Strategic Quality and Systems Management

LO2: Understand the importance of managing quality in an organisation.

Facilitation Process

KNOWLEDGE AND
UNDERSTANDING

Knowledge component

Case study/ Activity component

Assignment component
What do you need?

YOU

Our requirements from you?

CASE
STUDY/
ACTIVITY

ASSIGNMEN
T

Knowledge Component
1st Part of the session
Power Point
Other material
Components
Theories
Concepts
Aspects
Lectured/Facilitated and discussed

SQSM: Learning Outcomes

LO1: Understand the role of operations
management in an organisation.
1.1 - explain the importance of effective operations management
in achieving organizational objectives

1.2 - evaluate the success of existing operations management

processes in meeting an organizations overall strategic
management objectives

SQSM: Learning Outcomes

LO2: Understand the importance of managing
quality in an organisation.
2.1 - explain the importance of effective quality management
in achieving organizational objectives

2.2 - evaluate the success of existing quality management

processes in meeting an organizations overall strategic
management objectives

SQSM: Learning Outcomes

LO3: Be able to plan a strategic quality
change in an organisation.
3.1 - plan a strategic quality change to improve organizational
performance
3.2 - define resources, tools and systems to support business
processes in a strategic quality change
3.3 - evaluate the wider implications of planned strategic quality
change in an organization
3.4 design systems to monitor the implementation of a
strategic quality change in an organization

SQSM: Learning Outcomes

LO4: Be able to implement a strategic quality
change in an organisation.
4.1 - implement a strategic quality change in an organization.
4.2 - embed a quality culture in an organization to ensure
continuous monitoring and development
4.3 - monitor the implementation of a strategic quality change
in an organization

SQSM: Learning Outcomes

LO5: Be able to evaluate the outcomes of a
strategic quality change in an organisation.

5.1 - evaluate the outcomes of a strategic quality change in an

organization
5.2 - Recommend areas for improvement to a strategic quality
change that align with organizational objectives

Meaning of Quality
Websters Dictionary
degree of excellence of a thing
American Society for Quality
totality of features and characteristics
that satisfy needs
Consumers and Producers Perspective

3-9

Meaning of Quality:
Consumers Perspective
Fitness for use

how well product or

service does what it is
supposed to
Quality of design
designing quality
characteristics into a
product or service
A Mercedes and a Ford are
equally fit for use, but
with different design
dimensions

3-10

Dimensions of Quality:
Manufactured Products
Performance
basic operating characteristics of a product;
how well a car is handled or its gas mileage
Features
extra items added to basic features, such as
a stereo CD or a leather interior in a car
Reliability
probability that a product will operate
properly within an expected time frame; that
is, a TV will work without repair for about
seven years
3-11

Dimensions of Quality:
Manufactured Products

Conformance
degree to which a product meets pre
established standards
Durability
how long product lasts before replacement
Serviceability
ease of getting repairs, speed of repairs,
courtesy and competence of repair person

3-12

Dimensions of Quality:
Manufactured Products
Aesthetics
how a product looks, feels, sounds,
smells, or tastes
Safety
assurance that customer will not suffer
injury or harm from a product; an
especially important consideration for
automobiles
Perceptions
subjective perceptions based on brand
name, advertising, and the like

3-13

Dimensions of Quality:
Service
Time and Timeliness
How long must a customer wait for
service, and is it completed on time?
Is an overnight package delivered
overnight?
Completeness:
Is everything customer asked for provided?
Is a mail order from a catalogue company
complete when delivered?

3-14

Dimensions of Quality:
Service
Courtesy:
How are customers treated by employees?
Are catalogue phone operators nice and are
their voices pleasant?
Consistency
Is the same level of service provided to each
customer each time?
Is your newspaper delivered on time every
morning?

3-15

Dimensions of Quality:
Service
Accessibility and convenience
How easy is it to obtain service?
Does a service representative answer you calls quickly?
Accuracy
Is the service performed right every time?
Is your bank or credit card statement correct every month?
Responsiveness
How well does the company react to unusual situations?
How well is a telephone operator able to respond to a customers
questions?

Meaning of Quality:
Producers Perspective
Quality of Conformance
Making sure a product or service is produced
according to design
if new tires do not conform to specifications,
they wobble
if a hotel room is not clean when a guest
checks in, the hotel is not functioning
according to specifications of its design

3-17

Meaning of Quality:
A Final Perspective
Consumers and producers

perspectives depend on each other

Consumers perspective: PRICE
Producers perspective: COST
Consumers view must dominate

3-18

Meaning of Quality
Meaning
Meaning of
of Quality
Quality

Production
Production

Producers
Producers Perspective
Perspective

Consumers
Consumers Perspective
Perspective

Quality
Quality of
of Conformance
Conformance

Quality
Quality of
of Design
Design

Conformance to
specifications
Cost

Quality characteristics
Price

Fitness
Fitness for
for
Consumer
Consumer Use
Use

Marketing
Marketing

Quality Gurus
Walter Shewart

In 1920s, developed control charts

Introduced the term quality assurance

W. Edwards Deming

Developed courses during World War II to teach

statistical quality-control techniques to engineers

and executives of companies that were military
suppliers
After the war, began teaching statistical quality
control to Japanese companies
Joseph M. Juran
Followed Deming to Japan in 1954
Focused on strategic quality planning

Quality Gurus

Armand V. Feigenbaum

In 1951, introduced concepts of total

quality control and continuous quality
improvement

Philip Crosby

In 1979, emphasized that costs of poor

quality far outweigh the cost of preventing
poor quality
In 1984, defined absolutes of quality
managementconformance to
requirements, prevention, and zero
defects

Kaoru Ishikawa

Promoted use of quality circles

Developed fishbone diagram

Quality and Strategy

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

Two Ways Quality

Improves Profitability
Sales Gains via

Improved
Quality

Improved response
Flexible pricing
Improved reputation

Reduced Costs via

Increased productivity
Lower rework and scrap costs
Lower warranty costs

Increased
Profits

The Flow of Activities

Organizational Practices
Leadership, Mission statement, Effective operating
procedures, Staff support, Training
Yields: What is important and what is to be
accomplished
Quality Principles
Customer focus, Continuous improvement,
Benchmarking, Just-in-time, Tools of TQM
Yields: How to do what is important and to be
accomplished
Employee Fulfillment
Empowerment, Organizational commitment
Yields: Employee attitudes that can
accomplish
what is important
Customer Satisfaction
Winning orders, Repeat customers
Yields: An effective organization
with a competitive advantage

Defining Quality

The totality of features and characteristics of a

product or service that bears on its ability to satisfy
stated or implied needs
American Society for Quality

Quality and Strategy

An operations managers objective is to build a total
quality management system that identifies and
satisfies customer needs

Key Dimensions of Quality

Performance
Features
Reliability
Conformance

Durability
Serviceability
Aesthetics
Perceived quality
Value

Determinants of Service Quality

Reliability

Consistency of performance and dependability

Responsiveness

Willingness or readiness of employees

Competence

Required skills and knowledge

Access

Approachability and ease of contact

Courtesy

Politeness, respect, consideration, friendliness

Communication

Keeping customers informed

Credibility

Trustworthiness, believability, honesty

Security

Freedom from danger, risk, or doubt

Understanding/
knowing the customer

Understand the customers needs

Tangibles

Physical evidence of the service

Service Industry Inspection

Organization
Jones Law Office

What is
Inspected

Standard

Receptionist
performance

Is phone answered by the

second ring

Billing

Accurate, timely, and

correct format

Attorney

Promptness in returning
calls

Service Industry Inspection

Organization
Hard Rock Hotel

What is
Inspected

Standard

Reception
desk

Use customers name

Doorman

Greet guest in less than 30

seconds

Room

All lights working, spotless

bathroom

Minibar

Restocked and charges

accurately posted to bill

Service Industry Inspection

Organization
Arnold Palmer
Hospital

What is
Inspected

Standard

Billing

Accurate, timely, and

correct format

Pharmacy

Prescription accuracy,
inventory accuracy

Lab

Audit for lab-test accuracy

Nurses

Charts immediately
updated

Admissions

Data entered correctly and

completely

Service Industry Inspection

Organization
Olive Garden
Restaurant

What is
Inspected

Standard

Busboy

Serves water and bread

within 1 minute

Busboy

Clears all entre items and

crumbs prior to dessert

Waiter

Knows and suggest

specials, desserts

Service Industry Inspection

Organization
Nordstrom
Department
Store

What is
Inspected

Standard

Display areas

Attractive, well-organized,
stocked, good lighting

Stockrooms

Rotation of goods,
organized, clean

Salesclerks

Neat, courteous, very

knowledgeable

Determinants of Service Quality

Reliability

Consistency of performance and dependability

Responsiveness

Willingness or readiness of employees

Competence

Required skills and knowledge

Access

Approachability and ease of contact

Courtesy

Politeness, respect, consideration, friendliness

Communication

Keeping customers informed

Credibility

Trustworthiness, believability, honesty

Security

Freedom from danger, risk, or doubt

Understanding/
knowing the customer

Understand the customers needs

Tangibles

Physical evidence of the service

Service Specifications at UPS

Service Recovery Strategy

Managers should have a plan for when

services fail
Marriotts LEARN routine
Listen
Empathize
Apologize
React
Notify

Case Study/ Activity Component

2nd Part of the session
Reading
Application of 1st Part
Case lets & scenarios
General Activities/ Experiential Learning activities pertaining to

the contents of 1st Part.

Facilitation and discussion
Small group feedback

Activities

Activity: Video Case Discussion on Quality Management

processes at BMW
Identify appropriate strategic objectives
Discuss the Quality Management processes at BMW
Link the QM processes to the strategic management objectives

139

Assignment Task [Report]

Assignment Task : Read the following Scenario, and prepare a

report with the guidelines provided.
Scenario: The learner is acting as an internal quality consultant
for a chosen organization (preferably where the learner is
currently working). The learner is required to look at the existing
quality management procedures and systems within the
organization, and, implement a strategic quality change, ensuring
the monitoring evaluation systems are in place and evaluating the
outcomes of change.

Assignment Task- [Report]

The report should include the following:
Executive Summary
Introduction of the Chosen Organization and existing quality management systems
within the organization
Explain the importance of effective operations management and quality
management in achieving the organizational objectives. (AC 1.1, 2.1)
Evaluate the success of existing operations management processes and quality
management processes in achieving the chosen organizations strategic management
objectives. (AC 1.2, 2.2)

Assignment Task- [Report]

The report should include the following:
Examine the need for strategic quality change and assess the factors that drive the need for

the strategic quality change. Assess the resource implications for not responding to these
changes. Plan a strategic quality change and implement it to improve organizational
performance. Provide measures and design systems to monitor the implementation of the
planned strategic quality change. The plan done needs to be action oriented, detailed, and
should clearly define the resources, tools and systems that will support the business
processes involved in the quality change process. (AC 3.1, 3.2, 3.4, 4.1, 4.3)
Evaluate the wider implications of strategic quality change on the organization from an
external perspective and the impact on people, systems and functions influencing
performance within the organization. (AC 3.3)
What is the quality culture in the chosen organization? Propose and embed an effective
quality culture to ensure continuous monitoring and progress.(AC 4.2)

Assignment Task- [Report]

The report should include the following:
Evaluate the outcomes of the strategic quality change and recommend areas of

improvement to the strategic quality change that aligns with the overall
organizational objectives (AC 5.1, 5.2).
References (Adhering to Harvard Referencing Format)
The report shall not exceed 10,000 words and should include relevant examples
and illustrations.