mtsu 1 total quality management. mtsu 2 your instructor kimball bullington, ph.d. ph.d. in...

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Total Quality Total Quality ManagementManagement

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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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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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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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What is Quality?What is Quality?

• Many different definitions• Different perspectives• Different dimensions

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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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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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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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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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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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Operations Perspective on Operations Perspective on QualityQuality

The Systems View of Operation Management

Planning Organizing

Controlling

InputsConversion

ProcessOutputs Customers

Feedback

Figure 1.3


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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.


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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.


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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.


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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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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.


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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


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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


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• 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.


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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


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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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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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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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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.


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Nature of QualityNature of Quality

• Dimensions of Quality• Determinants of Quality• Costs of Quality

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Garvin’s Dimensions of QualityGarvin’s Dimensions of Quality

• Performance• Features• Reliability• Conformance• Durability• Serviceability• Aesthetics• Perceived Quality

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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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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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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.


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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.


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Quality TheoryQuality Theory

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

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• 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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Inductive vs. Deductive Inductive vs. Deductive ReasoningReasoning

Data

Induction

Deduction

Generalization

Generalization Supported by DataMost Quality Leaders

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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.


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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.


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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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mtsu 1 total quality management. mtsu 2 your instructor kimball bullington, ph.d. ph.d. in...

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quality quality

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quality asq

quality nature

total quality management

various quality topics

quality life testing

cost of poor quality