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Module 1

Module 1. Introduction to Quality. 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.”

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Module 1

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  1. Module 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 ...is 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 (Inspection Department) • Quality control during World War II (Resource Shortages) • Quality management in Japan (Kaizen)

  5. History of Quality Assurance (2 of 2) • Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management” (CBS VP Quote: Hanged) • 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 • “Quality is Free” ~Philip Crosby

  6. Contemporary Influences on Quality • Partnering • Learning systems • Adaptability and speed of change • Environmental sustainability • Globalization • Knowledge focus • Customization and differentiation • Shifting demographics American Society for Quality (ASQ)

  7. Foundry Research on Quality • Competitive Advantage (Powell, 1995; Flynn et al., 1995) • Open culture, employee empowerment, executive commitment • TQM Systems (Hackman & Wageman, 1995; Anderson et al., 1994) • Motivation, learning, and social systems • Service quality (Pitt et al., 1994) • Customer focus, consumer satisfaction

  8. Video http://www.youtube.com/watch?v=TiuaFwzJ4FU

  9. 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 (Little Q) definition: conformance to specifications

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

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

  12. Customer-Driven Quality • Which is better Quality? • Quality is determined by what a customer wants, or what provides greatest utility

  13. 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

  14. 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

  15. Total Quality • Is TQM dead? • Focus on Sig Sigma, Lean/Efficient Mfg • Big Q versus Little Q • Overemphasis on Little Q “No, TQM isn’t dead. TQM failures just prove that bad management is still alive and kicking.”

  16. 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

  17. Participation and Teamwork • Employees know their jobs best and therefore, how to improve them (Quality as a Mantra, Firm MO*) • 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

  18. Process Focus and Continuous Improvement • A process is a sequence of activities that is intended to achieve some result iphone Evolution

  19. 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 “Quality is a race without a finish line.” - David Kearns

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

  21. 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

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

  23. TQ Infrastructure • Customer relationship management • Leadership and strategic planning • Human resources management • Process management • Data and information management

  24. 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

  25. 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

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

  27. 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

  28. 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)

  29. Quality Mantra “The bitterness of poor quality remains long after the sweetness of low price is forgotten.” ~ Benjamin Franklin

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