1. Quality Management Total Quality Management 13th March 2014

2. What is a TQM system? Quality is determined by the senior managers of an organization Customer focus: concept of internal customer, external customer thorough collection and analysis of customer requirements These requirements must be understood and met Process improvement work is the result of a series of interrelated steps and activities that result in an output Continuous attention to each of these steps to reduce the variability of the output and improve the reliability of the process reliable processes redesign processes Total involvement Active leadership of senior management Utilizing the talents of all employees New and flexible work structures to solve problems, improve processes and satisfy customers

3. Supporting elements I. Leadership: role of senior managers as advocates, teachers, and leaders by applying the tools and language, by requiring the use of data and by recognizing those who successfully apply the concepts of TQM Education and training: quality is based on the skills of every employee and his or her understanding of what is required Core trainings and additional trainings Supportive structure: senior managers may require support to bring about the change necessary to implement a quality strategy Consultants, small support staff help the senior management team understand the concepts of quality, assist by networking with other quality managers serve as a resource on the topic of quality for the senior management team.

4. Supporting elements II. Communications: communications in a quality environment may need to be addressed differently in order to communicate to all employees a sincere commitment to change Reward and recognition: teams and individuals who successfully apply the quality process must be recognized and possibly rewarded Recognizing successful quality practitioners provides role models for the rest of the organization Measurement: the use of data becomes paramount in installing a quality management process. The collection of customer data provides an objective, realistic assessment of performance and is useful in motivating everyone to address real problems

5. Focusing on processes Manufacturing processes customers are isolated from production outputs are tangible operations are highly repetitive Nonmanufacturing processes customers are involved directly in the delivery of services the value added is often intangible some processes are repeated infrequently, and their outputs can be unique every time.

6. Product vs Process Traditional method Product management Work process Suppliers Customers INPUT OUTPUT INSPECTINSPECT INSPECTINSPECT WASTE

7. Work process

8. Manufacturing vs Nonmanufacturing processes Comparing typical process attributes ManufacturingNonmanufacturing Output propertiestangibleintangible or tangible Production and deliveryseparateintegrated Customer interface focused: sales and marketing spread across line employees Feedbackthrough processthrough customer Organizational focusprocess efficiencycustomer relations Process ownershipclearly definedmultiple Process boundariesdefinedunclear Process definitiondocumentedunclear Control pointsdefinednone Quality measuresestablished and objectivesubjective Corrective actionpreventivereactive

9. Manufacturing vs Nonmanufacturing processes The attributes of applications that are best suited to classic quality improvement techniques: Tangible outputs that permit direct physical measurement, determination of objective customer requirements, and translation into definitive engineering specifications. Processes that are clearly documented, including raw material and equipment specifications, product movement, operating procedures, and performance standards. Functional delineation of production, sale, and delivery that clarifies organizational boundaries, process ownership, and logical control points. Quality measures can be established and controlled within each step of the process.

10. Improving nonmanufacturing processes Three key characteristics Coproduction: customer participation in nonmanufacturing processes brings the customer directly into the service process the process itself represents an experience of vital interest, importance, and value to the customer employees in face-to-face contact with customers Tangibility and repetition Defining specifications and measuring conformance of tangible outputs relying on physical characteristics Repetitive processes generate large quantities of data over relatively short periods of time facilitates the measurement, comparison, analysis, and systematic improvement of operations Overcoming obstacles Intangible outputs: identification of appropriate measures Unique outputs and coproducing customers: clarification of the underlying work processes that are repeated

11. Measurement of performance at three levels Process measures: define activities, variables, and operations of the work process itself measuring the products and services that suppliers input to the work process represent parameters that directly control the integration of people, materials, methods, machines, and the environment within the work process help to predict the characteristics of the outputs before they delivered to customers. Output measures: define specific features, values, characteristics, and attributes of each product Customer requirements: the voice of the customer Output characteristics delivered by the process: the capability or voice of the process Measures at this level reveal what is delivered to customers Outcome measures: can only be determined after the product has been delivered or the service provided Key measure: customer satisfaction Reflect the impact of outputs on the customer’s processes

12. Customer focus Identifying the customers know who your customers are, what they expect, and how well the organization and its competitors are performing from the customers’ point of view Who is the customer? know to whom we must talk to assess the level of customer service that we are providing, and we need to identify what we must do in the future to improve identify specific people with whom we work within each client organization concept of internal customers What do customers want? determine from the customer what he or she expects, requires, and needs from us, the supplier. the customers are often unsure of their precise needs and need assitance Customer satisfaction Customer needs and expectations are constantly escalating as customers have their requirements met and learn of new possibilities from competitors

13. Understanding customer expectations 1.What product/service characteristics do customers want? 2.What performance level is needed to satisfy their expectations? 3.What is the relative importance of each characteristic? 4.How satisfied are customers with performance at the current level?

14. Characteristics of a quality service Faster, better, cheaper Time represents how quickly, easily, or conveniently a product or service can be obtained Cost equates to how expensive the item is Quality is the most difficult to characterize Eight dimensions of quality 1.Performance 2.Features 3.Reliability 4.Conformance 5.Durability 6.Serviceability 7.Aesthetics 8.Perceived service quality

15. Ten determinants of service quality 1.Reliability 2.Responsiveness 3.Competence 4.Access 5.Courtesy 6.Communication 7.Credibility 8.Security 9.Understanding the customer 10.Tangibles Characteristics of a quality service

16. Compendium of quality characteristics DeliverablesInteractions Faster Availability Convenience Responsiveness Accessibility Better Performance Features Reliability Conformance Serviceability Aesthetics Perceived quality Reliability Security Competence Credibility Empathy Communications Style CheaperPrice

17. What performance level is needed to satisfy expectations? Product qualityService quality Attributes Objective Tangible Measures in absolute terms such as physical or chemical properties Subjective Intangible Observed in comparative terms relative to expectations or prior experience ExamplesSize, weight, volume, delivery time, material, count, colour Attitude, courtesy, cooperation, attentiveness, reputation, dependability, friendliness

18. Implicit, explicit and latent requirements

19. Advantages Focus discussions with customers around characteristics that represent the conspicuous specifications and requirements (level 2). Customers take the basic expectations (level 1) for granted and assume that knowledgeable suppliers know this. Customers cannot be expected to appreciate level 3 features until they are experienced. Meeting level 1 expectations is a defensive requirement that at best will help avoid creating dissatisfied customers. High levels of customer satisfaction can be expected by consistently delivering the implicit base expectations (level 1) and every explicit specification (level 2), as well as including the value-added features (level 3) that delight customers. Customers’ expectations will escalate, and performance levels will migrate down through the hierarchy over time.

20. The hidden level It is only discovered after unhappy customers bring problems back to their suppliers. Three outcomes are possible: If the supplier’s corrective action does not meet the customer’s expectations, the original feeling of dissatisfaction will be exacerbated. If the supplier’s corrective action meets the customer’s expectations, the original feeling of dissatisfaction will likely be neutralized. If the supplier’s prompt, effective, complete, and courteous action exceeds the customer’s expectations, the original feeling of dissatisfaction can potentially be converted into delight.

21. Understanding customers

22. Benchmarking It is the process of continually researching for new ideas and methods, practices and processes, and either adopting the practices or adapting the good features and implementing them to obtain the best of the best. 4 types of benchmarking: 1.Internal benchmarking: to compare operations among functions within an organization 2.Competitive benchmarking: direct product or service competitors 3.Functional benchmarking: investigates leaders in dissimilar industries 4.Generic benchmarking: extends functional benchmarking by removing the constraints imposed by limiting the investigation to practices with similar characteristics