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Understanding
Quality
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
WHAT IS A CUSTOMER?
A person or company
who purchases goods
or services.
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.
QUALITY STRATEGY
Customer
Practices
or Culture
Principles
and
Processes
People or
Employee
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.
DEFINING QUALITY
Supposed you eat
on a restaurant how
will you judge its
quality?
Example
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)
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
TOTAL QUALITY
PERSPECTIVE
Focuses on continual
improvement of
products, processes
and people during
product development
HINDRANCES TO TOTAL
QUALITY
Taking a narrow, dogmatic
approach.
Confusion about the differences
among education, awareness,
inspiration, and skill-building.
VALUE OF QUALITY
•Improved
response
•Flexible
pricing
•Improved
reputation
•Increased
productivity
•Lower rework
and scrap costs
•Lower
warranty costs
Sales
Gains
via
Reduced
Costs
via
Improved Quality
Increased Profits
Jay Heizer and Barry Render
Operations Management, 10th Edition, Global Edition, Chapter 6
Pearson/Prentice Hall, Inc. Company, 2011 Education Inc.
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
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
QUALITY GURUS
W. Edwards Deming Joseph M. Juran Philip B. Crosby
Armand V.
Feigenbaum
Aristotle
“Quality is not an act it is a habit”

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Understanding Quality.ppt

  • 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.
  • 7. DEFINING QUALITY Supposed you eat on a restaurant how will you judge its quality? Example
  • 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
  • 10. TOTAL QUALITY PERSPECTIVE Focuses on continual improvement of products, processes and people during product development
  • 11. HINDRANCES TO TOTAL QUALITY Taking a narrow, dogmatic approach. Confusion about the differences among education, awareness, inspiration, and skill-building.
  • 12. VALUE OF QUALITY •Improved response •Flexible pricing •Improved reputation •Increased productivity •Lower rework and scrap costs •Lower warranty costs Sales Gains via Reduced Costs via Improved Quality Increased Profits Jay Heizer and Barry Render Operations Management, 10th Edition, Global Edition, Chapter 6 Pearson/Prentice Hall, Inc. Company, 2011 Education Inc.
  • 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
  • 15. QUALITY GURUS W. Edwards Deming Joseph M. Juran Philip B. Crosby Armand V. Feigenbaum
  • 16. Aristotle “Quality is not an act it is a habit”

Editor's Notes

  1. Is a customer and a consumer the same? Who are your customers?
  2. 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.
  3. The ability of a product or service to meet customer needs.