Bài giảng môn Quản trị kinh doanh - Chapter 6: Quality: meeting customer expectations

Chapter 6Quality:Meeting Customer Expectations1Learning ObjectivesState the contributions Shewhart, Deming, Juran, and Crosby made to quality management. Describe why customer loyalty is so important for profitability. Explain the importance of internal and external customers and the role each plays in TQM. Describe the three principles of TQM. Explain how the PDCA cycle is used to obtain continuous improvement. Describe the seven steps of the quality improvement story. Describe industry-focused and process-focused benchmarking. Describe how Six Sigma is used to enhance quality. Explain how certification programs can provide structure for quality improvement. State the criteria used for the Malcolm Baldrige National Quality Award.2Quality . . . What do we mean???Quality is defined by the customer. Quality has a key role in customer perception of value.Quality = Conformance to customer specifications and expectations.3Dimensions of Product and Service Quality4Dimensions of Product Quality*PerformanceWhat are the desirable characteristics of the product?FeaturesWhat additional characteristics of the product are possible?ReliabilityIs the product dependable? Does it accomplish what it promises?DurabilityHow long will the product last?*Source: Garvin, D.A. (1984) and Pisek, P.E. (1987)5Dimensions of Product Quality*ServiceabilityCan the product be easily and inexpensively repaired?AestheticsDoes the product satisfy subjective requirements?ResponseIs the interaction between the customer and the product provider pleasant and appropriate?ReputationWhat does information on past performance say about the company?*Source: Garvin, D.A. (1984) and Pisek, P.E. (1987)6Dimensions of Service QualityReliabilityDoes the business keep its promises?Responsiveness Does it promptly respond to the needs of its customers?Assurance Can the employees generate customer trust and confidence?7Dimensions of Service QualityEmpathy Are employees approachable and sensitive to individual customers?Tangibles Do the physical facilities, equipment, and written materials show care and attention?8A Brief History of Quality ManagementDeming: Stressed that significant quality improvement only comes from changing the organization, and that responsibility rests with upper management.Deming’s 14 Points9A Brief History of Quality ManagementCrosby: Known for his influence on the education and attitudes of top management, not the development of techniques.Crosby also had 14 points10A Brief History of Quality ManagementCrosby also had 4 “absolutes.”11A Brief History of Quality ManagementShewhart Developed the use of statistical process control charts, which provide an opportunity to control the variability of processesJuranBelieved quality problems could be traced to ineffective management.Created a framework for managing quality that consisted of three elements: quality planning, quality control, and quality improvement.12Cost of QualityAll of the costs associated with maintaining the quality of goods and services.Those costs are reduced as failures are moved closer to the firm and ultimately prevented.13Cost of Quality CategoriesPrevention costsInvesting in advanced technology and processes to promote good engine design.Rule of Thumb  For every $1 spent here, you save more belowAppraisal costs (inspection and testing)Implementing worker self-inspection to capture and rework defective components on the assembly lineInternal failure costsSending the engine to rework in the factory after a defect is detected in the final productExternal failure costs Replacing the engine after it fails in the customer’s automobile14Customer Loyalty and QualityThe cost of acquiring a new customer is much higher than the cost of retaining a current one.Customer retention results from the customer having good experiences.As the customer gains experiences, he/she becomes more loyal.As the customer becomes more loyal, retention costs less. A very loyal customer may become a company advocate.15Total Quality ManagementTQM devlops a culture of “doing it right the first time.”It is based on three principles:Customer focus: The customer determines what quality is.Continuous process improvement: Constantly trying to eliminate variability.Total involvement: A commitment at all levels of the firm.16How TQM Accomplishes Its PrinciplesTQM’ssupportiveapproaches3 PrinciplesOf Quality17Total Quality Management’s Impact on ProfitabilityInsert exhibit 6.9 (Impact on profitability)18Obtaining Continuous Improvement: The Plan-Do-Check-Act (PDCA) Cycle Check: See if things have improved.Plan: Identify the problem, understand it, and find its root cause.Do: Take action to fix the problem.Act: standardize the change throughout the business.19Six Sigma QualityA philosophy and set of methods companies use to eliminate defects in their products and processesEvolution of “Total Quality Management” movementAdopted by General Electric, Motorola, etc., as a means of focusing effort on quality using a methodological approachOverall focus of the methodology is to understand and achieve what the customer wantsSeeks to reduce variation in the processes that lead to product defects201. Define (D)Customers and their priorities2. Measure (M)Process and its performance3. Analyze (A)Causes of defects4. Improve (I)Remove causes of defects5. Control (C)Maintain qualitySix Sigma Quality: DMAIC Cycle for existing process/product improvementDefine, Measure, Analyze, Improve, and Control (DMAIC)211. Define (D)Customers and their priorities2. Measure (M)Process and its performance3. Analyze (A)Causes of defects4. Design (D)Design the New Product or Service5. Verify (V)Determine whether new design is effectiveSix Sigma Quality: DMADV Cycle for new service/product designDefine, Measure, Analyze, Design, and Verify (DMADV) 22Executive LeaderExecutive who sponsors the overall Six Sigma InitiativeChampionMiddle- or senior-level executive who sponsors a specific Six Sigma project, ensuring that resources are available and cross-functional issues are resolvedMaster Black BeltHighly experienced and successful Black Belt who has managed several projects and is an expert in Six Sigma methods/tools Responsible for coaching/mentoring/ training Black Belts and for helping the Six Sigma leader and Champions keep the initiative on trackSix Sigma Hierarchy23Black BeltFull-time professional who acts as a team leader on Six Sigma projectsTypically has four to five weeks of classroom training in methods, statistical tools, and (sometimes) team skillsGreen BeltPart-time professional who participates on a Black Belt project team or leads smaller projectsTypically has two weeks of classroom training in methods and basic statistical toolsSix Sigma Hierarchy24Industry-focused benchmarking is the identification of the best practices among competitors. Process-focused benchmarking focuses on similar processes of other companies, even if they are not competitors.Benchmarking25BenchmarkingIndustry FocusedProcessFocused26Quality Certification Programs:ISO27Quality AwardsThe Malcolm Baldrige National Quality Award, managed by the Department of Commerce, provides an excellent structure for developing a quality-driven organization.Insert exhibit 6.2028