Quality Overview

1
Quality Overview

• History and Importance of Quality
• Definitions
• Quality as a Management Framework
• Quality and Competitive Advantage
• Quality and Personal Values

2
Some Examples

• Quality of automobiles
• Quality of consumer products
• Over 20,000 wrong prescriptions per year
• 500 wrong surgical operations per week
• 2000 lost articles of mail every hour
• 2 long or short landing everyday at each major
  airport
• over 10 babies dropped each day in hospital
  delivery rooms

3
History and Importance of Quality(1 of 2)

• Skilled craftsmanship during Middle Ages
• Scientific Managementearly 1990sFrederick
  Taylor rise of inspection and separate quality
  departments
• Statistical methods at Bell System
• Quality control during World War II

4
History and Importance of Quality(2 of 2)

• Quality management in Japan
• Quality awareness in U.S. manufacturing industry
  during 1980s
• Malcolm Baldrige National Quality Award (1987)
• Quality in service industries, government, health
  care, and education
• Current challenge keep progress in quality
  management alive

5
Definitions

6
Definitions of Quality

• Transcendent definition excellence
• Product-based definition quantities of product
  attributes
• User-based definition fitness for intended use
• Value-based definition quality vs. price
• Manufacturing-based definition conformance to
  specifications

7
Quality Perspectives
8
Customer-Driven Quality

• ANSI and ASQ define quality as the totality of
  features and characteristics of a product or
  service that bears on its ability to satisfy
  given needs.
• Currently many companies define quality as
  Meeting or exceeding customer expectations
• Consumers
• External customers
• Internal customers

9
Key Dimensions of Quality

• Performance
• Features
• Reliability
• Conformance

• Durability
• Serviceability
• Aesthetics
• Perceived quality

10
Quality as a Management Framework

• Total Quality---TQC, TQM, CWQC

11
Principles of Total Quality

• Customer and stakeholder focus
• Participation and teamwork
• Process focus and continuous improvement

...supported by an integrated organizational
infrastructure, a set of management
practices, and a set of tools and techniques
12
Customer and Stakeholder Focus

• Customer is principal judge of quality
• Organizations must first understand customers
  needs and expectations in order to meet and
  exceed them
• Organizations must build relationships with
  customers
• Customers and stakeholders include employees and
  society at large

13
Participation and Teamwork

• Employees know their jobs best and therefore, how
  to improve them
• Management must develop the systems and
  procedures that foster participation and teamwork
• Empowerment better serves customers, and creates
  trust and motivation
• Teamwork and partnerships must exist both
  horizontally and vertically

14
Process Focus and Continuous Improvement

• A process is a sequence of activities that is
  intended to achieve some result

15
Continuous Improvement

• Enhancing value through new products and services
• Reducing errors, defects, waste, and costs
• Increasing productivity and effectiveness
• Improving responsiveness and cycle time
  performance

16
Infrastructure, Practices, and Tools
Infrastructure
Leadership Strategic HRM
Process Data and information
Planning mgt.
management
Performance Training appraisal
Practices
Trend chart
Tools
17
TQ Infrastructure

• Customer relationship management
• Leadership and strategic planning
• Human resources management
• Process management
• Data and information management

18
Quality as Important Source of Competitive
Advantage

• Driven by customer wants and needs
• Makes significant contribution to business
  success
• Matches organizations unique resources with
  opportunities
• Is durable and lasting
• Provides basis for further improvement
• Provides direction and motivation

19
Quality and Profitability
20
Quality and Personal Values

• Personal initiative has a positive impact on
  business success
• Quality begins with personal attitudes
• Quality-focused individuals often exceed customer
  expectations
• Attitudes can be changed through awareness and
  effort (e.g., personal quality checklists)

21
Quality is Not!

• 100 inspection
• Management fad
• SPC
• Employee involvement
• Another excuse for a management retreat
• Only applies to manufacturing