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  • Slide 1
  • Total Quality Management CII Institute of Logistics Total Quality Management
  • Slide 2
  • 3-2 Meaning of Quality: Consumers Perspective Fitness for use how well product or service does what it is supposed to Quality of design designing quality characteristics into a product or service A Mercedes and a Ford are equally fit for use, but with different design dimensions CII Institute of Logistics Total Quality Management
  • Slide 3
  • Dimensions of Quality: Manufactured Products Performance basic operating characteristics of a product; how well a car is handled or its gas mileage Features extra items added to basic features, such as a stereo CD or a leather interior in a car Reliability probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years CII Institute of Logistics Total Quality Management
  • Slide 4
  • Conformance degree to which a product meets preestablished standards Durability how long product lasts before replacement Serviceability ease of getting repairs, speed of repairs, courtesy and competence of repair person Dimensions of Quality: Manufactured Products (cont.) CII Institute of Logistics Total Quality Management
  • Slide 5
  • Aesthetics how a product looks, feels, sounds, smells, or tastes Safety assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles Perceptions subjective perceptions based on brand name, advertising, and the like Dimensions of Quality: Manufactured Products (cont.) CII Institute of Logistics Total Quality Management
  • Slide 6
  • Dimensions of Quality: Service Time and Timeliness How long must a customer wait for service, and is it completed on time? Is an overnight package delivered overnight? Completeness: Is everything customer asked for provided? Is a mail order from a catalogue company complete when delivered? CII Institute of Logistics Total Quality Management
  • Slide 7
  • Dimensions of Quality: Service (cont.) Courtesy: How are customers treated by employees? Are catalogue phone operators nice and are their voices pleasant? Consistency Is the same level of service provided to each customer each time? Is your newspaper delivered on time every morning? CII Institute of Logistics Total Quality Management
  • Slide 8
  • Accessibility and convenience How easy is it to obtain service? Does a service representative answer you calls quickly? Accuracy Is the service performed right every time? Is your bank or credit card statement correct every month? Responsiveness How well does the company react to unusual situations? How well is a telephone operator able to respond to a customers questions? Dimensions of Quality: Service (cont.) CII Institute of Logistics Total Quality Management
  • Slide 9
  • Meaning of Quality: Producers Perspective Quality of Conformance Making sure a product or service is produced according to design if new tires do not conform to specifications, they wobble if a hotel room is not clean when a guest checks in, the hotel is not functioning according to specifications of its design CII Institute of Logistics Total Quality Management
  • Slide 10
  • Meaning of Quality: A Final Perspective Consumers and producers perspectives depend on each other Consumers perspective: PRICE Producers perspective: COST Consumers view must dominate CII Institute of Logistics Total Quality Management
  • Slide 11
  • Fitness for Consumer Use Fitness for Consumer Use Producers Perspective Consumers Perspective Quality of Conformance Conformance to specifications Cost Quality of Design Quality characteristics Price Marketing Production Meaning of Quality CII Institute of Logistics Total Quality Management
  • Slide 12
  • Why TQM? Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition. CII Institute of Logistics Total Quality Management
  • Slide 13
  • TQM: A Buzzword Losing Popularity For many companies, the term TQM is associated with corporate programs (mid 1980s ~ early 1990s) aimed at implementing employee teams and statistical process control. Unfortunately, many companies were dissatisfied with the perceived results of these programs, concluding TQM does not work. Question: Why were they dissatisfied? Were they justified? CII Institute of Logistics Total Quality Management
  • Slide 14
  • Total Quality Management TQM Total - made up of the whole Quality - degree of excellence a product or service provides Management - act, art or manner of planning, controlling, directing,. Therefore, TQM is the art of managing the whole to achieve excellence Therefore, TQM is the art of managing the whole to achieve excellence.
  • Slide 15
  • What does TQM mean? Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services. CII Institute of Logistics Total Quality Management
  • Slide 16
  • Whats the goal of TQM? Do the right things right the first time, every time.
  • Slide 17
  • Another way to put it At its simplest, TQM is all managers leading and facilitating all contributors in everyones two main objectives: 4(1) total client satisfaction through quality products and services; and processes, systems, people, suppliers, partners, products, and services. 4(2) continuous improvements to processes, systems, people, suppliers, partners, products, and services. CII Institute of Logistics Total Quality Management
  • Slide 18
  • Productivity and TQM Traditional view: Quality cannot be improved without significant losses in productivity. TQM view: Improved quality leads to improved productivity. CII Institute of Logistics Total Quality Management
  • Slide 19
  • Basic Tenets of TQM 1. The customer makes the ultimate determination of quality. 2. Top management must provide leadership and support for all quality initiatives. 3. Preventing variability is the key to producing high quality. 4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions. CII Institute of Logistics Total Quality Management
  • Slide 20
  • The three aspects of TQM Counting Customers Culture Counting Customers Culture Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Quality for the customer as a driving force and central concern. Shared values and beliefs, expressed by leaders, that define and support quality. CII Institute of Logistics Total Quality Management
  • Slide 21
  • Total Quality Management Total Quality Management and Continuous Improvement TQM is the management process used to make continuous improvements to all functions. TQM represents an ongoing, continuous commitment to improvement. The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.
  • Slide 22
  • Continuous Improvement versus Traditional Approach Market-share focus Individuals Focus on who and why Short-term focus Status quo focus Product focus Innovation Fire fighting Customer focus Cross-functional teams Focus on what and how Long-term focus Continuous improvement Process improvement focus Incremental improvements Problem solving Traditional Approach Continuous Improvement CII Institute of Logistics Total Quality Management
  • Slide 23
  • Quality Throughout A Customers impression of quality begins with the initial contact with the company and continues through the life of the product. Customers look to the total package - sales, service during the sale, packaging, deliver, and service after the sale. Quality extends to how the receptionist answers the phone, how managers treat subordinates, how courteous sales and repair people are, and how the product is serviced after the sale. All departments of the company must strive to improve the quality of their operations. CII Institute of Logistics Total Quality Management
  • Slide 24
  • Value-based Approach Manufacturing Dimensions Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality Service Dimensions Reliability Responsiveness Assurance Empathy Tangibles CII Institute of Logistics Total Quality Management
  • Slide 25
  • The TQM System Customer Focus Process Improvement Total Involvement Leadership Education and Training Supportive structure Communications Reward and recognition Measurement Continuous Improvement Objective Principles Elements CII Institute of Logistics Total Quality Management
  • Slide 26
  • Total Quality Management Commitment to quality throughout organization Principles of TQM Customer-oriented Customer-oriented Leadership Leadership Strategic planning Strategic planni

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