1

Module 2Module 2

Total Quality in Organizations

2

Growth of Modern Quality Management

Manufacturing quality

Servicequality

Performanceexcellence

Improvedproduct designs

3

Systems Thinking

• A system is the functions or activities within an organization that work together for the aim of the organization.

• Subsystems of an organization are linked together as internal customers and suppliers.

• A systems perspective acknowledges the importance of the interactions of subsystems, not the actions of them individually.

4

Manufacturing Systems (1 of 2)

•Product design and engineering

•Purchasing and receiving

•Production planning and scheduling

•Manufacturing and assembly

•Tool engineering

5

Manufacturing Systems (2 of 2)

• Industrial engineering and process design

• Finished goods inspection and test

• Packaging, shipping, and warehousing

• Installation and service

6

Manufacturing Example

http://www.youtube.com/watch?v=_jfXX7qppbc

7

Manufacturing Example (Cont.)

https://www.youtube.com/watch?v=736O4Hz4Nk4

8

Quality in Business Support Functions for Manufacturing

• General management (Support)

• Finance and accounting (Funding)

• Marketing & Sales (Feedback)

• Quality assurance (Specialists)

• Legal services (Compliance)

9

Quality in Services• Service is defined as “any primary or

complementary activity that does not directly produce a physical product – that is, the non-goods part of the transaction between buyer (customer) and seller (provider).”

10

Critical Differences between Service and Manufacturing (1 of 2)

• Customer needs and performance standards are more difficult to identify and measure

• Services requires a higher degree of customization and flexibility

• Output is intangible

11

Critical Differences between Service and Manufacturing (2 of 2)

• Services are produced and consumed simultaneously

• Customers are often involved in actual process

• Services are more labor-intensive than manufacturing

• Services handle large numbers of transactions

• Services are not realized until delivered

12

Components of Service System Quality

• Employees

• Information technology

13

The Ritz-Carlton Hotel Co.

14

Quality Issues in Health Care

• Avoidable errors

• Underutilization of services

• Overuse of/Unnecessary services

• Variation in services

15

Building Trust through Quality at Gerber

1. How do the various definitions of quality discussed in this module relate to the quality practices at Gerber?

2. How does Gerber exhibit the fundamental principles of total quality – customer and stakeholder focus, participation and teamwork, and a process focus and continuous improvement?

16

Building Trust through Quality at Gerber

3. How did quality help Gerber overcome the crisis it faced in the consumer-tampering situation? What lessons do their steps have for other companies?