INTRODUCTION TO QUALITY AND PERFORMANCE EXCELLENCE Process Approach

System Approach in Management

DEFINING QUALITY Continual Improvement
Perfection Factual Approach to Decision Making
Fast delivery Mutually Beneficial Supplier Relationships
Providing a good, usable product
Consistency CUSTOMER FOCUS
Eliminating waste Customer is the principal judge of quality
Doing I right the first time Organizational must build relationships with customers and increase
Delighting or pleasing customers customer engagement
Total customer service and satisfaction Organizations must understand customer needs and obtain feedback
Compliance with policies and procedures Customers are internal and external

FORMAL DEFINITION OF QUALITY
The totality of features and characteristics of a product or service that
bears on its ability to satisfy given needs American Society for Quality
- Fitness for use
- Meeting or exceeding customer expectations
- Conformance to specifications
PERFORMANCE EXCELLENCE
An integrated approach to organizational performance
management that results in
- Delivery of ever-improving value to customers and
stakeholders, contributing to organizational sustainability
- Improvement of overall organizational effectiveness and
capabilities, and
- Organizational and personal learning
CUSTOMER-FOCUSED PRACTICES
Researching and understanding customer needs and expectations
Ensuring that goods and services are linked to customer needs and
expectations
Communicating customer needs and expectations throughout the
organization
Measuring customer satisfaction and using the results to improve
Systematically managing customer relationships; and
Ensuring a balanced approach between satisfying customers and other
stakeholders
LEADERSHIP
Leadership is the responsibility of top management
Senior leaders should be role models for the entire organizations
As organization cannot sustain quality initiatives without strong
leadership

IMPORTANCE OF QUALITY LEADERSHIP PRACTICES

The buzzword among business in the 1980s and 1990s
Quality problems still abound in many industries, such as automotive
Consumer expectations are high
Weve made dependence on the quality of our technology a part of life
Joseph Juran
HISTORY OF QUALITY ASSURANCE
Quality assurance in Ancient China
Skilled craftsmanship during Middle Ages
Industrial Revolution: rise of inspection and separate quality departments
Early 20th Century: Statistical methods at Bell System
Quality control during World War II
Post-war Japan: Evolution of Quality Management
Quality awareness in U.S manufacturing industry during 1980s:from
Little Q to Big Q Total Quality Management
Malcolm Baldrige National Quality Award (1987)
Cynicism and criticism among some business executives
Emergence of quality management in service industries, government,
health care, education, and non-profits
Evolution of Six Sigma
Current and future challenge: maintain commitment to performance
excellence
PRINCIPLES, PRACTICES, AND TECHNIQUES
Principles are the foundation of the philosophy
Practices are activities by which the principles are implemented
Techniques are tools and approaches that help managers and
employees make the practices effective
QUALITY MANAGEMENT PRINCIPLES
Customer Focus
Leadership
Involvement of People
Considering the needs of all stakeholders in decisions
Establishing a clear vision of the organizations future
Setting challenging goals and targets
Creating and sustain shared values, fairness, and ethics at all levels of
the organization
Establishing trust and eliminating fear
Providing workers with adequate resources, training and freedom to
make customer-focused decisions, and
Inspiring, encouraging and recognizing workers contributions
INVOLVEMENT OF PEOPLE
A companys success depends increasingly on the knowledge, skills,
and motivation of its workforce
Engagement workers have a strong emotional bond to their
organization, are actively involved in and committed to their work, feel
that their jobs are important, know that their opinions and ideas have
value, and often go beyond their immediate responsibilities for the good
of the organization
Empowerment having the authority to make decisions
A sincere belief and trust in people
TEAMWORK
Vertical teamwork between top management and lower-level
employees
Horizontal teamwork within work groups and across functional lines
(often called cross-functional teams)
Interorganizational partnerships with suppliers and customers
PEOPLE-FOCUSED PRACTICES
Understand the key factors that drive workforce engagement,
satisfaction, and motivation
Design and manage work and jobs to promote engagement
 Create an environment that ensures and improves workplace health,
safety, and security
Develop an effective performance management system
Assess workforce engagement and satisfaction
Assess workforce capability and capacity needs
Make appropriate investments in development and learning
Manage career progression and succession planning
PROCESS APPROACH
A process is a sequence of activities that is intended to achieve some
result
PROCESS-FOCUSED PRACTICES
Systematically defining processes that create desired outcomes;
establishing clear responsibility and accountability for managing key
processes
Analyzing and measuring of the capability of processes
Identifying the interfaces of key activities within and between the
functions of the organization
Focusing on the factors such as resources, methods, and materials that
will improve processes; and
Evaluating risks, consequences, and impacts of activities on customers,
suppliers and other stakeholders
SYSTEMS APPROACH TO MANAGEMENT
Synthesis means looking at an organization as a whole and building on
key business attributes, including core competencies, strategic
objectives, action plans, and work systems
Alignment means ensuring consistency of plans, processes, measures,
and actions across the organization
Integration builds on alignment, so that the individual components of the
organizational system operate in a fully interconnected manner and
deliver anticipated results
SYSTEMS APPROACH PRACTICES
Designing the organization to achieve its objectives in the most effective
and efficient way
Understanding the interdependencies between processes
Developing approaches that harmonize and integrate processes
Providing a clear understanding of the roles and responsibilities
necessary for achieving objectives and reducing cross-functional
barriers
Understanding organizational capabilities, defining how specific
activities and processes should operate, and
Continually improving the system through measurement and evaluation
CONTINUAL IMPROVEMENT
Continual Improvement incremental and breakthrough improvement
Several Types of Improvement
- Improving Products and Services: enhancing value to the
customer through new and improved products and services
- Improving Work Process: improving productivity and operational
performance through better work processes and reductions in
errors, defects and waste
- Improving flexibility, responsiveness, and cycle time
- Improving organizational management processes through learning
KANO MODEL
Dissatifiers - those needs that are expected in a product or service.
Such items generally are not stated by customers but are assumed as
given.
Satisfiers needs that customers say they want. Fulfilling these needs
creates satisfaction
Delighters/exciters new or innovative features that customers do not
expect. The presence of such unexpected features, if valued, leads to
high perceptions of quality
PRACTICES FOR CONTINUAL IMPROVEMENT
Deploying a systematic approach to continual improvement across the
organization
Providing the workforce with training in the methods and tools of
continual improvement
Making continual improvement of products, processes, and systems an
objective for every individual
Establishing goals to guide, and measures to track, continual
improvement, and
Recognizing and acknowledging improvements
FACTUAL APPROACH TO DECISION MAKING
Organizations need good performance measures to drive strategies and
change, manage resources, and continuously improve
- Data and information support analysis at all levels
- Typical measures:
1. Product and process outcomes
2. Customer-focused outcomes
3. Workforce-focused outcomes
4. Leadership and governance outcomes, and
5. Financial and market outcomes
DATA DRIVEN PRACTICES
Ensuring that data and information are sufficiently accurate and reliable
Making data accessible to those who need it
Analyzing data and information using valid methods, and
Making decisions and taking action based on factual analysis, balanced
with experience and intuition
MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS
Suppliers include not only companies that provide materials and
components, but also distributors, transportation companies, and
information, health care and education providers
Key suppliers might provide unique design, technology, integration, or
marketing capabilities that are not available within the business and,
therefore can be critical to achieving such strategic objectives as lower
costs, faster time-to-market, and improved quality
SUPPLIER MANAMGEMENT PRACTICES
Recognizing the strategic importance of suppliers in accomplishing
business objectives, particularly minimizing the total cost of ownership
Identifying and selecting key suppliers, developing win-win relationships
that balance short-term gains with long-term considerations
Establishing trust through openness and honesty, thus leading to mutual
advantages
Pooling expertise and resources with partners
Having clear and open communication that information and future plans
Establishing joint development and improvement activities, and inspiring
encouraging
Recognizing improvements and achievements of suppliers