2. Difference Between Today’s Managers
and Their Counterparts
• Their definition of quality.
• Recognition that quality and efficiency are primary
concerns affecting every operation and employee.
• Quality is now defined as the ability of a product or
service to meet or exceed customer expectations.
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3. Quality Features Originate With
Internal and External Designers
Producers Users
Customers
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4. Quality Function Deployment
(QFD)
A disciplined approach to solving
quality problems before the design
phase of a product.
Purpose is to assure that the
customer obtains high value
from a product.
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5. View on Quality
• To be competitive, we must satisfy the customer.
In order to be more competitive, we must delight
the customer. Quality is defined here as the
measure of customer delightment. Note that
customer satisfaction is a region on the scale of
customer delightment. To delight the customer, we
must design for quality (Dean, 1998).
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6. Benchmarking
The product to meet or beat in terms of design,
manufacture, performance, and service.
Is an improvement process.
Measures performance against that
of best-in-class companies.
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8. Michail Treacy and Fred Wiersema (1997)
Three Long-Term Value Disciplines
Operational
Excellence
Product Customer
Leadership Intimacy
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10. TQM is Known Under Several Labels
Continuous Quality Improvement
Managing Total Quality
Leadership Through Quality
Total Quality Control
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11. TQM Principles
Improvements create productivity gains.
Defined as conformance to requirements that satisfy user needs.
Measured by continual process and product improvement and
user satisfaction.
Quality is determined by design and achieved by effective process
controls.
Process-control techniques are used to prevent defects.
Quality is part of every function in all phases of the product life
cycle.
Management is responsible for quality.
Relationships with suppliers are formed for the long term and are
quality-oriented.
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12. Thomas J. Barry (1991) Wrote
TQM/TQC
Is a journey, not a destination.
Is systematic.
Is a strategic process for organizational excellence.
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13. Productivity
The amount of input needed to
The amount of input needed to Usually expressed
Usually expressed
produce aagiven amount of output.
produce given amount of output. as aaratio.
as ratio.
Output (units produced)
= Productivity Index (PI)
Input (hours of human labor,
machining time, or dollars invested)
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14. Productivity Can be Improved by
Increasing the amount of output generated by a
fixed amount of input.
Reducing the amount of input required to
generate a fixed amount of output.
A combination of both approaches.
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15. Deming, Improving Quality
Benefits
Reduction in mistakes
Improvement of quality
Lower and lower costs
Less rework
Less waste
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16. Reengineering
An approach for making changes that inevitably
An approach for making changes that inevitably
affect quality and productivity improvements.
affect quality and productivity improvements.
Individuals and organizations “think in terms of processes.”
Individuals and organizations “think in terms of processes.”
The goal is reducing costs and responding quickly and
The goal is reducing costs and responding quickly and
effectively to customers.
effectively to customers.
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17. Results of Reengineering Have Been
to Change Organizations’
Visions Values
Missions
Activities Activities
Structure
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18. Changing an Organization
Every CEO must:
- Sense the need for a change.
- Create a clear statement as to where the organization
wants to be.
- Sell that vision.
- Create plans to achieve it.
- Commit organizational resources.
- Lead the effort by removing obstacles.
- Make certain that the organization’s progress is
monitored.
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19. Ford’s Mission
“…to improve continually our products and services to meet our
customers’ needs, allowing us to prosper as a business and to provide
a reasonable return for our stockholders, the owners of our business.”
Values
“How we accomplish our mission is as important as the mission itself. Fundamental to success
for the company are three basic values”:
•People--”Our people are the source of our strength. They provide our corporate intelligence
and determine our reputation and vitality. Involvement and teamwork are our core human
values.”
•Products--”Our products are the end result of our efforts, and they should be the best in
serving customers worldwide. As our products are viewed, so are we viewed.”
•Profits--”Profits are the ultimate measure of how efficiently we provide customers with the
best products for their needs. Profits are required to survive and grow.”
Source: “Ford’s Mission, Values, and Guiding Principles” from A Better Idea. Copyright 1991 by Donald E. Peterson and John Hillkirk. Reprinted by permission of
Houghton Mifflin Co. All rights reserved.
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20. Ford’s Guiding Principles
•“Quality comes first. To achieve customer satisfaction, the quality of our products and
service must be our number-one priority.”
•“Customers are the focus of everything we do. We must strive for excellence in everything
we do: in our products, in their safety and value--and in our services, our human relations,
our competitiveness, and our profitability.”
•“Employee involvement is our way of life. We are a team. We must treat each other with
trust and respect.”
•“Dealers and suppliers are our partners. The company must maintain mutually beneficial
relationships with dealers, suppliers, and our other business associates.”
•“Integrity is never compromised. The conduct of our company worldwide must be
pursued in a manner that is socially responsible and commands respect for its integrity and
for its positive contributions to society. Our doors are open to men and women alike, without
discrimination and without regard to ethnic origin or personal beliefs.”
Source: “Ford’s Mission, Values, and Guiding Principles” from A Better Idea. Copyright 1991 by Donald E. Peterson and John Hillkirk. Reprinted by permission of
Houghton Mifflin Co. All rights reserved.
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21. Quality Control Audit
Two Basic Questions:
How are we doing?
What are the problems?
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22. QCA
Focuses On
Quality
Subcontracting
Customer Complaints
Implementing Quality Assurance
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23. Quality and Productivity Statistical
Measurements
Statistical Quality Statistical Process
Control (SQC) Control (SPC)
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