Transcript
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 1
Chapter 1Chapter 1
Introduction to
Quality
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Modern Importance of QualityModern Importance of Quality
“The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.”
- William Cooper Procter
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Key Idea
Building—and maintaining—quality into an organization’s goods and services, and more importantly, into the infrastructure of the organization itself, is not an easy task.
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Quality Assurance
...is any action directed toward providing customers with goods and services of appropriate quality.
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History of Quality Assurance (1 of 3)
History of Quality Assurance (1 of 3)
Skilled craftsmanship during Middle Ages Industrial Revolution: rise of inspection
and separate quality departmentsEarly 20th Century: statistical methods at
Bell SystemQuality control during World War IIPost-war Japan: evolution of quality
management
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History of Quality Assurance (2 of 3)
History of Quality Assurance (2 of 3)
Quality awareness in U.S. manufacturing industry during 1980s: from “Little Q” to “Big Q” - Total Quality Management
Malcolm Baldrige National Quality Award (1987)
Disappointments and criticism
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Key Idea
Although quality initiatives can lead to business success, they cannot guarantee it, and one must not infer that business failures or stock price dives are the result of poor quality.
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History of Quality Assurance (3 of 3)
History of Quality Assurance (3 of 3)
Emergence of quality management in service industries, government, health care, and education
Evolution of quality to performance excellence Growth and adoption of Six Sigma Current and future challenge: continue to apply
the principles of quality and performance excellence. Quality is “a race without a finish line.”
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Contemporary Influences on QualityGlobalization Innovation/creativity/changeOutsourcingConsumer sophisticationValue creationChanges in quality
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Defining Quality
Perfection
ConsistencyEliminating waste
Fast delivery
Compliance with policies and procedures
Providing a good, usable product
Doing it right the first time
Delighting or pleasing customers
Total customer service and satisfaction
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Formal Definitions of QualityFormal Definitions of Quality
Transcendent definition: excellence Product-based definition: quantities of
product attributes User-based definition: fitness for intended
use Value-based definition: quality vs. price Manufacturing-based definition:
conformance to specifications
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Quality PerspectivesQuality Perspectives
CustomerCustomer
DistributionDistribution
productsproducts and and servicesservices
needsneeds
transcendent &transcendent &product-basedproduct-based user-baseduser-based
manufacturing-manufacturing- basedbased
value-basedvalue-based
MarketingMarketing
DesignDesign
ManufacturingManufacturing
Information flowInformation flow
Product flowProduct flow
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Key Idea
Because individuals in different business functions speak different “languages,” the need for different views of what constitutes quality at different points inside and outside an organization is necessary to create products of true quality that will satisfy customers’ needs.
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Customer-Driven QualityCustomer-Driven Quality
“Meeting or exceeding customer expectations”
Customers can be... Consumers External customers Internal customers
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Total Quality People-focused management system Focus on increasing customer satisfaction
and reducing costs A systems approach that integrates
organizational functions and the entire supply chain
Stresses learning and adaptation to change
Based on the scientific method
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Principles of Total Quality
Customer and stakeholder focusParticipation and teamworkProcess focus supported by continuous
improvement and learning
…all supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques
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Customer and Stakeholder Focus
Customer is principal judge of quality Organizations must first understand
customers’ needs and expectations in order to meet and exceed them
Organizations must build relationships with customers
Customers include employees and society at large
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Key Idea
To meet or exceed customer expectations, organizations must fully understand all product and service attributes that contribute to customer value and lead to satisfaction and loyalty.
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Participation and Teamwork
Employees know their jobs best and therefore, how to improve them
Management must develop the systems and procedures that foster participation and teamwork
Empowerment better serves customers, and creates trust and motivation
Teamwork and partnerships must exist both horizontally and vertically
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Key Idea
In any organization, the person who best understands his or her job and how to improve both the product and the process is the one performing it.
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Process Focus and Continuous Improvement
A process is how work creates value for customers
Processes transform inputs (facilities, materials, capital, equipment, people, and energy) into outputs (goods and services)
Most processes are cross-functional
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Key Idea
A process is a sequence of activities that is intended to achieve some result
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Continuous Improvement Enhancing value through new products
and services Reducing errors, defects, waste, and costs Increasing productivity and effectiveness Improving responsiveness and cycle time
performance
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Key Idea
Major improvements in response time may require significant simplification of work processes and often drive simultaneous improvements in quality and productivity.
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Deming’s View of aProduction System
Suppliers ofmaterials and equipment
Receipt and test of materials
Design and Redesign
Consumer research
ABCD
Production, assembly inspection
Tests of processes, machines, methods
Distribution
Consumers
INPUTS PROCESSES OUTPUTSFeedback
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Learning
The foundation for improvement … Understanding why changes are successful through feedback between practices and results, which leads to new goals and approaches
Learning cycle: Planning Execution of plans Assessment of progress Revision of plans based on assessment findings
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Infrastructure, Practices, and Tools
Leadership Strategic HRM Process Information and knowledgeLeadership Strategic HRM Process Information and knowledge Planning mgt. managementPlanning mgt. management
Performance TrainingPerformance Training appraisalappraisal
Trend chartTrend chartToolsTools
PracticesPractices
InfrastructureInfrastructure
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TQ Infrastructure
Customer relationship management Leadership and strategic planning Human resources management Process management Information and knowledge management
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Competitive AdvantageCompetitive Advantage
Is driven by customer wants and needs Makes significant contribution to business
success Matches organization’s unique resources with
opportunities Is durable and lasting Provides basis for further improvement Provides direction and motivation
Quality supports each of these characteristics
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Quality and ProfitabilityQuality and Profitability
Improved quality of design
Higher perceived value
Increased market share
Higher prices
Increased revenues
Improved quality of conformance
Lower manufacturing and
service costs
Higher profitability
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Key Idea
Considerable evidence exists that quality initiatives positively impact bottom-line results.
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Quality and Business Results Studies
General Accounting Office study of Baldrige Award applicants
Hendricks and Singhal study of quality award winners
Performance results of Baldrige Award recipients
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Key Idea
An organization that is committed to total quality must apply it at three levels: the organizational level, the process level, and the performer/job level.
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Three Levels of Quality
Organizational level: meeting external customer requirements
Process level: linking external and internal customer requirements
Performer/job level: meeting internal customer requirements
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Quality and Personal ValuesQuality and Personal Values Personal initiative has a positive impact on
business success Quality-focused individuals often exceed
customer expectations Quality begins with personal attitudes Attitudes can be changed through awareness and
effort (e.g., personal quality checklists) Unless quality is internalized at the personal
level, it will never become rooted in the culture of an organization. Thus, quality must begin at a personal level (and that means you!).
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Key Idea
In the daily attempt to bring about change in the individual parts of the organizational universe, managers, employees, professors, and students can find that personal quality is the key to unlock the door to a wider understanding of what the concept really is all about.
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