TQM[1]

1

TotaTotall QualitQualityy ManagementManagement

Steps Towards ContinuousImprovement

E.H. Aghezzaf- Vakgroep Technische 1Bedrijfsvoering (TW18V)

TotaTotall QualitQualityy ManagementManagement

• Total Quality Management is a comprehensive managerial philosophy and a collection of approaches and tools for its implementation.

• The term Total Quality Management conveys de company-wide effort through full involvement of the entire workforce and focus on continuous improvement that companies use to achieve customer satisfaction.


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GoalGoalss ooff TQMTQM

• Satisfy the requirements and needs of customers.

• Prevent poor quality rather than correcting problems after fact.

• Develop an attitude of continuous improvementin operations.

• Understand the value of measuring performance in identifying opportunities and maintaining improvements.

• Identify and eliminate chronic sources of inefficiencies and costs.


FoundationFoundationss ooff TQM,TQM, ththee PrinciplesPrinciples

• Customer Focus:– Involves collection and analysis of customer needs, and

once understood and accepted these must be met.

• Continuous Improvement:– Involves work on the process to reduce the variability of

output and improve the reliability of the process.

• Total Involvement (Participation & Teamwork):– Begins with leadership of senior management, then

employees empowerment, and includes suppliers.


Insp

ect

Insp

ect

3

FoundationFoundationss ooff TQM,TQM, InfrastructuresInfrastructures,, PracticesPractices,, andand

ToolsTools• An integrated organizational infrastructure,• A set of management practices,• A wide variety of tools and techniques:

– Leadership,– Strategic Planning,– Data and Information Management,– Process Management,– Supplier Management,– Human Resources Management,


TowardTowardss aann IntegratedIntegratedProductioProductionn SystemSystem

Traditional Method

Product ManagementModern Method

Process Management

Suppliers Customers Suppliers Customers

input Work Process output inputWork

Processinput

Waste Waste

PeopleInformation Information

Processes

Quality assured through inspection:• Inspect incoming materials,• Inspect outgoing products,• Quality is the responsibility of QA

department,

Quality designed through prevention:

• Integrated customer-supplier chain,

• Improve quality through the system,

• Quality is responsibility of everyone,


MeasuremenMeasurementt DimensionsDimensionsIf this is … then this who … and these

your focus... you need to please are key Measures

• Customer Customers• Customer satisfaction,

• Output characteristics defined by customers,

• ShareholderBosses

Owners

Financial Analysts

• Financial indicators,– Cost, sales, and profits

– Cost of quality

• Goals and objectives defined by management ,

• Employee Employees

• Employee satisfaction,

• Factors contributing to job satisfaction,

• CommunityGovernment agents

Social services

• Regulatory compliance,

• Factors impacting on society,


ThThee TQTQMM SystemSystemTQM

Continuous Improvement

CustomerFocus

ProcessImprovement

TotalInvolvement

LeadershipEducation and Training Supportive StructuresRewards and recognition Communication

Measurement




CustomerFocus

ProcessImprovement

TotalInvolvement


Measurement


CustomeCustomerr FocuFocuss --Leading Practices--

• Define, identify, and segment key customer groups and markets,

• Understand customer needs and expectations (the voice of the customer),

• Understand linkages between the voice of the customer and design, production, and delivery,

• Build relationships through commitments, provide accessibility and information, set service standards, and follow-up on transactions,

• Develop and implement effective complaint management processes,

• Measure customer satisfaction for improvement,


IdentifyinIdentifyingg CustomersCustomers

Key customer groups:

• Organization level:– Consumers,

– External customers,

– Employees,

– Society

• Process level:– Internal customer units or groups,

• Performer level:– Individual internal customers,


UnderstandinUnderstandingg CustomerCustomerExpectationsExpectations

• Guidelines:– What are the product and service characteristics

do customers want?

– What level of performance is required to satisfy customers expectations?

– What is the relative importance of these characteristics?

– How satisfied are customers with performance at the current level?



Delight!

Level 3

LatentValue-added

characteristics and features thatcustomer did not expect

Level 2

Level 1

Explicit Options and trade-offs available for selection by

customers

Implicit Minimum performance levels

always assumed present

Specifications and

Requirements

BaseExpectations

Implicit, Explicit, and Latent Customer RequirementsRef- TQM, A.R. Tenner & I.J.DeToro



Customer needs and expectations(Expected quality)

Identification of customer needs

Translation into product/service specifications(Design quality) Output

(Actual quality)

Customer perceptions (Perceived quality)

measurement and feedback

PERCEIVED QUALITY = ACTUAL - EXPECTED14

LinkinLinkingg VoicVoicee ooff CustomeCustomerr totoDesignDesign,, ProductionProduction,, anandd DeliveryDelivery

Interrelationships

Technical requirements

Customer requirement

priorities

Voice of the

customer

Relationship matrix

Technical requirement priorities

Quality Function Deployment HOQ

E.H. Aghezzaf- Vakgroep TechnischeBedrijfsvoering (TW18V)

Competitive evaluation

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LinkinLinkingg VoicVoicee ooff CustomeCustomerr totoDesignDesign,, ProductionProduction,, anandd DeliveryDelivery

ThThee QualitQualityy FunctioFunctionn DeploymentDeployment

ProcessProcess

Technical requirements

Component characteristics

Process operations

Quality plan


BuilBuildd CustomeCustomerr Relationships:Relationships: GatherinGatheringg InformationInformation

• Comment cards and formal surveys: These approaches concentrate on measuring customer satisfaction.

• Focus groups: A panel of individuals who answer questions about a company’s products and services.

• Direct customer contacts: Hearing complaints directly by top-executives is an eye-opening experience.

• Field intelligence: Conversing with customers and observing their behavior helps in gaining useful information.

• Study complaints: Helps in understanding de gaps between expectations and performance


CustomeCustomerr RelationshipsRelationshipsManagementManagement

• Accessibility and commitments,

• Selecting and developing customer contact employees through empowerment and training,

• Customer focused service based on relevant customer contact requirements,

• Effective complaint management,

• Strategic partnerships and alliances,


EffectivEffectivee ComplainComplaintt ManagementManagementProcessesProcesses

High

Maximum Level of

Undestanding

Level 3

Personal interviews, Focus GroupsDesigned Suveys

Benchmarking

Level 2

Service Desk NetworksHot Line Sales Data Analysis

Unstructured Surveys Customer Representatives

FullUnderstanding

Level 1

Unsolicited Complaints

Low

Ref- TQM, A.R. Tenner & I.J.DeToro

Reactive Proactive

Approach


MeasurinMeasuringg CustomerCustomerSatisfactionSatisfaction

• Discover customer perceptions of company’s performance through identification of appropriate quality dimensions and measurement schemes,

• Compare company’s performance relative to leading competitors,

• Measure potential and former customers and identify areas for improvement,

• Track trends to determine if changes result in improvements,

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• Product and service quality dimensions– Access

– Communication

– Competence

– Courtesy

Word ofMouth

PersonalNeeds

ExpectedPerformance

Quality

PastExperience

External Communication

to Customers

Perceived

– Credibility

– Reliability

– Responsiveness

PerformanceGap

PerceivedPerformance

Product/ServiceQuality



Word-of-Mouthcommunications Personal Needs Past Experience

CustomerExpected Performance

Gap 5

Perceived Performance

Gap 1 Delivery Performance

Gap 3Gap 4

External Communication

to Customers

ProviderProduct/Service Quality Specifications

Gap 2

Management Perceptions of Customer Expectations




CustomerFocus

ProcessImprovement

TotalInvolvement


Measurement


ScopScopee ooff ProcesProcesss ManagementManagement

• Process Management: involves planning and administering the activities – design, control, and improvement – necessary to achieve a high level of performance,

• There are four types of key processes:– Design processes,– Production/delivery processes,– Support processes,– Supplier processes,

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ProcesProcesss ManagemenManagementt --Leading

PracticePracticess--• Translate customer requirements and internal

capabilities into product and service design requirements early in the process,

• Ensure that quality is built into products and services and use appropriate tools during development,

• Manage product development process to enhance communication, reduce time, and ensure quality,

• Define, document, and manage important production/delivery and support processes,

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ProcesProcesss ManagemenManagementt --Leading

PracticePracticess--• Define performance requirements for suppliers and

ensure that they are met,• Control the quality and operational performance of

key processes and use systematic methods to identify variations, determine root causes, and make corrections,

• Continuously improve processes to achieve better quality, cycle time, and overall operational performance,

• Innovate to achieve breakthrough performance using benchmarking and reengineering,

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ProcesProcesss ImprovemenImprovementt StepsSteps

• Defining key processes: Identify the processes that have the greatest impact on customer-driven performance standards .

• Planning: Establish a structured and disciplined approach to define and document the major components in the process and to understand their interrelationships.

• Control: Assure effectiveness so that the output is predictable and consistent with the customers’ expectations.


ProcesProcesss ImprovemenImprovementt StepsSteps

• Measurement: Map performance attributes to customers’ requirements and establish criteria for accuracy, precision, and frequency of data acquisition.

• Improvement: Increase effectiveness of the process by permanently embedding identified improvements.

• Optimization: Increase efficiency and productivity of the key processes by optimizing the resources.


IdentifyinIdentifyingg KeKeyy ProcessesProcesses

Developing & Understanding

Markets

Finance & Accounting

BusinessPlanning

Management Information

Systems

Marketing & Sales

Producing

Distributing & Delivering

Installation & ServicesProducts & Services (Maintenance + Repair )

Developing & Designing

(R&D - Engineering)

Attracting Developing and

Retaining PeopleLegal Services


PlanninPlanningg anandd DocumentinDocumentingg aaProcessProcess --Flow Diagrams--

Service visible to customer

Repair authorized

Service not visible to customer

Parts available

Customer drops off

car

Mechanic makes

diagnosis*

Discuss needed

work with customer*

Check parts

availability†

Perform work†

Parts not available

Repair not authorized Order parts

Inspect/ test and

repair

Customer departs with car

Collect payment

Notify customer

Repair complete

Corrective work

necessary

Perform corrected

work

* = Points critical to the success of the service † = Points at which failure is most often experienced


SummaryProcess: Emergency room admission Subject: Ankle injury patient Number Time DistanceBeginning: Enter emergency room Activity of steps (min) (ft) Ending: Leave hospital

Operation 5 23 —

Insert Step Transport 9 11 815

Inspect 2 8 — Delay 3 8 — Store — — —

Append Step

Remove Step

Step Time Distance

no. (min) (ft) Step description

12345

0.50 1510.0 -0.75 403.00 -0.75 40

XX

X

XX

Enter emergency room, approach patient window, Sit down and fill out patient history,Nurse escorts patient to ER triage room, Nurse inspects injury,Return to waiting room,

6789

10

1.00 -1.00 604.00 -5.00 -2.00 200

X

XX

X

X

Wait for available bed, Go to ER bed,Wait for doctor,Doctor inspects injury and questions patient, Nurse takes patient to radiology,

1112131415

3.00 -2.00 2003.00 -2.00 -1.00 60

X

X

X

X

X

Technician x-rays patient, Return to bed in ER,Wait for doctor to return,Doctor provides diagnosis and advice, Return to emergency entrance area,

16171819

4.00 -2.00 1804.00 -1.00 20

X

XX

X

Check out,Walk to pharmacy, Pick up prescription, Leave the building,

PlanninPlanningg anandd DocumentinDocumentingg aaProcessProcess --Process Charts--


Evaluating a Process-Diagnosis-

• Are steps arranged in a logical sequence?• Do all steps add value? Can some be eliminated

or added? Can some be combined? Should some be reordered?

• Are capacities in balance? What skills, equipment, and tools are required at each step?

• At which points might errors occur and how can they be corrected?

• At which points should quality be measured?• What procedures should employees follow where

customer interaction occurs?E.H. Aghezzaf- Vakgroep Technische 32

Bedrijfsvoering (TW18V)

Inspection & Measurement

Comparison with


Comparison with

Mat

eria

ls-r

elat

edC

orre

ctiv

es A

ctio

ns

Pro

cess

-rel

ated

Cor

rect

ives

Act

ion

s

ControllinControllingg aa ProcessProcess

• Process control consists in continually evaluating performance and taking corrective action when necessary,

• Components of control systems:– Standards and goals,

– Means of measuring accomplishments,

– Comparison of the results with the standard as a basis for corrective action,

• A well-controlled system is predictable,

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GeneriGenericc QualitQualityy ControControll SystemSystem

Inputs(Materials) Processes Output

(Products)


Standards

Comparison with

Standards Standards

AcceptableQuality

Yes

AcceptableQuality Yes

AcceptableQuality Yes

No No No

Identify Causes

• What was supposed to happen? What actually happened?

• Why is there a difference? What can we learn?


ProcesProcesss ImprovementImprovement

• Productivity improvement,• Work simplification,• Planned methods change,

Traditional IndustrialEngineering

• Kaizen,• Stretch goals,• Benchmarking,• Reengineering,

New approaches from the total quality movement

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ProcesProcesss ImprovementImprovementInput Supplier Output Input

Management &development

Outpu t Input Customer Output

Test, Evaluate & Implement Solutions

Identify Quality ProblemsCategorize & Set priorities

Remove the QualityProblem Causes Select a Quality Problem

Develop CorrectiveActions, Solutions& New Objectives

Analyze the QualityProblem Causes Collect

Relevante Data & Diagnose for Causes

Confirme the QualityProblem Causes


Nu

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of

de

fect

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Po

or

Des

ign

Def

ecti

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art

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Cu

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lati

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pe

rce

nta

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ThThee QualitQualityy CirclCirclee ProcessProcess

Presentation Implementation

monitoring

Organization8-10 members

Same area Moderator Training Group

processes Data collection

Problem analysis

SolutionProblem results

Problem analysis Cause & effect

Data collection & analysis

Problem ID List alternatives

Consensus Brainstorming


ToolToolss foforr ProcesProcesss ImprovementImprovement

Headliner Defects

Defect type Tally Total

A. Tears in fabric //// 4

B. Discolored fabric /// 3

C. Broken fiber board //// //// //// //////// //// //// / 36

D. Ragged edges //// // 7

Total 50

Checklists

20

50

40

30 C

20

10

0

100

80

60

40

20

0

15D

10 A B

5

01 2 6 13 10 16 19 17 12 16 20 17 13 5 6 2

1Histogram


Defect type

Pareto Chart

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Nu

mb

er

of

de

fect

sToolToolss foforr ProcesProcesss ImprovementImprovement

Scatter Diagram

Characteristics

20

15

10

05

00

First Second ThirdShift

values

Parameter

values

Bar Chart Control ChartsE.H. Aghezzaf- Vakgroep Technische 39

Bedrijfsvoering (TW18V)

ToolToolss foforr ImprovinImprovingg QualityQuality

Measurement Human Machines

Faulty testing equipment

Incorrect specifications

Improper methods

Poor supervision

Lack of concentration

Inadequate training

Out of adjustment

Tooling problems

Old or Worn

Inaccurate temperature

control

Dust andDirt

Defective from vendor

Not to specifications

Material- handling problems

Poor process design

Ineffective quality management

Deficienciesin product design

QualityProblem

Environment Materials Process

Cause-and-Effect Analysis


WorkPerformance Parameters

Operations that Control Products or Services

Produced and delivered

Requirements

Features, Values and Characteristics

Desired by Cusmoters

Capability

Features, Values and Characteristics

Delivered by Process

Customer Satisfaction

Degree to which Products or Services are Perceived to Meet Expectations

levelslevelsProcess

Output

Outcome

PerformancPerformancee MeasurementMeasurement

Suppliers Work Groups Customers

41Ref- TQM, A.R. Tenner & I.J.DeToro

ProcesProcesss MeasurementMeasurement

EfficiencEfficiencyy MeasuresMeasures

Process Cycle Time,

Resources used per unit ofoutput,

Value Added cost per unit of output,

Ratio of value added to non- value added time,

Cost of poor quality,

Wait and delay time per unit of output,

EffectivenesEffectivenesss MeasuresMeasures

Product Appearance, Performance,

Reliability,

Timeliness,

Usability,

Serviceability,

Durability,

Cost,

Responsiveness,

Dependability,

Accuracy,

Adaptability,

FlexibilitFlexibilityy MeasuresMeasures

Degree of empowerment,

Percentage of events in whichcustomers expectations are exceeded,

Degree of difficulty to respond to special requests,

Degree of authority people have to continuously improve the process,

Amount of time it takes to adjust the process to handle new requirements,

Number of pre-planned process scenarios,


Exp

ecte

d I

mp

ac

tIn

cre

am

en

tal

Bre

ak

thro

ug

h

Co

nti

nu

ou

sIm

pro

vem

en

t Ben

ch

mark

ing

Re

en

gin

ee

rin

g

BreakthrougBreakthroughh ImprovementImprovement

• Occasional change resulting from innovative and creative thinking,

• Benchmarking: The search of industry best practices that lead to superior performance,– Competitive benchmarking,

– Process benchmarking,

– Strategic benchmarking,

• Reengineering: Radical redesign of processes,


BreakthrougBreakthroughh ImprovementImprovement

Ongoing Periodic OccasionalApplication Frequency




CustomerFocus

ProcessImprovement

TotalInvolvement


Measurement


TotaTotall InvolvementInvolvement

• Human Resources,– Leadership,

– Empowerment,

– Employee Involvement,

– Teamwork and work systems,

• Suppliers Quality,


LeadershipLeadership

• The ability to positively influence people and systems to have a meaningful impact and achieve results,

• Leadership System:– Refers to how decisions are made,

communicated, and carried out at all levels; mechanisms for leadership development, self- examination, and improvement,

– Effectiveness of leadership system depends in part on its organizational structure,


LeadershiLeadershipp –– LeadinLeadingg PracticePracticess ––

• Create a customer-focused strategic vision and clear quality values,

• Create and sustain leadership system and environment for empowerment, innovation, and organizational learning,

• Set high expectations and demonstrate personal commitment and involvement in quality,

• Integrate quality values into daily leadership and management and communicate extensively,

• Integrate public responsibilities and community support into business practices,

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LeadershiLeadershipp TheoriesTheories

• Trait approach,• Behavioral approach,• Contingency approach,• Role approach,• Emerging theories:

– Attributional theory,– Transactional theory,

Managing

Plan Organize

Direct Coordinate

Control

GettingResults

Leading

Vision Align

Empower coach care

ImprovingSystems

– Transformational leadership theory,– Substitutes for leadership theory,– Emotional intelligence theory,


LeadershipLeadershipVision

What we will look like in sucessful future state

Implement(Action)

Commitment

Allocate resources consistent with leadership

framework

Style

Role model- how we will behave

Specific Intent

Broad Intent

ObjectivesWhat is to be acheived in scheduled period of time

GoalWhat is to be acheived

through sustained efforts over long period of time

Methodology How objectives will be

acheived through strategy and plans

Politicy Statement of principles that guide how all business activities are

to function

Foundation(Direction) Mission

The purpose or the reason for the existance of the

business

Do the right things(What to do)

ValuesDefine how we will behave

by delineating shared beliefs

Doing things right(How to do it)

Ref- TQM, A.R. Tenner & I.J.DeToro E.H. Aghezzaf- Vakgroep Technische 50Bedrijfsvoering (TW18V)

HumaHumann ResourcResourcee ParadigmsParadigms–– EmpowermenEmpowermentt ––

• Old Thinking:– People are part of the process,– Process requires external control,– Managers have to control what people do,

• New Thinking:– People design and improve processes,– Workers who run the process control it,– Managers must obtain commitment of workers,


EmpowermentEmpowerment–– Leading Practices ––

• Promote cooperation and collaboration through teamwork,

• Empower individuals and teams to make decisions that affect quality and customer satisfaction,

• Make extensive investments in training and education,

• Maintain a work environment conducive to the well-being and growth of all employees,

• Monitor extent and effectiveness of HR practices and measure employee satisfaction,


Alig

n m

en

t

Ali

gn

me

nt

EmpowermentEmpowerment

Empowerment in threeDimensions

- Capability- Alignment

- Trust

Build CapabilityIndividuals System- Ability - Materials

- Skills - Methods- Knowledge - Machines

Trust


EmpowermentEmpowerment

Build Alignment

1. Teach your mission, vision, values, and objectives,

2. Build everyone's commitment to them,

Bureaucracy

Paralysis

Empowerment

Chaos

Trust

Without alignment and trust the organization will suffer with paralisis,

bureaucracy, or chaos.

Build Mutual Trust

Employees feel that:

1. They can trust their managers,2. Thier managers trust them,


MeasurinMeasuringg EmployeeEmployeeSatisfactioSatisfactionn anandd EffectivenessEffectiveness

• Satisfaction,– Quality of work-life, training, teamwork,

leadership, communications, compensation, benefits, internal suppliers and customers,

• Effectiveness,– Team and individual behavior, cost, quality,

and productivity improvements, employee turnover; suggestions, training effectiveness,


SupplieSupplierr anandd PartneringPartneringProcessesProcesses

• Recognize the strategic importance of suppliers,

• Develop win-win relationships through strong partnerships,

• Establish trust through openness and honesty,

• Reduce number of suppliers and integrate the important once and eliminate the others,

56

SupplierSupplierss QualityQuality

• “Certified supplier” – one that, after extensive investigation, is found to supply material of such quality that routine testing on each lot received is unnecessary,

• Benefits of Effective Supplier ProcessManagement:

– Reduced costs and faster time to market,

– Increased access to technology,

– Reduced supplier risk and improved quality,


StrategieStrategiess foforr qualityqualityContinuous

Improvement

CustomerFocus

ProcessImprovement

TotalInvolvement

Strategies and Plans


LinkinLinkingg ththee StrategiStrategicc PlanninPlanningg ToToProcesProcesss ManagementManagement

Existing Desired MeasuresProduct

FeasibleBusiness Strategies

ExistingCapabilities

Strategy Gap?

Capability Gap?

DesiredBusiness Strategy

DesiredCapabilities

Attributes

Price, Time, Quality, Variety

OperationsStrategy

Marketing, …, Financial Strategy

Current Operational Structure: Processes &

Infrastructure

Desired Operational Process Gap? Structure: Processes &

Infrastructure


Process Attributes

Cost, Time, Quality,

Flexibility59

ThThee TQMTQM StrategiStrategicc ModelModel

Business/Activity

Mission Vision Values

Goals

Critical success factors

Objectives

Competitive Analysis Strengths/Weaknesses

Assumptions

Strategies

Programs

Projects Organization Budgets/Resources


5

2

ObjectiveObjective QualityQuality

4

3

Integration of qualityManagement

1

Top managementConsensus

Generalised Education and training

From Problem Solving to Process Control

Quality Management Policies Deployment

&Business Strategies


StrategiStrategicc PlanningPlanning

GuidelinGuidelinees


Strategic Management

• The Strategic Management is a long-term, future oriented process of assessment, goal setting, and decision-making that maps an explicit path between the present and a vision of the future.

• This process relies on careful consideration of an organization’s capabilities and the environment.

• This process leads also to priority-based resource allocation for achieving the organization’s mission.



Vision

• A vision is an inspiring picture of a preferred future, not bound by time. It represents global and continuing purposes. It serves as a foundation for strategic planning.

• A vision would depict an ideal future for the organization and the contributions that it can make to that end.



Goals

• The general ends toward which the organization directs its efforts.

• They address the primary issues facing the organization within broad grouping of interrelated concerns.

• They are founded on the vision and may involve coordination among several department with similar functions.



Mission

• The reason for an organization’s existence. it succinctly identifies what the organization does, why, and for whom it does it.

• A mission reminds everyone in the organization, and also outside, of the unique purposes promoted and served by the organization.



Objectives

• Objectives are clear targets for specific action.• They are more detailed than goals, they have

shorter time frames, and may state a quantity.• They are achievable, measurable, and they set the

direction for strategies.• A single goal may be subdivided into multiple

objectives.



Strategy

• Strategies are the methods to achieve goals and objectives.

• The means of transforming inputs into outputs, and ultimately outcomes, with thebest use of resources.


Performance Measures

Indicators of the work performed and the results achieved. Can divided into:

• Output measures

• Outcomes measures

• Input measures

• Efficiency measures


Output Measures

• Outputs are the goods and services produced by an organization.

• Output measures are the tools, or indicators, to count the services and goods produced by an organization.

• The number of people receiving a service, or unit produced, or the number of services and customer delivered are often used as measures of output.


Development Guides

• Is the output reliably measurable?• Is the output measure directly related to the

organization's strategies?

• Does the output measure show the quantity of work performed?

• Can the measure be stated in unit cost terms?

• Is the output measure clear?


Outcome Measures

• Outcomes are the quantified results, or impacts, of organization action.

• Outcome measures are tools, or indicators, to assess the actual impact of an organization’s action.

• A means for quantified comparison between the actual results and the intended result.


Development Guides

• Is the outcome measure directly related to the organization’s goals.

• Is the outcome reliably measurable?• Does the outcome measure show what change

(difference) the organization’s action will have on the target group or problem?

• Can the organization gather data for the outcome measure without incurring excessive costs or undertaking cumbersome procedures?

• Is the outcome measure clear?


Output versus Outcome Measures

• Percentage of high school graduates (output measure) is not the same as the percentage of students with a certain level of mastery of subjects (outcome measure).

• The number of patients treated and discharged from a state mental hospital (output measure) is not the same as the number of discharged patients who are capable of living independently (outcome measure).


Input Measures

• The resources that an organization uses to produce products and services, including human, financial, facility, or material resources.– Number of €’s expended– Kilograms of material used

• Also includes measures of the scope of an organization’s operations:– Number of clients eligible for services– Number of entities subject to inspection/regulation– Number of applications or order received


Efficiency Measures

• Indicators that measure the cost, unit cost or productivity associated with a given outcome or output.

– Average cost per client served

– Average cost per inspection

– Average time to process an order


TQM[1]

Documents

process management

term total quality management

information management

supplier management

total quality managementsteps

poor quality

information quality

set of management practices