Regulations Competitions Market and Customers

Traditional
Analysis thru
Way: Market
Quality Tools
Share
and Root-cause
Analysis Brand Value

Benchmarking Proxy with

Innovation
and Quality of
Customer Focus:
Work Life
Delight

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Quality Definitions:
1. Meeting standards and regulatory compliance
2. Functionality
3. Expectation
4. Satisfaction
5. Delightfulness

Quality Dimensions:
1. Financial aspects
2. Non-financial aspects

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 Total Quality Management
1. Sink and Tuttle (1989): TQM is best described from a system viewpoint.
2. Deming (1986): Quality should focus on building while not overlooking inspection and
verification.
Traditional System Viewpoint

Inputs Processes Outputs

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 Contemporary Viewpoint on a System

Traditional System Viewpoint

Inputs Processes Outputs

Upstream Inputs Processes Outputs Downstream

Suppliers Customers
Broaden the Scope to
Contractors Users
Enlarge External Entities
Vendors Buyers
Regulators
Stakeholders

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Upstream Inputs Processes Outputs Downstream

Q1 Q2 Q3 Q4 Q5

Issues:
1. Building quality for improvement at Q1, Q3, and Q5: customer relation,
supply chain, occupational safety and health, etc.
2. Inspecting quality for compliance at Q2 and Q4: regulatory and customer
requirements

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Common ways to build quality:
1. Design and development
2. Customer and stakeholder understanding
3. Trends anticipation

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 Boeing 777 Overhead Rest Areas Delight
Flight Crews: The 777-200ER (Extended
Range) and 777-200LR (Longer Range) are
provisioned for a six-bunk attendant rest station

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Boeing Introduces Innovative Lighting on
the 787 Dreamliner: Illuminated by arrays of
light emitting diodes, both the brightness and
the color of the sky-like cabin ceiling can be
controlled in flight by the crew. Flight
attendants can give passengers a sense of
daylight when desired, and when they want
to help passengers rest, simulate a beautiful
nighttime sky
New Cabin Configuration Employed
on Boeing 787 Dreamliner: A
thoughtful cabin configuration and
well-defined architectural boundaries,
such as galleys, lavatories, and other
design features, provide passengers
with comfortable, defined areas in
more room-like proportions. These
strategic cabin breaks will make
passengers feel more comfortable on
long-duration flights.
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Trends: Context analysis is a method to analyze the
1. Economic environment in which a business operates.
2. Social Environmental scanning mainly focuses on
3. Technological the macro environment of a business. But
4. Political context analysis considers the entire
5. Demographical environment of a business, its internal and
external environment. This is an important
aspect of business planning (www.
en.wikipedia.org/wiki/Context_analysis).

Trends that likely influence how to build quality

1. Declining and/or population aging population
2. Social mobility and life styles
3. Environment
4. Globalization in terms of suppliers and customers
5. Competitions on cost effectiveness
6. Consumer protection and regulations
7. Wealth and economic growth
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5 keys to Building Quality:
(www.businessknowhow.com/manage/buildqual.htm)
1. Continuous Improvement philosophy
2. Consistency in everything you do
3. Teamwork as part of the culture
4. Routine Measure and Analysis
5. Training for all

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Quality Development:
1. Compliance of specification (ANSI, OSHA, NTSB for automobiles, FAA for aviation,
etc. )
2. Satisfactory, fitness of use, and product functionality (forming brand value)
3. Trust (for the public sector, it is called public value)– “wow”

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• From 1990s, compliance with regulations indicated the minimum or
acceptable level of quality.
1. Due to competition, customers demanded more than merely regulatory
compliance.
2. Companies expected to hear “voice of customers.”
3. The terms associated included product functionality, fitness of use,
satisfaction, etc.
4. Feedback from customers became necessary which led to customer
satisfaction surveys.
5. For many industries, given the trend in technology convergence, product
functionality was the key to business success.
6. Brand value dealt with perceived value of use-ability (ease of use).
Source: www.on-
state.com/images/google_solutions.jpg

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Source: http://public.deloitte.com/media/business_graphics/us_figure1_060509.jpg

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