1. Growth of Modern Quality Management
Manufacturing
quality
Improved
product designs
Service
Performance
excellence

2. Manufacturing Systems
Product design and engineering
Purchasing and receiving
Production planning and scheduling
Manufacturing and assembly
Tool engineering
Industrial engineering and process design
Finished goods inspection and test
Packaging, shipping, and warehousing
Installation and service

3. Quality in Business Support Functions for Manufacturing
General management
Marketing and sales
Finance and accounting
Human resource management
Quality assurance
Legal services

4. 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).”

5. Critical Differences between Service and Manufacturing
Customer needs and performance standards are more difficult to identify and measure
Services require a high degree of customization
Services are produced & consumed simultaneously
Customers are often involved in actual process
Services are often more labor-intensive
Handle large numbers of transactions

6. Key Components of Service System Quality
Employees
Information technology

7. The Ritz-Carlton Hotel Co.

8. 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 health care organizations

9. Quality Issues in Health Care
Avoidable errors and abuses
Underutilization of services
Overuse of services
Variation in services
Customer satisfaction
Cost reduction

10. 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
Univ. of Wisconsin-Stout

11. Higher Education as a Production System
Design and
Redesign
Consumer
research
Suppliers:
families, high
schools, colleges,
business
Customers:
business, families,
society, students
Inputs:
students
faculty
Processes
Teaching, counseling,
scientific research
Outputs:
able students
new knowledge

12. Quality in the Public Sector
Quality in the Federal Government
State and Local Quality Efforts