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Total Quality in Organizations

Quality

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Brandon Hill
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102 views38 pages

Total Quality in Organizations

Quality

Uploaded by

Brandon Hill
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Total Quality in

Organizations

Growth of Modern Quality


Management

Performance
excellence

Service
quality

Improved
product designs
Manufacturing
quality

Key Idea
As consumer expectations have risen, a
focus on quality has permeated other key
sectors of the economy, most notably
health care, education, not-for-profits,
and government.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

Systems Thinking
A system is a set of 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.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

Key Idea
Successful management relies on a
systems perspective, one of the most
important elements of total quality.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

Manufacturing Systems (1 of 2)

Marketing and sales


Product design and engineering
Purchasing and receiving
Production planning and scheduling
Manufacturing and assembly
Tool engineering

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

Manufacturing Systems (2 of 2)
Industrial engineering and process
design
Finished goods inspection and test
Packaging, shipping, and warehousing
Installation and service

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

Key Idea
Traditional quality assurance systems in
manufacturing focus primarily on technical
issues such as equipment reliability,
inspection, defect measurement, and
process control.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

Relationships in a Typical
Manufacturing System (Fig.2.1)

Quality in Marketing
Marketing and sales personnel are
responsible for determining the needs
and expectations of consumers.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

10

Quality in Product
Design
Product design and engineering functions
develop technical specifications for
products and production processes to
meet the requirements determined by the
marketing function.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

11

Quality in Purchasing
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.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

12

Quality in Production
Planning & Scheduling
Poor quality often results from time
pressures caused by insufficient planning
and scheduling.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

13

Quality in Manufacturing
and Assembly
Both technology and people are essential
to high-quality manufacturing.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

14

Quality in Production
Planning & Scheduling
Poor quality often results from time
pressures caused by insufficient planning
and scheduling.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

15

Quality in Process
Design
Manufacturing processes must be
capable of producing output that meets
specifications consistently.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

16

Quality in Finished Goods Inspection


and Testing
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.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

17

Quality in Installation and Service


Service after the sale is one of the most
important factors in establishing customer
perception of quality and customer
loyalty.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

18

Quality in Business Support


Functions for Manufacturing
Finance and accounting
Quality assurance
Legal services

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

19

Key Idea
Every manager is responsible for
studying and improving the quality of the
process for which he or she is
responsible; thus, every manager is a
quality manager.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

20

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).

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

21

Key Idea
The American Management Association
estimates that the average company
loses as many as 35 percent of its
customers each year, and that about twothirds of these are lost because of poor
customer service.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

22

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

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

23

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
MANAGING FOR QUALITY AND
PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

24

Key Idea
These differences make it difficult for
many service organizations to apply total
quality principles, and foster misguided
perceptions that quality management
cannot be effectively accomplished in
services.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

25

Components of Service System


Quality
Employees
Information technology

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

26

Key Idea
Researchers have repeatedly
demonstrated that when service employee
job satisfaction is high, customer
satisfaction is high, and that when job
satisfaction is low, customer satisfaction is
low.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

27

Key Idea
Information technology is essential for
quality in modern service organizations
because of the high volumes of information
they must process and because customers
demand service at ever-increasing speeds.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

28

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

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

29

Quality Issues in Health Care

Avoidable errors
Underutilization of services
Overuse of services
Variation in services

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

30

Key Idea
Although the national health care system
as a whole may need a sweeping
overhaul, many individual providers have
turned toward quality as a means of
achieving better performance and
customer satisfaction.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

31

Quality in Education
Koalaty Kid
Active involvement of whole school
community
Committed leadership
System for continuous improvement
Environment that celebrates success
MANAGING FOR QUALITY AND
PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

32

Quality in Higher Education


Business plays an important role in
fostering quality improvement efforts in
higher education by transferring
knowledge and expertise on quality
processes and implementation practices.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

33

Academic Quality Improvement


Project (AQIP)
AQIP criteria focuses on institutional practices for
helping students learn, accomplishing other
distinct objectives, understanding student and
stakeholder needs, valuing people, leading and
communicating, supporting institutional
operations, measuring effectiveness, planning
continuous improvement, and building
collaborative relationshipsall of which are key
elements of TQ.
MANAGING FOR QUALITY AND
PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

34

Quality in Small Business and Not-forProfits


Slow to adopt quality approaches
General lack of understanding and knowledge
about quality
Focus on sales and market growth, cash flow, and
routine fire fighting
Lack of resources for formal quality systems

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

35

Key Idea
Perhaps the most important factor in
successful quality initiatives in small
businesses is the recognition by the CEO
or president that a quality focus can be
beneficial and lead to achieving
organizational goals.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

36

Quality in the Public Sector


Quality in the Government
Public Quality Institute
National Quality Award

State and Local Quality Efforts

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

37

Key Idea
Quality concepts and principles are
universal and can be applied in all types
of organizations. The difficulty, of
course, is developing an infrastructure
to make it happen and the discipline to
sustain efforts over time.

MANAGING FOR QUALITY AND


PERFORMANCE EXCELLENCE, 7e, 2008
Thomson Higher Education Publishing

38

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