6540-Chapter 26540-Chapter 26540-Chapter 26540-Chapter 2
Total Quality in Total Quality in OrganizationsOrganizations
Growth of Modern Growth of Modern Quality ManagementQuality Management
Manufacturing quality
Improvedproduct designs
Servicequality
Performanceexcellence
Systems ThinkingSystems Thinking
• A system is the functions or activities within an organization that work together for the aim of the organization.
• Subsystems of an organization are linked together as internal customers and suppliers.
• A systems perspective acknowledges the importance of the interactions of subsystems, not the actions of them individually.
Manufacturing Systems Manufacturing Systems (1 of 2)(1 of 2)
• Marketing and sales
• Product design and engineering
• Purchasing and receiving
• Production planning and scheduling
• Manufacturing and assembly
• Tool engineering
Manufacturing Systems Manufacturing Systems (2 of 2)(2 of 2)
• Industrial engineering and process design
• Finished goods inspection and test
• Packaging, shipping, and warehousing
• Installation and service
Quality in Business Support Quality in Business Support Functions for ManufacturingFunctions for Manufacturing
• General management
• Finance and accounting
• Human resource management
• Quality assurance
• Legal services
Quality in ServicesQuality 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).”
Critical Differences between Critical Differences between Service and Manufacturing Service and Manufacturing (1 of 2)(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
Critical Differences between Service Critical Differences between Service and Manufacturing and Manufacturing (2 of 2)(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
Components of Service Components of Service System QualitySystem Quality
• Employees
• Information technology
The Ritz-Carlton Hotel Co.The Ritz-Carlton Hotel Co.
Key Shifts in Customer Satisfaction Key Shifts in Customer Satisfaction ManagementManagement
From• Provider Orientation• Tolerance• Directing• Employee as Expendable
Resource• Reactive• Tradition and “Busy-ness”• Turf Protection• “We-They” Thinking• Cynicism
To• Customer Orientation• Higher Standards• Empowering• Employee as Customer• Proactive• Experimentation and Risk• Results• Teamwork Across Lines• Organizational Perspective• Optimism
Quality in Health Care Quality in Health Care
• Joint Commission on Accreditation of Healthcare Organizations (JCAHO)
• National Committee for Quality Assurance (NCQA)
• Institute for Healthcare Improvement (IHI)
• 1999 expansion of the Baldrige Award to nonprofit health care organizations
Quality Issues in Health CareQuality Issues in Health Care
• Avoidable errors
• Underutilization of services
• Overuse of services
• Variation in services
Quality in EducationQuality in Education• Koalaty Kid program• 1999 expansion of the Baldrige
Award to nonprofit education organizations
• Success stories– Mt. Edgecumbe High School– Brazosport ISD– Hunderton Central Regional HS – Pinellas County Schools
Higher Education Higher Education as a Production Systemas a Production System
Design and Redesign Consumer
research Suppliers: families, highschools, colleges, business
Customers:business, families,society, students
Inputs:studentsfaculty
Processes
Teaching, counseling, scientific research
Outputs:able studentsnew knowledge
Quality in the Public SectorQuality in the Public Sector
• Quality in the Federal Government
• State and Local Quality Efforts