Quality Concept and Its effect on Business Operation

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This was the presentation that we prepared and presented for our Strategic Quality Leadership course. The course focused on quality improvement, lean manufacturing and Six Sigma Methodology. It was really fun to present.

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  • Quality Concept and Its effect on Business Operation

    1. 1. IEM 5113 Strategic Quality Leadership Team Project 1 14 September 2010 Team 4A Daniel Aular-Duran Brian Grissom Christy Kenaga MD RahamanOklahoma State University
    2. 2. IEM 5113 – Strategic Quality Leadership DHL’s Mission Statement• “Making the most of scale and experience - and passion - DHL’s mission is to be the first choice worldwide”. Mission statement taken from www.dhl.com and from article on www.scribd.com/doc/DHL-STRATEGIC-MANAGEMENT on 11 September 2010• DHL developed their own organizational structure to serve the global market, which reinforces its mission statement• Significant shift from the textbook – Now (web version); emphasizes the goal of being first choice worldwide – Then (textbook); emphasized making everyone a winner• Needs more emphasis on the customer Oklahoma State University
    3. 3. IEM 5113 – Strategic Quality Leadership Caterpillar’s Mission Statement• Caterpillar‟s current mission statement, taken from www.company- statements-slogans.info/list-of-companies-c/caterpillar on 11 September 2010, states “Caterpillar will be the leader in providing the best value in machines, engines and support services for customers dedicated to building the worlds infrastructure and developing and transporting its resources. We provide the best value to customers”• Previous version focused on understanding & fulfilling customer needs, on reliability, and customer service• Current version is clearer, but wordy and redundant• Suggestion; shorten to only the underlined text Oklahoma State University
    4. 4. IEM 5113 - Strategic Quality Leadership Volvo’s Mission Statement• Textbook[1] version - “[Volvo] creates value by providing transportation-related products and services with superior quality, safety, andenvironmental care to demanding customers in selected segments”.• Volvo‟s current mission statement as of 10 Sept 2010, taken fromwww.volvogroup.com, is slightly different from the textbook; “By creatingvalue for our customers we create value for our shareholders. We use ourexpertise to create transportation-related hard and soft products of superiorquality, safety and environmental care for demanding customer in selectedsegments. We work with energy, passion and respect for the individual”• This change shows Volvo‟s continual refinement of their missionstatement, and is much clearer than, for example “make them winners”• Team consensus is that the new mission statements is much better[1] Evans, James R., and William M. Lindsey. 2011. Managing for Quality and PerformanceExcellence, Florence, KY: Cengage. Oklahoma State University
    5. 5. IEM 5113 – Strategic Quality Leadership AT&T Mission Statement• AT&T‟s current mission statement, taken from the corporate website, www.att.com, on 11 September 2010: “We aspire to be the most admired and valuable company in the world. Our goal is to enrich our customers‟ personal lives and to make their businesses more successful by bringing to market exciting and useful communications services, building shareowner value in the process”• The current mission statement states AT&T is the world‟s most important voice and data communications company, they also have the world‟s largest and also most sophisticated network and the largest digital wireless network in the US, which also reinforces its mission statement bringing people together• Alternate mission statement; “To be the leader in communications, both personal and business, to provide the best technology, and above all, to provide unrivaled customer service.” Oklahoma State University
    6. 6. IEM 5113 - Strategic Quality Leadership International Red Cross Mission Statement• Textbook version; “To serve the most vulnerable” – True and inspiring – Makes a great bumper sticker!• IRC‟s mission statement, taken from www.icrc.org on 11 September 2010, “… is an impartial, neutral and independent organization whose exclusively humanitarian mission is to protect the lives and dignity of victims of armed conflict and other situations of violence and to provide them with assistance”• The current version elaborates and clarifies the original – Better? More or less inspiring?• Not merely a cosmetic device or „window dressing‟ Oklahoma State University
    7. 7. IEM 5113 - Strategic Quality Leadership Case Study – A Strategic BottleneckQuestion: To achieve its strategic goals of lower costs and improvedcustomer performance, what could this company do to align the goalsof forming and selecting departments?• Communicate the need to consistently provide high quality products toall departments • Management responsibility• Break down the barriers between Forming and Selecting departments • Ideally even merge the two functions• Eliminate departmental metrics • Creates division, animosity, morale issues • Focuses on short term gains Oklahoma State University
    8. 8. IEM 5113 - Strategic Quality Leadership Case Study – A Strategic Bottleneck (continued)• Develop new metrics that benefit the company as a whole • Long term • Measurable • Equitable • Differentiate products from competitors• Figure out why the forming process doesn‟t produce qualityproducts consistently • Maybe as simple as the wrong goal (e.g. total output instead of total defect free output) • Poor quality raw materials? • Poor processes? • Old equipment? • Other? • Combination of factors Oklahoma State University
    9. 9. IEM 5113 - Strategic Quality Leadership Case Study – A Strategic Bottleneck (continued)• Develop solutions using • Teams approach – involve all stakeholders • Systems Engineering principles • Focus on Root Cause, not symptoms• Implement & monitor selected solutions • Ensure original problems were fixed • And… that any new problems are corrected Oklahoma State University
    10. 10. IEM 5113 - Strategic Quality Leadership4) Contrast the following vision statements in terms of their usefulness to an organizationFrom Wikipedia, “A Vision statement outlines what the organization wants to be, or how it wants the world in which it operates to be. It concentrates on the future. It is a source of inspiration. It provides clear decision-making criteria” a. To become the industry leader and achieve superior growth and market share. b. To become the best-managed electric utility in the United States and an excellent companyoverall and be recognized as such.c. Being the best at everything we do, exceeding customer expectations; growing our business toincrease its value to customers, employees, shareowners, and communities in which we work.Each of these vision statements tell what the company wants to be and are forward looking; bothqualities of a good vision statement. However, each is progressively better, and clearer(a) gives you no idea of how to achieve industry leadership, superior growth, or market share(b) brings more focus by mentioning best-managed(c) lists specific areas and sets goals for each.C covers all the aspects that a quality organization should cover and is clearly the best Oklahoma State University

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