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Chapter 3Chapter 3
Total Quality inTotal Quality inOrganizationsOrganizations
Dr. John V. PaduaDr. John V. Padua
The Management & Control of Quality, 7e
Learning ObjectivesLearning Objectives
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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 IdeaKey Idea
As 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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SystemsSystems A A systemsystem is a set of functions or activities is a set of functions or activities
within an organization that work together within an organization that work together for the aim of the organization.for the aim of the organization.
Subsystems of an organization are linked Subsystems of an organization are linked together as internal customers and together as internal customers and suppliers.suppliers.
A systems perspective acknowledges the A systems perspective acknowledges the importance of the interactions of importance of the interactions of subsystems, not the actions of them subsystems, not the actions of them individually.individually.
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Manufacturing Systems Manufacturing Systems (1 (1 of 2)of 2)
Marketing and salesMarketing and sales Product design and engineeringProduct design and engineering Purchasing and receivingPurchasing and receiving Production planning and Production planning and
schedulingscheduling Manufacturing and assemblyManufacturing and assembly Tool engineeringTool engineering
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Manufacturing Systems Manufacturing Systems (2 (2 of 2)of 2)
Industrial engineering and Industrial engineering and process designprocess design
Finished goods inspection and Finished goods inspection and testtest
Packaging, shipping, and Packaging, shipping, and warehousingwarehousing
Installation and serviceInstallation and service
Key IdeaKey Idea
Traditional 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 MarketingQuality in Marketing
Marketing and sales personnel are responsible for determining the needs and expectations of consumers.
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Quality in Product Quality in Product DesignDesign
Product 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 PurchasingQuality in Purchasing
A 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 Quality in Production Planning & SchedulingPlanning & Scheduling
Poor quality often results from time pressures caused by insufficient planning and scheduling.
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Quality in ManufacturingQuality in Manufacturingand Assemblyand Assembly
Both technology and people are essential to high-quality manufacturing.
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Quality in Process Quality in Process DesignDesign
Manufacturing processes must be capable of producing output that meets specifications consistently.
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Quality in Finished Goods Quality in Finished Goods Inspection and TestingInspection and Testing
The 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 Quality in Installation and Serviceand Service
Service 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 Quality in Business Support Functions for Support Functions for ManufacturingManufacturing Finance and accountingFinance and accounting Quality assuranceQuality assurance Legal servicesLegal services
Key IdeaKey Idea
Every 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 ServicesQuality in Services
ServiceService is defined as “any is defined as “any primary or complementary primary or complementary activity that does not directly activity that does not directly produce a physical product – that produce a physical product – that is, the non-goods part of the is, the non-goods part of the transaction between buyer transaction between buyer (customer) and seller (provider).”(customer) and seller (provider).”
Key IdeaKey Idea
The 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 Critical Differences Between Service and Manufacturing Service and Manufacturing (1 (1 of 2)of 2)
Customer needs and Customer needs and performance standards are performance standards are more difficult to identify and more difficult to identify and measuremeasure
Services requires a higher Services requires a higher degree of customizationdegree of customization
Output is intangibleOutput is intangible
Critical Differences Between Critical Differences Between Service and Manufacturing Service and Manufacturing (2 (2 of 2)of 2)
Services are produced and Services are produced and consumed simultaneouslyconsumed simultaneously
Customers are often involved in Customers are often involved in actual processactual process
Services are more labor-intensive Services are more labor-intensive than manufacturingthan manufacturing
Services handle large numbers of Services handle large numbers of transactionstransactions
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