1. Total Quality Management BUS 3 – 142 Strategic Quality Management Jan 31, 2013

2. Designing and Assuring Quality
Achieving quality results require INTENTIONAL planning and execution
A business aligns its quality strategy with its overall strategy
Differentiation on Quality and features
Command price premiums
If competing on price, must attack costs and productivity – improved quality address both
Organizational Leaders create the atmosphere and priority for quality
Quality is the RESULT of coordinated, fact-based, planning,
execution, problem solving, and continuous improvement

3. Deming’s “Plan-Do-Check-Act”
"Continuous improvement is better than delayed perfection." - Mark Twain

4. An Environment and Culture for Quality
The right LEADERSHIP is critical to building & sustaining a Quality organization
Establish quality as a “Way of Life” and not as a project or fad
Keep activities focused on “superordinate” goals
Customer and organization long term success
Honest and respectful work environment
Create an environment for Learning
Provide time and dollars for Training
Encourage diversity of opinions and problem solving approaches
Plan-Do-Check-Act
Be patient and don’t expect immediate results
If employees are asked to make suggestions, implement the ideas that are offered
Follow up to ensure results are achieved or if additional measures may be required

5. Beware of goals that are really “Wants” or Wishes”
When goals are introduced without the systems, processes, and resources to achieve them, one of three outcomes will follow:
People will achieve the goals and positive results
People will distort the data
People will distort the system
Adapted from Donald Wheeler in Foster, Quality Management, Fifth Edition, Prentice Hall

6. Quality and Productivity
A ratio of Inputs and Outputs
“Total-factor” productivity
Improvement projects sometimes reduce productivity in the early stages, before the longer term results are achieved
Learning curve
Resistance to change
“One step back for two steps forward”
Measure against objective standards
Yields
Cycle time
Inventory
Profit

7. Money must be spent to enable Quality
Like any other business process, managing quality requires
investment and incurs costs. Diligent business case development,
project management, and cost management are necessary.

8. Quality Cost Model (“Lundvall-Juran” Model)
Balances Prevention Costs and Failure Costs.
Can be useful in some cases, but NOT in matters of Safety or
other risk to Human Life
Foster, Quality Management, Fifth Edition, Prentice Hall

9. Failure Costs (Table 4-4)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

10. Appraisal Costs (Table 4-3)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

11. Costs of Prevention (Table 4-2)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

12. Individual Leadership and Quality
As you develop EXPERTISE and CONFIDENCE in your profession,
you become more equipped to provide the vision, direction,
coaching, and challenge to your teams and organizations
When people look up to you, and want to follow you,
give them a GOOD REASON to follow

13. Individual Leadership and Quality
Pick a leadership style that fits your personality and preferences
Don’t assume that being “the boss” is a good enough reason to be followed
Power of Expertise
Be excellent at the content of the work being done by the people you lead
Use your leverage as a skilled leader to make a bigger difference over a larger footprint
Equip and enable your team to do more than you could possibly do yourself
Understand how Rewards and Feedback influence Performance & Quality
Don’t be afraid to communicate unpleasant news – it is feedback for better performance
Mix positive comments with opportunities for improvement
Recognize that not all people are self-motivated, or are motivated by the same levers
Measure the right things

14. Leadership Skills (Table 4-1)
* Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

15. Supply Chain Strategic Quality Planning
Foster, Quality Management, Fifth Edition, Prentice Hall

16. Supply Chain Strategic Quality Planning: Logistics
When shipments take place
Modes of transportation
How shipping practices can be optimized
Outsource warehousing and fulfillment or keep in-house
Product packaging
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

17. Supply Chain Strategic Quality Planning: Suppliers
Preferred suppliers
Supplier selection
Supplier development
Sole sourcing / single sourcing / multiple sourcing
Technology linkage
Global sourcing
Supplier input to design
Supplier cost cutting
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

18. Supply Chain Strategic Quality Planning: Inventory Mgmt
Distribution Network
Cost
Service levels
Lead Times
Product Life Cycles
Perishable and Hazardous Material
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

19. Supply Chain Strategic Quality Planning: Information Flows
Data requirements
System requirements
Security
Reliability
Visibility upstream and downstream
Access upstream and downstream
Timing and governance
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

20. Supply Chain Strategic Quality Planning: Products
Differentiation with competition
Variety
Manufacturability
Components
Life cycles
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall

21. Supply Chain Strategic Quality Planning: Services
Service definition along the supply chain
Customer requirements
Cost
Response time
Refurbished replacements
Repair vs. Replace
Adapted from Foster, Quality Management, Fifth Edition, Prentice Hall