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Assignment on Quality Management - (Doc)

Added on - 04 Dec 2020

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Chapter 1: Overview of Managing Quality and Champions of QualityBy the end of this unit, you should be able to:Develop a personal definition of quality.Understand the two categories of customers in an organization.Discuss the three criteria for “doing things right”Describe the process and advantages of benchmarking.Define a learning organization.Understand five positive results from the process of managing for quality.Understand Deming’s 14 Obligations of Top Management.Explain the Malcolm Baldrige National Quality Award.Describe “Six Sigma” applications to the hospitality industry.Describe common themes among quality gurus.Introduction to Quality ManagementThe concept of management quality is an outgrowth of the Total QualityManagement (TQM) philosophy of management.This philosophy states that bottom line performance will take care of itself in anorganization that is committed to, and practices, quality effort. While some believethat TQM is out of fashion and others think it is a failure, the truth is thatorganizations that practice identifying customer requirements and minimize oreliminates deficiencies perceived by customers survive in the short run and thrive inthe long run. When this fundamental quality concept becomes part of theorganization’s very fabric and way of doing business, the customer andorganizations both win.The Systems for Managing and Improving QualityAccording to the TQM theory, to begin managing and improving quality, one mustfirst know their customers and understand how the requirements of the customersdrive the efforts of the organizations. All of the critical processes established andmonitored in an organization and all of the changes made to improve quality aredone to serve the customers better. The process of managing and improving qualitytakes place within 3 broad sets of expectations in any organizations: internal
customers’ expectations, external customers’ expectations, and financialexpectations.Continuous quality improvement is the key to managing and improving quality forboth internal and external customers. The CQI journey never ends; the objective is todeliver results that are better today compared to those of yesterday.Some of the resources used to achieve quality management:Tools of the trade: These help measure and monitor quality improvements.Strategic quality planning: This begins with a personal vision, which transforminto a shared vision within the organization. Mission and core values are thendeveloped.Assessing quality: This is essential from both internal and external customers.Helps determines the requirements of the customers as well as how theorganization is doing in the delivery of requirements at the levels that meet orexceeds customers’ expectations.Implementing quality: The 6 steps of implementing quality include educating,assessing, addressing the burning issues, determining critical processes andhow to measure progress, redesigning the process, and continuingimprovement.Leading quality: This is the responsibility of everyone in the organization sinceleadership is intimately related to managing and improving quality. Knowingthese qualities can help identify strengths and weaknesses in the individualand organization.Quality life: This results from the effective application of principles to one’spersonal life.Doing the Right ThingsWhile some believe that quality is defined as “the best, the finest, the greatest, themost expensive or most superior”, others define quality as “doing the right things”. Ina service organization, doing the right thing is simply balancing the 3 sets ofexpectations:1.Internal customers: Associates who are selected, oriented and trained tocreate and deliver the products and services of the organization.2.External customers: people that purchase an organization’s products andservices.3.Financial: Vary between organizations. Business expect to make profit forstakeholders while non-profit organizations frequently expect to generate asurplus which is used to build the organization by investing for future needsand in future growth.
Managing for quality means meeting the customer’s expectations in the product orservice being purchased. It also means reducing hassles, defects, deficiencies,barriers, obstacles, or problems perceived by the customer in the product or service.When customer’s requirements are met and deficiencies are reduced, quite simply,quality has been managedQuality-driven organizations are customer-driven organizations. Successfulorganizations listen to their customers, both internal and external and involve theirsuppliers in some of the key decision-making processes in the organization.Benchmarking or learning from other organizations to raise the quality level of ownproducts and services helps an organization to study a process at anotherorganization and adapt, modify, and apply the process at their own organization.This learning opportunity demands time and commitment from key internalcustomers within the learning organization and the organization’s culture and corevalues must include thinking outside the box. All organizations and their associatesmust accept the fact that change is necessary and is part of progress in today’sworld.Starting the Process of Managing and Improving QualityWhen starting the process of managing and improving quality, remember that thereis no right or wrong way to achieve quality. However, in all cases, three commonthreads can be identified in organizations that excel in managing and improvingquality: 1) leadership by top management, 2) a view that quality is a long-termprocess, and 3) a passion for gathering and acting on feedback from customers. Anorganization’s top management sets the direction and pace. The process formanaging and improving quality is more likely to succeed if there is a strongmessage that there is a commitment to make quality the core of the organization’sculture. Once’ an assessment of the organization’s current level of quality takesplace; the level of quality it hopes to achieve can be articulated and shared withthose who can help make it happen. The organization’s mission, vision statement,and core values should be reviewed during this assessment since these provide thecontext for evaluating current levels of quality. It is important that those in theorganization understand where it is they want to go and how they are going to getthere. Many have suggested that an organization’s values are the foundation for anyprogress since values describe how people in the organization intend to behave andact. The mission of the organization should present the following information inwritten form: who is in the organization, what the organization does, and who thecustomers (both internal and external) are. Once the mission is developed, a visionstatement can be written to describe the organization’s aspirations for the future.Everyone in the organization should have the opportunity to provide input on thedevelopment of the values, mission, and vision. Some organizations successfullycombine their vision and mission into one statement. Once these are developed, theorganization can start to assess the level of quality at present.
Importance of OrganisingCross-functional teams are the best resources for determining the present level ofquality. These teams are developed from people in various functional departments(i.e., production, human resources, service, and technology). A good place to startthe process of defining the current level of quality is to define a procedure forcreating and submitting ideas to improve customer service and control costs andenhance profitability. In many cases cross-functional teams concentrate on findingan easy fix to get rapid, positive results. These positive results propel and encourageboth individuals and teams to further explore ways to enhance customer service.This second step is repeated until overall improvement is achieved through thecontinuous identification of and elimination of root causes of service problems. Thisprocedure is often called the Deming Circle, named after Dr. Deming, who firstadvocated its use. Once teams are formed, they continue to need direction fromleaders or from the team members themselves. (Self-directed teams are exclusivelydirected by team members; they do not rely on the organization’s leaders fordirection.) Team members must constantly remind themselves and others that allactivities should be customer-driven and they help link the management of quality tothe organization’s strategy mission, values, and vision. Unless the process ofmanaging for quality is linked to strategic goals, quality efforts will not be realized.Clear goals also help make the team’s start-up phase relatively brief so that resultscan be seen quickly. These early results help propel teams onward to tackle andovercome more difficult customer service challenges.The process of managing for quality exists and flourishes within what has beencharacterized as a “learning organization.” Peter M. Senge describes the concept oforganizational learning as the way an organization recreates itself. People in learningorganizations have shared knowledge, insights, and goals. Individual learning isimportant, but the sum of organizational learning is greater than its individualcomponents. These organizations also have an organizational memory for keepingthese shared insights, knowledge, and goals. Associates in a learning organizationcommit to living the organizational culture. Organizational learning takes place at theindividual, team, and organization levels. Learning organizations learn that if thingsgo wrong, a hard look at the system is required; it is not a matter of who isresponsible. Learning organizations look at the critical processes within the systemto determine why the error occurred and implement ways to fix the process.For managing and improving quality to be successful, it must be tailored to theunique needs, wants, and expectations of the service organization and thecustomers it serves. A commitment to managing and improving quality unique to theorganization’s culture and tied to the organization’s history and vision for the futurewill add value to customer service. The uniqueness of the organization, itscustomers, and its associates, combined with a customized process for managingand improving quality, will encourage the creation and delivery of customer servicethat will help sustain a competitive advantage.
As Exhibit 1.6 shows, managing and improving quality results in a reduction in costs.This savings occurs because there are fewer mistakes, less rework, fewer delays,and a more efficient use of resources. Consequently, productivity improves becauseresources are used more efficiently and the organization’s customer base increasesbecause it is offered better quality at a lower price. The organization is able to staycompetitive by concentrating on customers and their requirements rather than thebottom line. It builds its business through providing empowerment and satisfaction tointernal customers. This boosts the retention of associates and improves productsand services for external customers.The most important and perhaps only, rule in service organizations is to take care ofcustomer needs and expectations. Doing so results in delighted customers. Notdoing so results in failure—for the organization and its internal customers. Theprocess of managing for quality never ends. The process is not a destination but ajourney of evolutionary improvement in a high performance service organization.History of Managing QualityThe management for qualityhas its origins in the pioneer work of several qualityleaders, namely W. Edwards Deming, Joseph M. Juran, Armand Feigenbaum, PhilipCrosby, Karou Ishikawa, and Genichi Taguchi. During the early decades of thetwentieth century, the United States was completely transformed by the IndustrialRevolution. The automobile companies, Ford Motor in particular, enjoyedtremendous success in developing the mass production process, a process basedstrictly on the interchangeability of labour and parts. Once there was duplication andstrong marketing, however, the competitive advantage the United States had
enjoyed for years changed. At that time, the mid-twentieth century, General Motorswas able to continue to dominate the industrial world, however, by becoming productbased, flexible, and geared for growth. After World War II, two other changesoccurred in the industrial sector: customers were suddenly looking for productdifferentiation and there was a drastic shortening of the product lifecycle. Most U.S.companies did not recognize this customer-based shift in expectations, but theJapanese were able to take advantage of this through incremental improvements.The Quality GurusDemingAs American leadership turned deaf ears to customer’s expectations’ W. EdwardsDeming went to Japan to help improve the quality of Japanese manufacturing,specifically automobiles. He helped post World War II Japan rebuild its economy byintroducing a philosophy and a statistical methodology to improve quality. Thisphilosophy was based on continuous improvement; the methodology entered onstatistics and probability, later known as statistical quality control and was developedby Walter Shewhart and his associates at Bell Labs in the 1930s. Unlike theJapanese, it took the American businesses to recognize the Deming process forquality improvement.At the heart of Deming’s philosophy was the creation of a culture of quality within acompany. The foundations of Deming’s challenge to improve quality was later usedto develop other quality movements. Deming defined 14 obligations of topmanagement which form the core of his quality system and define ways for anorganization to transform itself into an organization focused on quality:1.Create constancy of purpose for improvement of products and services.2.Adopt the new philosophy.3.Cease independence on inspection to achieve quality.4.End the practice of awarding business on the basis of price alone. Insteadminimize total cost by working with a single supplier.5.Improve, constantly and forever, every process for planning, production andservice.6.Institute training on the job.7.Adopt and institute leadership.8.Drive out fear.9.Break down the barriers between staff areas.10. Eliminate slogans, exhortations and targets for the work force.11. Eliminate numerical quotas for the work force and numerical goals formanagement.12. Remove barriers that rob people of pride and workmanship. Eliminate theannual rating or merit system.13. Institute a vigorous program of education and self-improvement for everyone.14. Put everybody in the company to work to accomplish the transformation.
JuranDr Joseph M. Juran’s contribution to the field of quality centers on his philosophy thatquality requires commitment and action from top management, training in themanagement of quality and quality improvements at a revolutionary rate. Hesuggested a way to organize an interconnected quality network to maximize anorganization’s delivery of quality products and services.10 steps to Quality Improvement:1.Create an awareness of and commitment to improve.2.Establish goals for improvement, utilizing input from cross-functional sources.3.Rally people in the organization around the common goal of improving quality.4.Train associates by creating a learning organization focused on quality.5.Continuously learn and improve as problems are solved an projects arecompleted.6.Regularly communicate progress toward quality improvement goals.7.Recognize those who contribute to improving quality.8.Communicate results as the process of managing quality discoversinformation.9.Measure progress toward the goals of improving quality.10. Integrate improvement into the systems of the organizations.Another of Juran’s unmatched contributions in the field of quality was his contributionto designing the Malcolm Baldrige National Quality Award. This award, establishedby the U.S. Congress in 1987, was named after a former U.S. Secretary ofCommerce and recognizes U.S. companies who have achieved excellence throughimplementation by quality improvement programs.The Baldrige Quality Award emphasizes the following core values and concepts:Visionary LeadershipCustomer-driven excellenceOrganizational and personal learningValuing internal customers and partnersAgilityFocus on the futureManaging for innovationManagement by factSocial responsibilityFocus on results and creating valueSystems perspective
According to the Baldrige CriteriaLeadership occurs when the senior executives help others understandcustomer requirements for quality products and servicesPerformance Excellence Process (PEP) engages organization and requirestotal commitment from allThe Ritz-Carlton Manager BeliefsProduce a work environment that:Helps people live betterTreats people with dignityInvolves people in the planning of work that affects them to maximize thepride and joy they derive from their workManagement concentration on internal customers enables associates to takecare of external customersInternal customers trained, given all necessary information aboutservice/product, provided with necessary tools/resourcesInternal customers involved in planning process, share management’s vision,trust management, and are recognized for their effortsArmand V. FeigenbaumArmand V. Feigenbaum introduced his cost of non-conformance philosophy andrationale regarding why an organization should commit to quality. Feigenbaum alsorefined the concept of work process flow and showed how improvement in onecomponent of a process helps improve other areas of the organization.Feigenbaum’s approach to quality is driven by those who purchase products andservices. His philosophy of managing and improving quality, in the form of six keypoints, is mentioned below.Feigenbaum's Six Key Points1. Total quality control (TQC) is a system for integrating quality development,maintenance, and improvement into the groups of an organization. This integrationenables marketing, engineering, production, and service to operate at the mosteconomical levels to provide customer satisfaction.2. Quality control (QC) represents a management tool that sets qualitystandards,evaluates performance against the established standards, acts when standards arenot met and makes plans to improve the standards.3. Product quality is affected by both technological and human factors. The humanfactors are more important.4. QC impacts all aspects of production from defining customers’ needs to followingup to ensure satisfaction.
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