Qulity Managment

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Quality Management
for Organizational Excellence
Lecture/Presentation Notes
By: Dr. David L. Goetsch and Stanley Davis Based on the book Quality Management for Organizational Excellence (7Th Edition)

Presented By;
Dr. Rania A.M Shamah Associate Professor of Business Administration 1

One: The Total Quality Approach to Quality Management
MAJOR TOPICS • What is Quality? • The Total Quality Approach Defined • Two Views of Quality • Key Elements of Total Quality • Total Quality Pioneers • Keys to Total Quality Success • How is Six Sigma Achieved? • The Future of Quality Management 2

One: The Total Quality Approach to Quality Management
 Quality has been defined in a number of ways.
 When viewed from a consumer’s perspective, it means meeting or exceeding customer expectations.  Quality is a dynamic state associated with products, services, people, processes, and environments that meets or exceeds expectations.

 Total quality is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its  products, services, people, processes, and environments. 3

The Consequences of Poor Quality
 Loss of business  Productivity  Costs

Benefits of Good Quality
 Enhanced reputation for quality  Ability to command higher prices

 Increased market share
 Greater customer loyalty  Lower liability costs  Fewer production or service problems  Higher profits 4

Responsibility for Quality
 Everyone in the organization has some responsibility for quality, but certain areas of the organization are involved in activities that make them key areas of responsibility.  Top management  Design

 Procurement
 Production/operations  Quality assurance  Packaging and shipping  Marketing and sales  Customer service 5

Costs of Quality
 Failure Costs - costs incurred by defective parts/products or faulty services. • Internal Failure Costs • Costs incurred to fix problems that are detected before the product/service is delivered to the customer.

• External Failure Costs
• All costs incurred to fix problems that are detected after the product/service is delivered to the customer

• Appraisal Costs


Costs of activities designed to ensure quality or uncover defects All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring

• Prevention Costs


6

Ethics and Quality
 Substandard work • • • • • Defective products Substandard service Poor designs Shoddy workmanship Substandard parts and materials Having knowledge of this and failing to correct and report it in a timely manner is unethical. 7

Total Quality Management

T

Q

M

 A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.  Total quality is not just one individual concept.  It is a number of related concepts pulled together to create a comprehensive approach to doing business.  Many people contributed in meaningful ways to the development of the various concepts that are known collectively as total quality

TQM Approach
1. Find out what the customer wants 2. Design a product or service that meets or exceeds customer wants 3. Design processes that facilitate doing the job right the first time 4. Keep track of results 5. Extend these concepts throughout the supply chain

8

TQM Elements
1. Continuous improvement 2. Competitive benchmarking 3. Employee empowerment 4. Team approach 5. Decision based on fact, not opinion 6. Knowledge of tools 7. Supplier quality 8. Champion 9. Quality at the source 10. Suppliers are partners in the process 9

Continuous Improvement
 Continuous Improvement • Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs • Kaizen • Japanese word for continuous improvement.

Quality at the Source
...
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