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QUALITY (TQM HRM (FIVE PRINCIPLES, 1-Quality Work the First Time, 2-Focus…
QUALITY
DEFINITION
A product or service is said to be of quality when it adequately satisfies the expectations of that client..
PRODUCTIVITY
An economic measure of output per unit of input.
COMPETITIVITY
Refers to their ability to produce goods and services efficiently so that they can compete and achieve higher market shares..
INDICATORS FOR CUSTOMER
SATISFACTION
Excellent hiring, training, attitude and morale for front line employees.
Proactive customer service system
Proactive management of relationship with customers
.
Use of all listening posts
Quality requirements of market segment
Commitment to customers
Understanding customer requirements
Service standards meeting customers requirements
Frontline Empowerment
TQM
Work philosophy in which all the values of an organization are focused on continuously improving the quality of its products and services.
BENEFITS OF TQM
Greater customer loyalty
Market share improvement
Higher stock prices
Reduced service calls
Higher prices
Greater productivity
THREE QUALITY GURUS
DEMING
He is based in the consumer as a central element in the production line.
JURAN
Defines quality as fitness for use in terms of design, conformance, availability, safety and field use. He focuses on top-down management and technicalmethods rather than worker pride and satisfaction.
CROSBY
Quality is defined as conformance to requirements, not “goodness” The system for achieving quality is prevention, not appraisal. The performance standard is zero defects, not “that’s close enough" The measurement of quality is the price of non-conformance, not indexes.
5 APPROACHES THAT DEFINE QUALITY
User based
It is based on idea that quality is an individual matter and products that best satisfy their preferences are those with the highest quality.
Manufacturing based
Value based
It is defined in term of costs and prices as well as number of other attributes..
Manufacturing-based definitions are concerned primarily with engineering and manufacturing practices and use the universal definition of “conformance to requirements”
Product based
Is considered quantifiable or measurable
characteristic or attribute.
Transcendent
I can’t
define it, but I know it when I see it.
TOW
TRIANGLE OF WISDOM
Visible, Committed and Knowledgeable, A Missionary Zeal, Aggressive Targets, Strong Drivers, Communication of Values, Organization, Customers Contact..
TQM HRM
FIVE PRINCIPLES
1-Quality Work the First Time
2-Focus on the customer
3-Strategic Holistic Approach to Improvement
4-Continuous Improvement as a Way of Life
5-Mutual Respect and Teamwork
COST OF QUALITY
THREE VIEWS OF QUALITY COSTS
1-Higher quality means higher cost.
Quality attributes such as performance and features cost more in terms of labor, material, design and other costly resources.
2-The cost of improving quality is less than the resulting savings.
The saving result from less rework, scrap and other direct expenses related defects.
3- Quality costs are those incurred in excess of those that would have been incurred if the product were built or the service performed exactly right the first time.
This view is held by adherents of TQM philosophy.Costs include not only those that are direct, but also those resulting from lost customers, lost market share and the many hidden costs and foregone opportunities not identified by modern cost accounting systems
Cost of quality is the cost of
NON QUALITY
Types of quality cost
Cost of prevention
Cost of appraisal
Cost of internal failure
Cost of external failure
EXTERNAL FAILURE COSTS
Those incurred after the product is shipped.
External failure costs
include returns andallowances warranty costs, and hidden costs of customer dissatisfaction and lost market share.
INTERNAL FAILURE COSTS
Those incurred during the production process.
Include such items as machine downtime, poor quality materials, scrap, and rework.
CHARACTERISTICS OF A LEADER IN TOTAL QUALITY MANAGEMENT
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