Evolution of Quality Assurance

							Chapter 3: Controlling Processes: Total Quality Management

Evolution of Quality Assurance
  . After WW II (1950's-1960's)
  . Quality Management in Japan (1970's)
  . Quality Awareness in the US (1980's-90’s)
  . Quality Management programs today

  The Quality Imperative-Trends
  . Quality has become equal to or more important than price for 8 out
        of 10 consumers
  . The buyer is demanding higher quality when confronted with
        higher prices
  . Quality is a strategic weapon for achieving total customer
        satisfaction and lowering costs

  Customer-Driven Quality
  . Meeting and exceeding customer expectations
  - Consumers, External customers, Internal customers
Kano Model of Customer Needs
. Dissatisfiers: expected requirements
. Satisfiers: expressed requirements
. Exciters/delighters: unexpected features

Why Companies Lose Customers
  . Died                                       1%
  . Moved away                                 3%
  . Influenced by friends                      5%
  . Lured away by competition                  9%
  . Dissatisfied with product                 14%
  . Turned away by an attitude of Indifference 68%
  on the part of a company employee
 Key Dimensions of Service Quality
 . Timeliness
 . Completeness
 . Courtesy
 . Consistency
 . Accessibility and convenience
 . Accuracy
 . Responsiveness

 TQM: Key Principles
 . Focus on quality through strategic planning
 . Top management commitment and involvement
 . Integrate customer satisfaction throughout functions
 . Emphasize employee participation and training
 . Customize quality efforts
 . Link quality to financial returns
 . Strive for continuous improvement
 Quote
 "Putting out fires is not improvement. Finding a point out of control, finding the special
 cause and removing it, is only putting the process back to where it was in the first place.
 It is not improvement of the process. " -Juran

Why TQM Programs Fail
 Problem is with Implementation
 . Implementation Barriers
 . lack of Commitment
 . lack of Communication
 . Absence of Real Empowerment .
 . Not linking strategies to bottom line
 . Not taking a systems approach ...Implementing pieces of TOM
 . Not considering culture
  Quality Management Culture
  . Standard Company
    Quality is expensive.

   Inspection is the key to quality

   Defects are caused by workers

   The process can be optimized

   Use of quotas, etc…helps productivity

   Fear and reward are the proper ways to motivate.

   People can be treated like a commodity.

   Reward best performers, punish the worst.

   Buy at lowest cost and play suppliers against each other.

   Profit results from increased revenue and lower costs; most important indicator

Requisite Changes to Implement a Quality Culture
 . Hierarchical style..........Participative style, fewer layers
 . Inward Quality focus ..... Customer-defined quality
 . Functional focus ...........Process focus
 . Manage ........................Delegate, lead, coach
 . Direct ...........................Empower
What Makes Participative Management Work?
 . Managers must be willing to share some power and responsibility
 . Managers must trust employees                               .
 . Encourage problem solving and prevention training
 . Implement employee suggestions when feasible
 . Accept as a long-term effort...not as Deming would say -instant pudding
What's Holding Back Quality
  . Don't trust senior management               62%
  . Poor communication                          80%
  . People not empowered                        60%
  . Quick fix                                   58%
  . Politics/Turf                               58%
  . Lack of deep motivation                     58%
  . No time                                     58%
  . Lack of leadership                          58%
Benchmarks for a TQM Program
  . Quality is a company-wide process
  . Quality is what the customer says it is
  . Quality and cost are a sum, not a difference
  . Quality depends on the individual, teamwork, and an organized infrastructure
  . Quality is way of managing
  . Quality and innovation are mutually dependent
  . Quality requires continuous improvement-processes
  . A quality management program must be integrated with customers and suppliers