Chapter 2 Managing Quality

Quality in the Foodservice System Approach to business not a program Defined by customer through satisfaction Aimed at performance excellence Increases customer satisfaction Reduces cycle times and costs Eliminates errors and rework Quality customer service is goal of profit and non-profit organizations ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Dr. Deming’s 14-Point System Developed 14-point system to help companies increase quality 1. Improvements of products & services 2. Adopt new philosophy of quality 3. Cease dependence on inspection 4. Do not choose supplier solely on price 5. Constantly improve production & service systems 6. Extensive on-the-job training ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Dr. Deming’s 14-Point System 7. Shift from production numbers to quality 8. Drive out fear 9. Break down barriers among departments 10. Eliminate slogans & targets for workplace 11. Eliminate numeric quotas for workforce 12. Do not rob employees of pride or workmanship & eliminate annual ratings 13. Program of education & self-improvement 14. Work to accomplish preceding points ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Management Approach Evaluating operations with goal of improving performance Quality assurance (QA) Total quality management (TQM) Continuous quality improvement (CQI) Six Sigma Reengineering ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Quality Assurance Output oriented Defining measurable quality standards Controls in place to ensure standards are met Reactive process Predicated on follow-up and inspection ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Process Improvement Shift from individual tasks by individual employees to entire processes of several tasks by multiple employees Total quality management and reengineering commonly applied to these efforts ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Total Quality Management ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Total Quality Management Goal of improving performance of organization in response to customer needs and expectations Originated in manufacturing industries Now applied in colleges, universities, governmental agencies, nonprofit organizations, restaurants, clubs, & schools ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Total Quality Management Helps organization focus on customer by identifying and satisfying their needs and expectations Customer – anyone affected by a product or service External Customer – affected by product but do not belong to organization that produces it Internal Customer – affected by product and do belong to organization that produces it (employee) ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Total Quality Management Encourages employee participation Identifying problem & finding solution Empowerment – managers allow employees to act independently within their job descriptions Employees are permitted to make decisions in their area of work ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Total Quality Management Involves teams of employees, leader, & facilitator to accomplish change Team projects aimed at improving product or service quality while reducing cost Facilitators teach communication, contribute information, challenge decisions, & share experiences ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Total Quality Management Number of steps varies, usually includes: Identifying a problem Determining causes Developing measurable improvement Selecting & implementing best solution Collecting data to statistically measure results Refining the solution Repeating the cycle ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Total Quality Management Tools assist with identifying problems & guiding decision on changes needed Benchmarking Plan-do-check-act cycle Cause and effect diagrams Control charts Pareto analysis ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Benchmarking Compare one’s performance with “best in class” Assist managers to focus improvement efforts Companies, such as Press Ganey Associates, Inc, compile data for this comparison ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Plan-Do-Check-Act Cycle Model for coordinating process improvement efforts ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Cause and Effect Diagrams Illustrate factors that may influence or cause a given outcome Termed Ishikawa or fishbone diagrams ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Control Charts Graphical record of process performance over a period of time Values of upper & lower control limits are drawn to help identify potential problems ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Pareto Analysis 80% of given outcome typically results from 20% of an input (a.k.a 80-20 rule) “Vital few and trivial many” Vital few causes, if identified and corrected, can have greatest impact on improving quality ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Six Sigma Data-driven approach & technique for eliminating defects in any process, no more than 3.4 defects per million opportunities DMAICS approach to quality improvement Define project goals Measure current performance of process Analyze and determine causes of defects Improve process by eliminating defects Control future process performance Standardize process for the future ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Reengineering Rethinking & radical redesign of business processes to achieve dramatic improvements in performance Improving processes core to business rather than individual tasks Process – end-to-end set of activities together create value for customer Refer to page 38 for the example on the reengineering of Taco Bell ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

ISO 9000 Standards International standards on quality management Based on 8 principles Customer focus Leadership Involvement of people Process approach Systems approach to management Continual Improvement Mutually beneficial supplier relations ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

External Recognition of Quality Individuals can receive certification Certified Quality Manager (CQM) Certified Quality Engineer (CQE) Certified Reliability Engineer (CRE) Organizations can be recognized Ohio Governor’s Award for Excellence Michigan Quality Leadership Award Missouri Quality Award ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Malcolm Baldrige National Quality Award Recognize companies for achievements in quality & performance Promotes sharing of information on successful performance strategies Managed by U.S. Commerce Department’s National Institute of Standards and Technology Open to business in U.S. or its territories ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Malcolm Baldrige National Quality Award 3 awards may be given each year in 5 categories: Manufacturing Service Small business Education Health care ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Malcolm Baldrige National Quality Award Criteria consists of 7 categories Leadership Strategic planning Customer and market focus Information and analysis Human resource focus Process management Business results ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Joint Commission on Accreditation of Healthcare Organization Published original quality assurance standards for hospitals Independent, non-profit organization to set standards & accredit healthcare organizations Stimulating healthcare field to attain ever-high standards and provide care to American people ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Joint Commission on Accreditation of Healthcare Organization JCAHO standards: Address performance expectation in key functional areas (patient assessment, patient care, environment, etc.) Focus on what organization does, not what it has Developed in consultation with healthcare experts, purchasers, & consumers Standards are scored using 5-point scale ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458