Presentation 01 - Introduction To Quality

3/4/2011
BUS 592‐
BUS 592‐ Dr.
Dr. Abdelghani
Abdelghani
An introduction to
Quality Theory
Re‐engineering and TQM
Approaches to Organizational Change told as a
"Tale of Three Villages"
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Tale of Three Villages
 The chiefs of three villages each set out to

build a bridge across a wide chasm. If they
could build this bridge, the trade that came
would enrich the lives of villagers for
generations to come.
 The first chief told his workers, "Go forth and work. Do
whatever is necessary to build that bridge.
bridge."
 The villagers established a frenzied pace, for this chief
abused those workers who did not follow his commands.
 The first chief boasted to the other two leaders about the
speed of his construction. Unfortunately, because no one
coordinated these worker's efforts, the bridge was a
haphazard collection of nails and boards.boards It soon
collapsed.
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 The second chief was watching this mess and decided to

llearn from
f the
h first
fi chief's
hi f' mistakes.
i k SheSh organized
i d her
h
workers into teams, and gave them a plan to build a
bridge.
 At first, these workers had success, and built the bridge
straight as an arrow far over the chasm. She boasted to
the two other chiefs about the accomplishments of her
workers.
k
 Unfortunately, the next major storm destroyed the
bridge for the chief did not know how to build structural
supports. Her workers became discouraged and
abandoned their efforts.
 The third chief was watching their efforts and decided to
llearn from the other chiefs' mistakes.
f h h hi f ' i k
 He sent his workers to the other villages to learn what
they had done, and what they hadn't done.
 His workers then developed a plan. In their first step,
they did not build the bridge at all, but focused on
creating the support columns they would need.
 When they completed this task, they rapidly finished
the bridge.
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Lessons learned !
 Many organizations are like the first village in
implementing Total Quality Management
(TQM). They start with vague directives with
little clarity on what to do. Their successes are
sporadic and likely to fail.
Lessons learned !
 Other organizations are like the second village, and
become victims of their own success. Their initial quality
b i i f h i Th i i i i l li
improvement teams may be so successful they rapidly
create more teams, without the qualitative organization‐
wide changes necessary to sustain a permanent effort.
 Some of these changes are obvious, in that companies
must facilitate, recognize and encourage these teams.
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Talking about
quality……..
Quality definition
 “Quality”: An elusive term
 “Quality”: Perceived relative value
 “Quality”: A multi‐dimensional concept
10
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Quality as “perceived value”
High
Are you an Great

Relative Price
idiot? Value
Run of the
mill
Value
You get Deall off
D
what the
you pay for Century
Low
Inferior Relative Quality Superior
11
Quality Gurus
 W. Edwards Deming
 Joseph M. Juran
 Philip B. Crosby
 Armen Fiegenbaum
 W. A. Shewhart
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W. Edwards Deming
 Continuous improvement
 The 14 principles
 Emphasis on “prevention”
 Emphasis on “variation”
 Emphasis on statistical‐based analysis
 Emphasis on improving the system
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Joseph M. Juran
 Quality Control Handbook
 Emphasis on management
 Trilogy of quality
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Philip B. Crosby
 Zero defect
 “Quality is Free” and “Quality is Still Free” are
his two famous books.
 Defines “quality” as “conformance”
15
Quality Programs (or buzzwords?!!)
16
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3/4/2011
INSTITUTING BEST PRACTICES &
CONTINUOUS IMPROVEMENT
 Searching out & adopting “best practices” is
integral to effective implementation
 Benchmarking has spawned new approaches
to improving strategy execution
 Reengineering
 Continuous improvement programs
 Total quality management ‐ TQM
INSTITUTING BEST PRACTICES &
CONTINUOUS IMPROVEMENT
 Quality improvement programs are tools for
implementing strategies keyed to
l k d
 Defect‐free manufacture
 Superior product quality
 Superior customer service
 Total customer satisfaction
 Identifying & implementing best practices
Id tif i & i l ti b t ti
is a journey, not a destination; it’s an
exercise in doing things in a world‐class
manner!
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3/4/2011
WHAT IS TOTAL QUALITY MANAGEMENT ‐
TQM?
 Creating a TOTAL QUALITY CULTURE bent
on CONTINUOUSLY IMPROVING the
performance of every task and value‐chain
activity!
Business Process Reengineering
“To succeed at reengineering, you have to have
a visionary, a motivator, and a leg breaker”
Michael Hammer
Reengineering the Corporation: A Manifesto for
Business Revolution
20
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3/4/2011
Process Redesign (reengineering) [BPR]
 The fundamental rethinking of business
processes to bring about dramatic
improvements in performance
 Relies on reevaluating the purpose of the
process and questioning both the purpose and
the underlying assumptions
 Requires reexamination of the basic process
and its objectives
 Focuses on activities that cross functional lines
 Any process is a candidate for redesign
BPR
Does the reengineering consultant see the
glass as half full or half empty?
Neither!
It’s the wrong size of glass!
22
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3/4/2011
Steps in BPR
 State a case for action
 Identify the process for re‐engineering
 Evaluate the enablers (Information technology, Human resources,
Organizational structure)
 Understand the current process
 Create a new process design
 Implement the new re‐engineered process
p g p
 Start all over
23
IMPLEMENTING A CONTINUOUS
IMPROVEMENT PHILOSOPHY
 Instill enthusiasm & commitment to doing
things right from top to bottom of firm
h h f b ff
 Strive to achieve little steps forward each
day: Kaizen
 Ignite employee efforts to be creative in
improving performance of value‐chain
activities
ti iti
 Preach there is no such thing as good enough
& everyone must be involved
 Reform the corporate culture
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3/4/2011
BEST PRACTICE PROGRAMS
 Aim at
 Improved efficiency
 Reduced costs
 Better product quality
 Greater customer satisfaction
 Involves benchmarking against companies
regarded as
 “Best in industry” or
 “Best in world
REENGINEERING & TQM
 Reengineering vs. TQM programs
 REENGINEERING seeks one‐time quantum gains
on order of 30 to 50% or more
 TQM seeks ongoing incremental improvement
 Reengineering & TQM are not mutually
exclusive
 First, reengineering is used to produce a good
Fi t i i i d t d d
basic design yielding dramatic improvements
 Then, TQM is used to perfect process, gradually
improving efficiency
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3/4/2011
Let s define the quality
Let’s define the quality
Differing Perspectives on Quality
O
Overview
e e
 What is Quality?
 Differing Functional Perspectives on Quality
 The Three Spheres of Quality
 Other Perspectives on Quality
 Arriving at a Common Perspective
1 ‐ 28 1 - 28
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3/4/2011
What is Quality?
Project Quality Dimensions
 Performance  Durability
 Features  Serviceability
 Reliability  Aesthetics
 Conformance  Perceived Quality
©
1 ‐ 29 1 - 29
What is Quality?
Performance Efficiency with

Feature which a product
Reliability
achieves its
intended purpose
Conformance
1 ‐ 30 1 - 30
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3/4/2011
What is Quality
Performance  Attributes that
Features supplement the
Reliability
product’s basic
performance
Conformance
1 ‐ 31 1 - 31
What is Quality
Performance Perform
Features consistently over the
Reliability
product’s useful life.
Conformance
1 ‐ 32 1 - 32
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3/4/2011
What is Quality
Performance Adherence to
Features quantifiable
Reliability
specifications
Conformance
1 ‐ 33 1 - 33
What is Quality
 Tolerate stress or Durability
trauma without  Serviceability
failing  Aesthetics
 Perceived Quality
1 ‐ 34 1 - 34
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3/4/2011
What is Quality
 A product is Durability
serviceable if it can  Serviceability
be repaired easily  Aesthetics
and cheaply
1 ‐ 35 1 - 35
What is Quality
 Subjective Durability
characteristics such  Serviceability
as taste, feel, sound,  Aesthetics
look.
1 ‐ 36 1 - 36
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3/4/2011
What is Quality
 Quality as the Durability
customer perceives  Serviceability
it…image,  Aesthetics
recognition, word of
mouth.
1 ‐ 37 1 - 37
What is Quality
Service Quality Dimensions
 Tangibles
 Service Reliability
 Responsiveness
 Assurance
 Empathy
1 ‐ 38 1 - 38
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3/4/2011
What is Quality
 Tangibles Physical appearance
 Service Reliability of the facility,
 Responsiveness
equipment, personnel
and compunctions
 Assurance
equipment
 Empathy
1 ‐ 39 1 - 39
What is Quality
Tangibles The ability of the
 Service Reliability service provider to
 Responsiveness
perform the promised
service
 Assurance
 Empathy
1 ‐ 40 1 - 40
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3/4/2011
What is Quality
 Tangibles The willingness of
 Service Reliability the provider to be
 Responsiveness
helpful and prompt in
providing service
 Assurance
 Empathy
1 ‐ 41 1 - 41
What is Quality
Tangibles The knowledge and
 Service Reliability courtesy of the
 Responsiveness
employees and their
ability to inspire trust
 Assurance
and confidence
 Empathy
1 ‐ 42 1 - 42
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3/4/2011
What is Quality
Tangibles Caring
 Service Reliability individualized
 Responsiveness
attention from the
service company
 Assurance
 Empathy
1 ‐ 43 1 - 43
What is Quality?
Why does it matter that different definitions of
quality exist?
1 ‐ 44 1 - 44
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3/4/2011
What is Quality?
Differing Functional Perspectives on Q
Functional Perspectives include:
 Engineering
 Supply Chain
 Operations
 Strategic Management
 Marketing
M k ti
 Financial
 Human resource
1 ‐ 45 1 - 45
What is Quality?
Differing Functional Perspectives
on Quality
Engineering
g g
Applying mathematical problem‐solving skills and
modeling techniques
 Operations Research
 Product Design Engineering
 Concurrent Engineering
1 ‐ 46 1 - 46
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3/4/2011
What is Quality?
Differing Functional Perspectives on
Quality
Operations
Perspective
 Uses the Systems
View that
underlies modern
Quality
management
thinking
1 ‐
1 - 47 47
What is Quality?
on Quality
Strategic Management
g g
 For Quality Management to be pervasive in a firm
it needed to be included in all of the firm’s business
processes including strategic Planning
1 ‐ 48 1 - 48
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3/4/2011
What is Quality?
on Quality
Financial
 Deming: Quality Improvement is linked to reduction
of defects and improved organizational performance
1 ‐ 49 1 - 49
What is Quality?
on Quality
Financial
 Deming: Quality Improvement is linked to reduction of
defects and improved organizational performance
 Juran: Quality related costs can result in lost sales
because of a poor reputation for reliability
1 ‐ 50 1 - 50
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3/4/2011
What is Quality?
on Quality
 Human Resources
 It is impossible to implement quality without the
commitment and action of the employees
1 ‐ 51 1 - 51
What is Quality?
on Quality
 Marketing
M k ti
 Marketers focus on perceived quality or quality as
the customer views it.
1 ‐ 52 1 - 52
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3/4/2011
What is Quality?
`
 Other Perspectives on Quality:
p y
 Value‐Added Perspective on Quality
 Cultural Perspective on Quality
1 ‐ 53 1 - 53
What is Quality?
What is Quality?
y
The Three Spheres of Quality
Quality
Management
Quality Quality
Assurance Control
1 ‐ 54 1 - 54
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3/4/2011
What is Quality?
`
 There are different perspectives on quality
p p q y
 There is disagreement on the definition of quality
 Quality control, quality assurance and quality
management focus on different aspects of quality
 Quality improvement requires a complex mix of factors
1 ‐ 55 1 - 55
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3/4/2011

 The chiefs of three villages each set out to

 The second chief was watching this mess and decided to

Are you an Great

Performance Efficiency with

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