Demings View of

Product System

W. Edwards Deming

Learning Cycle
1.
2.
3.
4.

Planning
Execution of Plans
Assessment of Progress
Revision of Plans

General Systems Theory and

System Dynamic
Peter Serge since 1950s and 1960s
An organization that is continuously expanding its
capacity to create its future. For such an organization,
it is not enough merely to service. Survival learning
or what is more often termed adaptive learning is
important-indeed it is necessary. But for a learning
organization, adaptive learning must be joined by
general learning, learning that enhaces our capacity
to create.

Principles of Total
Quality

Principles of Total Quality

Infrastructure refers to the basic management
systems necessary to function effectively and
carry out the principles of TQ.

Elements:
a.
b.
c.
d.
e.

Customer relationship management

Leadership and strategic planning
Human resources management
Process management
Information and knowledge management

Principles of Total Quality

Practices are those activities that occur within
each element of the infrastructure to achieve
high performance objectives.
Tools include wide variety of graphical and
statistical methods to plan work activities, collect
date analyzed result, monitor progress and solve
problems

Principles of Total Quality

Practices
C
on
t

om
t
us

er

s
u
c
o
F

in
uo
an us
d Im
Le pr
ar ov
ni em
ng e
nt

Participation and Teamwork

Infrastructure

Tools and
Techniques

Relationship among three

Principles
Infrastructure

Practices

Tools and
Techniques

Leadership

Strategic
Planning

Human
Resources

Process
Management

Information and
Knowledge

Example
Infrastructure

Practices

Tools and
Techniques

Human
Resources

Determining
employee
satisfaction

Trend Chart

Training

Quality and Competition

Advantage

Competitive Advantage
Denotes a firms ability to achieve market superiority.
S.C. Wheelwright classified 6 characteristics:
It is driven by customer wants and needs.
It makes significant a contribution to the success of the
business.
It matches the organizations unique resources with
opportunities in the environment.
It is durable and lasting difficult for competitors to copy.
It provides a basis for further improvement
It provides direction and motivation to the entire organization.

Importance of Quality in Achieving

Competitive Advantage
1. Product quality is an important determinant of business
profitability.
2. Businesses that offer premium-quality products and
services usually have large market shares and were early
entrants into their markets.
3. Quality is positively and significantly related to a higher
return on investment for almost all kinds of products and
market situations
4. Instituting a strategy of quality improvement usually leads to
increased of market share but at the cost of reduced shortrun profitability.
5. High-quality producers van usually charge premium prices

Three levels of Quality

Organizational Level
Quality concerns center on meeting external
customer requirements.
Questions such as:
Which products and services meet your expectations
Which do not?
What products or services do you need that you are not
receiving?
Are you receiving products or services that you do not need?

Three levels of Quality

Process Level
Organizational units are classified as functins or
departments such as marketing, design, product
development, operations, finance, purchasing, and
billing.
Managers may ask questions such as
What products orservices are most important to the
customer?
What processes produce those products and services?
What are the key inputs to the process?
Who are my internal cutomers and what are their needs?

Three levels of Quality

Performer Level (Job Level or Task-design
level)
Standards for output must be based on quality and
customer service requirements that originate at the
organizational and process levels.
For each output of an individuals job, one must ask
the ff:
What is required by the customer, both internal and external?
How can the requirements be measured?
What is the specific standard for each measure?

Evolution of Quality
at Xerox

 Facing a Competitive Crisis

During 1970s
IBM and Kodak have high volume copier business
Market that Xerox had virtually ignored
Xerox was soon losing market share to Japnese
competitors.
They had fallen to less than 50%

Leadership Through Quality

Xerox Quality Policy
Xerox is a quality company. Quality is the basic
business principle for Xerox. Quality means providing
our external and internal customers with innovative
products and services that fully satisfy their
requirements. Quality improvement is the job of every
Xerox employee.

Leadership Through Quality

Three objectives:
1. To instill quality as the basic business principle in Xerox
and to ensure that quality improvement becomes the job
of every Xerox persons.
2. To ensure that Xerox people, individually and
collectively, provide our external and internal customers
with innovative products and services that fully satisfy
their existing and latent requirements
3. To establish, as a way of life, management and work
processes that enable all Xerox people to continuously
pursue quality improvement in meeting customer
requirements.

Leadership Through Quality

Four achieving goals
1. Customer Goal: To become an organizational with
whom customer are eager to do business.
2. Employee Goal: To create an environment where
everyone can take pride in the organization and feel
responsible for its sucess
3. Business Goal: To increase profits and presence at
a rate faster than the markets in which Xerox
competes
4. Process Goal: To use Leadership Through Quality
principles in all Xerox does.

Key Components of Xeroxs Lean Six

Sigma
1.
2.
3.
4.

Performance excellence process

DMAIC process
Market trends and benchmarking
Behaviors and leadership