Transcript Document

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
Principles of Total Quality
Customer and stakeholder focus
Participation and teamwork
Process focus and continuous
improvement
...supported by an integrated organizational
infrastructure, a set of management practices,
and a set of tools and techniques
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
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.
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
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.
Process Focus and Continuous
Improvement
A process is a sequence of
activities that is intended to achieve
some result
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
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
TQ Infrastructure
Customer relationship management
Leadership and strategic planning
Human resources management
Process management
Data, information and knowledge
management
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
Key Idea
An organization that is committed to total
quality must apply it at three levels: the
organizational level, the process level, and
the performer/job level.
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
Quality and Personal Values
Personal initiative has a positive impact on
business success
Quality begins with personal attitudes
Quality-focused individuals often exceed
customer expectations
Attitudes can be changed through
awareness and effort (e.g., personal
quality checklists)
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. 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!).
Chapter 2
Total Quality in Organizations
Key Idea
As consumer expectations have risen, a focus on
quality has permeated other key sectors of the
economy, most notably health care, education,
not-for-profits, and government.
Systems Thinking
A system is the functions or activities within
an organization that work together for the
aim of the organization.
Subsystems of an organization are linked
together as internal customers and suppliers.
A systems perspective acknowledges the
importance of the interactions of subsystems,
not the actions of them individually.
Key Idea
Successful management relies on a systems
perspective, one of the most important elements
of total quality.
Manufacturing Systems
Marketing and sales
Product design and
engineering
Purchasing and receiving
Production planning and
scheduling
Manufacturing and assembly
Tool engineering
(1 of 2)
Manufacturing Systems
Industrial engineering and
process design
Finished goods inspection
and test
Packaging, shipping, and
warehousing
Installation and service
(2 of 2)
Quality in Services
Service is defined as “any
primary or complementary
activity that does not directly
produce a physical product –
that is, the non-goods part of
the transaction between buyer
(customer) and seller
(provider).”
Critical Differences between
Service and Manufacturing (1 of 2)
Customer needs and performance
standards are more difficult to identify
and measure
Services requires a higher degree of
customization
Output is intangible
Critical Differences between
Service and Manufacturing (2 of 2)
Services are produced and consumed
simultaneously
Customers are often involved in actual
process
Services are more labor-intensive than
manufacturing
Services handle large numbers of
transactions
Key Idea
The American Management Association
estimates that the average company
loses as many as 35 percent of its
customers each year, and that about
two-thirds of these are lost because of
poor customer service
Components of Service
System Quality
Employees
Information technology
The Ritz-Carlton Hotel Co.
Quality Issues in Health Care
Avoidable errors
Underutilization of services
Overuse of services
Variation in services
Quality in Education
Active involvement of
whole school community
Committed leadership
System for continuous
improvement
Environment that
celebrates success
Quality in the Public Sector
Quality in the Federal Government
State and Local Quality Efforts