Summary of Chapter One: The Management and Control of Quality

Summary of Chapter One: The Management and Control of Quality

(Evans and Lindsay, Fifth Edition)

QUALITY CHAPTER ONE: INTRODUCTION

1. Summarize history of quality before/since Industrial Revolution. What caused most changes?

BEFORE: Quality Assurance: Egyptian wall paintings/pyramids- evidence of measurement and inspection. AGE OF CRAFTSMANSHIP: Craftsmen acted as both manufacturer and inspector (craft guilds). Honore Leblanc- standardized interchangeable parts for muskets- Eli Whitney (USA) careful control of quality.

SINCE: Fredrick W. Taylor- father of scientific management. Separated planning from execution functions. Henry Ford- father of many total quality practices 1926 My Life, My Work. Bell Systems: massive inspection efforts (Shewhart/Dodge/Edwards/Deming). Specialisation of labour and standardization of assembly line production and process assembly components.

2. What factors contribute to increased awareness of quality in modern business?

Differences in quality among competitors (Eg. Japan and USA).Customer expectations increased to include high quality reliability and price aspects. Businesses have seen attentiveness to quality is vital for survival. In the early 1980s – quality became more pronounced part of business landscape.

FACTORS: (Need for integration of all factors)

1. Partnering

2. Learning

3. Adaptability/Speed of Change

4. Environmental Sustainability

5. Globalization

6. Knowledge Focus

7. Customization/Differentiation

8. Shifting Demographics

3. Explain various definitions of quality. Can a single definition suffice? Why?

QUALITY is viewed differently depending upon position in the system. Necessary for integration of definitions to embody total quality system.

1. Judgmental Criteria: (Know it when you see it)

2. Product Based Criteria: (Function of specific measurable variables)

3. User-Based Criteria: (What a customer wants or determines)

4. Value-Based Criteria: (As useful as competitors but sold at a lower price)5. Manufacturing-Based Criteria: (Specifications/Tolerances)

4. Distinguish among consumers, external customers, and internal customers.

Eg. McDonalds, Pizza Hut, or franchise. Franchises provide examples of customer based quality drivers.

1. Order taker/cashier subsystem

2. Grill and food preparation subsystem

3. Drive-through subsystem

4. Purchasing subsystem

5. Training subsystem

CONSUMERS:

Ultimate purchaser of products and services

EXTERNAL CUSTOMERS:

Suppliers and service chain deliveries to subsystem

INTERNAL CUSTOMERS:

Employees receive/transfer goods/services-subsystems

5. What is the concept of total quality? What does it mean for the way organization is managed?

TQ: Broad scope, people focused management system aims at continual increase in customer satisfaction at continually lowered costs. · Total systems approach. Includes integration of high-level strategies. · Works horizontally across functions/departments involves all employees· Top to bottom extends backwards and forwards to include supply and customer chains· Stresses learning/adaptation to continual change(Feigenbaum---total quality control in 1950s)

6. Describe the three fundamental principles of total quality.

1. Focus on customers and stakeholders
2. Participation and teamwork by everyone in organization
3. Process focus supported by continuous improvement and learning

7. What is a process? How does a process focus differ from traditional operations in an organization?

PROCESS:

Sequence of activities intended to achieve some result.
PROCESS FOCUS:

Links all necessary activities together and increases one’s understanding of the entire system rather than focusing on one small part.
OPPORTUNITIES FOR IMPROVEMENT:

Organizational interfaces require a review of traditional views of process as limited to manufacturing and simple input or output variables.

8. List some examples of the types of improvements an organization can make.

1. Enhancing value to customer new/improved product/service
2. Reducing errors, defects, wastes or costs
3. Increasing productivity/effectiveness
4. Improving responsiveness/cycle time/performance

9. What is the difference between improvement and learning?

REAL IMPROVEMENTS ARE BASED ON LEARNING
1. Planning (PLAN)

2. Execution of plan (DO)

3. Assessment of Progress (CHECK)

4. Revision of plans based upon assessment of findings (REVISE)

10. What are the important elements of a total quality infrastructure?

1. Customer Relationship Management
2. Leadership and Strategic Planning
3. HRM
4. Process Management
5. Data/Info. Management

11. Explain the relationship among infrastructure, practices, and tools.

INFRASTRUCTURE:

Basic management systems needed to function effectively
PRACTICES:

Activities occur at each element of infrastructure to achieve objectives
TOOLS:

Graphical/statistical data methods to plan activities/collect data/analyze results/monitor progress and solve problems

12. How does quality support the achievement of competitive advantage?

1. Product Quality: Business profitability correlation

2. Premium Quality Product/Service:

Correlation to large market share and early entry

3. Quality: Higher return on investment

4. Strategy of Quality Improvement: leads to increased market share

5. Higher Quality: Premium prices

13. What did Philip Crosby mean by, “Quality Is Free”?

Net effect of improved quality of design and conformance is increased profits.

14. Explain the role of quality in improving a firm’s profitability.

Explained previously

15. What evidence exists to counter the claim that “Quality Does Not Pay”?

GAO Survey- MBA high scorers achieved better results in employee relations, higher productivity, customer satisfaction, market share, and profitability
Zenger Miller Survey- Similar benefits Hendricks/Singhal (1997).

16. Explain the three levels of quality and the key issues that must be addressed at each level.

1. ORGANISATIONAL LEVEL: Meeting external customer requirements

2. PROCESS LEVEL: Units or departments (process/product/inputs for internal customers with cross-functionality

3. PERFORMANCE/JOB LEVEL: Job/Task Design Level Standards for output must be based on quality or customer requirements

17. Why is it important to personalize quality principles?

Roth and Strong Survey: Personal initiatives combined with customer orientation has positive impact upon business success and sales growth rates.