Quality Management for Organizational Excellence Lecture/Presentation Notes By:

Quality Management for Organizational Excellence Lecture/Presentation Notes By:

Quality Management for Organizational Excellence Lecture/Presentation Notes By: Dr. David L. Goetsch and Stanley Davis Based on the book Quality Management for Organizational Excellence (Eighth Edition) Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

One: The Total Quality Approach to Quality Management MAJOR TOPICS What is Quality? The Total Quality Approach Defined Two Views of Quality Key Elements of Total Quality Total Quality Pioneers Keys to Total Quality Success

How is Six Sigma Achieved? The Future of Quality Management Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved One: The Total Quality Approach to Quality Management Quality has been defined in a number of ways. When viewed from a consumers perspective, it means meeting or exceeding customer expectations. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved One: The Total Quality Approach to Quality Management Total quality is an approach to doing business that attempts to maximize an organizations competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

One: The Total Quality Approach to Quality Management Key characteristics of the total quality approach are as follows: strategically based, customer focus, obsession with quality, scientific approach, long-term commitment, teamwork, employee involvement and empowerment, continual process improvement, bottomup education and training, freedom through control, and unity of purpose. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved One: The Total Quality Approach to Quality Management

The rationale for total quality can be found in the need to compete in the global marketplace. Countries that are competing successfully in the global marketplace are seeing their quality of living improve. Those that cannot are seeing theirs decline. W. Edward Deming is best known for his Fourteen Points, the Deming Cycle, and the Seven Deadly Diseases. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved One: The Total Quality Approach to Quality Management

Joseph M. Juran is best known for Jurans Three Basic Steps to Progress, Jurans Ten Steps to Quality Improvement, the Pareto Principle, and the Juran Trilogy. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved One: The Total Quality Approach to Quality Management Common errors made when starting quality initiatives include senior management delegation and poor leadership; team mania; the

deployment process; a narrow, dogmatic approach; and confusion about the differences among education, awareness, inspiration, and skill building. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved One: The Total Quality Approach to Quality Management Trends affecting the future of quality management include demanding global customers, shifting customer expectations, opposing economic pressures, and new approaches to

management. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved One: The Total Quality Approach to Quality Management The American Society for Quality (ASQ) offers certifications in a variety of disciplines including Manager of Quality/ Organizational Excellence, Quality Engineer, Reliability Engineer, Software Quality Engineer, Quality Auditor, Six Sigma Black Belt, Six Sigma Green Belt, Quality Technician, Calibration

Technician, Quality Improvement Associate, Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved One: The Total Quality Approach to Quality Management Quality Inspector, Quality Process Analyst, Hazard Analysis and Critical Point Auditor, Biomedical Auditor, and Pharmaceutical GMP Professional. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Two: Quality and Global Competitiveness MAJOR TOPICS The Relationship between Quality and Competitiveness Cost of Poor Quality Competitiveness and the U.S. Economy Factors Inhibiting Competitiveness Comparisons of International Competitors Human Resources and Competitiveness Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Two: Quality and Global Competitiveness Characteristics of World-Class Organizations Management by Accounting, Antithesis of Total Quality U.S. Companies: Global Strengths and Weaknesses Quality Management Practices in Asian Countries. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Two: Quality and Global Competitiveness The relationship between quality and competitiveness can be summarized as follows: In a modern global marketplace, quality is the key to competitiveness. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Two: Quality and Global Competitiveness The costs of poor quality include the

following: waste, rejects, retesting, rework, customer returns, inspection, recalls, excessive overtime, pricing errors, billing errors, excessive turnover, premium freight costs, development cost of the failed product, field service costs, overdue receivables, handling complaints, expediting, system costs, planning delays, Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Two: Quality and Global Competitiveness late paperwork, lack of follow-up,

excess inventory, customer allowances, and unused capacity. The United States came out of World War II as the only major industrialized nation with its manufacturing sector completely intact. Germany and Japan were devastated by damage during the war. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Two: Quality and Global Competitiveness They rebuilt their manufacturing bases on the assumption that to compete

globally, they would have to produce goods of world-class quality. That strategy helped them recover and become world leaders in manufacturing. Several factors can inhibit competitiveness, including those related to business and government, family, and education. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Two: Quality and Global Competitiveness When making comparisons among

internationally competing countries, the following indicators are usually used: standard of living, trade and export growth, and manufacturing productivity. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Two: Quality and Global Competitiveness The most important key in maximizing competitiveness is the human resource. Following World War II, this was the only resource that Germany and Japan had to

draw on. Consequently, they built economic systems that encourage private employers to make business decisions that emphasize improved productivity and quality, rather than price. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Three: Strategic Management: Planning and Execution for Competitive Advantage MAJOR TOPICS What is Strategic Management? Competitive Strategy Core Competencies and Competitive

Advantage Components of Strategic Management Strategic Planning Overview Creative Thinking in Strategic Planning Conducting the SWOT Analysis Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Three: Strategic Management: Planning and Execution for Competitive Advantage

Developing the Vision Developing the Mission Developing the Guiding Principles Developing Broad Strategic Objectives Developing Specific Tactics (Action Plan) Executing the Strategic Plan Strategic Planning in Action: A Real World Case Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Three: Strategic Management: Planning and Execution for Competitive Advantage Strategies that organizations can adopt for gaining a sustainable competitive advantage are cost leadership, differentiation, and market-niche strategies. Core competencies are things an organization dose so well they can be viewed as providing a competitive advantage. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Three: Strategic Management: Planning

and Execution for Competitive Advantage Strategies are approaches adopted by organizations to ensure successful performance in the marketplace. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Three: Strategic Management: Planning and Execution for Competitive Advantage Strategic management is management that bases all actions, activities, and decisions on what is most likely to ensure successful performance in the marketplace. The two major

components of strategic management are strategic planning and strategic execution. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Three: Strategic Management: Planning and Execution for Competitive Advantage Part of strategic planning is thinking creatively to eliminate sacred cows that work against competitiveness. Strategic planning is the process whereby organizations develop their vision, mission, guiding principles,

broad objectives, and tactics for accomplishing the broad objectives. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Three: Strategic Management: Planning and Execution for Competitive Advantage An organizations vision is its guiding force, the dream of what it wants to become and its reason for being. An organizations mission describes who an organization is, what it does, and where it is going.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Three: Strategic Management: Planning and Execution for Competitive Advantage An organizations guiding principles establish the framework within which it will pursue its mission. Together, the guiding principles summarize an organizations value system, the things it believes are most important. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Three: Strategic Management: Planning and Execution for Competitive Advantage An organizations broad strategic objectives translate its mission into more specific terms that represent actual targets at which the organization aims. The objectives are more specific than the mission, but they are still broad. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Three: Strategic Management: Planning and Execution for Competitive Advantage Tactics are well defined, finite projects and activities undertaken for the purpose of specific desired outcomes in support of the broad objectives. Even the best strategic plan will serve no purpose unless it is effectively executed. To promote successful execution of strategies, organizations should undertake the following activities: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Three: Strategic Management: Planning and Execution for Competitive Advantage Communicate, build capabilities, establish strategy-supportive stimuli, eliminate administrative barriers, identify advocates and resisters, exercise strategic leadership, and monitor and adjust as needed. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility MAJOR TOPICS

Definition and Overview of Ethics Trust and Total Quality Values and Total Quality Integrity and Total Quality Responsibility and Total Quality Managers Role in Ethics Organizations Role in Ethics Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility Handling Ethical Dilemmas Ethics Training and Codes of Business Conduct Models for Making Ethical Decisions Beliefs versus Behavior: Why the Disparity? Ethical Dilemmas: Cases Corporate Social Responsibility Defined Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility Ethics is about doing the right thing within a moral framework. The most common impediment to ethical conduct is human nature because people tend to behave according to perceived personal interest. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics,

and Corporate Social Responsibility Trust is a critical element of ethics, which, in turn, makes ethics critical in total quality. Many of the fundamental elements of total quality depend on trust and ethical behavior, including communication, interpersonal relations, conflict management, problem solving, teamwork, employee involvement and empowerment, and customer focus. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility

Trust can be built by being loyal to those not present, keeping promises, and sincerely apologizing when necessary. Values are those core beliefs that guide our behavior. Individuals and organizations apply their knowledge and skills most willingly to efforts in which they believe. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility

Managers should work to establish an environment in which values that lead to ethical behavior and values that lead to peak performance are the same. Integrity requires honesty, but it is more than just honest. Integrity is a combination of honesty and dependability. People with integrity can be counted on to do the right thing, do it correctly, and do it on time. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics,

and Corporate Social Responsibility Accepting responsibility is part of ethical behavior. People who pass blame are not behaving ethically. In a total quality setting, people are responsible for their performance. When speaking of their organization, ethical people say, we instead of they. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility

Managers play a key role in ethics in an organization. They are responsible for setting an example of ethical behavior, helping employees make ethical choices, and helping employees follow through and behave ethically after making an ethical choice. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility In carrying out these responsibilities, managers can use the best-ratio

approach, black-and-white approach, and full-potential approach. The organizations role in fostering ethical behavior includes creating an ethical environment and setting an ethical example. Key in creating an ethical environment is having a comprehensive ethics policy. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility Key in setting an example is following the

policy, expecting all employees to follow the policy, and rewarding those who do. In handling ethical dilemmas, managers should select the option that is most likely to build trust, integrity, and a sense of responsibility and that is most likely to pass the various ethics tests (i.e., front-page, morning-after, etc.). Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility People who believe in ethical values will

sometimes make unethical decisions because of self-interest, self-protection, conflicting values, or because they see the benefits as being intangible or deferred. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Four: Quality Management, Ethics, and Corporate Social Responsibility Key elements of corporate social responsibility include the ethical aspects of the following issues: human rights, safety and health, business

practice, governance, environmental engagement, consumer relations, marketplace activities, community involvement and social development. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Five: Partnering and Strategic Alliances MAJOR TOPICS

Partnering or Strategic Alliances Innovative Alliances and Partnerships Internal Partnering Partnering with Suppliers Partnering with Customers Partnering with Potential Competitors Global Partnering Education and Business Partnerships Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Five: Partnering and Strategic Alliances Partnering means working together for mutual benefit. It involves pooling resources, sharing costs, and cooperating in ways that mutually benefit all parties involved in the partnership. Partnerships may be formed internally (among employees) and externally with suppliers, customers, and potential competitors. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Five: Partnering and Strategic Alliances The purpose of partnering is to enhance competitiveness. The formation of partnerships should be a systematic process involving such steps as development of a partnering briefing, identification of potential partners, identification of key decision makers, implementation of the partnership. Internal partnering operates on three levels: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Five: Partnering and Strategic Alliances Management-to-employees, team-toteam partnerships, and employee-toemployee partnerships. The purpose of internal partnering is to harness the full potential of the workforce and focus it on the continuous improvement of quality. Internal partnering is also called employee involvement and employee empowerment. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Five: Partnering and Strategic

Alliances Successful internal partnering requires a supportive environment, structured mechanisms, and mutually supportive alliances. The goal of a supplier partnership is to create and maintain loyal, trusting relationships that will allow both partners to win while promoting the continuous improvement of quality, productivity, and competitiveness. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Five: Partnering and Strategic Alliances The requirements for success in supplier partnerships include the following: Supplier personnel should interact with employees who actually use their products, the price-only criteria in the buyer-supplier relationship should be eliminated, the quality of products delivered should be guaranteed by the supplier, supplier should be proficient in JIT, and both parties should be capable of sharing information electronically. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Five: Partnering and Strategic Alliances Supplier partnerships typically develop in the following stages: uncertainty and tentativeness, short-term pressure, realization of the need for new approaches, adoption of new paradigms, awareness of potential, adoption of new values, and mature partnering. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Five: Partnering and Strategic Alliances The rationale for forming customer partnerships is customer satisfaction. The best way to ensure customer satisfaction is to involve customers as partners in the product development process. Doing so is, in turn, the best way to ensure competitiveness. Customer-defined quality is a fundamental aspect of total quality. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Five: Partnering and Strategic

Alliances Small- and medium-sized enterprises or SMEs, even those that compete in the same markets, can benefit from partnering. The most widely practiced form of partnership among SMEs is the manufacturing network. A manufacturing network is a group of SMEs that cooperate in ways that enhance their quality, productivity, and competitiveness. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Five: Partnering and Strategic

Alliances Mutual need and interdependence are the characteristics that make manufacturing networks succeed. Widely practiced network activities include joint production, education and training, marketing, product development, technology transfer, and purchasing. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Five: Partnering and Strategic Alliances

Education and business partnerships are formed to help organizations continually improve their people and how well they interact with process technologies. Services provided include on-site customized training, workshops, seminars, technical assistance, and consulting. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Six: Quality Culture: Changing Hearts, Minds and Attitudes MAJOR TOPICS

Understanding What a Quality Culture Is Quality Culture versus Traditional Cultures Activating Cultural Change Changing Leaders to Activate Change Laying the Groundwork for a Quality Culture Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Six: Quality Culture: Changing Hearts, Minds and Attitudes Learning What a Quality Culture Looks Like

Countering Resistance to Cultural Change Establishing a Quality Culture Maintaining a Quality Culture Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Six: Quality Culture: Changing Hearts, Minds and Attitudes A quality culture is an organizational value system that results in an environment that is conducive to the establishment and continual improvement of quality. It consists of values, traditions,

procedures, and expectations that promote quality. Implementing total quality necessitates cultural change in an organization, for the following reasons: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Six: Quality Culture: Changing Hearts, Minds and Attitudes Change cannot occur in a hostile environment. Moving to total quality takes time. It can be difficult to overcome the past.

Change can be difficult because resisting change is natural human behavior. In any organization there will be advocates of change and resisters. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Six: Quality Culture: Changing Hearts, Minds and Attitudes Sometimes advocates focus so intently on the expected benefits of change that they fail to realize how the change will be perceived by potential resisters. People resist change for the following reasons:

Uncertainty More work Fear Loss of Control Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Six: Quality Culture: Changing Hearts, Minds and Attitudes To overcome resistance to change,

advocates can apply the following strategies: Involve potential resisters. Avoid surprises. Move slowly at first. Start small and be flexible. Create a positive environment. Incorporate the change. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Six: Quality Culture: Changing Hearts, Minds and Attitudes Provide a quid pro quo. Respond quickly and positively. Work with established leaders. Treat people with dignity and respect. Be constructive. Strategies for establishing a quality

culture include the following: Identify the changes needed. Put the planned changes in writing. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Six: Quality Culture: Changing Hearts, Minds and Attitudes Develop a plan for making the changes. Understand the emotional transition process. Identify key people and make them advocates. Take a hearts and minds approach. Apply courtship strategies.

Support. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty MAJOR TOPICS Understanding Who Is a Customer Understanding Customer-Defined Quality Identifying External Customer Needs Identifying Internal Customer Needs Communicating with Customers Using Customer Feedback to Make

Design Improvements Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty Customer Satisfaction Process Customer-Defined Value Customer Value Analysis Customer Retention Establishing a Customer Focus Recognizing the Customer-Driven Organization Value Perception and Customer Loyalty Customer Loyalty Model

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty Customer Loyalty versus Customer Profitability Customers as Innovation Partners

Historically, customers were considered who used a companys products and suppliers were outsiders who provided the materials needed to produce the products. A more contemporary view is that every organization has both internal and external customers. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty An external customer is the one referred to in the traditional definition.

An internal customer is any employee whose work depends on that of employees whose work precedes his or hers. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty In a total quality setting, customers define quality. Therefore, customer satisfaction must be the highest priority. Customer satisfaction is achieved by producing high-quality

products that meet or exceed expectations. It must be renewed with each purchase. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty The key to establishing a customer focus is to put employees in touch with customers so that customer needs are known and understood. The six-step strategy for identifying customer needs is as follows: speculate

about results, develop an informationgathering plan, gather information, analyze the results, check the validity of conclusions, and take action. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty Customer needs are not static. Therefore, constant contact with customers is essential in a total quality setting. Whenever possible, this contact should be in person or by telephone. Written surveys can be used, but they will not produce the level

of feedback that personal contact can generate. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty Quality function deployment (QFD) is a mechanism for putting into operation the concept of building in quality. It makes customer feedback a normal part of the product development process, thereby improving customer satisfaction.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty Measuring customer satisfaction alone is not enough. Many customers who defect are satisfied. Organizations should, in addition, measure customer retention. Organizations should go beyond satisfying customers to creating value for them in every supplier-customer interaction. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty The customer loyalty model consists of four components: 1) business performance, 2) global perceptions, 3) loyalty behaviors, and 4) financial outcomes. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Seven: Customer Satisfaction, Retention, and Loyalty The goal of organizations should be more than just earning customer loyalty; it should be earning the loyalty of profitable customers. Organizations should never assume a positive correlation between customer loyalty and profitability, nor should they assume that a customer who is initially profitable will always be profitable. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Seven: Customer Satisfaction, Retention, and Loyalty An innovative approach to product development that is gaining acceptance is turning customers into innovation partners. With this approach, the customer is given a technological tool kit for designing his or her own products and making product innovations. This approach is implemented using the following steps: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction,

Retention, and Loyalty develop a tool kit for customers that is easy to use increase the flexibility of your own production processes carefully select the first customers to use your took kit continually improve your tool kit adapt your business practices to suit the innovation partnership approach. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty

In order to retain customers over the long term in todays hyper-competitive global environment, organizations must innovate. If the key to customer loyalty is consistently providing superior value super quality, superior cost, and superior servicethe key to providing superior value is innovation. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seven: Customer Satisfaction, Retention, and Loyalty Innovation is how organizations

continually improve the quality and cost of their products as well as the quality of their services. It is also how they continually improve (decrease) the cost of doing business while increasing the volume of business they do. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eight: Employee Empowerment MAJOR TOPICS

Employee Empowerment Defined Rationale for Empowerment Inhibitors of Empowerment Managements Role in Empowerment Implementing Empowerment How to Recognize Empowered Employees Beyond Empowerment to Enlistment Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Eight: Employee Empowerment Empowerment means engaging employees in the thinking processes of an organization in ways that matter, involvement means having input. Empowerment means having input that is heard and used, and it means giving employees ownership of their jobs. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eight: Employee Empowerment Empowerment requires a change in organizational culture, but it does not

mean that managers abdicate their responsibility or authority. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eight: Employee Empowerment The rationale for empowerment is that it is the best way to increase creative thinking and initiative on the part of employees. This, in turn, is an excellent way to enhance an organizations competitiveness. Another aspect of the rationale for empowerment is that it can be an

outstanding motivator. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eight: Employee Empowerment The primary inhibitor of empowerment is resistance to change. Resistance may come from employees, unions, and management. Management-related inhibitors include fear of losing control, Im-the-boss syndrome, status, outdated management training, oldschool syndrome, and fear of exclusion. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eight: Employee Empowerment Managements role in empowerment is best described as commitment, leadership, and facilitation. The kinds of support managers can provide include having a supportive attitude, role modeling, training, facilitating, employing MBWA, taking quick action on recommendations, and recognizing the accomplishments of employees. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Eight: Employee Empowerment The implementation of empowerment has four broad steps: creating a supportive environment; targeting and overcoming inhibitors; putting the vehicles in place; and assessing, adjusting, and improving. Vehicles include brainstorming, nominal group technique, quality circles, suggestion boxes, and walking and talking. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Eight: Employee Empowerment A workforce that is ready for empowerment is accustomed to critical thinking, understands the decisionmaking process, and knows where it fits into the big picture. Enlistment is empowerment in which ownership is not just allowed, but expected. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change MAJOR TOPICS Leadership Defined

Leadership for Quality Leadership Skills: Inherited or Learned? Leadership, Motivation, and Inspiration Leadership Styles Leadership Styles in a Total Quality Setting Building and Maintaining a Following Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Nine: Leadership and Change Leadership Versus Management Leadership and Ethics Leadership and Change Employees and Managers on Change Restructuring and Change How to Lead Change

Lessons from Distinguished Leaders Servant Leadership and Stewardship Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change Negative Influences on Leaders: How to Counter Them Leadership is the ability to inspire people to make a total, willing, and voluntary commitment to accomplishing or exceeding organizational goals.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change Good leaders overcome resistance to change, broker the needs of constituent groups inside and outside the organization, and establish an ethical framework. Good leaders are committed to both the job to be done and the people who must do it. They are good communicators and they are persuasive. Leaders should learn to follow first and then lead. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change The key elements of leadership for quality are: customer focus, obsession with quality, recognition of the structure of work, freedom through control, unity of purpose, looking for faults in the systems, teamwork, continuing education and training, and emphasis on best practices/peak performance. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change Common leadership styles include the following: democratic, participative, goal-oriented, and situational. The appropriate leadership style in a total quality setting is participative taken to a higher level. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change

Leadership characteristics that build and maintain followership are a sense of purpose, self-discipline, honesty, credibility, common sense, stamina, steadfastness, and commitment. Leaders can build trust by applying the following strategies: Taking the blame Sharing the credit Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change Pitching in and helping Being consistent

Being equitable. To facilitate change in a positive way, leaders must have a clear vision and corresponding goals, exhibit a strong sense of responsibility, be effective communicators, have a high energy level, and have the will to change. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change When restructuring, organizations should show that they care, let employees vent, communicate, provide

outplacement services, be honest and fair, provide for change agents, have a clear vision, offer incentives, and train. The change facilitation model contains the following steps: Develop a compelling change picture Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change Communicate the change picture to all stakeholders Conduct a comprehensive roadblock analysis Remove or mitigate roadblocks

Communicate, implement, and incorporate change. Implement the change Monitor and adjust Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change Servant leadership and stewardship go beyond employee empowerment to employee autonomy and seek to create an environment in which employees perform out of the spirit of ownership and commitment. Leaders can counter the negative

influence of followers by: Keeping vision and values uppermost in their minds Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nine: Leadership and Change Looking for disagreement among the advisors Encouraging truth-telling Setting the right example Following their intuition Monitoring delegated work. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Ten: Team Building and Teamwork MAJOR TOPICS Overview of Team Building and Teamwork Building Teams and Making Them Work Four-Step Approach to Team Building Character Traits and Teamwork Teams Are Not BossedThey are Coached Handling Conflict in Teams Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Ten: Team Building and Teamwork Structural Inhibitors of Teamwork Rewarding Team and Individual Performance Recognizing Teamwork and Team Players Leading Multicultural Teams A team is a group of people with a common, collective goal. The rationale for the team approach to work is that two heads are better than one. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Ten: Team Building and Teamwork A group of people becomes a team when the following conditions exist: There is agreement as to the mission Members adhere to ground rules There is a fair distribution of responsibility and authority People adapt to change. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Ten: Team Building and Teamwork

Teams can be classified as department, process improvement, and task force teams. Factors that can promote the success of a team are: Personal identity of team members Relationships among team members The teams identity within the organization. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Ten: Team Building and Teamwork To be an effective team leader, one should apply the following strategies:

Be clear on the teams mission. Identify success criteria. Be action centered. Establish ground rules. Share information Cultivate team unity. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Ten: Team Building and Teamwork One can be a good team member by applying the following strategies: Gain entry. Be clear on the teams mission. Be well prepared and participate. Stay in touch. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Ten: Team Building and Teamwork After a team has been formed, a mission statement should be drafted. A good mission statement summarizes the teams reason for being. It should be broad enough to allow for the measure of progress. Character traits that promote successful teamwork are: Honesty Selflessness Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Ten: Team Building and Teamwork Dependability Enthusiasm Responsibility Cooperativeness Initiative Patience

Resourcefulness Punctuality Tolerance/Sensitivity Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Ten: Team Building and Teamwork Perseverance Teams are not bossed. They are coached. Coaches are facilitators and mentors. They promote mutual respect among team members and foster cultural diversity.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Ten: Team Building and Teamwork Employees will not always work well together as a team just because its the right thing to do. Employees might not be willing to trust their performance, in part, to other employees. Common structural inhibitors in organizations are: Unit structure Accountability Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Ten: Team Building and Teamwork Unit goals Responsibility Compensation Recognition Planning Control

Team and individual compensation systems can be developed in four steps: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Ten: Team Building and Teamwork Decide what performance to measure. Determine how to measure the performance. Identify the rewards to be offered. Integrate related processes. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Ten: Team Building and Teamwork Challenges faced when leading multicultural teams include differing: 1) approaches to decision making, 2) attitudes toward authority, 3) attitudes toward work, and 4) approaches to communicating. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Eleven: Effective Communication MAJOR TOPICS Defining Communication Understanding the Role of Communication in Total Quality Understanding Communication as a Process Recognizing Inhibitors of Communication Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eleven: Effective Communication Establishing a Conducive

Communication Climate Communicating by Listening Understanding Nonverbal Communication Factors Communicating Verbally Communicating in Writing Communicating Corrective Feedback Improving Communication Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eleven: Effective Communication How Interpersonal Skills Affect Communication Personality and Communication

Communication is the transfer of a message that is both received and understood. Effective communication is a higher order of communication. It means the message is received, understood, and being acted on in the desired manner. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eleven: Effective Communication Communication is the oil that keeps the total quality engine running. Without it, total quality breaks down. Communication plays the role of

facilitation in a total quality setting. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eleven: Effective Communication Communication is a process that involves a message, sender, receiver, and medium. The message is what is being transmitted (information, emotion, intent, or something else). The sender is the originator of the message, and the receiver is the person to whom it goes. The medium is the vehicle used to transfer the message.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eleven: Effective Communication Various factors can inhibit communication. Prominent among these are: Differences in meaning

A lack of trust Information overload Interference Premature judgments Kill the Messenger syndrome Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eleven: Effective Communication Condescending tone Inaccurate assumptions Listening problems. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training MAJOR TOPICS Overview of Education, Training, and Learning Rationale for Training Training Needs Assessment Providing Training Evaluating Training Managers as Trainers and Trainees Workforce Literacy Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Twelve: Education and Training Improving Learning Why Training Sometimes Fails Quality Training Curriculum Orientation Training Customer Training Ethics Training Making E-Learning Work

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training Training is an organized, systematic series of activities designed to enhance an individuals work-related knowledge, skills, understanding, and motivation. Training is distinguished from education by its characteristics of practicality, specificity, and immediacy. Education is a broader concept that is more philosophical and theoretical in nature than training.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training Corporate training in the United States has historically focused more on managers than on workers. However, with the advent of total quality, the focus is beginning to change. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Twelve: Education and Training Historically, corporate America has not placed as high a priority on training as have companies from global competition. However, with the increased pressure from global competition, this attitude is beginning to change. The rationale for training can be found in the following factors: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training

Quality of the existing labor pool Global competition Rapid and continual change Technology transfer problems Changing demographics It is important to place the emphasis of training on those who need it most and to ensure that training is designed to promote the organizations goals. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training These requirements are met by assessing training needs before providing training. Training needs can be assessed by observing, brainstorming, and surveying. Training needs should be converted to training objectives that are stated in behavioral terms. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Twelve: Education and Training Training can be provided in-house: Through corporate-owned education and training facilities In conjunction with colleges, universities, and professional organizations Via satellite downlinks Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training

Evaluating training begins with a clear statement of purpose. With a statement of purpose drafted, the next step is to ask the following questions: Was the training valid? Did the employees learn? Has the training made a difference? Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training Managers who serve as trainers should understand the principles of learning and the four-step teaching method:

Preparation Presentation Application Evaluation Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training In presenting instruction, trainers should

remember that people learn by doing. Widely used instructional approaches are lecture/discussion; demonstration; teleconference; simulation; and videotaped programmed, and interactive video instruction. Functional illiteracy affects business and industry as follows: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training Difficulty in filling high-skill jobs Lower productivity Higher levels of waste Higher potential for damage to

sophisticated equipment More dissatisfied employees Before putting employees in training, it is a good idea to teach them study skills that will enhance their learning. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training They should:

Learn to make a schedule and stick to it. Have a special place to study. Listen and take notes. Read assertively. Study regularly instead of cramming. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Twelve: Education and Training When training fails, the reason is often a lack of participation by management or insufficient scope (focusing on the specifics before teaching the big picture). Quality training should be divided into three broad categories of study: Quality Planning Quality Control Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training Quality Improvement

Orientation training sometimes fails. When it does, the cause is usually one of the following factors: Insufficient information Too much information Conflicting information To improve orientation training, organizations should: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training Base orientation topics on a needs

assessment Establish an organizing framework Establish learner control Make orientation a process rather than an event Allow people and personalities to emerge Reflect the organizations mission and culture Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twelve: Education and Training Have a system for improving and updating

Topics frequently dealt with in ethics training programs include: Drug and alcohol abuse Theft Conflicts of interest Abuse of expense accounts Misuse of company property Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Twelve: Education and Training Kickbacks Bribery Improper relations with government officials False advertising E-learning works, but when learning coaches and mentors are provided. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Thirteen: Overcoming Politics,

Negativity, and Conflict in the Workplace MAJOR TOPICS Internal Politics Defined Power and Politics Organizational Structure and Internal Politics Internal Politics in Action Internal Politicians and their Methods Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace Impact of Internal Politics on Quality

Controlling Internal Politics in Organizations Overcoming Negativity in Organizations Overcoming Territorial Behavior in Organizations Managing Conflict in Organizations Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace Internal politics consists of activities undertaken to gain advantage or influence organizational decision

making in ways intended to serve a purpose other than the best interests of the overall organization. It is the games people play to promote decisions that are based on criteria other than merit. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace Organizational structure is not the cause of internal politics. All of the widely used organizational structures are susceptible to internal politics.

Several conceptspersonal insecurity, self-interest, a hunger for power, ambition, ego, and the need for acceptanceare the primary drivers of internal politics. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace The most commonly used methods of internal politicians are as follows: lobbying, building coalitions, applying harassment and pressure, electioneering, gossiping, and

spreading rumors. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace The rationale for collaboration is found in the debilitating effect internal politics can have on an organization. Internal politics can drain an organization of its intellectual and physical energy and in the process take way its ability to compete.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace An organizations effort to control internal politics should have at least the following components: strategic planning, leadership, reward/recognition, performance appraisal, customer focus, conflict management, and culture. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace The most common categories of negative behavior are control disputes; territorial (boundary) disputes; dependence and independence issues; need for attention; and responsibility, authority, and loyalty issues. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace The following symptoms are indicators of negativity in the workplace: I cant attitudes, they mentality, critical conversation, and blame-fixing among employees. To overcome negativity, organizations should communicate, establish clear expectations, provide opportunities for anxiety venting, build trust, and involve employees. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace Territorial behavior in organizations manifests itself in the following ways: occupation, information manipulation, intimidation, alliances, invisible walls, strategic noncompliance, discredit, shunning, camouflage, and filibustering. The following strategies will help when trying to overcome territorial behavior: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace Avoid jumping to conclusions Attribute the behavior to instinct rather than people Ensure that employees dont feel attacked Avoid generalizations, understand irrational fears Respect each individuals perspective Consider the employees point of view. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Thirteen: Overcoming Politics,

Negativity, and Conflict in the Workplace Causes of workplace conflict include: Limited resources Incompatible goals Role ambiguity Different perspectives Poor communication Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Thirteen: Overcoming Politics, Negativity, and Conflict in the Workplace Managers have two responsibilities regarding conflict in the workplace: Conflict resolution Conflict stimulation Conflict should be stimulated to overcome excessive compliance and complacency. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fourteen: ISO 9000 and Total Quality: The Relationship MAJOR TOPICS ISO 9000: The International Standard for Quality Management Systems ISO 9000s Objective How ISO 9000 Is Applied to Organizations The ISO 9000 Quality Management System: A Definition Authority for Certification/Registration ISO 9000 Registration Statistics Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Fourteen: ISO 9000 and Total Quality: The Relationship Organizational Registration to ISO 9001 The Benefits of ISO 9000 The Origin of ISO 9000 Comparative Scope of ISO 9000 and Total Quality Management Management Motivation for Registration to ISO 9001 ISO 9000 and Total Quality Management Working Together The Future of ISO 9000

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fourteen: ISO 9000 and Total Quality: The Relationship ISO is based on eight principles: customer focus, leadership, involvement of people, process approach, system approach to management, continual improvement, factual approach to decision making, and mutually beneficial supplier relationships.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fourteen: ISO 9000 and Total Quality: The Relationship The overall aim of ISO 9000 is to make registered organizations more competitive. ISO 9000 is applied to organizations on a volunteer basis. It tells the organization what they must do to conform but not how to do it. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fourteen: ISO 9000 and Total Quality: The Relationship The quality management system must include the following: a quality policy, the quality manual, quality objectives, and forms and records. In order for an organization to become an ISO 9000 registrar, it must be approved by an accrediting body such as the International Accreditation Forum (IAF). Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fourteen: ISO 9000 and Total Quality: The Relationship The most widely used industry-specific applications of ISO 9001 are TickIT, AS 9000, PS 9000, ISO/TS 16949, TL 9000, ISO 13485, and ISO/TS 29001. ISO registration can benefit an organization by improving customer satisfaction, costs, risk management, and, in turn, competitiveness. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Fourteen: ISO 9000 and Total Quality: The Relationship The various updates to ISO 9000 are ISO 9000-1987, ISO 9000-1994, ISO 9001-2000, ISO 9001-2008, and ISO 9001-2015. The key issue in the 2015 update is risk. The following statements describe the relationship between ISO 9000 and TQM: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Fourteen: ISO 9000 and Total Quality: The Relationship ISO 9000 and TQM are not completely interchangeable: ISO 9000 is compatible with, and can be a subset of TQM; ISO 9000 is frequently implemented in a non-TQM environment; ISO 9000 can improve operations in a traditional environment; ISO 9000 may be redundant in a mature TQM environment; and ISO 9000 and TQM are not in competition. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Fourteen: ISO 9000 and Total Quality: The Relationship The origins of ISO 9000 and total quality management are vastly different. ISO 9000 was developed in response to the need to harmonize dozens of national and international standards relating to quality. Total quality got its start in Japan around 1950 as a way to help that nation compete in the international marketplace. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Fourteen: ISO 9000 and Total Quality: The Relationship The new aim of ISO 9000 is to enable organizations to better serve their customers and to be more competitive through adherence to the standards eight quality management principles. Appropriate motivations for implementing ISO 9000 are as follows: To improve operations To improve or create a quality management system Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Fourteen: ISO 9000 and Total Quality: The Relationship To improve the consistency of quality To improve customer satisfaction To improve competitive posture To conform to the requirements of customers. The appropriate motivation for implementing TQM is a desire to continually improve all aspects of an organization. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fourteen: ISO 9000 and Total Quality: The Relationship ISO 9000 and TQM are compatible in that ISO 9000 can be a complementary subset of TQM. ISO 9000 can give an organization a head start in implementing TQM. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Fifteen: Overview of Total Quality Tools MAJOR TOPICS Total Quality Tools Defined The Pareto Chart Cause-and-Effect Diagrams Check Sheets Histograms

Scatter Diagrams Run Charts and Control Charts Stratification Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fifteen: Overview of Total Quality Tools Some Other Tools Introduced Managements Role in Tool Deployment Pareto charts are useful for separating the important from the trivial. They are named after Italian economist and sociologist Vilfredo Pareto. Pareto

charts are important because they can help an organization decide where to focus limited resources. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fifteen: Overview of Total Quality Tools The Pareto Principle holds that a few significant causes lead to the majority of problems. The cause-and-effect diagram was developed by the late Dr. Kaoru Ishikawa, a noted Japanese quality expert; others have thus called it the Ishikawa diagram.

Its purpose is to help identify and isolate the causes of problems. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fifteen: Overview of Total Quality Tools It is the only one of the seven basic quality tools that is not based on statistics. The check sheet is a tool that facilitates collection of relevant data, displaying it in a visual form easily understood by the brain. Check sheets make it easy to collect data for specific purposes and to

present it in a way that automatically converts it into useful information. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fifteen: Overview of Total Quality Tools Histograms have to do with variability. Two kinds of data are commonly associated with processes: attributes data and variables data. An attribute is something that the output product of the process either has or does not have. Variables data are data that result when something is measured.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fifteen: Overview of Total Quality Tools A histogram is a measurement scale across one axis and a frequency of like measurements on the other. The scatter diagram is arguably the simplest of the seven basic quality tools. It is used to determine the correlation between two variables. It can show a positive correlation, a negative correlation, or no correlation.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fifteen: Overview of Total Quality Tools Stratification is a tool used to investigate the cause of a problem by grouping data into categories. Grouping of data by common element or characteristic makes it easier to understand the data and to draw insights from them. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fifteen: Overview of Total Quality Tools In the context of the seven total quality tools, run charts and control charts are typically thought of as being one tool together. The control chart is a more sophisticated version of the run chart. The run chart records the output results of a process over time. For this reason, the run chart is sometimes called a trend chart. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Fifteen: Overview of Total Quality Tools The weakness of the run chart is that it does not tell whether the variation is the result of special causes or common causes. This weakness gave rise to the control chart. On such a chart, data are plotted just as they are on a run chart, but a lower control limit, an upper control limit, and a process average are added. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Fifteen: Overview of Total Quality Tools The plotted data stays between the upper control limit and lower control limit while varying about the center line or average only so long as the variation is the result of common causes such as statistical variation. Other useful quality tools are five-S, flowcharts, surveys, failure mode and effects analysis (FMEA), and design of experiments (DOE). Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Fifteen: Overview of Total Quality Tools Five-S is used to eliminate waste and reduce errors, defects, and injuries. Flowcharts are used in a total quality setting for charting the inputs, steps, functions, and outflows of a process to understand more fully how the process works and who or what has input to and influence on the process, what its inputs and outputs are, and even its timing. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Fifteen: Overview of Total Quality Tools The survey is used to obtain relevant information from sources that otherwise would not be heard from in the context of providing helpful data. Failure mode and effects analysis (FMEA) tries to identify all possible potential product or process failures and prioritize them for elimination according to their risk. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Fifteen: Overview of Total Quality Tools Design of experiments (DOE) is a sophisticated method for experimenting with complex processes for the purpose of optimizing them. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making MAJOR TOPICS Problem Solving for Total Quality Two Models for Solving and Preventing

Problems Solving and Preventing Problems Problem-Solving and Decision-Making tools Decision-Making for Total Quality The Decision-Making Process Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Objective versus Subjective DecisionMaking Scientific Decision-Making and Problem Solving Employee Involvement in Decision-Making

Role of Information in Decision-Making Using Management Information Systems (MIS) Creativity in Decision-Making Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Decision Making is the process of selecting one course of action from among two or more alternatives. Decisions should be evaluated not just by results but also by the process used to make them.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making A problem is a situation in which what exists does not match what is desired or, put another way, the discrepancy between the current and the desired state of affairs. Problem solving in a total quality setting is not about putting out fires. It is about continual improvement.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Two effective problem-solving models are the Deming Cycle and the Toyota Practical Problem-Solving Process. Securing reliable information is an important part of problem solving and decision making. W. Edward Deming recommended the use of the following tools: Cause-and-effect diagrams Flowcharts

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Pareto charts Run charts Histograms Control charts

Scatter diagrams The decision-making process is a logically sequenced series of activities through which decisions are made. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making These activities include identifying or anticipating the problem; gathering relevant facts; considering alternative solutions; choosing the best alternative; and implementing, monitoring, and

adjusting. All approaches to decision making are objective, subjective, or a combination of the two. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Scientific decision-making means making decisions based on data rather than on hunches. Complexity in scientific decision making means nonproductive, unnecessary work that results when organizations try to

improve processes in a haphazard, nonscientific way. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making The different types of complexity include errors and defects, breakdowns and delays, inefficiency, and variation. There are advantages and disadvantages to employee involvement. Techniques to enhance group decision-making are brainstorming, NGT, and teams.

Managers should be prepared to counteract groupshift and groupthink. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Information is data that have been converted into a usable format that is relevant to the decision-making process. Decision makers are receivers of information who base decisions in whole or in part on what they receive. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Technological developments have introduced the potential for information overload, or the condition that exists when people receive more information than they can process in a timely manner. A management information system (MIS) is a system used to collect, store, process, and present information. Such a system has three components: Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making hardware, software, and people. A management information system can do an outstanding job of providing information about predictable and routine matters. However, many decisions that managers have to make concern problems that are not predictable for which no data are tracked. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Creativity is an approach to problem solving and decision-making that is imaginative, original, and innovative. The creative process proceeds in four stages: Preparation Incubation

Insight Verification. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Factors that inhibit creativity include:

Looking for just one right answer Being too logical Avoiding ambiguity Avoiding risk Forgetting how to play Fearing rejection Saying Im not creative. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Sixteen: Problem Solving and Decision Making Three strategies for helping people think creatively are

Idea vending Listening Idea attribution Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment MAJOR TOPICS What Is Quality Function Deployment? Introducing Quality Function Deployments House of Quality Developing the Set of Customer Needs (WHATs): House of Quality Matrix

Number 1 Planning the Improvement Strategy: House of Quality Matrix Number 2 Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Selecting the Technical Requirements (HOWs): House of Quality Matrix Number 3 Evaluating Interrelationships between WHATs and HOWs: House of Quality Matrix Number 4 Evaluating the Direction of Correlation

between HOWs: House of Quality Matrix Number 5 Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Selecting the Design Targets (Values) of the HOWs: House of Quality Matrix Number 6 Quality function deployment (QFD) is a specialized method for making customer needs/wants important components of the design and

production of the product or service. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Developed by Dr. Yoji Akao in 1966, QFD combines quality strategies with function deployment from the field of Value Engineering. In a sense, with QFD the customerthe potential user of the productbecomes part of the design team.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Introducing QFDs House of Quality (HOQ) The heart of QFD is the set of interrelated matrices known as the House of Quality (HOQ), so named because the complete matrix takes on the appearance of a house.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Matrix Number 1Customer Needs (Wants), also called Voice of the customer (VOC) Customer Needs input data are collected, refined and prioritized in this matrix. Affinity and Tree Diagrams are useful tools for refining customer needs data. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Coming out of this analysis of needs is an estimate of importance to the customer. Matrix 1 might look like this: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Seventeen: Quality Function Deployment Matrix Number 2Planning the Improvement Strategy. Competitive Benchmarking of our product vs. competing products. Establish desired customer satisfaction goal for each need. Establish Improvement Factors, Sales Points, and Weighting. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function

Deployment Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Matrix Number 3Selecting the Technical Requirements (HOWs) Lists characteristics and features of a product perceived as meeting the customer needs. (They are not design specs.) Developed using Matrices 1 and 2. State HOW well meet customer

requirements. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment

Matrix Number 4Evaluating Interrelationships between the WHATs and HOWs. At each intersection of a WHAT row with a HOW column an estimate of strong, medium, weak, or nonexistent relationship is entered. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Matrix Number 5Evaluates the Correlation (supportive or impeding) between the Technical Requirements (HOWs). Each diagonal intersection of HOW columns in the roof triangle is given a plus sign (for supportive), or minus sign (for impeding) correlation between the two HOWs. If there is no correlation the intersection is left blank. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Examining each intersection assures that all important factors are considered.

Matrix Number 6Selecting Design Targets of the Technical Requirements. The customer requirements describe WHAT the customer needs, and the design requirements tell HOW the company is going provide the product characteristics Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Necessary to address those needs, and these design targets specify HOW

MUCH of the characteristic needs to be provided. Design Targets has 3 sections: Technical Priorities (from data already in the HOQ). Technical Benchmarking (newly developed data). Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Design Target Values (developed from the previous two).

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Seventeen: Quality Function Deployment Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC)

MAJOR TOPICS Statistical Process Control Defined Rationale for SPC Control Chart Development Managements Role in SPC Role of the Total Quality Tools Authority over Processes and Production Implementation and Deployment of SPC

Inhibitors of SPC Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Definition: SPC is a statistical method of separating special-cause variation from natural variation to eliminate the special causes and establish and maintain consistency in the process, enabling process improvement . Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) The origin of SPC was in the work of Dr. Walter Shewhart at Bell Laboratories 1931. Although SPC was ignored in the West after World War II, Japan adopted and subsequently developed it into total quality. The rationale for SPC includes the following: Enables the control of process variation. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Makes possible continual improvement of the process. Results in predictability of processes. Results in elimination of waste. Makes less expensive inspection modes possible. SPC is essential today to elevate the quality of products and services while lowering costs in order to compete successfully in world markets.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Control Chart Development: There are several types of control charts, the choice of which being determined by the kind of process under consideration. Further, some control charts are designed for variables data (something measured), others are concerned with attributes data (something that can be counted).

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Different procedures are used for developing these two types of control. Both require Upper Control Limits (UCL) and Lower Control Limits (LCL) and a Process Average. Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Upper and Lower Control Limits and Process Average calculations for constructing the control chart are made from the actual process data, which must be of sufficient quantity, and taken over a relatively short period. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) After drawing the blank control chart with UCL, LCL and process average, the data from which the calculations were made are plotted on the chart. No data points can penetrate UCL or LCL, and there must be no long runs of data on one side of the process average. That will only be true if the process is free of special causes of variation. If that is the case, the chart is ready for use. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Continual improvement of processes requires that special causes be eliminated first. Process improvement narrows the shape of the processs bell curve, resulting in less variation. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes

through Statistical Process Control (SPC) Continual improvement is a key element of SPC and total quality. SPC enhances the predictability of processes and whole plants. Elimination of waste is another key element of SPC. SPC can help improve product quality while reducing product cost. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes

through Statistical Process Control (SPC) SPC makes sampling inspection more reliable. SPC supports process auditing as a substitute for more expensive inspection. SPC requires a capability in statistics, either in-house or through a consultant. Process operators should be key players in any SPC program. Understanding the process is a prerequisite to SPC implementation. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes

through Statistical Process Control (SPC) All employees involved in SPC must be trained for their involvement. Measurement repeatability and reproducibility is essential for SPC. Managements role in SPC is similar to its role in total quality overall: commitment, providing training, and involvement. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes

through Statistical Process Control (SPC) The seven tools, augmented by flowcharting, five-s, FMEA and DOE are required for SPC. SPC and the operator must have process-stop authority, SPC implementation must be carried out in an orderly, well thought-out sequence. SPC requires collaborative team activity. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes

through Statistical Process Control (SPC) The quality tools are used in SPC before the control chart is developed as aids in helping to eliminate special causes of variability. Operators who use SPC must have the authority to stop the production process when SPC tells them something is wrong. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes

through Statistical Process Control (SPC) The three broad phases of the process for implementing/deploying SPC are preparation, planning, and execution. Each of these phases consists of several steps. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Common inhibitors of SPC include

insufficient expertise/capabilities, misdirected responsibility for SPC, failure to understand the target process, failure to have processes under control, inadequate training and discipline, measurement repeatability/reproducibility, and low production rates. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Implementation and Deployment of SPC

Requires commitment and time of management and other key personnel. Requires some expertise in statistics. Must be done in a well planned, orderly process. (Roadmap on page 329) Inhibitors of SPC Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Lacking statistics expertise. May have to bring in outside help.

Assigning SPC responsibility to the wrong person/group. The process operator should own SPC on his process. Failing to understand how the process really works. Imperative that the process be accurately flowcharted first. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Trying to implement SPC while the process still has special cause variation.

Process needs to be cleaned up as much as possible before trying to make control charts. Inadequate training and lack of discipline in process operation. Users need training, and process procedures must be followed. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Eighteen: Optimizing and Controlling Processes through Statistical Process Control (SPC) Measurement repeatability and reproducibility lacking. Instrumentation

and procedures must be made repeatable and reproducible. Otherwise data is not reliable. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma MAJOR TOPICS Rationale for Continual Improvement Managements Role in Continual Improvement Essential Improvement Activities Structure for Quality Improvement

The Scientific Approach Identification of Improvement Needs Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Development of Improvement Plans

Common Improvement Strategies Additional Improvement Strategies The Kaizen Approach Goldratts Theory of Constraints The CEDAC Approach The Lean Approach The Six Sigma Approach The Lean Sigma Approach Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma The Theory of Contraints (TOC) and Integrated TOC, Lean, Six Sigma (iTLS)

Approach The rationale for continual improvement is that it is necessary in order to compete in the global marketplace. Just maintaining the status quo, even if the status quo is high quality, is like standing still in a race. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Managements role in continual improvement is leadership. Executive-level

managers must be involved personally and extensively. The responsibility for continual improvement cannot be delegated. Essential improvement activities include the following: Maintaining communication Correcting obvious problems Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Looking upstream for causes not symptoms

Documenting problems and progress Monitoring change Structuring for quality improvement involves the following: Establishing a quality council Developing a statement of responsibilities Establishing the necessary infrastructure Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Using the scientific approach means:

Collecting meaningful data Identifying root causes of problems Developing appropriate solutions Planning and making changes. Ways of identifying improvement needs include the following: Multivoting (brainstorming) for improvement candidates Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Identifying customer needs Studying how employee time is spent. Localizing problems before trying to solve them. Developing improvement plans involves the following steps: Understanding the process (Flow chart the process) Eliminating any obvious errors Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Removing slack from processes (anything that serves no purpose) Reducing variation in processes (special and common causes) Planning for continual improvement to become a way-of-life. Commonly used improvement strategies include the following: Describing the process and correcting obvious problems Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Standardizing the process (make sure the process procedures are followed) Eliminating errors and potential errors in the process Streamlining the process (eliminating nonvalue-adding steps) Reducing sources of variation Bringing the process under statistical control Improving the design of the process. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Additional improvement strategies include the following: Reducing leadtime Flowing production Using group technology Leveling production Synchronizing production

Overlapping production Using flexible scheduling Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Using pull control Using visual control Using stockless production Additional improvement strategies include the following:

Using jidoka Reducing setup time Controlling work-in-process Improving quality Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma

Applying total cost cycles Using cost curves Using supplier partners Applying total productive maintenance Kaizen is the name given by the Japanese to the concept of continual incremental improvement. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods

with Six Sigma, Lean, and Lean Six Sigma It is a broad concept that encompasses all of the many strategies for achieving continual improvement and entails the following five elements: Straighten up (getting rid of any tools, materials, etc. not required) Put things in order (so when a tool is needed, it is readily available) Clean up (keeping the workplace neat and clean Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods

with Six Sigma, Lean, and Lean Six Sigma Standardize (on the best practices) Discipline (everyone adheres to the work procedures) CEDAC is an acronym for Cause-andEffect Diagram with the Addition of Cards. (This acronym is a registered trademark of Productivity, Inc.) Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma With CEDAC, a cause-and-effect

diagram is developed, but fact cards about problems and improvement cards containing ideas for solving the problems are used. The Lean Approach is based on the justin-time Toyota Production System (TPS). Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma A Lean operation is one in which a better product is developed or a better service is delivered using less of

everything required (i.e. human, financial, technological, and physical resources). Lean is about being flexible enough to get the right things, to the right place, at the right time, in the right amounts. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Lean is focused on elimination of all wastes, and continual improvement of products and processes. Six Sigma is a statistically based approach

that targets the defect rate at 3.4 per million or less. Key elements of Six Sigma include the DMAIC roadmap and an infrastructure of Green Belts, Black Belts, Master Black Belts, and Champions. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma Like other approaches, Six Sigma aims for quality improvement, but goes further to tie these quality improvement initiatives to the financial elements of the organization.

The Lean Six Sigma approach is not a low calorie variation of Six Sigma, but a linking of JIT/Lean and Six Sigma that synergistically combine the benefits of both. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Nineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six Sigma The Theory of Constraints (TOC) and Integrated TOC, Lean, Six Sigma (iTLS) approach. focuses on the few critical elements that limit performance of the organization by applying Theory of

Constraints tools, eliminates waste with application of Lean tools, and reduces variability to ensure process performance and stability with Six Sigma tools. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty: Benchmarking MAJOR TOPICS

Benchmarking Defined Benchmarking versus Reengineering Rationale for Benchmarking Prerequisites to Benchmarking Obstacles to Successful Benchmarking Role of Management in Benchmarking Benchmarking Approach and Process Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty: Benchmarking Benchmarking is a process for

comparing an organizations operations or processes with those of a best-inclass performer. The objective of benchmarking is major performance improvement for an inferior process Benchmarking focuses on processes and practices, not products. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty: Benchmarking Benchmarking is done between consenting organizations. Benchmarking partners are frequently from different industries.

Benchmarking is a component of total quality. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty: Benchmarking When continual incremental improvement of a process isnt enough, benchmarking may be the best route to the needed improvement. Benchmarking offers the best chance for success, but if benchmarking is not possible, process reengineering might be considered.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty: Benchmarking The rationale for benchmarking is that it makes no sense to stay locked in an isolated laboratory trying to invent a new process when that process already exists. Prerequisites to benchmarking include: Will and commitment by top management. Alignment with vision and strategic objectives. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty: Benchmarking Openness to new ideas. Knowing which processes are the important ones, and understanding them. Processes documented. Obstacles to successful benchmarking include: Lacking needed skills (analysis, research, communication). Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty: Benchmarking The benchmarking approach and process includes the following: Obtaining commitment of top management. Baselining your processes (Flowcharting). Identifying your weak processes and documenting them. Selecting the processes to be benchmarked. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc.

All Rights Reserved Twenty: Benchmarking Forming the benchmarking teams. Researching the best-in-class. Selecting candidates for best-in-class partnering. Forming benchmarking agreements with partners. Collecting the process data/information. Analyzing the data and establishing the performance gap. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

Twenty: Benchmarking Planning action to close the gap or surpass. Implementing the change(s) to the process. Monitoring the results. Updating the benchmarks, and continuing the cycle. Benchmarking teams must include those who operate the processes. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty: Benchmarking

Benchmarking is not restricted within industry boundaries, but only to best-inclass processes. It is necessary for the benchmarker to understand its own process before comparing it with another. Because best-in-class is dynamic, benchmarking should be seen as a never-ending process. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty: Benchmarking Management has a key role in the benchmarking process, including commitment to change, making funds

available, authorizing human resources, being actively involved, and determining the appropriate level of disclosure. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty One: Just-in-Time/Lean Manufacturing (JIT/Lean) MAJOR TOPICS What Do We Call It? Just-in-Time/Lean Defined Rationale for JIT/Lean Development of JIT/Lean

Relationship of JIT/Lean to Total Quality and World-Class Manufacturing Benefits of JIT/Lean Requirements of JIT/Lean Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty One: Just-in-Time/Lean Manufacturing (JIT/Lean)

Automation and JIT/Lean JIT/Lean is a management philosophy that seeks to eliminate all forms of waste. As a production system, JIT/Lean produces only what is needed, when it is needed, in the quantity needed. The root justification for JIT/Lean is improved product quality with lower costs. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty One: Just-in-Time/Lean Manufacturing (JIT/Lean)

JIT/Lean began as a means of reducing the seven wastes. JIT/Lean is a pull system whose small lot production is supported by reduced setup times. Total productive maintenance and statistical process control were integrated to provide the necessary production reliability and predictability. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty One: Just-in-Time/Lean Manufacturing (JIT/Lean) Continual improvement provides the

vehicle for the relentless attack on all wastes and improvement of product quality. JIT/Lean is at its best as a part of a total quality system. Results can be severely restricted when JIT/Lean is operated without the total quality umbrella. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty One: Just-in-Time/Lean Manufacturing (JIT/Lean) Inventory reduction, shortened cycle time, continual improvement of

processes and products, and elimination of wastes are all inherent benefits of JIT/Lean. JIT/Lean has a different set of requirements from traditional production systems: New skills training Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty One: Just-in-Time/Lean Manufacturing (JIT/Lean) Rationalizing production flow for the pull system Empowering operators to take advantage

of JIT/Leans visibility features Guarding against bottleneck vulnerability through TPM Process capability study, SPC, and continual improvement Small lot sizes and short setup times Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty One: Just-in-Time/Lean Manufacturing (JIT/Lean) Close working relationships with superior suppliers Although JIT/Lean is compatible with

automation, some of the worlds best plants use JIT/Lean with very little automation. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty One: Just-in-Time/Lean Manufacturing (JIT/Lean) World-class manufacturing employs JIT/ Lean as an integral part of a total quality system, producing the highest quality products at competitive prices. It is not related to the presence or absence of automation.

Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management MAJOR TOPICS COVERED Rationale for Change

Requirements for Implementation Role of Top Management: Leadership Role of Middle Management Viewpoints of Those Involved Implementation Variation Among Organizations Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management Implementation Approaches to Be Avoided An Implementation Approach that Works Getting On With It

What to Do in the Absence of Commitment from the Top Implementation Strategies: ISO 9000 and Baldrige Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management The traditional way of doing business presents the following problems: We are bound to a short-term focus. Tends to be arrogant rather than customerfocused. We seriously underestimate the potential

contribution of our employees, particularly those in hands-on functions. The traditional approach equates better quality with higher cost. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management The traditional approach is short on leadership and long on bossmanship. The requirements for implementation are as follows: Commitment by top management

Creation of an organization-wide steering committee Planning and publicizing Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management Establishing an infrastructure that supports deployment and continual improvement The role of top management can be summarized as providing leadership

and resources. The role of middle management is facilitation. Implementation approaches that should be avoided are as follows: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management Dont train all employees at once. Dont rush into total quality by putting too many people in too many teams too soon. Dont delegate implementation Dont start an implementation before

you are prepared. Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management Although implementation must vary with each organization, the 20 fundamental steps must be followed, generally in the order given. Tailoring to the organizations specific culture, values, strengths, and weaknesses is done in the planning phase, steps 12 through 16.

Implementation phases are as follows: Quality Management, Eighth Edition Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management Preparation phase Planning phase Execution phase Going through the ISO 9000 registration steps will give an organization a good start on implementing total quality. Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management ISO 9000 is an international standard for providers of goods and services that sets broad requirements for the assurance of quality and for managements involvement. The Malcolm Baldrige National Quality Award evaluates candidates for the award according to criteria in several categories as follows: Leadership Quality Management, Eighth Edition

Dr. David L. Goetsch Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved Twenty Two: Implementing Total Quality Management Strategic planning Customer focus Measurement, analysis, and knowledge management Workforce focus Operation focus Results Quality Management, Eighth Edition Dr. David L. Goetsch

Copyright 2016, 2013, 2008 by Pearson Education, Inc. All Rights Reserved

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