Module 2: On Quality Movement

Question 1

1) Transcendent Based
2) Product Based
3) User Based
4) Manufacturing Based
5) Value Based

Answer 1

5 Approaches to Quality Definition

Question 2

— “I can’t define it, but i know it when I see it”
— quality is difficult to define because it is developed only through experience
— cannot be used for competitive advantage
— functions of design, production, and service may find it difficult to use the definition as a basis for quality management
— the ability to determine that subjective relationship can only be developed through experience
— quality is subjective; hard to measure
— no exact standard to measure it

— example:
- “The service is good because I felt it.”
- When entering a house / building, some people may or may not feel good about it
- Being a fan of a K-Pop Group; You can’t explain the feeling, but you like it

Answer 2

Transcendent Based

Question 3

— refers to quantifiable characteristics
— quality is viewed as quantifiable or measurable characteristics based on certain ingredients or attributes
— gives you something to measure against

— example:
- bed sheets: thread count
- ice cream: butterfat
- chocolate: cocoa percentage
- wine: years of fermentation

— this approach has benefits, but also has limitations
— quality is based on individual taste or preference, the benchmark for measurement may be misleading

Answer 3

Product Based

Question 4

— “quality is in the eye of the beholder”
— quality is the degree to which a product or service satisfies the user’s needs, wants, or preferences
— “personal need/preferences”
— with the number of products available, you will choose the one you need
— if particular guests believe that a Courtyard by Marriott meets their needs better than a Marriott Marquis, then the Courtyard would be the higher-quality accommodation for them
— focuses on what I need as a customer or as a guest

— rational approach but may lead to:
→ consumer preferences widely
→ “are quality and customer satisfaction the same?”

Answer 4

Used Based

Question 5

— concerned with engineering and manufacturing practices—”conformance to requirements”
— excellence in quality is not necessarily in the eye of the beholder but rather in the standards set by the organization
— weakness: the consumer’s perception of quality is equated with conformance and hence is internally focused
— a company is producing a certain product according to their standards
— good quality is according to them

— example:
- McDonalds → “mcdonaldization”; pioneers when it comes to the standard and concept of fast food; all products (especially signatures) must be the same; weakness: some people want to have healthier options

Answer 5

Manufacturing Based

Question 6

— quality definition based on values is a relationship between benefits in a product and its price
— in terms of costs and prices and other;s thus, the consumer’s purchased decision is based on quality at an acceptable price
— products and services are based on two criteria: quality and value
— the highest quality is not usually the best value

Answer 6

Value Based

Question 7

1) Inspection (1940s)
2) Quality Control (1950s)
3) Quality Assurance (1960s)
4) Total Quality Management (1970s)

Answer 7

Evolution of Quality Management

Question 8

→ salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance

Answer 8

Inspection (1940s)

Question 9

→ develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control

→ finding the defects of the product / product-focused

Answer 9

Quality Control (1950s)

Question 10

→ quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC

→ prevents defects of the product / process-focused

Answer 10

Quality Assurance (1960s)

Question 11

→ policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement

Answer 11

Total Quality Management (1970s)

Question 12

1) Approach
2) Scope
3) Scale
4) Philosophy
5) Standard
6) Control
7) Theme

Answer 12

Basic Principles of TQM

Question 13

→ management-led
→ starts with your leaders

Answer 13

Basic Principles of TQM: APPROACH

Question 14

→ company-wide
→ striving to bring the quality up and costs down by the whole organization

Answer 14

Basic Principles of TQM: SCOPE

Question 15

→ everyone is responsible for quality
→ total commitment of all
→ involvement of all people

Answer 15

Basic Principles of TQM: SCALE

Question 16

→ prevention not detection
→ prevention of defects

Answer 16

Basic Principles of TQM: PHILOSOPHY

Question 17

→ right first time
→ 0 defects

Answer 17

Basic Principles of TQM: STANDARD

Question 18

→ cost of quality
→ practicing to be efficient in costs

Answer 18

Basic Principles of TQM: CONTROL

Question 19

→ on going improvement
→ TQM is not an end

Answer 19

Basic Principles of TQM: THEME

Question 20

1) Management Commitment
2) Employee Empowerment
3) Fact-Based Decision Making
4) Continuous Improvement
5) Customer Focus

Answer 20

Key Elements of TQM

Question 21

→ plan, do, check, act (PDCA)
→ PDCA is not something you apply for an urgent problem
→ PDCA is a solution for long-term; a process

Answer 21

Management Commitment

Question 22

• identify and understand your problem or opportunity
• perhaps the standard of the finished product is not high enough
• “What outcomes do you want?”

Answer 22

Management Commitment: PLAN

Question 23

• to try or test, not to implement fully
• once you have identified a potential solution, test it safely with a small-scale pilot project

Answer 23

Management Commitment: DO

Question 24

• analyze the results of your trial against what you want to achieve
• if not successful, go back to plan
• if successful, proceed to ACT

Answer 24

Management Commitment: CHECK

Question 25

• implement what’s working, continually refine what is not, and carry on the cycle of continuous improvement

Answer 25

Management Commitment: ACT

Question 26

→ training
→ suggestion scheme
→ measurement and recognition
→ excellence teams

Answer 26

Employee Empowerment

Question 27

→ statistical process control
→ the statistical tools
→ team-oriented problem solving

Answer 27

Fact-Based Decision Making

Question 28

→ systematic measurement
→ excellence teams
→ cross-functional process management
→ attain, maintain, and improve standards

Answer 28

Continuous Improvement

Question 29

→ supplier partnership
→ service relationship with internal customers
→ never compromise quality
→ customer-driven standards

Answer 29

Customer Focus

Question 30

— an operations manager’s objective is to build a total quality management system that identifies and satisfies customer needs

— strategy → a plan of action to achieve a goal

Answer 30

Quality and Strategy

Question 31

• managing quality supports differentiation, low cost, and response strategies
• quality helps firms increase sales and reduce costs
• building a quality organization is a demanding task

Answer 31

Strategic Direction of TQM