McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.

2.0 Quality Experts

McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.
LEARNING OBJECTIVES:
After studying this topic, you should be able to:
1. know the founding fathers quality
management ;
2. identify the area of focus of each founding
father; and
3. be able to understand the similarities and
differences in their philosophies.
2.0 Quality Experts (Gurus & Scholars)
McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.
GURUS ON QUALITY
Slide 1-4
2.1 W. Edwards Deming (1900-1993)
Statistician, professor, author, lecturer and consultant
He is perhaps best known for his work in Japan.
Significant contribution to Japan's later reputation for innovative high-
quality products and its economic power.
Some of his contributions to quality :
a. 1960 - the Prime Minister of Japan (Nobusuke Kishi), acting on behalf
of Emperor Hirohito in 1960, awarded Dr. Deming Japans
Order of the Sacred Treasure, Second Class. The citation on the medal
recognizes Deming's contributions to Japans industrial rebirth and its
worldwide success.
b. 1950 - assistant to the Supreme Commander of the Allied Powers
c. instructor in sample survey methods in government statistics.
d. an exhibit memorializing Dr. Deming's contributions and his famous
Red Bead Experiment is on display outside the board room of the
American Society for Quality.
Slide 1-5
2.1 W. Edwards Deming (1900-1993)
He is also widely known for the :
a. System of Profound Knowledge
b. Deming Cycle.
c. Fourteen Points
d. Seven Deadly Diseases
Continue
Slide 1-6
2.1 W. Edwards Deming (1900-1993)
All managers need to have a System of Profound
Knowledge consists of 4 parts :
a. Appreciation of a system: understanding the overall
processes involving suppliers, producers, and customers
(or recipients) of goods and services.
b. Knowledge of variation: the range and causes of variation
in quality, and use of statistical sampling in measurements.
c. Theory of knowledge: the concepts explaining knowledge
and the limits of what can be known.
d. Knowledge of psychology: concepts of human nature.
Continue
Slide 1-7
2.1 W. Edwards Deming (1900-1993)
Deming Cycle (PDCA):
Conduct consumer research and use it in planning
the product (Plan)
Produce the product (Do)
Check the product to make sure it was produced in
accordance with the plan. (Check)
Market the product (Act)
Analyze how the product is received in the
marketplace in terms of quality, cost and other
criteria (Analyze)
Continue
Slide 1-8
8
The Deming Cycle
Plan
Do Check
Act
Customer
Satisfaction
2.1 W. Edwards Deming (1900-1993)
Slide 1-9
2.1 W. Edwards Deming (1900-1993)
Deming 14 points :
1. Create a Statement of Purpose.
2. Learn the New Philosophy.
3. Understand Inspection.
4. End Price Tag Decisions.
5. Improve Constantly.
6. Institute Training.
7. Teach and Institute Leadership.
8. Drive Out Fear and Innovate.
9. Optimize the Efforts of Teams and Staff.
10. Eliminate Exhortations.
11. Eliminate Quotas and MBO; Institute Improvement; and Understand
Processes.
12. Remove Barriers.
13. Encourage Education.
14. Take Action
Continue
Slide 1-10
2.1 W. Edwards Deming (1900-1993)
The Seven Deadly Diseases :
Lack of constancy of purpose to plan products and services that have
a market sufficient to keep the company in business and provide jobs.
Emphasis on short-term profits; short-term thinking that is driven by a
fear of unfriendly takeover attempts and pressure from the bankers and
shareholders to produce dividends.
Personnel review systems for managers and management by
objectives without providing methods or resources to accomplish
objectives for eg. performance evaluations, merit ratings, and annual
appraisals.
Job hopping by managers.
Using only visible data and information in decision making with little or
no consideration given to what is not known or cannot be known.
Excessive medical costs.
Excessive costs of liability driven up by lawyers that work on contingency
fees.
Continue
Slide 1-11
Evangelist for Q and Q Management
Statistician, professor, author, lecturer and consultant
Similar to Deming, he made an impact in Japan before his ideas
were accepted in the West.
Some of his contributions to quality :
a. Pareto Principle
b. Management Theory
c. Jurans Trilogy
d. Transferring quality knowledge between east and west.
e. Consultants for several US, Western-European and Japanese
companies.
f. Founding of Juran institute.
2.2 Joseph Juran (1904-2008)
Slide 1-12
Juran's famous Quality Trilogy, like most trilogies
these days, consists of three parts:
1. quality planning - the process for preparing to
meet quality goals;
2. quality control - the process for meeting quality
goals during operations; and
3. quality improvement - the process for breaking
through to unprecedented levels of performance.
2.2 Joseph Juran (1904-2008)
Continue
Slide 1-13
Quality is free . . .
Quality is free. Its not a gift, but it is free. What
costs money are the unquality things that is all
the actions that involve not doing jobs right the
first time.
2.3 Philip Crosby (1906 2001)
Slide 1-14
Philosopher and pragmatic practioner of Q
Management.
international ambassador extending the
influence of quality thinking to the furthest
parts of the globe.
a writer and communicator who plainly spoke
his message of Q and reached a broad
audience because of his clear and
pragmatic writing style.
2.3 Philip Crosby (1906 2001)
Continue
Slide 1-15
Crosby's 4 (FOUR) Absolutes of Quality
Management are:
1. Quality means conformance to requirements, not
goodness.
2. Quality is achieved by prevention, not inspection.
3. Quality has a performance standard of Zero Defects, not
acceptable quality levels.
4. Quality is measured by non conformance, not indexes.
Crosby's Basic Elements of Improvement include :
1. determination
2. education
3. implementation.
2.3 Philip Crosby (1906 2001)
Continue
Slide 1-16
Some of his most important books include:
1. Cutting the Cost of Quality, 1967
2. Quality Is Free: The Art of Making Quality Certain, 1979
3. Quality Without Tears: The Art of Hassle-Free Management,
1984
4. Running Things: The Art of Making Things Happen, 1986
5. The Eternally Successful Organization, 1988
6. Lets Talk Quality, 1989
7. Leading: The Art of Becoming an Executive, 1990
8. Completeness: Quality for the 21st Century, 1992
9. Reflections on Quality, 1995
10. Quality Is Still Free, 1996
11. The Absolutes of Leadership, 1997
12. Quality and Me: Lessons of an Evolving Life, 1999
2.3 Philip Crosby (1906 2001)
Continue
Slide 1-17
American quality control expert and businessman.
He devised the concept of Total Q Control
later known as Total Quality Management
(TQM).
"Total quality control is an effective system for
integrating the quality development, quality
maintenance, and quality improvement efforts of the
various groups in an organization so as to enable
production and service at the most economical levels
which allow full customer satisfaction."
2.4 Armand V. Feigenbaum (1922 )
Slide 1-18
Contributions to Q :
1. his international promotion of the quality ethic,
2. his development of the concept of total quality control
3. his development of the quality cost classification.
4. He also mentioned the THREE (3) steps to quality ;
a. Quality Leadership, with a strong focus on planning.
b. Modern Quality Technology, involving the entire work
force.
c. Organizational Commitment, supported by continuous
training and motivation.
Wrote several books and served as President of the American
Society for Quality (1961-1963). One of his latest books (2009) is
about The power of management innovation : 24 keys for
sustaining and accelerating business growth and profitability.
Quality must be actively managed and have visibility at the highest
levels of management.
2.4 Armand V. Feigenbaum (1922 )
Continue
Slide 1-19
Some of the awards and recognitions received are :
1. First recipient of ASQ's Lancaster Award.
2. ASQ 1965 Edwards Medal in recognition of "his
origination and implementation of basic
foundations for modern quality control".
3. National Security Industrial Association Award of Merit.
4. Member of the Advisory Group of the U.S. Army.
5. Chairman of a system-wide evaluation of quality
assurance activities of the Army Materiel Command.
2.4 Armand V. Feigenbaum (1922 )
Continue
Slide 1-20
A Japanese university professor and influential
quality management innovator best known in
North America for the Ishikawa or cause and effect
diagram (also known as fishbone diagram) that is
used in the analysis of industrial process.
Ishikawa defines quality as follows :
1. Quality and customer are the same thing.
2. Quality is a broad concept that goes beyond just
product quality to also include the quality of people,
processes, and every other aspect of the organization.
2.5 Kaoru Ishikawa (1915 - 1989)
Slide 1-21
His contributions to quality are :
1. User Friendly Quality Control .
2. Fishbone Cause and Effect Diagram -
Ishikawa diagram.
3. Implementation of Quality Circles.
4. Emphasised the Internal customer.
5. Shared Vision
2.5 Kaoru Ishikawa (1915 - 1989)
Continue
Slide 1-22
Some of the awards and recognitions received :
1. 1972 American Society for Quality's Eugene L.
Grant Award.
2. 1977 Blue Ribbon Medal by the Japanese
Government for achievements in industrial
standardization.
3. 1988 Walter A. Shewhart Medal.
4. 1988 Awarded the Order of the Sacred Treasures,
Second Class, by the Japanese government.
2.5 Kaoru Ishikawa (1915 - 1989)
Continue
Slide 1-23
At Ishikawa's 1989 death, Juran delivered this
eulogy :
There is so much to be learned by studying how Dr. Ishikawa
managed to accomplish so much during a single lifetime. In my
observation, he did so by applying his natural gifts in an
exemplary way. He was dedicated to serving society rather than
serving himself. His manner was modest, and this elicited the
cooperation of others. He followed his own teachings by
securing facts and subjecting them to rigorous analysis. He was
completely sincere, and as a result was trusted completely.
2.5 Kaoru Ishikawa (1915 - 1989)
Continue
Slide 1-24
Engineer , Statistician
1950s onwards, Taguchi developed a methodology for
applying statistics to improve the quality of
manufactured goods.
Controversial with Western conventional
Statisticians but many others accepted as
knowledge.
Measured quality as the variation from the target
value of a design specification, and then
translated that variation into an economic "loss
function" that expresses the cost of variation in
monetary terms.
2.5 Genichi Taguchi (1924 )
Slide 1-25
His Contributions to quality are :
1. Taguchi Loss Function, used to measure financial loss
to society resulting from poor quality.
2. The philosophy of off-line quality control, designing
products and processes so that they are insensitive
(robust) to parameters outside the design engineers
control.
3. Innovations in the statistical design of experiments,
notably the use of an outer array for factors that are
uncontrollable in real life, but are systematically varied
in the experiment.
2.5 Genichi Taguchi (1924 )
Slide 1-26
Some of the awards and recognitions received :
1. Honorary member of the Japanese Society of
Q Control and of the American Society for Q.
2. Shewhart Medal of the American Society for Q
(1995).
3. Honoured as a Quality Guru by the British
Department of Trade and Industry (1990).
2.5 Genichi Taguchi (1924)
Continue
McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.
SCHOLARS ON
SERVICE QUALITY
Slide 1-28
He is a leading scholar developing the areas
of relationship marketing and customer
relationship management.
He is also one of the scholars pioneering
modern service marketing and the service
logic and one of the earliest proponents of
the term service management to describe
market-oriented management based on a
service logic in service and manufacturing
firms.
2.7 Christian Gronroos
Slide 1-29
He authored numerous books and articles on service
quality. Some of them are :
1. Management e markting dei servizi. La gestione del cliente
nel mercato dei servizi. In `Italien. Torino: isedi, 2009.
2. Marketing gerenciamento e servicos. In Portuguese. 3rd
edition. Rio de Janeiro: Elsevier Editora Ltda, 2009.
3. Palvelujen johtaminen ja markkinointi (Service management
and marketing). In Finnish. 3rd edition. Espoo: WSOYpro,
2009.
4. Service management och marknadsfring (Service
management and marketing). In Swedish. 3rd edition.
Malm, Sweden: Liber, 2008.
5. F w guanli yu yngxiao. Jiyu guke qunxi guanli celue
(Service management and marketing.Customer management
in service competition). In Chinese. 3rd edition. Beijing:
Publishing House of Electronics Industry, 2008.
2.7 Christian Gronroos
Continue
Slide 1-30
His Scholarly articles :
1. Value Co-creation in Service Logic. A Critical Analysis.
Marketing Theory, Vol. 11 (forthcoming 2011).
2. A service perspective in business relationships: The value
creation and marketing interface. Industrial Marketing
Management, Vol. 40, (forthcoming 2011).
3. Service as business logic: implications for value creation and
marketing (together with Annika Ravald). Journal of Service
Management, Vol. 22, No. 2 (forthcoming2011).
4. Adopting a service logic in manufacturing. Conceptual
foundation and metrics for mutual value creation (together
with Pekka Helle). Journal of Service Management, Vol. 21,
No. 5, 2010, pp. 564-590.
2.7 Christian Gronroos
Continue
Slide 1-31
His Scholarly articles :
5. Service Logic Revisited: Who Creates Value? And Who Co-
creates? European Business Review, Vol. 20, No. 4, 2008, pp.
298-314.
6. Service Productivity: Toward a Conceptualization of the
Transformation of Inputs into Economic Results in Services
(together with Katri Ojasalo). Journal of Business Research, Vol.
57, No. 4, 2004, pp. 414-423.
7. Taking a customer focus back into the boardroom: can
relationship marketing do it?. Journal of Marketing Theory, Vol.
3, No. 1, 2003, pp. 171-173.
8. The Perceived Service Quality Concept A Mistake. Managing
Service Quality, Vol. 11, No. 3, 2001, pp. 150-152.
2.7 Christian Gronroos
Continue
Slide 1-32
An Indian professor of Marketing at the
University of Miami and has published numerous
articles.
He authored several books and articles. Some
selected ones are :
1. Technoready Marketing: How and Why Your Customers
Adopt Technology, The Free Press (coauthor with Colby).
2. Marketing Services: Competing Through Quality, The
Free Press (co author with Berry).
3. Delivering Quality ServiceBalancing Customer
Perceptions and Expectations, The Free Press (co author
with Zeithaml and Berry).
Continue
2.8 A. Parasuraman
Slide 1-33
His area of interests and specialties are :
1. defining, measuring and leveraging service quality
2. role of technology in service delivery.
3. strategies for effectively marketing technology-based
products and services.
4. services marketing.
5. service quality measurement and improvement
technologys role in marketing to and serving customers.
Continue
2.8 A. Parasuraman
Slide 1-34
Continue
2.9 Valarie A. Zeithaml
An American who is internationally
recognized pioneer of services marketing.
Her research interest areas are :
a. Customer Equity
b. Service Quality
c. Services Marketing
d. Consumer Perceptions of Price and
Quality
Slide 1-35
Continue
2.9 Valarie A. Zeithaml
Her contributions to quality are :
1. Devoted the last 20 years to researching,
consulting and teaching service quality, services
management and customer equity.
2. Consulted with service and product companies,
including IBM, Kaiser Permanente, GE,
Caterpillar, John Hancock Financial Services,
Aetna, AT&T, Sears, Metropolitan Life Insurance,
Bank of America, Chase Manhattan Bank, Allstate,
BellSouth, and Procter and Gamble.
Slide 1-36
Continue
2.9 Valarie A. Zeithaml
Some of the awards and recognitions received :
1. 2009 AMA Irwin/McGraw-Hill Distinguished Marketing
Educator Award.
2. 2008 Paul Converse Award.
3. Research awards from most marketing journals she
has researched customer expectations in more than 40
industries.
4. Zeithaml and her co-authors also won the prestigious,
inaugural Berry-American Marketing Association Book
Prize for their book, Driving Customer Equity: How
Customer Lifetime Value is Reshaping Corporate
Strategy.
5. She also co-authored the best-selling Delivering Quality
Service: Balancing Customer Perceptions and
Expectations and the textbook, Services Marketing.
Slide 1-37
Continue
2.9 Leornard L. Berry
Distinguished Professor of Marketing.
He is also Professor of Humanities in Medicine
in the College of Medicine at The Texas A&M
University System Health Science Center.
During the 2001-2002 academic term he served
as a Visiting Scientist at Mayo Clinic studying
healthcare service.
Dr. Berry has been identified as the most
frequent contributor to the English-language
services marketing literature in the world.
Slide 1-38
Continue
2.9 Leornard L. Berry
Some of the awards and recognitions received
are :
1. 2007, Winner of the Best Paper Award for article published in
Business Horizons in 2007, Building a Strong Services
Brand:
2. Lessons from Mayo Clinic, Business Horizons, May-June
2007 (with Kent D. Seltman).
3. 2003, American Marketing Association SERVSIG Best
Services Marketing Article Award for 2002, Understanding
Service Convenience, Journal of Marketing, July 2002 (with
K. Seiders and D. Grewal).
4. 2002, Selected as the namesake for a new annual
community award for customer service. The award is called
the Leonard L. Berry Customer Service Excellence Award.
Slide 1-39
Continue
2.9 Leornard L. Berry
Some of the awards and recognitions received are :
5. 1999, Appointed Distinguished Professor of Marketing, Texas
A&M University.
6. 1997, American Marketing Association SERVSIG Best
Services Marketing Article Award for 1996, The Behavioral
Consequences of Service Quality, Journal of Marketing, April
1996 (with Valarie Zeithaml and A. Parasuraman).
7. 1996, Association of Former Students Distinguished
Achievement Award in Research, Texas A&M University.
8. 1996, American Marketing Association SERVSIG Services
Marketing Career Contributions Award.
Slide 1-40
Continue
2.9 Leornard L. Berry
His contributions to quality are :
a. authored and published numerous books, articles and
proceedings in his area of interests which are :
- Healthcare Services Marketing
- Service Marketing
- Service Quality
- Retailing
- Service Management
b. A member of the board of directors of several major public
companies and national not-for-profit organizations.
c. Some of his great books are Management Lessons
from Mayo Clinic, Discovering the Soul of Service, On
Great Service, Marketing Services: Competing Through
Quality, and Delivering Quality Service.
McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.
End of Topic 2.0
McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.