Basic Concepts of Quality Philosophy Chapter 1 Objectives What is Quality? History and Gurus Global...

Basic Concepts of Quality Philosophy

Chapter 1

Objectives

What is Quality?History and GurusGlobal CompetivenessCustomer Satisfaction, Retention, and

Loyalty

Quality Management

Quality has been defined in a number of ways. When viewed from a consumer’s perspective, it means meeting or exceeding customer expectations.

Total quality is an approach to doing business that attempts to maximize an organization’s competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments.

Quality Timeline1800’s

Standardization and Quality Control

1904-1915

Zero Quality Control; quality trilogy; TQM fishbone diagram

1920-30

Statistical analysis

1950-80

Management by quality

Quality control

1990’s

Value chain

Continuous improvement

1999-Now

Lean Quality Improvements

A Change in thinking, culture and doing business.

Key characteristics The rationale can be found in the need to:

compete in the global marketplace. Higher CostsMore Knowledgeable and demanding quality customers

Countries that are competing successfully in the global marketplace are seeing their quality of living improve. Those that cannot are seeing theirs decline.

Using the Road Map Maximizes the Probability of Success and Avoids the “Flavor of the Month” Syndrome

Decide

Prepare

Launch

Expand

Sustain

Time

Organization/Partner

Yes toDeployment

-Up Front Planning-Establish Infrastructure-Executive Onboard

- Initial Training- Pilot Projects

- Expand Training across the organization- Transition Training from Juran to Client

- Integrate, Audit, Measure, Assess, Review, Inspect, Focus

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

RadicalChangeIncrementa

lChange

Breakthrough ThinkingVARIOUS NEEDS…

Carry-overModules

Check Inspect Quality

Control Revise

Fix as FailSelf-Inspection

Quality Improvement

Lean Manufacturing

Process flow revisions

"As-is" Minor

modifications

5S Root Causes

are not always identified

Best-in

-Class

Best-in

-Class Customer

Focused Re-Design Creative thinking Innovation Six Sigma Benchmarking New technology

Quality Gurus

W. Edward DemingJoseph M. JuranPhilip CrosbyTaguchi

9

One:The Total Quality Approachto Quality Management(Continued)

W. Edward Deming is best known for his Fourteen Points, the Deming Cycle, and the Seven Deadly Diseases.

Joseph M. Juran is best known for Juran’s Three Basic Steps to Progress, Juran’s Ten Steps to Quality Improvement, the Pareto Principle, and the Juran Trilogy.

David GoetschQuality Management, 5e

Copyright ©2006 by Pearson Education, Inc.Upper Saddle River, New Jersey 07458

All rights reserved.

Performance at World-class levels

competitive analysisproduction and supply chain managementCustomizationelectronic commerce, andcompensation systems.

11

Customer Satisfaction, Retention, and Loyalty

Understanding Who Is a CustomerAn external customer is the one referred to in

the traditional definition. An internal customer is any employee whose work depends on that of employees

Communicating with CustomersUsing Customer Feedback to Make

Design Improvements




12

Customer Satisfaction, Retention, and Loyalty(Continued)

Understanding Customer-Defined QualityCustomer Satisfaction ProcessCustomer-Defined ValueCustomer Value Analysis

Customer satisfaction is achieved by producing high-quality products that meet or exceed expectations. It must be renewed with each purchase. The key to establishing a customer focus is to put employees in touch with customers so that customer needs are known and understood.




Customer Satisfaction, Retention, and Loyalty(Continued)Customer Retention

Scholtes’ six-step strategy for identifying customer needs: speculate about results, develop an information-gathering plan, gather information, analyze the results, check the validity of conclusions, and take action.

Customer needs are not static. constant contact is essential this contact should be in person or by telephone.

Written surveys can be used, but they will not produce the level of feedback that personal contact can generate.

14

Customer Satisfaction, Retention, and Loyalty (Continued)Recognizing the Customer-Driven

OrganizationValue Perception and Customer LoyaltyMeasurement –

Quality function deployment (QFD) - makes customer feedback a normal part of the product development process, thereby improving customer satisfaction.

Many customers who defect are satisfied. Organizations should, in addition, measure customer retention.




15

Customer Satisfaction, Retention, and Loyalty (Continued)

The customer loyalty model consists of four components: 1) business performance, 2) global perceptions, 3) loyalty behaviors, and 4) financial outcomes.

Organizations should never assume a positive correlation between customer loyalty and profitability, nor should they assume that a customer who is initially profitable will always be profitable.




16

Customer Satisfaction, Retention, and Loyalty (Continued)

An innovative approach to product development - turning customers into innovation partner. Customer is given a technological tool kit for designing his or her own products This approach is implemented by: develop a tool kit for customers that is easy to use increase the flexibility of your own production processes carefully select the first customers to use your took kit continually improve your tool kit adapt your business practices to suit the innovation partnership approach.




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Basic Concepts of Quality Philosophy Chapter 1 Objectives What is Quality? History and Gurus Global...

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