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In 1920’s, he started to conduct studies regarding the total quality management. “the father of scientific management”
Made planning the responsibility of management and production a part of the tasks of workers.
It is resulted in the use of statistical methods in the control of quality, which led to the concepts of control charts and statistical process control that are now part of the fundamental aspects of the total quality approach.
It began a trend toward moving quality control away from the traditional after-the-fact approach and toward inserting it throughout the design and production processes. However, for the most part, quality control in the 1950s and 1960s involved inspections that resulted in nothing more than cutting out bad parts.
Employees followed order by supervisors and managers. It was the labor not the brain they wanted. Expected one improvement per employee per year. Organization thinks traditional views focus on short term profits.
Employees are empowered to think and make recommendation for continual improvement. Expected make at least ten or more improvements per employee per year. Organizations think quality views focus on long term profit.
Total quality organizations have a comprehensive strategic plan that contains at least the following elements: vision, mission, broad objectives, and activities that must be completed to accomplish the broad objectives. The strategic plan of a total quality organization is designed to give it a sustainable competitive advantage in the marketplace.
In a total quality setting, the customer is the driver. This point applies to both internal and external customers.
In a total quality organization, internal and external customers define quality. With quality defined, the organization must then become obsessed with meeting or exceeding this definition.
Total quality detractors put off by such concepts as employee empowerment sometimes view total quality as nothing more than another name for “soft” management or “people” management.
Organizations that implement management innovations after attending short-term seminars often fail in their initial attempt to adopt the total quality approach.
In traditionally managed organizations, the best competitive efforts are often among departments within the organization.
Products are developed and services delivered by people using processes within environments (systems).
It is fundamental to total quality because they represent the best way to improve people on a continual basis.
Involving and empowering employees is fundamental to total quality as a way to simultaneously bring more minds to bear on the decision-making process and increase the ownership employees feel about decisions that are made.
Historically, management and labor have had an adversarial relationship in U.S. industry. One could debate the reasons behind management–labor discord ad infinitum without achieving consensus. From the perspective of total quality, who or what is to blame for adversarial management–labor relations is irrelevant. What is important is this: To apply the total quality approach, organizations must have unity of purpose.
The basis for involving employees is twofold. First, it increases the likelihood of a good decision, a better plan, or a more effective improvement by bringing more minds to bear on the situation—not just any minds but the minds of the people who are closest to the work in question.
When effectively practiced, total quality allows every aspect of an organization to operate at peak levels. This means that all personnel and processes are operating at their best.
His contribution was his ability to see the big picture, envision the impact of quality on it, and meld different management philosophies into a new, workable, unitary whole.
It is named after economist Vilfredo Pareto, is more commonly known in quality circles as the 80/20 rule. This rule is used variably to contend that 80% of the quality issues in an organization are caused by 20% of the problems or that 80% of the problems can be traced to a few critical sources (the 20%). Joseph Juran is credited with applying what was originally an economic principle to management and quality. He advised organizations to focus the bulk of their improvement efforts on identifying and eliminating these few critical sources of problems.
SUMMARIZES THE THREE PRIMARY MANAGERIAL FUNCTIONS.
It involves developing the products, systems, and processes needed to meet or exceed customer expectations.
It assess actual quality performance, compare performance with goals and act on differences between performance and goals.
It develop the infrastructure necessary to make annual quality improvements, Identify specific areas in need of improvement, and implement improvement projects, Establish a project team with responsibility for completing each improvement project and Provide teams with what they need to be able to diagnose problems to determine root causes, develop solutions, and establish controls that will maintain gains made.
Started his career in quality later than Deming and Juran. His corporate background includes 14 years as director of quality at ITT Corporation (1965–1979). He left ITT in 1979 to form Philip Crosby Associates, an international consulting firm on quality improvement, which he ran until 1992, when he retired as CEO to devote his time to lecturing on quality-related issues.
Ultimately teams should be established, and all employees should be involved with them. However, working in teams is an approach that must be learned.
TEAM MANIA
Deployment Process
Quality Success
Taking a narrow, dogmatic approach
Some organizations develop quality initiatives without concurrently developing plans for integrating them into all elements of the organization.
Deployment process
Quality
Competitiveness
Team Mania
Some organizations are determined to take the Deming approach, Juran approach, or Crosby approach and use only the principles prescribed in them.
Taking a narrow, dogmatic approach
Quality planning
Quality control
Quality improvement
This certification is for paraprofessionals who—under the direction of quality engineers and managers—analyze and solve quality problems, prepare inspection plans and instructions, select applications for sampling plans, prepare procedures, train inspectors, perform audits, analyze quality data, analyze quality costs, and apply basic statistical methods for process control.
Quality technician
Lost sales
Chargebacks
Strategic management
It is the customers satisfaction, It is the consistency, It is the of the customers needs and It is the performance that meets the expectation.
Quality
Cost of poor quality
Reworks costs
Freight costs
It is a strong desire to be more successful and It is being better than others.
Competitiveness
Cost of poor quality
Reworks costs
Freight costs
Many business executives adopt the attitude that ensuring quality is good thing to do until hard times set in and cost cutting is necessary. During tough times, quality initiatives are often the first functions to go.
Cost of poor quality
Reworks costs
Freight costs
Product returns
It is when you ship a defective product, the customer may ask for it to rework.
Reworks costs
Freight costs
Product returns
Lost sales
It is the late shipments of the products
Freight costs
Product returns
Lost sales
Chargebacks
If the customers chooses not to keep the defected products and they decided to return it back and negotiate to a quick replacement.
Product returns
Lost sales
Chargebacks
Strategic management
It is decreasing the volume of an order.
Lost sales
Chargebacks
Stategic management
Competitive strategy
It is where the customers are demanding more value for their purchases, including product quality.
Chargebacks
Strategic management
Competitive strategy
Cost leadership strategies
Few things affect an organization’s ability to compete in the global marketplace more than the costs associated with poor quality.
Strategic management
Competitive strategy
Cost leadership strategies
Differentiation strategies
Is management that bases all actions, activities and decisions on what is most likely- within an ethical framework – to ensure successful performance in the marketplace. From the strategic manager’s perspective.
Strategic management
Competitive strategy
Cost leadership strategies
Differentiation strategies
seek to improve efficiency and control costs throughout an organization’s activity-cost chain (supplier activity costs, in house activity, and distribution activity costs).
Cost leadership strategies
Differentiation strategies
Market-niche strategies
Strategic planning
It seeks to add value, as defined by costumers to the organization’s products or services.
Differentiation strategies
Market-niche strategies
Strategic planning
Strategic execution
It focuses on a narrowly defined segment of the market (market niche) and attempt to make the organization in question the market leader in that niche.
Market-niche strategies
Strategic planning
Strategic execution
Vision statement
It is the process by which an organization answers such questions as the following: Who are we? Where are we going? How will we get there? What we hope to accomplish? What are our strength and weaknesses? What are the opportunities and threats in our business environment?
Strategic planning
Strategic execution
Vision statement
Swot analysis
It involves implementing strategies set forth in strategic planning, monitoring progress toward their achievement and adjusting the plans and strategies as necessary. Strategic execution is implementation that achieves maximum efficiency and effectiveness.
Strategic execution
Vision statement
Swot analysis
Strength
It is a written document that describes where an organization is going and what it will look like when it gets there. It can be shorter long. It also describes the company's purpose, what the company is striving for, and what it wants to achieve
Vision statement
Swot analysis
Strength
Mission statement
It is a tool for documenting internal strengths (S) and weaknesses (W) in your business, as well as external opportunities (O) and threats (T). You can use this information in your business planning to help achieve your goals.
Swot analysis
Strength
Mission statement
Ethics
It is a resource or capacity the organization can use effectively to achieve its objectives.
Strength
Mission statement
Ethics
Driven by greed
It is grounding your vision in practical terms. This is where developing a _______ comes in. An organization's ________ describes what the groupis going to do and why it's going to do that.
Mission statement
Ethics
Driven by greed
Strategy
Is about doing the right thing within a moral framework. It is the practical application of morality.
Ethics
Driven by greed
Mission
Vision
A CEO might decide to deliver a large lot of manufactured goods he knows are defective
Driven by greed
Mission
Vision
Planning
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