1. Total Quality in Organizations
6540-Chapter 2
Total Quality in Organizations

2. Growth of Modern Quality Management
Manufacturing
quality
Improved
product designs
Service
Performance
excellence

3. Systems Thinking
A system is the functions or activities within an organization that work together for the aim of the organization.
Subsystems of an organization are linked together as internal customers and suppliers.
A systems perspective acknowledges the importance of the interactions of subsystems, not the actions of them individually.

4. Manufacturing Systems (1 of 2)
Marketing and sales
Product design and engineering
Purchasing and receiving
Production planning and scheduling
Manufacturing and assembly
Tool engineering

5. Manufacturing Systems (2 of 2)
Industrial engineering and process design
Finished goods inspection and test
Packaging, shipping, and warehousing
Installation and service

6. Quality in Business Support Functions for Manufacturing
General management
Finance and accounting
Human resource management
Quality assurance
Legal services

7. Quality in Services
Service is defined as “any primary or complementary activity that does not directly produce a physical product – that is, the non-goods part of the transaction between buyer (customer) and seller (provider).”

8. Critical Differences between Service and Manufacturing (1 of 2)
Customer needs and performance standards are more difficult to identify and measure
Services requires a higher degree of customization
Output is intangible

9. Critical Differences between Service and Manufacturing (2 of 2)
Services are produced and consumed simultaneously
Customers are often involved in actual process
Services are more labor-intensive than manufacturing
Services handle large numbers of transactions

10. Components of Service System Quality
Employees
Information technology

11. The Ritz-Carlton Hotel Co.

12. Key Shifts in Customer Satisfaction Management
From
Provider Orientation
Tolerance
Directing
Employee as Expendable Resource
Reactive
Tradition and “Busy-ness”
Turf Protection
“We-They” Thinking
Cynicism To
Customer Orientation
Higher Standards
Empowering
Employee as Customer
Proactive
Experimentation and Risk
Results
Teamwork Across Lines
Organizational Perspective
Optimism

13. Quality in Health Care
Joint Commission on Accreditation of Healthcare Organizations (JCAHO)
National Committee for Quality Assurance (NCQA)
Institute for Healthcare Improvement (IHI)
1999 expansion of the Baldrige Award to nonprofit health care organizations

14. Quality Issues in Health Care
Avoidable errors
Underutilization of services
Overuse of services
Variation in services

15. Quality in Education Koalaty Kid program
1999 expansion of the Baldrige Award to nonprofit education organizations
Success stories
Mt. Edgecumbe High School
Brazosport ISD
Hunderton Central Regional HS
Pinellas County Schools

16. Higher Education as a Production System
Design and
Redesign
Consumer
research
Suppliers:
families, high
schools, colleges,
business
Customers:
business, families,
society, students
Inputs:
students
faculty
Processes
Teaching, counseling,
scientific research
Outputs:
able students
new knowledge

17. Quality in the Public Sector
Quality in the Federal Government
State and Local Quality Efforts