Total Quality Management – Chapter 3, 4, 5

Environmental Factors
Influenced by a culture of results and focuses on the benefits quality provides to the bottom line
The American Way
Leadership, strategic planning, customer focus, Measurement, analysis, and knowledge management, Workforce focus, Operations focus, Results defined in tables and graphs
Baldrige Model
– Created
Deming Prize (1951)
for those who have contributed to quality control
– More focused on process than Baldrige
– Influenced by a culture of waste reduction due to limited natural resources and high importing costs
The Japanese Way
– Seiri (Sort) – get rid of the unnecessary old files
– Seiton (Straighten) – be neat – straighten up offices and work areas
– Seiso (Shine) – clean plant / equipment to eliminate dirt
– Seiketsu (Standardize) standardize locations for tools, files, equipment. Color, code and label
– Shetsuke (Sustain) – discipline in maintaining four prior S’s
The Five S’s
Focus is to document quality systems in manuals to facilitate trade through supplier conformance
The Euro Standard
Studies show that slow improvement is more successful in the long run, over “management by dictate” “quick fix” goals yield.
People will achieve goals and positive results

People will distort the data

People will distort the system

Strategic Quality Planning
preventive rather than reactive
Quality and sustainability TQEM
Understand sourced items and identify optimal performance levels
Supply Chain Strategy
Logistics, suppliers, inventory management, information flows, products, service
Things to manage
a receiver of good or services typically an economic transaction
employees receiving something from within the same firm
Internal customer
bill paying receivers of our work
External customer
proactive approach to satisfying customer needs
Customer driven quality
Relationship management means treating the customer as a valued asset to be managed.
Customer Relationship Management
Complaint resolution, feedback, guarantees, corrective action
Four process design aspects
GAP = difference between desired and actual performance
GAPS Approach to customer design
Reliability / consistency / dependability
Responsiveness / willingness
Competence / skill
Knowing and understanding the customer
Tangible evidence of service
Determinants of service quality
Single sourcing means few suppliers with long contract terms. Strategic alliances means suppliers become de facto subsidiaries.
Supply Chain Alliance
allows suppliers to purchase on their
behalf, suppliers provide what is needed, when it’s needed
Vendor Managed Inventory (VMI)
Includes all supplier initiated contact with customers: telephone, focus groups, surveys useful in measuring perceptions
Actively Solicited Customer Feedback
Any customer initiated contact: complaint card, toll free call, web inquiry
Passively Solicited Customer Feedback
Used to mine data to improve retention through phases of the relationship:
Acquisition: seeking profitable customers
Retention: incentivize customers to stay connected
Enhancement: improve the services offered
Customer Relationship Management Systems
Variables that outline key considerations when developing a strategic plan: TIME, LEADERSHIP, QUALITY, ORDER WINNERS
Strategic Quality Planning Content
determine competitive priorities and define how to win orders, use that as a guideline
Order Winners
generic, used by relatively inexperienced companies
Forced-choice model
Japanese for compass, course, policy, plan
Hoshin Kanri
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