TOTAL QUALITY IN ORGANIZATIONS

In Partial fulfilment of the Requirements

For the degree
Bachelor of Science in Business Administration
Major in Human Resource and Operations Management

Presented by:
Alejandrino, Mary Catherine Geline C.
Andrino, Mevelyn A.
Armia, Frances Rose E.
Casas, Arra Catherine V.
Felix, Gerel Ann E.
Leonor, Carmela Gloria M.
Manalo, Ceejay Danica E.
Marquez, Sunbeam S.
Ocampo Daira F.
Romana, Ayra R.

Submitted to:
Ms. Fe G. Garabiles-Espinosa

February 26, 2015

CHAPTER 3: TOTAL QUALITY IN ORGANIZATIONS

I. Quality and Systems Thinking
A production system is composed of many smaller, interacting sub systems
A. Infrastructure Elements
1.
2.
3.
4.
5.

Customer Relationship Management

Human Resources Management
Process Management
Leadership and Strategic Planning
Information and Knowledge Management

B. Quality Profiles: Chugach school district and SSM health care

II. Quality in Manufacturing
A. Quality Control
Process used to ensure that products meet the companys quality standards before they
are sold into external market.
B. Benefits of using Quality Control
High quality products
Customers satisfaction
Better quality, greater popularity
C. Manufacturing Systems
a. Marketing and Sales
Give them quality, thats the best advertising in the world
-Hershey
1.

Marketing and sales involve much more than advertising and selling

2.

Always know what the target population or customers wants.

3.
want.

Selling is all about showing the customer that you will provide the products they

4.
Enables a business to define products that are fit for use and can be produced within
the resources at hand and budget constraints.

5.
Sales people help in obtaining feedback on product performance from the customers.
They should also ensure that the customers receive adequate assistance and are completely
satisfied.
b. Purchasing and Receiving

Selecting quality-concious suppliers.

Ensuring that purchas orders clearly define the qualiy requirements.

Bringing together technical staff.

Establishing trust.

Providing quality-improvement training to suppliers.

Informing suppliers of any problem encountered with their good.

Maintaining good communication with suppliers.

c. Production Planning and Scheduling

Production plan specifies longterm and short term production requirements for filling
customers orders and meeting anticipated demands.
The correct materials, tools and equipment must be available at the proper time and
places in order to maintain a smooth flow of production.
D. Contrasts with Manufacturing
1. Customer needs and performance standards are often difficult to identify and
measure.
2. The production of services typically requires a higher degree of customization than
does manufacturing.
3. The output of many services is tangible, whereas manufacturing produces tangible.
4. Services are produced simultaneously, whereas manufactured goods are produced
prior to consumption.
5. Customers often are involved in the service process whereas manufacturing is
performed away from the customer.
6. Services are generally labor intensive, whereas manufacturing is more capital
intensive.
7. Many service organizations must handle large numbers of customer transactions.
E. Components of Service System Quality
a. Employees

Customers evaluate a service primarily by the quality of the human contact.

If we take care of our employees, they will take care of our customers.

All potential decisions in the company are evaluated on their effects in the employees
(people), on their customers (service), and the companys financial performance (profits).

Employees are engaged to be innovative and to make decisions that advance quality
and customer satisfaction goals.
b. Information Technology

Incorporates computing, communication, data processing, and various other means of

converting data into useful information.

Competitive Advantage, when technology is used to better serve the customer and to
make it easier for customers to do business with the company.

III.

E-commerce
Quality in Health Care
Quality First, Better Health Care for all Americans (Presidents Advisory Commission
on Consumer Protection and Quality in Health Care industry, 1998)
Types of quality problems in health care

IV.

Avoidable Errors
Underutilization of Services
Overuse of Services
Variation in Services

Quality in Education
A. The American Society for Quality (ASQ) has long promoted quality in elementary
education through a program entitled Koalaty Kid.
Quality = Koalaty
Quality degree of excellence
Koalaty an initiative, striving for excellence in the education system
Koalaty Kid

0 Carefully detailed plan approach to implementing Total Quality Management in

schools
0 Student-centered approach which is aimed at creating a school/environment where all
students enthusiasm for learning, behave responsibly feel proud of themselves and their
achievements, and strives to meet high standards.
a. Areas that students needed improvement:

0 They believe that reading was the key to all other learning, and observed that students did
not read much beyond what was required in the classroom.
0 They found out that all too often, students were handing in homework with numerous
errors. When ask to correct them, students could do so easily.
0 They observed that the most successful students were those who felt confident of their
abilities and comfortable with themselves.
b. Plans for Improvement
0 Reading became a primary focus. Students were invited to read books of their own
choosing.
0 The teachers communicated the standard the standard of work they expected in home
work. Students were assess in their own minds, Is this your best work? and they were
recognized for Koalaty Work
0 Teachers established school wide expectations for behavior, and made a point of
catching students being good.
c. Active Involvement
School administrators, teachers, sponsors, parents, and the students themselves work
together on teams that are empowered to make decisions and implement change.
d. Committed Leadership
Schools can change only if their designated leaders are committed to improvement.
Change occurs quickly if these administrators are also capable of inspiring the faculty,
students, parents, sponsors, and other administrators to work with them.
e. A System for Continuous Improvement
Koalaty Kid uses total quality principles establishing consistent standards of
excellence, setting and communicating clear expectations, continuous improvement,
looking at a work task as a process, involving all who have a stake in the outcome in the
improvement process, measuring results, and recognizing and rewarding success for
bringing about change.
Environment that celebrates success
Even though many schools are now using team-based management or employing total
quality, the fourth distinguishing feature of Koalaty Kid schools is the excitement that
permeates the school environment.
Success stories
0 Mark Twain Elementary in Richardson, Texas

0 School wide pass rates jumped from 72% to 93% in writing/comprehension portion of the
Texas Assessment of Academic Skills.
0 Mathematics pass rate increased from 65% to 81%
0 Overall pass rate rose from 35% to 71%
B. Quality in Higher Education
Oregon State University
Quality was considered a high-priority issue
It had a high probability of success
Management agreed that it was important
No one else was working on it
It was also important to the customers of the organization
a. Ways to decrease turnaround time in the remodeling process

Development of a project manager position

Installation of a customer service center to enhance work scheduling, control, and

follow up

Implementation of customer surveys to assess communications

More consultation at the beginning of the process with customers

phase

Identification of equipment and materials that could be purchased during the design
Motorola Purdue University (Excellence 21)

Faculty and Staff Development and Work life Enrichment

Assessment of Student Learning Outcomes

Undergraduate Education

Graduate Education

Student Related (Student services)

Administrative Processes

Technology

Penn State University and University of Wisconsin-stout

Multi-campus mega university that serves more than 81,000 students each year,
on 24 campuses

With a 2002-2003 year budget exceeding $1.8 Billion, exclusive of their medical
centers fund.

Consistent commitment to continuous quality improvement (CQI) efforts.

More than 450 CQI teams registered with the Center for Quality and Planning.
b. Academic Quality Improvement Project (AQIP)

Help member organizations improve their performance and maximize their effectiveness

Reshape the relationship with members of the Higher Learning Commission (an
accreditation agency) into a partnership

V.

Provide the public with credible quality assurance concerning higher education providers.
Quality in Small Businesses and Not-for Profits

Slow to adopt quality initiatives

This lag is a result of a lack in understanding and knowledge

Lack the resources needed to establish and maintain more formal quality systems.
A. Principles of Total Quality

Focus on customers

Teamwork and participation

Process focus and continuous improvement

B. Characteristic of small firms that affects the implementation of Total Quality

The lack of market clout

Not recognizing the importance of human resource management strategies in quality

Lack of professional management expertise

Lower technical knowledge and expertise

Informal nature of communication

Lack of structured information systems

Texas Nameplate Company, Inc.

Manufactures and sell identification and information labels

Only have 66 employees

Their quality journey began when a large customer threatened to cut them off if they did
not begin applying quality control tools.

TNC President, Dale crowner made the difference and kept the faith in his people.
Examples for Not-For-Profit:

United Way Of America

American Red Cross

VI.

Quality in the Public Sector

Public Sector

Pres. Ronald Reagan

Exec. Order 12637 - Productivity Improvement for the Federal Government.

Clinton Administration

George W. Bush
Presidents Quality Award (PQA)

Budget and Performance Integration

Strategic Management of Human Capital
Competitive Sourcing
Improved Financial Performance
Expanded Electronic Government

PQA Winners:
James A. Haley Veterans Hospital (Tampa, Florida)
Defense Supply Center Philadelphia (Philadelphia, Pennsylvania)

Army Armament Research, Development and Engineering Center (Pica

tinny Arsenal, New Jersey)

QUALITY IS A JOURNEY, NOT A DESTINATION.