Strategic quality planning involves envisioning an organization's future and developing procedures and operations to achieve that future vision. It requires assessing the environment, capabilities, and risks to develop strategies and objectives. Key components of a strategy include the mission, product/market scope, sources of competitive advantage like differentiation, and supporting policies, objectives, and organizational culture. Strategic quality planning guides strategic management and goal setting at the executive level through a total quality management approach.

1. Strategic Quality Planning
1

2. Strategic Quality Planning
• The basics of total quality management
can effectively govern executive-level
strategic management and goal setting.
• The process of envisioning an
organization’s future and developing the
necessary procedures and operations to
achieve that future.
2

3. Strategic And The Strategic
Planning Process
“A strategy is a pattern or plan that integrates an
organization’s major goals, policies, and action
sequences into a cohesive whole.”
Total Quality begins with a strategic decision—a decision
that can only be made by top management – and that
decision, simply put, is the decision to compete as a world-
class company. Total Quality concentrates on quality
performance – in every fact of the business– and the primary
strategy to achieve and maintain competitive advantage. It
requires taking a systematic took at an organization –
looking at how each part interrelates to the whole process.
In demands continuous improvement as a “way of life,”
3

4. Corporate Strategy
Formal corporate strategy includes:
• Goals to be achieved
• Policies to guide or limit action
• Action sequences, or programs,
that accomplish the goals
4

5. Strategic Quality Managements
Reason for existence Future intent Attitudes and policies
Mission Vision Guiding Principles
Environmental assessment Capabilities and risks
Strategies Broad statements of direction
Strategic Objectives Things to change or
improve
Action Plans
Implementation
5

6. Components of a strategy
• Mission
• Product/market scope
• Competitive edge (differentiation)
• Supporting policies
• Objective
• Organization culture
6

7. Begin
Constituents Culture Constituent value
Competitive General Industry Mission Product line Concentration
Market Segment
Environment Strengths
Product
weaknesses
Differentiation
Policies Action Plan Objectives
Organization
Strategic Planning 7

8. Mission
• Definition of products and services, markets,
customer needs, and distinctive competencies
Mission statement:
“to provide worldwide responsiveness to our
customers by offering the highest quality, lowest
total cost, customized, integrated, design, supply
chain, and manufacturing solutions through long-
term partnerships based on integrity and ethical
business practices.”
8

9. Environment
• Strategy is essentially the process of
positioning one-self in that environment as
trends and changes unfold. Thus, it is
necessary to identify tends in the
environment and how they affect the
strategy of the firm.
9

10. Impact of Changes in the Environment on Strategy
Technology-driven Market-driven
Focus
The Product The Customer
Creating Demand Approach
Providing Solution
Price and Product Customer’s Hearts and
Function Marketing Minds
Strategy
Product Volumes Customer Satisfaction
Revenues Profit Measure of Market
performance
Market Share
Financial Return
10

11. Product/Market scope
• “The “product” is now define by the customer”. It
is only remains to define customer satisfaction,
perception, or expectation.
• A company not simply sell goods or services, it
sells value to a particular segment of the market.
However quality is define differently for different
segment of the market. Each company must define
its market segment and customer value in the
segment. Every purchase decision is a function of
price and quality. General electric is aware of this
and has broadened its perspective from “product
quality” to “total customer satisfaction.
11

12. Differentiation
• Differentiation involves differentiating the
product or service by creating something
that is perceived by the buyer as unique.
12

13. Definitions of Quality
• Transcendent definition: excellence
• Product-based definition: quantities of
product attributes
• User-based definition: fitness for intended
use
• Value-based definition: quality vs. price
• Manufacturing-based definition:
conformance to specifications
13

14. Which Approach(es)
Function Quality Concerns
Marketing: Performance, features, service, focus on customer
concerns
User-base concerns that raise costs
Engineering: Specifications
Product-base concerns
Manufacturing: Conformance to specifications
Cost reduction
14

15. Market segmentation Quality
Differentiation may depend on one or more or a
combination, but the point is that meet customer
expectations, even if this is only what the
customer perceives as quality. This means that the
firm must define that segment of the industry.
Customer segmentation depend upon
Demographics, Geography, Volumes, Profit
potential. American society for quality control
summarized the factor influencing decisions to
purchase: performance, features, reliability,
conformance, durability, serviceability, aesthetics,
perceived quality.
15

16. Management By Objective
Key area for setting an objective
1. Marketing
2. Innovation
3. Human organization
4. Financial resources
5. Physical resources
6. Productivity
7. Social responsibility
8. Profit requirements
16

17. Supporting Policies
Policies are guideline for action and
decision making that faciliate the attainment
of objectives
17

18. Target market Product line
Finance & Marketing
Control
Differentiation
Research & Mission Sales
Development Objective
Human Distribution
Resources
Suppliers Manufacturing
Policy Wheel 18