1. Total Quality in Organizations
Module 2
Total Quality in Organizations

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

3. Systems Thinking
A system is the functions or activities within an organization that work together for the aim of the organization.
Subsystems of an organization are linked together as internal customers and suppliers.
A systems perspective acknowledges the importance of the interactions of subsystems, not the actions of them individually.

4. Manufacturing Systems (1 of 2)
Product design and engineering
Purchasing and receiving
Production planning and scheduling
Manufacturing and assembly
Tool engineering

5. Manufacturing Systems (2 of 2)
Industrial engineering and process design
Finished goods inspection and test
Packaging, shipping, and warehousing
Installation and service

6. Manufacturing Example

7. Manufacturing Example (Cont.)

8. Quality in Business Support Functions for Manufacturing
General management (Support)
Finance and accounting (Funding)
Marketing & Sales (Feedback)
Quality assurance (Specialists)
Legal services (Compliance)

9. 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).”

10. Critical Differences between Service and Manufacturing (1 of 2)
Customer needs and performance standards are more difficult to identify and measure
Services requires a higher degree of customization and flexibility
Output is intangible

11. Critical Differences between Service and Manufacturing (2 of 2)
Services are produced and consumed simultaneously
Customers are often involved in actual process
Services are more labor-intensive than manufacturing
Services handle large numbers of transactions
Services are not realized until delivered

12. Components of Service System Quality
Employees
Information technology

13. The Ritz-Carlton Hotel Co.

14. Quality Issues in Health Care
Avoidable errors
Underutilization of services
Overuse of/Unnecessary services
Variation in services

15. Building Trust through Quality at Gerber
How do the various definitions of quality discussed in this module relate to the quality practices at Gerber?
How does Gerber exhibit the fundamental principles of total quality – customer and stakeholder focus, participation and teamwork, and a process focus and continuous improvement?

16. Building Trust through Quality at Gerber
How did quality help Gerber overcome the crisis it faced in the consumer-tampering situation? What lessons do their steps have for other companies?