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Introduction to Quality
and Performance
Excellence
Outline
Explain the concepts of quality and performance
excellence
2
Defining Quality
Perfection Fast delivery
Providing a good, usable product
Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers
6
Examples of Successful Quality-
Focused Organizations
1. Nestlé Purina PetCare Co. (NPPC) has had sustained
revenue growth, and met its sales goal during the nation’s
economic downturn and when the U.S. pet population grew
only marginally.
9
History of Quality Assurance
(2 of 3)
11
Future Influences
Global responsibility
Consumer awareness
Globalization
Aging population
Innovation
12
Quality in Manufacturing
Performance – primary operating characteristics
14
Differences Between
Manufacturing and Services (1 of 2)
Customer needs and performance standards are often
difficult to identify and measure
15
Differences Between
Manufacturing and Services (2 of 2)
Customers often are involved in the service process
and present while it is being performed
16
New Frontiers of Quality
Health care
Education
Government
Not-for-Profits
17
Principles, Practices, and
Techniques
Principles are the foundation of the
philosophy
Practices are activities by which the
principles are implemented
Techniques are tools and approaches that
help managers and employees make the
practices effective
18
Quality Management Principles
Customer focus
Leadership
Involvement of People
Process Approach
Continual Improvement
21
Leadership
Leadership is the responsibility of top
management
Senior leaders should be role models for
the entire organization
An organization cannot sustain quality
initiatives without strong leadership
22
Leadership Practices
Considering the needs of all stakeholders in decisions;
24
People-Focused Practices
Understand the key factors that drive workforce engagement,
satisfaction, and motivation
26
Process Approach
A process is a sequence of activities that is
intended to achieve some result
27
Cross-functional
Perspective
28
Process-Focused Practices
Systematically defining processes that create desired outcomes;
establishing clear responsibility and accountability for managing
key processes;
29
Systems Approach to
Management
Synthesis means looking at an organization as a whole and
building on key business attributes, including core
competencies, strategic objectives, action plans, and work
systems.
30
Systems Approach Practices
Designing the organization to achieve its objectives in the most
effective and efficient way;
32
Kano Model
Dissatisfiers—those needs that are expected in a product
or service. Such items generally are not stated by
customers but are assumed as given. If they are not
present, the customer is dissatisfied.
33
Learning
Learning – why changes are successful through
feedback between practices and results
Learning Cycle:
1. Planning
2. Execution of plans
3. Assessment of progress
34
Practices for Continual
Improvement
Deploying a systematic approach to continual
improvement across the organization;
35
Factual Approach to
Decision Making
Organizations need good performance measures to drive
strategies and change, manage resources, and continuously
improve
Typical measures:
product and process outcomes,
customer-focused outcomes,
workforce-focused outcomes,
leadership and governance outcomes, and
financial and market outcomes.
36
Data-Driven Practices
Ensuring that data and information are
sufficiently accurate and reliable;
37
Mutually Beneficial Supplier
Relationships
Suppliers include not only companies that provide
materials and components, but also distributors,
transportation companies, and information, health care,
and education providers.
38
Supplier Management
Practices (1 of 2)
Recognizing the strategic importance of suppliers in
accomplishing business objectives, particularly
minimizing the total cost of ownership;
40
TQ and Agency Theory
Agency relationship: a concept in which
one party (the principal) engages
another party (the agent) to perform
work
Key assumption: individuals in agency
relationships are utility maximizers and
will always take actions to enhance their
self-interests.
41
Contrast With TQ (1 OF 2)
42
Contrast With TQ (2 OF 2)
44