Chap 9 MGT162

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Chap 9 MGT162

  1. 1. 1 Quality And Total QualityQuality And Total Quality Management (TQM)Management (TQM)
  2. 2. 2 What is qualityWhat is quality  Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. ( The American Society For Quality Control )
  3. 3. 3 What is TQM?What is TQM?  TQM is an organization wide approach to continuously improving the quality of all the organization’s process, products, and services.
  4. 4. 4 Fundamentals of QualityFundamentals of Quality Slide 1 of 3Slide 1 of 3 Fundamentals of QualityFundamentals of Quality Slide 1 of 3Slide 1 of 3  Consumer Perspective • Quality can be defined as the degree to which the product or service meets the expectations of the customer.  Producer Perspective • Quality can be defined as the degree to which the product or service conforms to design specifications.
  5. 5. 5 Factors for Assessing QualityFactors for Assessing QualityFactors for Assessing QualityFactors for Assessing Quality  Product Factors • Aesthetics, features, performance, reliability, serviceability, durability, conformance, and perceived quality.  Service Factors • Responsiveness, reliability, assurance, empathy, and tangibles.
  6. 6. 6 Cost of QualityCost of QualityCost of QualityCost of Quality  Prevention Costs  Appraisal Costs  Internal-Failure Costs  External-Failure Costs
  7. 7. 7  Prevention cost -Costs to prevent defective output from occurring.  Appraisal cost – Cost to assess the quality of the product  Internal-failure cost – Cost to repair or dispose the defective output before delivery to the customer.  External-failure cost -Cost resulting from defective output that is not detected prior to delivery to the customer.
  8. 8. 8 Two primaryTwo primary responsibilities ofresponsibilities of managers in a qualitymanagers in a quality centered companycentered company  1.Participate in formulating strategies and policies to help the company win through total quality excellence  2.To deliver marketing quality alongside production quality
  9. 9. 9 Manager’s roles inManager’s roles in delivering high qualitydelivering high quality goods and servicegoods and service  1.Identify customer needs in well defined target market  2.Communicate customer expectation accurately to the product designers  3.Make sure customer orders are filled in correctly and the products deliver on time
  10. 10. 10 Manager’s roles in delivering highManager’s roles in delivering high quality goods and servicequality goods and service  4.Make sure customers receive proper instructions and training on how to use the products  5.Measure company/product image and customer satisfaction on a continuous basis  6.Continuously improve product quality
  11. 11. 11 Basic premises aboutBasic premises about quality improvementquality improvement  1.Quality must be perceived by customers  2.Quality must be reflected in every company activity, not just in its products  3.Quality requires total employee commitment  4.Quality requires high quality partners  5.Quality can always be improved  6.Quality improvement requires quantum leaps.  7.Quality does not cost more
  12. 12. 12 How establishHow establish companies achievecompanies achieve high standards ofhigh standards of qualityquality 1.They formulated a vision of quality in their mission statement  2.Top mgt involvement from the start of the quality drive  3.Focused on customer needs  4.Develop effective planning and implementation to achieve the goal  5.They trained their employees to use statistical process control tools  6.Provide empowerment  7.Reward their employees for quality performance  8.Made quality improvement an on going challenge
  13. 13. 13 What is TQM?What is TQM?  TQM is an organization wide approach to continuously improving the quality of all the organization’s process, products, and services.
  14. 14. 14 The Key Ideas of TQMThe Key Ideas of TQM 1. A System Approach 2. The Tools of TQM 3. A customer orientation 4. The role of management 5. Employee participation
  15. 15. 15 A System ApproachA System Approach TQM focus on improving three organizational systems : a) The cultural/social system b) The technical system c) The management system
  16. 16. 16 The Tools Of TQMThe Tools Of TQM 1.The fishbone diagram- also known as the cause-and- effect diagram that helps shows possible causes of a problem. 2.Benchmarking-Comparing your products and processes against the best in the world.
  17. 17. 17 A CustomerA Customer OrientationOrientation A Focus on identifying customer needs and deliver customer satisfaction
  18. 18. 18 The role ofThe role of managementmanagement  1.Identify customer needs in well defined target market  2.Communicate customer expectation accurately to the product designers  3.Make sure customer orders are filled in correctly and the products deliver on time  4.Make customers receive proper instructions and training on how to use the products  5.Measure company/product image and customer satisfaction on a continuous basis  6.Continuously improve product quality
  19. 19. 19 EmployeeEmployee participationparticipation TQM requires active employees involvement.TQM also requires empowerment – letting employees make decisions without asking for approval from managers
  20. 20. 20 Hurdles inHurdles in implementing TQMimplementing TQM 1.Managers reluctance to implement TQM e.g fear of failure or lack of knowledge 2.Employee resistance to change 3.Interdepartmental conflicts 4.Lack of understanding on the basic principles of TQM

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