Total Quality management Business or b.s.

1. L. Drew Rosen, Ph.D., JONAH Professor The University of North Carolina at Wilmington Total Quality managementBusiness or b.s.

2. What is Quality? • The quality of service is defined by the customer’s “perception” of both the quality of the product and the service providing it.

3. What is Total Quality Management? • Total • Made up of the whole • Quality • Degree of excellence a product or service provides • Management • Act, art, or manner of handling, controlling, directing, etc.

4. What is Quality? • You only need to ask 4 questions to determine if quality customer service is being provided: • What is your service, product, or process? • Who are your customers? • What do they expect? • Are you delivering to those expectations? • Total Quality is meeting the customer’s expectations by doing the right thing right the first time.

5. Data • “In God we trust, others must have data.” • Decisions are based on fact and data, not management’s hunch or intuition. • Identify specific problems and isolate the magnitude of waste. • Target solutions on “root” causes. • Measure progress/improvement with Statistical Process Control (SPC).

6. Data • “Quality must be transformed from meaning ‘more and better of everything’ to ‘searching relentlessly for means of improvement that reduce costs while maintaining or enhancing quality’…” • Enhancing Quality in an Era of Resource Restraints, The University of Michigan

7. Process Concepts • 94% of the problems are in the process; 6% are with the workers. • Workers are responsible for doing the work within the system; Managers are responsible for improving the system. • Workers know where to find the problems and the solutions. • Teams of employees can improve processes to solve problems. • W. Edwards Deming

8. Employee Involvement • All employees, no matter what they do or where they work, have ideas about how to do their work more productively. • Employees represent a source of knowledge and creativity which we often fail to utilize. • The people closest to the problems often have the best ideas on how to make improvements.

9. Employee Involvement • Most employees are willing, even eager, to share their ideas. • People involved in making the decisions are more committed to implementing those decisions. • Management does not have all the answers. • Adapted from Xerox Corporation

10. Customer • Whoever receives your services

11. Total Quality Defined • “A structured system for creating organization-wide participation in the planning and implementation of a continuous improvement process that exceeds the needs of the customer/client.”

12. Key Elements of Total Quality • Culture Change • Top level management commitment and involvement • Continuous incremental improvement • Focus on processes • Employee involvement • Customer driven • Structured analysis • Decisions base on fact and data

13. Old Beliefs That Get In The Way CUSTOMER CEO YOU YOU CEO The purpose of business is to make a profit Quality costs too much Employees are costs You work for you boss CUSTOMER

14. If 99.9% Is Good Enough, Then… • 12 newborns will be given to the wrong parents daily. • 114,500 mismatched pairs of shoes will be shipped per year. • 18,322 pieces of mail will be mishandled per hour. • 2,000,000 documents will be lost by the IRS this year. • 2.5 million books will be shipped with the wrong cover.

15. If 99.9% Is Good Enough, Then… • 2 planes landing at Chicago’s O’Hare airport will be unsafe every day. • 315 entries in Webster’s dictionary will be misspelled. • 20,000 incorrect drug prescriptions will be written this year. • 880,000 credit cards in circulation will turn out to have incorrect cardholder information on their magnetic strips.

16. If 99.9% Is Good Enough, Then… • 103,260 income tax returns will be processed incorrectly during the year. • 5.5 million cases of soft drinks produced will be flat. • 291 pacemaker operations will be preformed incorrectly. • 3,056 copies of tomorrow’s Wall Street Journal will be missing one of three sections.