UNIT 7

Healthcare
Operations
Management
PHHA 424
Health Care Operations Management
Department of Health Services Management
College of Public Health, University of Hail
 Unit 7

MANAGEMENT OF QUALITY
 LEARNING OBJECTIVES
•Upon completion of this unit, the student should be able to:

– 9) Name the different quality awards.

– 1) Describe the evolution of quality
management.
– 10) List the different quality certifications.
– 2) Name the quality gurus.
– 11) Discuss Total Quality Management.
– 3) Discuss the dimensions of quality.
– 12) Discuss the Six Sigma process.
– 4) List the determinants of quality.
– 13) Discuss problem solving.
– 5) Enumerate the responsibilities for
quality.
– 14) Describe process improvement.

– 6) Discuss the consequences of poor

quality. – 15) Enumerate the different quality tools.
– 7) Describe the cost of quality.
– 16) Name the different methods for
– 8) Discuss ethics and quality generating ideas.
management.
 DEFINITION OF QUALITY

Quality refers to the ability of a product or service to

consistently meet or exceed customer expectations.
 THE Leaders in QUALITY Concepts

• (1) Walter Shewhart

– Recognized as the
“Father of Statistical
Quality Control.”

– He developed methods
for analyzing the output
of industrial processes to
determine when
corrective action was
necessary.
 THE Leaders in QUALITY Concepts
• (2) W. Edwards Deming

– He compiled the famous

list of 14 points needed to
achieve quality in an
organization.

– He stressed need to reduce

variation in output by
distinguishing between
special and common
causes of variation.
 THE Leaders in QUALITY Concepts

• (3) Joseph M. Juran

– He viewed quality as
fitness-for-use.

– He described quality
management in terms of
a trilogy consisting of:
• (a) quality planning;
• (b) quality control; and
• (c) quality improvement.
 THE Leaders in QUALITY Concepts

• (4) Armand Feigenbaum

– He recognized that quality

was not simply a collection
of tools and techniques,
but a “total field.”

– He saw that when

improvements are made in
a process, other areas of
the company also achieved
improvements.
 THE Leaders in QUALITY Concepts

• (5) Philip B. Crosby

– He developed the
concept of zero defects
and popularized the
phrase, “Do it right the
first time.”

– He published the book

entitled “Quality is Free”
in 1979.
 THE Leaders in QUALITY Concepts

• (6) Kaoru Ishikawa

– He developed the cause-

and-effect diagram for
problem solving.

– He implemented quality
circles which involve
workers in quality
improvement.
 THE Leaders in QUALITY Concepts

• (7) Genichi Taguchi

– He is best known for the

Taguchi loss function.

– This involves a formula

for determining the cost
of poor quality.
 THE Leaders in QUALITY Concepts

• (8) Taiichi Ohno and Shigeo

Shingo

– They both developed the

philosophy and methods
of kaizen, a Japanese
term for continuous
improvement at Toyota.
 DIMENSIONS OF QUALITY

(1) Performance
(5) Reliability
• The main characteristics of the
product or service. • The consistency of
performance.
(2) Aesthetics
• The appearance, feel, smell, (6) Durability
taste. • The useful life of a product
or service.
(3) Special Features
• The extra characteristics.
(7) Perceived Quality
(4) Conformance • The indirect evaluation of
• How well the product or service quality (i.e., reputation).
conforms to customer’s (8) Serviceability
expectations. • Service after sale.
 EXAMPLES OF SERVICE QUALITY

DIMENSION EXAMPLES
(1) Tangibles Were the facilities clean, personnel neat?
(2) Convenience Was the service center conveniently located?
(3) Reliability Was the problem fixed?
(4) Responsiveness Were customer service personnel willing and
able to answer questions?
(5) Time How long did the customer wait?
(6) Assurance Did the customer service personnel seem
knowledgeable about the repair?
(7) Courtesy Were customer service personnel and the
cashier friendly and courteous?
 RESPONSIBILITY FOR QUALITY

• (1) Top Management

– While establishing
strategies for quality,
top management must
institute programs to
improve quality.
 RESPONSIBILITY FOR QUALITY

• (2) Design

– This includes not only

features of the product
or service but also
attention to the
processes to produce
the product or service.
 RESPONSIBILITY FOR QUALITY

• (3) Procurement

– The procurement
department has
responsibility for
obtaining goods and
services that will uphold
quality of the
organization’s goods and
services.
 RESPONSIBILITY FOR QUALITY

• (4) Quality Assurance

– This is responsible for

gathering and analyzing
data on problems and
working with operations
to solve problems.
 RESPONSIBILITY FOR QUALITY

• (5) Packaging and Shipping

– This department must

ensure that goods are
not damaged in transit
and shipping occurs in a
timely manner.
 RESPONSIBILITY FOR QUALITY

• (6) Marketing and Sales

– This department has the

responsibility to
determine customer
needs and communicate
them to appropriate
areas of the
organization.
 RESPONSIBILITY FOR QUALITY

• (7) Customer Service

– This department has the

responsibility to:
• (7.1) communicate
problems to appropriate
departments;
• (7.2) deal with customers
in a reasonable manner;
• (7.3) work to resolve
problems; and
• (7.4) follow-up on
solutions to the problem.
DEFINITION OF TOTAL QUALITY MANAGEMENT

• A philosophy that involves

everyone in an organization
in a continual effort to
improve quality and achieve
customer satisfaction.
 ELEMENTS OF TOTAL QUALITY MANAGEMENT

TQM ELEMENTS
(1) Continual Improvement (6) Knowledge of Tools
(2) Competitive Benchmarking (7) Supplier Quality
(3) Employee Empowerment (8) Champion
(4) Team Approach (9) Quality at the Source
(5) Decisions based on Facts (10) Suppliers
 CONTINUOUS IMPROVEMENT

• Philosophy that seeks to

make never-ending
improvements to the
process of converting inputs
into outputs.

• Kaizen
– The Japanese word for
continuous improvement.
 DEFINITION OF SIX SIGMA

• A business process for

improving quality, reducing
costs, and increasing
customer satisfaction.
 SPECIFIC DEFINITIONS OF SIX SIGMA

• (1) Statistically
– Having no more than 3.4 defects per million.

• (2) Conceptually
– Program designed to reduce defects.
– Requires the use of certain tools and techniques.
 APPLICATIONS OF SIX SIGMA

• Six Sigma is employed in the following:

– (1) Design

– (2) Production

– (3) Service

– (4) Inventory Management

– (5) Delivery
SIX SIGMA PROCESS
 PLAN-DO-STUDY-ACT CYCLE

• A framework for problem

solving and improvement
activities.
 QUALITY TOOLS

• There are a number of tools that can be used for problem

solving and process improvement.

• Tools aid in data collection and interpretation, and provide

the basis for decision-making.
 QUALITY TOOLS:
(1) FLOW CHART

A diagram of the steps in a process.

 QUALITY TOOLS:
(2) CHECK SHEET

A tool for recording and organizing data to identify a problem.

 QUALITY TOOLS:
(3) HISTOGRAM

A chart of an empirical frequency distribution.

 QUALITY TOOLS:
(4) PARETO CHART

A diagram that arranges categories from highest to lowest

frequency of occurrence.
 QUALITY TOOLS:
(5) SCATTER DIAGRAMS

A graph that shows the degree and direction of relationship

between two variables.
 QUALITY TOOLS:
(6) CONTROL CHART

A statistical chart of time-ordered values of a sample statistic.

 QUALITY TOOLS:
(7) CAUSE AND EFFECT DIAGRAM

A diagram used to organize a search for the cause of a

problem. Also known as the fishbone diagram.
 QUALITY TOOLS:
(8) RUN CHART

A tool for tracking results over a period of time.

 METHODS FOR GENERATING IDEAS:
(4) BENCHMARKING

A process of measuring performance against the best in the

same or another industry.
 SUMMARY

• (1) Various philosophies and tools can be used to achieve high

quality and continuously improve quality.

• (2) The consequences of poor quality include loss of market

share, liability claims, a decrease in productivity, and an
increase in costs.

• (3) There are various awards for distinction in the field of

quality as well as various certifications (i.e., Baldwin Award
and the Deming Prize).
Thank you