Presentation is loading. Please wait.

Presentation is loading. Please wait.

MGT 449 Quality Management & Productivity Joseph Lewis Aguirre.

There are copies: 1
GEN 300 WS3: Research Joseph Lewis Aguirre Critical Thinking & Computer Logic.

Similar presentations


Presentation on theme: "MGT 449 Quality Management & Productivity Joseph Lewis Aguirre."— Presentation transcript:

1 MGT 449 Quality Management & Productivity Joseph Lewis Aguirre

2 Define total quality management (TQM). Compare and contrast traditional management styles with quality-focused management styles. Identify the impact of globalization on quality management. WS1: Total Quality Management

3 W. Edwards Deming's Electronic Network Joseph Juran David P. Langford Philip Crosby Peter Senge William Glasser Institute Dr. Stephen R. Covey Willard Daggett--Willard Daggett-- Larry Lezotte Quality Legends

4 –Pioneers of TQ –Introduction to Continuous Improvement –1940: World War II Economic Impact –1950: US Has Zero Competition –1960: Complacency History of TQ

5 –1970: Paralysis –1980: Wake-Up –1990: Action and Successes –2000 and Beyond? History of TQ

6 –Employee Empowerment –Data Measurement –Process Improvement –Quality Focus Definition of TQ

7 –Customer Focus –Level of Acceptable Quality –Six Sigma Concept Definition of TQ

8 –Fiscal Issues –Employee Issues –Customer Issues Effects of Poor Quality

9 –Global sourcing –Supply chain issues –Selling in foreign countries Globalization and Quality

10 Determine the relationship between an organization's process improvement plan and its strategic plan. Express the importance of leadership in relation to quality. Describe the strategic role of TQM in manufacturing, service, government, and non-profit organizations. Provide examples of techniques and tools to measure customer satisfaction. WS2: STRATEGIC PLANNING AND CUSTOMER SATISFACTION

11 Identify various types of processes. Describe how process analysis can be useful in quality improvement. Utilize quality management tools to collect and present data. Recommend quality improvement strategies based upon data collected. WS3: PROCESS ANALYSIS

12 Define variation. Explain the importance of variation in total quality management. Identify models and methodologies used for organizational process improvement. WS4: PROCESS IMPROVEMENT MODELS & METHODS

13 Summarize the requirements for implementing a quality process. Outline the steps necessary to adopt a quality management system in an organization. WS5: TOTAL QUALITY IMPLEMENTATION

14 TQM - According to Dilbert

15 Traditional approaches to improving performance focused on incremental improvement. Continuous improvement (CI) under TQM assumes that performance can be elevated on a constant basis. Incremental VS Continuous Improvement

16

17 Decision Making Framework IMPLEMENTATION OPTIONS EVALUATION GOALS RELATIVE TIME SPAN OBJECTIVES PROBLEMSOPPORTUNITIES

18 Decision Making Framework Strategic Management Executives, Directors -Transformation Tactical Management Business Unit Managers -Effective, right thing Operational Management Efficient, do thing right Decision Structure Structured Semi Structured Un Structured Information Characteristics Ad Hoc Unscheduled Summarized Infrequent Forward looking External Wide Scope Pre specified Scheduled Detailed Frequent Historical Internal Narrow Focus RELATIVE TIME SPAN Business Professionals

19 Information Age Paradox "Despite the existence of more and better information than ever before, time pressure prevents decision makers from gathering all that they need and from sharing it," -- Peter Tobia, author, "Decision Making in the Digital Age: Challenges and Responses,"

20 Values Honesty Customers Employees Safety Competitors Revenue Profits Alliances New Products New Markets Ecology Cutting Edge Image Fun Growth Family Capital Quality Social Capital Location Hedonism Risk Collaboration Centralization Creativity Other

21 ORGANIZATIONAL EFFECTIVENESS Values GOALS STRUCTURE CLIMATE ENVIRONMENT MarketplaceOther Teams Culture Competition Pressures ClarityCommitment Reward System Reporting Relationships Feedback System Behavior Norm Decision Making Competition Enthusiasm Stress Trust Involvement Flexibility CollaborationMission Philosophy Accountability

22 Generalized System Processing Control Output Input Environment System Components, Relationships, Boundaries, Interfaces, Constraints

23 Modem Communications System Control Modem Noise Info Source Destination MessageMessage Received 00100010101000110001111111000110001

24 Generalized Communications System Transmission Channel Control Receiver Transmitter Noise Info Source Destination MessageMessage Received 00100010101000110001111111000110001

25 Modem Communications System Control Modem Noise Info Source Destination MessageMessage Received 00100010101000110001111111000110001

26 Decision Making Framework Strategic Management Executives, Directors -Transformation Tactical Management Business Unit Managers -Effective, right thing Operational Management Efficient, do thing right Decision Structure Structured Semi Structured Un Structured Information Characteristics Ad Hoc Unscheduled Summarized Infrequent Forward looking External Wide Scope Pre specified Scheduled Detailed Frequent Historical Internal Narrow Focus RELATIVE TIME SPAN Business Professionals

27 Joseph Lewis Aguirre GlobalizationGlobalization

28 Globalization of Technology "New information technologies are integrating the world in global networks of instrumentality. … The first historical steps of informational societies seem to characterize them by the preeminence of identity as their organizing principle." Manuel Castells, The Rise of the Network Society (The Information Age: Economy, Society and Culture, I) (Cambridge, MA; Oxford, UK: Blackwell, 1996)

29 Globalization of Technology Global cities as points for flows of labor, capital, information, and technology. Aren't we talking about networks of cities when we talk about "globalization"? Where are non- urban regions without an infrastructure in the idea of the "global"? Saskia Sassen, Globalization and its Discontents (New York: The New Press, 1998)

30 Globalization of Technology Parallel view with Wriston's Law: "capital goes where it's wanted and stays where it's well treated". All types of capital follow this law: financial, intellectual, cultural. Globalization is really the networked matrix of capital concentrations in cities.

31 Globalization of Technology The new economy in the United States. Use of the Internet in China. The expanding markets in Latin America. Internet-fostered rivalry between the United States and Europe

32 Globalization of Technology Globalization and positioning of arguments: -globalization discussed from what socially grounded perspective? - from where about whom? Example: Chinese model of education with direct parental involvement; students now left alone to use computers and the Internet without parental control. - An effect of globalization?

33 Globalization of Technology The use of the Net to communicate local, ethnic, religious, and national cultures to a worldwide and international audience: optimistic multiculturalism, where anyone with access can participate. The worldwide diffusion of dominant cultures through the global marketplace.. as another case of hegemony, cultural imperialism.

34 Globalization of Technology (cont) The goals of global access and ubiquity of the Net require dealing with two forces, one toward technology development and diffusion, the other toward governmental and institutional controls over international interconnectivity. International business and worldwide Internet ecommerce, promoted by transnational corporations, for access to friction-free worldwide markets.

35 Globalization of Technology (cont) The general homogenization or "internationalization" of culture, favoring Western developed nations and their languages and values. In the political economy of communications, the movement toward worldwide access to communications technology and connectivity across territorial boundaries.

36 Globalization of Technology Paradox Paradox of global localization: making local identity politics a global issue through the Internet. Local identity groups using the technologies of globalization to promote political interests. For example, the Taliban in Afghanistan. (See www.taliban.com ) with a Netscape pop-up advertising window!).

37 Globalization of Technology Paradox COLA WARS: Global ResistanceCoca-Cola Employees1 FT, 1PT39,000 HQShared house in CAAtlanta 2004 Revenues$60,00021.96 B Countries of operation2>200 CEOAmit SrivastavaNeville Isdell CEOs CompensationOwn expenses$3.74 million Source: WSJ 06-07-05

38 Knowledge Explosion The need for intelligent information management is clear.

39 Bits Boxes Bandwidth Global Technological Revolution

40 Major advances in information and communications technologies ( ICT ) –Digital storage and processing of information (information) –Satellite and optical fiber transmission of information (communications) Global Technological Revolution - Origin

41 Coupling to all information and information processors Pure bits e.g. printed matter Bit tokens e.g. money State: places, things, and people State: physical networks Cyberization: interface to all bits and process information

42 Library Volume Growth 10X in 150 years

43 In 1999 in Costa Rica, Malaysia and Singapore, high-tech exports exceeded 40% of the total Transformation of Business and Markets

44

45 From 1995 – 97: Scientists in the United States co-authored articles with scientists from 173 other countries: Scientists in Brazil with 114, in Kenya with 81, in Algeria 59. Revolution in Learning and Knowledge Sharing

46 The six largest internet-based distance- learning universities in the world are located in developing countries -- Turkey, Indonesia, China, India, Thailand and Korea Revolution in Learning and Knowledge Sharing

47 Global Information Flow

48

49 Governance redefined Globalization of civil society –The Philippines: electronic advocacy network set up in response to impeachment trial Communities Empowered in New Ways

50 E-commerce, business conducted over the Internet, totaled $45 billion as recently as 1998 and an estimate in January 2000 projected it could explode to over $7 trillion as early as 2004. Wealth and Economic Growth Creation

51 Joseph Lewis Aguirre Digital Divide

52 Between countries – the global digital divide Between groups of people within countries - the domestic digital divide Digital Divide

53 2 billion people lack access to reliable electricity As much as 80% of the world's population has never made a phone call Phones and Electricity

54 More telephones in New York City than in all of rural Asia In the entire continent of Africa, there are a mere 14 million phone lines -- fewer than in either Manhattan or Tokyo. Phones and Electricity

55 More Internet accounts in London than all of Africa One in two Americans is online, compared with only one in 250 Africans. Internet Accounts and Hosts

56 http://www.riverdeep.net/current/2002/01/011402t_divide.jhtml,

57 Of all the Internet users worldwide, 60 per cent reside in North America, where a mere five per cent of the world's population reside Wealthy nations comprise some 16 per cent of the world's population, but command 90 per cent of Internet host computers. Internet Accounts and Hosts

58 Developed states: 311.2 per 1,000 Globally: 70.6 PCs per 1,000 South Asia: 2.9 per 1,000 Sub-Saharan Africa: 0.75 per 1,000 Digital Divide: PCs

59 The vast capacity of the Internet is distributed highly unevenly throughout the world. By late 2000 the bulk of Internet connectivity linked the US with Europe (56 Gbps) and, to a lesser extent, the US with the Asia-Pacific region (18 Gbps). Africa had extremely little bandwidth reaching Europe (0.2 Gbps) and the USA (0.5 Gbps) Digital Divide: BW

60 Internet access costs (as a percentage of average monthly income) –US: 1 to 2 percent –Uganda: over 100 percent –Bangladesh: 191 percent Digital Divide: Costs

61 Access costs (ISP, and telephone call costs) are almost four times as expensive in the Czech Republic and Hungary as in the United States In Bangladesh a computer costs the equivalent of eight years average pay Digital Divide: Costs

62 McConnell International "E-Business report –Europe (including Eastern Europe) and Latin America rated well –Middle East and Africa needed to significantly develop their human capital –Asia had a mixed scorecard Digital Divide: Technical Training

63 Global Perspective There are an estimated 429 million people online globally 429 million represents only 6% of the worlds entire population. 41% of the global online population is in the United States & Canada 27% of the online population lives in Europe, the Middle East and Africa (25% of European Homes are online) 20% of the online population logs on from Asia Pacific (33% of all Asian Homes are online) Only 4% of the worlds online population are in South America The United States has more computers than the rest of the world combined (Source: First Quarter 2001 Global Internet Trends, Neilsen/Netratings) Fact Sheet

64 Among highly developed nations: 61% of Internet connections are in Sweden Spain trails the list with only 20% of its homes connected. The Pew Internet and American Life Project published in Whos Not Online that 57% of those not online have no intention of going online. 33% of those people have chosen to not go online. Among the biggest reasons were lack of need (40%); no computer (33%); no interest (25%); lack of knowledge for use (25%); and general cost involved (16%). U.S. Perspective In fall of 2000, the U.S. Department of Commerce found that 51% of all U.S. homes had a computer; 41.5% of all U.S. homes had Internet access White (46.1%) and Asian American & Pacific Islander (56.8%) households continued to have Internet access at levels more than double those of Black (23.5%) and Hispanic (23.6%) households. 86.3% of households earning $75,000 and above per year had Internet access compared to 12.7% of households earning less than $15,000 per year. Nearly 65% of college graduates have home Internet access; only 11.7% of households headed by persons with less than a high school education have Internet access. Rural areas, though still lagging behind urban areas, had surpassed inner-cities in Internet availability and use: Fact Sheet (Cont)

65 infoDeV - Global program managed by the World Bank. Seeks to help developing economies fully benefit from modern information systems SDNP - assist developing countries in acquiring the capacity to access and to contribute to solutions for sustainable development via the medium of information and communication technologies DOI – Digital Opportunity Initiative, a public/private partnership of Accenture DOT Force - Digital Opportunity Task Force drafted at the G-8s Okinawa Summit. Published Digital Opportunities for All in May, 2001. International Institutional Responses

66 Personal Challenges in Knowledge Management Application of technology to business functions requires critical personal development and adaptation. Key concepts in this process are as follows: Structure influences behavior. Structure in human systems is subtle. Leverage often comes from new ways of thinking.

67 Between countries – the global digital divide Between groups of people within countries - the domestic digital divide Digital Divide

68 2 billion people lack access to reliable electricity As much as 80% of the world's population has never made a phone call Phones and Electricity

69 More telephones in New York City than in all of rural Asia In the entire continent of Africa, there are a mere 14 million phone lines -- fewer than in either Manhattan or Tokyo. Phones and Electricity

70 More Internet accounts in London than all of Africa One in two Americans is online, compared with only one in 250 Africans. Internet Accounts and Hosts

71 Of all the Internet users worldwide, 60 per cent reside in North America, where a mere five per cent of the world's population reside Wealthy nations comprise some 16 per cent of the world's population, but command 90 per cent of Internet host computers. Internet Accounts and Hosts

72 Developed states: 311.2 per 1,000 Globally: 70.6 PCs per 1,000 South Asia: 2.9 per 1,000 Sub-Saharan Africa: 0.75 per 1,000 Digital Divide: PCs

73 The vast capacity of the Internet is distributed highly unevenly throughout the world. By late 2000 the bulk of Internet connectivity linked the US with Europe (56 Gbps) and, to a lesser extent, the US with the Asia-Pacific region (18 Gbps). Africa had extremely little bandwidth reaching Europe (0.2 Gbps) and the USA (0.5 Gbps) Digital Divide: BW

74 Internet access costs (as a percentage of average monthly income) –US: 1 to 2 percent –Uganda: over 100 percent –Bangladesh: 191 percent Digital Divide: Costs

75 Access costs (ISP, and telephone call costs) are almost four times as expensive in the Czech Republic and Hungary as in the United States In Bangladesh a computer costs the equivalent of eight years average pay Digital Divide: Costs

76 McConnell International "E-Business report –Europe (including Eastern Europe) and Latin America rated well –Middle East and Africa needed to significantly develop their human capital –Asia had a mixed scorecard Digital Divide: Technical Training

77 Global Perspective There are an estimated 429 million people online globally 429 million represents only 6% of the worlds entire population. 41% of the global online population is in the United States & Canada 27% of the online population lives in Europe, the Middle East and Africa (25% of European Homes are online) 20% of the online population logs on from Asia Pacific (33% of all Asian Homes are online) Only 4% of the worlds online population are in South America The United States has more computers than the rest of the world combined (Source: First Quarter 2001 Global Internet Trends, Neilsen/Netratings) Fact Sheet

78 Among highly developed nations: 61% of Internet connections are in Sweden Spain trails the list with only 20% of its homes connected. The Pew Internet and American Life Project published in Whos Not Online that 57% of those not online have no intention of going online. 33% of those people have chosen to not go online. Among the biggest reasons were lack of need (40%); no computer (33%); no interest (25%); lack of knowledge for use (25%); and general cost involved (16%). U.S. Perspective In fall of 2000, the U.S. Department of Commerce found that 51% of all U.S. homes had a computer; 41.5% of all U.S. homes had Internet access White (46.1%) and Asian American & Pacific Islander (56.8%) households continued to have Internet access at levels more than double those of Black (23.5%) and Hispanic (23.6%) households. 86.3% of households earning $75,000 and above per year had Internet access compared to 12.7% of households earning less than $15,000 per year. Nearly 65% of college graduates have home Internet access; only 11.7% of households headed by persons with less than a high school education have Internet access. Rural areas, though still lagging behind urban areas, had surpassed inner-cities in Internet availability and use: Fact Sheet (Cont)

79 Joseph Lewis Aguirre Domestic and International Response

80 Avoiding weapons manufacturers, tobacco, alcohol, gabling. Womens Equity Fund -Advance status of women in the workplace Timothy Plan - Avoids companies contrary to Judeo- Christian principles Amana Funds - investment per Islamic principles MFS Union Standard - Pro labor issues. Socially Responsible Funds

81 Socially responsible funds perform no better than other funds. Socially responsible investors are not focused on short term performance. ExpensesMinimum Neuberger Soc. Responsible1.06%$1,000 New Covenant Bal. Income1.13500 New Covenant Growth1.13500 Parnassus Equity Income0.992,000 Pax World Balanced0.95250 TIAA-CREF Social Choice0.272,500 Vanguard Calvert Index0.253,000 Socially Responsible Funds Source: Morningstar Inc.

82 infoDeV - Global program managed by the World Bank. Seeks to help developing economies fully benefit from modern information systems SDNP - assist developing countries in acquiring the capacity to access and to contribute to solutions for sustainable development via the medium of information and communication technologies DOI – Digital Opportunity Initiative, a public/private partnership of Accenture DOT Force - Digital Opportunity Task Force drafted at the G-8s Okinawa Summit. Published Digital Opportunities for All in May, 2001. International Institutional Responses

83 Personal Challenges in Knowledge Management Application of technology to business functions requires critical personal development and adaptation. Key concepts in this process are as follows: Structure influences behavior. Structure in human systems is subtle. Leverage often comes from new ways of thinking.

84 Irvine, Matt, Global Cyberculture Reconsidered: Cyberspace, Identity, and the Global Informational City, 1999 retrieved June 23, 2005 from http://www.georgetown.edu/faculty/irvinem/articles/globalculture.html http://www.georgetown.edu/faculty/irvinem/articles/globalculture.html Irvine, Matt, Georgetown University, 1999, Globalization and the Internetworked Worked World, retrieved June 23, 2005 from http://cct.georgetown.edu/curriculum/505-99/globalization.html. http://cct.georgetown.edu/curriculum/505-99/globalization.html Irvine, Matt, 2004, Introduction to the Economics of Art and the Art Market retrieved June 23, 2005 from http://www.georgetown.edu/faculty/irvinem/visualarts/ArtMarket/ArtMark etEconomics.html. http://www.georgetown.edu/faculty/irvinem/visualarts/ArtMarket/ArtMark etEconomics.html References

85 Joseph Lewis Aguirre Multinational Customer

86 Business Management for The Multinational Customer Globalization of technology is bringing diverse cultures together into a common business value chain raising with consequent issues: The effects of cultural and language differences on consensus and collaboration. Standardization of business processes. Real-time status for business transactions. Maturity of the technological environment.

87 Quality is conformance to requirements --Philip Crosby, Quality is Free 1979 The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. --ASQC Quality - Defined

88 User-based: In the eyes of the beholder Manufacturing-based: Right the first time Product-based: Precise measurement Quality - Defined

89 Conformance to valid customer requirements Goalpost View: Acceptable as long as it is within acceptable limits A predictable degree of uniformity and dependability, at low cost and suited to the market. Quality - Defined

90 Loss Function Probability of size Lose Function

91 An emphasis on Quality that encompasses the entire company Continuous Improvement Employee empowerment, quality circles Benchmarking - best at similar activities, even if in different industries Just In Time - requires quality of suppliers TQM Tools - allow you to measure progress TQM

92 Quality of Design –Quality characteristics suited to needs and wants of a market at a given cost –Continuous, never-ending improvement Quality of Conformance –Predictable degree of uniformity and dependability Quality of Performance –How is product performing in the marketplace? Quality Dimension

93 Performance Aesthetics Special features: convenience, high tech Safety Reliability Durability Perceived Quality Service after sale Quality Dimension

94 Internal failure costs – before delivered to customers External failure costs – after delivered Appraisal costs – assessing conformance to standards Prevention Costs – reducing potential for quality problems Cost of Quality

95 Lower costs (less labor, rework, scrap) Market Share Reputation Product liability International competitiveness Importance of Quality

96 1920s Bell Labs: Acceptance Sampling Want to guarantee certain % defective, How many do we need to sample? Supposedly 2% defective, we test 40 and 2 are bad, are more than 2% bad? Quality Through History

97 Does not add value Inspectors distrusted by workers Increase quality and reduce need for inspectors Poka-yoke - mistake proof Have workers do own inspecting –Before – are inputs good? –During – process happening properly? –After – conforms to standards? Quality Through History- Inspect

98 k1 = Cost of inspecting one item k2 = Cost to dismantle, repair, reassemble and test a good or service that fails because of a bad input p = average fraction defective of incoming materials If k1/k2 > p inspect 0% If k1/k2 < p inspect 100% If k1/k2 = p either 0% or 100%. If p is based on not a lot of data, use 100% Quality Through History- Inspect

99 Statistics professor, specializing in acceptance sampling Went to Japan after WW II Helped Japanese focus on and improve quality System (not employees) is cause of poor quality Fourteen Points W. Edwards Deming

100 1.Intrinsic & extrinsic motivation 2.Management needs to improve and innovate processes to create results 3.Optimize the system toward its aim 4.Cooperation is better than competition Demings Paradigms

101 Went to Japan in 1951 Quality begins by knowing what customers want 80% of defects are controllable –Quality Planning –Quality control –Quality improvement Joseph Juran

102 Martin Marietta, ITT, starting in 1960s Quality is Free Management must be firmly behind any quality plans Do it right the first time Philip B. Cosby


Download ppt "MGT 449 Quality Management & Productivity Joseph Lewis Aguirre."

Similar presentations


Ads by Google