2. TOPICS
Quality and Strategy
What is a Customer?
Quality Strategy
Total Quality Management
Defining Quality
Views of Quality
Total Quality Perspective
Hindrances to TQM
Value of Quality
Implications of Quality
Cost of Quality (COQ)
Leaders in Quality
Generalization and
Application
3. WHAT IS A CUSTOMER?
A person or company
who purchases goods
or services.
4. QUALITY AND STRATEGY
Win
Customers
Jay Heizer and Barry Render
Operations Management, 10th Edition, Global Edition, Chapter 6
Pearson/Prentice Hall, Inc. Company, 2011 Education Inc.
6. HOW TO ACHIEVE TQM
Organizational Practices
Yields: What is important and
what is to be accomplished.
Quality Principles
Yields: How to do what is
important and to be accomplished.
Employee Fulfillment
Yields: Employee attitudes that can
accomplish what is important.
Customer Satisfaction
Yields: An effective organization
with a competitive advantage.
Flow of Activities
to Achieve TQM
Jay Heizer and Barry Render
Operations Management, 10th Edition, Global Edition, Chapter 6
Pearson/Prentice Hall, Inc. Company, 2011 Education Inc.
8. DEFINITION OF QUALITY
“The totality of features and
characteristics of a product or
service that bears on its
ability to satisfy stated or
implied needs”.
Adopted by the American Society for Quality (ASQ, at www.asq.org)
9. VIEWS OF QUALITY
Traditional View
1.Productivity vs. quality
2.How is quality is
measured
3.Attitude toward defects
4.Responsibility for
quality
Total Quality Perspective
1.How is quality defined
2.How is quality achieved
3.Quality as a function
4.Supplier relationships
11. HINDRANCES TO TOTAL
QUALITY
Taking a narrow, dogmatic
approach.
Confusion about the differences
among education, awareness,
inspiration, and skill-building.
13. WHY QUALITY IS
IMPORTANT?
Company Reputation
Implications of Quality
Jay Heizer and Barry Render
Operations Management, 10th Edition, Global Edition, Chapter 6
Pearson/Prentice Hall, Inc. Company, 2011 Education Inc.
Product Liability Global Implications
14. COST OF QUALITY (COQ)
Jay Heizer and Barry Render
Operations Management, 10th Edition, Global Edition, Chapter 6
Pearson/Prentice Hall, Inc. Company, 2011 Education Inc.
• Prevention Costs
• Appraisal Costs
• Internal Failure
• External Costs
Is a customer and a consumer the same? Who are your customers?
Managing quality helps build successful strategies of differentiation, low cost, and response. A successful quality strategy begins with an organization culture that fosters quality, followed by an understanding of the principles of quality, and then engaging employees in the necessary activities to implement quality.
The ability of a product or service to meet customer needs.