Total Quality in Organizations 6540-Chapter 2 Total Quality in Organizations
Growth of Modern Quality Management Manufacturing quality Improved product designs Service Performance excellence
Systems Thinking A system is the functions or activities within an organization that work together for the aim of the organization. Subsystems of an organization are linked together as internal customers and suppliers. A systems perspective acknowledges the importance of the interactions of subsystems, not the actions of them individually.
Manufacturing Systems (1 of 2) Marketing and sales Product design and engineering Purchasing and receiving Production planning and scheduling Manufacturing and assembly Tool engineering
Manufacturing Systems (2 of 2) Industrial engineering and process design Finished goods inspection and test Packaging, shipping, and warehousing Installation and service
Quality in Business Support Functions for Manufacturing General management Finance and accounting Human resource management Quality assurance Legal services
Quality in Services Service is defined as “any primary or complementary activity that does not directly produce a physical product – that is, the non-goods part of the transaction between buyer (customer) and seller (provider).”
Critical Differences between Service and Manufacturing (1 of 2) Customer needs and performance standards are more difficult to identify and measure Services requires a higher degree of customization Output is intangible
Critical Differences between Service and Manufacturing (2 of 2) Services are produced and consumed simultaneously Customers are often involved in actual process Services are more labor-intensive than manufacturing Services handle large numbers of transactions
Components of Service System Quality Employees Information technology
The Ritz-Carlton Hotel Co.
Key Shifts in Customer Satisfaction Management From Provider Orientation Tolerance Directing Employee as Expendable Resource Reactive Tradition and “Busy-ness” Turf Protection “We-They” Thinking Cynicism To Customer Orientation Higher Standards Empowering Employee as Customer Proactive Experimentation and Risk Results Teamwork Across Lines Organizational Perspective Optimism
Quality in Health Care Joint Commission on Accreditation of Healthcare Organizations (JCAHO) National Committee for Quality Assurance (NCQA) Institute for Healthcare Improvement (IHI) 1999 expansion of the Baldrige Award to nonprofit health care organizations
Quality Issues in Health Care Avoidable errors Underutilization of services Overuse of services Variation in services
Quality in Education Koalaty Kid program 1999 expansion of the Baldrige Award to nonprofit education organizations Success stories Mt. Edgecumbe High School Brazosport ISD Hunderton Central Regional HS Pinellas County Schools
Higher Education as a Production System Design and Redesign Consumer research Suppliers: families, high schools, colleges, business Customers: business, families, society, students Inputs: students faculty Processes Teaching, counseling, scientific research Outputs: able students new knowledge
Quality in the Public Sector Quality in the Federal Government State and Local Quality Efforts