MQC-CHAPTER-2 Quality Management Principles PDF

MANUFACTURING AND QUALITY CONTROL QUALITY MANAGEMENT PRINCIPLES 1  CHAPTER OBJECTIVE Explain the different principles of quality management in terms of leadership, customer focus, people involvement and continual improvement. 2...

MANUFACTURING AND QUALITY CONTROL QUALITY MANAGEMENT PRINCIPLES 1  CHAPTER OBJECTIVE Explain the different principles of quality management in terms of leadership, customer focus, people involvement and continual improvement. 2  CAN YOU SELL ME BALLPEN? 3  CUSTOMER FOCUS Customer focus is a business philosophy that places the customer at the center of all business development and management decisions. It is a marketing approach also, that involves products and services to be developed around consumer’s preferences. 4  TYPES OF CUSTOMERS External Customer – traditional customers o Take our products and services and pay for them o Exist outside the confines of our own organization o Open to approach from our competitors o May not be always dependent upon us for products and services may switch away to our competitors 5  TYPES OF CUSTOMERS Internal Customer – are the people in our own organization who are dependent on us for o Materials o Information o Instruction o Participation o Assistance 6  ► There are also some important core differences between internal and external customers. Here are some examples of differences to note: Company activities: A person becomes an external customer when they pay for a service or product a company offers. Internal customers, however, exchange information or objects within one company's internal workflow. Titles or classifications: External customers are typically clients, including individuals who buy a product or service one time or a long- term clientele. Depending on the context, multiple people acting within an organization might represent an internal customer. 7  Customer service goals: When addressing the needs of external customers, your goal might be to increase the number of purchases, referrals or positive reviews. A customer service goal regarding internal customers might be to increase employee satisfaction and overall productivity in the workplace. Types of interactions: External customer interactions are typically more straightforward while internal customer relationships are often reciprocal. For example, you might describe a marketing associate writing blog copy and a social media manager posting it on an online platform as internal customers for each other. 8  CUSTOMER PERCEPTION OF QUALITY 1. Performance – fitness for use 2. Features – secondary characteristics of the product 3. Service – Intangible characteristics but contribute greatly to customer satisfaction 4. Warranty – public promise of a quality product backed up by guarantee of customer satisfaction 5. Price - value 6. Reputation – entire customer experience 9  CUSTOMER FEEDBACK Feedback enables organizations to: o Discover customer dissatisfaction o Discover relative priorities of quality o Compare performance with the competition o Identify customer’s needs o Determine opportunities for improvement 10  CONSUMER BUYING BEHAVIOR 1. Complex buying behavior – buying an expensive product 2. Dissonance-reducing buying behavior – low availability of choices 3. Habitual buying behavior – just go for it and no brand loyalty 4. Variety seeking behavior – often brand 11 switching  LEADERSHIP IN QUALITY MOVEMENT ► The role of leadership in quality management forms the backbone of any improvement strategy. ► Leaders provide a unity of purpose, while also establishing the direction of the organization. ► The responsibility of leaders consists of creating and maintaining the internal environment. 12  CHARACTERISTICS OF QUALITY LEADERS They give priority attention to external and internal customers and their needs. Leaders place themselves in the customers’ shoes and service their needs from that perspective. They continually evaluate the customers’ changing requirements. They empower, rather than control, subordinates. Leaders have trust and confidence in the performance of their subordinates. They provide the resources, training, and work environment to help subordinates do their jobs. However, the decision to accept responsibility lies with the individual. 13  CHARACTERISTICS OF QUALITY LEADERS They emphasize improvement rather than maintenance. Leaders use the phrase “If it isn’t perfect, improve it” rather than “If it ain’t broke, don’t fix it.” There is always room for improvement, even if the improvement is small. Major breakthroughs sometimes happen, but it’s the little ones that keep the continuous process improvement on a positive track. They emphasize prevention. “An ounce of prevention is worth a pound of cure” is certainly true. It is also true that perfection can be the enemy of creativity. We can’t always wait until we have created the perfect process or product. There must be a balance between preventing problems and developing better, but not perfect, processes. 14  CHARACTERISTICS OF QUALITY LEADERS They encourage collaboration rather than competition. When functional areas, departments, or work groups are in competition, they may find subtle ways of working against each other or withholding information. Instead, there must be collaboration among and within units. They train and coach, rather than direct and supervise. Leaders know that the development of the human resource is a necessity. As coaches, they help their subordinates learn to do a better job. 15  CHARACTERISTICS OF QUALITY LEADERS They learn from problems. When a problem exists, it is treated as an opportunity rather than something to be minimized or covered up. “What caused it?” and “How can we prevent it in the future?” are the questions quality leaders ask. They continually try to improve communications. Leaders continually disseminate information about the TQM effort. They make it evident that TQM is not just a slogan. Communication is two ways—ideas will be generated by people when leaders encourage them and act upon them. 16  CHARACTERISTICS OF QUALITY LEADERS They choose suppliers on the basis of quality, not price. Suppliers are encouraged to participate on project teams and become involved. Leaders know that quality begins with quality materials and the true measure is the life- cycle cost. They establish organizational systems to support the quality effort. At the senior management level, a quality council is provided, and at the first-line supervisor level, work groups and project teams are organized to improve the process 17  CHARACTERISTICS OF QUALITY LEADERS They encourage and recognize team effort. They encourage, provide recognition, and reward individuals and teams. Leaders know that people like to know that their contributions are appreciated and important. This action is one of the leader’s most powerful tools 18  7 HABITS OF HIGHLY EFFECTIVE PEOPLE Habit 1 : Be Proactive - means taking responsibility for your life Reactive Proactive There’s nothing I can do. Let’s look at our alternatives. She makes me so mad. I control my own feelings. I have to do that. I will choose an appropriate response. I can’t. I choose. I must. I prefer. Things are getting worse. What initiative can we use? 19  7 HABITS OF HIGHLY EFFECTIVE PEOPLE Habit 2: Begin with the End in Mind Never compromise with honesty. Remember the people involved. Maintain a positive attitude. Exercise daily. Keep a sense of humor. Do not fear mistakes. Facilitate the success of subordinates. Seek divine help. Read a leadership book monthly 20  7 HABITS OF HIGHLY EFFECTIVE PEOPLE Habit 3 : Put First things First Putting first things first means doing the most important things in life. It means being clear about your priorities and acting on them. That sounds pretty easy and intuitive, but many people fall into the trap of getting caught up in non-important things. They neglect the larger life priorities until it becomes too late to act on them. 21  7 HABITS OF HIGHLY EFFECTIVE PEOPLE Habit 4 : Think Win-Win Habit 5 : Seek First to Understand, Than to be Understood Habit 6 : Synergy Habit 7: Sharpen the Saw 22  SUPPLIER FOCUS PARTNERING Partnering is a long-term commitment between two or more organizations for the purpose of achieving specific business goals and objectives by maximizing the effectiveness of each participant’s resources. 1. Long Term Commitment 2. Trust 3. Shared Vision 23  SUPPLIER FOCUS SOURCING 1. Sole – forced to use only one supplier due to patents, technical specifications, raw material location, etc. 2. Multiple – use of two or more suppliers 3. Single – planned decision to select one supplier as a result od large contracts and partnering relationships 24  SUPPLIER FOCUS SUPPLIER SELECTION 1.How critical is the item to the design of the product or service? 2.Does the organization have the technical knowledge to produce the items internally? If not, should that knowledge be developed? 3.Are there suppliers who specialize in producing the item? If not, is the organization willing to develop 25 such a specialized supplier?  EMPLOYEE INVOLVEMENT Employee involvement is not a replacement for management nor is it the final word in quality improvement. It is a means to better meet the organization’s goals for quality and productivity at all levels of an organization 26  EMPLOYEE INVOLVEMENT MOTIVATION 27  EMPLOYEE INVOLVEMENT EMPOWERMENT Empowerment is an environment in which people have the ability, the confidence, and the commitment to take the responsibility and ownership to improve the process and initiate the necessary steps to satisfy customer requirements within well-designed boundaries in order to achieve organizational values and goals. Empowerment should not be confused with delegation or job enrichment. Delegation refers to distributing and entrusting work 28 to others.  EMPLOYEE INVOLVEMENT Examples of employee empowerment: 1. Stop work in progress 2. Intervene on customer’s behalf 3. Make exception to procedures 4. Rework product or service 5. Replace merchandise 6. Refund money / authorize credit 29  EMPLOYEE INVOLVEMENT TEAMS A team is designed as a group of people working together to achieve common objectives or goals. Teamwork is the cumulative actions of the team during which each member of the team subordinates his individual interests and opinions to fulfill the objectives or goals of the group. You are only as strong as your weakest link. 30  EMPLOYEE INVOLVEMENT WHY DO TEAMS WORK 1. Many heads are more knowledgeable than one. 2. The whole is greater than the sum of its members 3. Teams provide vehicle for improved communication 31  EMPLOYEE INVOLVEMENT BARRIERS TO TEAM PROGRESS 1. Insufficient Training 2. Incompatible rewards and compensation 3. First line supervisor’s resistance 4. Lack of planning 5. Lack of management support 32 6. Access to information systems  EMPLOYEE INVOLVEMENT BARRIERS TO TEAM PROGRESS 7. Project scope is too large 8. Project objectives are not significant 9. No clear measures of success 10.No time to do improvement work 11.Team is too large 12.Trapped in groupthink 33  CONTINUOUS IMPROVEMENT CIP (continuous improvement process) is an active method by which teams continuously improve processes, especially in the area of production. Idea management refers to a general procedure by which the ideas of employees from the entire company are collected, evaluated and rewarded. 34 PRINCIPLES OF CONTINUOUS IMPROVEMENT Principle 1. Improvements are based on small changes, not only on major paradigm shifts or new inventions Principle 2. Employee ideas are valuable Principle 3. Incremental improvements are typically inexpensive to implement Principle 4. Employees take ownership and are involved in improvement Principle 5. Improvement is reflective Principle 6. Improvement is measurable and 35 potentially repeatable 36