-17 THE QUALITY CHALLENGE (continued) For Discussion: Thinking of a major purchase you made in the last year, which type(s) of product quality drove your purchase decision? </li> <li> Slide 18 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-18 UNIQUE CHALLENGES FOR SERVICE PROVIDERS 1.Customers participate directly in the production process. 2.Services are consumed immediately and cannot be stored. 3.Services are provided where and when the customer desires. 4.Services tend to be labor-intensive. 5.Services are intangible. </li> <li> Slide 19 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-19 UNIQUE CHALLENGES FOR SERVICE PROVIDERS (continued) For Discussion: 1.Drawing upon your own experience in service jobs, what is most difficult about serving the public? 2.Which of the above service challenges makes providing high-quality services most difficult today? </li> <li> Slide 20 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-20 DEFINING SERVICE QUALITY (The Texas A&amp;M Study) Dimensions of Service Quality (RATER) 1.Reliability: ability to perform the desired service dependably, accurately, and consistently. 2.Assurance: employees knowledge, courtesy, and ability to convey trust and confidence. 3.Tangibles: physical facilities, equipment, appearance of personnel. 4.Empathy: provision of caring, individualized attention to customers. 5.Responsiveness: willingness to provide prompt service and help customers. </li> <li> Slide 21 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-21 DEFINING SERVICE QUALITY (The Texas A&amp;M Study) (continued) "In the Texas A&amp;M study, reliability was the most important dimension of service quality, regardless of the type of service involved." </li> <li> Slide 22 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-22 DEFINING SERVICE QUALITY (The Texas A&amp;M Study) Table 17.2 u For Discussion: How do you rate the overall quality of the services you are paying for today? Which of these service dimensions seems to be the number one problem? How can service providers avoid that problem? </li> <li> Slide 23 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-23 TOTAL QUALITY MANAGEMENT (TQM) u Total quality management: creating an organizational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality, and customer satisfaction. </li> <li> Slide 24 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-24 TOTAL QUALITY MANAGEMENT (TQM) (continued) Richard Schonberger: TQM is "continuous, customer-centered, employee-driven improvement." </li> <li> Slide 25 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-25 TOTAL QUALITY MANAGEMENT (TQM) (continued) Principles of TQM 1. Do it right the first time. 2. Be customer-centered. Internal customer: anyone in your organization who cannot do a good job unless you do a good job. Customer-centered: means (1) anticipating the customer's needs, (2) listening to the customer, (3) learning how to satisfy the customer, and (4) responding appropriately to the customer. </li> <li> Slide 26 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-26 PRINCIPLES OF TQM (continued) 3. Make continuous improvement a way of life. Kaizen: a Japanese word meaning continuous improvement 4. Build teamwork and empowerment. </li> <li> Slide 27 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-27 TOTAL QUALITY MANAGEMENT (TQM) (continued) For Discussion: Why is a "three-out-of- four" approach to TQM a recipe for failure today? </li> <li> Slide 28 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-28 HOW TO IMPLEMENT CONTINUOUS IMPROVEMENT u Improved and more consistent product and service quality. u Faster cycle times (e.g., product development, order processing, payroll processing). u Greater flexibility (e.g., faster response to changing customer demands and new technology). u Lower costs and less waste (e.g., eliminating needless steps, scrap, rework, and non-value-adding activities). </li> <li> Slide 29 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-29 HOW TO IMPLEMENT CONTINUOUS IMPROVEMENT (continued) For Discussion: How can you integrate the philosophy of "continuous improvement" into all aspects of your life? </li> <li> Slide 30 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-30 TQM TOOLS Figure 17.4 Basic TQM Process Improvement Tools 1. Flow chart: graphic display of a sequence of activities and decisions. 2. Cause-and-effect analysis u Fishbone diagram: a tool for visualizing cause-and- effect relationships. 3. Pareto analysis: bar chart indicating which problem needs the most attention (80-20 principle). </li> <li> Slide 31 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-31 TQM TOOLS (continued) 4. Control chart: visual aid showing acceptable and unacceptable variations from the norm for repetitive operations. 5. Histogram: bar chart indicating deviations from a standard bell-shaped curve. 6. Scatter diagram: diagram that plots relationships between two variables. 7. Run chart: a trend chart for tracking a variable over time. </li> <li> Slide 32 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-32 DEMING MANAGEMENT Deming management: application of W. Edwards Deming's ideas for more responsive, more democratic, and less wasteful organizations. </li> <li> Slide 33 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-33 DEMING MANAGEMENT (continued) Principles of Deming Management u Quality improvement drives the entire economy u The customer always comes first. u Don't blame the person, fix the system. u Plan-do-check-act (Figure 17.6) </li> <li> Slide 34 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-34 DEMING MANAGEMENT (continued) For Discussion: 1. Why is product/service quality a general quality of life issue today? 2. As an employee, how many times have you been blamed when the system actually prevented you from doing a good job? Explain the circumstances and what management should have done differently. </li> <li> Slide 35 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-35 DEMING'S FOURTEEN POINTS 1. Constant purpose. 2. New philosophy. 3. Give up on quality by inspection. 4. Avoid the constant search for lowest-cost suppliers. 5. Seek continuous improvement. </li> <li> Slide 36 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-36 DEMING'S FOURTEEN POINTS (continued) 6. Train everyone. 7. Provide real leadership. 8. Drive fear out of the workplace. 9. Promote teamwork. 10. Avoid slogans and targets. </li> <li> Slide 37 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-37 DEMING'S FOURTEEN POINTS (continued) 11. Get rid of numerical quotas. 12. Remove barriers that stifle pride in workmanship. 13. Education and self-improvement are key. 14. "The transformation is everyone's job." </li> <li> Slide 38 </li> <li> Copyright Houghton Mifflin Company. All rights reserved. 17-38 DEMING'S FOURTEEN POINTS (continued) For Discussion: Generally speaking, how well are today's organizations doing relative to Deming's fourteen points? What needs to be done? </li> </ul>

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