Transcript Quality Management Slides

MGMT 19105
Quality
Management
Geoff
Higgins
MGMT 19105
Quality Management
The Course
Organisation chosen for Assignment 1?
 Been into Blackboard?
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Higgins
MGMT 19105
Quality Management
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Module 1 – Revisit the Pioneers
The Gurus – a quiz
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Higgins
MGMT 19105
Quality Management
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Module 1 – Terminology
Quality Management
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The term ‘Quality Management’ used in this
course applies to how organisations ensure they
can offer quality products and services.
Total Quality Management (TQM)
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The term ‘total quality management’ is used as
the name of a movement, an approach and as a
business philosophy.
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Total quality management is defined in the
textbook (Goetsch & Davis 2006, p. 6).
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Higgins
MGMT 19105
Quality Management
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Module 1 – Terminology (continued)
Robert Flood (1993) defines TQM as:
‘Total’ means… “everyone should be involved in quality, at
all levels, and across all functions, ensuring quality is
achieved according to requirements in everything they
do.”
“Quality means meeting customer (agreed) requirements' ,
formal and informal, at lowest cost, first time every time.”
‘Management’ refers to “the need for everyone to be
responsible for managing their own jobs, which
incorporates managers with workers and anyone else
associated with the organisation.”
Geoff
Higgins
MGMT 19105
Quality Management
(Source: Flood, R. 1993 Beyond TQM, Wiley, London, p. unknown.)
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Module 1 – Shewart’s Definition
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From Hoyer and Hoyer (2001), Shewhart's essential
points (from the 1920’s) are:
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There are two sides to quality: subjective (what the customer
wants) and objective (properties of the product).
An important dimension of quality is value received for the price
paid.
Quality standards must be expressed in terms of physical,
quantitatively measurable product characteristics.
Statistics must be used to take information about the individual
product or service wants of a great many potential consumers
and translate it into measurable characteristics of a specific
product or service that will satisfy societal (marketplace) wants.
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Higgins
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Quality Management
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Module 1 – Six Sigma
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A statistical measurement/project focussed
approach to managing quality.
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Described by Hensler and Klefsjo (2004) as “a
methodology within the TQM framework and …
not a substitute”.
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Anon (2003) recognises the importance of
project management skills and project
prioritisation and selection to maximise benefits
from Six Sigma.
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Higgins
MGMT 19105
Quality Management
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Week 2
Quality, Competitiveness
& Globalisation
Geoff
Higgins
MGMT 19105
Quality Management
Module Objectives
1. Describe how the adoption of total quality
management can assist organisations in being
competitive.
2. Explain why the adoption of a total quality
management approach cannot guarantee
competitiveness.
3. Describe the impact of globalisation on
organisations in terms of threats and opportunities
to their quality efforts.
4. Describe the benefits of a total quality approach for
Geoff organisations impacted by globalisation.
Higgins
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Quality Management
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Readings
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Study Guide Module 2
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Textbook Goetsch & Davis 2006
Chapter 2. Quality and Global Competitiveness
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Electronic journal articles
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Anon. 2001, ‘Competitiveness drives quality in UK companies’.
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Mehra, S and Agrawal. SP 2003, ‘Total quality as a new global
competitive strategy’.
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O'Mahoney, M 2003 ‘Quality, productivity and competitiveness: An
Anglo-German comparison’.
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Higgins
MGMT 19105
Quality Management
(All available on Proquest)
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Quality & Competitiveness
Small Group
Without opening your books…
Organisations devoted to quality do not
necessarily ‘win’ when it comes to
competing in the marketplace.
Q. Why do you think this could be?
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Higgins
MGMT 19105
Quality Management
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Quality & Competitiveness
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The Study Guide recognises how difficult it can
be to link quality with competitiveness.
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The textbook and the article by Anon (2001) lack
concrete examples.
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Both the internal and external environment have
a complex influence on competitiveness.
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A competitor may succeed for any number of
reasons that are out of reach of the
organisation’s quality approach.
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Higgins
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Quality Management
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Quality & Globalisation
Small Group
Without opening your books…
A lot of fuss is made about ‘globalisation’
and its affects on organisations.
Q. Why is globalisation relevant in a course
about Quality Management?
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Higgins
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Quality Management
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Impact of Globalisation
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When other countries produce goods at a lower
cost, quality can be a differentiator.
Improvements in quality often come through
technological improvements. These may be
sourced globally, not just locally.
Being a node in an international supply chain
can provide access to quality supplies.
Human resources are important to
competitiveness, and the impact of globalisation
makes them critical.
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Higgins
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Quality Management
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Mehra & Agrawal (2003)
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Global operations demand a revised approach to
TQM.
Past practices
– quality control/result-oriented philosophy.
Current practices
– quality management/process-oriented.
For global organisations… “strategy and
procedures may be significantly different for each of
its plants located in different countries ”.
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Higgins
MGMT 19105
Quality Management
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Mehra & Agrawal (2003) continued
The focus must be on ‘desired quality’,
achieved by making appropriate decisions about:
 Mandatory and voluntary compliance with
standards
 Managerial initiatives
 Supply chain management (especially certification
of vendors & local requirements)
 Human resource management (such as
communication, team constitution & empowerment)
 Cost management
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Higgins
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Quality Management
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O’Mahoney (2003)
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Compared UK and German ceramic tableware
products and production data.
In comparison:
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British productivity was lower.
The average German worker produced 70% of the
output (by volume) of a UK worker, while average unit
values for items produced in Germany were around
90% higher than those produced in the UK.
“The authors found little difference in the
physical plant and equipment used in the two
countries.”
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Higgins
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Quality Management
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O’Mahoney (2003) continued
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Human resources were a distinguishing feature,
with the German factories distinguished by:
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Considerable shop-floor experience and technical
understanding of the design team.
Greater reliance on skilled tool-makers
(mouldcutters), resulting in smaller batches of highquality, heavily differentiated products.
Proportionately more skilled maintenance technicians.
A significantly greater proportion of supervisory
personnel held formal vocational qualifications.
All of these resulted in “greater functional
flexibility among production operatives in
Germany”.
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Higgins
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Quality Management
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O’Mahoney (2003) continued
Concludes that:
Goods produced in advanced countries will
eventually be imitated by low-cost producers so
that retaining market shares will require greater
attention to moving up the product quality
ladder in countries which cannot compete on
the basis of raw cost alone.
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Higgins
MGMT 19105
Quality Management
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Porter’s Five Forces Model
Combining competitiveness and
globalisation using five elements:
1.
2.
3.
4.
5.
Rivalry Between Competitors
Barriers to New Entrants
The Bargaining Power of Buyers
The Bargaining Power of Suppliers
The Threat of Substitute Products
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Higgins
MGMT 19105
Quality Management
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Porter’s Five Forces Model
Small Group
Explain why each of Porter’s five
forces is relevant in understanding the
significance of competitiveness and
globalisation in quality management.
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Higgins
MGMT 19105
Quality Management
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Conclusion
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Recap of Module 1
Module Introduction
Quality and Competitiveness
Quality and Globalisation
Quality and Globalisation – articles
Porter’s Five Forces Model
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Higgins
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Quality Management
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Next Week
Week 3
“Quality, values and ethics”.
 Study Guide
 Goetsch & Davis (2006)
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Chapter 4. Quality Management, Ethics, and
Corporate Social Responsibility
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Electronic Journal Articles (on Proquest)
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Higgins
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Quality Management
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Questions?
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Higgins
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Quality Management
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