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1MTSU
Total Quality Total Quality ManagementManagement
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2MTSU
Your InstructorYour InstructorKimball Bullington, Ph.D.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
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3MTSU
Your InstructorYour InstructorKimball Bullington, Ph.D.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
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4MTSU
Who Cares?Who Cares?(And Why Should I?)(And Why Should I?)
• Manufacturers• Service companies• Employers• Estimated cost of poor quality –
25%
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5MTSU
What is Quality?What is Quality?
• Many different definitions• Different perspectives• Different dimensions
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6MTSU
Quality From theQuality From theConsumer’s PerspectiveConsumer’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?
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7MTSU
Quality throughout HistoryQuality 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
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8MTSU
Quality From the Quality From the Producer’s/Provider’s Producer’s/Provider’s
PerspectivePerspective• 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?
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9MTSU
Engineering Perspective Engineering Perspective on Qualityon 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.
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10MTSU
Engineering Perspective Engineering Perspective on Qualityon 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
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11MTSU
Operations Perspective on Operations Perspective on QualityQuality
The Systems View of Operation Management
Planning Organizing
Controlling
InputsConversion
ProcessOutputs Customers
Feedback
Figure 1.3
© 2004 Prentice-Hall
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12MTSU
Operations Perspective on Operations Perspective on QualityQuality
• 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
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13MTSU
Strategic Management Strategic Management Perspective on QualityPerspective 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
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14MTSU
Strategic Management Strategic Management Perspective on QualityPerspective 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
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15MTSU
Marketing Perspective on Marketing Perspective on QualityQuality
• 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
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16MTSU
Marketing Perspective on Marketing Perspective on QualityQuality
• 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
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17MTSU
Financial Perspective on Financial Perspective on QualityQuality
• 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
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18MTSU
Financial Perspective on Financial Perspective on QualityQuality
The Deming Value Chain
ImproveQuality
ProductivityImproves
Capturethe
Market
Provide Jobsand More Jobs
Stay inBusiness
Cost decrease because of lessrework, fewer mistakes, fewer
delays, snags; better use ofmachine-time and materials
Figure 1.8
© 2004 Prentice-Hall
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19MTSU
Financial Perspective on Financial Perspective on QualityQuality
• 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
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20MTSU
Financial Perspective on Financial Perspective on QualityQuality
Basic Economic Quality Level Model
Quality
Cost
Costs of Improving Quality
Losses due to poor quality
Total Quality Costs = Sum of Losses and Gains
MinimumCost
Optimum Quality Level
Figure 1.9
© 2004 Prentice-Hall
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21MTSU
Costs of QualityCosts of Quality
• Appraisal – inspection & test• Prevention – mistake-proofing• Internal failures – scrap & rework• External failures – warranty
failures, other field failures, liability, loss of goodwill
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22MTSU
Human Resources Human Resources Perspective on QualityPerspective 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
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23MTSU
Human Resource Human Resource Perspective on QualityPerspective 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
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24MTSU
Other Perspectives on Other Perspectives on QualityQuality
• 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
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25MTSU
Nature of QualityNature of Quality
• Dimensions of Quality• Determinants of Quality• Costs of Quality
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26MTSU
Garvin’s Dimensions of QualityGarvin’s Dimensions of Quality
• Performance• Features• Reliability• Conformance• Durability• Serviceability• Aesthetics• Perceived Quality
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27MTSU
Determinants of QualityDeterminants 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
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28MTSU
Service Quality DimensionsService Quality Dimensions
Parasuraman, Zeithamel, and Berry’s Service Quality Dimensions
Tangibles
Service Reliability
Responsiveness
Assurance
Empathy© 2004 Prentice-Hall
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29MTSU
Service Quality Service Quality DimensionsDimensions
• 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
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30MTSU
Service Quality Service Quality DimensionsDimensions
• 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
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31MTSU
Quality TheoryQuality Theory
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32MTSU
Quality TheoryQuality Theory
• Theory – a model or framework describing the behavior of a certain natural or social phenomenon.
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33MTSU
Quality TheoryQuality 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?
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34MTSU
Inductive vs. Deductive Inductive vs. Deductive ReasoningReasoning
Data
Induction
Deduction
Generalization
Generalization Supported by DataMost Quality Leaders
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35MTSU
Contingency Theory Contingency Theory Applied to QualityApplied 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
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36MTSU
Contingency Approach to Contingency Approach to QualityQuality
• 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
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37MTSU
Quality From theQuality From theConsumer’s PerspectiveConsumer’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?)
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38MTSU
QualityQuality
Is there a problem?