1. Importance of Quality in global Business
EMBA 2013-15
SAAKSHI MEHTA 13059
AVI PIPADA 13011
ZAIN SHAIKH 13086
kHUSHBOO JAIN 13091
YUSUF SHAIKH 13043
2. Importance of Quality
In a time when companies are focused on getting
more for less, it’s time to remember your Ps and
Qs—“P” is for product, and “Q” is for quality.
If you aren’t certain that everything possible is
being done to ensure the quality of your products
overseas and at home, your brand is at risk.
So are your profits.
3. Quality and Strategy
Managing quality supports
differentiation, low cost, and
response strategies
Quality helps firms increase sales
and reduce costs
Building a quality organization is a
demanding task
4. Two Ways Quality
Improves Profitability
Sales Gains via
Improved response
Flexible pricing
Improved reputation
Improved
Quality
Increased
Profits
Reduced Costs via
Increased productivity
Lower rework and scrap costs
Lower warranty costs
Figure 6.1
5. Defining Quality
The totality of features and
characteristics of a product or service
that bears on its ability to satisfy stated
or implied needs " If
an automobile company finds a defect
in one of their cars and makes a
product recall, customer reliability and
therefore production will decrease
because trust will be lost in the car's
quality.
6. Implications of Quality
1. Company reputation
Perception of new products
Employment practices
Supplier relations
2. Product liability
Reduce risk
3. Global implications
Improved ability to compete
7. Key Dimensions of Quality
Performance
Durability
Features
Serviceability
Reliability
Aesthetics
Conformance
Perceived quality
Value
8. Problems of Global Business
The Tylenol crisis in the early 1980s
Today’s far-flung manufacturing facilities
Ever-present threat of terrorism
Leaders address these obstacles by striving to create
transparent companies
10. TQM
Encompasses entire organization, from supplier to
customer
Stresses a commitment by management to have a
continuing, companywide drive toward excellence in
all aspects of products and services that are important
to the customer
11. Seven Concepts of TQM
Continuous improvement
Six Sigma
Employee empowerment
Benchmarking
Just-in-time (JIT)
Taguchi concepts
Knowledge of TQM tools
12. Just-in-Time (JIT)
Relationship to quality:
JIT cuts the cost of quality
JIT improves quality
Better quality means less inventory
and better, easier-to-employ JIT
system
13. Just-in-Time (JIT)
‘Pull’ system of production scheduling
including supply management
Production only when signaled
Allows reduced inventory levels
Inventory costs money and hides process and material problems
Encourages improved process and product
quality
14. Tools of TQM
Tools for Generating Ideas
Check sheets
Scatter diagrams
Cause-and-effect diagrams
Tools to Organize the Data
Pareto charts
Flowcharts
Tools for Identifying Problems
Histogram
Statistical process control chart
15. Seven Tools of TQM
•
Flowchart (Process Diagram): A chart that describes the steps in a
process
Figure 6.6
16. Seven Tools of TQM
•
Check Sheet: An organized method of recording data
Defect
1
2
A
B
C
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//
/
/
/
//
3
Hour
4
5
/
/
/
/
6
7
8
/
///
//
//
/
///
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Figure 6.6
17. Seven Tools of TQM
Scatter Diagram: A graph of the value of one variable vs.
another variable
Productivity
•
Absenteeism
Figure 6.6
18. Seven Tools of TQM
•
Cause-and-Effect Diagram: A tool that identifies process
elements (causes) that might effect an outcome
Cause
Materials
Methods
Effect
Manpower
Machinery
Figure 6.6
19. Quality helps determine a firms
success in no. of ways...
Customer loyalty
Strong brand reputation for quality
Retailers want to stock the product
Product is perceived as better value for money
Attracting and retaining good staff
20. Conclusion
In terms of quality Global growth can be both daunting
and rewarding.
And
Firms have to work hard to maintain and improve their
reputation for quality, which can be easily damaged by
a news story...
