MEGA REVIEWER
Definition of Quality from occurring and creating attitudes and
ASQC. Product characteristics and features that
affect customer satisfaction
User-based. What consumer says it is.
Mfg-based. Degree to which a product
conforms to design specifications.
Product based. Level of measurable product
characteristic.
*Fitness for use (accdg to Juran) –only the
consumer can determine this.
Dimensions of Quality Quality of Design,
Quality of Conformance, Availability, Field of
Service.
8 Dimensions of Quality for Goods (David
Garvin) Operation (performance), features,
reliability, conformance, durability,
serviceability, appearance, perceived quality.
Service Quality Attributes Tangibles,
Communication, Understanding, Courtesy,
Access, Reliability, Responsiveness,
Competence, Credibility, Security.
Service Quality degree of fit between a
customer’s expectation and perception of
service/
SERVQUAL instrument for measuring the gaps
mentioned above. Dimensions: Tangibles,
Reliability, Responsiveness, Assurance,
Empathy.
Importance of Quality. Costs and market share,
reputation, liability, international implications.
Total Quality Management. Systematic way of
guaranteeing that organized activities happen
the way they are planned. Management
discipline concerned with preventing problems
Wilson De Jesus, MBA, 11387467
controls that make prevention possible.
How to achieve TQM? What to do
(Organizational practices), How to (Quality
principles), attitudes (employee fulfilment),
effective business and customer satisfaction.
TQM Principles. Understand and fulfil customer
needs, top management support, continuous
improvement, employee empowerment,
benchmarking, knowledge of TQM tools, and
economics of quality.
Continuous Improvement (Kaizen, zero-defects,
six sigma).
Employee Empowerment. Decision and
resource.
Quality Circles. Group of co-workers meeting.
Taguchi Techniques. Experimental design
methods to improve product and process
design.
Pareto Chart. Bar chart that shows problems.
Process Chart. Sequence of events in a process.
Cause & Effect Diagram. Self explanatory!
Poka-Yoke
Zero-Defect Quality (ZDQ) elimination of waste
and associated defects. Prevent defects!
Mistake-proofing (Poka-Yoke)
Yokeru- to avoid
Poka- inadvertent errors
It is fucking natural to commit mistakes -just
don’t overdo it. No finger pointing! Achieve
quality the first time a process is done.
In order to reduce quality defects, and stop
throwing away money, we should reduce the
variation of the process.
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What causes defects? Poor procedures or
standards; machines; non-conforming material,
worn tooling, human mistakes.
4 Components of ZDQ. Point of origin of
inspection; 100% audit checks; immediate
feedback; poka-yoke.
7 Guidelines to Poka-Yoke Attainment Quality
processes; utilize a team environment;
elimination of errors; eliminate the “root cause”
of the errors; do it right the first time; eliminate
non-value adding decisions; implement an
incremental continual improvement approach
(kaizen).
Six Poka Yoke Principles
Elimination
Mitigation Replacement
Detection Prevention
Facilitation
ISO 9001 – quality management. What the
organization must do to manage processes
affecting quality of its products and services
ISO 14001 –environmental management. What
the organization must do to manage processes
affecting the impact of its activities to the
environment.
Wilson De Jesus, MBA, 11387467
*applicable to all industries and all types of
entities.
*ISO may be achieved through certification and
registration (terms are interchangeable).
Accreditation is like certification of the
certifying body.
*ISO does not certify. It accredits bodies that
would certify. ISO develops standards and
guides to encourage good practice, in
accreditation and certification.
Benefits:
 International, expert consensus on state-
of-the-art practices for quality and
environmental management.
 Common language for dealing with
customers and suppliers worldwide in B2B.
 Increase efficiency and effectiveness.
 Model for continual improvement.
 Model for satisfying customers and other
stakeholders.
 Build quality into products and services
from design onwards.
 Address environmental concerns of
customers and public, and comply with
government regulations.
 Integrate with global economy.
 Sustainable business
 Unifying base for industry sectors
 Qualify suppliers for global supply chains
 Technical support for regulations
 Transfer of good practice to developing
countries
 Tools for new economic players
 Regional integration
 Facilitate rise of services
EMPLOYEE EMPOWERMENT
Empowerment is involvement and ownership.
Key to motivation and productivity. Everyone’s
contribution is maximized.
KLs from “Learning to Lead in Toyota”.
Managers should coach not fix. Lower level
employees are the problem solvers. Managers
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act as enablers. If everyone is looking at the
problem, different perspectives are accounted
for thus the solution is likely to be the best.
Empowerment vis-a-vis Participatory Mgt
Participatory management is management
asking for employees help. Empowerment is
letting employee help themselves, each other,
and the company as a whole. Remember the
bell boy and his 250 USD allowance for
improving processes.
Empowered people believe that his work has
meaning as it is aligned with his values,
competent to effectively conduct his role, has
self-determination as he can decide and
approach his work without being
micromanaged, and that he has an impact to
the outcome.
Inhibitors of Empowerment
1. Resistance from employees
2. Resistance from management
a. Insecurity
b. Personal values (there can only
be one boss –yeah right)
c. Ego (status holder)
d. Insufficient and ineffective
management training
e. Personality characteristics of
managers (balanced managers;
half-task manager; half-people
manager)
f. Exclusion of mangers
g. Workforce readiness
h. Org structure
Role of Managers
Do everything necessary to ensure
implementation and ongoing application of
empowerment.
Implementing Empowerment
1. Create supportive environment
2. Target and overcome inhibitors
3. Put the vehicles in place
a. Brainstorming
Wilson De Jesus, MBA, 11387467
b. Nominal group technique (NGT)
is sophisticated brainstorming.
c. Quality Circles
d. Suggestion boxes
e. Walking and talking
4. Assess, adjust, and improve
Identifying Empowered Peeps:
1. Takes initiative
2. Identifies opportunities
3. Thinks critically
4. Builds consensus
TEL – Training, Education, Learning
Training is an organized, systematic series of
activities designed to enhance an individual’s
work-related knowledge, skills, and
understanding or motivation
Education. Classroom setting, philosophical
and theoretical, less practical.
Learning is the purpose of T and E.
Sources of T: In house, External, combination.
Benefits of T
 Fewer Production Errors
 Increased Productivity
 Improved Quality
 Decreased Turnover Rate
 Lower Staffing Costs
 Improved Safety and Health
 Fewer Accidents
 Minimized Insurance Costs
 Increased Flexibility of Employees
 Better Response to Change
 Improved Communication
 Better Teamwork
 More Harmonious Employee Relations
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SIX SIGMA
 Approach to accelerated breakthrough
improvement.
 Business process enhancement
 Motorola, GE, Fidelity, AmEx
 Sigma
o Variation about the average of
any process
o Measure of output consistency
o Higher the better –vice-versa
 E.g. 3 mins of unsafe water per year
 Applicable to all industries
Outcomes
 Decrease defects and process time
 Cost reduction (followed by satisfaction
of customers, then employees)
 New customers, loyalty of old
 Revenue and market growth
DMAIC Outline
 Define project definition and managing
the six-sigma project
 Measure basic statistics; measurement
system analysis; capability analysis
 Analyze hypothesis testing; ANOVA;
regression analysis
 Improve design of experiments;
factorial experiments; taguchi; response
surface designs.
 Control SPC; Project documentation;
design for six-sigma; poka-yoke.
ARTICLES
Beyond World Class KLs
 It is not about the program or strategy
but it is with how they are implemented
and how much the desire of one
company is to be better than its
competitor.
 Adopting a program to improve
manufacturing, merely alone, is not
itself a strategy
Wilson De Jesus, MBA, 11387467
 Aspiring to lean manufacturing,
continuous improvement, or attain
world class standard is neither a
strategy.
 The goal of strategy should be strategic
flexibility. Being world class is not
enough as a company should be able to
switch gears when needed.
 Manufacturing-Missing Link in
Corporate Strategy" by Wickham
Skinner. He said that: (a) Companies
have different strengths and
weaknesses and can choose to
differentiate themselves from their
competitors in different ways; (b)
similarly, different productions systems,
the composite of decisions in a number
of key decision areas, have different
operating characteristics; and therefore,
rather than adopting an industry-
standard production system; (c) the
"task" for a company's manufacturing
organization is to configure a
production system that, through a
series of interrelated and internally
consistent choices, reflects the priorities
and trade-offs implicit in its competitive
situation and strategy.
 Being able to know what a company
needs is central to its long term success.
 Two companies may adopt the same
strategy and production process but one
can end up being more successful.
 A company's manufacturing system
should reflect its strategic position and
strategy.
 There are also two types of problem
that manufacturing companies should
tackle. These are: (1) equating an
improvement in manufacturing
capabilities with a manufacturing
strategy; and (2) failing to recognize
that new practices build capabilities
that can form the basis of a new
manufacturing strategy -if they are
recognized and exploited.
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Strategic Intent KLs
Four techniques the Japanese use:
1. Build layers of advantage
2. Search for loose bricks; as in using the
element of surprise just like in war; this
happens when businesses stay within
the response threshold of their
competitors.
3. One should be able to change the terms
of engagement. That is, the refusal to
accept the front-runner's definition of
industry and segment boundaries. In
sports, playing at the tempo of your
enemy is also playing at the pace of his
strategy. One should always strike in a
manner so polarizing that the terms of
engagement are rewritten –only can
then one can lead or overtake the
leader.
4. Companies should compete through
collaboration.
the organization time to digest one challenge
before launching another; (5) Establish clear
milestones and review mechanisms to track
progress.
By doing the above, “Reciprocal responsibility”
is generated. This concept allows the members
of a manufacturing company to have a shared
gain and shared pain in the company.
Competitive advantage must be expanded
beyond the scorecard managers now use: Lower
costs, products that command a price premium.
Keeping score of existing advantages is not the
same as building new advantages.
As stated in building layers of advantage, it is
important to maintain the gap between yourself
and your competitors and that an
organization's capacity to improve existing skills
and learn new ones is the most defensive
competitive advantage of all.

“Popular thinking is that concepts of ‘strategic
fit’ (between resources and opportunities),
‘generic strategies’ (low cost vs. differentiation
vs. focus), and the ‘strategy hierarchy’ (goals,
strategies, and tactics) often actively aided the
process of competitive decline.
Strategic intent captures the essence of
winning. It sets a target that deserves personal
effort and commitment.
To achieve strategic intent, a company must
usually take on larger, better financed
competitors. This means carefully managing
competitive engagements so that scarce
resources are conserved. To do this, the game
must be fundamentally changed: Devising novel
approaches to market entry, advantage
building, and competitive innovation, the art of
containing competitive risks within manageable
proportions.

Challenges, to be effective -individuals and

teams throughout the organization must
understand it and see its implications for their
own jobs. Engaging the organization requires to
management to do the following: (1) Create a
sense of urgency; (2) Develop a competitor
focus at every level through widespread use of
competitive intelligence; (3) Provide employees
with skills they need to work efficiently; (4) Give

Wilson De Jesus, MBA, 11387467