1. Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. 1 Quality Management for Organizational Excellence By: Dr. David L. Goetsch and Stanley Davis Based on the book Quality Management for Organizational Excellence (Sixth Edition)

2. 2 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Instructor Info. Dr. Mohammed A. Nasseef Email: manassief@kau.edu.sa Website: www.nasseef.info Contact Number: 0540627773 ( SMS and whatsApp) note: mobile number is for urgent calls, please if you call consider a appropriate time.

3. 3 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Grading Policy case study Project 20 Quiz 1 10 Quiz 2 10 Class Participation 10 Final Exam 50 ________________ TOTAL 100

4. 4 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. MAJOR TOPICS Quality Evolution What is Quality? The Total Quality Approach Defined Two Views of Quality Key Elements of Total Quality Total Quality Pioneers One: The Total Quality Approach to Quality Management

5. 5 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Quality Evolution

6. 6 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Evolution of Quality I  Finding mistakes/errors  External assessment/control  Culture of mistrust  Inspecting the past

7. 7 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Evolution of Quality II  Looking into the past and plan for the future  avoid mistakes  personal responsibility / ownership  culture of trust

8. 8 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Evolution of Quality III  Systematic fulfillment of customer requirements

9. 9 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Evolution of Quality IV  Participation of all members of an organization

10. 10 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Quality is Everywhere people deal with the issue of quality continually in their daily lives We all apply a number of criteria when making a purchase To understand quality as a consumer-driven concept How will you judge the quality of the restaurant? Service Response time Food preparation Atmosphere Price Selection

11. 11 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. What is Quality * Quality must be defined comprehensively. It is not enough to say the product is of high quality; we must focus attention on the quality of every facet of the organization. * Consumers' needs and requirements change. Therefore, the definition of quality is ever changing. shikawa's

12. 12 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. What is Quality Fred Smith. CEO of FedEx defines quality as “ performance to the standard expected by customer “ Boeing “ providing our customer with products and services that consistently meet their needs and expectations”

13. 13 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. So Quality Is … Although there is no universally accepted definition of quality. There are some similarity among among quality definition: Quality involves meeting or exceeding customer expectations. Quality applies to products, services, people, processes, and environments. Quality is ever changing state (i.e., what consider quality today may not good enough to be considered quality tomorrow).

14. 14 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. WhyTQM? Why TQM? Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition.

15. 15 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. TQM Total Total - made up of the whole Quality Quality - degree of excellence a product or service provides Management Management - act, art or manner of planning, controlling, directing,…. Therefore, TQM is the art of managing the whole to achieve excellence.

16. 16 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. What does TQM mean? Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.

17. 17 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. What’s the goal of TQM? “Do the right things right the first time, every time.”

18. 18 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Anotherway to put it Another way to put it At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives: 4(1) total client satisfaction through quality products and services; and processes, systems, people, suppliers, partners, products, and services. 4(2) continuous improvements to processes, systems, people, suppliers, partners, products, and services.

19. 19 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Basic belief of TQM 1. The customer makes the ultimate determination of quality. 2. Top management must provide leadership and support for all quality initiatives. 3. Preventing variability is the key to producing high quality. 4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.

20. 20 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. The three aspects of TQM CountingCustomersCultureCountingCustomersCulture Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Quality for the customer as a driving force and central concern. Shared values and beliefs, expressed by leaders, that define and support quality.

21. 21 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Total Quality Management and Continuous Improvement TQM is the management process used to make continuous improvements to all functions. TQM represents an ongoing, continuous commitment to improvement. The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.

22. 22 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Continuous Improvement versus Traditional Approach Market-share focus Individuals Focus on ‘who” and “why” Short-term focus Status quo focus Product focus Innovation Fire fighting Customer focus Cross-functional teams Focus on “what” and “how” Long-term focus Continuous improvement Process improvement focus Incremental improvements Problem solving Traditional Approach Continuous Improvement

23. 23 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Quality Throughout “A Customer’s impression of quality begins with the initial contact with the company and continues through the life of the product.” Customers look to the total package - sales, service during the sale, packaging, deliver, and service after the sale. Quality extends to how the receptionist answers the phone, how managers treat subordinates, how courteous sales and repair people are, and how the product is serviced after the sale. “All departments of the company must strive to improve the quality of their operations.”

24. 24 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Value-based Approach Manufacturing Dimensions Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality Service Dimensions Reliability Responsiveness Assurance Empathy Tangibles

25. 25 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. The TQM System Customer Focus Process Improvement Total Involvement Leadership Education and Training Supportive structure Communications Reward and recognition Measurement Continuous Improvement Objective Principles Elements

26. 26 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Trends affecting the future of quality management include demanding global customers, shifting customer expectations, and opposing economic pressures The Total Quality Approach to Quality Management The Total Quality Approach to Quality Management

27. 27 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. W. Edwards Deming Born on October 14, 1900 Was an American statistician, professor, author, lecturer, and consultant Widely credited with improving production in the United States during the Cold War Best known for work in Japan Taught top management (1950 onwards) Total Quality Pioneers:

28. 28 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. W. Edwards Deming Quality keys: Understanding customer needs Process improvement Statistical analysis Expertise of workers PDCA cycle

29. 29 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. DEMING 14 POINTS 1. Create constancy of purpose 2. Adopt a new philosophy 3. Stop dependence on inspection 4. Don’t focus on price tag 5. Improve constantly & forever

30. 30 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. DEMING 14 POINTS 6. Institute training 7. Institute leadership 8. Drive out fear 9. Break down barriers 10. Eliminate slogans, exhortations

31. 31 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. DEMING 14 POINTS 11. Eliminate quotas; use leadership 12. Remove barriers to workmanship 13. strong education program 14. Involve everybody

32. 32 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Deming cycle, or PDSA cycle, is a continuous quality improvement model consisting of a logical sequence of four repetitive steps for continuous improvement and learning: Plan, Do, Study (Check) and Act. It is also known as the Deming circle/cycle/whe el, Shewhartcycle, control circle/cycle, or plan–do– study–act (PDSA)

33. 33 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. W. Edwards Deming in the 1950's proposed that business processes should be analyzed and measured to identify sources of variations that cause products to deviate from customer requirements. He recommended that business processes be placed in a continuous feedback loop so that managers can identify and change the parts of the process that need improvements.

34. 34 Quality Management, 6 th ed. Goetsch and Davis © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458. All Rights Reserved. Example : At Toyota this is also known as "Building people before building cars.“ Toyota and other Lean companies propose that an engaged, problem solving workforce, using PDCA, is better able to innovate and stay ahead of the competition through rigorous problem solving and the subsequent innovations. This also creates a culture of problem solvers using PDCA and creating a culture of critical thinkers.