One: The Total Quality Approach to Quality Management

2. One: The Total Quality Approach to Quality Management • MAJOR TOPICS • What is Quality? • The Total Quality Approach Defined • Two Views of Quality • Key Elements of Total Quality • Total Quality Pioneers • Keys to Total Quality Success • How is Six Sigma Achieved? • The Future of Quality Management

3. One: The Total Quality Approach to Quality Management • Quality has been defined in a number of ways. When viewed from a consumer’s perspective, it means meeting or exceeding customer expectations.

4. One: The Total Quality Approach to Quality Management • Total quality is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments.

5. One: The Total Quality Approach to Quality Management • Key characteristics of the total quality approach are as follows: strategically based, customer focus, obsession with quality, scientific approach, long-term commitment, teamwork, employee involvement and empowerment, continual process improvement, bottom-up education and training, freedom through control, and unity of purpose.

6. One: The Total Quality Approach to Quality Management • The rationale for total quality can be found in the need to compete in the global marketplace. Countries that are competing successfully in the global marketplace are seeing their quality of living improve. Those that cannot are seeing theirs decline. • W. Edward Deming is best known for his Fourteen Points, the Deming Cycle, and the Seven Deadly Diseases.

7. One: The Total Quality Approach to Quality Management • Joseph M. Juran is best known for Juran’s Three Basic Steps to Progress, Juran’s Ten Steps to Quality Improvement, the Pareto Principle, and the Juran Trilogy.

8. One: The Total Quality Approach to Quality Management • Common errors made when starting quality initiatives include senior management delegation and poor leadership; team mania; the deployment process; a narrow, dogmatic approach; and confusion about the differences among education, awareness, inspiration, and skill building.

9. One: The Total Quality Approach to Quality Management • Trends affecting the future of quality management include demanding global customers, shifting customer expectations, opposing economic pressures, and new approaches to management.

10. One: The Total Quality Approach to Quality Management • The American Society for Quality (ASQ) offers certifications in a variety of disciplines including Manager of Quality/Organizational Excellence, Quality Engineer, Reliability Engineer, Software Quality Engineer, Quality Auditor, Six Sigma Black Belt, Six Sigma Green Belt, Quality Technician, Calibration Technician, Quality Improvement Associate,…

11. One: The Total Quality Approach to Quality Management • …Quality Inspector, Quality Process Analyst, Hazard Analysis and Critical Point Auditor, Biomedical Auditor, and Pharmaceutical GMP Professional.

12. Two: Quality and Global Competitiveness • MAJOR TOPICS • The Relationship between Quality and Competitiveness • Cost of Poor Quality • Competitiveness and the U.S. Economy • Factors Inhibiting Competitiveness • Comparisons of International Competitors • Human Resources and Competitiveness

13. Two: Quality and Global Competitiveness • Characteristics of World-Class Organizations • Management by Accounting, Antithesis of Total Quality • U.S. Companies: Global Strengths and Weaknesses • Quality Management Practices in Asian Countries.

14. Two: Quality and Global Competitiveness • The relationship between quality and competitiveness can be summarized as follows: In a modern global marketplace, quality is the key to competitiveness.

15. Two: Quality and Global Competitiveness • The costs of poor quality include the following: waste, rejects, retesting, rework, customer returns, inspection, recalls, excessive overtime, pricing errors, billing errors, excessive turnover, premium freight costs, development cost of the failed product, field service costs, overdue receivables, handling complaints, expediting, system costs, planning delays,…

16. Two: Quality and Global Competitiveness • …late paperwork, lack of follow-up, excess inventory, customer allowances, and unused capacity. • The United States came out of World War II as the only major industrialized nation with its manufacturing sector completely intact. Germany and Japan were devastated by damage during the war.

17. Two: Quality and Global Competitiveness • They rebuilt their manufacturing bases on the assumption that to compete globally, they would have to produce goods of world-class quality. That strategy helped them recover and become world leaders in manufacturing. • Several factors can inhibit competitiveness, including those related to business and government, family, and education.

18. Two: Quality and Global Competitiveness • When making comparisons among internationally competing countries, the following indicators are usually used: standard of living, trade and export growth, and manufacturing productivity.

19. Two: Quality and Global Competitiveness • The most important key in maximizing competitiveness is the human resource. Following World War II, this was the only resource that Germany and Japan had to draw on. Consequently, they built economic systems that encourage private employers to make business decisions that emphasize improved productivity and quality, rather than price.

20. Three: Strategic Management: Planning and Execution for Competitive Advantage • MAJOR TOPICS • What is Strategic Management? • Competitive Strategy • Core Competencies and Competitive Advantage • Components of Strategic Management • Strategic Planning Overview • Creative Thinking in Strategic Planning • Conducting the SWOT Analysis

21. Three: Strategic Management: Planning and Execution for Competitive Advantage • Developing the Vision • Developing the Mission • Developing the Guiding Principles • Developing Broad Strategic Objectives • Developing Specific Tactics (Action Plan) • Executing the Strategic Plan • Strategic Planning in Action: A “Real World” Case

22. Three: Strategic Management: Planning and Execution for Competitive Advantage • Strategies that organizations can adopt for gaining a sustainable competitive advantage are cost leadership, differentiation, and market-niche strategies. • Core competencies are things an organization dose so well they can be viewed as providing a competitive advantage.

23. Three: Strategic Management: Planning and Execution for Competitive Advantage • Strategies are approaches adopted by organizations to ensure successful performance in the marketplace.

24. Three: Strategic Management: Planning and Execution for Competitive Advantage • Strategic management is management that bases all actions, activities, and decisions on what is most likely to ensure successful performance in the marketplace. The two major components of strategic management are strategic planning and strategic execution.

25. Three: Strategic Management: Planning and Execution for Competitive Advantage • Part of strategic planning is thinking creatively to eliminate “sacred cows” that work against competitiveness. • Strategic planning is the process whereby organizations develop their vision, mission, guiding principles, broad objectives, and tactics for accomplishing the broad objectives.

26. Three: Strategic Management: Planning and Execution for Competitive Advantage • An organization’s vision is its guiding force, the dream of what it wants to become and its reason for being. • An organization’s mission describes who an organization is, what it does, and where it is going.

27. Three: Strategic Management: Planning and Execution for Competitive Advantage • An organization’s guiding principles establish the framework within which it will pursue its mission. Together, the guiding principles summarize an organization’s value system, the things it believes are most important.

28. Three: Strategic Management: Planning and Execution for Competitive Advantage • An organization’s broad strategic objectives translate its mission into more specific terms that represent actual targets at which the organization aims. The objectives are more specific than the mission, but they are still broad.

29. Three: Strategic Management: Planning and Execution for Competitive Advantage • Tactics are well defined, finite projects and activities undertaken for the purpose of specific desired outcomes in support of the broad objectives. • Even the best strategic plan will serve no purpose unless it is effectively executed. To promote successful execution of strategies, organizations should undertake the following activities:

30. Three: Strategic Management: Planning and Execution for Competitive Advantage • Communicate, build capabilities, establish strategy-supportive stimuli, eliminate administrative barriers, identify advocates and resisters, exercise strategic leadership, and monitor and adjust as needed.

31. Four: Quality Management, Ethics, and Corporate Social Responsibility • MAJOR TOPICS • Definition and Overview of Ethics • Trust and Total Quality • Values and Total Quality • Integrity and Total Quality • Responsibility and Total Quality • Manager’s Role in Ethics • Organization’s Role in Ethics

32. Four: Quality Management, Ethics, and Corporate Social Responsibility • Handling Ethical Dilemmas • Ethics Training and Codes of Business Conduct • Models for Making Ethical Decisions • Beliefs versus Behavior: Why the Disparity? • Ethical Dilemmas: Cases • Corporate Social Responsibility Defined

33. Four: Quality Management, Ethics, and Corporate Social Responsibility • Ethics is about doing the right thing within a moral framework. The most common impediment to ethical conduct is human nature because people tend to behave according to perceived personal interest.

34. Four: Quality Management, Ethics, and Corporate Social Responsibility • Trust is a critical element of ethics, which, in turn, makes ethics critical in total quality. Many of the fundamental elements of total quality depend on trust and ethical behavior, including communication, interpersonal relations, conflict management, problem solving, teamwork, employee involvement and empowerment, and customer focus.

35. Four: Quality Management, Ethics, and Corporate Social Responsibility • Trust can be built by being loyal to those not present, keeping promises, and sincerely apologizing when necessary. • Values are those core beliefs that guide our behavior. Individuals and organizations apply their knowledge and skills most willingly to efforts in which they believe.

36. Four: Quality Management, Ethics, and Corporate Social Responsibility • Managers should work to establish an environment in which values that lead to ethical behavior and values that lead to peak performance are the same. • Integrity requires honesty, but it is more than just honest. Integrity is a combination of honesty and dependability. People with integrity can be counted on to do the right thing, do it correctly, and do it on time.

37. Four: Quality Management, Ethics, and Corporate Social Responsibility • Accepting responsibility is part of ethical behavior. People who pass blame are not behaving ethically. In a total quality setting, people are responsible for their performance. When speaking of their organization, ethical people say, “we” instead of “they.”

38. Four: Quality Management, Ethics, and Corporate Social Responsibility • Managers play a key role in ethics in an organization. They are responsible for setting an example of ethical behavior, helping employees make ethical choices, and helping employees follow through and behave ethically after making an ethical choice.

39. Four: Quality Management, Ethics, and Corporate Social Responsibility • In carrying out these responsibilities, managers can use the best-ratio approach, black-and-white approach, and full-potential approach. • The organization’s role in fostering ethical behavior includes creating an ethical environment and setting an ethical example. Key in creating an ethical environment is having a comprehensive ethics policy.

40. Four: Quality Management, Ethics, and Corporate Social Responsibility • Key in setting an example is following the policy, expecting all employees to follow the policy, and rewarding those who do. • In handling ethical dilemmas, managers should select the option that is most likely to build trust, integrity, and a sense of responsibility and that is most likely to pass the various ethics tests (i.e., front-page, morning-after, etc.).

41. Four: Quality Management, Ethics, and Corporate Social Responsibility • People who believe in ethical values will sometimes make unethical decisions because of self-interest, self-protection, conflicting values, or because they see the benefits as being intangible or deferred.

42. Four: Quality Management, Ethics, and Corporate Social Responsibility • Key elements of corporate social responsibility include the ethical aspects of the following issues: human rights, safety and health, business practice, governance, environmental engagement, consumer relations, marketplace activities, community involvement and social development.

43. Five: Partnering and Strategic Alliances • MAJOR TOPICS • Partnering or Strategic Alliances • Innovative Alliances and Partnerships • Internal Partnering • Partnering with Suppliers • Partnering with Customers • Partnering with Potential Competitors • Global Partnering • Education and Business Partnerships

44. Five: Partnering and Strategic Alliances • Partnering means working together for mutual benefit. It involves pooling resources, sharing costs, and cooperating in ways that mutually benefit all parties involved in the partnership. Partnerships may be formed internally (among employees) and externally with suppliers, customers, and potential competitors.

45. Five: Partnering and Strategic Alliances • The purpose of partnering is to enhance competitiveness. The formation of partnerships should be a systematic process involving such steps as development of a partnering briefing, identification of potential partners, identification of key decision makers, implementation of the partnership. • Internal partnering operates on three levels:

46. Five: Partnering and Strategic Alliances • Management-to-employees, team-to-team partnerships, and employee-to-employee partnerships. • The purpose of internal partnering is to harness the full potential of the workforce and focus it on the continuous improvement of quality. • Internal partnering is also called employee involvement and employee empowerment.

47. Five: Partnering and Strategic Alliances • Successful internal partnering requires a supportive environment, structured mechanisms, and mutually supportive alliances. • The goal of a supplier partnership is to create and maintain loyal, trusting relationships that will allow both partners to win while promoting the continuous improvement of quality, productivity, and competitiveness.

48. Five: Partnering and Strategic Alliances • The requirements for success in supplier partnerships include the following: • Supplier personnel should interact with employees who actually use their products, the price-only criteria in the buyer-supplier relationship should be eliminated, the quality of products delivered should be guaranteed by the supplier, supplier should be proficient in JIT, and both parties should be capable of sharing information electronically.

49. Five: Partnering and Strategic Alliances • Supplier partnerships typically develop in the following stages: uncertainty and tentativeness, short-term pressure, realization of the need for new approaches, adoption of new paradigms, awareness of potential, adoption of new values, and mature partnering.

50. Five: Partnering and Strategic Alliances • The rationale for forming customer partnerships is customer satisfaction. The best way to ensure customer satisfaction is to involve customers as partners in the product development process. Doing so is, in turn, the best way to ensure competitiveness. Customer-defined quality is a fundamental aspect of total quality.