© 2007 Pearson Education Managing Quality Integrating the Supply Chain S. Thomas Foster Chapter 16 Implementing and Validating the Quality System

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Chapter 16  Building Blocks for the system of quality improvement  Internal validation: documenting and assessing the quality system  Quality audits  Externally validating the quality system

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Building Blocks for the system of quality improvement  People  Organizational learning and knowledge  Culture  Closeness to Customers  Information and finance  The three spheres of quality  The integrative approach  Alignment between the quality system and strategy

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Building Blocks for the system of quality improvement  People  People represent the core of the firms capabilities  For a quality system to function effectively employees must understand that they are integral to the system

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Building Blocks for the system of quality improvement  Organizational learning and knowledge  Knowledge is the capital that fuels outstanding quality results  Outstanding customer service results from providing employees with outstanding training and knowledge

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Building Blocks for the system of quality improvement  Closeness to Customers  Companies that value knowledge will gather data about customers and will study and understand customer needs  Customer retention is closely relat5ed to profitability

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Building Blocks for the system of quality improvement  Information and Finance  Well-designed information systems … become the institutional memory for customer needs  Financial resources are needed to provide the infrastructure and services that customers want

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Building Blocks for the system of quality improvement  The three spheres of quality  Quality planning and management  Quality assurance  Quality control

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Building Blocks for the system of quality improvement  The integrative approach  All building blocks must be in place in all functional areas and throughout all levels of the organization

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Building Blocks for the system of quality improvement  Alignment between quality systems and strategy  The design of the quality system must have focus

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Internal validation: Documenting and Assessing the Quality System Four Stages  Surveying  Categorizing  Investigating  Evaluating

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Internal validation: Documenting and Assessing the Quality System Four Stages  Surveying  Categorizing  Investigating  Evaluating Generate list of strengths and weaknesses

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Internal validation: Documenting and Assessing the Quality System Four Stages  Surveying  Categorizing  Investigating  Evaluating Reconceptualize list in terms of resources and capabilities

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Internal validation: Documenting and Assessing the Quality System Four Stages  Surveying  Categorizing  Investigating  Evaluating Determine where potential competitive advantage lies

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Internal validation: Documenting and Assessing the Quality System Four Stages  Surveying  Categorizing  Investigating  Evaluating Choose the appropriate generic strategy for the firm

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Quality Audits  Preparation. develop lists of questions, gather materials, form lists of candidates  Audit team selection. Select the right team members for the team  Develop checklists containing the questions to be studied in the audit

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Quality Audits Types of audits  Operational audits  assist all members of management in the effective discharge of their of their responsibilities

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Quality Audits Types of audits  Performance audits  Supplier audits  Certification audits  Award audits  Consultant audits  Presidential audits

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Quality Audits Types of audits  Qualitative and quantitative elements in audits  Qualitative audits compare current practice against structural measures  Quantitative audits actions such as reviewing quality control checksheets to model trends

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Externally Validating the Quality System  Establish a purpose  Make a plan  Collect data  Document findings  Evaluate strengths and areas for improvement  Develop improvement strategy

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Summary  The audit process and Baldridge self- assessment … provide a means for top management to improve its leadership in the area of quality management

© 2007 Pearson Education Strategic Quality Planning Implementing and Validating the Quality System Summary  Companies … should recognize that these approaches are not short term fixes. They require long term commitment and support