Test Questions: Corporate Planning and Strategic Management

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CH1 Intro: QA refers to any planned & systematic activity directed toward providing consumers w/ products of appropriate Q, along w/ the confidence that products meet consumer’s req. Age of Craftsmanship: skilled craftsperson served both as manuf & inspector. Early 20 century (1900) Frederick W. Taylor father of scientific mgmt separate planning function from execution. Henry Ford total Q practices. 1920 Bell Telephone Labs development of new theories & methods of inspection. Pioneers of QA: Walter Shewhart (statistics QC), Harold dodge, George Edwards, Joseph Juran, W. Edwards Dening. Post WWII: 40s & 50s shortage of civilian goods in the US made production priority, Q remained in its own dept. Top mgmt showed little interest in Q & relied on mass inspection. 2 consultants, Dr. Joseph Juran & Dr. W. Edwards Deming went to Japan & introduced statistical Q control techniques. Intro to top mgmt & adopted a philosophy of continuous improvement (kaizen) throughout the entire org. 1951 Union of Japanese Scientists & Engineers (JUSE) instituted the Deming Prize. Improvements in Japanese Q took 20 yrs until they surpassed US manuf. US Q Revolution: before 60s Japanese products were considered inferior & most consumers bought domestic products. 70s, increased international competition & appearance of higher Q foreign products on the market failure of the space expedition Challenger is the largest example of needs for Q. Businesses see Q as key to their survival, let alone profitability. A trend w/ US companies: focusing on Q short-term & doing bad long-term From Product Q to TQM: Q initiatives focused only on products & saw a distinction between “Q of mgmt” & “mgmt of Q.” Big Q – throughout the entire org & Little Q – Q on manuf only. This brought the notion of TQM. Org-wide performance excellence rather than just focusing on production-based technical discipline. Now, TQM has no significance (it failed) but the underlying principles of Q mgmt are recognized as the foundation of high-performance. Disappointments & Criticism: TQM became a trend & many companies strived to institute a Q program & failed. TQM was seen as a fad & inherently flawed in 90s. Reasons for TQM failures are from poor mgmt org & strategies; after TQM came 6 Sigma customer-focused & results-oriented approach to business improvement. Performance Excellence: integrated approach to org performance mgmt results in Delivery of ever-improving value to customers & stakeholders, contributing to org sustainability, Improvement of overall org effectiveness & capabilities, Org & personal learning. Current & Future Challenges: challenge today is to ensure that managers do not lose sight of basic principles on which Q mgmt & performance excellence are based. allocating necessary resources to maintain a focus on Q especially in economic downturn. 7 key forces will influence the future of Q: Globalization, Social responsibility, New dimensions of Q, Aging population, Health care, Environmental concerns, 21st century technology. Defining Q transcending: Perfection, Consistency, Eliminating waste, Speed of delivery, Compliance w/ policies & procedures, Providing a good, usable product, Doing it right the 1st time, Delighting customers, Total customer service & satisfaction(excellence). Judgmental Perspective: Q you just know it when you see it. Product-Based Perspective: qty of product attributes function of a specific, measurable variable. Q is often mistaken in relation to price(quantity). User-Based Perspective: fitness for intended use. Value-Based: Q vs. price product that offers greater usefulness at a comparable price. Manuf-Based: conformance to specs (targets & tolerances determined by designers of products) Integrating Perspectives on Q: depends on standpoint in the value chain; differs if you are the producer or consumer; customer is driving force Customer-Driven Q: By end of 80s, customer-driven definition of Q remains most popular: Q is meeting or exceeding...
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