Presentation 01 - Introduction to Quality

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3/4/2011 1 BUS 59 2 BUS 59 2Dr . Dr . Abdelghani Abdelghani An introduction to Quality Theory Re engineering  and  TQ M  Approaches to Organizational Change told as a "Tale of  Three Villages"

Transcript of Presentation 01 - Introduction to Quality

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BUS 592BUS 592‐‐ Dr. Dr. AbdelghaniAbdelghani

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 camewould enrich the lives of villagers for

generations to come.

Tale of Three Villages

The first chief told his workers, "Go forth and work. Dowhatever is necessar to build that brid e."

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 thespeed of his construction. Unfortunately, because no onecoordinated these worker's efforts, the bridge was a

.collapsed.

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Tale of Three Villages

The second chief was watching this mess and decided tolearn from the first chief's mistakes. She organized herworkers into teams, and gave them a plan to build abridge.

At first, these workers had success, and built the bridgestraight as an arrow far over the chasm. She boasted tothe two other chiefs about the accomplishments of her

wor ers.

Unfortunately, the next major storm destroyed thebridge for the chief did not know how to build structural

supports. Her workers became discouraged andabandoned their efforts.

Tale of Three Villages

The third chief  was watching their efforts and decided to 

earn  rom t e ot er c e s' m sta es. 

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 

ecome v ct ms o   t e r own success. T e r  n t a   qua ty 

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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quality……..

Quality definition “Quality”: An elusive term

“Quality”: Perceived relative value

“Quality”: A multi‐dimensional concept 

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Quality as “perceived value”High

Are you an idiot? 

Run of the mill 

Value 

Great Value 

R  el   a t  i  v  eP r i   c  e

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You get what 

you pay for 

Deal of the 

Century 

Relative QualityInferior Superior

Low

Quality Gurus W. Edwards Deming

Joseph M. Juran

Philip B. Crosby

Armen Fiegenbaum

W. A. Shewhart

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W. Edwards  Deming

 

The 14 principles

Emphasis on “prevention”

Emphasis on “variation”

Emphasis on statistical‐based analysis

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Emphasis on improving the system

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”

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Quality Programs (or buzzwords?!!)

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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

 

Total quality management ‐ TQM

INSTITUTING BEST PRACTICES &  CONTINUOUS IMPROVEMENT

Quality improvement programs are tools for implementing strategies keyed to Defect‐free manufacture

Superior product quality

Superior customer service

Total customer satisfaction

 

ent y ng  mp ement ng  est pract ces 

is a  journey, not a destination; it’s an 

exercise in doing things in a world‐class 

manner!

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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 HammerReengineering the Corporation:  A Manifesto  for  

Business Revolution

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Process Redesign (reengineering) [BPR]

The fundamental rethinking of  business 

processes to bring about dramatic 

Relies on reevaluating the purpose of  the 

process and questioning both the purpose and 

the underlying assumptions

Re uires reexamination of  the basic  rocess 

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?

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Neither!

It’s the wrong size of   glass!

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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

Im lement the new re‐en ineered  rocess

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Start all over

IMPLEMENTING A CONTINUOUS IMPROVEMENT PHILOSOPHY

Instill enthusiasm & commitment to doing 

things right from top to bottom of  firm

Strive to achieve little steps forward each 

day: Kaizen

Ignite employee efforts to be creative in 

improving performance of  value‐chain 

ac v es Preach there is no such thing as good enough 

& everyone must be involved

Reform the corporate culture

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BEST PRACTICE PROGRAMS

Aim at

Improved efficiency

Reduced costs

Better product quality

Greater customer satisfaction

 

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

 

rs , reeng neer ng  s use   o pro uce a goo  

basic design yielding dramatic improvements

Then, TQM is used to perfect process, gradually 

improving efficiency

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’  

Overview

Differing Perspectives on Quality

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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What is Quality? 

Project Quality Dimensions

Performance

Features

Reliability

Conformance

Durability

Serviceability

Aesthetics

Perceived Quality

1 ‐ 29 1 -29

©

What is Quality?Project Quality Dimensions

er ormance

Feature

Reliability

Conformance

c ency wwhich a productachieves itsintended purpose

1 ‐ 30 1 -30

(

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What is Quality

Project 

Quality 

Dimensions

 er ormance

Features

Reliability

Conformance

r u es  a  

supplement the 

product’s basic 

performance

1 ‐ 31 1 -31

What is QualityProject Quality Dimensions

Performance

Features

Reliability

Conformance

Perform 

consistently over the 

product’s useful life.

1 ‐ 32 1 -32

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What is Quality

Project 

Quality 

Dimensions

 er ormance

Features

Reliability

Conformance

erence  o 

quantifiable 

specifications

1 ‐ 33 1 -33

What is QualityProject Quality Dimensions

 o era e s ress or 

trauma without failing 

ura y

Serviceability

Aesthetics

Perceived Quality

1 ‐ 34 1 -34

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What is Quality

Project 

Quality 

Dimensions

pro uc sserviceable if it canbe repaired easilyand cheaply

ura y

Serviceability

Aesthetics

Perceived Quality

1 ‐ 35 1 -35

What is QualityProject Quality Dimensions

 u ec ve 

characteristics such 

as taste, feel, sound, look.

ura y

Serviceability

Aesthetics

Perceived Quality

1 ‐ 36 1 -36

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What is Quality

Project 

Quality 

Dimensions

 ua y as  e 

customer perceives 

it…image, recognition, word of  mouth.

ura y

Serviceability

Aesthetics

Perceived Quality

1 ‐ 37 1 -37

What is QualityService Quality Dimensions

ang es

Service Reliability

Responsiveness

Assurance

Empathy

1 ‐ 38 1 -38

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2

What is Quality

Service 

Quality 

Dimensions

 ang es

Service Reliability

Responsiveness

Assurance

Empathy

ys ca   appearance 

of  the facility, 

equipment, personnel and compunctions 

equipment

1 ‐ 39 1 -39

What is QualityService Quality Dimensions

 ang es

Service Reliability

Responsiveness

Assurance

Empathy

e a y o   e 

service provider to 

perform the promised 

service

1 ‐ 40 1 -40

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2

What is Quality

Service 

Quality 

Dimensions

 ang es

Service Reliability

Responsiveness

Assurance

Empathy

e w ngness o  

the provider to be 

helpful and prompt in 

providing service 

1 ‐ 41 1 -41

What is QualityService Quality Dimensions

 ang es

Service Reliability

Responsiveness

Assurance

Empathy

e  now e ge an  

courtesy of  the 

employees and their ability to inspire trust and confidence

1 ‐ 42 1 -42

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2

What is Quality

Service 

Quality 

Dimensions

 ang es

Service Reliability

Responsiveness

Assurance

Empathy

ar ng 

individualized 

attention from the 

service company

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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2

What is Quality?

Differing Functional Perspectives on Quality

Operations 

Perspective

Uses the Systems View that underlies modern 

Quality 

1 ‐

471 -47

 

thinking 

What is Quality?Differing Functional Perspectives 

on QualityStrate ic Mana ement

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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2

What is Quality?

Differing 

Functional 

Perspectives 

on Quality

Deming: Quality Improvement is linked to reduction 

of  defects and improved organizational performance

1 ‐ 49 1 -49

What is Quality?Differing Functional Perspectives 

on QualityFinancial

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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2

What is Quality?

Differing 

Functional 

Perspectives 

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?Differing Functional Perspectives 

on Quality

ar e ng

Marketers focus on perceived quality or quality as 

the customer views it.

1 ‐ 52 1 -52

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2

What is Quality?

Other Pers ectives on Qualit :`

Value‐Added Perspective on Quality

Cultural Perspective on Quality

1 ‐ 53 1 -53

What is Quality?

What is Qualit ?

The Three Spheres of  Quality Quality

Management

1 ‐ 54 1 -54

Quality

Assurance

Quality

Control

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What is Quality?

There are different perspectives on quality`

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