ASSIGNMENT 2 1. Define the term quality.

Quality has been defined in different ways by a number of different people and organizations. When viewed from a consumers perspective, it means meeting or exceeding customer expectations. It is a term which the customers uses when describing a favorable or unfavorable product, service, experience or environment. According to Goetsch and Davis, quality is a dynamic state associated with products, services, people, processes, and environments that meets or exceeds expectations and helps produce superior value. Quality is considered a dynamic state because it often changes with time and circumstances. Elements such as the products, services, people, processes, and environments are significant components of quality because of competition. The focus is on the continual improvement of the people who produce the product, the processes they use, and the environment in which they work, resulting in a win in the long run. The superior value element of quality is an acknowledgement that measures quality.

2. What is total quality? Total quality is an approach to doing business that attempts to maximize an organizations competitiveness through the continual improvement of the quality of its products, services, people, processes, and environments. Evans and Lindsay quoted that the definition of total quality as the unyielding and continually improving effort by everyone in an organization to understand, meet and exceed the expectations of customers. Total quality involved the application of principles of quality management at all branch and all level of organization. It concerns on integration into business practices and a balance between technical, managerial and people issues.

3. List and explain the key elements of total quality. Key elements of total quality are as follows: strategically based, customer focus, obsession with quality, scientific approach, long-term commitment, teamwork, continual process improvement, education and training, freedom through control, unity of purpose and employee involvement and empowerment. Strategically based

Organizations must have comprehensive strategic plan based on customer focus and continual improvement with following elements: vision, mission, broad objectives and activities that must be completed to achieved the objectives.

Customer focus Total quality is based on the premise that quality is driven and defined by the customer. In customer focus, both the internal and external customers must be recognized. External customers define the quality of the product or service delivered. Internal customers define the quality of people, processes, and environment associated with the products or services. Employees must view themselves as both customers of and suppliers to other employees in assuring quality to external customers who purchase the product or service.

Obsession with quality The organization must be obsessed with meeting or exceeding customers expectations. All personnel at all levels must constantly be asking how can we do this better?

Scientific Approach Hard data are used in establishing benchmarks, monitoring performance, and making improvements. Decision making and problem solving is based on scientific principals.

Long-Term Commitment Quality improvement is not another management innovation but a whole new way of doing business that requires an entirely new corporate culture. Long term commitment is essential in total quality development in an organization.

Teamwork The organization must unite every departments or level for the sake of quality improvement and turn internal competition to external competitiveness.

Continual process improvement This refers to continually improve systems (environments) where it is done by continually improve the quality of products and services. To exceed customer expectations, the systems and processes must be continually assessed and improved.

Education and training Best way to improve people on a continual basis. It is through education & training that employee who already know how to work hard, learn how to work smart.

Freedom through control It refers to well-planned and carried-out controls by the organizations. The more control there is over a process, the more the employees can be empowered and free to spend time in decision making and problem solving.

Unity of purpose. Eliminate or reduce the adversarial relationship between labor and management and work together towards the common goal.

Employee Involvement and Empowerment There are 2 bases for involving employees; to increase the likelihood of a good decision or a better plan and to promote ownership of decisions by involving the people who will have to implement them. Empowerment means not just involving people but involving them in ways that give them an opportunity to voice out and make decision.

4. Explain the rationale for the total quality approach to doing business. Todays organizations must think in terms of a global marketplace in order to compete effectively. The elements of total quality are useful. Quality helps each person to maintain a better standard of daily living. Quality management helps achieve customer standards and appropriate dealings among organizations in the global marketplace.

5. Describe the following concepts: Demings Fourteen Points Deming's 14 points help an organization or business stay consistent and conscious of quality concerns and improvement. Below are the points: 1. Create constancy of purpose towards improvement of products and services to ensure sustainability. 2. Adopt the new philosophy. Management must learn the responsibilities and Take on leadership for change. 3. Stop depending on inspection to achieve quality and build in quality from the start. 4. Stop awarding contracts on the basis of low bids. 5. Improve continuously the system of production and services to improve quality and minimize costs. 6. Institute training on the job for all employees. Employees must be encouraged to implement the knowledge developed through training. 7. Institute leadership to help people and technology work better. 8. Drive out fear so that employee may work efficiently. 9. Break down barriers between departments to constitute teamwork. Teamwork leads to improvements in quality and productivity. 10.Eliminate slogans, exhortations and targets for the workforce as it can create adversarial relationship. 11.Eliminate quotas and management by objectives and substitute leadership. 12.Remove barriers to pride of workmanship. Quality is achieved in the company when all employees are satised and motivated. Management must create an environment where the workers take pride in their job. 13.Institute programs of education and self-improvement. An organization needs people that are improving with education. 14.The transformation is everyone's job and everyone must work on it. The Deming Cycle

The Deming Cycle was developed to link the production of a product with consumer needs and focus the resources of all departments (research, design, production, marketing) in a cooperative effort to meet those needs. Elements in the Deming Cycle are Plan, Do Check Act and Analyze.

PLAN Conduct consumer research and use it in planning the product.

DO Produce the product.

CHECK Check the product to ensure it was produced in accordance with the plan.

ACT Market the product ANALYZE Analyze how the product is received in the marketplace in terms of quality, cost and other criteria.

Demings Seven Badly Disease

Demings Seven Badly Disease summarize the factors that is believed can inhibit the transformation towards world-class quality organizations. The factors are: 1. Lack of constancy of purpose to plan product and service that will have a market and keep the company in business, and provide jobs. 2. Emphasis on short-term profits: short-term thinking (just the opposite of constancy of purpose to stay in business), fed by fear of unfriendly takeover, and by push from bankers and owners for dividends. 3. Personal review systems for managers and management by objectives without providing methods or resources to accomplish objectives. Performance evaluation, merit rating and annual appraisal are all part of this disease. 4. Job hopping by managers. 5. Using only visible data and information in decision making with little or no consideration given to what is not known or cannot be known. 6. Excessive medical costs. 7. Excessive costs of liability driven up by lawyers that works on contingency fees. 6. List and explain Jurans main contribution to the quality movement. Joseph M. Juran is the founder of the Juran Institute, which offers consulting and management training in quality. Juran was a prolific author, publishing over a dozen books. His most influential book Quality Control Handbook (later called Juran's Quality Handbook ) was published in 1951 and became a best seller. . Juran contributed to quality through his original ideas and the vast amount of

literature he developed on quality. Below is his contribution to the quality movement. 1. Jurans Three Basic Steps to Progress Juran developed basic steps that companies must take to achieve world-class quality, however he believed there was a point of diminishing return, a point at which quality goes beyond the consumer needs. The Three Basic Steps are as follows: 1. Achieve structured improvements on a continual basis with dedication and a sense of urgency. 2. Establish an extensive training program. 3. Establish commitment and leadership on the part of higher management.

2. Jurans Ten Steps to Quality Improvement Juran's ten steps to quality improvement are: 1. 2. 3. 4. 5. 6. 7. 8. 9. Build awareness of opportunities to improve. Set goals. Organize to reach goals. Provide training. Carry out projects to solve problems. Report progress. Give recognition. Communicate results. Keep score. 10.Maintain momentum by making annual improvement part of the systems and processes of the company.

3. Juran Trilogy The Juran Trilogy can be thought of as strategic framework for the implementation of quality management. While a great deal of Juran s writing discusses the details of specific tools and steps to improve quality in the firm, the Juran Trilogy is the strategic reasoning that explains why all these tools and steps are necessary. Specifically, the Juran Trilogy is comprised of three major stagesquality planning, quality control, and quality improvement. These

three stages, taken as a whole, form the basis for the entire quality management effort. Quality planning 1. Determine who the customers are. 2. Identity customer needs. 3. Develop products with features that respond to customer needs. 4. Develop systems and processes that allow the organization to produce these features. 5. Deploy the plans to operational levels. Quality control 1. Assess actual quality performance. 2. Compare performance with goals. 3. Act on differences between performance and goals. Quality improvement 1. The improvement of quality should be ongoing and continual. 2. Develop the infrastructure necessary to make annual quality improvements. 3. Identify specific areas in need of improvement, and implement improvement projects. 4. Establish a project team with responsibility for completing each improvement project. 5. 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. 4. The Pareto Principle The Pareto principle espoused by Juran shows up in the views of most quality experts, although it often goes by other names. According to this principle, organizations should concentrate their energy on eliminating the vital few sources that cause the majority of problems. Further, both Juran and Deming believe that systems that are controlled by management are the systems in which the majority of problems occur. 5. Transferring quality knowledge between east and west In 1954 he was invited to Japan, and assisted the Japanese in their quest to achieve quality, where he conducted training courses in quality management.

7. For what contributions to the quality movement is Philip B. Crosby known.

Philip B. Crosby is a businessman and author who inuenced quality improvement through his writings and lectures. He started the Crosby Associates, which provides consulting and training in quality management. Below are his contributions: Crosbys Four Absolute of Quality Management Phillip Crosby, PhD, former president of the American Society for Quality established four absolutes for quality performance.

1. Definition of quality is conformance to requirements, not goodness 2. System for causing quality is prevention, not appraisal 3. Performance standard is zero defects, not thats close enough 4. Measurement of quality is the cost of nonconformance, not indexes.

Although "zero defects" may seem an impractical goal, it worthy ideal parameter. The broader point is to know what you are measuring and what the proper standard of measurement should be.

Crosbys Fourteen Steps To Quality Improvement Like Deming, Crosby had fourteen points: 1. Manage commitment, that is, top level management must be convinced and committed and communicated to the entire company. 2. Quality improvement team composed of department heads, oversee improvements. 3. Quality measurement is established for every activity. 4. Cost of quality is estimated to identify areas of improvement. 5. Quality awareness is raised among all employees. 6. Corrective action is taken. 7. Zero defects are planned for. 8. Supervisor training in quality implementation. 9. Zero defects day is scheduled. 10.Goal setting for individuals. 11.Error causes are removed by having employees inform management of problems.

12.Recognition is given, but it is non-financial, to those who meet quality goals. 13.Quality councils meet regularly. 14.Do it all over again (i.e., repeat steps one through thirteen).

Crosbys Quality Vaccine Crosby sees problems as bacteria of nonconformance that must be vaccinated with antibodies to prevent problems. He has formulated a quality vaccine that consists of three distinct management actions-determination, education and implementation. Determination surfaces when management sees the need to exchange and recognizes that change requires management action. Education is the process of providing all employees with the common language of quality, helping them to understand what their role is in the quality improvement process, as well as helping them to develop a knowledge base for preventing problems. The third action is implementation, which consists of the development of a plan, the assignment of resources, and the support of an environment consistent with quality improvement philosophy. In this phase, management must lead by example and provide follow-up education.

8. Summarize the most common errors made when starting quality initiatives. 1. Senior management delegation & poor leadership Some organizations delegate leadership to the Quality department or an outside consultant rather than applying the leadership necessary to get everyone involved. 2. Team mania Teams will need to be established, but the approach needs to be learned. Teams will only be effective when a cultural change takes place. Plan must be made for integration of the TQ principals into the organization and for the necessary cultural change. 3. The deployment process Some organizations develop quality initiatives without concurrently developing plans for integrating them into all elements of the organization (i.e., operations, budgeting, marketing, etc.). 4. A narrow, dogmatic approach

Organizations need to tailor TQ to their individual needs. They cannot simply take the Demming approach or the Juran approach, they need to take from all the models and get the best fit for their organization.

5. Confusion about the differences among education, awareness, inspiration, and skill building Training and skill building are two different things. Training can be done over a short period of time; skill building takes not only time but a cultural change to foster that growth.

6. Explain the management.

trends

that

are

affecting

the

future

of

quality

Trends affecting the future of quality management include demanding global customers, shifting customer expectations, opposing economic pressures, and new approaches to management. To succeed in the global market for now and in the future, organizations need to operate according to TQM principals.