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