Geoff Higgins MGMT Quality Management MGMT Quality Management

Geoff Higgins MGMT Quality Management 2 The Course Organisation chosen for Assignment 1? Organisation chosen for Assignment 1? Been into Blackboard? Been into Blackboard?

Geoff Higgins MGMT Quality Management 3 Module 1 – Revisit the Pioneers The Gurus – a quiz

Geoff Higgins MGMT Quality Management 4 Module 1 – Terminology Quality Management The term ‘Quality Management’ used in this course applies to how organisations ensure they can offer quality products and services. The term ‘Quality Management’ used in this course applies to how organisations ensure they can offer quality products and services. Total Quality Management (TQM) The term ‘total quality management’ is used as the name of a movement, an approach and as a business philosophy. The term ‘total quality management’ is used as the name of a movement, an approach and as a business philosophy. Total quality management is defined in the textbook (Goetsch & Davis 2006, p. 6). Total quality management is defined in the textbook (Goetsch & Davis 2006, p. 6).

Geoff Higgins MGMT Quality Management 5 Module 1 – Terminology (continued) Robert Flood (1993) defines TQM as: ‘Total’ means… “everyone should be involved in quality, at all levels, and across all functions, ensuring quality is achieved according to requirements in everything they do.” “Quality means meeting customer (agreed) requirements', formal and informal, at lowest cost, first time every time.” ‘Management’ refers to “the need for everyone to be responsible for managing their own jobs, which incorporates managers with workers and anyone else associated with the organisation.” (Source: Flood, R Beyond TQM, Wiley, London, p. unknown.)

Geoff Higgins MGMT Quality Management 6 Module 1 – Shewart’s Definition From Hoyer and Hoyer (2001), Shewhart's essential points (from the 1920’s) are: From Hoyer and Hoyer (2001), Shewhart's essential points (from the 1920’s) are: There are two sides to quality: subjective (what the customer wants) and objective (properties of the product). There are two sides to quality: subjective (what the customer wants) and objective (properties of the product). An important dimension of quality is value received for the price paid. An important dimension of quality is value received for the price paid. Quality standards must be expressed in terms of physical, quantitatively measurable product characteristics. Quality standards must be expressed in terms of physical, quantitatively measurable product characteristics. Statistics must be used to take information about the individual product or service wants of a great many potential consumers and translate it into measurable characteristics of a specific product or service that will satisfy societal (marketplace) wants. Statistics must be used to take information about the individual product or service wants of a great many potential consumers and translate it into measurable characteristics of a specific product or service that will satisfy societal (marketplace) wants.

Geoff Higgins MGMT Quality Management 7 Module 1 – Six Sigma A statistical measurement/project focussed approach to managing quality. A statistical measurement/project focussed approach to managing quality. Described by Hensler and Klefsjo (2004) as “a methodology within the TQM framework and … not a substitute”. Described by Hensler and Klefsjo (2004) as “a methodology within the TQM framework and … not a substitute”. Anon (2003) recognises the importance of project management skills and project prioritisation and selection to maximise benefits from Six Sigma. Anon (2003) recognises the importance of project management skills and project prioritisation and selection to maximise benefits from Six Sigma.

Geoff Higgins MGMT Quality Management Week 2 Quality, Competitiveness & Globalisation

Geoff Higgins MGMT Quality Management 9 Module Objectives 1.Describe how the adoption of total quality management can assist organisations in being competitive. 2. Explain why the adoption of a total quality management approach cannot guarantee competitiveness. 3.Describe the impact of globalisation on organisations in terms of threats and opportunities to their quality efforts. 4.Describe the benefits of a total quality approach for organisations impacted by globalisation.

Geoff Higgins MGMT Quality Management 10 Readings Study Guide Module 2 Study Guide Module 2 TextbookGoetsch & Davis 2006 Chapter 2. Quality and Global Competitiveness TextbookGoetsch & Davis 2006 Chapter 2. Quality and Global Competitiveness Electronic journal articles Electronic journal articles Anon. 2001, ‘Competitiveness drives quality in UK companies’. Anon. 2001, ‘Competitiveness drives quality in UK companies’. Mehra, S and Agrawal. SP 2003, ‘Total quality as a new global competitive strategy’. Mehra, S and Agrawal. SP 2003, ‘Total quality as a new global competitive strategy’. O'Mahoney, M 2003 ‘Quality, productivity and competitiveness: An Anglo-German comparison’. O'Mahoney, M 2003 ‘Quality, productivity and competitiveness: An Anglo-German comparison’. (All available on Proquest)

Geoff Higgins MGMT Quality Management 11 Quality & Competitiveness Small Group Without opening your books… Organisations devoted to quality do not necessarily ‘win’ when it comes to competing in the marketplace. Organisations devoted to quality do not necessarily ‘win’ when it comes to competing in the marketplace. Q.Why do you think this could be?

Geoff Higgins MGMT Quality Management 12 Quality & Competitiveness The Study Guide recognises how difficult it can be to link quality with competitiveness. The Study Guide recognises how difficult it can be to link quality with competitiveness. The textbook and the article by Anon (2001) lack concrete examples. The textbook and the article by Anon (2001) lack concrete examples. Both the internal and external environment have a complex influence on competitiveness. Both the internal and external environment have a complex influence on competitiveness. A competitor may succeed for any number of reasons that are out of reach of the organisation’s quality approach. A competitor may succeed for any number of reasons that are out of reach of the organisation’s quality approach.

Geoff Higgins MGMT Quality Management 13 Quality & Globalisation Small Group Without opening your books… A lot of fuss is made about ‘globalisation’ and its affects on organisations. A lot of fuss is made about ‘globalisation’ and its affects on organisations. Q.Why is globalisation relevant in a course about Quality Management?

Geoff Higgins MGMT Quality Management 14 Impact of Globalisation When other countries produce goods at a lower cost, quality can be a differentiator. When other countries produce goods at a lower cost, quality can be a differentiator. Improvements in quality often come through technological improvements. These may be sourced globally, not just locally. Improvements in quality often come through technological improvements. These may be sourced globally, not just locally. Being a node in an international supply chain can provide access to quality supplies. Being a node in an international supply chain can provide access to quality supplies. Human resources are important to competitiveness, and the impact of globalisation makes them critical. Human resources are important to competitiveness, and the impact of globalisation makes them critical.

Geoff Higgins MGMT Quality Management 15 Mehra & Agrawal (2003) Global operations demand a revised approach to TQM. Global operations demand a revised approach to TQM. Past practices – quality control/result-oriented philosophy. Past practices – quality control/result-oriented philosophy. Current practices – quality management/process-oriented. Current practices – quality management/process-oriented. For global organisations… “strategy and procedures may be significantly different for each of its plants located in different countries ”. For global organisations… “strategy and procedures may be significantly different for each of its plants located in different countries ”.

Geoff Higgins MGMT Quality Management 16 Mehra & Agrawal (2003) continued The focus must be on ‘desired quality’, achieved by making appropriate decisions about: Mandatory and voluntary compliance with standards Mandatory and voluntary compliance with standards Managerial initiatives Managerial initiatives Supply chain management (especially certification of vendors & local requirements) Supply chain management (especially certification of vendors & local requirements) Human resource management (such as communication, team constitution & empowerment) Human resource management (such as communication, team constitution & empowerment) Cost management Cost management

Geoff Higgins MGMT Quality Management 17 O’Mahoney (2003) Compared UK and German ceramic tableware products and production data. Compared UK and German ceramic tableware products and production data. In comparison: In comparison: British productivity was lower. British productivity was lower. The average German worker produced 70% of the output (by volume) of a UK worker, while average unit values for items produced in Germany were around 90% higher than those produced in the UK. The average German worker produced 70% of the output (by volume) of a UK worker, while average unit values for items produced in Germany were around 90% higher than those produced in the UK. “The authors found little difference in the physical plant and equipment used in the two countries.” “The authors found little difference in the physical plant and equipment used in the two countries.”

Geoff Higgins MGMT Quality Management 18 O’Mahoney (2003) continued Human resources were a distinguishing feature, with the German factories distinguished by: Human resources were a distinguishing feature, with the German factories distinguished by: Considerable shop-floor experience and technical understanding of the design team. Considerable shop-floor experience and technical understanding of the design team. Greater reliance on skilled tool-makers (mouldcutters), resulting in smaller batches of high- quality, heavily differentiated products. Greater reliance on skilled tool-makers (mouldcutters), resulting in smaller batches of high- quality, heavily differentiated products. Proportionately more skilled maintenance technicians. Proportionately more skilled maintenance technicians. A significantly greater proportion of supervisory personnel held formal vocational qualifications. A significantly greater proportion of supervisory personnel held formal vocational qualifications. All of these resulted in “greater functional flexibility among production operatives in Germany”. All of these resulted in “greater functional flexibility among production operatives in Germany”.

Geoff Higgins MGMT Quality Management 19 O’Mahoney (2003) continued Concludes that: Goods produced in advanced countries will eventually be imitated by low-cost producers so that retaining market shares will require greater attention to moving up the product quality ladder in countries which cannot compete on the basis of raw cost alone.

Geoff Higgins MGMT Quality Management 20 Porter’s Five Forces Model Combining competitiveness and globalisation using five elements: 1. Rivalry Between Competitors 2. Barriers to New Entrants 3. The Bargaining Power of Buyers 4. The Bargaining Power of Suppliers 5. The Threat of Substitute Products

Geoff Higgins MGMT Quality Management 21 Porter’s Five Forces Model Small Group Explain why each of Porter’s five forces is relevant in understanding the significance of competitiveness and globalisation in quality management. Explain why each of Porter’s five forces is relevant in understanding the significance of competitiveness and globalisation in quality management.

Geoff Higgins MGMT Quality Management 22 Conclusion Recap of Module 1 Recap of Module 1 Module Introduction Module Introduction Quality and Competitiveness Quality and Competitiveness Quality and Globalisation Quality and Globalisation Quality and Globalisation – articles Quality and Globalisation – articles Porter’s Five Forces Model Porter’s Five Forces Model

Geoff Higgins MGMT Quality Management 23 Next Week Week 3 “Quality, values and ethics”. Week 3 “Quality, values and ethics”. Study Guide Study Guide Goetsch & Davis (2006) Chapter 4. Quality Management, Ethics, and Corporate Social Responsibility Goetsch & Davis (2006) Chapter 4. Quality Management, Ethics, and Corporate Social Responsibility Electronic Journal Articles (on Proquest) Electronic Journal Articles (on Proquest)

Geoff Higgins MGMT Quality Management 24 Questions?