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  1. Quality Defined „ ASQC – totality of features and characteristics of a product or service that bears on its ability to satisfy given needs „ fitness for its use – how well does the product do what the customer thinks it should do and wants it to do
  2. Dimensions of Quality „ quality of design - degree to which quality characteristics are designed into a product „ products or services designed with different levels of quality for different types of customers „ customer determines quality
  3. Dimensions of Quality (cont) „ customer dimensions of product quality „ performance, features, reliability „ conformance, durability, serviceability „ aesthetics, safety, other perceptions
  4. Dimensions of Quality (cont) „ customer dimensions of service quality „ time and timeliness, completeness, courtesy, consistency „ accessibility and convenience, accuracy, responsiveness „ quality characteristics weighed by customer relative to cost of product or service
  5. Dimensions of Quality (cont) „ quality from producer perspective „ quality of conformance – product is produced according to design specifications „ achieving quality of conformance „ design of production process „ equipment, technology, materials „ employees, use of statistical quality control (SQC)
  6. TQM „ TQM – total commitment to quality throughout the entire organization „ Deming approach to quality management „ continuous improvement of production process to achieve conformance to specifications and reduce variation „ two primary sources of process improvement „ common causes of quality problems – poor product design or insufficient employee training „ special causes of quality problems – improperly operating equipment or a poor operator
  7. TQM (cont) „ emphasizes extensive use of SQC to reduce variability in production process „ dismisses extensive use of inspections as coming too late to reduce product defects „ primary responsibility for quality is with employee and manager, not quality manager or inspection technician
  8. TQM (cont) „ Deming's 14 points „ create constancy pf purpose toward product improvement „ prevent poor-quality products rather than acceptable levels of poor quality „ eliminate need for inspection to achieve quality and rely on SQC to improve product and process design „ select a few suppliers or vendors based on quality commitment rather than competitive prices
  9. TQM (cont) „ constantly improve production process by focus on two primary sources of quality problems, the system and workers „ institute worker training on prevention of quality problems and use of SQC „ instill leadership among supervisors to help workers perform better „ encourage employee involvement by eliminating fear of reprisal for asking questions and identifying quality problems
  10. TQM (cont) „ eliminate barriers between departments and promote cooperation and a team approach „ eliminate slogans and numerical targets that encourage workers to achieve higher performance levels without first showing them how to do it „ eliminate numerical quotas which employees attempt to meet at any cost without regard for quality „ enhance worker pride, artistry, and self-esteem by improving supervision and the production process so that workers can perform to their capabilities
  11. TQM (cont) „ institute training programs in methods of quality improvement throughout the entire organization „ develop a commitment from top management to implement previous points „ Deming Wheel (PDCA Cycle) – plan, do, study/check, act
  12. TQM (cont) „ Joseph Juran - included quality in strategic planning process „ strategic quality planning - determine desired quality level and design production process to achieve desired quality characteristics „ emphasizes quality improvement by focus on chronic quality problems and securing a ‘break-thru’ solution „ hundreds, or even thousands, of quality improvement projects going on at any one time
  13. TQM (cont) „ Phillip Crosby – author of 1979 book Quality is Free „ emphasized the cost of poor quality „ cost of poor quality far outweighs cost of preventing poor quality
  14. TQM (cont) „ Armand Feigenbaum – introduced ‘total quality control’ in 1980s „ total quality control – total commitment of management and employees throughout the organization to improve quality „ Japanese adopt this approach – referred to as company-wide quality control „ Japanese believe all employees at all levels are responsible for continuous quality improvement
  15. The Shingo System: Fail-Safe Design „ Shingo’s argument: „ SQC methods do not prevent defects „ Defects arise when people make errors „ Defects can be prevented by providing workers with feedback on errors „ Poka-Yoke includes: „ Checklists „ Special tooling that prevents workers from making errors
  16. TQM (cont) „ TQM and continuous process improvement „ focus of continuous process improvement is business processes rather than business functions „ continuous process improvement „ identify critical processes „ analyze processes to find out how all tasks and functions are interrelated „ objective is to determine how to improve process while improving quality of work performed
  17. TQM (cont) „ principles of TQM „ TQM is set of principles that focus on quality improvement as driving force in all functional areas and in all levels in an organization „ principles of TQM „ customer defines quality and customer needs are top priority „ top management must provide leadership for quality „ quality is a strategic issue „ quality is the responsibility of all employees at all levels
  18. TQM (cont) „ all functions within an organization must focus on continuous quality improvement „ quality problems are solved through cooperation among employees and management „ problem solving and continuous quality improvement are SQC methods „ training and education of all employees is the basis for continuous quality improvement
  19. TQM (cont) „ TQM throughout the organization „ marketing and R&D, engineering „ purchasing, human resources „ management, shipping „ customer service
  20. TQM (cont) „ strategic implications of TQM „ quality as core competency „ quality as order qualifier or order winner „ quality as means to position firm to compete