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CHAPTER 3. MANAGEMENT’S COMMITMENTS TO QUALITY AND PRODUCTIVITY. TOTAL QUALITY MANAGEMENT. Productivity, Quality, and Profitability Quality defined as totality of features and characteristics of a product, or service, or process, or people which impact on its ability
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CHAPTER 3 MANAGEMENT’S COMMITMENTS TO QUALITY AND PRODUCTIVITY
TOTAL QUALITY MANAGEMENT • Productivity, Quality, and Profitability • Quality defined as • totality of features and characteristics • of a product, or service, or process, or people • which impact on its ability • to satisfy stated or implied goals • or requirements of the producer or users of the outcomes
TOTAL QUALITY MANAGEMENT • Productivity, Quality, and Profitability • Eight Dimensions of Quality • performance • features • reliability • conformance • durability • serviceability • Aesthetics • Perceived Quality
TOTAL QUALITY MANAGEMENT • The Productivity, Quality, Profitability Link • improve quality • costs decrease because of fewer mistakes, less rework • productivity improves • capture more of the market • stay in business • provide more jobs and profits
THE TQM MODEL • Establish a Total Quality Culture • Define mission of each component in the organization • Set performance improvement standards/benchmarks • Establish improvement plans • Implement improvement plans • Evaluate • Review and Recycle
TOTAL QUALITY PIONEERS • G. S. Radford • Walter Shewhart • W. Edwards Deming • Joseph Juran • Armand Feigenbaum • Philip Crosby • Tom Peters
CREATING A TOTAL QUALITY CULTURE • Commitment from the Top • Commitment from the Middle • Commitment from the Bottom • Forging Partnerships--Internal and External • Quality Audits • Removal of Barriers
THE NATURE OF PRODUCTIVITY • Productivity Measures • output per hour • real gross domestic product • productivity change/percentage change
FACTORS AFFECTING PRODUCTIVITY • Government--spending, regulations, and capital investment • Employees--work ethic • Unions--partner or adversary • Management--partner or adversary • Research and Development--commitment to the future • Modern Manufacturing and Service Orientation • Time Management