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Introduction to Quality

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Presentation on theme: "Introduction to Quality"— Presentation transcript:

1 Introduction to Quality
Chapter 1 Introduction to Quality

2 Modern Importance of Quality
“The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.” - William Cooper Procter

3 Quality Assurance any action directed toward providing customers with goods and services of appropriate quality.

4 History of Quality Assurance (1 of 2)
Skilled craftsmanship during Middle Ages Industrial Revolution: rise of inspection and separate quality departments Statistical methods at Bell System Quality control during World War II Quality management in Japan

5 History of Quality Assurance (2 of 2)
Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management” Malcolm Baldrige National Quality Award (1987) Quality in service industries, government, health care, and education Current and future challenge: keep progress in quality management alive

6 Contemporary Influences on Quality
Parterning Learning systems Adaptability and speed of change Environmental sustainability Globalization Knowledge focus Customization and differentiation Shifting demographics

7 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

8 Quality Perspectives transcendent & product-based user-based
Customer Distribution products and services needs transcendent & product-based user-based manufacturing- based value-based Marketing Design Manufacturing Information flow Product flow

9 Customer-Driven Quality
“Meeting or exceeding customer expectations” Customers can be... Consumers External customers Internal customers

10 Total Quality People-focused management system
Focus on increasing customer satisfaction and reducing costs A systems approach that integrates organizational functions and the entire supply chain Stresses learning and adaptation to change Based on the scientific method

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 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 Deming’s View of a Production System
Suppliers of materials and equipment Receipt and test of materials Design and Redesign Consumer research A B C D Production, assembly inspection Tests of processes, machines, methods Distribution Consumers INPUTS PROCESSES OUTPUTS

17 Learning The foundation for improvement … Understanding why changes are successful through feedback between practices and results, which leads to new goals and approaches Learning cycle: Planning Execution of plans Assessment of progress Revision of plans based on assessment findings

18 Infrastructure, Practices, and Tools
Leadership Strategic HRM Process Data and information Planning mgt management Practices Performance Training appraisal Tools Trend chart

19 TQ Infrastructure Customer relationship management
Leadership and strategic planning Human resources management Process management Data and information management

20 Competitive Advantage
Is driven by customer wants and needs Makes significant contribution to business success Matches organization’s unique resources with opportunities Is durable and lasting Provides basis for further improvement Provides direction and motivation Quality supports each of these characteristics

21 Quality and Profitability
Improved quality of design Improved quality of conformance Higher perceived value Higher prices Lower manufacturing and service costs Increased market share Increased revenues Higher profitability

22 Evidence that Quality Impacts Business Results
General Accounting Office study of Baldrige Award applicants Baldrige stock study (see Hendricks and Singhal study of quality award winners Performance results of Baldrige Award winners

23 GAO TQ Model Product and service quality Customer satisfaction
Leadership for continuous improvement Quality systems and employee involvement Competitiveness Organization benefits Reliability On-time delivery Error/defects Overall satisfaction Customer retention Complaints Costs Cycle time Turnover Satisfaction Safety & health Productivity Market share Profits

24 Three Levels of Quality
Organizational level: meeting external customer requirements Process level: linking external and internal customer requirements Performer/job level: meeting internal customer requirements

25 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)

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