Transcript Document

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:
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“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)
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“Quality is consistent conformance to customers’ expectations”
(Slack, et al 2009)
Quality Revolution
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1970’s – Japanese manufacturers increasing market share by producing high quality
products at affordable prices (Toyota car industry)
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Europe & United States soon followed and adopted similar techniques
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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
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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)
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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
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Membership: 500 + companies
UK – Software, Education, Consultancies
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Key aims for organisations to develop capabilities and sustain excellence
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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:
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•
•
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Results
Approach
Deployment
Assessment
Review
Enablers – use Approach, Deployment, Assessment & Review
Results – use Results element
Practical tool for business self-assessment
Importance of Quality
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Five Critical Operations Performance Objectives:
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Quality
Speed
Dependability
Flexibility
Cost
(Slack, et al 2007)
Any questions?
Useful website: www.bqf.org.uk
– British Quality Foundation