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1THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMChapter 1Introduction to Quality
2THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMModern Importance of Quality“The first ...
3THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMQuality Assurance...is any action direc...
4THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMHistory of Quality Assurance (1 of 2)• ...
5THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMHistory of Quality Assurance (2 of 2)• ...
6THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMContemporary Influences onQuality• Part...
7THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMDefinitions of Quality• Transcendent de...
8THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMQuality PerspectivesCustomerCustomerDis...
9THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMCustomer-Driven Quality• “Meeting or ex...
10THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMTotal Quality• People-focused manageme...
11THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMPrinciples of Total Quality• Customer ...
12THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMCustomer and Stakeholder Focus• Custom...
13THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMParticipation and Teamwork• Employees ...
14THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMProcess Focus and ContinuousImprovemen...
15THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMContinuous Improvement• Enhancing valu...
16THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMDeming’s View of aProduction SystemSup...
17THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMLearning• The foundation for improveme...
18THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMInfrastructure, Practices, andToolsLea...
19THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMTQ Infrastructure• Customer relationsh...
20THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMCompetitive Advantage• Is driven by cu...
21THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMQuality and ProfitabilityImproved qual...
22THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMEvidence that Quality ImpactsBusiness ...
23THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMGAO TQ ModelProduct andservice quality...
24THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMThree Levels of Quality• Organizationa...
25THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMQuality and Personal Values• Personal ...
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  1. 1. 1THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMChapter 1Introduction to Quality
  2. 2. 2THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMModern Importance of Quality“The first job we have is to turn out qualitymerchandise that consumers will buy and keepon buying. If we produce it efficiently andeconomically, we will earn a profit, in whichyou will share.”- William Cooper Procter
  3. 3. 3THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMQuality Assurance...is any action directed toward providingcustomers with goods and services ofappropriate quality.
  4. 4. 4THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMHistory of Quality Assurance (1 of 2)• Skilled craftsmanship during Middle Ages• Industrial Revolution: rise of inspection andseparate quality departments• Statistical methods at Bell System• Quality control during World War II• Quality management in Japan
  5. 5. 5THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMHistory of Quality Assurance (2 of 2)• Quality awareness in U.S. manufacturingindustry during 1980s: “Total QualityManagement”• Malcolm Baldrige National Quality Award(1987)• Quality in service industries, government,health care, and education• Current and future challenge: keep progress inquality management alive
  6. 6. 6THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMContemporary Influences onQuality• Parterning• Learning systems• Adaptability and speed of change• Environmental sustainability• Globalization• Knowledge focus• Customization and differentiation• Shifting demographics
  7. 7. 7THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMDefinitions of Quality• Transcendent definition: excellence• Product-based definition: quantities ofproduct attributes• User-based definition: fitness for intendeduse• Value-based definition: quality vs. price• Manufacturing-based definition:conformance to specifications
  8. 8. 8THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMQuality PerspectivesCustomerCustomerDistributionDistributionproductsproductsandandservicesservicesneedsneedstranscendent &transcendent &product-basedproduct-based user-baseduser-basedmanufacturing-manufacturing-basedbasedvalue-basedvalue-basedMarketingMarketingDesignDesignManufacturingManufacturingInformation flowInformation flowProduct flowProduct flow
  9. 9. 9THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMCustomer-Driven Quality• “Meeting or exceeding customerexpectations”• Customers can be...– Consumers– External customers– Internal customers
  10. 10. 10THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMTotal Quality• People-focused management system• Focus on increasing customer satisfactionand reducing costs• A systems approach that integratesorganizational functions and the entiresupply chain• Stresses learning and adaptation to change• Based on the scientific method
  11. 11. 11THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMPrinciples of Total Quality• Customer and stakeholder focus• Participation and teamwork• Process focus and continuousimprovement...supported by an integrated organizationalinfrastructure, a set of management practices,and a set of tools and techniques
  12. 12. 12THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMCustomer and Stakeholder Focus• Customer is principal judge of quality• Organizations must first understandcustomers’ needs and expectations in orderto meet and exceed them• Organizations must build relationships withcustomers• Customers include employees and society atlarge
  13. 13. 13THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMParticipation and Teamwork• Employees know their jobs best andtherefore, how to improve them• Management must develop the systems andprocedures that foster participation andteamwork• Empowerment better serves customers, andcreates trust and motivation• Teamwork and partnerships must exist bothhorizontally and vertically
  14. 14. 14THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMProcess Focus and ContinuousImprovement• A process is a sequence of activitiesthat is intended to achieve some result
  15. 15. 15THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMContinuous Improvement• Enhancing value through new products andservices• Reducing errors, defects, waste, and costs• Increasing productivity and effectiveness• Improving responsiveness and cycle timeperformance
  16. 16. 16THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMDeming’s View of aProduction SystemSuppliers ofmaterials andequipmentReceipt and testof materialsDesign andRedesignConsumerresearchABCDProduction, assemblyinspectionTests of processes, machines, methodsDistributionConsumersINPUTS PROCESSES OUTPUTS
  17. 17. 17THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMLearning• The foundation for improvement …Understanding why changes are successfulthrough feedback between practices andresults, which leads to new goals andapproaches• Learning cycle:– Planning– Execution of plans– Assessment of progress– Revision of plans based on assessment findings
  18. 18. 18THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMInfrastructure, Practices, andToolsLeadership Strategic HRM Process Data and informationLeadership Strategic HRM Process Data and informationPlanning mgt. managementPlanning mgt. managementPerformance TrainingPerformance TrainingappraisalappraisalTrend chartTrend chartToolsToolsPracticesPracticesInfrastructureInfrastructure
  19. 19. 19THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMTQ Infrastructure• Customer relationship management• Leadership and strategic planning• Human resources management• Process management• Data and information management
  20. 20. 20THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMCompetitive Advantage• Is driven by customer wants and needs• Makes significant contribution to businesssuccess• Matches organization’s unique resources withopportunities• Is durable and lasting• Provides basis for further improvement• Provides direction and motivationQuality supports each of these characteristics
  21. 21. 21THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMQuality and ProfitabilityImproved qualityof designHigher perceivedvalueIncreased marketshareHigherpricesIncreasedrevenuesImproved qualityof conformanceLowermanufacturing andservice costsHigher profitability
  22. 22. 22THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMEvidence that Quality ImpactsBusiness Results• General Accounting Office study ofBaldrige Award applicants• Baldrige stock study (seewww.quality.nist.gov)• Hendricks and Singhal study of qualityaward winners• Performance results of Baldrige Awardwinners
  23. 23. 23THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMGAO TQ ModelProduct andservice qualityCustomersatisfactionLeadership forcontinuousimprovementQuality systems andemployee involvementCompetitivenessOrganizationbenefitsReliabilityOn-time deliveryError/defectsOverall satisfactionCustomer retentionComplaintsCostsCycle timeTurnoverSatisfactionSafety & healthProductivityMarket shareProfits
  24. 24. 24THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMThree Levels of Quality• Organizational level: meeting externalcustomer requirements• Process level: linking external andinternal customer requirements• Performer/job level: meeting internalcustomer requirements
  25. 25. 25THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTMQuality and Personal Values• Personal initiative has a positive impacton business success• Quality begins with personal attitudes• Quality-focused individuals often exceedcustomer expectations• Attitudes can be changed throughawareness and effort (e.g., personalquality checklists)
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