Quality & Performance Excellence Chapter 3 Book Summary 8thEd Evans

Quality & Performance Excellence Chapter 3-Book Summary-8thEd-Evans. Quality & Performance Excellence-Book Summary-8th Edition-James R Evans. Chapter 3: Tools and Techniques for Quality Design and Control.

Chapter 3: Tools and Techniques for Quality Design and Control

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Outline:

  • Process Management: AT&T Process Management Principles:
  • Designing Quality Goods and Services: CDDD
  • Quality Function Deployment (QFD): (Yoji Akao-1970)
  • Building the House of Quality: (or QFD)
  • DFMEA:
  • Design for Manufacturability:
  • Design and Environmental Responsibility:
  • Design for Services:
  • Key Service Dimensions
  • Designing Quality Processes :
  • Design for Agility:
  • Poka-Yoke:
  • Two Levels of Mistake-Proofing:
  • Service Errors:
  • Control: Components of Control Systems:
  • Problems Caused by Variation:
  • Statistical Process Control (SPC):
  • Process Control in Action
Process Management:

Process management is the key activities necessary to achieve a high level of performance in key-value creation and support processes, identifying opportunities for improving quality and operational performance, and, ultimately, customer satisfaction

  1. Design
  2. Control
  3. Improvement
AT&T Process Management Principles:
  • Process quality improvement focuses on the end-to-end process.
  • The mind-set of quality is one of prevention and continuous improvement.
  • Every one manages a process at some level and is simultaneously a customer and a supplier.
  • Customer needs to drive process quality improvement.
  • Corrective action focuses on removing the root cause of the problem rather than on treating its symptoms.
  • Process simplification reduces opportunities for errors and rework.
  • Process quality improvement results from a disciplined and structured application of quality management principles.
Designing Quality Goods and Services:
  • Concept development, in which product functionality is determined based upon customer requirements, technological capabilities, and economic realities.
  • Design development, which focuses on product and process performance issues necessary to fulfill the product and service requirements in manufacturing or delivery.
  • Design optimization, which seeks to minimize the impact of variation in production and use, creating a “robust” design.
  • Design verification, which ensures that the capability of the production system meets the appropriate level of performance.
Concept Development and Innovation:
  • Concept development is the process of applying scientific, engineering, and business to produce a basic functional design that meets both customer’s needs and manufacturing or service delivery requirements.
  • Creativity is seeing things in new or novel ways.
  • Innovation involves the adoption of an idea, process, technology, product, or business model that is either new or new to its proposed application.

Quality Function Deployment (QFD): (Yoji Akao-1970) a process of translating customer requirements into technical requirements during product development and production. QFD benefits companies through improved communication and teamwork between all constituencies in the value chain, such as between marketing and design, between design and manufacturing, and between purchasing and suppliers.

Building the House of Quality: (or QFD)
  • Identify customer requirements.
  • Identify technical requirements.
  • Relate the customer requirements to the technical requirements.
  • Conduct an evaluation of competing products or services.
  • Evaluate technical requirements and development targets.
  • Determine which technical requirements to deploy in the remainder of the production/delivery process.

Quality & Performance Excellence Chapter 3 house of qulity

Figure 1: House of Quality

DFMEA:

Design failure mode and effects analysis (DFMEA) – identification of all the ways in which a failure can occur, to estimate the effect and seriousness of the failure, and to recommend corrective design actions.

DFMEA Specifications:
  • Failure modes
  • Effect of failures on customers
  • Severity, likelihood of occurrence, and detection rating
  • Potential causes of failure
  • Corrective actions or controls

Quality & Performance Excellence Chapter 3-Book Summary-8thEd-Evans

Figure 2:Scoring Rubric/Head for DFMEA

Design for Manufacturability:

Design for manufacturability (DFM) is the process of designing a product for efficient production at the highest level of quality.

A Samsung manager noted that 70 to 80 percent of quality, cost, and delivery time is determined in the initial design stages.

Simplifying designs can often improve both cost and quality.

Design and Environmental Responsibility:

Design for environment, or  DFE, is the explicit consideration of environmental concerns during the design of products and processes and includes such practices as designing for recall ability and disassembly.

DFE offers the potential to create more desirable products at lower costs by reducing disposal and regulatory costs, increasing the end-of-life value of products, reducing material use, and minimizing liabilities.

Design for Services:
  • Outputs not as well-defined as in manufacturing
  • Higher interaction with customers
  • Involve both internal and external activities
Service Process Design:  (PEE)
  • Three basic design components:
  • Physical facilities, processes, and procedures
  • Employee behavior
  • Employee professional judgment.
Designing Quality Processes :
  • Identify the product or service: What work do I do?
  • Identify the customer: Who is the work for?
  • Identify the supplier: What do I need and from whom do I get it?
  • Identify the process: What steps or tasks are performed? What are the inputs and outputs for each step?
  • Mistake-proof the process: How can I eliminate or simplify tasks? What “poka-yoke” (i.e., mistake-proofing) devices can I use?
  • Develop measurements and controls, and improvement goals: How do I evaluate the process? How can I improve further?
Design for Agility:
  • Agility is a term that is commonly used to characterize flexibility and short cycle times.
  • Agility is crucial to such customer-focused strategies as mass customization, which requires rapid response and flexibility to changing consumer demand.
  • Enablers of agility include close relationships with customers to understand their emerging needs and requirements, empowering employees as decision-makers, effective manufacturing and information technology, close supplier and partner relationships, and breakthrough improvement.
Poka-Yoke:

An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error, such as forgetfulness, misunderstanding, errors in identification, lack of experience, absentmindedness, delays, or malfunctions.

Two Levels of Mistake-Proofing:

Prediction, or recognizing that a defect is about to occur and providing a warning; and detection

Recognizing that a defect has occurred and stopping the process.

Service Errors:

Task errors include doing work incorrectly, in the wrong order, or too slowly, as well as doing work not requested

Treatment errors arise in the contact between the server and the customer, such as lack of courteous behavior, and failure to acknowledge, listen, or react appropriately to the customer

Tangible errors are those in physical elements of the service, such as unclean facilities, dirty uniforms, inappropriate temperature, and document errors.

Customer errors in preparation arise when customers do not bring necessary materials to the encounter, do not understand their role in the service transaction, or do not engage the correct service.

Customer errors during an encounter can be because of inattention, misunderstanding, or simply a memory lapse, and include failure to remember steps in the processor to follow instructions

Customer errors at the resolution stage of a service encounter include failure to signal service inadequacies, learn from experience, adjust expectations, and execute appropriate post-encounter actions.

Control: It is the activity of ensuring conformance to requirements and taking corrective action when necessary to correct problems and maintain stable performance.

Components of Control Systems:

Any control system has three components:

  • a standard or goal,
  • means of measuring accomplishment, and
  • The comparison of actual results with the standard, along with feedback to form the basis for corrective action.
Statistical Thinking:
  • All work occurs in a system of interconnected processes
  • Variation exists in all processes
  • Understanding and reducing variation are the keys to success
Problems Caused by Variation:
  • Variation increases unpredictability
  • Reduces capacity utilization
  • Variation contributes to a “bullwhip” effect
  • Makes it difficult to find root causes
  • Variation makes it difficult to detect potential problems early.
Statistical Process Control (SPC):
  • A methodology for monitoring a process to identify special causes of variation and signal the need to take corrective action when appropriate.
  • When special causes are present, the process is deemed to be out of control.  If the variation in the process is due to common causes alone, the process is said to be in statistical control . Basically, statistical control means that both the process average and variance are constant over time.
  • SPC relies on control charts.
Quality & Performance Excellence-Book Summary-8th Edition-James R Evans

More Chapter Links:

Chapter 1: Introduction to Quality and Performance Excellence.

Chapter 2: Frameworks for Quality and Performance Excellence.

Chapter 3: Tools and Techniques for Quality Design and Control.

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Quality & Performance Excellence-Chapter 2 Book Summary (8th Edition) James R Evans

Quality & Performance Excellence-Book Summary-8th Edition-James R Evans. Chapter 2 Frameworks for Quality and Performance Excellence.

Chapter 2: Frameworks for Quality and Performance Excellence.

All Chapters Links

Outline:

  • Describe the philosophies of Deming, Juran, Crosby
  • Malcolm Baldrige National Quality Award
  • International Quality Award Programs:
  • Deming Prize:
  • Quality Management Systems
  • ISO 9000,
  • Six Sigma
  • Understand the differences in scope, purpose, and philosophy of these frameworks.
Deming Philosophy

The Deming philosophy focuses on continual improvements in product and service quality by reducing uncertainty and variability in design, manufacturing, and service processes, driven by the leadership of top management.Deming Chain Reaction Quality & Performance Excellence Figure 1: Deming Chain

Deming’s System of Profound Knowledge:
  • Appreciation for a system
  • Understanding variation
  • Theory of knowledge
  • Psychology

1. Systems:

  • Most organizational processes are cross-functional
  • Parts of a system must work together
  • Every system must have a purpose
  • Management must optimize the system as a whole

2. Variation:

  • Many sources of uncontrollable variation exist in any process
  • Excessive variation results in product failures, unhappy customers, and unnecessary costs
  • Statistical methods can be used to identify and quantify variation to help understand it and lead to improvements
  1. Theory of Knowledge:
  • Knowledge is not possible without theory
  • Experience alone does not establish a theory, it only describes.
  • Theory shows cause-and-effect relationships that can be used for prediction.
  1. Psychology:
  • People are motivated intrinsically and extrinsically; intrinsic motivation is the most powerful
  • Fear is demotivating
  • Managers should develop pride and joy in work
Deming’s 14 Points (Abridged):
  1. Create and publish a company mission statement and commit to it.
  2. Learn the new philosophy.
  3. Understand the purpose of inspection.
  4. End business practices are driven by price alone.
  5. Constantly improve the system of production and service.
  6. Institute training.
  7. Teach and institute leadership.
  8. Drive out fear and create trust.
  9. Optimize team and individual efforts.
  10. Eliminate exhortations for the workforce.
  11. Eliminate numerical quotas and M.B.O. Focus on improvement.
  12. Remove barriers that rob people of pride of workmanship.
  13. Encourage education and self-improvement.
  14. Take action to accomplish the transformation.
Juran Philosophy:

Juran proposed a simple definition of quality: “fitness for use.” This definition of quality suggests that it should be viewed from both external and internal perspectives; that is, quality is related to “(1) product performance that results in customer satisfaction; (2) freedom from product deficiencies, which avoids customer dissatisfaction.”

Juran’s Quality Trilogy: (PCI)
  • Quality planning
  • Quality control
  • Quality improvement
Crosby Philosophy:

“Quality is free.  It’s not a gift, but it is free. What costs money are the non quality things — all the actions that involve not doing jobs right the first time.”

Crosby’s Absolutes of Quality Management:

  • Quality means conformance to requirements
  • Problems are functional in nature
  • There is no optimum level of defects
  • Cost of quality is the only useful measurement
  • Zero defects are the only performance standard
Malcolm Baldrige National Quality Award:
  • Help improve quality in U.S. companies
  • Recognize the achievements of excellent firms and provide examples to others
  • Establish criteria for evaluating quality efforts
  • Provide guidance for other American companies

Recent Developments:

  • From 1987 until 2012, the Baldrige program was administered through the National Institute of Standards and Technology, a division of the U.S. Department of Commerce.
  • In 2012, the House Appropriations Committee of the U.S. Congress eliminated funding for the Baldrige program
  • The Baldrige program reacted quickly and began a transition to a sustainable, non-government-supported business model. In April 2012, the Baldrige Foundation committed funds to sustain the program through the fiscal year 2015.
Criteria for Performance Excellence
  • Leadership
  • Strategy
  • Customers
  • Measurement, Analysis, and Knowledge Management
  • Workforce
  • Operations
  • Results

Criteria Structure:

Each category consists of several items  (numbered 1.1, 1.2, 2.1, etc.) or major requirements on which businesses should focus.

Each item, in turn, consists of a few areas to address (e.g., 6.1a, 6.1b) that seek specific information on approaches used to ensure and improve competitive performance, the deployment of these approaches, or results obtained from such deployment.

Quality & Performance Excellence Baldrige Performance Excellence Program

Figure 2: Baldrige Performance Excellence Program

Core Values and Concepts:
  • Systems Perspective
  • Visionary Leadership
  • Customer-Focused Excellence
  • Valuing People
  • Organizational Learning and Agility
  • Focus on Success
  • Managing for Innovation
  • Management by Fact
  • Societal Responsibility
  • Ethics and Transparency
  • Delivering Value and Results
Baldrige Award Evaluation Process
  • Examiner review of the application to identify strengths and opportunities for improvement and preliminary scores
  • Consensus review by examiner teams to reach agreement on comments and scores
  • Judges’ selection of site-visited organizations
  • Judges’ recommendation of recipients
  • Feedback reports finalized for all applicants
Scoring and Evaluation: ADR

Approach – the methods the company uses to achieve the requirements addressed in each category

Deployment – the extent to which the approaches are applied to all requirements of the item

Results – the outcomes and effects in achieving the purposes given in the item

  • 1. Approach:
  • Appropriateness of methods
  • Effectiveness of the use of the methods. The degree to which the approach is
  • -Repeatable, integrated, and consistently applied
  • -Embodies evaluation/improvement/learning cycles
  • -Based on reliable information and data
  • Alignment with organizational needs
  • Evidence of innovation
  1. Deployment:
  • Use of the approach in addressing item requirements relevant to the organization;
  • Use of the approach by all appropriate work units
  1. Results:
  • Current performance
  • Performance relative to appropriate comparisons and benchmarks
  • Rate, breadth, and importance of performance improvements
  • Linkage of results measures to key customer, market, process, and action plan performance requirements
Impacts of the Baldrige Program:
  • Benefit/cost ratio on investment of 820:1
  • Changed the way organizations around the world manage themselves.
  • Use of self-assessment
  • State, local, and national awards around the world
  • Author Jim Collins: “I see the Baldrige process as a powerful set of mechanisms for disciplined people engaged in disciplined thought and taking disciplined action to create great organizations that produce exceptional results.”
International Quality Award Programs:
  • Deming Prize-(1951-JUSE)
  • European Quality Award
  • Canadian Awards for Business Excellence
  • Australian Business Excellence Award
  • Chinese National Quality Award
  • Many others!
Deming Prize:
  • Instituted 1951 by the Union of Japanese Scientists and Engineers (JUSE)
  • Several categories including prizes for individuals, factories, small companies, and Deming application prize
  • American company winners include Florida Power & Light and AT&T Power Systems Division
Quality Management Systems
  • A quality management system (QMS)  can be considered a mechanism for managing and continuously improving core processes to “achieve maximum customer  the lowest overall cost to the organization.”
  • A quality manual serves as a permanent reference for implementing and maintaining the system.
ISO 9000:2000:

Quality system standards adopted by the International Organization for Standardization in 1987; revised in 1994 and 2000 with minor updates in other years.

Technical specifications and criteria to be used as rules, guidelines, or definitions of characteristics to ensure that materials, products, processes, and services are fit for their purpose.

The rationale for ISO 9000:

ISO 9000 defines quality system standards, based on the premise that certain generic characteristics of management practices can be standardized, and that a well-designed, well-implemented, and carefully managed quality system provides confidence that the out-puts will meet customer expectations and requirements.

  • Objectives of ISO Standards:
  • Achieve, maintain, and continuously improve product quality
  • Improve the quality of operations to continually meet customers’ and stakeholders’ needs
  • Provide confidence to internal management and other employees that quality requirements are being fulfilled.
  • Provide confidence to customers and other stakeholders that quality requirements are being achieved
  • Provide confidence that quality system requirements are fulfilled
Structure of ISO 9000 Standards
  • The standards consist of three documents
  • ISO 9000:2005— Fundamentals and vocabulary
  • ISO 9001:2008— Requirements
  • ISO 9004:2009— Guidance for performance improvement
Benefits of ISO 9000:
  1. It provides discipline. The ISO 9001 requirement for audits forces an organization to review its quality system on a routine basis. If it fails to
  2. The ISO 9000 contains the basics of a good quality system, such as understanding customer requirements, ensuring the ability to meet them, ensuring people resources capable of doing the work that affects quality, ensuring physical resources and support services needed to meet product requirements, and ensuring that problems are identified and corrected.
  3. It offers a marketing program. ISO certified organizations can use their status to differentiate themselves in the eyes of customers.
Six Sigma:

Six Sigma– a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and a clear financial return for the organization.

Based on a statistical measure that equates to 3.4 or fewer errors or defects per million opportunities(DPMO).

Pioneered by Motorola in the mid-1980s and popularized by the success of General Electric

Key Concepts of Six Sigma:
  • Think in terms of key business processes, customer requirements, and overall strategic objectives.
  • Focus on corporate sponsors responsible for championing projects, support team activities, help to overcome resistance to change and obtaining resources.
  • Emphasize such quantifiable measures as defects per million opportunities (DPMO) that can be applied to all parts of an organization
  • Ensure that appropriate metrics are identified early and focus on business results, thereby providing incentives and accountability.
  • Provide extensive training followed by project team deployment
  • Create highly qualified process improvement experts (“green belts,” “black belts,” and “master black belts”) who can apply improvement tools and lead teams.
  • Set stretch objectives for improvement.
Six Sigma as a Quality Framework:

Total Quality or TQ is based largely on worker empowerment and teams; Six Sigma is owned by business leader champions.

TQ activities generally occur within a function, process, or individual workplace; Six Sigma projects are truly cross-functional.

Total Quality training is generally limited to simple improvement tools and concepts; Six Sigma focuses on a more rigorous and advanced set of statistical methods and a structured problem-solving methodology DMAIC—define measure, analyze, improve, and control.

TQ is focused on improvement with little financial accountability; Six Sigma requires a verifiable return on investment and focus on the bottom line.

Six Sigma in Services:

The culture of services is usually less scientific and service employees typically do not think in terms of processes, measurements, and data. The processes are often invisible, complex, and not well defined or well documented.

The work typically requires considerable human intervention, such as customer interaction, underwriting or approval decisions, or manual report generation.

Service measures differ from manufacturing: accuracy, cycle time, cost, customer satisfaction

Comparing Baldrige, ISO 9000, and Six Sigma:

Baldrige focuses on performance excellence for the entire organization in an overall management framework, identifying and tracking important organizational results

ISO focuses on product and service conformity  for guaranteeing equity in the marketplace and concentrates on fixing quality system problems and product and service nonconformities

Six Sigma concentrates on measuring product quality and driving process improvement and costs savings throughout the organization.

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Quality & Performance Excellence Chapter 1, Book Summary (8th Edition) James R Evans

Quality & Performance Excellence-Book Summary-8th Edition-James R Evans. Chapter 1: Introduction to Quality and Performance Excellence.

Quality & Performance Excellence-Book Summary-8th Edition-James R Evans

All Chapters Links

Outline:
  • Defining Quality
  • Importance of Quality
  • History of Quality Assurance
  • Future Influences
  • Quality in Manufacturing
  • Quality in Services
  • New Frontiers of Quality
  • Principles, Practices, and Techniques
  • Quality Management Principles
  • Kano Model
  • Learning Cycle
  • TQ and Agency Theory
Defining Quality:

1. Efficiently providing products and services that meet or exceed customer expectations adding customer value.

2. Continuously measuring the improvement of processes and services for customers

3. Acting as promised and reporting failures

4. Doing the right thing at the right time in the right way with the right people

5. Ensuring customers come back but products do not come back.

6. Providing the best value to customers by improving everyday activities and processes

7. Beyond delivering what the customer wants, anticipating what the customer will want when he or she knows the possibilities

8. Delivering customer value across the organization through best-in-class products, services, and support.

9. Meeting and exceeding the expectations of clients, employees, and relevant constituencies in the community.

The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs – American Society for Quality -FMC

  • Fitness for use
  • Meeting or exceeding customer expectations
  • Conformance to specifications

Performance Excellence: An integrated approach to organizational performance management that results in;

  • Delivery of ever-improving value to customers and stakeholders, contributing to organizational sustainability,
  • Improvement of overall organizational effectiveness, and
  • Capabilities, and organizational and personal learning.
Importance of Quality:

The slogan/ buzzword among businesses in the 1980s and 1990s.

Quality problems still abound / plentiful in many industries, such as automotive.

Consumer expectations are high.

“We’ve made dependence on the quality of our technology a part of life” – Joseph Juran
  1. Elevations Credit Union (ECU) has been named “Best Financial Institution” by readers of the Boulder Daily Camera for 15 of the past 16 years, and repeatedly as “Best Bank,” “Best Mortgage Company,”  or “Best Customer Service” by readers of the Colorado Daily, Boulder Weekly, Longmont Times-Call,  and Loveland Reporter-Herald.
  2. Business satisfaction with the city of Coral Springs, Florida, rose from 76 percent to 97 percent over a four-year period. The city was named as one of the “Best Places to Live.”
  3. Supplier on-time delivery at Lockheed Martin Missiles and Fire Control has been essentially 100 percent since 2006, and overall supplier quality has been nearly 100 percent since 2007. Time reductions as a result of process and performance improvement programs have occurred in all lines of businesses, yielding an estimated savings of $225 million annually.
  4. The overall Net Promoter (NP) scores (a loyalty metric defined by the level of repeat sales and referrals) for MEDRAD, a manufacturer of medical imaging devices, were consistently 60 percent or higher compared to the 50 percent or higher marks for other organizations nationwide.
  5. AtlantiCare, a nonprofit health system in southeastern New Jersey, saw its system revenues grow from $280 million to $651 million over an eight-year period, reflecting an 11 percent compound annual growth rate, compared to a state average of 5.6 percent.
  6. The Pewaukee School District (PSD) is the smallest K-12 educational system in Waukesha County, Wisconsin. Despite having one of the most rigorous public school graduation requirements (28 credits) in the state, PSD achieved a 97.4 percent graduation rate in 2012– 2013 and had a higher graduation rate from 2008 through 2012 than other counties, state, and nearby high-performing districts.
History of Quality Assurance
  • Quality assurance in Ancient China.
  • Skilled craftsmanship during Middle Ages.
  • Industrial Revolution: the rise of inspection and separate quality departments.
  • Early 20th Century: statistical methods at Bell System.
  • Quality control during World War II
  • Post-war Japan: evolution of quality management
  • Quality awareness in U.S. manufacturing industry during the 1980s: from “Little Q” to “Big Q” – Total Quality Management
  • Malcolm Baldrige National Quality Award (1987).
  • Cynicism and criticism among some business executives
  • The emergence of quality management in service industries, government, health care, education, and non-profits.
  • Evolution of Six Sigma
  • Current and future challenges: maintaining a commitment to performance excellence.
Future Influences:
  • Aging population
  • Global responsibility
  • Globalization
  • Innovation
  • The increasing rate of change
  • Consumer  awareness
  • The workforce of the future
  • 21st-century quality
Quality in Manufacturing: (DCSPRFA)

Durability – the amount of use before deterioration or replacement

Conformance – the degree to which characteristics match standards

Serviceability – speed, courtesy, and competence of repair

Performance – primary operating characteristics

Reliability – The probability of operating for specific time and conditions of use.

Features –“bells and whistles”

Aesthetics – look, feel, sound, taste, smell

Quality in Services:(2T3CA)

Time – how much time must a customer wait?

Timeliness – will service be performed when promised?

Completeness – Are all items in the order include?

Courtesy – do frontline employees greet each customer cheerfully?

Consistency – are services delivered in the same fashion for every customer, and every time for the same customer?

Accessibility and convenience – is the service easy to obtain?

Differences Between Manufacturing and Services: Customer needs and performance standards are often difficult to identify and measure

The production of services typically requires a higher degree of customization

The output of many service systems is intangible/ cannot touch

Services are produced and consumed simultaneously

Customers are often involved in the service process and present while it is being performed

Services are generally labor-intensive

Many service organizations must handle very large numbers of customer transactions.

New Frontiers of Quality: (H-GEN)
  • Health care
  • Government
  • Education
  • Not-for-Profits
  • Principles, Practices, and Techniques:
  • Principles are the foundation of the philosophy
  • Practices are activities by which the principles are implemented
  • Techniques are tools and approaches that help managers and employees make the practices effective.

Quality Management Principles:(CLPPSCCFM)

  1. Customer focus
  2. Leadership
  3. People
  4. Process Approach
  5. System Approach to Management
  6. Continual Improvement
  7. Factual Approach to Decision Making
  8. Mutually Beneficial Supplier Relationships
1. Customer Focus:
  • The customer is the principal judge of the quality
  • Organizations must build relationships with customers and increase customer engagement
  • Organizations must understand customer needs and obtain feedback
  • Customers are internal and external
  • Customer-Focused Practices
  • Researching and understanding customer needs and expectations;
  • Ensuring that goods and services are linked to customer needs and expectations;
  • Communicating customer needs and expectations throughout the organization;
  • Measuring customer satisfaction and using the results to improve;
  • Systematically managing customer relationships, and Ensuring a balanced approach between satisfying customers and other stakeholders.
2. Leadership:
  • Leadership is the responsibility of top management.
  • Senior leaders should be role models for the entire organization.
  • An organization cannot sustain quality initiatives without strong leadership.
  • Leadership Practices
  • Considering the needs of all stakeholders in decisions;
  • Establishing a clear vision of the organization’s future;
  • Setting challenging goals and targets;
  • Creating and sustaining shared values, fairness, and ethics at all levels of the organization;
  • Establishing trust and eliminating fear;
  • Providing workers with adequate resources, training, and freedom to make customer-focused decisions; and
  • Inspiring, encouraging, and recognizing worker’s contributions.
3. People:
  • A company’s success depends increasingly on the knowledge, skills, and motivation of its workforce.
  • Engagement – workers have a strong emotional bond to their organization, are actively involved in and committed to their work, feel that their jobs are important, know that their opinions and ideas have value, and often go beyond their immediate responsibilities for the good of the organization
  • Empowerment – has the authority to make decisions
  • “A sincere belief and trust in people
  • People-Focused Practices:
  • Understand the key factors that drive workforce engagement, satisfaction, and motivation
  • Design and manage work and jobs to promote engagement
  • Create an environment that ensures and improves workplace health, safety, and security
  • Develop an effective performance management system
  • Assess workforce engagement and satisfaction
  • Assess workforce capability and capacity needs
  • Make appropriate investments in development and learning
  • Manage career progression and succession planning.
Teamwork:

Vertical—teamwork between top management and lower-level employees.

Horizontal—teamwork within workgroups and across functional lines (often called cross-functional teams).

Inter-organizational—partnerships with suppliers and customers.

4. Process Approach:

A process is a sequence of activities that are intended to achieve some results.

Cross-functional Perspective:

Quality & Performance Excellence Chapter 1 Cross-functional Management Perspective

Process-Focused Practices:
  • Systematically defining processes that create desired outcomes; establishing clear responsibility and accountability for managing key processes;
  • Analyzing and measuring the capability of processes;
  • Identifying the interfaces of key activities within and between the functions of the organization;
  • Focusing on the factors such as resources, methods, and materials that will improve processes; and
  • Evaluating risks, consequences, and impacts of activities on customers, suppliers, and other stakeholders.
5.Systems Approach to Management:

Synthesis means looking at an organization as a whole and building on key business attributes, including core competencies, strategic objectives, action plans, and work systems.

Alignment means ensuring consistency of plans, processes, measures, and actions across the organization.

Integration builds on alignment so that the individual components of the organizational system operate in a fully interconnected manner and deliver anticipated results.

Systems Approach Practices:

Designing the organization to achieve its objectives in the most effective and efficient way;

Understanding the interdependencies between processes;

Developing approaches that harmonize and integrate processes;

Providing a clear understanding of the roles  and responsibilities necessary for achieving objectives and reducing cross-functional barriers;

Understanding organizational capabilities; defining how specific activities and processes should operate; and

Continually improving the system through measurement and evaluation.

6. Continual Improvement:
  • Incremental and breakthrough improvement
  • enhancing value to the customer through new and improved products and services;
  • improving productivity and operational performance through better work processes and reductions in errors, defects, and waste;
  • improving flexibility, responsiveness, and cycle time performance; and
  • improving organizational management processes through learning
Practices for Continual Improvement:
  • Deploying a systematic approach to continual improvement across the organization;
  • Providing the workforce with training in the methods and tools of continual improvement;
  • Making continual improvement of products, processes, and systems an objective for every individual;
  • Establishing goals to guide, and measures to track, continual improvement; and
  • Recognizing and acknowledging improvements.
Kano Model:(DSD)

Dissatisfiers —those needs that are expected in a product or service.  Such items generally are not stated by customers but are assumed as given. If they are not present, the customer is dissatisfied.

Satisfiers—needs that customers say they want. Fulfilling these needs creates satisfaction.

Delighters/exciters—new or innovative features that customers do not expect. The presence of such unexpected features, if valued, leads to high perceptions of quality.

Learning – why changes are successful through feedback between practices and results

Learning Cycle: (PEAR)
  • Planning
  • Execution of plans
  • Assessment of progress
  • Revision of plans based upon assessment findings
  1. Factual Approach to Decision Making:

Organizations need good performance measures to drive strategies and change, manage resources, and continuously improve

Data and information support analysis at all levels

Typical measures:

  • product and process outcomes,
  • customer-focused outcomes,
  • workforce-focused outcomes,
  • leadership and governance outcomes, and
  • financial and market outcomes.
Data-Driven Practices:
  • Ensuring that data and information are sufficiently accurate and reliable;
  • Making data accessible to those who need it;
  • Analyzing data and information using valid methods; and
  • Making decisions and taking action based on factual analysis, balanced with experience and intuition.
  1. Mutually Beneficial Supplier Relationships:

Suppliers include not only companies that provide materials and components, but also distributors, transportation companies, and information, health care, and education providers.

Key suppliers might provide unique design, technology, integration, or marketing capabilities that are not available within the business and, therefore, can be critical to achieving such strategic objectives as lower costs, faster time-to-market, and improved quality.

Supplier Management Practices:
  • Recognizing the strategic importance of suppliers in accomplishing business objectives, particularly minimizing the total cost of ownership;
  • Identifying and selecting key suppliers; developing win-win relationships that balance short-term gains with long-term considerations;
  • Establishing trust through openness and honesty, thus leading to mutual advantages;
  • Pooling expertise and resources with partners;
  • Having clear and open communication that information and future plans;
  • Establishing joint development and improvement activities; and inspiring, encouraging,
  • Recognizing improvements and achievements of suppliers.
TQ and Agency Theory:
  • Agency relationship: a concept in which one party (the principal) engages another party (the agent) to perform work
  • Key assumption: individuals in agency relationships are utility maximizers and will always take actions to enhance their self-interests.
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