1. Introduction to Quality
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

2. History of Quality Assurance (1 of 3)
Skilled craftsmanship during Middle Ages
Industrial Revolution: rise of inspection and separate quality departments
Early 20th Century: statistical methods at Bell System
Quality control during World War II
Post-war Japan: evolution of quality management
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

3. History of Quality Assurance (2 of 3)
Quality awareness in U.S. manufacturing industry during 1980s: from “Little Q” to “Big Q” - Total Quality Management
Malcolm Baldrige National Quality Award (1987)
Disappointments and criticism
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

4. Formal Definitions of Quality
Transcendent definition: excellence
Product-based definition: quantities of product attributes
User-based definition: fitness for intended use
Value-based definition: quality vs. price
Manufacturing-based definition: conformance to specifications
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

5. Principles of Total Quality
Customer and stakeholder focus
Participation and teamwork
Process focus supported by continuous improvement and learning
…all supported by an integrated organizational
infrastructure, a set of management practices,
and a set of tools and techniques
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

6. Customer and Stakeholder Focus
Customer is principal judge of quality
Organizations must first understand customers’ needs and expectations in order to meet and exceed them
Organizations must build relationships with customers
Customers include employees and society at large
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

7. Key Idea
To meet or exceed customer expectations, organizations must fully understand all product and service attributes that contribute to customer value and lead to satisfaction and loyalty.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

8. Key Idea
In any organization, the person who best understands his or her job and how to improve both the product and the process is the one performing it.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

9. Key Idea
A process is a sequence of activities that is intended to achieve some result
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

10. Deming’s View of a Production System
Suppliers of
materials and
equipment
Design and
Redesign
Consumer
research
Receipt and test
of materials
Consumers A B C D
Production, assembly
inspection
Distribution
Tests of processes, machines, methods
INPUTS PROCESSES OUTPUTS
Feedback
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

11. TQ Infrastructure Customer relationship management
Leadership and strategic planning
Human resources management
Process management
Information and knowledge management
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

12. Competitive Advantage
Is driven by customer wants and needs
Makes significant contribution to business success
Matches organization’s unique resources with opportunities
Is durable and lasting
Provides basis for further improvement
Provides direction and motivation
Quality supports each of these characteristics
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

13. Quality and Profitability
Improved quality of design
Improved quality of conformance
Higher perceived value
Higher prices
Lower manufacturing and service costs
Increased market share
Increased revenues
Higher profitability
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

14. Three Levels of Quality
Organizational level: meeting external customer requirements
Process level: linking external and internal customer requirements
Performer/job level: meeting internal customer requirements
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing

15. Quality and Personal Values
Personal initiative has a positive impact on business success
Quality-focused individuals often exceed customer expectations
Quality begins with personal attitudes
Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
Unless quality is internalized at the personal level, it will never become rooted in the culture of an organization. Thus, quality must begin at a personal level (and that means you!).
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing