Quality Management Philosophy Concepts 2013 ST Version

QUALITY MANAGEMENT
Philosophy & Concepts

Tools and Techniques used in Total
Quality management
International Quality Standards and
Awards
January 2013
Quality Management
Literature
Quality Management for Organizational
Excellence
by David L.Goetsch and Stanley B.Davis
Jurans Quality Handbook

by Joseph M. Juran and Joseph A De Feo
January 2013
Quality Management
Part 1
Philosophy & Concepts
January 2013
Quality Management
QM Philosophy & Concepts
The Total Quality Approach

Quality and Global Competitiveness
Strategic Management
Ethics
Partnering
Quality Culture
Customer Satisfaction
Employee Empowerment
Leadership and Change
Teambuilding and Teamwork
Effective Communication
Training
January 2013
Quality Management


Ethics
Partnering
Quality Culture
Training
January 2013
Quality Management
Quality
Quality has been defined in a number of ways.
When viewed from a consumers perspective,
it means meeting or exceeding customer
expectations.
..providing him with superior value
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Quality Management
Dimensions of Quality
Dimension
Performance
Features
Conformance
Reliability
Durability
Serviceability
Response
Aesthetics
Reputation
January 2013
Product example
Mobile phone
Signal, Battery charge
Internet, camera,......
Workmanship
Mean-time-to-failure
Useful life
Ease of repair
Courtesy of dealer
Surface finish
Customer report ranking
Quality Management
Two Views of Quality

How well the features of a product or service
meet the customer need and therefore
provide them with satisfaction => higher
quality costs (usually) more
Freedom from failures => higher quality costs

(usually) less
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Quality Management
Total Quality
Total quality is an approach to doing business
that attempts to maximize an organizations
competitiveness through the continual
improvement of the quality of its products,
services, people, processes, and
environments.
January 2013
Quality Management
Managing for Quality (Juran)

A set of universal methods that any
organization, whether a business, an agency, a
university or a hospital can use to attain
superior results by designing, continuously
improving and ensuring that all products,
services and processes meet customer and
stakeholder needs.
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Jurans trilogy
Designing and planning for Quality
Compliance, controlling and assuring
quality
Improving quality
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Jurans trilogy
Creating processes to design goods and services
to meet needs of the stakeholders (internal and
external). Understand needs of customers
Creating processes to control quality. Ensure
compliance to design criteria
Creating a systematic approach to improve
continuously. Failures must be discovered and
remedied.
=> Create functions and skills to do the things
above
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Financial trilogy
Financial planning
Annual financial and operational budgets (revenues, costs and
profits)
Financial goals for the organization and its divisions
Financial control
Evaluation of actual financial performance and taking action on
the differences
Cost control, expense control, risk management, inventory
control, etc.
Financial improvement
Improvement of financial results
Cost reduction projects, new facilities, new product
development, M &A, joint ventures, etc
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Quality planning
Establish the project and design goals
Identify the customers
Discover the customer needs
Develop the product or service features
Develop the process features
Develop the controls and transfer to operations
=> Customer customer needs- product features
process features- process control features
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Quality planning tools
Benchmarking
Brainstorming
Competitive analysis
Control charts
FMEA
Flow diagram
Process capability
Scatter diagram
Etc.
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Quality Control
Assure Repeatable and Compliant Processes
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Quality Control Tools

SPC (Statistical Process Control)
Problem Solving methods
Poka Yoke
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Quality Improvement
Create breakthroughs in Performance
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Quality Improvement Tools

Six Sigma
RDMAIC process
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Recognize
Define
Measure
Analyze
Improve
Control
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Jurans trilogy
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The Total Quality Approach to

Quality Management
Key characteristics of the total quality approach are
as follows:
strategically based,
customer focus,
long-term commitment,
teamwork,
employee involvement and empowerment,
continual process improvement,
education and training,
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The Total Quality Approach to

Quality Management
The rationale for total quality can be found in the

need to compete in the global marketplace.
Countries that are competing successfully in the
global marketplace are seeing their quality of living
improve. Those that cannot are seeing theirs
decline.
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The Total Quality Pioneers

W. Edward Deming is best known for his Fourteen Points, the
Deming Cycle
Joseph M. Juran is best known for the Pareto Principle, and the
Juran Trilogy.
Armand V. Feigenbaum is best known for his Total Quality
Control.
Philip B. Crosby is best known for his Quality is Free and the
Zero Defects program
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Ethics
Partnering
Quality Culture
Training
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Several factors can inhibit competitiveness,
including those related to business and
government, family, and education.
In a global marketplace quality is the key to
competitiveness.
Total Quality approach minimizes the Cost of
Quality, making products or services more
competitive
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Costs of Quality
Prevention
Appraisal and inspection
Internal failure
External failure
COPQ
COPQ = Costs of Poor Quality
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Prevention Costs
Quality Planning activities
FMEA analysis
Control Plans
Quality training
Product design Verification
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Appraisal and Inspection Costs
Testing product
Reviewing documents
Inspecting equipment and supplies
End of line inspection
Product audits
Etc.
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Internal Failure Costs
Rework on product
Scrap of non conforming product
Correcting database errors
Stocking extra parts to replace defective
components
Etc,
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External Failure Costs

Warranty claims
Product recalls
Investigating complaints
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Direct Cost of Poor

Quality (4 8% of
Sales)
Scrap
Rework
Warranty
Customer Return
Loss of Customer Loyalty

Engineering change
Excessive inventory
Late delivery
Excessive overtime
Excessive employee turnover
Expediting costs
Indirect Cost of Poor

Quality (15 25% of
Sales)
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Cost of Quality
Costs
Total
Failure
Appraisal & Prevention

Freedom from failures
100%
Jurans Cost of Quality

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Cost of Quality
Cost of Quality
Quality Costs
Junk
Zone
Excess
Quality
Profit
Zone
Customer Value
of Quality
Freedom from Failures
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Quality Management
100%
33
Quality Cost as % of Sales
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Cost distribution as a % of total cost of

Quality
3,5 %
2,5 %
26 %
Appraisal
Internal Failure
68 %
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Prevention
External Failure
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COPQ car recalls USA

January 30, 2013
Toyota Motor on Wednesday announced recalls involving

more than 1 million vehicles in the U.S
Combined, it's one of the largest recalls so far this year
Most are Corollas, some are Lexus IS sedans
One recall involves airbags and the other focuses on wipers
Last month, Toyota agreed to pay more than $1 billion in

the U.S. to settle lawsuits where vehicle owners said the
value of their cars and SUVs plummeted after the company
recalled millions of vehicles because of sudden-acceleration
issues
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Investment in Quality Cost
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The most important key in maximizing competitiveness is the

human resource.
The Competitive Edge is in the Quality of the People
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Ethics
Partnering
Quality Culture
Training
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Strategic management is management that bases
all actions, activities, and decisions on what is
most likely to ensure successful performance in
the marketplace.
The two major components of strategic
management are strategic planning and strategic
execution.
Part of strategic planning is thinking creatively to
eliminate sacred cows that work against
competitiveness.
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Strategic planning
Who are we?

Where are we going?
How will we get there?
What do we hope to accomplish?
What are our core competencies?
What are our strengths and weaknesses?
What are our opportunities and threats?
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Strategic Planning Process

Step 1
SWOT Analysis
Step 2
Develop the Vision
Step 3
Develop the Mission
Step 4
Develop the Guiding Principles
Step 5
Develop the Broad Strategic Objectives
Step 6
Develop the Specific Tactics
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(environmental assessment)
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(action plan)
42
SWOT analysis
SWOT analysis is defined as a structured
approach to evaluating the strategic position
of a business by identifying its strengths,
weaknesses, opportunities and threats
SWOT analysis identifies the core
competencies of the organization
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Core competencies
Core competencies are things an organization

does so well they can be viewed as providing a
competitive advantage.
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SWOT analysis
Opportunities
Threats
=> apply to External Factors
Strengths
Weaknesses
=> apply to Internal Factors
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SWOT analysis
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Vision
An organizations vision is its guiding force,

the dream of what it wants to become and
its reason for being.
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Mission
An organizations mission describes who an

organization is, what it does, and where it is
going.
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Guiding Principles
An organizations guiding principles establish
the framework within which it will pursue its
mission. Together, the guiding principles
summarize an organizations value system,
the things it believes are most important.
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Broad strategic objectives

An organizations broad strategic objectives
translate its mission into more specific terms
that represent actual targets at which the
organization aims. The objectives are more
specific than the mission, but they are still
broad.
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Action plan
Well defined, finite projects and activities
undertaken for the purpose of specific desired
outcomes in support of the broad objectives.
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Strategies that organizations can adopt for gaining a
sustainable competitive advantage are
cost leadership,
differentiation, and
market-niche strategies.
Total Quality can be the most effective cost

leadership or differentiation strategy
improve efficiency, cut costs
continuous improvement of the product features
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Integration of Quality programs in strategic
plan is important for their success
This includes annual quality goals and
subgoals
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Strategic Execution
Even the best strategic plan will serve no
purpose unless it is effectively executed.
Progress of achieving goals is measured
by:
KPIs (Key Process Indicators)
Quantitative reports on performance
Audits
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Ethics
Partnering
Quality Culture
Training
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Ethics
Ethics is about doing the right thing within a
moral framework.
The most common impediment to ethical
conduct is human nature because people
tend to behave according to perceived
personal interest.
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Ethics
The Total Quality approach cannot be
successfully implemented in an organization
that fails to subscribe to high standards of
ethical behavior
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Ethics
Many of the fundamental elements of total quality
depend on trust and ethical behavior, including
communication,
interpersonal relations,
conflict management,
problem solving, teamwork,
employee involvement and empowerment, and
customer focus.
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Ethics
Sarbannes Oxley (SOX) Federal law in the US.
Top management must now individually
certify the accuracy of financial information.
Penalties for fraudulent financial activity are
much more severe
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Ethics
Partnering
Quality Culture
Training
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Partnering
Partnering means working together for mutual
benefit. It involves pooling resources, sharing costs,
and cooperating in ways that mutually benefit all
parties involved in the partnership.
Partnerships may be formed
internally (among departments) and
externally with suppliers, customers
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Partnering with suppliers

85% of the added value comes from suppliers
(automotive industry)
Traditional model (based on price only)
Total Quality model partnership from design
to delivery
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Partnering with Customers

The rationale for forming customer
partnerships is customer satisfaction.
The best way to ensure customer satisfaction
is to involve customers as partners in the
product development process.
Doing so is, in turn, the best way to ensure
competitiveness.
Customer-defined quality is a fundamental
aspect of total quality.
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Partnering with Suppliers &

Customers
Invisible wall
Suppliers
Suppliers
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Customer
Customer
Quality Management
End Users
End Users
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Ethics & Corporate Social Responsibility
Partnering and Strategic Alliances
Quality Culture
Training
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Quality Culture
One of the greatest obstacles in implementing Total Quality is the
cultural behavior
Why?
Successful Total Quality implementation requires cultural change
People do not like to change!
Resisting change is natural human behavior
Fear
Uncertainty
Loss of control
More work
Emotional transition
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Total Quality culture
Short vs long term objectives

Managers as coaches vs bosses
Finger pointing vs problem solving
Supplier cooperation
Continuous improvement
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Behaviour matches slogans
Customer input is actively sought and used to
continually improve quality
Employees are both involved and empowered
Work is done in teams
Executive level managers are both committed and
involved, responsibility for quality is NOT delegated
Sufficient resources are made available where and
when they are needed to ensure the continuous
improvement of quality
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Education and training are provided to ensure that
employees at all levels have the knowledge and skills
needed to continuously improve quality
Reward and promotion systems are based on
contributions to the continual improvement of
quality
Fellow employees are treated as internal customers
Suppliers are treated as partners
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Ethics
Partnering
Quality Culture
Training
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(
Every organization has both internal and

external customers.
An external customer is the one referred to
in the traditional definition.
An internal customer is any employee

whose work depends on that of employees
whose work precedes his or hers.
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Supplier
Supplier
January 2013
The Company and its processes

Customer
& Supplier
Customer
& Supplier
Customer
& Supplier
Customer
& Supplier
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Customer
Customer
& Supplier
Customer
& Supplier
Customer
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In a total quality setting, customers define
quality. Therefore, customer satisfaction must be
the highest priority.
Customer satisfaction is achieved by producing
high-quality products that meet or exceed
expectations.
=>It must be renewed with each purchase.
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The key to establishing a customer focus is to put
employees in touch with customers so that
customer needs are known and understood.
Once the customer needs and expectations are
defined they need to be translated into product
specification.
One of the tools to do so is Quality Function
Deployment (QFD)
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Quality Function Deployment (QFD)

Quality Function Deployment (QFD) is a structured
approach to defining customer needs or requirements
and translating them into specific plans to produce
products to meet those requirements.
The "voice of the customer" is the term to describe
these stated and unstated customer needs or
requirements.
The voice of the customer is captured in a variety of
ways: direct discussion, surveys, customer
specifications, observation, warranty data, field
reports, etc.
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Quality Function Deployment (QFD)

This understanding of the customer requirements is
then summarized in a product planning matrix or
"house of quality".
These matrices are used to translate higher level
"what's" or requirements into lower level "how's" or
means to satisfy the requirements
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QFD example - computer mouse
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Customer requirements:
Easy to move
Does not jam
Easy to click
Contoured to hand
Easy to clean
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Customer
requirements:
Easy to move
Does not jam
Easy to click
Contoured to hand
Easy to clean
January 2013
Importance to
customer:
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8
5
4
4
2
79

Engineering Characteristics:
Energy needed to move
Button resistance
Dismantling capabilities
Easy to use
Product dimensions
Sealed ball
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A = Company A
B = Company B
X = Us
5 is the best
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Strongly positive
Positive
Negative
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QFD Matrices
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Kano model
The Kano model is a theory of product development
and customer satisfaction developed in the 80s by
Professor Noriaki Kano which classifies customer
preferences/expectations into following categories:
Must-Be
One-Dimensional
Attractive
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Kano model
Must-be / Basic Quality
These attributes are taken for granted when fulfilled but result in
dissatisfaction when not fulfilled.
One-dimensional/ Expected Quality
These attributes result in satisfaction when fulfilled and
dissatisfaction when not fulfilled. These are attributes that are
spoken of and ones which companies compete for.
Attractive /Exciting Quality
These attributes provide satisfaction when achieved fully, but do
not cause dissatisfaction when not fulfilled. These are attributes
that are not normally expected,.
.
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Kano model
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Customer expectations vs. customer

satisfaction
V=RE
Value = Results - Expectations
(There is no perceived value when customers
expectations are only met)
Karl Albrecht formula
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Customer expectations vs. customer

satisfaction
Customer
expectations
Actual
performance
Customer
satisfaction
Product A
Product B
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Value Analysis / Engineering

Value Analysis (VA) and Value Engineering
(VE) is a systematic method to improve the
"value" of goods or products and services by
using an examination of function
Value, as defined, is the ratio of function to
cost.
Value can therefore be increased by either
improving the function or reducing the cost
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Value Analysis / Value Engineering
VALUE ANALYSIS
Interpreting existing design for greatest utility at least cost using or optimizing
current manufacturing methods.
Methodology is applied after capital expenditures.
Find and Fix - remove unnecessary cost.
VALUE ENGINEERING
Understanding design requirements/intent to guide new design and
manufacturing methods.
Methodology is applied prior to capital expenditure on facilities, equipment or
tooling.
Prevent unnecessary cost.
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Value, Price and Function

Price
Market
Share
Profit
Function
(Value)
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Cost
Efficiency
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Cost versus Price and Profit
Traditional Approach:
COST + PROFIT = PRICE
Best-In-Class Approach:
PRICE - PROFIT = COST

FIXED BY THE
CUSTOMER
January 2013
FIXED BY
YOU
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Value ? Function ? Cost ?

Function
Value = --------------------Cost
Function = Things products / processes do
to reliably satisfy the customer
(performance, reliability, durability,
appearance, etc.)
Cost = All expenditures in time, people, materials,
energy, ....
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Basic and Secondary functions

Basic function
Primary purpose for the product or service
Secondary function
Not directly accomplishing the primary function

Could be supporting the primary function
Could exist to meet specifications and requirements
Could be a result of existing design
=> Almost always, every product or service has only

one basic function
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Basic and Secondary functions

Description
Eraser
Band
Pencil
Body
Paint
January 2013
Function
B S
Make marks
#
Remove marks
#
Secure eraser
#
Improve appearance
#
Support lead
#
Transmit force
#
Accomodate grip
#
Display info
#
Protect wood
#
Improve appearance
#
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Cost Drivers
Materials: - complexity, uniqueness, ...
- transport, packaging, ...
Production method:- complexity, uniqueness, ...
- labor, scrap, ...
Machines / tools: - complexity, uniqueness, ...
- wear, indirect labor, ...
Specifications: - complexity, uniqueness, ...
- unbalanced tolerances, ...
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VA thinking process
What is the product or service in question?

What functions are being performed?
What does it cost to perform each function?
In what other ways might we accomplish the
functions?
What will those alternatives cost?
What is feasible?
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Total Cost Module & Supply Chain

2 TIER
SUPPLIER
2 TIER
SUPPLIER
2 TIER
SUPPLIER
2 TIER
SUPPLIER
L
O
G
I
S
T
I
C
S
1 TIER
SUPPLIER
1 TIER
SUPPLIER
L
O
G
I
S
T
I
C
S
YOUR
COMPANY
L
O
G
I
S
T
I
C
S
CUSTOMER
Material
Capital
3rd Qtr
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Quality Management
Labour
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Customer Satisfaction and Retention

Quality Function Deployment (QFD) and
Value Analysis/ Value Engineering (VA/VE)
are two important tools to enhance Customer
Satisfaction and Customer Retention
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Customer Satisfaction, Retention and

Loyalty
Measuring customer satisfaction alone is not enough.
=> Many customers who found a defect can be
satisfied.
Organizations should, in addition, measure customer
retention.
It costs much more to find a new customer than to
retain one.
Customer loyalty
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Ethics
Partnering
Quality Culture
Training
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Empowerment means engaging employees in the
thinking processes of an organization in ways that matter
Empowerment means giving employees ownership of
their jobs ( they are the best experts)
but it does not mean that managers abdicate their responsibility
or authority
Division of labor between managers and workers changes

with empowerment
Empowerment requires a change in organizational
culture (resistance to change)
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Best Managers
for Empowerement
People Oriented
Managers
January 2013
Balanced
Managers
Quality Management
Task Oriented
Managers
105
Empowerement
Why empowerment?
it is the best way to increase creative thinking
resulting in enhancing an organizations
competitiveness.
it can be an outstanding motivator.
Vehicles:
Quality circles
Kaizen groups
Suggestion Boxes
Etc.
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Ethics
Partnering
Quality Culture

Training
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Implementing Total Quality in an organization
is in most cases a significant change
The success of this change is depending on
many factors but the most important one is
the involvement and commitment of the
Leadership!
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Leadership is the ability to inspire people to
make a total, willing, and voluntary
commitment to accomplishing or exceeding
organizational goals.
Good leaders overcome resistance to change
Good leaders are committed to both the job
to be done and the people who must do it.
They are good communicators and they are
persuasive.
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Management vs. Leadership

Management
Leadership
Coping with complexity

Planning and budgeting
for complexity
Developing the capacity
to carry out plans
through organizing and
staffing
Ensuring the
accomplishment of plans
through controlling and
problem solving
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Coping with change

Setting the direction for
change thtrough the
creation of a vision
Aligning people to work
towards the vision
Motivating and inspiring
people to want to
accomplish the plan
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To facilitate change in a positive way, leaders:
must have a clear vision and
corresponding goals,
exhibit a strong sense of responsibility,
understand what change management is
be effective communicators,
have a high energy level, and
have the will and ability to change
have the skills to lead the change
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Change Management
Change management is a process of
systematically identifying and facilitating the
implementation of new methods and systems
in an ongoing organization to minimize the
pain and resistance that normally comes with
such change
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PRODUCTIVITY
Renewal
Acceptance
/ Confusion
TIME
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Change Management
Transition model of change
Transition is the state that change puts people
into
Transition is NOT automatic (not everybody will
make it)
Reaction to change:
Embrace immediately
Take time to adopt
Never accept
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Change Management
RESISTERS OF CHANGE
- Desired status quo
- Potential Negative
Consequences of Change
ADVOCATES OF CHANGE
- Desired change
- Benefits of Change
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Change Management
Resistance can occur because people fear:
Loss of credibilty or reputation
Lack of career or financial advancement
Possible damage to relationships with boss
Loss of employment
Interpersonal rejection
Change in job role
Job transfer or demotion
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Change Management
People will support change if they:
believe the change will improve the situation
expect personal gain in security, money, status
had some input in the decision
respect the person or people who are behind the
change
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Change Management
Force-field analysis
Management technique for diagnosing situations
In any situation there are both driving and restraining
forces that influence any change
Driving forces:
tend to initiate change and keep it going
Restraining forces:
are acting to restrain or decrease the driving forces
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Change Management
Driving forces examples:
Pressure from supervisor
Incentive earnings
Competition
Restraining forces examples:

Apathy
Hostility
Poor maintenance of equipment
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Change Management
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Change Management
ADAPT
Reaction to Stress
FIGHT
AVOID
-Reactions to change-
January 2013
Victim
Change
Critic
Bystander
Change
Agent
Resists
Feels angry or depressed
Will not ask for help
Goes back to old ways of doing things
Actively looks for reasons it will not work
Will not see the positive side
Challenges appropriateness
Reluctant to get involved

Waits to see if another will take lead
Attempts to minimize negative reactions
Accepts explanations of causes and reasons
Asks to help implement
Nurtures others and forms relationships
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Change Management
30 %
Resistors
50 %
Late Adapters Critics/Victims
20 %
Innovators
Early
Adapters
Bystanders
Change Agents
Low
High
Level of Resistance
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Change Management
Proposed
Change
Automate production processes
Initiate employee
empowerement
Establish a supplier
partnership
Establish and
employee training
and education
program
January 2013
Perception of
Advocates
Improved
productivity
More resources
available for CI
Mutually beneficial
business alliances
More
knowledgable,
more highly skilled

workforce
Quality Management
Perception of
Resisters
Threat to job
security
Loss of authority
Disruption of
established
purchasing networks
Too expensive
123
Change Management
It is the task of the leaders to understand what
happens during a change
It is also their task to assure
Communication
Emotional support
Direction and Guidance
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Commitment of Top Management

Our feedbacks have made clear that the most
influential factor in successful quality
leadership has been the active participation of
upper management. In fact to our knowledge,
every successful quality revolution has
included the active participation of upper
management. We know of no exceptions.
J.M.Juran
January 2013
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125

It is not enough that top management commit
themselves for life to product quality and
productivity. They must know what it is they
are committed to i.e. what they must do.
These obligations cannot be delegated. More
resolutions or approval are not enough.
W.Edwards Deming
January 2013
Quality Management
126

The heart of quality is not technique. It is a
commitment of management to its people
and product stretching over a period of
decades and lived with persistence and
passion.
Tom Peeters
A Passion for Excellence
January 2013
Quality Management
127

Ethics
Partnering
Quality Culture

Training
January 2013
Quality Management
128
Team Building and Teamwork

A team is a group of people with a common,
collective goal.
The rationale for the team approach to work is
that two heads are better than one
January 2013
Quality Management
129
Teamwork
Quality Circles
Kaizen
Team oriented problem solving
8D methodology (Ford)
January 2013
Quality Management
130

Ethics
Partnering
Quality Culture
Training
January 2013
Quality Management
131
Communication
Message received
January 2013
Communi
cation
Quality Management
Message understood
132
Effective communication
Communication is the transfer of a message
that is both received and understood.
Effective communication is a higher order of
communication. It means the message is
received, understood, and being acted on in
the desired manner.
Communication is the oil that keeps the total
quality engine running. Without it, total
quality breaks down.
January 2013
Quality Management
133
Effective communication
In Total Quality, the success of the following
elements is depending on effective
communication:
Customer focus
Leadership
Decision Making
Teamwork
Problem solving
Employee empowerment
January 2013
Quality Management
134

Ethics
Partnering
Quality Culture
Training
January 2013
Quality Management
135
Training
Training is an organized, systematic series of
activities designed to enhance an individuals
work-related knowledge, skills, understanding,
and motivation.
.
.
January 2013
Quality Management
136
Training
Benefits of training
Fewer production errors

Increased productivity
Improved quality
Decreased turnover rate
Improved safety and health
Increased flexibility of employees
Better response to change
Improved communication
Better teamwork
January 2013
Quality Management
137
Training
Chinese proverb:
You hear you forget
You see you remember
You do you understand
January 2013
Quality Management
138

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QUALITY MANAGEMENT

Philosophy & Concepts

Jurans Quality Handbook

QM Philosophy & Concepts

The Total Quality Approach

QM Philosophy & Concepts

Quality and Global Competitiveness

Two Views of Quality

Freedom from failures => higher quality costs

Managing for Quality (Juran)

Quality planning tools

Quality Control Tools

Quality Improvement Tools

The Total Quality Approach to

The Total Quality Approach to

The rationale for total quality can be found in the

The Total Quality Pioneers

QM Philosophy & Concepts

Quality and Global Competitiveness

Quality and Global Competitiveness

COPQ = Costs of Poor Quality

Appraisal and Inspection Costs

Internal Failure Costs

External Failure Costs

Direct Cost of Poor

Loss of Customer Loyalty

Indirect Cost of Poor

Appraisal & Prevention

Jurans Cost of Quality

Quality Cost as % of Sales

Cost distribution as a % of total cost of

COPQ car recalls USA

Toyota Motor on Wednesday announced recalls involving

Last month, Toyota agreed to pay more than $1 billion in

Investment in Quality Cost

Quality and Global Competitiveness

The most important key in maximizing competitiveness is the

QM Philosophy & Concepts

Who are we?

Strategic Planning Process

Develop the Vision

Develop the Mission

Develop the Guiding Principles

Develop the Broad Strategic Objectives

Develop the Specific Tactics

Core competencies are things an organization

An organizations vision is its guiding force,

An organizations mission describes who an

Broad strategic objectives

Total Quality can be the most effective cost

QM Philosophy & Concepts

QM Philosophy & Concepts

The Total Quality Approach

Partnering with suppliers

Partnering with Customers

Partnering with Suppliers &

QM Philosophy & Concepts

The Total Quality Approach

Total Quality culture

Short vs long term objectives

Total Quality culture

Total Quality culture

QM Philosophy & Concepts