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Quality Management, 6th ed.

Goetsch and Davis

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

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
(Sixth Edition)

Quality Management, 6th ed.


Goetsch and Davis

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

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

Quality Management, 6th ed.


Goetsch and Davis

The Future of Quality Management in 21st


Century
3

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Quality
Fred smith: performance to the
standard expected by the customer

Boeing:providing our customer


with product and service that
consistently meet thier needs
and expectations

The US department of
defense :doning the right
thing right the first time
,always striving for
improvment ,and always
satisfaying the customer.
Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc.

Quality is a dynamic
state associated with
product , services
,people, processses,
and environments that
meet Customer needs
and expectations and
help produce superior
value

Quality Management, 6th ed.


Goetsch and Davis

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Quality appllies to products,


services,people, processses, and
environments.

Quality is an ever changing state.

Quality must give superior value to the


customer (superior value has 3 elements:
superior Quality , superior cost, superior
service)

Quality Management, 6th ed.


Goetsch and Davis

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

The Total Quality Approach Defined


Total quality is an approach to doing business that
attempts to maximize an organizations competitiveness
through the continual improvement of the quality of its
products, services, people, processes, and environments

These elements distiguish TQ approach from traditional


ways of business.

Quality Management, 6th ed.


Goetsch and Davis

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Stategically based1.
Employee
involvment and
empowerment

Customer focus

Obsession with
quality

Unity of purpose

Freedom through
control

characteristics of
the TQ approach

Education and
training

Long term
commitment

Continual process
improvment
Quality Management, 6th ed.
Goetsch and Davis

Scientific approach
to DM and problem
solving

Teamwork

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Three legged stool of TQ

Quality Management, 6th ed.


Goetsch and Davis

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

The Total Quality Approach to


Quality Management
(Continued)
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.

Quality Management, 6th ed.


Goetsch and Davis

10

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Two views of Quality


Traditional view of Quality
Measure process performance in defective
parts per hundred of products( acceptable
benchmark)
Focused on after the fact

Employees are passive

Expected one improvement per employee per


year
Focus on short time profit
Productivity and Quality are always in conflict
Customer satisfaction
Quality Management, 6th ed.
Goetsch and Davis

Quality is inspected into product

Total Quality

Measure process performance in defective parts


per million of products( high perf
31
ormance benchmark)
Continual improvement of product ,process and
people in order to prevent the problems before
they occurs
Employees are empowered to think and make
decisions % 85of problems are manegments
fault)
Expected at least 10 improvement per employee
per year
Focus on long time profit
Productivity made as aresult of Quality
improvement
Satisfying customer need and exceed expectation
2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. All Rights Reserved.

11Quality is determined

by product ,prosess and

Key elements of TQ
1.

One

Two

.Stategically based
TQ organazations have stratigic plan that contain: vision ,
mission,objectives, activites
The stratigic plan desiged to give it sustanable competative
advantege in the marketplace.

2. Customer focus
Customer is the driver internally and externally

internally- Customer is defined the quality of product


Externally- Customer is defined the quality of
people,process and environmen.

Quality Management, 6th ed.


Goetsch and Davis

12

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Three

Four

Quality Management, 6th ed.


Goetsch and Davis

3. Obsession with quality


Becouse Customer is the driver the organazation
become obsessed with meeting or excedding his
expectation

4. Scientific approach
Employees are empowered
Scientific approach used in structuring work and
DM and problem solving

13

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Upper Saddle River, NJ 07458. All Rights Reserved.

Five

Six

Quality Management, 6th ed.


Goetsch and Davis

long term commitment


Organization fail if implement quality after short time
seminar.

Teamwork
The best compatative effort are within department

14

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Upper Saddle River, NJ 07458. All Rights Reserved.

Seven

Eight

Quality Management, 6th ed.


Goetsch and Davis

Continual process improvment


To improve quality , we must improve the system

Education and training


Needed to improve people continually

15

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Upper Saddle River, NJ 07458. All Rights Reserved.

Key elements of TQ

Nine

Freedom through control


Need to empower people
Detractors see employee involvement as
loss of management control

Ten

Unity of purpose
Historically management and labor are adversare .
To apply TQ they must be have unity of perpose
Now ,labor are important in wages, benefits
..

Quality Management, 6th ed.


Goetsch and Davis

16

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Key elements of TQ
Employee involvement and empowerment
Eleven

1. Increase likehood of good decision


2. Promote ownership of decision

Quality Management, 6th ed.


Goetsch and Davis

17

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

The Total Quality Pioneers


W. Edward Deming is best known for his Fourteen Points, the
Deming Cycle, and the Seven Deadly Diseases.
Joseph M. Juran is best known for Jurans Three Basic Steps to
Progress, Jurans Ten Steps to Quality Improvement, the Pareto
Principle, and the Juran Trilogy.
Philip B. Crosby
Armand V. Feigenbaum
Other Japanese experts
Quality Management, 6th ed.
Goetsch and Davis

18

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

W. Edward Deming Contribution

Poor family

Working as janitor

Earned Bsc in engineer , master and PhD Physics

The man who discover quality

1940 Japan (Toshiba company) accept demings view

1980 U.S

Quality Management, 6th ed.


Goetsch and Davis

19

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

The Deming Cycle

Quality Management, 6th ed.


Goetsch and Davis

20

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

The Deming 14 Points

Quality Management, 6th ed.


Goetsch and Davis

21

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

The Deming 14 Points


1. Constancy of purpose:
2. The new philosophy:leadership
3. Cease dependence on mass inspection:
4. End lowest tender contracts:
5. Improve every process:
6. Institute training on the job:
7. Institute leadership of people:
8. Drive out fear:
9. Break down barriers:
10. Eliminate slogan:
11. Eliminate arbitrary numerical targets:
12. Permit pride of workmanship:
Remove the obstacles
13. Encourage education:
14. Top management commitment and action:
Quality Management, 6th ed.
Goetsch and Davis

22

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

The Deming 7 Deadly Disease

Quality Management, 6th ed.


Goetsch and Davis

23

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Joseph M. Juran Contribution


Jurans Three Basic Steps to Progress,
Juran s Ten Steps to Quality Improvement,
the Pareto Principle,

Juran Trilogy

Quality Management, 6th ed.


Goetsch and Davis

24

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Jurans Three Basic Steps to Progress,

Quality Management, 6th


Goetsch and Davis

Improve structure
Training program
ed.
Commitment and 25leadership

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Juran s Ten Steps to Quality Improvement,

Quality Management, 6th ed.


Goetsch and Davis

26

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

the Pareto Principle,

Organization put
their energy
to elimenate
source of
problems

Juran and Deming believe that problems


come from management
Quality Management, 6th ed.
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27

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Juran Trilogy

Quality
Improvement

Quality
Planning
Quality
Control

Quality Management, 6th ed.


Goetsch and Davis

28

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Crosbys contribution
Crosby define Q as conformance

He advocate zero defect management

Determination

Quality Management, 6th ed.


Goetsch and Davis

Education

29

Implementation

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Crosbys 14 steps to Quality improvement

Quality Management, 6th ed.


Goetsch and Davis

30

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

1.
2.
3.
4.
5.

Common errors made when starting quality initiatives


include:
senior management delegation and poor leadership
team mania
the deployment process
a narrow, dogmatic approach
confusion about the differences among education,
awareness, inspiration, and skill building.

Quality Management, 6th ed.


Goetsch and Davis

31

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

The Future Of Quality Management in the 21st Century

Trends affecting the future of quality management include:


1.

increasing global competition

2.

increasing customer expectations

3.

opposing economic pressures

4.

new approaches to management.

Quality Management, 6th ed.


Goetsch and Davis

32

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Quality Management characteristics for the future


1.

Total commitment

2.

Market driven

3.

Commitment to leading people

4.

Four objectives:1.customer satisfaction 2.cost leadership


3.Effective HR 4.integration with the supplier base.

5.

Fundamental improvement

Quality Management, 6th ed.


Goetsch and Davis

33

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

Obstacles to the success of TQ


One
Two
Three

Four
Fo

Inadequate HR development
Lack of planning for Q
Lack of leadership for Q
Inadequate resources for Q

Five Lack of customer focus of Q


Quality Management, 6th ed.
Goetsch and Davis

34

2010 Pearson Higher Education,


Upper Saddle River, NJ 07458. All Rights Reserved.

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