1. Chapter 4
Strategic Quality Planning

2. Strategic Quality Planning Chapter 4
Strategy Content
The importance of time in quality improvement
Leadership for quality
Quality and ethics
Quality as a strategy
Quality strategy process
Deploying quality
Does quality lead to better business results?
Supply chain strategy

3. Strategic Quality Planning Strategy Content
Quality improvement involves identifying potential areas for improvement, prioritizing potential areas for improvement, and planning the implementation of projects and improvements

4. Strategic Quality Planning The importance of time in quality improvement
There are two aspects of time:
The time it takes to achieve business goals as a result of quality
The speed at which companies improve

5. Strategic Quality Planning The importance of time in quality improvement
When goals are set, one of three things will occur:
People will achieve the goals and incur positive results
People will distort the data
People will distort the system

6. Strategic Quality Planning Leadership for quality
Leadership is the process by which a leader influences a group to move towards the attainment of superordinate goals.

7. Strategic Quality Planning Leadership for quality
For followers to have power, leadership must share power. As a result leadership is about the sharing of power.

8. Strategic Quality Planning Leadership for quality
This power takes many forms:
The power of expertise
Reward power
Coercive power
Referent power
Legitimate power

9. Strategic Quality Planning Leadership for Quality
Leadership Dimensions:
Trait Dimension
Leader Skills
Knowledge
Communication
Planning
Vision

10. Strategic Quality Planning Quality and Ethics
Quality appears to be good business
Quality is also good ethics
“We build good ships. At a profit if we can, at a loss if we must. But, we build good ships”
mission statement of Massachusetts shipbuilder

11. Strategic Quality Planning Quality as a Strategy
Costs of Quality
PAF Paradigm
Prevention Costs
Appraisal Costs
Failure Costs
Internal
External
Lundvall–Juran Model

12. Strategic Quality Planning Quality as a Strategy
Differentiation through quality
Focus through quality
Quality as a core competency

13. Strategic Quality Planning Quality Strategy Process
The Forced Choice Model

14. Strategic Quality Planning Deploying Quality
Hoshin Kanri or Policy Deployment
The Company develops a year plan
The Senior Executives develop the current years objectives.

15. Strategic Quality Planning Deploying Quality
Hoshin Kanri or Policy
Deployment Catchball occurs
The process is interactive
Teams report up
Management delivers
feedback
Hoshin Planning

16. Strategic Quality Planning Deploying Quality
A Mature Strategic
Planning Process

17. Strategic Quality Planning Does Quality Lead to Better Business Results?
Quality and
Price
Cost
Productivity
Profitability
Sustainability

18. Strategic Quality Planning Does Quality Lead to Better Business Results?
Quality and
Price
Cost
Productivity
Profitability
Sustainability

19. Strategic Quality Planning Does Quality Lead to Better Business Results?
Quality and
Price
Cost
Productivity
Profitability
Sustainability

20. Strategic Quality Planning Does Quality Lead to Better Business Results?
Quality and
Price
Cost
Productivity
Profitability
Sustainability

21. Strategic Quality Planning Does Quality Lead to Better Business Results?
Quality and
Price
Cost
Productivity
Profitability
Sustainability

22. Strategic Quality Planning Supply Chain Strategy
Supply Chain Strategic Planning

23. Strategic Quality Planning Supply Chain Strategy
Logistics?
When shall we ship?
What mode of transportation shall we use?
How do we optimize our shipping practices?

24. Strategic Quality Planning Supply Chain Strategy
Suppliers?
Who are our preferred suppliers?
What is our process for supplier selection?
How do we develop suppliers?
How do we link with our suppliers?
Do we source globally?

25. Strategic Quality Planning Supply Chain Strategy
Inventory management?
Where do we optimally store inventory
How much? How long?
Do we have perishable stock?
Where do we carry safety stock?
ARE we maintaining good levels of service?

26. Strategic Quality Planning Supply Chain Strategy
Information Flows?
What kinds of enterprise resource planning systems are needed?
How do we link upstream and downstream?
What are data relations?
What data do we need to manage our supply chain effectively?

27. Strategic Quality Planning Supply Chain Strategy
Products?
How much product do we stock?
What product variety is necessary?
How do we win orders?
Where are our products in their life cycles?

28. Strategic Quality Planning Supply Chain Strategy
Service?
How do we define service along the supply chain?
What do our customers want?
Can we segment the supply chain?
Who are our customers?

29. Strategic Quality Planning Summary
Strategy Content
The importance of time in quality improvement
Leadership for quality
Quality and ethics
Quality as a strategy
Quality strategy process
Deploying quality
Does quality lead to better business results?
Supply chain strategy

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Printed in the United States of America.