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Quality Management for

Organizational Excellence
Lecture/Presentation Notes

By:
Dr. David L. Goetsch and
Stanley Davis
Based on the book
Quality Management for
Organizational Excellence
(Eighth Edition)

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• MAJOR TOPICS
 What is Quality?
 The Total Quality Approach Defined
 Two Views of Quality
 Key Elements of Total Quality
 Total Quality Pioneers
 Keys to Total Quality Success
 How is Six Sigma Achieved?
 The Future of Quality Management
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• Quality has been defined in a number
of ways. When viewed from a
consumer’s perspective, it means
meeting or exceeding customer
expectations.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• Total quality is an approach to doing
business that attempts to maximize an
organization’s competitiveness through
the continual improvement of the
quality of its products, services, people,
processes, and environments.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• Key characteristics of the total quality
approach are as follows: strategically
based, customer focus, obsession with
quality, scientific approach, long-term
commitment, teamwork, employee
involvement and empowerment,
continual process improvement,
bottom-up education and training,
freedom through control, and unity of
purpose.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• The rationale for total quality can be
found in the need to compete in the
global marketplace. Countries that are
competing successfully in the global
marketplace are seeing their quality of
living improve. Those that cannot are
seeing theirs decline.
• W. Edward Deming is best known for
his Fourteen Points, the Deming Cycle,
and the Seven Deadly Diseases.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• Joseph M. Juran is best known for
Juran’s Three Basic Steps to Progress,
Juran’s Ten Steps to Quality
Improvement, the Pareto Principle, and
the Juran Trilogy.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• Common errors made when starting
quality initiatives include senior
management delegation and poor
leadership; team mania; the
deployment process; a narrow,
dogmatic approach; and confusion
about the differences among education,
awareness, inspiration, and skill
building.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• Trends affecting the future of quality
management include demanding global
customers, shifting customer
expectations, opposing economic
pressures, and new approaches to
management.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• The American Society for Quality (ASQ)
offers certifications in a variety of
disciplines including Manager of
Quality/Organizational Excellence,
Quality Engineer, Reliability Engineer,
Software Quality Engineer, Quality
Auditor, Six Sigma Black Belt, Six
Sigma Green Belt, Quality Technician,
Calibration Technician, Quality
Improvement Associate,…
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
One: The Total Quality Approach
to Quality Management
• …Quality Inspector, Quality Process
Analyst, Hazard Analysis and Critical
Point Auditor, Biomedical Auditor, and
Pharmaceutical GMP Professional.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Two: Quality and Global
Competitiveness
• MAJOR TOPICS
 The Relationship between Quality and
Competitiveness
 Cost of Poor Quality
 Competitiveness and the U.S. Economy
 Factors Inhibiting Competitiveness
 Comparisons of International
Competitors
 Human Resources and Competitiveness
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Two: Quality and Global
Competitiveness
 Characteristics of World-Class
Organizations
 Management by Accounting, Antithesis
of Total Quality
 U.S. Companies: Global Strengths and
Weaknesses
 Quality Management Practices in Asian
Countries.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Two: Quality and Global
Competitiveness
• The relationship between quality and
competitiveness can be summarized as
follows: In a modern global
marketplace, quality is the key to
competitiveness.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Two: Quality and Global
Competitiveness
• The costs of poor quality include the
following: waste, rejects, retesting,
rework, customer returns, inspection,
recalls, excessive overtime, pricing
errors, billing errors, excessive
turnover, premium freight costs,
development cost of the failed product,
field service costs, overdue receivables,
handling complaints, expediting,
system costs, planning delays,…
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Two: Quality and Global
Competitiveness
• …late paperwork, lack of follow-up,
excess inventory, customer allowances,
and unused capacity.
• The United States came out of World
War II as the only major industrialized
nation with its manufacturing sector
completely intact. Germany and Japan
were devastated by damage during the
war.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Two: Quality and Global
Competitiveness
 They rebuilt their manufacturing bases
on the assumption that to compete
globally, they would have to produce
goods of world-class quality. That
strategy helped them recover and
become world leaders in manufacturing.
• Several factors can inhibit
competitiveness, including those
related to business and government,
family, and education.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Two: Quality and Global
Competitiveness
• When making comparisons among
internationally competing countries, the
following indicators are usually used:
standard of living, trade and export
growth, and manufacturing
productivity.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Two: Quality and Global
Competitiveness
• The most important key in maximizing
competitiveness is the human resource.
Following World War II, this was the
only resource that Germany and Japan
had to draw on. Consequently, they
built economic systems that encourage
private employers to make business
decisions that emphasize improved
productivity and quality, rather than
price.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

• MAJOR TOPICS
 What is Strategic Management?
 Competitive Strategy
 Core Competencies and Competitive
Advantage
 Components of Strategic Management
 Strategic Planning Overview
 Creative Thinking in Strategic Planning
 Conducting the SWOT Analysis
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

 Developing the Vision


 Developing the Mission
 Developing the Guiding Principles
 Developing Broad Strategic Objectives
 Developing Specific Tactics (Action Plan)
 Executing the Strategic Plan
 Strategic Planning in Action: A “Real
World” Case

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

• Strategies that organizations can adopt


for gaining a sustainable competitive
advantage are cost leadership,
differentiation, and market-niche
strategies.
• Core competencies are things an
organization dose so well they can be
viewed as providing a competitive
advantage.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

• Strategies are approaches adopted by


organizations to ensure successful
performance in the marketplace.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

• Strategic management is management


that bases all actions, activities, and
decisions on what is most likely to
ensure successful performance in the
marketplace. The two major
components of strategic management
are strategic planning and strategic
execution.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

• Part of strategic planning is thinking


creatively to eliminate “sacred cows”
that work against competitiveness.
• Strategic planning is the process
whereby organizations develop their
vision, mission, guiding principles,
broad objectives, and tactics for
accomplishing the broad objectives.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

• An organization’s vision is its guiding


force, the dream of what it wants to
become and its reason for being.
• An organization’s mission describes
who an organization is, what it does,
and where it is going.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

• An organization’s guiding principles


establish the framework within which it
will pursue its mission. Together, the
guiding principles summarize an
organization’s value system, the things
it believes are most important.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

• An organization’s broad strategic


objectives translate its mission into
more specific terms that represent
actual targets at which the organization
aims. The objectives are more specific
than the mission, but they are still
broad.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

• Tactics are well defined, finite projects


and activities undertaken for the
purpose of specific desired outcomes in
support of the broad objectives.
• Even the best strategic plan will serve
no purpose unless it is effectively
executed. To promote successful
execution of strategies, organizations
should undertake the following
activities:
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Three: Strategic Management: Planning
and Execution for Competitive Advantage

 Communicate, build capabilities,


establish strategy-supportive stimuli,
eliminate administrative barriers,
identify advocates and resisters,
exercise strategic leadership, and
monitor and adjust as needed.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
• MAJOR TOPICS
 Definition and Overview of Ethics
 Trust and Total Quality
 Values and Total Quality
 Integrity and Total Quality
 Responsibility and Total Quality
 Manager’s Role in Ethics
 Organization’s Role in Ethics

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
 Handling Ethical Dilemmas
 Ethics Training and Codes of Business
Conduct
 Models for Making Ethical Decisions
 Beliefs versus Behavior: Why the
Disparity?
 Ethical Dilemmas: Cases
 Corporate Social Responsibility Defined

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
• Ethics is about doing the right thing
within a moral framework. The most
common impediment to ethical conduct
is human nature because people tend
to behave according to perceived
personal interest.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
• Trust is a critical element of ethics,
which, in turn, makes ethics critical in
total quality. Many of the fundamental
elements of total quality depend on
trust and ethical behavior, including
communication, interpersonal relations,
conflict management, problem solving,
teamwork, employee involvement and
empowerment, and customer focus.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
 Trust can be built by being loyal to
those not present, keeping promises,
and sincerely apologizing when
necessary.
• Values are those core beliefs that guide
our behavior. Individuals and
organizations apply their knowledge
and skills most willingly to efforts in
which they believe.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
 Managers should work to establish an
environment in which values that lead
to ethical behavior and values that lead
to peak performance are the same.
• Integrity requires honesty, but it is
more than just honest. Integrity is a
combination of honesty and
dependability. People with integrity
can be counted on to do the right thing,
do it correctly, and do it on time.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
• Accepting responsibility is part of
ethical behavior. People who pass
blame are not behaving ethically. In a
total quality setting, people are
responsible for their performance.
When speaking of their organization,
ethical people say, “we” instead of
“they.”

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
• Managers play a key role in ethics in an
organization. They are responsible for
setting an example of ethical behavior,
helping employees make ethical
choices, and helping employees follow
through and behave ethically after
making an ethical choice.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
 In carrying out these responsibilities,
managers can use the best-ratio
approach, black-and-white approach,
and full-potential approach.
• The organization’s role in fostering
ethical behavior includes creating an
ethical environment and setting an
ethical example. Key in creating an
ethical environment is having a
comprehensive ethics policy.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
 Key in setting an example is following
the policy, expecting all employees to
follow the policy, and rewarding those
who do.
• In handling ethical dilemmas, managers
should select the option that is most
likely to build trust, integrity, and a
sense of responsibility and that is most
likely to pass the various ethics tests
(i.e., front-page, morning-after, etc.).
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
• People who believe in ethical values will
sometimes make unethical decisions
because of self-interest, self-protection,
conflicting values, or because they see
the benefits as being intangible or
deferred.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Four: Quality Management, Ethics,
and Corporate Social Responsibility
• Key elements of corporate social
responsibility include the ethical
aspects of the following issues: human
rights, safety and health, business
practice, governance, environmental
engagement, consumer relations,
marketplace activities, community
involvement and social development.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
• MAJOR TOPICS
 Partnering or Strategic Alliances
 Innovative Alliances and Partnerships
 Internal Partnering
 Partnering with Suppliers
 Partnering with Customers
 Partnering with Potential Competitors
 Global Partnering
 Education and Business Partnerships
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
• Partnering means working together for
mutual benefit. It involves pooling
resources, sharing costs, and
cooperating in ways that mutually
benefit all parties involved in the
partnership. Partnerships may be
formed internally (among employees)
and externally with suppliers,
customers, and potential competitors.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
 The purpose of partnering is to enhance
competitiveness. The formation of
partnerships should be a systematic
process involving such steps as
development of a partnering briefing,
identification of potential partners,
identification of key decision makers,
implementation of the partnership.
• Internal partnering operates on three
levels:
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
 Management-to-employees, team-to-
team partnerships, and employee-to-
employee partnerships.
• The purpose of internal partnering is to
harness the full potential of the
workforce and focus it on the continuous
improvement of quality.
• Internal partnering is also called
employee involvement and employee
empowerment.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
 Successful internal partnering requires a
supportive environment, structured
mechanisms, and mutually supportive
alliances.
• The goal of a supplier partnership is to
create and maintain loyal, trusting
relationships that will allow both
partners to win while promoting the
continuous improvement of quality,
productivity, and competitiveness.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
 The requirements for success in supplier
partnerships include the following:
• Supplier personnel should interact with
employees who actually use their
products, the price-only criteria in the
buyer-supplier relationship should be
eliminated, the quality of products
delivered should be guaranteed by the
supplier, supplier should be proficient in
JIT, and both parties should be capable
of sharing information electronically.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
• Supplier partnerships typically develop
in the following stages: uncertainty and
tentativeness, short-term pressure,
realization of the need for new
approaches, adoption of new
paradigms, awareness of potential,
adoption of new values, and mature
partnering.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
• The rationale for forming customer
partnerships is customer satisfaction.
The best way to ensure customer
satisfaction is to involve customers as
partners in the product development
process. Doing so is, in turn, the best
way to ensure competitiveness.
Customer-defined quality is a
fundamental aspect of total quality.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
• Small- and medium-sized enterprises
or SMEs, even those that compete in
the same markets, can benefit from
partnering. The most widely practiced
form of partnership among SMEs is the
manufacturing network. A
manufacturing network is a group of
SMEs that cooperate in ways that
enhance their quality, productivity, and
competitiveness.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
• Mutual need and interdependence are
the characteristics that make
manufacturing networks succeed.
Widely practiced network activities
include joint production, education and
training, marketing, product
development, technology transfer, and
purchasing.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Five: Partnering and Strategic
Alliances
• Education and business partnerships
are formed to help organizations
continually improve their people and
how well they interact with process
technologies. Services provided include
on-site customized training, workshops,
seminars, technical assistance, and
consulting.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Six: Quality Culture: Changing
Hearts, Minds and Attitudes
• MAJOR TOPICS
 Understanding What a Quality Culture Is
 Quality Culture versus Traditional
Cultures
 Activating Cultural Change
 Changing Leaders to Activate Change
 Laying the Groundwork for a Quality
Culture

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Six: Quality Culture: Changing
Hearts, Minds and Attitudes
 Learning What a Quality Culture Looks
Like
 Countering Resistance to Cultural
Change
 Establishing a Quality Culture
 Maintaining a Quality Culture

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Six: Quality Culture: Changing
Hearts, Minds and Attitudes
• A quality culture is an organizational
value system that results in an
environment that is conducive to the
establishment and continual
improvement of quality. It consists of
values, traditions, procedures, and
expectations that promote quality.
• Implementing total quality necessitates
cultural change in an organization, for
the following reasons:
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Six: Quality Culture: Changing
Hearts, Minds and Attitudes
 Change cannot occur in a hostile
environment.
 Moving to total quality takes time.
 It can be difficult to overcome the past.
• Change can be difficult because
resisting change is natural human
behavior. In any organization there will
be advocates of change and resisters.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Six: Quality Culture: Changing
Hearts, Minds and Attitudes
• Sometimes advocates focus so intently
on the expected benefits of change that
they fail to realize how the change will
be perceived by potential resisters.
People resist change for the following
reasons:
 Uncertainty
 More work
 Fear
 Loss of Control
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Six: Quality Culture: Changing
Hearts, Minds and Attitudes
• To overcome resistance to change,
advocates can apply the following
strategies:
 Involve potential resisters.
 Avoid surprises.
 Move slowly at first.
 Start small and be flexible.
 Create a positive environment.
 Incorporate the change.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Six: Quality Culture: Changing
Hearts, Minds and Attitudes
 Provide a quid pro quo.
 Respond quickly and positively.
 Work with established leaders.
 Treat people with dignity and respect.
 Be constructive.
• Strategies for establishing a quality
culture include the following:
 Identify the changes needed.
 Put the planned changes in writing.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Six: Quality Culture: Changing
Hearts, Minds and Attitudes
 Develop a plan for making the changes.
 Understand the emotional transition
process.
 Identify key people and make them
advocates.
 Take a hearts and minds approach.
 Apply courtship strategies.
 Support.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• MAJOR TOPICS
 Understanding Who Is a Customer
 Understanding Customer-Defined
Quality
 Identifying External Customer Needs
 Identifying Internal Customer Needs
 Communicating with Customers
 Using Customer Feedback to Make
Design Improvements
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
 Customer Satisfaction Process
 Customer-Defined Value
 Customer Value Analysis
 Customer Retention
 Establishing a Customer Focus
 Recognizing the Customer-Driven
Organization
 Value Perception and Customer Loyalty
 Customer Loyalty Model
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
 Customer Loyalty versus Customer
Profitability
 Customers as Innovation Partners
• Historically, customers were considered
who used a company’s products and
suppliers were outsiders who provided
the materials needed to produce the
products. A more contemporary view is
that every organization has both
internal and external customers.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• An external customer is the one
referred to in the traditional definition.
An internal customer is any employee
whose work depends on that of
employees whose work precedes his or
hers.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• In a total quality setting, customers
define quality. Therefore, customer
satisfaction must be the highest
priority. Customer satisfaction is
achieved by producing high-quality
products that meet or exceed
expectations. It must be renewed with
each purchase.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• The key to establishing a customer
focus is to put employees in touch with
customers so that customer needs are
known and understood.
• The six-step strategy for identifying
customer needs is as follows: speculate
about results, develop an information-
gathering plan, gather information,
analyze the results, check the validity
of conclusions, and take action.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• Customer needs are not static.
Therefore, constant contact with
customers is essential in a total quality
setting. Whenever possible, this
contact should be in person or by
telephone. Written surveys can be
used, but they will not produce the
level of feedback that personal contact
can generate.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• Quality function deployment (QFD) is a
mechanism for putting into operation
the concept of building in quality. It
makes customer feedback a normal
part of the product development
process, thereby improving customer
satisfaction.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• Measuring customer satisfaction alone
is not enough. Many customers who
defect are satisfied. Organizations
should, in addition, measure customer
retention.
• Organizations should go beyond
satisfying customers to creating value
for them in every supplier-customer
interaction.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• The customer loyalty model consists of
four components: 1) business
performance, 2) global perceptions, 3)
loyalty behaviors, and 4) financial
outcomes.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• The goal of organizations should be
more than just earning customer
loyalty; it should be earning the loyalty
of profitable customers. Organizations
should never assume a positive
correlation between customer loyalty
and profitability, nor should they
assume that a customer who is initially
profitable will always be profitable.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• An innovative approach to product
development that is gaining acceptance
is turning customers into innovation
partners. With this approach, the
customer is given a technological tool
kit for designing his or her own
products and making product
innovations. This approach is
implemented using the following steps:

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
 develop a tool kit for customers that is
easy to use
 increase the flexibility of your own
production processes
 carefully select the first customers to
use your took kit
 continually improve your tool kit
 adapt your business practices to suit the
innovation partnership approach.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• In order to retain customers over the
long term in today’s hyper-competitive
global environment, organizations must
innovate. If the key to customer
loyalty is consistently providing
superior value—super quality, superior
cost, and superior service—the key to
providing superior value is innovation.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seven: Customer Satisfaction,
Retention, and Loyalty
• Innovation is how organizations
continually improve the quality and cost
of their products as well as the quality
of their services. It is also how they
continually improve (decrease) the cost
of doing business while increasing the
volume of business they do.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eight: Employee Empowerment

• MAJOR TOPICS
 Employee Empowerment Defined
 Rationale for Empowerment
 Inhibitors of Empowerment
 Management’s Role in Empowerment
 Implementing Empowerment
 How to Recognize Empowered
Employees
 Beyond Empowerment to Enlistment
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eight: Employee Empowerment

• Empowerment means engaging


employees in the thinking processes of
an organization in ways that matter,
involvement means having input.
Empowerment means having input that
is heard and used, and it means giving
employees ownership of their jobs.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eight: Employee Empowerment

• Empowerment requires a change in


organizational culture, but it does not
mean that managers abdicate their
responsibility or authority.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eight: Employee Empowerment

• The rationale for empowerment is that


it is the best way to increase creative
thinking and initiative on the part of
employees. This, in turn, is an
excellent way to enhance an
organization’s competitiveness.
Another aspect of the rationale for
empowerment is that it can be an
outstanding motivator.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eight: Employee Empowerment

• The primary inhibitor of empowerment


is resistance to change. Resistance
may come from employees, unions,
and management. Management-
related inhibitors include fear of losing
control, I’m-the-boss syndrome, status,
outdated management training, old-
school syndrome, and fear of exclusion.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eight: Employee Empowerment

• Management’s role in empowerment is


best described as commitment,
leadership, and facilitation. The kinds
of support managers can provide
include having a supportive attitude,
role modeling, training, facilitating,
employing MBWA, taking quick action
on recommendations, and recognizing
the accomplishments of employees.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eight: Employee Empowerment

• The implementation of empowerment


has four broad steps: creating a
supportive environment; targeting and
overcoming inhibitors; putting the
vehicles in place; and assessing,
adjusting, and improving. Vehicles
include brainstorming, nominal group
technique, quality circles, suggestion
boxes, and walking and talking.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eight: Employee Empowerment

• A workforce that is ready for


empowerment is accustomed to critical
thinking, understands the decision-
making process, and knows where it
fits into the big picture.
• Enlistment is empowerment in which
ownership is not just allowed, but
expected.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

• MAJOR TOPICS
 Leadership Defined
 Leadership for Quality
 Leadership Skills: Inherited or Learned?
 Leadership, Motivation, and Inspiration
 Leadership Styles
 Leadership Styles in a Total Quality
Setting
 Building and Maintaining a Following
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

 Leadership Versus Management


 Leadership and Ethics
 Leadership and Change
 Employees and Managers on Change
 Restructuring and Change
 How to Lead Change
 Lessons from Distinguished Leaders
 Servant Leadership and Stewardship

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

 Negative Influences on Leaders: How to


Counter Them
• Leadership is the ability to inspire
people to make a total, willing, and
voluntary commitment to
accomplishing or exceeding
organizational goals.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

• Good leaders overcome resistance to


change, broker the needs of constituent
groups inside and outside the
organization, and establish an ethical
framework. Good leaders are
committed to both the job to be done
and the people who must do it. They
are good communicators and they are
persuasive. Leaders should learn to
follow first and then lead.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

• The key elements of leadership for


quality are: customer focus, obsession
with quality, recognition of the
structure of work, freedom through
control, unity of purpose, looking for
faults in the systems, teamwork,
continuing education and training, and
emphasis on best practices/peak
performance.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

• Common leadership styles include the


following: democratic, participative,
goal-oriented, and situational. The
appropriate leadership style in a total
quality setting is participative taken to
a higher level.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

• Leadership characteristics that build


and maintain followership are a sense
of purpose, self-discipline, honesty,
credibility, common sense, stamina,
steadfastness, and commitment.
• Leaders can build trust by applying the
following strategies:
 Taking the blame
 Sharing the credit

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

 Pitching in and helping


 Being consistent
 Being equitable.
• To facilitate change in a positive way,
leaders must have a clear vision and
corresponding goals, exhibit a strong
sense of responsibility, be effective
communicators, have a high energy
level, and have the will to change.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

• When restructuring, organizations


should show that they care, let
employees vent, communicate, provide
outplacement services, be honest and
fair, provide for change agents, have a
clear vision, offer incentives, and train.
• The change facilitation model contains
the following steps:
 Develop a compelling change picture

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

 Communicate the change picture to all


stakeholders
 Conduct a comprehensive roadblock
analysis
 Remove or mitigate roadblocks
 Communicate, implement, and
incorporate change.
 Implement the change
 Monitor and adjust

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

• Servant leadership and stewardship go


beyond employee empowerment to
employee autonomy and seek to create
an environment in which employees
perform out of the spirit of ownership
and commitment.
• Leaders can counter the negative
influence of followers by:
 Keeping vision and values uppermost in
their minds
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nine: Leadership and Change

 Looking for disagreement among the


advisors
 Encouraging truth-telling
 Setting the right example
 Following their intuition
 Monitoring delegated work.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

• MAJOR TOPICS
 Overview of Team Building and
Teamwork
 Building Teams and Making Them Work
 Four-Step Approach to Team Building
 Character Traits and Teamwork
 Teams Are Not Bossed—They are
Coached
 Handling Conflict in Teams
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

 Structural Inhibitors of Teamwork


 Rewarding Team and Individual
Performance
 Recognizing Teamwork and Team
Players
 Leading Multicultural Teams
• A team is a group of people with a
common, collective goal. The rationale
for the team approach to work is that
“two heads are better than one.”
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

• A group of people becomes a team


when the following conditions exist:
 There is agreement as to the mission
 Members adhere to ground rules
 There is a fair distribution of
responsibility and authority
 People adapt to change.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

• Teams can be classified as department,


process improvement, and task force
teams. Factors that can promote the
success of a team are:
 Personal identity of team members
 Relationships among team members
 The team’s identity within the
organization.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

• To be an effective team leader, one


should apply the following strategies:
 Be clear on the team’s mission.
 Identify success criteria.
 Be action centered.
 Establish ground rules.
 Share information
 Cultivate team unity.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

• One can be a good team member by


applying the following strategies:
 Gain entry.
 Be clear on the team’s mission.
 Be well prepared and participate.
 Stay in touch.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

• After a team has been formed, a


mission statement should be drafted. A
good mission statement summarizes
the team’s reason for being. It should
be broad enough to allow for the
measure of progress.
• Character traits that promote
successful teamwork are:
 Honesty
 Selflessness
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

 Dependability
 Enthusiasm
 Responsibility
 Cooperativeness
 Initiative
 Patience
 Resourcefulness
 Punctuality
 Tolerance/Sensitivity
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Ten: Team Building and Teamwork

 Perseverance
• Teams are not bossed. They are
coached. Coaches are facilitators and
mentors. They promote mutual respect
among team members and foster
cultural diversity.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

• Employees will not always work well


together as a team just because it’s the
right thing to do. Employees might not
be willing to trust their performance, in
part, to other employees.
• Common structural inhibitors in
organizations are:
 Unit structure
 Accountability

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

 Unit goals
 Responsibility
 Compensation
 Recognition
 Planning
 Control
• Team and individual compensation
systems can be developed in four
steps:
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Ten: Team Building and Teamwork

 Decide what performance to measure.


 Determine how to measure the
performance.
 Identify the rewards to be offered.
 Integrate related processes.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Ten: Team Building and Teamwork

• Challenges faced when leading


multicultural teams include differing: 1)
approaches to decision making, 2)
attitudes toward authority, 3) attitudes
toward work, and 4) approaches to
communicating.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eleven: Effective Communication

• MAJOR TOPICS
 Defining Communication
 Understanding the Role of
Communication in Total Quality
 Understanding Communication as a
Process
 Recognizing Inhibitors of
Communication

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eleven: Effective Communication

 Establishing a Conducive
Communication Climate
 Communicating by Listening
 Understanding Nonverbal
Communication Factors
 Communicating Verbally
 Communicating in Writing
 Communicating Corrective Feedback
 Improving Communication
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Eleven: Effective Communication

 How Interpersonal Skills Affect


Communication
 Personality and Communication
• Communication is the transfer of a
message that is both received and
understood. Effective communication is
a higher order of communication. It
means the message is received,
understood, and being acted on in the
desired manner.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eleven: Effective Communication

• Communication is the oil that keeps the


total quality engine running. Without
it, total quality breaks down.
Communication plays the role of
facilitation in a total quality setting.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eleven: Effective Communication

• Communication is a process that


involves a message, sender, receiver,
and medium. The message is what is
being transmitted (information,
emotion, intent, or something else).
The sender is the originator of the
message, and the receiver is the
person to whom it goes. The medium
is the vehicle used to transfer the
message.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eleven: Effective Communication

• Various factors can inhibit


communication. Prominent among
these are:
 Differences in meaning
 A lack of trust
 Information overload
 Interference
 Premature judgments
 “Kill the Messenger” syndrome
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eleven: Effective Communication

 Condescending tone
 Inaccurate assumptions
 Listening problems.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

• MAJOR TOPICS
 Overview of Education, Training, and
Learning
 Rationale for Training
 Training Needs Assessment
 Providing Training
 Evaluating Training
 Managers as Trainers and Trainees
 Workforce Literacy
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

 Improving Learning
 Why Training Sometimes Fails
 Quality Training Curriculum
 Orientation Training
 Customer Training
 Ethics Training
 Making E-Learning Work

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

• Training is an organized, systematic


series of activities designed to enhance
an individual’s work-related knowledge,
skills, understanding, and motivation.
Training is distinguished from education
by its characteristics of practicality,
specificity, and immediacy. Education
is a broader concept that is more
philosophical and theoretical in nature
than training.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

• Corporate training in the United States


has historically focused more on
managers than on workers. However,
with the advent of total quality, the
focus is beginning to change.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

• Historically, corporate America has not


placed as high a priority on training as
have companies from global
competition. However, with the
increased pressure from global
competition, this attitude is beginning
to change.
• The rationale for training can be found
in the following factors:

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

 Quality of the existing labor pool


 Global competition
 Rapid and continual change
 Technology transfer problems
 Changing demographics
• It is important to place the emphasis of
training on those who need it most and
to ensure that training is designed to
promote the organization’s goals.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

• These requirements are met by


assessing training needs before
providing training. Training needs can
be assessed by observing,
brainstorming, and surveying. Training
needs should be converted to training
objectives that are stated in behavioral
terms.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

• Training can be provided in-house:


 Through corporate-owned education and
training facilities
 In conjunction with colleges,
universities, and professional
organizations
 Via satellite downlinks

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

• Evaluating training begins with a clear


statement of purpose. With a
statement of purpose drafted, the next
step is to ask the following questions:
 Was the training valid?
 Did the employees learn?
 Has the training made a difference?

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Twelve: Education and Training

• Managers who serve as trainers should


understand the principles of learning
and the four-step teaching method:
 Preparation
 Presentation
 Application
 Evaluation

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

• In presenting instruction, trainers


should remember that people learn by
doing. Widely used instructional
approaches are lecture/discussion;
demonstration; teleconference;
simulation; and video-taped
programmed, and interactive video
instruction.
• Functional illiteracy affects business
and industry as follows:
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Twelve: Education and Training

 Difficulty in filling high-skill jobs


 Lower productivity
 Higher levels of waste
 Higher potential for damage to
sophisticated equipment
 More dissatisfied employees
• Before putting employees in training, it
is a good idea to teach them study
skills that will enhance their learning.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Twelve: Education and Training

• They should:
 Learn to make a schedule and stick to
it.
 Have a special place to study.
 Listen and take notes.
 Read assertively.
 Study regularly instead of cramming.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twelve: Education and Training

• When training fails, the reason is often


a lack of participation by management
or insufficient scope (focusing on the
specifics before teaching the big
picture).
• Quality training should be divided into
three broad categories of study:
 Quality Planning
 Quality Control

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Twelve: Education and Training

 Quality Improvement
• Orientation training sometimes fails.
When it does, the cause is usually one
of the following factors:
 Insufficient information
 Too much information
 Conflicting information
• To improve orientation training,
organizations should:
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Twelve: Education and Training

 Base orientation topics on a needs


assessment
 Establish an organizing framework
 Establish learner control
 Make orientation a process rather than
an event
 Allow people and personalities to
emerge
 Reflect the organization’s mission and
culture
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Twelve: Education and Training

 Have a system for improving and


updating
• Topics frequently dealt with in ethics
training programs include:
 Drug and alcohol abuse
 Theft
 Conflicts of interest
 Abuse of expense accounts
 Misuse of company property
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Twelve: Education and Training

 Kickbacks
 Bribery
 Improper relations with government
officials
 False advertising
• E-learning works, but when learning
coaches and mentors are provided.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• MAJOR TOPICS
 Internal Politics Defined
 Power and Politics
 Organizational Structure and Internal
Politics
 Internal Politics in Action
 Internal Politicians and their Methods

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

 Impact of Internal Politics on Quality


 Controlling Internal Politics in
Organizations
 Overcoming Negativity in Organizations
 Overcoming Territorial Behavior in
Organizations
 Managing Conflict in Organizations

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• Internal politics consists of activities


undertaken to gain advantage or
influence organizational decision
making in ways intended to serve a
purpose other than the best interests of
the overall organization. It is the
games people play to promote
decisions that are based on criteria
other than merit.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• Organizational structure is not the


cause of internal politics. All of the
widely used organizational structures
are susceptible to internal politics.
• Several concepts—personal insecurity,
self-interest, a hunger for power,
ambition, ego, and the need for
acceptance—are the primary drivers of
internal politics.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• The most commonly used methods of


internal politicians are as follows:
lobbying, building coalitions, applying
harassment and pressure,
electioneering, gossiping, and
spreading rumors.

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Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• The rationale for collaboration is found


in the debilitating effect internal politics
can have on an organization. Internal
politics can drain an organization of its
intellectual and physical energy and in
the process take way its ability to
compete.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• An organization’s effort to control


internal politics should have at least the
following components: strategic
planning, leadership,
reward/recognition, performance
appraisal, customer focus, conflict
management, and culture.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• The most common categories of


negative behavior are control disputes;
territorial (boundary) disputes;
dependence and independence issues;
need for attention; and responsibility,
authority, and loyalty issues.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• The following symptoms are indicators


of negativity in the workplace: “I can’t”
attitudes, “they” mentality, critical
conversation, and blame-fixing among
employees.
• To overcome negativity, organizations
should communicate, establish clear
expectations, provide opportunities for
anxiety venting, build trust, and involve
employees.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• Territorial behavior in organizations


manifests itself in the following ways:
occupation, information manipulation,
intimidation, alliances, invisible walls,
strategic noncompliance, discredit,
shunning, camouflage, and
filibustering.
• The following strategies will help when
trying to overcome territorial behavior:

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

 Avoid jumping to conclusions


 Attribute the behavior to instinct rather
than people
 Ensure that employees don’t feel
attacked
 Avoid generalizations, understand
irrational fears
 Respect each individual’s perspective
 Consider the employee’s point of view.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• Causes of workplace conflict include:


 Limited resources
 Incompatible goals
 Role ambiguity
 Different perspectives
 Poor communication

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Thirteen: Overcoming Politics,
Negativity, and Conflict in the Workplace

• Managers have two responsibilities


regarding conflict in the workplace:
 Conflict resolution
 Conflict stimulation
• Conflict should be stimulated to
overcome excessive compliance and
complacency.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
• MAJOR TOPICS
 ISO 9000: The International Standard
for Quality Management Systems
 ISO 9000’s Objective
 How ISO 9000 Is Applied to
Organizations
 The ISO 9000 Quality Management
System: A Definition
 Authority for Certification/Registration
 ISO 9000 Registration Statistics
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
 Organizational Registration to ISO 9001
 The Benefits of ISO 9000
 The Origin of ISO 9000
 Comparative Scope of ISO 9000 and
Total Quality Management
 Management Motivation for Registration
to ISO 9001
 ISO 9000 and Total Quality
Management Working Together
 The Future of ISO 9000
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
• ISO is based on eight principles:
customer focus, leadership,
involvement of people, process
approach, system approach to
management, continual improvement,
factual approach to decision making,
and mutually beneficial supplier
relationships.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
• The overall aim of ISO 9000 is to make
registered organizations more
competitive.
• ISO 9000 is applied to organizations on
a volunteer basis. It tells the
organization what they must do to
conform but not how to do it.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
• The quality management system must
include the following: a quality policy,
the quality manual, quality objectives,
and forms and records.
• In order for an organization to become
an ISO 9000 registrar, it must be
approved by an accrediting body such
as the International Accreditation
Forum (IAF).

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
• The most widely used industry-specific
applications of ISO 9001 are TickIT, AS
9000, PS 9000, ISO/TS 16949, TL
9000, ISO 13485, and ISO/TS 29001.
• ISO registration can benefit an
organization by improving customer
satisfaction, costs, risk management,
and, in turn, competitiveness.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
• The various updates to ISO 9000 are
ISO 9000-1987, ISO 9000-1994, ISO
9001-2000, ISO 9001-2008, and ISO
9001-2015.
• The key issue in the 2015 update is
“risk.”
• The following statements describe the
relationship between ISO 9000 and
TQM:
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Fourteen: ISO 9000 and Total
Quality: The Relationship
 ISO 9000 and TQM are not completely
interchangeable: ISO 9000 is
compatible with, and can be a subset of
TQM; ISO 9000 is frequently
implemented in a non-TQM
environment; ISO 9000 can improve
operations in a traditional environment;
ISO 9000 may be redundant in a
mature TQM environment; and ISO
9000 and TQM are not in competition.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
• The origins of ISO 9000 and total
quality management are vastly
different. ISO 9000 was developed in
response to the need to harmonize
dozens of national and international
standards relating to quality. Total
quality got its start in Japan around
1950 as a way to help that nation
compete in the international
marketplace.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
• The new aim of ISO 9000 is to enable
organizations to better serve their
customers and to be more competitive
through adherence to the standard’s
eight quality management principles.
• Appropriate motivations for
implementing ISO 9000 are as follows:
 To improve operations
 To improve or create a quality
management system
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Fourteen: ISO 9000 and Total
Quality: The Relationship
 To improve the consistency of quality
 To improve customer satisfaction
 To improve competitive posture
 To conform to the requirements of
customers.
• The appropriate motivation for
implementing TQM is a desire to
continually improve all aspects of an
organization.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fourteen: ISO 9000 and Total
Quality: The Relationship
• ISO 9000 and TQM are compatible in
that ISO 9000 can be a complementary
subset of TQM. ISO 9000 can give an
organization a head start in
implementing TQM.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• MAJOR TOPICS
 Total Quality Tools Defined
 The Pareto Chart
 Cause-and-Effect Diagrams
 Check Sheets
 Histograms
 Scatter Diagrams
 Run Charts and Control Charts
 Stratification
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Fifteen: Overview of Total Quality
Tools
 Some Other Tools Introduced
 Management’s Role in Tool Deployment
• Pareto charts are useful for separating
the important from the trivial. They
are named after Italian economist and
sociologist Vilfredo Pareto. Pareto
charts are important because they can
help an organization decide where to
focus limited resources.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• The Pareto Principle holds that a few
significant causes lead to the majority
of problems.
• The cause-and-effect diagram was
developed by the late Dr. Kaoru
Ishikawa, a noted Japanese quality
expert; others have thus called it the
Ishikawa diagram. Its purpose is to
help identify and isolate the causes of
problems.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• It is the only one of the seven basic
quality tools that is not based on
statistics.
• The check sheet is a tool that facilitates
collection of relevant data, displaying it
in a visual form easily understood by
the brain. Check sheets make it easy
to collect data for specific purposes and
to present it in a way that automatically
converts it into useful information.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• Histograms have to do with variability.
Two kinds of data are commonly
associated with processes: attributes
data and variables data. An attribute is
something that the output product of
the process either has or does not
have. Variables data are data that
result when something is measured.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• A histogram is a measurement scale
across one axis and a frequency of like
measurements on the other.
• The scatter diagram is arguably the
simplest of the seven basic quality
tools. It is used to determine the
correlation between two variables. It
can show a positive correlation, a
negative correlation, or no correlation.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• Stratification is a tool used to
investigate the cause of a problem by
grouping data into categories.
Grouping of data by common element
or characteristic makes it easier to
understand the data and to draw
insights from them.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• In the context of the seven total quality
tools, run charts and control charts are
typically thought of as being one tool
together. The control chart is a more
sophisticated version of the run chart.
The run chart records the output results
of a process over time. For this reason,
the run chart is sometimes called a
trend chart.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• The weakness of the run chart is that it
does not tell whether the variation is
the result of special causes or common
causes. This weakness gave rise to the
control chart.
• On such a chart, data are plotted just
as they are on a run chart, but a lower
control limit, an upper control limit, and
a process average are added.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• The plotted data stays between the
upper control limit and lower control
limit while varying about the center line
or average only so long as the variation
is the result of common causes such as
statistical variation.
• Other useful quality tools are five-S,
flowcharts, surveys, failure mode and
effects analysis (FMEA), and design of
experiments (DOE).
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• Five-S is used to eliminate waste and
reduce errors, defects, and injuries.
Flowcharts are used in a total quality
setting for charting the inputs, steps,
functions, and outflows of a process to
understand more fully how the process
works and who or what has input to
and influence on the process, what its
inputs and outputs are, and even its
timing.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• The survey is used to obtain relevant
information from sources that
otherwise would not be heard from in
the context of providing helpful data.
Failure mode and effects analysis
(FMEA) tries to identify all possible
potential product or process failures
and prioritize them for elimination
according to their risk.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Fifteen: Overview of Total Quality
Tools
• Design of experiments (DOE) is a
sophisticated method for experimenting
with complex processes for the purpose
of optimizing them.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• MAJOR TOPICS
 Problem Solving for Total Quality
 Two Models for Solving and Preventing
Problems
 Solving and Preventing Problems
 Problem-Solving and Decision-Making
tools
 Decision-Making for Total Quality
 The Decision-Making Process
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
 Objective versus Subjective Decision-
Making
 Scientific Decision-Making and Problem
Solving
 Employee Involvement in Decision-
Making
 Role of Information in Decision-Making
 Using Management Information
Systems (MIS)
 Creativity in Decision-Making
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• Decision Making is the process of
selecting one course of action from
among two or more alternatives.
Decisions should be evaluated not just
by results but also by the process used
to make them.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• A problem is a situation in which what
exists does not match what is desired
or, put another way, the discrepancy
between the current and the desired
state of affairs. Problem solving in a
total quality setting is not about putting
out fires. It is about continual
improvement.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• Two effective problem-solving models
are the Deming Cycle and the Toyota
Practical Problem-Solving Process.
• Securing reliable information is an
important part of problem solving and
decision making. W. Edward Deming
recommended the use of the following
tools:
 Cause-and-effect diagrams
 Flowcharts
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Sixteen: Problem Solving and
Decision Making
 Pareto charts
 Run charts
 Histograms
 Control charts
 Scatter diagrams
• The decision-making process is a
logically sequenced series of activities
through which decisions are made.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• These activities include identifying or
anticipating the problem; gathering
relevant facts; considering alternative
solutions; choosing the best
alternative; and implementing,
monitoring, and adjusting. All
approaches to decision making are
objective, subjective, or a combination
of the two.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• Scientific decision-making means
making decisions based on data rather
than on hunches. Complexity in
scientific decision making means
nonproductive, unnecessary work that
results when organizations try to
improve processes in a haphazard,
nonscientific way.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• The different types of complexity
include errors and defects, breakdowns
and delays, inefficiency, and variation.
• There are advantages and
disadvantages to employee
involvement. Techniques to enhance
group decision-making are
brainstorming, NGT, and teams.
Managers should be prepared to
counteract groupshift and groupthink.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• Information is data that have been
converted into a usable format that is
relevant to the decision-making
process. Decision makers are receivers
of information who base decisions in
whole or in part on what they receive.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• Technological developments have
introduced the potential for information
overload, or the condition that exists
when people receive more information
than they can process in a timely
manner.
• A management information system
(MIS) is a system used to collect, store,
process, and present information. Such
a system has three components:
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Sixteen: Problem Solving and
Decision Making
 hardware, software, and people. A
management information system can do
an outstanding job of providing
information about predictable and
routine matters. However, many
decisions that managers have to make
concern problems that are not
predictable for which no data are
tracked.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• Creativity is an approach to problem
solving and decision-making that is
imaginative, original, and innovative.
The creative process proceeds in four
stages:
 Preparation
 Incubation
 Insight
 Verification.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• Factors that inhibit creativity include:
 Looking for just one right answer
 Being too logical
 Avoiding ambiguity
 Avoiding risk
 Forgetting how to play
 Fearing rejection
 Saying “I’m not creative.”

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Sixteen: Problem Solving and
Decision Making
• Three strategies for helping people
think creatively are
 Idea vending
 Listening
 Idea attribution

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
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Seventeen: Quality Function
Deployment
• MAJOR TOPICS
 What Is Quality Function Deployment?
 Introducing Quality Function
Deployment’s House of Quality
 Developing the Set of Customer Needs
(WHATs): House of Quality Matrix
Number 1
 Planning the Improvement Strategy:
House of Quality Matrix Number 2

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
 Selecting the Technical Requirements
(HOWs): House of Quality Matrix
Number 3
 Evaluating Interrelationships between
WHATs and HOWs: House of Quality
Matrix Number 4
 Evaluating the Direction of Correlation
between HOWs: House of Quality Matrix
Number 5

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
 Selecting the Design Targets (Values) of
the HOWs: House of Quality Matrix
Number 6
• Quality function deployment (QFD) is a
specialized method for making
customer needs/wants important
components of the design and
production of the product or service.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Developed by Dr. Yoji Akao in 1966,
QFD combines quality strategies with
“function deployment” from the field of
Value Engineering. In a sense, with
QFD the customer—the potential user
of the product—becomes part of the
design team.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Introducing QFD’s
House of Quality
(HOQ) The heart of
QFD is the set of
interrelated matrices
known as the House
of Quality (HOQ), so
named because the
complete matrix takes
on the appearance of
a house.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Matrix Number 1—Customer Needs
(Wants), also called Voice of the
customer (VOC)
• Customer “Needs” input data are
collected, refined and prioritized in this
matrix.
• Affinity and Tree Diagrams are useful
tools for refining customer needs data.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Coming out of this analysis of needs is
an estimate of importance to the
customer.
• Matrix 1 might look like this:

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Matrix Number 2—Planning the
Improvement Strategy.
 Competitive Benchmarking of our
product vs. competing products.
 Establish desired customer satisfaction
goal for each need.
 Establish Improvement Factors, Sales
Points, and Weighting.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Matrix Number 3—Selecting the
Technical Requirements (HOWs)
 Lists characteristics and features of a
product perceived as meeting the
customer needs. (They are not design
specs.)
 Developed using Matrices 1 and 2.
State HOW we’ll meet customer
requirements.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Matrix Number 4—Evaluating
Interrelationships between the WHATs
and HOWs.
 At each intersection of a WHAT row with
a HOW column an estimate of strong,
medium, weak, or nonexistent
relationship is entered.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Matrix Number 5—Evaluates the
Correlation (supportive or impeding)
between the Technical Requirements
(HOWs).
 Each diagonal intersection of HOW
columns in the roof triangle is given a
plus sign (for supportive), or minus sign
(for impeding) correlation between the
two HOWs. If there is no correlation the
intersection is left blank.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
 Examining each intersection assures
that all important factors are
considered.
• Matrix Number 6—Selecting Design
Targets of the Technical Requirements.
• The customer requirements describe
WHAT the customer needs, and the
design requirements tell HOW the
company is going provide the product
characteristics
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
• Necessary to address those needs, and
these design targets specify HOW
MUCH of the characteristic needs to
be provided.
• Design Targets has 3 sections:
 Technical Priorities (from data already in
the HOQ).
 Technical Benchmarking (newly
developed data).

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment
 Design Target Values (developed from
the previous two).

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Seventeen: Quality Function
Deployment

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• MAJOR TOPICS
 Statistical Process Control Defined
 Rationale for SPC
 Control Chart Development
 Management’s Role in SPC
 Role of the Total Quality Tools
 Authority over Processes and Production
 Implementation and Deployment of SPC
 Inhibitors of SPC
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Definition: SPC is a statistical method


of separating special-cause variation
from natural variation to eliminate the
special causes and establish and
maintain consistency in the process,
enabling process improvement .

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• The origin of SPC was in the work of Dr.


Walter Shewhart at Bell Laboratories
1931. Although SPC was ignored in the
West after World War II, Japan adopted
and subsequently developed it into
total quality.
• The rationale for SPC includes the
following:
 Enables the control of process variation.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

 Makes possible continual improvement


of the process.
 Results in predictability of processes.
 Results in elimination of waste.
 Makes less expensive inspection modes
possible.
• SPC is essential today to elevate the
quality of products and services while
lowering costs in order to compete
successfully in world markets.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Control Chart Development:


• There are several types of control
charts, the choice of which being
determined by the kind of process
under consideration. Further, some
control charts are designed for
variables data (something measured),
others are concerned with attributes
data (something that can be counted).

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Different procedures are used for


developing these two types of control.
Both require Upper Control Limits (UCL)
and Lower Control Limits (LCL) and a
Process Average.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Upper and Lower Control Limits and


Process Average calculations for
constructing the control chart are made
from the actual process data, which
must be of sufficient quantity, and
taken over a relatively short period.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• After drawing the blank control chart


with UCL, LCL and process average, the
data from which the calculations were
made are plotted on the chart. No data
points can penetrate UCL or LCL, and
there must be no long runs of data on
one side of the process average. That
will only be true if the process is free of
special causes of variation. If that is
the case, the chart is ready for use.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Continual improvement of processes


requires that special causes be
eliminated first. Process improvement
narrows the shape of the process’s bell
curve, resulting in less variation.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Continual improvement is a key


element of SPC and total quality. SPC
enhances the predictability of processes
and whole plants. Elimination of waste
is another key element of SPC. SPC
can help improve product quality while
reducing product cost.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• SPC makes sampling inspection more


reliable. SPC supports process auditing
as a substitute for more expensive
inspection. SPC requires a capability in
statistics, either in-house or through a
consultant. Process operators should
be key players in any SPC program.
Understanding the process is a
prerequisite to SPC implementation.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• All employees involved in SPC must be


trained for their involvement.
Measurement repeatability and
reproducibility is essential for SPC.
• Management’s role in SPC is similar to
its role in total quality overall:
commitment, providing training, and
involvement.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• The seven tools, augmented by


flowcharting, five-s, FMEA and DOE are
required for SPC. SPC and the operator
must have process-stop authority, SPC
implementation must be carried out in
an orderly, well thought-out sequence.
• SPC requires collaborative team
activity.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• The quality tools are used in SPC before


the control chart is developed as aids in
helping to eliminate special causes of
variability.
• Operators who use SPC must have the
authority to stop the production
process when SPC tells them something
is wrong.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• The three broad phases of the process


for implementing/deploying SPC are
preparation, planning, and execution.
Each of these phases consists of
several steps.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Common inhibitors of SPC include


insufficient expertise/capabilities,
misdirected responsibility for SPC,
failure to understand the target
process, failure to have processes
under control, inadequate training and
discipline, measurement
repeatability/reproducibility, and low
production rates.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Implementation and Deployment of


SPC
• Requires commitment and time of
management and other key personnel.
• Requires some expertise in statistics.
• Must be done in a well planned, orderly
process. (Roadmap on page 329)
• Inhibitors of SPC

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Lacking statistics expertise. May have


to bring in outside help.
• Assigning SPC responsibility to the
wrong person/group. The process
operator should “own” SPC on his
process.
• Failing to understand how the process
really works. Imperative that the
process be accurately flowcharted first.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Trying to implement SPC while the


process still has special cause variation.
Process needs to be cleaned up as
much as possible before trying to make
control charts.
• Inadequate training and lack of
discipline in process operation. Users
need training, and process procedures
must be followed.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Eighteen: Optimizing and Controlling Processes
through Statistical Process Control (SPC)

• Measurement repeatability and


reproducibility lacking.
Instrumentation and procedures must
be made repeatable and reproducible.
Otherwise data is not reliable.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• MAJOR TOPICS
 Rationale for Continual Improvement
 Management’s Role in Continual
Improvement
 Essential Improvement Activities
 Structure for Quality Improvement
 The Scientific Approach
 Identification of Improvement Needs

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

 Development of Improvement Plans


 Common Improvement Strategies
 Additional Improvement Strategies
 The Kaizen Approach
 Goldratt’s Theory of Constraints
 The CEDAC Approach
• The Lean Approach
• The Six Sigma Approach
• The Lean Sigma Approach
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• The Theory of Contraints (TOC) and


Integrated TOC, Lean, Six Sigma (iTLS)
Approach
• The rationale for continual
improvement is that it is necessary in
order to compete in the global
marketplace. Just maintaining the
status quo, even if the status quo is
high quality, is like standing still in a
race.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• Management’s role in continual


improvement is leadership. Executive-
level managers must be involved
personally and extensively. The
responsibility for continual
improvement cannot be delegated.
• Essential improvement activities include
the following:
 Maintaining communication
 Correcting obvious problems
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

 Looking upstream for causes – not


symptoms
 Documenting problems and progress
 Monitoring change
• Structuring for quality improvement
involves the following:
 Establishing a quality council
 Developing a statement of
responsibilities
 Establishing the necessary
infrastructure
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• Using the scientific approach means:


 Collecting meaningful data
 Identifying root causes of problems
 Developing appropriate solutions
 Planning and making changes.
• Ways of identifying improvement needs
include the following:
 Multivoting (brainstorming) for
improvement candidates
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

 Identifying customer needs


 Studying how employee time is spent.
 Localizing problems before trying to
solve them.
• Developing improvement plans involves
the following steps:
 Understanding the process (Flow chart
the process)
 Eliminating any obvious errors
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

 Removing slack from processes


(anything that serves no purpose)
 Reducing variation in processes (special
and common causes)
 Planning for continual improvement to
become a way-of-life.
• Commonly used improvement
strategies include the following:
 Describing the process and correcting
obvious problems
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

 Standardizing the process (make sure


the process procedures are followed)
 Eliminating errors and potential errors in
the process
 Streamlining the process (eliminating
non-value-adding steps)
 Reducing sources of variation
 Bringing the process under statistical
control
 Improving the design of the process.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• Additional improvement strategies


include the following:
 Reducing leadtime
 Flowing production
 Using group technology
 Leveling production
 Synchronizing production
 Overlapping production
 Using flexible scheduling
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

 Using pull control


 Using visual control
 Using stockless production
• Additional improvement strategies
include the following:
 Using jidoka
 Reducing setup time
 Controlling work-in-process
 Improving quality
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

 Applying total cost cycles


 Using cost curves
 Using supplier partners
 Applying total productive maintenance
• Kaizen is the name given by the
Japanese to the concept of continual
incremental improvement.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• It is a broad concept that encompasses


all of the many strategies for achieving
continual improvement and entails the
following five elements:
 Straighten up (getting rid of any tools,
materials, etc. not required)
 Put things in order (so when a tool is
needed, it is readily available)
 Clean up (keeping the workplace neat
and clean
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

 Standardize (on the best practices)


 Discipline (everyone adheres to the
work procedures)
• CEDAC is an acronym for Cause-and-
Effect Diagram with the Addition of
Cards. (This acronym is a registered
trademark of Productivity, Inc.)

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• With CEDAC, a cause-and-effect


diagram is developed, but fact cards
about problems and improvement cards
containing ideas for solving the
problems are used.
• The Lean Approach is based on the
just-in-time Toyota Production System
(TPS).

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• A Lean operation is one in which a


better product is developed or a better
service is delivered using less of
everything required (i.e. human,
financial, technological, and physical
resources). Lean is about being flexible
enough to get the right things, to the
right place, at the right time, in the
right amounts.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• Lean is focused on elimination of all


wastes, and continual improvement of
products and processes.
• Six Sigma is a statistically based
approach that targets the defect rate at
3.4 per million or less. Key elements of
Six Sigma include the DMAIC roadmap
and an infrastructure of Green Belts,
Black Belts, Master Black Belts, and
Champions.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• Like other approaches, Six Sigma aims


for quality improvement, but goes
further to tie these quality
improvement initiatives to the financial
elements of the organization.
• The Lean Six Sigma approach is not a
low calorie variation of Six Sigma, but a
linking of JIT/Lean and Six Sigma that
synergistically combine the benefits of
both.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Nineteen: Continual Improvement Methods
with Six Sigma, Lean, and Lean Six Sigma

• The Theory of Constraints (TOC) and


Integrated TOC, Lean, Six Sigma (iTLS)
approach. focuses on the few critical
elements that limit performance of the
organization by applying Theory of
Constraints tools, eliminates waste with
application of Lean tools, and reduces
variability to ensure process
performance and stability with Six
Sigma tools.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

• MAJOR TOPICS
 Benchmarking Defined
 Benchmarking versus Reengineering
 Rationale for Benchmarking
 Prerequisites to Benchmarking
 Obstacles to Successful Benchmarking
 Role of Management in Benchmarking
 Benchmarking Approach and Process

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

• Benchmarking is a process for


comparing an organization’s operations
or processes with those of a best-in-
class performer.
• The objective of benchmarking is major
performance improvement for an
inferior process
• Benchmarking focuses on processes
and practices, not products.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

• Benchmarking is done between


consenting organizations.
• Benchmarking partners are frequently
from different industries.
• Benchmarking is a component of total
quality.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

• When continual incremental


improvement of a process isn’t enough,
benchmarking may be the best route
to the needed improvement.
• Benchmarking offers the best chance
for success, but if benchmarking is not
possible, process reengineering might
be considered.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

• The rationale for benchmarking is that


it makes no sense to stay locked in an
isolated laboratory trying to invent a
new process when that process already
exists.
• Prerequisites to benchmarking include:
 Will and commitment by top
management.
 Alignment with vision and strategic
objectives.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

 Openness to new ideas.


 Knowing which processes are the
important ones, and understanding
them.
 Processes documented.
• Obstacles to successful benchmarking
include:
 Lacking needed skills (analysis,
research, communication).

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

• The benchmarking approach and


process includes the following:
 Obtaining commitment of top
management.
 Baselining your processes
(Flowcharting).
 Identifying your weak processes and
documenting them.
 Selecting the processes to be
benchmarked.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

 Forming the benchmarking teams.


 Researching the best-in-class.
 Selecting candidates for best-in-class
partnering.
 Forming benchmarking agreements with
partners.
 Collecting the process data/information.
 Analyzing the data and establishing the
performance gap.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

 Planning action to close the gap or


surpass.
 Implementing the change(s) to the
process.
 Monitoring the results.
 Updating the benchmarks, and
continuing the cycle.
• Benchmarking teams must include
those who operate the processes.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

• Benchmarking is not restricted within


industry boundaries, but only to best-
in-class processes.
• It is necessary for the benchmarker to
understand its own process before
comparing it with another.
• Because best-in-class is dynamic,
benchmarking should be seen as a
never-ending process.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty: Benchmarking

• Management has a key role in the


benchmarking process, including
commitment to change, making funds
available, authorizing human resources,
being actively involved, and
determining the appropriate level of
disclosure.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty One: Just-in-Time/Lean
Manufacturing (JIT/Lean)
• MAJOR TOPICS
 What Do We Call It?
 Just-in-Time/Lean Defined
 Rationale for JIT/Lean
 Development of JIT/Lean
 Relationship of JIT/Lean to Total Quality
and World-Class Manufacturing
 Benefits of JIT/Lean
 Requirements of JIT/Lean
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty One: Just-in-Time/Lean
Manufacturing (JIT/Lean)
 Automation and JIT/Lean
• JIT/Lean is a management philosophy
that seeks to eliminate all forms of
waste. As a production system,
JIT/Lean produces only what is needed,
when it is needed, in the quantity
needed.
• The root justification for JIT/Lean is
improved product quality with lower
costs.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty One: Just-in-Time/Lean
Manufacturing (JIT/Lean)
• JIT/Lean began as a means of reducing
the seven wastes. JIT/Lean is a pull
system whose small lot production is
supported by reduced setup times.
Total productive maintenance and
statistical process control were
integrated to provide the necessary
production reliability and predictability.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty One: Just-in-Time/Lean
Manufacturing (JIT/Lean)
• Continual improvement provides the
vehicle for the relentless attack on all
wastes and improvement of product
quality.
• JIT/Lean is at its best as a part of a
total quality system. Results can be
severely restricted when JIT/Lean is
operated without the total quality
umbrella.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty One: Just-in-Time/Lean
Manufacturing (JIT/Lean)
• Inventory reduction, shortened cycle
time, continual improvement of
processes and products, and
elimination of wastes are all inherent
benefits of JIT/Lean.
• JIT/Lean has a different set of
requirements from traditional
production systems:
 New skills training

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty One: Just-in-Time/Lean
Manufacturing (JIT/Lean)
 Rationalizing production flow for the pull
system
 Empowering operators to take
advantage of JIT/Lean’s visibility
features
 Guarding against bottleneck
vulnerability through TPM
 Process capability study, SPC, and
continual improvement
 Small lot sizes and short setup times
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty One: Just-in-Time/Lean
Manufacturing (JIT/Lean)
 Close working relationships with
superior suppliers
• Although JIT/Lean is compatible with
automation, some of the world’s best
plants use JIT/Lean with very little
automation.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty One: Just-in-Time/Lean
Manufacturing (JIT/Lean)
• World-class manufacturing employs
JIT/Lean as an integral part of a total
quality system, producing the highest
quality products at competitive prices.
It is not related to the presence or
absence of automation.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
• MAJOR TOPICS COVERED
 Rationale for Change
 Requirements for Implementation
 Role of Top Management: Leadership
 Role of Middle Management
 Viewpoints of Those Involved
 Implementation Variation Among
Organizations

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
 Implementation Approaches to Be
Avoided
 An Implementation Approach that
Works
 Getting On With It
 What to Do in the Absence of
Commitment from the Top
 Implementation Strategies: ISO 9000
and Baldrige

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
• The traditional way of doing business
presents the following problems:
 We are bound to a short-term focus.
 Tends to be arrogant rather than
customer-focused.
 We seriously underestimate the
potential contribution of our employees,
particularly those in hands-on functions.
 The traditional approach equates better
quality with higher cost.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
 The traditional approach is short on
leadership and long on bossmanship.
• The requirements for implementation
are as follows:
 Commitment by top management
 Creation of an organization-wide
steering committee
 Planning and publicizing

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
 Establishing an infrastructure that
supports deployment and continual
improvement
• The role of top management can be
summarized as providing leadership
and resources. The role of middle
management is facilitation.
• Implementation approaches that should
be avoided are as follows:

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
 Don’t train all employees at once.
 Don’t rush into total quality by putting
too many people in too many teams too
soon.
 Don’t delegate implementation
 Don’t start an implementation before
you are prepared.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
• Although implementation must vary
with each organization, the 20
fundamental steps must be followed,
generally in the order given. Tailoring
to the organization’s specific culture,
values, strengths, and weaknesses is
done in the planning phase, steps 12
through 16.
• Implementation phases are as follows:

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
 Preparation phase
 Planning phase
 Execution phase
• Going through the ISO 9000
registration steps will give an
organization a good start on
implementing total quality.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
• ISO 9000 is an international standard
for providers of goods and services that
sets broad requirements for the
assurance of quality and for
management’s involvement.
• The Malcolm Baldrige National Quality
Award evaluates candidates for the
award according to criteria in several
categories as follows:
 Leadership
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Twenty Two: Implementing Total
Quality Management
 Strategic planning
 Customer focus
 Measurement, analysis, and knowledge
management
 Workforce focus
 Operation focus
 Results

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved