Strategic Quality Planning

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 Strategic Quality Planning

The basics of total quality management

can effectively govern executive-level
strategic management and goal setting.
The process of envisioning an
organizations future and developing the
necessary procedures and operations to
achieve that future.

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 Strategic And The Strategic
Planning Process
A strategy is a pattern or plan that integrates an
organizations major goals, policies, and action
sequences into a cohesive whole.
Total Quality begins with a strategic decisiona decision
that can only be made by top management and that
decision, simply put, is the decision to compete as a world-
class company. Total Quality concentrates on quality
performance in every fact of the business and the primary
strategy to achieve and maintain competitive advantage. It
requires taking a systematic took at an organization
looking at how each part interrelates to the whole process.
In demands continuous improvement as a way of life,

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 Corporate Strategy
Formal corporate strategy includes:
Goals to be achieved
Policies to guide or limit action
Action sequences, or programs,
that accomplish the goals

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 Strategic Quality Managements
Reason for existence Future intent Attitudes and policies

Mission Vision Guiding Principles

Environmental assessment Capabilities and risks

Strategies Broad statements of direction

Strategic Objectives Things to change or

improve
Action Plans
Implementation
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Components of a strategy

Mission
Product/market scope
Competitive edge (differentiation)
Supporting policies
Objective
Organization culture

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 Begin
Begin

Constituents
Constituents Culture
Culture Constituent
Constituentvalue
value
Competitive General Industry
Competitive General Industry Mission
Mission Product
Productline
line Concentration
Concentration
Market Segment

Environment Strengths
Strengths
Environment Product
Product
weaknesses
weaknesses
Differentiation
Differentiation
Policies
Policies Action
ActionPlan
Plan Objectives
Objectives

Organization
Organization
Strategic Planning
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Mission
Definition of products and services, markets,
customer needs, and distinctive competencies
Mission statement:
to provide worldwide responsiveness to our
customers by offering the highest quality, lowest
total cost, customized, integrated, design, supply
chain, and manufacturing solutions through long-
term partnerships based on integrity and ethical
business practices.

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Environment

Strategy is essentially the process of

positioning one-self in that environment as
trends and changes unfold. Thus, it is
necessary to identify tends in the
environment and how they affect the
strategy of the firm.

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Impact of Changes in the Environment on Strategy

Technology-driven Market-driven
Focus
The Product The Customer
Creating Demand Approach
Providing Solution
Price and Product Customers Hearts and
Function Marketing Minds
Strategy
Product Volumes Customer Satisfaction
Revenues Profit Measure of Market
performance
Market Share
Financial Return

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Product/Market scope
The product is now define by the customer. It is
only remains to define customer satisfaction,
perception, or expectation.
A company not simply sell goods or services, it sells
value to a particular segment of the market. However
quality is define differently for different segment of
the market. Each company must define its market
segment and customer value in the segment. Every
purchase decision is a function of price and quality.
General electric is aware of this and has broadened
its perspective from product quality to total
customer satisfaction.
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Differentiation

Differentiation involves differentiating the

product or service by creating something
that is perceived by the buyer as unique.

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 Definitions of Quality

Transcendent definition: excellence

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

Function Quality Concerns

Marketing: Performance, features, service, focus on customer
concerns
User-base concerns that raise costs

Engineering: Specifications
Product-base concerns

Manufacturing: Conformance to specifications

Cost reduction

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Market segmentation Quality
Differentiation may depend on one or more or a
combination, but the point is that meet customer
expectations, even if this is only what the customer
perceives as quality. This means that the firm must
define that segment of the industry. Customer
segmentation depend upon Demographics,
Geography, Volumes, Profit potential. American
society for quality control summarized the factor
influencing decisions to purchase: performance,
features, reliability, conformance, durability,
serviceability, aesthetics, perceived quality.

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Management By Objective
Key area for setting an objective
1. Marketing
2. Innovation
3. Human organization
4. Financial resources
5. Physical resources
6. Productivity
7. Social responsibility
8. Profit requirements

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Supporting Policies

Policies are guideline for action and

decision making that faciliate the attainment
of objectives

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 Target market Product line

Finance & Marketing

Control
Differentiation
Research & Mission Sales
Development Objective

Human Distribution
Resources

Suppliers Manufacturing

Policy Wheel 18