Transcript Chapter 1

6540-Chapter 2
Total Quality in
Organizations
Growth of Modern
Quality Management
Performance
excellence
Service
quality
Improved
product designs
Manufacturing
quality
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.
Manufacturing Systems (1 of 2)
•
•
•
•
•
•
Marketing and sales
Product design and engineering
Purchasing and receiving
Production planning and scheduling
Manufacturing and assembly
Tool engineering
Manufacturing Systems (2 of 2)
• Industrial engineering and process
design
• Finished goods inspection and test
• Packaging, shipping, and
warehousing
• Installation and service
Quality in Business Support
Functions for Manufacturing
•
•
•
•
•
General management
Finance and accounting
Human resource management
Quality assurance
Legal services
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
Components of Service
System Quality
• Employees
• Information technology
The Ritz-Carlton Hotel Co.
Key Shifts in Customer Satisfaction
Management
From
•
•
•
•
•
•
•
•
•
Provider Orientation
Tolerance
Directing
Employee as Expendable
Resource
Reactive
Tradition and “Busy-ness”
Turf Protection
“We-They” Thinking
Cynicism
To
•
•
•
•
•
•
•
•
•
•
Customer Orientation
Higher Standards
Empowering
Employee as Customer
Proactive
Experimentation and Risk
Results
Teamwork Across Lines
Organizational Perspective
Optimism
Quality in Health Care
• Joint Commission on Accreditation of
Healthcare Organizations (JCAHO)
• National Committee for Quality Assurance
(NCQA)
• Institute for Healthcare Improvement (IHI)
• 1999 expansion of the Baldrige Award to
nonprofit health care organizations
Quality Issues in Health Care
•
•
•
•
Avoidable errors
Underutilization of services
Overuse of services
Variation in services
Quality in Education
• Koalaty Kid program
• 1999 expansion of the Baldrige
Award to nonprofit education
organizations
• Success stories
– Mt. Edgecumbe High School
– Brazosport ISD
– Hunderton Central Regional HS
– Pinellas County Schools
Higher Education
as a Production System
Suppliers:
families, high
schools, colleges,
business
Design and
Redesign
Consumer
research
Customers:
business, families,
society, students
Inputs:
Outputs:
students
faculty
able students
new knowledge
Teaching, counseling,
scientific research
Processes
Quality in the Public Sector
• Quality in the Federal Government
• State and Local Quality Efforts