Quality Management MNGT 420 Different perspectives on Quality Chapter 1

Definitions and perspectives Quality Definitions and perspectives What is Quality? Quality definition Seven concepts of Quality Key dimensions of Quality The Three Spheres of Quality Different Functional Perspectives of Quality (

Fitness for Use – Joseph M Juran Quality - Definitions Fitness for Use – Joseph M Juran Conformance to requirements – Philip B. Crosby Costs go down and productivity goes up as improvement of quality is accomplished by better management of design, engineering, testing and by improvement of processes – W. Edwards Deming Degree to which a set of inherent characteristics fulfills requirements – ISO 9000 Important

Quality - Definition The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs American Society for Quality An operations manager’s objective is to build a total quality management system that identifies and satisfies customer needs

Seven Concepts of TQM Important Continuous improvement Six Sigma Employee empowerment Benchmarking Just-in-time (JIT) Taguchi concepts Knowledge of TQM tools Important

Key Dimensions of Quality Quality Dimensions Definition Performance The ability to perform the task expected from it Features Attributes that supplement the product’s basic performance Reliability Product’s propensity to perform consistently over the product’s useful life. Conformance Adherence to quantifiable specifications Durability Ability to tolerate stress or trauma without failing Serviceability The ease and low cost of repair for a product Aesthetics Degree to which product attributes are matched to consumer preferences Perceived Quality Quality as the customer perceives it…image, recognition, word of mouth. Value The value for the money of customer Important

Three Spheres of Quality The Three Spheres of Quality

Different Functional Perspectives of Quality Functional Perspectives on quality include: Supply Chain Management Engineering Operations Strategic Management Marketing Financial/Accounting Human resources

Supply Chain Management Perspective Supply Chain Management perspective on quality includes: Upstream supply chain activities Core supply chain processes Downstream supply chain activities

Engineering Perspective Design Life cycle Engineering perspective: Achieving quality through Applying mathematical problem-solving skills and modeling techniques in relation to: Product Design Process Design Important

Operation Management Perspective Operations Management perspective on quality includes the use of: Statistical Process Control (SPC) such as Shewhart’s Control Process Xbar and R Charts P and C charts Sampling

Operation Management Perspective Uses the systems view that underlies modern quality management thinking Conversion System Model of Operations Management

Strategic Management Perspective Firms establish a planned course of action to achieve quality objectives Course of action must be cohesive and coherent in terms of goals, policies, plans, and sequencing to achieve quality improvement Aids an organization to achieve a sustainable competitive advantage Generic strategic Planning Process

Statistical Process Control (SPC) Uses statistics and control charts to tell when to take corrective action Drives process improvement Four key steps Measure the process When a change is indicated, find the assignable cause Eliminate or incorporate the cause Restart the revised process Important

Marketing Management Perspective Focuses on perceived quality of goods and services The primary marketing tools for influencing customers perception of quality are price and advertising The customer is the focus of marketing- related quality improvement Marketing System

Financial Perspective Relies more on quantified, measurable, results-oriented thinking Identify and measure costs of quality by conducting trade- off and break- even analysis The pursuit of quality does not safeguard a company against bad management Deming Value Chain

Financial Perspective Law of diminishing returns

Human Resource Perspective Employee empowerment Organizational design Job analysis Quality management flourishes where the workers’ and company’s needs are closely aligned

Determinants of Service Quality Reliability Consistency of performance and dependability Responsiveness Willingness or readiness of employees Competence Required skills and knowledge Access Approachability and ease of contact Courtesy Politeness, respect, consideration, friendliness Communication Keeping customers informed Credibility Trustworthiness, believability, honesty Security Freedom from danger, risk, or doubt Understanding/ knowing the customer Understand the customer’s needs Tangibles Physical evidence of the service Important

References: BMW Quality Management https://www.youtube.com/watch?v=guJ4I3 O8DeU The cost of poor quality https://www.youtube.com/watch?v=jYj_R4 oCTPI