Maintaining Control & Improving Quality

67 %
33 %
Information about Maintaining Control & Improving Quality
Business & Mgmt

Published on February 4, 2009

Author: siddharth4mba

Source: slideshare.net

Description

Maintaining Control & Improving Quality

Maintaining Control and Improving Quality Chapter 8 Premium Lecture Outlines

Chapter Objectives Describe three types of control, and identify the components common to all control systems. Identify five types of productivity. Explain how providing a service differs from manufacturing a product, and l ist the five service-quality dimensions. Define total quality management (TQM) and discuss the basic TQM principles.

Describe three types of control, and identify the components common to all control systems.

Identify five types of productivity.

Explain how providing a service differs from manufacturing a product, and l ist the five service-quality dimensions.

Define total quality management (TQM) and discuss the basic TQM principles.

Chapter Objectives (cont’d) Describe at least three of the seven TQM process improvement tools. Explain how Deming’s PDCA cycle can improve the overall management process, and identify at least four of Deming’s famous 14 points.

Describe at least three of the seven TQM process improvement tools.

Explain how Deming’s PDCA cycle can improve the overall management process, and identify at least four of Deming’s famous 14 points.

Fundamentals of Organizational Control Control Taking prompt preventative or corrective action to ensure that the organization’s mission and objectives are accomplished effectively and effectively. Checking, testing, regulation, verification, or making adjustments to keep things on track. Objectives are yardsticks for measuring actual performance. Purpose of the control function Get the job done despite environmental, organizational, and behavioral obstacles and uncertainties.

Control

Taking prompt preventative or corrective action to ensure that the organization’s mission and objectives are accomplished effectively and effectively.

Checking, testing, regulation, verification, or making adjustments to keep things on track.

Objectives are yardsticks for measuring actual performance.

Purpose of the control function

Get the job done despite environmental, organizational, and behavioral obstacles and uncertainties.

Types of Controls Feedforward Control The active anticipation and prevention of problems, rather than passive reaction. Concurrent Control Monitoring and adjusting ongoing activities and processes. Feedback Control Checking a completed activity and learning from mistakes.

Feedforward Control

The active anticipation and prevention of problems, rather than passive reaction.

Concurrent Control

Monitoring and adjusting ongoing activities and processes.

Feedback Control

Checking a completed activity and learning from mistakes.

Figure 8.1 Three Types of Control

Components of Organizational Control Systems Organizational Control Subsystems Strategic plans Long-range plans Annual operating budget Statistical reports Performance appraisals Policies and procedures Cultural control

Organizational Control Subsystems

Strategic plans

Long-range plans

Annual operating budget

Statistical reports

Performance appraisals

Policies and procedures

Cultural control

Organizational Controls Organizational Control Subsystems Long-range plans Annual operating budget Statistical reports Performance appraisals Policies and procedures Cultural control Strategic plans

Objectives Measurable reference points (targets) for corrective action. Standards Guideposts on the way to achieving objectives. Benchmarking: identifying, studying, and building upon the best practices of organizational role models. Components of Organizational Control Systems (cont’d)

Objectives

Measurable reference points (targets) for corrective action.

Standards

Guideposts on the way to achieving objectives.

Benchmarking: identifying, studying, and building upon the best practices of organizational role models.

Evaluation-Reward Systems Measure and reward individual and team contributions to attaining organizational objectives. Can shape effort-reward expectancies that motivate better performance. Components of Organizational Control Systems (cont’d)

Evaluation-Reward Systems

Measure and reward individual and team contributions to attaining organizational objectives.

Can shape effort-reward expectancies that motivate better performance.

Identifying Control Problems Executive reality checks: top managers periodically working at lower-level jobs to become more aware of operations. Internal audits: independent appraisals of organizational operations and systems to assess effectiveness and efficiency. Components of Organizational Control Systems (cont’d)

Identifying Control Problems

Executive reality checks: top managers periodically working at lower-level jobs to become more aware of operations.

Internal audits: independent appraisals of organizational operations and systems to assess effectiveness and efficiency.

Sarbanes-Oxley Act of 2002 Requires CEOs and CFOs to certify periodic corporate financial reports. Prohibits personal loans or extensions of credit to executive officers and directors. Requires that guidelines be esatblished for audit committees. Requires reimbursement by CEOs and CFOs of bonus and stock option profits upon restatement of financial statements. Prohibits insider trading during pension fund blackout periods. Requires retention of all documents relevant to a government investigation.

Requires CEOs and CFOs to certify periodic corporate financial reports.

Prohibits personal loans or extensions of credit to executive officers and directors.

Requires that guidelines be esatblished for audit committees.

Requires reimbursement by CEOs and CFOs of bonus and stock option profits upon restatement of financial statements.

Prohibits insider trading during pension fund blackout periods.

Requires retention of all documents relevant to a government investigation.

Identifying Control Problems Symptoms of Inadequate Control An unexplained decline in revenues or profits. A degradation of service (customer complaints). Employee dissatisfaction . Cash shortages caused by bloated inventories or delinquent accounts receivable. Idle facilities or personnel. Disorganized operations. Excess costs. Evidence of waste and inefficiency.

Symptoms of Inadequate Control

An unexplained decline in revenues or profits.

A degradation of service (customer complaints).

Employee dissatisfaction .

Cash shortages caused by bloated inventories or delinquent accounts receivable.

Idle facilities or personnel.

Disorganized operations.

Excess costs.

Evidence of waste and inefficiency.

 

The Quality Challenge Defining Quality “Conformance to requirements” (Crosby). How adequately product or service quality meets customer expectations/needs/requirements. Five Types of Product Quality Transcendent quality Product-based quality User-based quality Manufacturing-based quality Value-based quality

Defining Quality

“Conformance to requirements” (Crosby).

How adequately product or service quality meets customer expectations/needs/requirements.

Five Types of Product Quality

Transcendent quality

Product-based quality

User-based quality

Manufacturing-based quality

Value-based quality

Five Types of Product Quality Transcendent Quality Inherent value or innate excellence apparent to the individual. Product-Based Quality The presence or absence of a given product attribute. User-Based Quality Quality of the product as determined by its ability to meet the user’s expectations.

Transcendent Quality

Inherent value or innate excellence apparent to the individual.

Product-Based Quality

The presence or absence of a given product attribute.

User-Based Quality

Quality of the product as determined by its ability to meet the user’s expectations.

Five Types of Product Quality (cont’d) Manufacturing-Based Quality How well the product conforms to its design specification or blueprint. Value-Based Quality How much value each customer separately attributes to the product in calculating their personal cost-benefit ratio.

Manufacturing-Based Quality

How well the product conforms to its design specification or blueprint.

Value-Based Quality

How much value each customer separately attributes to the product in calculating their personal cost-benefit ratio.

Examples of Product Quality Transcendent quality Designer clothing Product-based quality HDTV-ready television User-based quality Loose-fitting jeans Manufacturing-based quality Color-fast fabrics Value-based quality Credit-card interest rates

Transcendent quality

Designer clothing

Product-based quality

HDTV-ready television

User-based quality

Loose-fitting jeans

Manufacturing-based quality

Color-fast fabrics

Value-based quality

Credit-card interest rates

Unique Challenges for Service Providers Strategic Service Challenge To anticipate and exceed customer’s expectations. Distinctive service characteristics Customers participate directly in the production process. Services are consumed immediately and cannot be stored. Services are provided where and when the customer desires. Services tend to be labor intensive. Services are intangible.

Strategic Service Challenge

To anticipate and exceed customer’s expectations.

Distinctive service characteristics

Customers participate directly in the production process.

Services are consumed immediately and cannot be stored.

Services are provided where and when the customer desires.

Services tend to be labor intensive.

Services are intangible.

Unique Challenges for Service Providers (cont’d) Defining Service Quality Five service quality dimensions Reliability (most important) Assurance Tangibles Empathy Responsiveness

Defining Service Quality

Five service quality dimensions

Reliability (most important)

Assurance

Tangibles

Empathy

Responsiveness

Introduction to Total Quality Management (TQM) Total Quality Management (TQM) Creating an organizational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality, and customer satisfaction. Four Principles of TQM Do it right the first time. Be customer-centered. Make continuous improvement a way of life. Build teamwork and empowerment.

Total Quality Management (TQM)

Creating an organizational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality, and customer satisfaction.

Four Principles of TQM

Do it right the first time.

Be customer-centered.

Make continuous improvement a way of life.

Build teamwork and empowerment.

Introduction to Total Quality Management (TQM) (cont’d) Do It Right the First Time Designing and building quality into the product. Be Customer-Centered Satisfying the customer’s needs by anticipating, listening, and responding. Internal customers: anyone in the organization who cannot do a good job unless you do a good job.

Do It Right the First Time

Designing and building quality into the product.

Be Customer-Centered

Satisfying the customer’s needs by anticipating, listening, and responding.

Internal customers: anyone in the organization who cannot do a good job unless you do a good job.

 

 

Introduction to Total Quality Management (TQM) (cont’d) Make Continuous Improvement a Way of Life Kaizen: a Japanese word meaning continuous improvement (quality is an endless journey). A gain in one area does not mean loss in another. Venues for continuous improvement Improved and more consistent product and service quality. Faster cycle times. Greater flexibility. Lower costs and less waste.

Make Continuous Improvement a Way of Life

Kaizen: a Japanese word meaning continuous improvement (quality is an endless journey).

A gain in one area does not mean loss in another.

Venues for continuous improvement

Improved and more consistent product and service quality.

Faster cycle times.

Greater flexibility.

Lower costs and less waste.

Introduction to Total Quality Management (TQM) (cont’d) Build Teamwork and Empowerment Teamwork Suggestion systems. QC circles and self-managed teams. Team work and cross-functional teams. Empowerment Adequate training Access to information and tools Involvement in key decisions Fair rewards for results

Build Teamwork and Empowerment

Teamwork

Suggestion systems.

QC circles and self-managed teams.

Team work and cross-functional teams.

Empowerment

Adequate training

Access to information and tools

Involvement in key decisions

Fair rewards for results

Figure 8.2 Seven Basic TQM Tools Source: Arthur R. Tenner and Irving J. DeToro, Total Quality Management (figure 9.2 from page 113). © 1992 by Addison-Wesley Publishing Company, Inc. Reprinted by permission of Pearson Education, Inc. publishing as Pearson Additional Wesley.

The Seven Basic TQM Process Improvement Tools Flow Chart A graphic display of a sequence of activities and decisions. Cause-and-Effect Analysis The fishbone (Ishikawa) diagram helps visualize important cause-and-effect relationships. Pareto Analysis (80/20 Analysis) A bar chart indicating which problem needs the most attention.

Flow Chart

A graphic display of a sequence of activities and decisions.

Cause-and-Effect Analysis

The fishbone (Ishikawa) diagram helps visualize important cause-and-effect relationships.

Pareto Analysis (80/20 Analysis)

A bar chart indicating which problem needs the most attention.

The Seven Basic TQM Process Improvement Tools (cont’d) Control Chart Visual aid to statistical process control showing acceptable and unacceptable variations from the norm for repetitive operations. Histogram A bar chart indicating the distribution of deviations from a standard bell-shaped curve.

Control Chart

Visual aid to statistical process control showing acceptable and unacceptable variations from the norm for repetitive operations.

Histogram

A bar chart indicating the distribution of deviations from a standard bell-shaped curve.

The Seven Basic TQM Process Improvement Tools (cont’d) Scatter Diagram A diagram that plots relationships between two variables. Run Chart A trend chart for tracking a variable over time.

Scatter Diagram

A diagram that plots relationships between two variables.

Run Chart

A trend chart for tracking a variable over time.

Deming Management Deming Management The application of W. Edwards Deming‘s ideas to revitalize productive systems to make them more responsive to the customer, more democratic, and less wasteful organizations. Essentially the opposite of scientific management. Principles of Deming Management Quality improvement drives the entire economy. The customer always comes first. Don’t blame the person, fix the system. Plan-do-check-act (PDCA cycle).

Deming Management

The application of W. Edwards Deming‘s ideas to revitalize productive systems to make them more responsive to the customer, more democratic, and less wasteful organizations.

Essentially the opposite of scientific management.

Principles of Deming Management

Quality improvement drives the entire economy.

The customer always comes first.

Don’t blame the person, fix the system.

Plan-do-check-act (PDCA cycle).

Figure 8.3 Everyone Benefits from Improved Quality Source: Adapted from W. Edwards Deming, Out of the Crisis (Cambridge, Mass.: MIT Press, 1986), p. 3.

Figure 8.4 Deming’s PDCA Cycle Source: Adapted from Deming, Out of the Crisis , p. 88.

Deming Management (cont’d) Deming’s 14 Points Constant purpose New philosophy Give up on quality by inspection Avoid the constant search for lowest-cost suppliers Seek continuous improvement Train everybody Provide real leadership http://cob.bloomu.edu/ramin/Amin%20Lecture%20Notes/ch08/pre_ppt08.ppt Drive fear out of the workplace Promote teamwork Avoid slogans and targets Get rid of numerical quotas Remove barriers that stifle pride in workmanship Education and self-improvement are key “ The transformation is everyone’s job”

Deming’s 14 Points

Constant purpose

New philosophy

Give up on quality by inspection

Avoid the constant search for lowest-cost suppliers

Seek continuous improvement

Train everybody

Provide real leadership

http://cob.bloomu.edu/ramin/Amin%20Lecture%20Notes/ch08/pre_ppt08.ppt

Drive fear out of the workplace

Promote teamwork

Avoid slogans and targets

Get rid of numerical quotas

Remove barriers that stifle pride in workmanship

Education and self-improvement are key

“ The transformation is everyone’s job”

Add a comment

Related presentations

Related pages

Section 1. Achieving and Maintaining Quality Performance

Achieving and Maintaining Quality ... thus continually improving the organization; A quality ... That means that people must have enough control ...
Read more

Improving Health Care Quality | AHRQ Archive

Improving the quality of health care and reducing medical ... to one of two treatment groups or a control ... Improving Health Care Quality: ...
Read more

How to Improve Service Quality at Your Business

How to Improve Service Quality at Your ... improving quality service at your business ... Invest in service training, rather than a quality control ...
Read more

Improving - WPRO | WHO Western Pacific Region

Quality control 3. Developing countries ... aimed at improving and maintaining the quality of data and the information generated from that data.
Read more

Improving Quality, Lowering Costs: The Role of Health Care ...

Improving Quality, Lowering Costs: The Role of ... care quality, and control health ... more efficiently while maintaining or improving quality of ...
Read more

Improving Indoor Air Quality at Work - American Industrial ...

Improving Indoor Air Quality at Work ... Maintaining good IAQ in a building also ... The best method to control indoor air contaminants depends on the ...
Read more

The Role Of Nurses In Improving Hospital Quality And ...

The Role Of Nurses In Improving Hospital Quality And ... Discussions of hospital quality, cost control, ... improving the quality and safety of ...
Read more

Quality in the new health system - Welcome to GOV.UK

Quality in the new health system ‐ Maintaining and improving quality from April 2013 A draft report from ...
Read more

Healthy Aging - Improving and Extending Quality of life ...

IMPROVING HEALTH AND QUALITY OF LIFE FOR ALL PEOPLE. ... Maintaining Cognitive Health ... Healthy Aging - Improving and Extending Quality of life among ...
Read more