Chapter 4 Strategic Quality Planning

Strategic Quality Planning Chapter 4 Strategy Content The importance of time in quality improvement Leadership for quality Quality and ethics Quality as a strategy Quality strategy process Deploying quality Does quality lead to better business results? Supply chain strategy

Strategic Quality Planning Strategy Content Quality improvement involves identifying potential areas for improvement, prioritizing potential areas for improvement, and planning the implementation of projects and improvements

Strategic Quality Planning The importance of time in quality improvement There are two aspects of time: The time it takes to achieve business goals as a result of quality The speed at which companies improve

Strategic Quality Planning The importance of time in quality improvement When goals are set, one of three things will occur: People will achieve the goals and incur positive results People will distort the data People will distort the system

Strategic Quality Planning Leadership for quality Leadership is the process by which a leader influences a group to move towards the attainment of superordinate goals.

Strategic Quality Planning Leadership for quality For followers to have power, leadership must share power. As a result leadership is about the sharing of power.

Strategic Quality Planning Leadership for quality This power takes many forms: The power of expertise Reward power Coercive power Referent power Legitimate power

Strategic Quality Planning Leadership for Quality Leadership Dimensions: Trait Dimension Leader Skills Knowledge Communication Planning Vision

Strategic Quality Planning Quality and Ethics Quality appears to be good business Quality is also good ethics “We build good ships. At a profit if we can, at a loss if we must. But, we build good ships” mission statement of Massachusetts shipbuilder

Strategic Quality Planning Quality as a Strategy Costs of Quality PAF Paradigm Prevention Costs Appraisal Costs Failure Costs Internal External Lundvall–Juran Model

Strategic Quality Planning Quality as a Strategy Differentiation through quality Focus through quality Quality as a core competency

Strategic Quality Planning Quality Strategy Process The Forced Choice Model

Strategic Quality Planning Deploying Quality Hoshin Kanri or Policy Deployment The Company develops a 3 - 5 year plan The Senior Executives develop the current years objectives.

Strategic Quality Planning Deploying Quality Hoshin Kanri or Policy Deployment Catchball occurs The process is interactive Teams report up Management delivers feedback Hoshin Planning

Strategic Quality Planning Deploying Quality A Mature Strategic Planning Process

Strategic Quality Planning Does Quality Lead to Better Business Results? Quality and Price Cost Productivity Profitability Sustainability

Strategic Quality Planning Does Quality Lead to Better Business Results? Quality and Price Cost Productivity Profitability Sustainability

Strategic Quality Planning Does Quality Lead to Better Business Results? Quality and Price Cost Productivity Profitability Sustainability

Strategic Quality Planning Does Quality Lead to Better Business Results? Quality and Price Cost Productivity Profitability Sustainability

Strategic Quality Planning Does Quality Lead to Better Business Results? Quality and Price Cost Productivity Profitability Sustainability

Strategic Quality Planning Supply Chain Strategy Supply Chain Strategic Planning

Strategic Quality Planning Supply Chain Strategy Logistics? When shall we ship? What mode of transportation shall we use? How do we optimize our shipping practices?

Strategic Quality Planning Supply Chain Strategy Suppliers? Who are our preferred suppliers? What is our process for supplier selection? How do we develop suppliers? How do we link with our suppliers? Do we source globally?

Strategic Quality Planning Supply Chain Strategy Inventory management? Where do we optimally store inventory How much? How long? Do we have perishable stock? Where do we carry safety stock? ARE we maintaining good levels of service?

Strategic Quality Planning Supply Chain Strategy Information Flows? What kinds of enterprise resource planning systems are needed? How do we link upstream and downstream? What are data relations? What data do we need to manage our supply chain effectively?

Strategic Quality Planning Supply Chain Strategy Products? How much product do we stock? What product variety is necessary? How do we win orders? Where are our products in their life cycles?

Strategic Quality Planning Supply Chain Strategy Service? How do we define service along the supply chain? What do our customers want? Can we segment the supply chain? Who are our customers?

Strategic Quality Planning Summary Strategy Content The importance of time in quality improvement Leadership for quality Quality and ethics Quality as a strategy Quality strategy process Deploying quality Does quality lead to better business results? Supply chain strategy

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