Chapter 2

1
Chapter 2 Total Quality in Organizations

• Manufacturing / Service
• Education, Health Care, Small Businesses, Public
  Sector

2
Types of Organizations

• Manufacturing
• Service
• Special service cases
• Health Care
• Education
• Public Sector (Government)
• Other

3
Manufacturing - 1

• Marketing
• Product Development
• Materials Management
• Purchasing (Procurement)
• Production Planning and Control
• Production
• Tooling

4
Manufacturing - 2

• Industrial Engineering
• Process Design
• Final Test and Inspection
• Logistics
• Packaging
• Shipping
• Warehousing
• Installation and service

5
Manufacturing vs. Service
Factor Manufacturing Service
Output Tangible Intangible
Customer interaction Limited Fairly high
Labor content Fairly Low Fairly high
Input uniformity High Low
Output uniformity High Low
Productivity measure Easy Difficult
Quality improvement Fairly easy Difficult
6
Service - 1

• Customer requirements more difficult to specify
• Impact of lost customers
• Input variation
• Output variation
• Quality improvement activities

7
Service - 2

• Key service elements
• Employees
• Information technology
• Quality more difficult to achieve in service
• Wrong to reach conclusion that quality is not
  posssible

8
Health Care - 1

• Joint Commission on Accreditation of Healthcare
  Organizations (JCAHO)
• National Committee for Quality Assurance (NCQA)
• Institute for Healthcare Improvement (IHI)
• Inclusion of health care organizations in the
  Baldrige Awards

9
Health Care - 2

• Impact of poor quality
• Rising costs
• Misdiagnosis
• Unnecessary treatment
• Appropriate treatment not given
• Death
• Individual providers making progress in improving
  quality

10
Education - 1

• Example of quality in education Koalaty
  Kid
• Business/higher education partnerships
• The Academic Quality Improvement Project (AQIP)
  (next slide)
• Inclusion of education organizations in the
  Baldrige Awards

11
Education 2 (AQIP criteria)

• Help students learn
• Accomplish other district objectives
• Understand student and other stakeholder needs
• Value people
• Lead and communicate
• Support institutional operations
• Measure effectiveness
• Plan continuous improvement
• Build collaborative relationships

12
Education 3 (SJSU)

• Quality Policy Divn of Finance Admin.
• The employees of the Administration and Finance
  Division commit to deliver prompt, exceptional
  service, and reliable, useful information through
  clear, responsive interchange with our
  customers.
• SJSU Strategic Planning Goals (Quality)
• http//www.sjsu.edu/strategicplan/
• Click on Goals 2010

13
Public Sector

• Federal Government
• Federal Quality Institute
• Presidents Quality Award
• State and Local Government
• California http//www.calepa.ca.gov/publications/
  Quality/Model.pdf
• San Jose http//sanjoseca.gov/quest/

14
Small Businesses / Non-Profits

• Slower than larger commercial organizations to
  embrace quality
• Emphasis is on sales and market growth, cash
  flow, responding to problems (rather than
  preventing them)
• Limited resources available (people, knowledge,
  time)
• Requires leadership from the top