Chapter 1                     Introduction to QualityTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thoms...
Definitions of Quality      • Total quality management (TQM) is the        integration of all functions and processes     ...
Total Quality      • People-focused management system      • Focus on increasing customer satisfaction        and reducing...
Principles of Total Quality      •   Customer and stakeholder focus      •   Participation and teamwork      •   Process f...
Continuous Improvement      • Enhancing value through new products and        services      • Reducing errors, defects, wa...
THE CONCEPT OF TQM       The subsystem include all the organizational            functions in the life cycle of a product ...
Strategy With Customer Focus      • “Meeting or exceeding customer        expectations”      • Customers can be...        ...
Employee involvement    •   Employees know their jobs best and        therefore, how to improve them    •   Management mus...
Key Issues & terminology related                 To TQM      •   The cost of quality      •   A cultural change      •   E...
Infrastructure, Practices, and                         ToolsInfrastructure          Leadership         Strategic         H...
TQ Infrastructure      •   Customer relationship management      •   Leadership and strategic planning      •   Human reso...
ANTECEDENTS OF MODERN               QUALITY MANAGEMENT     • Is driven by customer wants and needs     • Makes significant...
Organizational benefits •   Great customer loyalty •   Marker share improvements •   Higher stock price •   Reduced servic...
Quality and Business                         Performance  Customer-Driven                          Price Advantage        ...
Leaders in the Quality Revolution      •   W. Edwards Deming (early 1950)      •   Joseph M. Juran (1954)      •   Philip ...
Deming Chain Reaction                                         Improve quality                                          Cos...
Deming’s System                     of Profound Knowledge      •   Appreciation for a system      •   Understanding variat...
Deming’s 14 Points (Abridged) (1 of 2)1. Create consistency of purpose with a plan2. Adopt the new philosophy of quality.3...
Deming’s 14 Points (2 of 2) 10. Stop requesting improved productivity with out     providing method to achieve it. 11. Eli...
Juran’s 10 step to quality improvement                                       Quality planning                             ...
Phillip B. Crosby Quality is free . . . : “Quality is free. It’s not a gift, but it is free. What costs money are the unqu...
Crosby 14 Points (Abridged) (1 of 2)  Absolutes of Quality Management:  •   Management commitment  •   Quality improvement...
•    Zero defects day     •    Goal setting     •    Error cause removal     •    Recognition     •    Quality councils   ...
A.V. Feigenbaum      • Three Steps to Quality           – Quality Leadership, with a strong focus             on planning ...
Three Levels of Quality      • Organizational level: meeting external        customer requirements      • Process level: l...
Quality and Personal Values      • Personal initiative has a positive impact        on business success      • Quality beg...
27THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Malcolm Baldrige                   National Quality Award  • Help improve quality in U.S.    companies  • Recognize achiev...
Criteria for Performance                          Excellence      •   Leadership      •   Information and analysis      • ...
The Baldrige Framework –                    A Systems Perspective                                           Organizational...
Baldrige Award Evaluation Process                                  Receive Applications                                   ...
The Baldrige Award                          Scoring System          • Three evaluation dimensions - Approach,            D...
Feedback Report      • Strengths - approaches or results that        demonstrate effective response to the        Criteria...
Self Assessment and the Baldrige            National Quality Program       A primary goal of the       Program is to encou...
Upcoming SlideShare
Loading in...5
×

Tqm ch 01

1,311

Published on

0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,311
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
98
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide
  • The framework is the 30,000 foot view of the Criteria. [Note: Education and Health Care Criteria have slightly different nomenclature.] The building blocks, or Categories, are essential -- performance in the Baldrige categories is the cost of entry -- but excellence in the linkages will be the mark of competitive leadership. The arrows point to excellence. The umbrella over strategy and action plans: It is the set of customer and market focused company-level requirements. These are derived from short- and long-term planning. They are the things that must be done well for the strategy to succeed. The action plans “bring the strategy to life.” They guide overall resource decisions. They drive the alignment of measures for all work units to ensure customer satisfaction and market success. The system: The leadership triad -- leadership, strategic planning, customer & market focus -- emphasizes the importance of a leadership focus on strategy and customers. The results triad is HR focus, process management, and business results. Its focus is on the employees and key processes that accomplish the work of the organization that yields results. ALL company actions point toward results. The large arrow in the center connects the leadership and results triads -- a critical linkage for company success -- and shows the role leaders must play in driving results improvement. Information and analysis are critical to a fact-based system; they are the foundation for the performance management system.
  • The four-stage evaluation process is illustrated in this chart. After each stage of review, the Panel of Judges meets to decide which applicants should go forward to the next stage -- consensus or site visit. The Judges’ guidelines encourage giving “benefit of the doubt” to make certain that all potential Award recipients proceed to each succeeding stage of review. When it is determined that an applicant will not proceed to the next stage of the process, the feedback report is prepared and sent within 45 days. All information remains strictly confidential throughout the process. There are strict conflict-of-interest rules that are followed by all Examiners, Judges, and National Quality Program staff.
  • The system for scoring applicant responses to the 20 Criteria Items involves the assessment of three evaluation dimensions and considers the factor of “importance” to the applicant’s business. The process employs Scoring Guidelines, which are an anchored rating scale. All Baldrige Award Examiners observe a set of published guidelines in assignment of scores to applicants’ responses. This scoring system is spelled out in detail so that an organization can assess itself and so that applicants are completely familiar with the system being used. The three scoring dimensions, critical to evaluation and feedback, are: Approach, which refers to how the applicant addresses the Item requirements, or what method(s) are used. The factors used to evaluate approaches include: (1) appropriateness of the methods to the requirement, (2) the effectiveness of the use of the methods, and (3) evidence of innovation and/or significant and effective adaptations of approaches used in other types of applications or businesses; Deployment, which refers to the extent to which the applicant’s approach is applied to all requirements of the Item. The factors used to evaluate deployment include: (1) use of the approach in addressing business and item requirements, and (2) use of the approach by all appropriate work units; and Results , which refers to outcomes in achieving the purposes given in the Item. The factors used to evaluate results include: (1) current performance, (2) performance relative to appropriate comparisons and/or benchmarks, (3) rate, breadth, and importance of performance improvements, (4) demonstration of sustained improvement and/or sustained high-level performance, and (5) linkage of results measures to key performance measures identified in the Business Overview and in Approach/Deployment Items. Evaluation and feedback must also consider the factor of “importance” of improvements in approach, deployment, and results to the applicant’s business. Areas of greatest importance should be identified in the Business Overview, and in items of particular importance, such as the key customer and process requirements and key strategies and action plans.
  • The Baldrige National Quality Program is more than an Award program. A major purpose of the Criteria is to provide a framework organizations can use for self-assessment. To encourage self-assessment, the Program makes available the materials to accomplish Baldrige assessments in-house. Materials include the Criteria, scoring guidelines, a structure for identifying organizational strengths and opportunities for improvement, and a case study packet that demonstrates the complete process.
  • Tqm ch 01

    1. 1. Chapter 1 Introduction to QualityTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1
    2. 2. Definitions of Quality • Total quality management (TQM) is the integration of all functions and processes within an organization in order to achieve continuous improvement of quality of goods and services. • A process is a sequence of activities that is intended to achieve some result 2THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    3. 3. Total Quality • People-focused management system • Focus on increasing customer satisfaction and reducing costs • A systems approach that integrates organizational functions and the entire supply chain • Stresses learning and adaptation to change • Based on the scientific method 3THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    4. 4. Principles of Total Quality • Customer and stakeholder focus • Participation and teamwork • Process focus and continuous improvement ...supported by an integrated organizational infrastructure, a set of management practices, and a set of tools and techniques 4THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    5. 5. Continuous Improvement • Enhancing value through new products and services • Reducing errors, defects, waste, and costs • Increasing productivity and effectiveness • Improving responsiveness and cycle time performance 5THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    6. 6. THE CONCEPT OF TQM The subsystem include all the organizational functions in the life cycle of a product Design, Planning, Production, Distribution, Field service The management subsystems also require integration, including 1. strategy with a customer focus 2. The tools of quality 3. Employee involvement 6THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    7. 7. Strategy With Customer Focus • “Meeting or exceeding customer expectations” • Customers can be... – Consumers – External customers – Internal customers 7THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    8. 8. Employee involvement • Employees know their jobs best and therefore, how to improve them • Management must develop the systems and procedures that foster participation and teamwork • Empowerment better serves customers, and creates trust and motivation • Teamwork and partnerships must exist both horizontally and vertically 8THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    9. 9. Key Issues & terminology related To TQM • The cost of quality • A cultural change • Enabling mechanisms of change • Implementing TQM • Management behavior 9THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    10. 10. Infrastructure, Practices, and ToolsInfrastructure Leadership Strategic HRM Process Data and information Planning mgt. management Practices Performance Training appraisal Tools Trend chart 10THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    11. 11. TQ Infrastructure • Customer relationship management • Leadership and strategic planning • Human resources management • Process management • Data and information management 11THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    12. 12. ANTECEDENTS OF MODERN QUALITY MANAGEMENT • Is driven by customer wants and needs • Makes significant contribution to business success • Matches organization’s unique resources with opportunities • Is durable and lasting • Provides basis for further improvement • Provides direction and motivation Quality supports each of these characteristics 12THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    13. 13. Organizational benefits • Great customer loyalty • Marker share improvements • Higher stock price • Reduced service calls • Higher prices • Greater productivity 13THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    14. 14. Quality and Business Performance Customer-Driven Price Advantage Market Share Quality CustomerCustomer attributes values And design space profitability and growth productivity Specification quality Lower costs Higher profitability 14THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    15. 15. Leaders in the Quality Revolution • W. Edwards Deming (early 1950) • Joseph M. Juran (1954) • Philip B. Crosby • Armand V. Feigenbaum • Kaoru Ishikawa • Genichi Taguchi 15THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    16. 16. Deming Chain Reaction Improve quality Costs decrease Productivity improves Increase market share with better quality and lower prices Stay in business Provide jobs and more jobs 16THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    17. 17. Deming’s System of Profound Knowledge • Appreciation for a system • Understanding variation • Theory of knowledge • Psychology 17THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    18. 18. Deming’s 14 Points (Abridged) (1 of 2)1. Create consistency of purpose with a plan2. Adopt the new philosophy of quality.3. Cease dependence on mass inspection.4. End practice of choosing suppliers based solely on price.5. Identify problem and work Constantly improve system.6. Adopt modern method of training on the job.7. Change the focus from production numbers to quality.8. Drive out fear.9. Break down barriers between departments. 18 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    19. 19. Deming’s 14 Points (2 of 2) 10. Stop requesting improved productivity with out providing method to achieve it. 11. Eliminate work standard that prescribe numerical quotas. 12. Remove barriers to pride of workmanship. 13. Institute vigorous education and retraining. 14. Create a structure in top management that will emphasize the preceding thirteen points every day. www.deming.org 19THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    20. 20. Juran’s 10 step to quality improvement Quality planning Quality organizing Quality improvement • Build awareness of • Give recognition opportunities to improve • Communicate results • Set goals for improvement • Organize to reach goals • Keep score • Provide training • Maintain momentum by • Carry out projects to solve making annual problems improvement part of the • Report progress regular system and process of the company www.juran.com 20THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    21. 21. Phillip B. Crosby Quality is free . . . : “Quality is free. It’s not a gift, but it is free. What costs money are the unquality things -- all the actions that involve not doing jobs right the first time.” 21THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    22. 22. Crosby 14 Points (Abridged) (1 of 2) Absolutes of Quality Management: • Management commitment • Quality improvement team • Quality measurement • Cost of quality • Quality awareness • Corrective action • Zero defect planning • Supervisor training 22THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    23. 23. • Zero defects day • Goal setting • Error cause removal • Recognition • Quality councils • Do it all aver again www.philipcrosby.com 23THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM
    24. 24. A.V. Feigenbaum • Three Steps to Quality – Quality Leadership, with a strong focus on planning – Modern Quality Technology, involving the entire work force – Organizational Commitment, supported by continuous training and motivation 24THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    25. 25. Three Levels of Quality • Organizational level: meeting external customer requirements • Process level: linking external and internal customer requirements • Performer/job level: meeting internal customer requirements 25THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    26. 26. Quality and Personal Values • Personal initiative has a positive impact on business success • Quality begins with personal attitudes • Quality-focused individuals often exceed customer expectations • Attitudes can be changed through awareness and effort (e.g., personal quality checklists) 26THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    27. 27. 27THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    28. 28. Malcolm Baldrige National Quality Award • Help improve quality in U.S. companies • Recognize achievements of excellent firms and provide examples to others • Establish criteria for evaluating quality efforts • Provide guidance for other U.S. companies 28THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    29. 29. Criteria for Performance Excellence • Leadership • Information and analysis • Strategic quality planning • Human Resource development and management • Management of process quality • Quality and operational results • Customer focus and satisfaction 29THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    30. 30. The Baldrige Framework – A Systems Perspective Organizational Profile: Environment, Relationships, and Challenges 4 2 Human Information Resource and Focus analysis 77 1 Customer Customer Leadership focus and focus and satisfaction satisfaction 3 Strategic 5 quality planning Process Management 6 Quality and Operational Result 30THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    31. 31. Baldrige Award Evaluation Process Receive Applications Stage 1 Independent Review Judges Select for No Feedback report Consensus Review? to applicant Stage 2 Consensus Review Judges Select for No Feedback report Site Visit Review? to applicant Stage 3 Site Visit Review Stage 4 Judges Recommend Award Feedback report Recipients to NIST Director/DOC to applicant 31THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    32. 32. The Baldrige Award Scoring System • Three evaluation dimensions - Approach, Deployment, and Results • Scoring is linked to the importance to the applicant’s business • Scoring guidelines 32THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    33. 33. Feedback Report • Strengths - approaches or results that demonstrate effective response to the Criteria • Opportunities for improvement - how the applicant can better address the purposes of the Criteria, or issues that require clarification 33THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
    34. 34. Self Assessment and the Baldrige National Quality Program A primary goal of the Program is to encourage many organizations to improve on their own by equipping them with a standard template for measuring their performance and their progress toward performance excellence.THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 34
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×