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Ch01
1.
1THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Chapter 1 Introduction to Quality
2.
2THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Modern 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
3.
3THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Quality Assurance ...is any action directed toward providing customers with goods and services of appropriate quality.
4.
4THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM History of Quality Assurance (1 of 2) • Skilled craftsmanship during Middle Ages • Industrial Revolution: rise of inspection and separate quality departments • Statistical methods at Bell System • Quality control during World War II • Quality management in Japan
5.
5THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM History of Quality Assurance (2 of 2) • Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management” • Malcolm Baldrige National Quality Award (1987) • Quality in service industries, government, health care, and education • Current and future challenge: keep progress in quality management alive
6.
6THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Contemporary Influences on Quality • Parterning • Learning systems • Adaptability and speed of change • Environmental sustainability • Globalization • Knowledge focus • Customization and differentiation • Shifting demographics
7.
7THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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
8.
8THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Quality Perspectives CustomerCustomer DistributionDistribution productsproducts andand 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
9.
9THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Customer-Driven Quality • “Meeting or exceeding customer expectations” • Customers can be... – Consumers – External customers – Internal customers
10.
10THE 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
11.
11THE 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
12.
12THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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
13.
13THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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
14.
14THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Process Focus and Continuous Improvement • A process is a sequence of activities that is intended to achieve some result
15.
15THE 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
16.
16THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Deming’s View of a Production System Suppliers of materials and equipment Receipt and test of materials Design and Redesign Consumer research A B C D Production, assembly inspection Tests of processes, machines, methods Distribution Consumers INPUTS PROCESSES OUTPUTS
17.
17THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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
18.
18THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Infrastructure, Practices, and Tools Leadership Strategic HRM Process Data and informationLeadership Strategic HRM Process Data and information Planning mgt. managementPlanning mgt. management Performance TrainingPerformance Training appraisalappraisal Trend chartTrend chartToolsTools PracticesPractices InfrastructureInfrastructure
19.
19THE 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
20.
20THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Competitive 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
21.
21THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Quality 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
22.
22THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Evidence that Quality Impacts Business Results • General Accounting Office study of Baldrige Award applicants • Baldrige stock study (see www.quality.nist.gov) • Hendricks and Singhal study of quality award winners • Performance results of Baldrige Award winners
23.
23THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM GAO TQ Model Product and service quality Customer satisfaction Leadership for continuous improvement Quality systems and employee involvement Competitiveness Organization benefits Reliability On-time delivery Error/defects Overall satisfaction Customer retention Complaints Costs Cycle time Turnover Satisfaction Safety & health Productivity Market share Profits
24.
24THE 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
25.
25THE MANAGEMENT AND
CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Quality 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)
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