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Tqm ch 03
1.
Chapter 3
Information Analysis and Information Technology THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1
2.
Information Analysis And
Information Technology • Quality programs are dependent on good information systems, chief information officers have the opportunity to plan an intergal and highly visible role in shaping the quality of the corporation. • The Information Analysis Category examines an organization’s information management and performance measurement systems and how the organization analyzes performance data and information. 1 Measurement and Analysis of Organizational Performance 2 Information Management( Data Availability, Hardware and Software) 2 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
3.
Reasons of Implication
• If you don’t measure results, you can’t tell success from failure • If you can’t see success, you can’t reward it – and if you can’t reward success, you are probably rewarding failure • If you can’t recognize failure, you can’t correct it 3 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
4.
Organizational Implication
4 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
5.
Decision Making
• The ability to how quickly decisions are made, communicated, and carried out at all levels, for this it is very important how efficiently information will exchange with subordinates, peers, customer, suppliers or bosses. Effectiveness of decision making are essential for competitive advantage. 5 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
6.
Process Flow
Measurement Data Analysis Information 6 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
7.
Use of Information
and Analysis Validation Prediction Customer Measurements Requirements Control Processes Results Design Measurement supports executive performance review and daily operations and decision making. 7 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
8.
Benefits of
Information Management • Understand customers and customer satisfaction • Provide feedback to workers • Establish a basis for reward/recognition • Assess progress and the need for corrective action • Reduce costs through better planning 8 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
9.
Empirical Survey Results
• Measurement-management companies are more likely to: – be in top third of industry financially – complete organizational changes successfully – reach clear agreement on strategy – enjoy favorable cooperation and teamwork – have more employee empowerment – have a greater willingness to take risks 9 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
10.
Example: Federal Express
• “We measure everything. Then…we prioritize what processes are key to the company.” • Most data collection systems are automated, making it fast and easy. • Seeks internal measures that are predictors for external measures. 10 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
11.
Example: Ritz-Carlton
• “We only measure what we must. But, we make sure that what we measure is important to our customers.” • 50% marketing and financial data; 50% quality-related productivity data. • Cost of quality is top priority. Are improvements important to customers, providing a good return, and done quickly? 11 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
12.
Leading Practices (1
of 2) • Develop a set of performance indicators that reflect customer requirements and key business drivers • Use comparative information and data to improve overall performance and competitive position • Involve everyone in measurement activities and ensure that information is widely visible 12 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
13.
Leading Practices (2
of 2) • Ensure that data are reliable and accessible to all who need them • Use sound analytical methods to conduct analyses and use the results to support strategic planning and daily decision making • Continually refine information sources and their uses within the organization 13 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
14.
Balanced Scorecard
1. Financial perspective 2. Internal perspective 3. Customer perspective 4. Innovation and learning perspective Leading Lagging measures measures 14 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
15.
Key Types of
Business Performance Measures • Customer satisfaction measures • Financial and market performance measures • Human resource measures • Supplier and partner performance measures • Company-specific measures 15 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
16.
Example: Wainwright Industries
• Safety • Internal customer satisfaction • External customer satisfaction • Six sigma quality (manufacturing defects) • Business performance 16 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
17.
Common Quality Measures
• Nonconformities (defects) per unit • Errors per opportunity • Defects per million opportunities (dpmo) 17 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
18.
Importance of Comparative
Data • Comparative data: industry averages, best competitor performance, world- class benchmarks • Helps recognize the need for improvement • Provides motivation to seek improvement 18 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
19.
Linkages to Strategy
Key business drivers Strategies and (key success factors) action plans Measures and indicators 19 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
20.
Process-Level Measurements
• Does the measurement support our mission? • Will the measurement be used to manage change; that is, actionable? • Is it important to our customers? • Is it effective in measuring performance? • Is it effective in forecasting results? • Is it easy to understand and simple? 20 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
21.
Creating Effective
Performance Measures • Identify all customers and their requirements and expectations • Define work processes • Define value-adding activities and process outputs • Develop measures for each key process • Evaluate measures for their usefulness 21 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
22.
The Cost of
Quality (COQ) • COQ – the cost of avoiding poor quality, or incurred as a result of poor quality • Translates defects, errors, etc. into the “language of management” – $$$ • Provides a basis for identifying improvement opportunities and success of improvement programs 22 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
23.
Quality Cost Classification
• Prevention • Appraisal • Internal failure • External failure 23 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
24.
Quality Cost Management
Tools • Cost indexes • Pareto analysis • Sampling and work measurement • Activity-based costing 24 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
25.
Return on Quality
(ROQ) • ROQ – measure of revenue gains against costs associated with quality efforts • Principles – Quality is an investment – Quality efforts must be made financially accountable – It is possible to spend too much on quality – Not all quality expenditures are equally valid 25 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
26.
Managing Data and
Information • Validity – Does the indicator measure what it says it does? • Reliability – How well does an indicator consistently measure the “true value” of the characteristic? • Accessibility – Do the right people have access to the data? 26 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
27.
Analysis
• Statistical summaries and charts • Basic Trends over time • Comparisons with key benchmarks • Aggregate summaries and indexes • Cause-and-effect linkages and correlations (interlinking) • Data mining Advanced 27 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
28.
Interlinking
• Quantitative modeling of cause and effect relationships between external and internal performance criteria customer satisfaction * * rating * * * time on hold (telephone) 28 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Notes de l'éditeur
CRI Steering committee of 4 sets directions, frequent interaction with employees, review performance daily, formal monthly evaluations and OFIs
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