1. Total Quality Management

2. Your Instructor Kimball Bullington, Ph.D.
Ph.D. in Industrial Engineering Dissertation Title: A Living Systems Methodology for Investigating the Validity of Organizational Change Prescriptions
Master’s Thesis: Taguchi Methods
20 years of operations experience

3. Your Instructor Kimball Bullington, Ph.D.
Quality Engineer
Quality Engineering Manager
Senior Member – American Society for Quality
ASQ Certified Six Sigma Black Belt
Author and Speaker on various quality topics

4. Who Cares? (And Why Should I?)
Manufacturers
Service companies
Employers
Estimated cost of poor quality – 25%

5. What is Quality? Many different definitions Different perspectives
Different dimensions

6. Quality From the Consumer’s Perspective
How do you judge the quality of a product? I know it when I see it.
How do you judge the quality of a service?

7. Quality throughout History
Inspectors and samples
Guilds – (apprentices, journeymen, masters)
Certification and insurance
Mass production and interchangeable parts
Scientific management
Military dependence upon quality
Dark ages of quality
Modern quality movement

8. Quality From the Producer’s/Provider’s Perspective
What is the challenge to operations managers regarding quality?
Where does quality in a product/service begin?
How is quality achieved?
How is quality maintained?
How do we learn the customer’s perspective / perception?

9. Engineering Perspective on Quality
Product Design Engineering
Involves all of those activities associated with developing a product from concept development to final design and implementation.
Product design life cycle
Key to quality - quality is assured at the design stage.
Concurrent engineering
The simultaneous performance of product and process design activities.
Has resulted in improved quality and shorter time to market for new products.

10. Engineering Perspective on Quality
Life Testing
Is a facet of reliability engineering that concerns itself with determining whether a product will fail under controlled conditions during a specified life.
Redundancy
Is applied so that a back up system can take over for the failed primary system.
© 2004 Prentice-Hall

11. Operations Perspective on Quality
The Systems View of Operation Management
Figure 1.3
Planning
Organizing
Inputs
Conversion
Process
Outputs
Customers
Feedback
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Controlling

12. Operations Perspective on Quality
Operations/Marketing Interface
In recent years, a major advance in operations management has been the improved understanding of the operations/marketing interface.
The interface has resulted in an increased focus on the customer.
This externalized view is important as operations managers in firms still tend to be focused heavily on meeting production schedules, sometimes at the expense of good quality.
© 2004 Prentice-Hall

13. Strategic Management Perspective on Quality
Nature of the Strategic Management Perspective
Strategy refers to the planning processes used by an organization to achieve a set of long term goals.
The planned course of action must be cohesive and coherent in terms of goals, policies, plans, and sequencing to achieve quality improvement.
© 2004 Prentice-Hall

14. Strategic Management Perspective on Quality
Nature of the Strategic Management Perspective
Initially, quality-related strategic planning was treated as if it were a separate exercise from firm-level strategic planning.
However, quality management, to become pervasive in a firm, needed to be included in all of the firm’s business practices, including strategic planning.
© 2004 Prentice-Hall

15. Marketing Perspective on Quality
Nature of Marketing Perspective
Marketing efforts are often focused on managing perceptions of quality.
Relationship Management
Directing attention toward satisfying and delivering value to the customer.
Tools for Influencing Customer Perceptions of Quality
Price and advertising are the primary tools for influencing customer perceptions of quality, but are imperfect mechanisms.
© 2004 Prentice-Hall

16. Marketing Perspective on Quality
Focus on Service
Another important contribution of the marketing perspective has been the focus on service.
Customer service surveys are important tools for assessing the multiple dimensions of quality.
© 2004 Prentice-Hall

17. Financial Perspective on Quality
Nature of the Financial Perspective
One of the most commonly asked questions about quality management is “will it pay us financial benefits?”
The financial perspective relies more on quantified, measurable, results-oriented thinking.
W. Edwards Deming made the first conceptual attempt to link quality improvements to financial results through the “Deming Value Chain.”
Harry and Schroeder have made the most complete link to date in Six Sigma
© 2004 Prentice-Hall

18. Financial Perspective on Quality
The Deming Value Chain
Figure 1.8
Improve
Quality
Cost decrease because of less
rework, fewer mistakes, fewer
delays, snags; better use of
machine-time and materials
Productivity
Improves
Capture
the
Market
Stay in
Business
Provide Jobs
and More Jobs
© 2004 Prentice-Hall

19. Financial Perspective on Quality
Law of Diminishing Marginal Returns
According to this law, there is a point at which investments in quality improvement will become uneconomical.
According to the quadratic economic quality level model, higher levels of quality will result in higher expenditures.
This view is at odds with the ethic of continual improvement.
© 2004 Prentice-Hall

20. Financial Perspective on Quality
Basic Economic Quality Level Model
Figure 1.9
Cost
Total Quality Costs = Sum of Losses and Gains
Costs of Improving Quality
Minimum Cost
Losses due to poor quality
Optimum Quality Level
Quality
© 2004 Prentice-Hall

21. Costs of Quality Appraisal – inspection & test
Prevention – mistake-proofing
Internal failures – scrap & rework
External failures – warranty failures, other field failures, liability, loss of goodwill

22. Human Resources Perspective on Quality
Nature of Human Resources Perspective
Understanding the human resources perspective on quality is essential as it is impossible to implement quality without the commitment and action of employees.
Related Concepts
Employee Empowerment
Organizational Design
Job Analysis
360-degree evaluation
Total Quality Human Resources Management
© 2004 Prentice-Hall

23. Human Resource Perspective on Quality
Employee Empowerment
Empowering employees involves moving decision making to the lowest level in the organization.
Organizational Design
Human resources managers are involved in many aspects of organizational design, such as the design of reward systems, pay systems, organizational structure, compensation, training mechanisms, and employee grievance arbitration.
Job Analysis
Involves collecting detailed information about a particular job.
© 2004 Prentice-Hall

24. Other Perspectives on Quality
Cultural Perspectives on Quality
International marketers have long noted that there are differences in tastes and preferences between cultures and nations.
It is not so obvious that approaches to quality improvement may differ according to culture.
© 2004 Prentice-Hall

25. Nature of Quality Dimensions of Quality Determinants of Quality
Costs of Quality

26. Garvin’s Dimensions of Quality
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived Quality

27. Determinants of Quality
Design of the product/service
Capabilities of the transformation processes
Conformance to design specifications
Quality of customer service
The role of quality in the organizational culture

28. Service Quality Dimensions
Parasuraman, Zeithamel, and Berry’s Service Quality Dimensions
Tangibles
Responsiveness
Service Reliability
Assurance
© 2004 Prentice-Hall
Empathy

29. Service Quality Dimensions
Tangibles
Include the physical appearance of the service facility, the equipment, the personnel, and the communication material.
Service Reliability
Differs from product reliability in that it relates to the ability of the service provider to perform the promised service dependably and accurately.
Responsiveness
The willingness of the service provider to be helpful and prompt in providing service.
© 2004 Prentice-Hall

30. Service Quality Dimensions
Assurance
The knowledge and courtesy of employees and their ability to inspire trust and confidence.
Empathy
Caring, individual attention paid to customers by the service firm.
© 2004 Prentice-Hall

31. Quality Theory

32. Quality Theory
Theory – a model or framework describing the behavior of a certain natural or social phenomenon.

33. Quality Theory
There is no unified or standard quality theory just as there is no single definition of total quality management.
Why is this a problem?

34. Inductive vs. Deductive Reasoning
Induction
Data
Generalization
Deduction
Generalization
Supported by Data
Most Quality Leaders

35. Contingency Theory Applied to Quality
Contingency theory presupposes that there is no theory or method for operating a business that can be applied in all situations.
As a result, a coherent quality strategy will need to address key environmental variables.
© 2004 Prentice-Hall

36. Contingency Approach to Quality
Definitions and dimensions of quality applied within an organization will, and should vary.
Dimensions of quality will depend on the environment in which a company operates.
Provides flexibility to managers in pursuing quality.
© 2004 Prentice-Hall

37. Quality From the Consumer’s Perspective
How do you judge the quality of a product? (Example: What make of car do you drive? Why?)
How do you judge the quality of a service? (What is a great flight?)

38. Quality
Is there a problem?