Transcript Chapter 2 Total Quality in Organizations THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM.

Chapter 2
Total Quality in
Organizations
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Growth of Modern
Quality Management
Performance
excellence
Service
quality
Improved
product designs
Manufacturing
quality
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Manufacturing Systems (1 of 2)
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Marketing and sales
Product design and engineering
Purchasing and receiving
Production planning and scheduling
Manufacturing and assembly
Tool engineering
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Manufacturing Systems (2 of 2)
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Industrial engineering and process design
Finished goods inspection and test
Packaging, shipping, and warehousing
Installation and service
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Quality in Business Support
Functions for Manufacturing
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General management
Finance and accounting
Human resource management
Quality assurance
Legal services
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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).”
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Components of Service
System Quality
• Employees
• Information technology
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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The Ritz-Carlton Hotel Co.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Quality Issues in Health Care
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Avoidable errors
Underutilization of services
Overuse of services
Variation in services
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Quality in the Public Sector
• Quality in the Federal Government
• State and Local Quality Efforts
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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