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Page 1Prof. Rushen Chahal

Prof. Rushen ChahalProf. Rushen Chahal

Total Quality in Organizations

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Page 2Prof. Rushen Chahal

Growth of Modern

Quality Management

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Manufacturingquality

Improved

product designs

Servicequality

Performance

excellence

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Page 3Prof. Rushen Chahal

Systems Thinking

A system is the functions or activitieswithin an organization that worktogether for the aim of the organization.

Subsystems of an organization arelinked together as internal customersand suppliers.

A systems perspective acknowledgesthe importance of the interactions of subsystems, not the actions of themindividually.

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Page 4Prof. Rushen Chahal

Manufacturing Systems (1 of 2)

Marketing and sales

Product design and engineering

Purchasing and receiving

Production planning and scheduling

Manufacturing and assembly Tool engineering

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Page 5Prof. Rushen Chahal

Manufacturing Systems (2 of 2)

Industrial engineering and process

design Finished goods inspection and test

Packaging, shipping, and

warehousing Installation and service

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Page 6Prof. Rushen Chahal

Quality in Business Support

Functions for Manufacturing

General management

Finance and accounting

Human resource management

Quality assurance

Legal services

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Page 7Prof. Rushen Chahal

Quality in Services Service is defined as ³any 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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Page 8Prof. Rushen Chahal

Critical Differences between

Service and Manufacturing (1 of 2)

Customer needs and performance

standards are more difficult to identify

and measure

Services requires a higher degree of 

customization

Output is intangible

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Page 9Prof. Rushen Chahal

Critical Differences between Service

and Manufacturing (2 of 2)

Services are produced and consumed

simultaneously

Customers are often involved in actual

process

Services are more labor-intensive than

manufacturing

Services handle large numbers of 

transactions

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Page 10Prof. Rushen Chahal

Components of Service

System Quality

Employees

Information technology

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Page 11Prof. Rushen Chahal

The Ritz-Carlton Hotel Co.

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Page 12Prof. Rushen Chahal

Quality in Health Care

Joint Commission on Accreditation of 

Healthcare Organizations (JCAHO)

National Committee for Quality Assurance(NCQA)

Institute for Healthcare Improvement (IHI)

1999 expansion of the Baldrige Award tononprofit health care organizations

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Page 13Prof. Rushen Chahal

Quality Issues in Health Care

Avoidable errors

Underutilization of services

Overuse of services

Variation in services

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Page 14Prof. Rushen Chahal

Quality in Education

Koalaty Kid program

1999 expansion of the Baldrige

 Award to nonprofit educationorganizations

Success stories

 ±Mt. Edgecumbe High School ±Brazosport ISD

 ±Hunderton Central Regional HS

 ±Pinellas County Schools14

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Page 15Prof. Rushen Chahal

Higher Education

as a Production System

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Design and

RedesignConsumer 

research

Suppliers:families, high

schools, colleges,

business

Customers:business, families,

society, students

Inputs:

studentsfaculty

Processes

Teaching, counseling,

scientific research

Outputs:

able studentsnew knowledge

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Page 16Prof. Rushen Chahal

Quality in the Public Sector 

Quality in the FederalGovernment

State and Local Quality Efforts

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