MGT510 Highlighted Handouts

TABLE OF CONTENTS · Lecture # · Topic · Page #

1.

2.

3. Integrating People and Performance Through Quality Management ................................ 11

4. Fundamentals of Total Quality and Raters View .............................................................. 12

5. Total Quality Management and Global Competitive Advantage ...................................... 20

6. Total Quality Management and Planning for Quality at Office ........................................ 26

7. Leaders in Quality Revolution and Defining for Quality .................................................. 32

8. Taguchi Loss Function and Quality Management ............................................................ 36

9. WTO, Shifting Focus of Corporate Culture and Organizational Model of Management . 39

10. History of Quality Management Paradigms ...................................................................... 41

11. Defining Quality, Quality Management and Links with Profitability ............................... 46

12. Learning about Quality and Approaches from Quality Philosophies ................................ 51

13. Total Quality Management Theories................................................................................. 54

14. Deming‘s Philosophy and 14 Points for Management ...................................................... 57

15. Deming Cycle and Quality Trilogy ................................................................................... 61

16. Juran and Crosby on Quality and Quality is Free ............................................................. 64

17. Crosby‘s Concept of Cost of Quality ................................................................................ 67

18. Costs of Quality and Return on Quality ............................................................................ 69

19. Overview of Total Quality Approaches ............................................................................ 71

20. Business Excellence Models ............................................................................................. 75

21. Designing Organizations for Quality ................................................................................ 82

22. Developing ISO QMS for Certification ............................................................................ 88

23. ISO 9001(2000) QMS Management Responsibility ......................................................... 94

24. ISO 9001(2000) QMS (Clause # 6) Resources Management ......................................... 102

25. ISO 9001(2000) (Clause # 7) Product Realization and Customer Related Processes ..... 107

26. ISO 9001(2000) QMS (Clause # 7) Control of Production and Services ....................... 117

27. ISO 9001(2000) QMS (Clause # 8) Measurement, Analysis, and Improvement ............ 121

28. Quality in Software Sector and Maturity Levels ............................................................. 131

29. Installing an ISO -9001 QM System ............................................................................... 134

30. Creating Business Excellence ......................................................................................... 137

31. Creating Quality at Strategic, Tactical and Operational Level ....................................... 140

32. Big Q and Small q Leadership for Quality ...................................................................... 145

33. Strategic Planning for Quality and Advanced Quality Management Tools .................... 149

34. Hoshin Kanri and Strategic Policy Deployment ............................................................. 156

35. Quality Function Deployment (QFD) and Other Tools for Implementation .................. 159

36. Basic SQC Improvement Tools ...................................................................................... 161

37. How Quality is Implemented? A Dialogue with a Quality Manager! ............................. 167

38. Cause and Effect Diagram and Other Tools of Quality .................................................. 168

39. Statistical Process Control (SPC) for Continual Quality Improvement .......................... 172

40. Statistical Process Control….Contd. ............................................................................... 173

41. Building Quality Through SPC ....................................................................................... 175

42. An Interview Session with Officers of a CMMI Level 5 Quality IT Pakistani Company177

43. Teamwork Culture for TQM ........................................................................................... 178

44. Understanding Empowerment for TQ and Customer-Supplier Relationship .................. 184

45. CSR, Innovation, Knowledge Management and Introducing Learning Organization .... 188

Lesson # 01

PROFESSIONAL MANAGERIAL ERA (1950)

In our present age of market driven capitalism and futuristic knowledge driven economic markets, the

decision are made and the trends are set by the professional managers. Unlike their predecessors, the

captains of today‘s business do not own their own companies. They must know the whole business but

have control over only one small part. They must be product oriented, process conscious, financially

responsible, and public spirited. They must be all things to all people, yet still function as only one cog

in the wheel.

If the history of management tells us anything, it is that, no matter what happens; peace or war,

prosperity or famine, this world will always be in need of good managers . . . the kind who can get

society from ―where it is‖ to ―where it wants to be.‖ Can you be one?

What is an Organization?

―An organization is an entity where two or more persons work together to achieve a goal or a

common purpose.”

There are so many organizations around us. Daily we visit and see many organizations, Hospitals,

Colleges, Factories, Farms and Government offices. Mosque/Church is also an example of an

organization. People go there and say prayers. Activities of praying are to achieve a certain goal.

Similarly, any unit in which two or more persons are working together for some purpose is called an

organization.

Unit of Organization: · People · Purpose · Process · POLCA

If there is an organization, then there must be some people. They work as whole for a common purpose,

so there must be a defined purpose. If an organization doesn‘t have any purpose, it will not survive for

long run. To achieve the purposes by using people, the processes are needed. Without any process, you

cannot achieve any type of purpose or goal. If we see in our daily life, we have some goals. For

achieving these goals, we use some processes. So that process is also obvious and important for an

organization. The last important thing for any organization is that it requires main pillars of management

i.e. POLCA:

Planning · Organizing · Leading · Controlling

A manager must perform all theses management functions with Assurance!

Quality Assurance

Quality assurance refers to any planned and systematic activity directed toward providing consumers

with products (goods and services) of appropriate, along with the confidence that products meet

consumers‘ requirements. Quality assurance usually associated with some form of measurement and inspection activity has been an important aspect of production operations throughout history. Egyptian

wall paintings circa 1450 B.C. show evidence of measurement and inspection. Stones for the pyramids

were cut so precisely that even today it is impossible to put a knife blade between the blocks. The

Egyptians‘ success was due to the consistent use of well-developed methods and procedures and precise

measuring devices.

Quality is, in fact, not just functional excellence of products or services, but it is about whole aspects of

product characteristics. Take a high quality watch produced by Company A for example. No matter if

the craftsmanship is exceptionally high, if the production cost and sales price are so high that nobody

can afford to buy such watches, no one can claim that the watch quality is truly high. In other words,

quality assurance is not just about functional excellence, but includes all aspects of production.

When a company produces a product, its major tasks are to assure that its quality is beyond customers‘

needs and that no defective units are delivered to customers. This, however, does not mean that it is

acceptable for a company to produce defective units, as long as they are not delivered to customers.

Why? Because producing non-conforming articles will bring financial loss to the company. In other

words, if a company‘s products cannot be sold in the market, it will have to bear the entire cost of

production. Therefore, the fewer the non-conforming articles produced, the lower the production cost,

thus the lower their price.

In this respect, it is important that not only does the company not circulate defective products in the

market, but also it does not manufacture such products in the first place. Quality assurance is to bridge

gaps in the dispersion of quality, aiming to attain the expected value.

What is Quality Assurance?

Disparity is caused by defective units, to reduce the number of defective articles means to manage the

disparity (Karatsu 1995, 38). The causes of disparity can be found in various factors, such as raw

materials, machinery conditions, and the weather. Quality assurance does not necessarily mean the

achievement of the highest quality, but neither does it mean achieving the minimum quality that one can

expect. It has to be value for money for both consumers and producers, where disparity suggests the

ranges within the possible frequencies.

Source:

‗Handbook for TQM and QCC‘ Volume I What is TQM and QCC? A Guide for Managers

Quality Focus Approach to Management

―There are really only three types of people: those who make things happen, those who watch things

happen, and those who say, ‗What happened?‖