Evans Q11 Chapter 01 - Intro to Quality PDF

Chapter 1 Introduction to Quality Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ...

Chapter 1 Introduction to Quality Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Business Imperative “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 Quality, productivity, and cost remain imperatives for modern organizations. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Importance of Quality Quality is uniquely positioned to accelerate organizational growth through better execution and alignment Quality provides the voice of the customer critical to developing innovative products and services. Quality can provide an organization with a competitive edge “No quality, no sales. No sales, no profit. No profit, no jobs.” Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality Profile – Motorola, Inc. Leader in the U.S. quality revolution during the 1980s Pioneer in continual reduction of defects and cycle times Exceptional practices in managing human assets, sharing data and information with employees, customers, and suppliers, and aligning all its business processes with key organizational objectives. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality Profile – Mid-America Transplant A private, nonprofit organ procurement organization and eye and tissue bank. Staff members have an exceptional level of understanding of how their individual positions align with the organization’s mission. Strategic Thinking Process provides agility in identifying, evaluating, and prioritizing change initiatives that respond to strategic challenges and opportunities. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Defining Quality Perfection Fast delivery Providing a good, usable product Consistency Eliminating waste Doing it right the first time Delighting or pleasing customers Total customer service and satisfaction Compliance with policies and procedures Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Formal Definitions of Quality Transcendent Perspective: excellence Product Perspective: quantities of product attributes User Perspective: fitness for intended use Value Perspective: quality versus price Manufacturing Perspective: conformance to specifications Customer Perspective: meeting or exceeding customer expectations Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Customers Consumers o Ultimate buyers of goods and services External customers o Business-to-business Internal customers o Anyone who receives goods or services from someone else within an organization Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.1: Quality Perspectives in the Value Chain Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. History of Quality Management (1 of 4) Ancient History o Zhou Dynasty in China The Age of Craftsmanship o Skilled workers during the Middle Ages o Industrial Revolution Early 20th Century o Separate quality departments o Ford Motor Company o Statistical methods and quality assurance o Professional societies and publications Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. History of Quality Management (2 of 4) Post World War II o Evolution of quality management in Japan o W. Edwards Deming and Joseph Juran U.S. “Quality Revolution” o Quality crisis circa 1980 o Growth of product quality awareness in manufacturing industries Rapid Growth in Business o Malcolm Baldrige National Quality Award (1987) o Books, consulting, training Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Growth of Modern Quality Management Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. History of Quality Management (3 of 4) From Product Quality to Total Quality Management o “Little Q” vs. “Big Q” and TQM (or simply, total quality – TQ) Early Management Failures o Cynicism and disinterest o “No, TQM isn’t dead. TQM failures just prove that bad management is still alive and kicking.” Performance Excellence o Focus on customer value, organizational sustainability, improvement of effectiveness and capabilities, and organizational and personal learning Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. History of Quality Management (4 of 4) Emergence of Six Sigma o a customer-focused, results-oriented approach to business improvement Globalization of Quality o National quality efforts o No significant differences among regions around the world Current and future challenges o Continue to apply the principles of quality and performance excellence. o Quality is “a race without a finish line.” Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ASQ Futures Study (2015) 1. Organizations must knock down silos of information in order to get the right information to the right places. Where speed of decision and speed of action are crucial, very careful decisions will have to be made about what to share and what to hold close. 2. Organizations must begin to think differently about things they assume to know quite well, such as customers. Even though organizations will get better in understanding customers, it will be difficult to keep pace with rapid changes in the nature of customer demand. 3. The implications of almost limitless connectivity will change how organizations must think about, and do, almost everything. Everything—from connectivity in smart manufacturing, to medical schools holding classes for thousands of students simultaneously around the world, to city management, where a crisis in one sector can be immediately identified, communicated, and reacted to in seconds—will affect everything else, both for better and for worse. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.2: Functional Relationships in a Typical Manufacturing System Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Marketing Marketing and sales personnel are responsible for determining the needs and expectations of consumers. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Product Design Product design and engineering functions develop technical specifications for products and production processes to meet the requirements determined by the marketing function. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Purchasing A purchasing agent should not simply be responsible for low-cost procurement, but should maintain a clear focus on the quality of purchased goods and materials. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Production Planning & Scheduling Poor quality often results from time pressures caused by insufficient planning and scheduling. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Manufacturing and Assembly Both technology and people are essential to high-quality manufacturing. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Process Design Manufacturing processes must be capable of producing output that meets specifications consistently. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Finished Goods Inspection and Testing The purposes of final product inspection are to judge the quality of manufacturing, to discover and help to resolve production problems that may arise, and to ensure that no defective items reach the customer. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Installation and Service Service after the sale is one of the most important factors in establishing customer perception of quality and customer loyalty. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Services Service is defined as “any primary or complementary activity that does not directly produce a physical product – that is, the non-goods part of the transaction between buyer (customer) and seller (provider).” Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Critical Differences Between Service and Manufacturing (1 of 2) Customer needs and performance standards are more difficult to identify and measure Services requires a higher degree of customization Output is intangible Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Critical Differences Between Service and Manufacturing (2 of 2) Services are produced and consumed simultaneously Customers are often involved in actual process Services are more labor-intensive than manufacturing Services handle large numbers of transactions Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Components of Service Quality People o “If we take care of our people, they will take care of our customers.” Technology o Computers and information technology o E-commerce Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality in Business Support Functions Finance and Accounting o Budgeting, cost of quality Legal Services o Liability Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Role of the Quality Function (1 of 3) Quality control (QC). Techniques and activities that focus on controlling or regulating processes and materials to fulfill quality requirements and prevent defective products or services from being passed on. Metrology. Ensuring that the measurements used in controlling quality are meaningful and accurate, and ensuring that measurement equipment is calibrated and traceable to the National Institute of Standards and Technology (NIST). Training. Providing training that supports employee skills training and education in quality-related topics. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Role of the Quality Function (2 of 3) Auditing. Managing or overseeing the activities involved with auditing products, processes, and quality management systems to ensure that the organization’s strategies, goals, objectives, policies, and procedures relative to quality are followed. Reliability engineering. Working with design and production functions to determine product reliability with an aim of lowering total cost of ownership of the product and satisfying customers. Problem solving. Working where needed to apply expertise, such as the tools of quality control and statistical analysis. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Role of the Quality Function (3 of 3) Supplier quality management. Managing or overseeing the activities that ensure that high-quality suppliers are selected and that incoming purchased parts and materials are acceptable in grade, timeliness, and other characteristics. Product/service design. Working with sales, design, and other functions to ensure quality in products under development. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Competitive Advantage Is driven by customer wants and needs Makes significant contribution to business success Matches organization’s unique resources with opportunities Is durable and lasting Provides basis for further improvement Provides direction and motivation Quality supports each of these characteristics. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.3: Quality and Profitability Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality and Business Results Hendricks and Singhal study of quality award winners Performance results of Baldrige Award recipients o Example: The overall Net Promoter (NP) scores (a loyalty metric defined by the level of repeat sales and referrals) for MEDRAD, a manufacturer of medical imaging devices, were consistently 60 percent or higher compared to the 50 percent or higher marks for other organizations nationwide. MEDRAD’s global customer satisfaction ratings using the NP system steadily increased from 50 percent to 63 percent, surpassing the best-in-class benchmark of 50 percent. Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quality and Personal Values Personal initiative has a positive impact on business success Quality-focused individuals often exceed customer expectations Quality begins with personal attitudes Attitudes can be changed through awareness and effort (e.g., personal quality checklists) Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Unless quality is internalized at the personal level, it will never become rooted in the culture of an organization. Thus, quality must begin at a personal level (and that means you!). Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  END Evans and Lindsay, Managing for Quality and Performance Excellence, 11th Edition. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.