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  1. 1. Management’s Commitments to Quality and ProductivityMultiMedia by 2002 South-
  2. 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. MultiMedia by 2002 South-
  3. 3. Quality Features Originate With Internal and External Designers Producers Users CustomersMultiMedia by 2002 South-
  4. 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.MultiMedia by 2002 South-
  5. 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). MultiMedia by 2002 South-
  6. 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.MultiMedia by 2002 South-
  7. 7. Benchmark Subjects Strategies Operations Processes ProceduresMultiMedia by 2002 South-
  8. 8. Michail Treacy and Fred Wiersema (1997) Three Long-Term Value Disciplines Operational Excellence Product Customer Leadership IntimacyMultiMedia by 2002 South-
  9. 9. The Seven-StepTQM Model MultiMedia by 2002 South-
  10. 10. TQM is Known Under Several Labels  Continuous Quality Improvement  Managing Total Quality  Leadership Through Quality  Total Quality ControlMultiMedia by 2002 South-
  11. 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. MultiMedia by 2002 South-
  12. 12. Thomas J. Barry (1991) Wrote TQM/TQC Is a journey, not a destination. Is systematic. Is a strategic process for organizational excellence. MultiMedia by 2002 South-
  13. 13. Productivity The amount of input needed to The amount of input needed to Usually expressed Usually expressedproduce 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) MultiMedia by 2002 South-
  14. 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.MultiMedia by 2002 South-
  15. 15. Deming, Improving Quality Benefits  Reduction in mistakes  Improvement of quality  Lower and lower costs  Less rework  Less wasteMultiMedia by 2002 South-
  16. 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. MultiMedia by 2002 South-
  17. 17. Results of Reengineering Have Been to Change Organizations’ Visions Values Missions Activities Activities StructureMultiMedia by 2002 South-
  18. 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. MultiMedia by 2002 South-
  19. 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 intelligenceand determine our reputation and vitality. Involvement and teamwork are our core humanvalues.”•Products--”Our products are the end result of our efforts, and they should be the best inserving customers worldwide. As our products are viewed, so are we viewed.”•Profits--”Profits are the ultimate measure of how efficiently we provide customers with thebest 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 ofHoughton Mifflin Co. All rights reserved. MultiMedia by 2002 South-
  20. 20. Ford’s Guiding Principles•“Quality comes first. To achieve customer satisfaction, the quality of our products andservice must be our number-one priority.”•“Customers are the focus of everything we do. We must strive for excellence in everythingwe 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 withtrust and respect.”•“Dealers and suppliers are our partners. The company must maintain mutually beneficialrelationships with dealers, suppliers, and our other business associates.”•“Integrity is never compromised. The conduct of our company worldwide must bepursued in a manner that is socially responsible and commands respect for its integrity andfor its positive contributions to society. Our doors are open to men and women alike, withoutdiscrimination 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 ofHoughton Mifflin Co. All rights reserved. MultiMedia by 2002 South-
  21. 21. Quality Control Audit Two Basic Questions:  How are we doing?  What are the problems?MultiMedia by 2002 South-
  22. 22. QCA Focuses On  Quality  Subcontracting  Customer Complaints  Implementing Quality AssuranceMultiMedia by 2002 South-
  23. 23. Quality and Productivity Statistical Measurements Statistical Quality Statistical Process Control (SQC) Control (SPC) MultiMedia by 2002 South-