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1 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Chapter 1Chapter 1
Introduction to Quality
2 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Definitions of QualityDefinitions of Quality
• Total quality management (TQM) is the integration of all functions and processes within an organization in order to achieve continuous improvement of quality of goods and services.
• A process is a sequence of activities that is intended to achieve some result
3 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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
4 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Principles of Total Quality
• Customer and stakeholder focus• Participation and teamwork• Process focus and continuous
improvement
...supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques
5 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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
6 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
THE CONCEPT OF TQMTHE CONCEPT OF TQMThe subsystem include all the organizational
functions in the life cycle of a productDesign, Planning, Production, Distribution,
Field serviceThe management subsystems also require
integration, including 1. strategy with a customer focus 2. The tools of quality3. Employee involvement
The subsystem include all the organizational functions in the life cycle of a product
Design, Planning, Production, Distribution, Field service
The management subsystems also require integration, including
1. strategy with a customer focus 2. The tools of quality3. Employee involvement
7 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Strategy With Customer FocusStrategy With Customer Focus
• “Meeting or exceeding customer expectations”
• Customers can be...– Consumers
– External customers
– Internal customers
8 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Employee involvement
• 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
9 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Key Issues & terminology related To TQM
• The cost of quality
• A cultural change
• Enabling mechanisms of change
• Implementing TQM
• Management behavior
10 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Infrastructure, Practices, and Tools
Leadership Strategic HRM Process Data and information Leadership Strategic HRM Process Data and information Planning mgt. managementPlanning mgt. management
Performance TrainingPerformance Training appraisalappraisal
Trend chartTrend chartToolsTools
PracticesPractices
InfrastructureInfrastructure
11 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
TQ Infrastructure
• Customer relationship management• Leadership and strategic planning• Human resources management• Process management• Data and information management
12 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
ANTECEDENTS OF MODERN QUALITY MANAGEMENT
ANTECEDENTS OF MODERN QUALITY MANAGEMENT
• 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
13 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Organizational benefits
• Great customer loyalty
• Marker share improvements
• Higher stock price
• Reduced service calls
• Higher prices
• Greater productivity
14 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Quality and Business Performance
Quality and Business Performance
Customer-Driven Quality
Specification quality
Customer values
productivity
Market Share
Lower costs
Higher profitability
Price Advantage
Customer attributesAnd design space profitability and
growth
15 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Leaders in the Quality Revolution
• W. Edwards Deming (early 1950)
• Joseph M. Juran (1954)
• Philip B. Crosby
• Armand V. Feigenbaum
• Kaoru Ishikawa
• Genichi Taguchi
16 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Deming Chain ReactionImprove quality
Costs decrease
Productivity improves
Increase market share with better quality and lower prices
Stay in business
Provide jobs and more jobs
17 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Deming’s System of Profound Knowledge
• Appreciation for a system
• Understanding variation
• Theory of knowledge
• Psychology
18 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Deming’s 14 Points (Abridged) (1 of 2)
1. Create consistency of purpose with a plan2. Adopt the new philosophy of quality.3. Cease dependence on mass inspection.4. End practice of choosing suppliers based solely on price.5. Identify problem and work Constantly improve system.6. Adopt modern method of training on the job.7. Change the focus from production numbers to quality.8. Drive out fear.9. Break down barriers between departments.
19 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Deming’s 14 Points (2 of 2)
10. Stop requesting improved productivity with out providing method to achieve it.11. Eliminate work standard that prescribe numerical quotas. 12. Remove barriers to pride of workmanship.13. Institute vigorous education and retraining.14. Create a structure in top management that will emphasize the preceding thirteen points every day.
www.deming.org
20 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Juran’s 10 step to quality improvement Quality planning
Quality organizingQuality improvement
• Build awareness of opportunities to improve
• Set goals for improvement
• Organize to reach goals
• Provide training
• Carry out projects to solve problems
• Report progress
• Give recognition• Communicate results• Keep score• Maintain momentum by
making annual improvement part of the regular system and process of the company
www.juran.com
21 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Phillip B. Crosby
Quality is free . . . :“Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.”
22 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Absolutes of Quality Management:• Management commitment
• Quality improvement team
• Quality measurement
• Cost of quality
• Quality awareness
• Corrective action
• Zero defect planning
• Supervisor training
Crosby 14 Points (Abridged) (1 of 2)
23 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
• Zero defects day
• Goal setting
• Error cause removal
• Recognition
• Quality councils
• Do it all aver again
www.philipcrosby.com
24 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
A.V. Feigenbaum
• Three Steps to Quality– Quality Leadership, with a strong focus
on planning
– Modern Quality Technology, involving the entire work force
– Organizational Commitment, supported by continuous training and motivation
25 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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
26 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Quality and Personal ValuesQuality and Personal Values
• Personal initiative has a positive impact on business success
• Quality begins with personal attitudes
• Quality-focused individuals often exceed customer expectations
• Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
27 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
28 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Malcolm Baldrige National Quality Award
• Help improve quality in U.S. companies
• Recognize achievements of excellent firms and provide examples to others
• Establish criteria for evaluating quality efforts
• Provide guidance for other U.S. companies
29 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Criteria for Performance Excellence
• Leadership
• Information and analysis
• Strategic quality planning
• Human Resource development and management
• Management of process quality
• Quality and operational results
• Customer focus and satisfaction
30 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
The Baldrige Framework –A Systems Perspective
6Quality and Operational Result
4Human
Resource Focus
3Strategic quality
planning
7Customer focus and
satisfaction
7Customer focus and
satisfaction
2Information
and analysis
1Leadership
5Process
Management
Organizational Profile:
Environment, Relationships, and Challenges
31 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Receive Applications
Judges Select for Consensus Review?
Judges Select forSite Visit Review?
Stage 1Independent Review
Stage 2Consensus Review
Stage 3Site Visit Review
Stage 4Judges Recommend Award
Recipients to NIST Director/DOC
Feedback report to applicant
Feedback report to applicant
Feedback report to applicant
No
No
Baldrige Award Evaluation Process
32 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
The Baldrige Award Scoring System
• Three evaluation dimensions - Approach, Deployment, and Results
• Scoring is linked to the importance to the applicant’s business
• Scoring guidelines
33 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Feedback Report
• Strengths - approaches or results that demonstrate effective response to the Criteria
• Opportunities for improvement - how the applicant can better address the purposes of the Criteria, or issues that require clarification
34 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Self Assessment and the Baldrige National Quality Program
A primary goal of the Program is to encourage many organizations to improve on their own by equipping them with a standard template for measuring their performance and their progress toward performance excellence.