ENTREPRENEURSHIP

Lecture No: 27Resource Person:

Malik Jawad SaboorAssistant Professor

Department of Management SciencesCOMSATS Institute of Information Technology

Islamabad.

Previous Lecture Review

• Stakeholder’s Management

OBJECTIVES

 

• History and Importance of Quality• Defining Quality• Principles & Practices, Quality

Modern Importance of QualityModern Importance of Quality

“The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.”

- William Cooper Procter

Key Idea

Building—and maintaining—quality into an organization’s goods and services, and more importantly, into the infrastructure of the organization itself, is not an easy task.

Quality Assurance ...is any action directed toward providing

customers with goods and services of appropriate quality.

History of Quality Assurance (1 of 3)

History of Quality Assurance (1 of 3)

• Skilled craftsmanship during Middle Ages• Industrial Revolution: rise of inspection and

separate quality departments• Early 20th Century: statistical methods at Bell

System• Quality control during World War II• Post-war Japan: evolution of quality

management

History of Quality Assurance (2 of 3)

History of Quality Assurance (2 of 3)

• Quality awareness in U.S. manufacturing industry during 1980s: from “Little Q” to “Big Q” - Total Quality Management

• Malcolm Baldrige National Quality Award (1987)

• Disappointments and criticism

History of Quality Assurance (3 of 3)

History of Quality Assurance (3 of 3)

• Emergence of quality management in service industries, government, health care, and education

• Evolution of Six Sigma• Current and future challenge: keep progress

in quality management alive

Key Idea

While quality initiatives can lead to business success, they cannot guarantee it, and one must not infer that business failures or stock price dives are the result of poor quality.

Contemporary Influences on Quality

• Globalization• Social Responsibility• New Dimension of Qaulity- Innovation• Environmental sustainability• 21st Century Technology• Changing Demographics

Defining Quality

Perfection

ConsistencyEliminating waste

Fast delivery

Compliance with policies and procedures

Providing a good, usable product

Doing it right the first time

Delighting or pleasing customers

Total customer service and satisfaction

Formal Definitions of QualityFormal Definitions of Quality

• Transcendent definition: excellence• Product-based definition: quantities of product

attributes• User-based definition: fitness for intended use• Value-based definition: quality vs. price• Manufacturing-based definition: conformance

to specifications

Quality PerspectivesQuality Perspectives

Customer

Distribution

products and services

needs

transcendent &product-based user-based

manufacturing- based

value-based

Marketing

Design

Manufacturing

Information flowProduct flow

Key Idea

Because individuals in different business functions speak different “languages,” the need for different views of what constitutes quality at different points inside and outside an organization is necessary to create products of true quality that will satisfy customers’ needs.

Customer-Driven QualityCustomer-Driven Quality

• “Meeting or exceeding customer expectations”

• Customers can be...– Consumers– External customers– Internal customers

Total Quality

• People-focused management system• Focus on increasing customer satisfaction and

reducing costs• A systems approach that integrates organizational

functions and the entire supply chain• Stresses learning and adaptation to change• Based on the scientific method

Principles of Total Quality

• Customer and stakeholder focus• Participation and teamwork• Process focus supported by continuous

improvement and learning…all supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques

Customer and Stakeholder Focus

• Customer is principal judge of quality• Organizations must first understand

customers’ needs and expectations in order to meet and exceed them

• Organizations must build relationships with customers

• Customers include employees and society at large

Key Idea

To meet or exceed customer expectations, organizations must fully understand all product and service attributes that contribute to customer value and lead to satisfaction and loyalty.

Participation and Teamwork

• Employees know their jobs best and therefore, how to improve them

• Management must develop the systems and procedures that foster participation and teamwork

• Empowerment better serves customers, and creates trust and motivation

• Teamwork and partnerships must exist both horizontally and vertically

Key Idea

In any organization, the person who best understands his or her job and how to improve both the product and the process is the one performing it.

Continuous Improvement

• Enhancing value through new products and services

• Reducing errors, defects, waste, and costs• Increasing productivity and effectiveness• Improving responsiveness and cycle time

performance

Key Idea

Major improvements in response time may require significant simplification of work processes and often drive simultaneous improvements in quality and productivity.

Learning

• The foundation for improvement … Understanding why changes are successful through feedback between practices and results, which leads to new goals and approaches

• Learning cycle:– Planning– Execution of plans– Assessment of progress– Revision of plans based on assessment findings

TQM Infrastructure

• Customer relationship management• Leadership and strategic planning• Human resources management• Process management• Information and knowledge management

Lecture Review

Reference: Evans, James R. et. al, The Management and Control of Quality, 8th edition

• History and Importance of Quality

• Defining Quality

• Principles & Practices, Quality