management in organisations quality. the definition of quality the benefits from higher quality the...

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Management in Organisations Quality

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Page 1: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Management in Organisations

Quality

Page 2: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

The definition of quality

The benefits from higher quality

The quality cycle

The economics of Quality

Dimensions of Service Quality

Service Guarantee

Quality Control Mechanisms

Topics to be covered

Page 3: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

A Definition :

"The totality of features and characteristics of a product or service that bear on its ability to satisfy a given need"or : "Fitness for use"

Page 4: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

QualityFocus

BetterProducts

FewerDefects

Benefits from Quality

IncreasedMarket Share

Higher Prices

HigherProductivity

Lower Costs

Page 5: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

The Quality Cycle

Operations

Customer

Marketing

Design

Page 6: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

PreventionAppraisalInternalFailure

ExternalFailure

Control costs Failure costs

Total Cost of Quality

The Economics of Quality

Page 7: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Prevention : Costs associated with design and planning of a Quality programme

Appraisal : Costs involved in the direct appraisal of quality both in plant and in field

Internal Failure : Occurrence of defective product in plant

External Failure : Failure of product or service in field

Defining the costs of Quality

Page 8: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Satisfying Customer Requirements

(adapted from Garvin 1988 Managing Quality)

• Performance

• Features

• Reliability

• Conformance

• Durability

• Serviceability

• Aesthetics

• Perceived Quality

Page 9: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Reliability

Dimensions of Service Quality

Five principal dimensions that customers use to judge service quality. These dimensions are listed in order of declining relative importance to customers.

ResponsivenessDependability

Accuracy

Reliability

Promptness of service

Service failure

Page 10: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

AssuranceKnowledge and Courtesy

Competence

Politeness and respect

Effective communication

Server attitude

Page 11: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Empathy

Tangibles Physical facilities

Caring Individualised attention

Approachability

Sense of security

Understanding Customer's needs.

Page 12: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Dimensions of Service Quality

ReliabilityResponsiveness

AssuranceEmpathyTangibles

Dimensions of Service Quality

ReliabilityResponsiveness

AssuranceEmpathyTangibles

ExpectedService

ExpectedService

Perceivedservice

Perceivedservice

PerceivedServiceQuality

ES < PS Quality Surprise

ES = PS Satisfactory

ES > PS UnacceptableQuality

PerceivedServiceQuality

ES < PS Quality Surprise

ES = PS Satisfactory

ES > PS UnacceptableQuality

Word ofMouth

Word ofMouth

PersonalNeeds

PersonalNeeds

PastExperience

PastExperience

Quality DimensionsQuality Dimensions

Page 13: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

1 Focuses on customers

2 Sets clear standards

3 Guarantees feedback

4 Promotes an understanding

of the delivery system

5 Builds customer loyalty

A guarantee promotes organisation effectiveness in several ways:

Benefits of Guarantees

Page 14: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

T Q M

otalualityanagement

Page 15: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Quality ‘Gurus’

Feigenbaum

Deming

Juran

Ishikawa

Taguchi

Crosby

Page 16: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Inspection

Quality Control

Quality Assurance

TQM

The development of TQM

Page 17: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Meeting the needs of customers

Encompassing all of the organisation

Including every person in organisation

Examining all costs related to quality

Getting things ‘right first time’

Developing systems and procedures

Developing continuous improvement

Characteristics of TQM

Page 18: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Defects

Rework

Scrap

Lost Items

Backlogs

Late Deliveries

Surplus Items

Seven generic ways to to measure quality output

Page 19: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Reactive Proactive

Inspection Prevention

AQL ZD

Blame placing Problem solving

Quality cost more Quality cost less

Quality is technical Quality is managerial

Schedule first Quality first

Defects hidden Defects highlighted

Changing Quality Assumptions

Page 20: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

A quality strategy

Top management support

A steering group

Group based improvement

Success is recognised

TQM implementation

Page 21: Management in Organisations Quality. The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions

Avoid hyp

No substitute for bad management

Not a bolt-on solution

Adapt to own circumstances

TQM and loss of effectiveness