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2/3/2012

Chapter 1
Introduction to
Quality

Evans & Lindsay (2008) MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e

Quality Management
Quality management refers to systematic
policies, methods, and procedures used to
ensure that goods and services are produced
with appropriate levels of quality to meet the
needs of customers.

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

History of Quality Management


(1 of 3)

z
z

z
z

Skilled craftsmanship during Middle Ages


Industrial Revolution: rise of inspection and
separate quality departments
E l 20th Century:
Early
C t
statistical
t ti ti l methods
th d att B
Bellll
System
Quality control during World War II
Post-war Japan: evolution of quality
management
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

2/3/2012

History of Quality Management


(2 of 3)

Quality awareness in manufacturing


industry during 1980s: from Little Q to
g Q - Total Quality
y Management
g
Big
American and European Quality Awards
(1980s)
Disappointments and criticism

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

History of Quality Management


(3 of 3)

z
z

Emergence of quality management in


service industries, government, health care,
and education
Evolution of Six Sigma
Current and future challenge: keep progress
in quality management alive

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

Contemporary Influences on
Quality
z
z
z
z
z
z
z
z

Partnering
Learning systems
Adaptability and speed of change
Environmental sustainability
Globalization
Knowledge focus
Customization and differentiation
Shifting demographics

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

2/3/2012

Defining Quality
Perfection

Fast delivery

Providing a good, usable product


Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers
Total customer service and satisfaction
Compliance with policies and procedures
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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

Formal Definitions of Quality


z
z

z
z
z

Transcendent definition: excellence


Product-based definition: quantities of product
attributes
User-based
User
based definition: fitness for intended use
Value-based definition: quality vs. price
Manufacturing-based definition: conformance
to specifications

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

Quality Perspectives
transcendent &
product--based
product
Customer
products
d t
and
services

user--based
user
needs

Marketing

value--based
value

Design

manufacturingmanufacturingbased

Manufacturing
Distribution
Information flow
Product flow

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

2/3/2012

Key Idea
Because individuals in different business
functions speak different languages,
the need for different views of what
constitutes quality at different points
inside and outside an organization is
necessary to create products of true
quality that will satisfy customers needs.

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

10

Customer-Driven Quality
z

Meeting or exceeding customer


expectations
Customers can be...
z
z
z

Consumers
External customers
Internal customers

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

11

Total Quality
z
z
z

z
z

People-focused management system


Focus on increasing customer satisfaction and
reducing costs
A systems
y
approach
pp
that integrates
g
organizational functions and the entire supply
chain
Stresses learning and adaptation to change
Based on the scientific method

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

12

2/3/2012

Principles of Total Quality


Customer and stakeholder focus
Participation and teamwork
Process focus supported by continuous
improvement and learning

z
z
z

all supported by an integrated organizational


infrastructure, a set of management practices,
and a set of tools and techniques
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

13

Customer and Stakeholder


Focus
z
z

z
z

Customer is principal judge of quality


Organizations must first understand
customers needs and expectations in
order to meet and exceed them
Organizations must build relationships with
customers
Customers include employees and society
at large
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

14

Key Idea
To meet or exceed customer expectations,
organizations must fully understand all
product and service attributes that
contribute to customer value and lead to
satisfaction and loyalty.

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

15

2/3/2012

Participation and Teamwork


z
z

z
z

Employees know their jobs best and therefore,


how to improve them
Management must develop the systems and
procedures that foster participation and
teamwork
Empowerment better serves customers, and
creates trust and motivation
Teamwork and partnerships must exist both
horizontally and vertically
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

16

Key Idea
In any organization, the person who
best understands his or her job and
how to improve both the product and
the process is the one performing it.

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

17

Process Focus and Continuous


Improvement
z

A process is a sequence of activities that is


intended to achieve some result

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

18

2/3/2012

Continuous Improvement
z

z
z
z

Enhancing value through new products and


services
Reducing errors, defects, waste, and costs
Increasing productivity and effectiveness
Improving responsiveness and cycle time
performance

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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

Key Idea
Major improvements in response time may
require significant simplification of work
processes and often drive simultaneous
improvements in quality and productivity.

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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

Demings View of a
Production System
Suppliers of
materials and
equipment

Design and
Redesign
Receipt and test
of materials

A
B
C
D

Production, assembly
inspection

Consumer
research
Consumers
Distribution

Tests of processes, machines, methods

INPUTS

PROCESSES

OUTPUTS

Feedback
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

21

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Learning
z

The foundation for improvement


Understanding why changes are successful
through feedback between practices and results,
which leads to new g
goals and approaches
pp
Learning cycle:
z
z
z
z

Planning
Execution of plans
Assessment of progress
Revision of plans based on assessment findings

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

22

Infrastructure, Practices, and


Tools
Infrastructure
Leadership

Strategic
Planning

Practices

HRM

Performance
appraisal

Tools

Process
mgt.

Information and knowledge


management

Training

Trend chart

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

23

TQ Infrastructure
z
z
z
z
z

Customer relationship management


Leadership and strategic planning
Human resources management
P
Process
managementt
Information and knowledge management

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

24

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Competitive Advantage
z
z
z
z
z
z

Is driven by customer wants and needs


Makes significant contribution to business
success
Matches organizations
organization s unique resources with
opportunities
Is durable and lasting
Provides basis for further improvement
Provides direction and motivation

Quality supports each of these characteristics


Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

25

Quality and Profitability


Improved quality
of design

Improved quality
of conformance

Higher perceived
value

Higher
prices

Increased market
share

Increased
revenues

L
Lower
manufacturing and
service costs

Higher profitability
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

26

Key Idea
Considerable evidence exists that
quality initiatives positively impact
bottom-line results.
results

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

27

2/3/2012

Key Idea
An organization that is committed to total
quality must apply it at three levels: the
organizational level,
level the process level
level, and
the performer/job level.

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

28

Three Levels of Quality


z

Organizational level: meeting external


customer requirements
Process level: linking external and internal
customer requirements
Performer/job level: meeting internal
customer requirements

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

29

Quality and Personal Values


z

z
z

Personal initiative has a positive impact on


business success
Quality begins with personal attitudes
Quality-focused individuals often exceed
customer expectations
Attitudes can be changed through awareness
and effort (e.g., personal quality checklists)

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

30

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2/3/2012

Key Idea
In the daily attempt to bring about change in the
individual parts of the organizational universe,
managers, employees, professors, and students
can find that personal quality is the key to unlock
the door to a wider understanding of what the
concept really is all about. Unless quality is
internalized at the personal level, it will never
become rooted in the culture of an organization.
Thus, quality must begin at a personal level (and
that means you!).
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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, 2008
Dr. Owlia, Yazd University

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