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BA (Hons) Business, Management & Communications Managing Quality & Risk Semester 1 Week 1 – 15/09/2014 Module Lecturer: Tim Rose Module Route Map Introduction to managing quality Defining quality and its importance Quality monitoring and controlling process Approaches to quality improvement Diagnosing quality problems Preventing failure Identifying potential causes of failure Module Route Map Introduction to managing risk Defining risk Role and responsibility of the individual The interrelationship between quality and risk Embedding philosophies, processes and practice Plus; overview of assessments Outline of Assessment 1 • Deadline: 08 December 2014 • Grade Award – 70% of overall grade • Report: 2,500 word count • Subject: “Conduct a Quality and Risk Audit on a given organisation.” • Students must submit an report of 2,500 words • Degree criteria - no extension to deadline Outline of Assessment 2 • Deadline: 12 January 2015 • Grade Award – 30% of overall grade • Subject: Examination • Format: 2 hour unseen, short answer examination • Degree criteria - no extension to deadline Quality What’s the first word that comes to mind when you think about ‘Quality’? Write your word down on a post-it note… Collection Stick your post-it note on the board… What do the individual words have in common? Commonality Group your post-it note with others on the board in clusters of threes… What have you constructed? Quality defined Dictionary definition: • “The standard of something as measured against other things of a similar kind; the degree of excellence of something” (Oxford dictionaries 2014) British Standards Institute (1979) • “The totality of features and characteristics of a product or service that bear on its ability to satisfy a given need”. (Jones & Robinson 2012) • “Quality is consistent conformance to customers’ expectations” (Slack, et al 2009) Quality Revolution • 1970’s – Japanese manufacturers increasing market share by producing high quality products at affordable prices (Toyota car industry) • Europe & United States soon followed and adopted similar techniques • Direction led to CI – continuous improvement and the art of ‘Kaizen’ • https://www.youtube.com/watch?v=Ohu9WH3a5FM At what stage within the business do we define quality? Five approaches to Quality • • • Transcendent approach – absolute quality Manufacturing-based approach – quality product built to precise design specification User-based approach – quality product, fit for purpose (concern for its adherence to specification & to appropriateness for customer) • • Product-based approach – quality as precise and measurable set of characteristics to satisfy customers Value-based approach – quality defined in terms of cost and price (Slack, et al 2009) Group activity 1 List one brand that you associate with for each approach Provide a rationale to justify your perception of quality Customer’s view on quality • Operation’s view is in trying to meet customer expectations • Customer’s view is in the perception of what the product or service should be • Match between product expectation and perceived quality = acceptable. (Slack, et al 2009) 4.5 Gap in Expectations & Perceptions 4 3.5 3 2.5 Series 1 2 Series 2 Series 3 1.5 1 0.5 0 Perceived Quality is Poor Match Perceived Quality is Good Key : Green – Customers’ expectations Blue – Customers’ perceptions Product Perfection Organisations strive for ‘perfection’, ‘Delivering the right product in the right way, in the right quantity and right quality, in the right place at the right time for the right customer at the right cost” (Mangan, et al, 2012) ‘The Five Gap Model’ of Quality Gap Name Definition 1 Positioning Between management perspectives of customer expectations & the expectations themselves 2 Specification Between management perceptions of customer expectations & actual product specified 3 Delivery Between product promised & that actually delivered 4 Communication Between product delivered & that externally communicated to customers (e.g. advert) 5 Perception* Between the product quality perceived & that expected by the customer (*Externally influenced) (Jones & Robinson 2012) Group activity 2 a) Analyse a brand identified in activity 1 based on the ‘Five Gap Model’ b) Present your findings to the Module Group Overview of EFQM Model • An organisation’s level of excellence in performance based on: • “Excellent results with respect to Performance, Customers, People and Society are achieved through Leadership driving Policy and Strategy, that is delivered through People, Partnerships and Resources, and Processes” (EFQM Excellence Model V2.1 2003) EFQM Summary • • Membership: 500 + companies UK – Software, Education, Consultancies • Key aims for organisations to develop capabilities and sustain excellence • • • Annual membership fee, based on annual turnover of an organisation: for example (2013) More than 1 billion euros – 11,000 euros Less than 5 million euros - 1, 350 euros EFQM Excellence Model Framework Enablers Results People People Results People Leadership Strategy Partnerships & Resources Processes, Products & Services Customer Results Business Results Society Results Innovation and Learning EFQM Summary • Dynamic model • Assessment of an organisation based on 9 criteria • Each criteria has a definition, supported by a number of criterion parts • Each criterion part poses a set of questions • Objective assessment, based on evidence • Application of the RADAR scoring matrix to evaluate excellence RADAR logic • Four elements to RADAR logic: • • • • • Results Approach Deployment Assessment Review Enablers – use Approach, Deployment, Assessment & Review Results – use Results element Practical tool for business self-assessment Importance of Quality • Five Critical Operations Performance Objectives: • • • • • Quality Speed Dependability Flexibility Cost (Slack, et al 2007) Any questions? Useful website: www.bqf.org.uk – British Quality Foundation