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Chapter 1 TQM Introduction to Quality
- 1. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 1
Chapter 1
Introduction to
Quality The
Management
& Control of
Quality, 7e
- 2. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 2
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. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 3
Key Idea
Building—and maintaining—quality into
an organization’s goods and services,
and more importantly, into the
infrastructure of the organization itself, is
not an easy task.
- 4. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 4
Quality Assurance
...is any action directed toward
providing customers with goods and
services of appropriate quality.
- 5. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 5
Key Idea
Although quality initiatives can lead to
business success, they cannot guarantee
it, and one must not infer that business
failures or stock price dives are the result
of poor quality.
- 6. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 6
Contemporary Influences on
Quality
Globalization
Innovation/creativity/change
Outsourcing
Consumer sophistication
Value creation
Changes in quality
- 7. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 7
Defining Quality
Perfection
Consistency
Eliminating waste
Fast delivery
Compliance with policies and procedures
Providing a good, usable product
Doing it right the first time
Delighting or pleasing customers
Total customer service and satisfaction
- 8. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 8
Formal 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
- 9. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 9
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
- 10. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 10
Key Idea
Because individuals in different business
functions speak different “languages,”
the need for different views of what
constitutes quality at different points
inside and outside an organization is
necessary to create products of true
quality that will satisfy customers’ needs.
- 11. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 11
Customer-Driven Quality
“Meeting or exceeding customer
expectations”
Customers can be...
Consumers
External customers
Internal customers
- 12. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 12
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
- 13. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 13
Principles of Total Quality
Customer and stakeholder focus
Participation and teamwork
Process focus supported by continuous
improvement and learning
…all supported by an integrated organizational
infrastructure, a set of management practices,
and a set of tools and techniques
- 14. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 14
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
- 15. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 15
Key Idea
To meet or exceed customer expectations,
organizations must fully understand all
product and service attributes that
contribute to customer value and lead to
satisfaction and loyalty.
- 16. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 16
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
- 17. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 17
Key Idea
In any organization, the person who
best understands his or her job and
how to improve both the product and
the process is the one performing it.
- 18. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 18
Process Focus and Continuous
Improvement
A process is how work creates value for
customers
Processes transform inputs (facilities,
materials, capital, equipment, people,
and energy) into outputs (goods and
services)
Most processes are cross-functional
- 19. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 19
Key Idea
A process is a sequence of activities
that is intended to achieve some result
- 20. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 20
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
- 21. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 21
Key Idea
Major improvements in response time may
require significant simplification of work
processes and often drive simultaneous
improvements in quality and productivity.
- 22. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 22
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
- 23. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 23
TQ Infrastructure
Customer relationship management –
understanding customer’s need
Leadership and strategic planning –
success of the firm depends on the
performance of workers at the bottom then
up of the pyramid
Human resources management – fully
committed, well-trained, involved workers
Process management – design of process
to develop and deliver products.
Information and knowledge management
- 24. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 24
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
- 25. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 25
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 & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 26
Quality and Personal Values
Personal initiative has a positive impact on
business success
Quality-focused individuals often exceed
customer expectations
Quality begins with personal attitudes
Attitudes can be changed through awareness and
effort (e.g., personal quality checklists)
Unless quality is internalized at the personal level,
it will never become rooted in the culture of an
organization. Thus, quality must begin at a
personal level (and that means you!).
- 27. THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 27
Key Idea
In the daily attempt to bring about change in the
individual parts of the organizational universe,
managers, employees, professors, and students
can find that personal quality is the key to unlock
the door to a wider understanding of what the
concept really is all about.