Chapter 2 Total Quality in ORGANIZATION Uploaded Ppt

7/31/2019 Chapter 2 Total Quality in ORGANIZATION Uploaded Ppt

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MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing 2

Growth of Modern QualityManagement

Manufacturingquality

Improvedproduct designs

Servicequality

Performance

excellence


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Key Idea

As consumer expectations have risen, afocus on quality has permeated other key

sectors of the economy, most notablyhealth care, education, not-for-profits,and government.


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Systems Thinking

A system is a set of functions or activitieswithin an organization that work together forthe aim of the organization.

Subsystems of an organization are linkedtogether as internal customers andsuppliers.

A systems perspective acknowledges the

importance of the interactions ofsubsystems, not the actions of themindividually.


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Key Idea

Successful management relies on asystems perspective, one of the most

important elements of total quality.


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Manufacturing Systems (1 of 2)

Marketing and sales

Product design and engineering

Purchasing and receivingProduction planning and scheduling

Manufacturing and assembly

Tool engineering


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Manufacturing Systems (2 of 2)

Industrial engineering and processdesign

Finished goods inspection and test

Packaging, shipping, and

warehousing

Installation and service



Key Idea

Traditional quality assurance systems inmanufacturing focus primarily on technical

issues such as equipment reliability,inspection, defect measurement, andprocess control.


9/38MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008 Thomson Higher Education Publishing9

Relationships in a TypicalManufacturing System (Fig.2.1)



Quality in Marketing

Marketing and sales personnel areresponsible for determining the needs

and expectations of consumers.



Quality in Product

Design

Product design and engineering functions

develop technical specifications forproducts and production processes tomeet the requirements determined by themarketing function.



Quality in Purchasing

A purchasing agent should not simply beresponsible for low-cost procurement, but

should maintain a clear focus on thequality of purchased goods and materials.



Quality in ProductionPlanning & Scheduling

Poor quality often results from time

pressures caused by insufficient planningand scheduling.



Quality in Manufacturingand Assembly

Both technology and people are essential

to high-quality manufacturing.


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Quality in ProductionPlanning & Scheduling

Poor quality often results from time

pressures caused by insufficient planningand scheduling.


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Quality in ProcessDesign

Manufacturing processes must be

capable of producing output that meetsspecifications consistently.


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Quality in Finished GoodsInspection and Testing

The purposes of final product inspection

are to judge the quality of manufacturing,to discover and help to resolve productionproblems that may arise, and to ensurethat no defective items reach the customer.


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Quality in Installation andService

Service after the sale is one of the mostimportant factors in establishing customerperception of quality and customerloyalty.


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Quality in Business SupportFunctions for Manufacturing

Finance and accounting

Quality assuranceLegal services


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Key Idea

Every manager is responsible forstudying and improving the quality of the

process for which he or she isresponsible; thus, every manager is aquality manager.


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Quality in Services

Serviceis defined as any primary or

complementary activity that does not

directly produce a physical product thatis, the non-goods part of the transactionbetween buyer (customer) and seller(provider).


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Key Idea

The American Management Associationestimates that the average company

loses as many as 35 percent of itscustomers each year, and that about two-thirds of these are lost because of poorcustomer service.


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Critical Differences BetweenService and Manufacturing (1 of 2)

Customer needs and performancestandards are more difficult to identify

and measureServices requires a higher degree of

customization

Output is intangible


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Critical Differences BetweenService and Manufacturing (2 of 2)

Services are produced and consumedsimultaneously

Customers are often involved in actualprocess

Services are more labor-intensive than

manufacturingServices handle large numbers of

transactions


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Key Idea

These differences make it difficult formany service organizations to apply total

quality principles, and foster misguidedperceptions that quality managementcannot be effectively accomplished in

services.


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Components of ServiceSystem Quality

Employees

Information technology


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Key Idea

Researchers have repeatedlydemonstrated that when service employee

job satisfaction is high, customersatisfaction is high, and that when jobsatisfaction is low, customer satisfaction is

low.


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Key Idea

Information technology is essential forquality in modern service organizations

because of the high volumes of informationthey must process and because customersdemand service at ever-increasing speeds.


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Quality in Health Care

Joint Commission on Accreditation ofHealthcare Organizations (JCAHO)

National Committee for Quality

Assurance (NCQA) Institute for Healthcare Improvement

(IHI)

1999 expansion of the Baldrige Awardto nonprofit health care organizations


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Quality Issues in Health Care

Avoidable errors

Underutilization of services

Overuse of servicesVariation in services


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Key Idea

Although the national health care systemas a whole may need a sweeping

overhaul, many individual providers haveturned toward quality as a means ofachieving better performance and

customer satisfaction.


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Quality in Education

Koalaty Kid

Active involvement of whole school

community

Committed leadership

System for continuous improvement

Environment that celebrates success


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Quality in Higher Education

Business plays an important role infostering quality improvement efforts in

higher education by transferringknowledge and expertise on qualityprocesses and implementation practices.


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Academic Quality

Improvement Project (AQIP)AQIP criteria focuses on institutional practices forhelping students learn, accomplishing other

distinct objectives, understanding student andstakeholder needs, valuing people, leading andcommunicating, supporting institutionaloperations, measuring effectiveness, planning

continuous improvement, and buildingcollaborative relationshipsall of which are keyelements of TQ.

Q lit i S ll B i d


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Quality in Small Business andNot-for-Profits

Slow to adopt quality approaches

General lack of understanding andknowledge about quality

Focus on sales and market growth, cashflow, and routine fire fighting

Lack of resources for formal quality

systems


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Key Idea

Perhaps the most important factor insuccessful quality initiatives in small

businesses is the recognition by the CEOor president that a quality focus can bebeneficial and lead to achieving

organizational goals.


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Quality in the Public Sector

Quality in the Federal Government

Federal Quality Institute

Presidents Quality Award

State and Local Quality Efforts


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Key Idea

Quality concepts and principles areuniversal and can be applied in all types

of organizations. The difficulty, ofcourse, is developing an infrastructureto make it happen and the discipline to

sustain efforts over time.

Chapter 2 Total Quality in ORGANIZATION Uploaded Ppt

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