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2. Managing For Productivity & Quality
Chapter 15
Managing For Productivity & Quality

3. Copyright 2005 Prentice- Hall, Inc.
Chapter Outline
Productivity-Quality Connection
Quality Improvement
Tools For Quality Management
Productivity & Quality As Competitive Tools
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4. Productivity-Quality Connection
Productivity- How Much A System Produces With Its Resources
Quality- Product’s Success In Offering Features Consumers Want
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5. Measuring Productivity
Labor Productivity
Gross Domestic Product
Total Number of Workers
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6. International Productivity
International Survival
Global Competitors
Example – Food Production
US Worker = $100
Japanese = $ 68
Belgium = $107
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7. International Productivity
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8. Domestic Productivity
Productivity  = Wealth 
National Productivity
Uneven Growth Manufacturing vs. Service
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9. Selected U.S. Industries Productivity
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10. U.S. Manufacturing Productivity Index
% Change In Productivity Over Previous Year
Source: U.S. Department of Labor- Bureau of Labor Statistics
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11. Productivity Computer/Electronic Manufacturing
1997 = 100%
Source: U.S. Department of Labor- Bureau of Labor Statistics
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12. Productivity Of Selected U.S. Industries
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13. Copyright 2005 Prentice- Hall, Inc.
Managing Quality
Total Quality Management
Planning
Performance
Reliability
Organizing
Directing – Ownership
Controlling
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14. Dimensions Of Medical Care Quality
Technical Performance
Access To Services
Effectiveness Of Care
Interpersonal Relations
Interpersonal Relations
Continuity Of Services
Safety
Physical Infrastructure & Comfort
Choice
Source: Healthcare And Workforce Improvement, Quality Assurance Project
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15. Copyright 2005 Prentice- Hall, Inc.
Tools For TQM
Competitive Product Analysis
Value-Added Analysis
Statistical Process Control
Process Variations
Control Charts
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16. Copyright 2005 Prentice- Hall, Inc.
Value-Added Analysis
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17. Process Variation Study
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18. Copyright 2005 Prentice- Hall, Inc.
Process Control Chart
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19. Copyright 2005 Prentice- Hall, Inc.
Quality/Cost Studies
Failures
Internal
External
Quality Improvement Teams
Benchmarking
Closer To Customer
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20. Copyright 2005 Prentice- Hall, Inc.
Quality Standards
Quality Management Requirements
ISO 9000
ISO 9000:2000
ISO – Environmental Performance
ISO 9000
STANDARDS
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21. Process Reengineering
Business Process
Reengineering Process
Identify
Evaluate
Diagnose
Create
Implement
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22. Copyright 2005 Prentice- Hall, Inc.
Reengineering Steps
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23. Copyright 2005 Prentice- Hall, Inc.
Supply Chain Value
Supply (Value) Chain
Strategy
Management
Reengineering
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24. Copyright 2005 Prentice- Hall, Inc.
Supply Chain
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25. Copyright 2005 Prentice- Hall, Inc.
Production & Quality
Innovation/Technology
Long-Run Perspective
Continuous Improvement
6σ (Six Sigma)
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26. Copyright 2005 Prentice- Hall, Inc.
Emphasizing Quality
Employee Empowerment
Employee Training
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27. Improving Service Sector
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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