10 Pages deadline 5 march ( Need In budget )
fariha
Chapter1-IntrotoQuality21.pptxChapter 1
Introduction to Quality
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 10E, © 2017 Cengage Publishing,
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The Business Imperative
“The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.”
- William Cooper Procter
Quality, productivity, and cost remain imperatives for modern organizations.
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Importance of Quality
Quality is uniquely positioned to accelerate organizational growth through better execution and alignment
Quality provides the voice of the customer critical to developing innovative products and services.
Quality can provide an organization with a competitive edge
“No quality, no sales. No sales, no profit. No profit, no jobs.”
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Quality Profile – Motorola, Inc.
Leader in the U.S. quality revolution during the 1980s
Pioneer in continual reduction of defects and cycle times
Exceptional practices in managing human assets, sharing data and information with employees, customers, and suppliers, and aligning all its business processes with key organizational objectives.
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Quality Profile – PricewaterhouseCoopers Public Sector Practice
Business advisory services, including risk consulting, management consulting, and technology consulting.
Four strategic goals focused on profit, workforce, customers, and operations, which are aligned to strategic objectives, strategic advantages, strategic challenges, short- and long-term plans, and performance projections/targets.
High customer loyalty and low workforce turnover results.
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Defining Quality
Perfection
Consistency
Eliminating waste
Fast delivery
Compliance with policies and procedures
Providing a good, usable product
Doing it right the first time
Delighting or pleasing customers
Total customer service and satisfaction
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Formal Definitions of Quality
Transcendent Perspective: excellence
Product Perspective: quantities of product attributes
User Perspective: fitness for intended use
Value Perspective: quality vs. price
Manufacturing Perspective: conformance to specifications
Customer Perspective: meeting or exceeding customer expectations
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Customers
Consumers
Ultimate buyers of goods and services
External customers
Business-to-business
Internal customers
Anyone who receives goods or services from someone else within an organization
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History of Quality Management (1 of 4)
Ancient History
Zhou Dynasty in China
The Age of Craftsmanship
Skilled workers during the Middle Ages
Industrial Revolution
Early 20th Century
Separate quality departments
Ford Motor Company
Statistical methods and quality assurance
Professional societies and publications
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History of Quality Management (2 of 4)
Post World War II
Evolution of quality management in Japan
W. Edwards Deming and Joseph Juran
U.S. “Quality Revolution”
Quality crisis around 1980
Growth of product quality awareness in manufacturing industries
Rapid Growth in Business
Malcolm Baldrige National Quality Award (1987)
Books, consulting, training
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History of Quality Management (3 of 4)
From Product Quality to Total Quality Management
“Little Q” vs. “Big Q” and TQM
Early Management Failures
Cynicism and disinterest
“No, TQM isn’t dead. TQM failures just prove that bad management is still alive and kicking.”
Performance Excellence
Focus on customer value, organizational sustainability, improvement of effectiveness and capabilities, and organizational and personal learning
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History of Quality Management (4 of 4)
Emergence of Six Sigma
a customer-focused, results-oriented approach to business improvement
Globalization of Quality
National quality efforts
No significant differences among regions around the world
Current and future challenges
Continue to apply the principles of quality and performance excellence.
Quality is “a race without a finish line.”
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Growth of Modern Quality Management
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Manufacturing
quality
Improved
product designs
Service
quality
Performance
excellence
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Contemporary Influences on Quality
Global Responsibility
Consumer Awareness
Globalization
Increasing Rate of Change
Workforce of the Future
Aging Population
Twenty-first Century Quality
Innovation
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Quality in Marketing
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Marketing and sales personnel are responsible for determining the needs and expectations of consumers.
Quality in Product Design
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Product design and engineering functions develop technical specifications for products and production processes to meet the requirements determined by the marketing function.
Quality in Purchasing
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A purchasing agent should not simply be responsible for low-cost procurement, but should maintain a clear focus on the quality of purchased goods and materials.
Quality in Production Planning & Scheduling
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Poor quality often results from time pressures caused by insufficient planning and scheduling.
Quality in Manufacturing and Assembly
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Both technology and people are essential to high-quality manufacturing.
Quality in Process Design
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Manufacturing processes must be capable of producing output that meets specifications consistently.
Quality in Finished Goods Inspection and Testing
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The purposes of final product inspection are to judge the quality of manufacturing, to discover and help to resolve production problems that may arise, and to ensure that no defective items reach the customer.
Quality in Installation and Service
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Service after the sale is one of the most important factors in establishing customer perception of quality and customer loyalty.
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).”
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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
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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
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Components of Service Quality
People
“If we take care of our people, they will take care of our customers.”
Technology
Computers and information technology
E-commerce
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Quality in Business Support Functions
Finance and Accounting
Budgeting, cost of quality
Legal Services
Liability
Quality Assurance
Coaching and special studies
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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
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Quality and Business Results
Hendricks and Singhal study of quality award winners
Performance results of Baldrige Award recipients
Example: The overall Net Promoter (NP) scores (a loyalty metric defined by the level of repeat sales and referrals) for MEDRAD, a manufacturer of medical imaging devices, were consistently 60 percent or higher compared to the 50 percent or higher marks for other organizations nationwide. MEDRAD’s global customer satisfaction ratings using the NP system steadily increased from 50 percent to 63 percent, surpassing the best-in-class benchmark of 50 percent.
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Quality and Personal Values
Personal initiative has a positive impact on business success
Quality-focused individuals often exceed customer expectations
Quality begins with personal attitudes
Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
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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!).
