compettiveress of an oanition though mprovement of the quality THE TOTAL QUALITY APPROACH DEFINED Just as there are diffierent definitions of quality, there are dif- ferent definitions of total quality. The authors define total quality as follows must be improved, continually and forever. What is con- sadered excellent today may be just mediocre tomorrow cannot survive, mach les thrive, unless they outperform atime line that showes some of the major events in the evolution Consequently. "good enough" is never good enough. Another way to understand total quality as a concept is shown in Figure 1.2. Notice that the first part of the defi- nition in Figure 12 esplains the what of total quality: the second part explains the how. In the case of total quality, the how is important because it is what separates this approach to doing business from all of the others The total in total quality indicates a concern for quality in the broadest sense-what has come to be known as the "Big Q" Big Q refers to quality of products, services, people. processes, and emvironments. Correspondingly. "Litle Q refers to a narrower concern that focuses on the quality of one of these elements or individual quality criteria within an individual element. into one. Taylor's scientific management did away with this by making planning the job of management and production the job of labor. To keep quality from falling through the cracks, it was necessary to create a separate quality depart- ment. Such departments had shaky beginnings, and just who was responsible for quality became a clouded issue. As the volume and complexity of manufacturing grew, quality became an increasingly difficult issue. Volume and complexity together gave birth to quality engineering in the 1920s and reliability engineering in the 1950s. Quality engi- neering, in turn, resulted in the use of statistical methods in the control of quality, which eventually led to the concepts of control charts and statistical process control, whích are now fundamental aspects of the total quality approach. Redliability engineering emerged in the 1950s. It began a trend toward moving quality control away from the traditional after-the-fact approach and toward inserting it throughout the design and production processes. However, for the most part, quality control in the 1950s and 1960s involved inspections that resulted in nothing more than cutting out bad parts. World War II had an impact on quality that is still being felt. In general, the effect was negative for the United States and positive for Japan. Because of the urgency to meet production schedules during the war, US. companies focused more on meeting delivery dates than on quality. This approach became a habit that carried over even after the competition in proving superior value. And quality is an of the tal quality movement since the days of Taykoe. Tiylor is esential ingredient in superior value (quality, cost, service). now known a the father of scientific management The individual characteristics relating to total quality shown in Figure 12 are explained later in this chapter. Customer Focus The most fundamental aspect of scientific manage ment is the separation of planning and esecution. Although the division of labor spawned tremendous leaps forward in productivity, it virtually eliminated the old practice of one highly skilled individual performing all the tasks required The total quality movement had its roots in the time and motion to produce a quality product. In a sense, that individual was studies conducted by Frederick Taykor in the 1920. Table 11 s CEO, production worker, and quality controller all rolled The Historic Development of Total Quality TABLE 1.1 100 Years of Selected Historic Milestones in the Global Quality Movement Measures People Processes 1908 1904 Sastical proces Quity a buitin cont Continual improvement Quity s epected Good enoughra fort atains perlect pert terchange Shetat idertfes caes of process variation an common and special, and develops the statistical process cortral SPC) Prior to 1906-1908 atbity eliminating the need for skiled craftumen Time regd tor a Ford Benchmarkng 1931 Alats skilled catumen caled "Fiters Time reg'd Al embled by never good enough How Is Total Quality Different? not inspected Shehat puhes hs book Eanome Quity o • Employees are empowend What distinguishes the total quality approach from tra- ditional ways of doing business can be found in how it is achieved. The distinctive characteristic of total quality are these strategically based, customer focus (internal and ex- An easy way to grasp the concept of total quality is termal), obsession with quality, use of the scientific approach in decision making and problem solving, long-term com- mitment, teamwork, continual process improvement, bot- tom-up education and training, freedom through control, unity of purpose, and employee involvement and empow- erment, all deliberately aimed at supporting the organiza tional strategy. The underlying concept that drives the need for total quality is competitivemess. Although pride of prod- uct (or service) is a philosophical driver of the total quality concept-organizations that produce a product or provide a service should want it to represent them in a way they can be proud of-the practical driver is competitiveness. In today's "processes" leg of the stool makes the point that processes globally competitive business environment, organizations compiete a Fond Fier's Assembler to com plete h Contral of Quality of Manufactured Poducts tak wn 856 hous asigned task 23minut chart FIGURE 1.1 Three-Legged Stool of Total Quality. 1906 1913 1927 199 to consider the analogy of a three-legged stool, as shown in Figure L.1. The seat of the stool is customer focus. This means with total quality the customer is in the "driver's seat" as the primary arbiter of what is acceptable in terms of quality. Each of the three legs is a broad element of the total quality philosophy (Le, measures, people, and pro- cesses). The "measures" leg of the stool makes the point that quality can and must be measured. The "people" leg of the stool makes the point that quality cannot be inspected into a product or service. Rather, it must be built in by people who are empowered to do their jobs the right way. The Cadac achieves perfect inerchan gabty of part Dening mets Shehart and sees the evance Sat of Word W Ford ntroduces the movine aetly ine educng the Asembiers ot hs das to management. tk ime to 19mntes 1960&19 Japan caphures market share 1941 196 1950 Deming teaches SPC Ameican watme E Toyada & Taichi as pent-up demand tor Chne start devekpnent of ton Westen manuactures Toycta Production Sye (TPS. Continues to this date SPC tades in America the war. manufactured goods seem boundess US knes some market segments compitely Japanese companies, on the other hand, were forced to learn to compete with the rest of the world in the produc- tion of nonmilitary goods. At first, their attempts were un- cuccessful, and "Made in Japan" remained synoymous with poor quality, as it had been before World War IL. Around 1950, however, Japan decided to get serious about quality and establishing ways to produce quality products. Japanese manufacturers overcame a reputation for pro- ducing cheap, shabby products and developed a reputation as world leaders in the production of quality products. More than any other single factor, it was the Japanese miracle- production worken SPCwidely used 190 2964 NBC As TV documentary Japanese engireens, managen managemert couns apan Can, Why Cant we Brings ertion to Japanese ucost with quity and to Deming American industry begins to m from Japan End of World War Deming trai hundreds of Juran conducts quality ecutives and scholars in SPC and quality concepts inapan What It is Total quaity is an acorach to doing business that aempts to manie the comp 2010 an organiation through the contn improvement of the quality s products, services, people processes, and environments TOMLana Sa generaly acknowedged worldwide an the ma 198 1985 1988 How It is Achieved 1993 which was not a mirade at all but the result of a concerted Ford and GMine Demng to speak to eecutves. Ford Iistened bether than GM American organiations Begng of adton uS. Det of Detene of tutal quity management by US. Dept of Detense endores TOM casing Deb contracton to followt nagement system of the tentyfrt century, and are The ttal quality approach has the folowing characteristics • Strategicaly based Customer facus nternaland etemal Obsession h oualty • Scientfic accroach to decnion making and problem soving • Longem commment Teamwork • Continual improvement of people, processes, produch, services, and environments Eduton and training Freedom through cortrol Unity of purpose • Employee imvovement and empowerment Peak performance asatp prionity TOMsidely ught in US colegn practiced by organtions and universtes effort that took 20 years to really bear fruit-that got the rest of the world to focus on quality. When Western companies finally realized that quality was the key factor in global com- petition, they responded. Unfortunately, their first responses wee tle uppnite uf wlat was ceded. In spite of these early negative reactions, Western com- panies began to realize that the key to competing in the global marketplace was to improve quality. With this realization, the total quality movement finally began to gain momentum. across the plant 1982 1987 1990 2000 2000 Deming publhes US Congess estabishes Laan Production as s0 9000, he ietmational Gobal competteness a defintion of the Toyota Standard for Quality w maks talqualtya rentoncorpot buineon imporate in Quai Productv Campete Poston of managmert baed he Macom Baldig Poduon yom uned by the book The National Quty ard busineos mportivo in all indutraled nations of the worid philosophy Mutorola troduce Si TOM conceps on hs Toute Sa ama more powertu Machine Tut Oupe Signa rsian of TOM on his "Fourteen Poin" he Word
compettiveress of an oanition though mprovement of the quality THE TOTAL QUALITY APPROACH DEFINED Just as there are diffierent definitions of quality, there are dif- ferent definitions of total quality. The authors define total quality as follows must be improved, continually and forever. What is con- sadered excellent today may be just mediocre tomorrow cannot survive, mach les thrive, unless they outperform atime line that showes some of the major events in the evolution Consequently. "good enough" is never good enough. Another way to understand total quality as a concept is shown in Figure 1.2. Notice that the first part of the defi- nition in Figure 12 esplains the what of total quality: the second part explains the how. In the case of total quality, the how is important because it is what separates this approach to doing business from all of the others The total in total quality indicates a concern for quality in the broadest sense-what has come to be known as the "Big Q" Big Q refers to quality of products, services, people. processes, and emvironments. Correspondingly. "Litle Q refers to a narrower concern that focuses on the quality of one of these elements or individual quality criteria within an individual element. into one. Taylor's scientific management did away with this by making planning the job of management and production the job of labor. To keep quality from falling through the cracks, it was necessary to create a separate quality depart- ment. Such departments had shaky beginnings, and just who was responsible for quality became a clouded issue. As the volume and complexity of manufacturing grew, quality became an increasingly difficult issue. Volume and complexity together gave birth to quality engineering in the 1920s and reliability engineering in the 1950s. Quality engi- neering, in turn, resulted in the use of statistical methods in the control of quality, which eventually led to the concepts of control charts and statistical process control, whích are now fundamental aspects of the total quality approach. Redliability engineering emerged in the 1950s. It began a trend toward moving quality control away from the traditional after-the-fact approach and toward inserting it throughout the design and production processes. However, for the most part, quality control in the 1950s and 1960s involved inspections that resulted in nothing more than cutting out bad parts. World War II had an impact on quality that is still being felt. In general, the effect was negative for the United States and positive for Japan. Because of the urgency to meet production schedules during the war, US. companies focused more on meeting delivery dates than on quality. This approach became a habit that carried over even after the competition in proving superior value. And quality is an of the tal quality movement since the days of Taykoe. Tiylor is esential ingredient in superior value (quality, cost, service). now known a the father of scientific management The individual characteristics relating to total quality shown in Figure 12 are explained later in this chapter. Customer Focus The most fundamental aspect of scientific manage ment is the separation of planning and esecution. Although the division of labor spawned tremendous leaps forward in productivity, it virtually eliminated the old practice of one highly skilled individual performing all the tasks required The total quality movement had its roots in the time and motion to produce a quality product. In a sense, that individual was studies conducted by Frederick Taykor in the 1920. Table 11 s CEO, production worker, and quality controller all rolled The Historic Development of Total Quality TABLE 1.1 100 Years of Selected Historic Milestones in the Global Quality Movement Measures People Processes 1908 1904 Sastical proces Quity a buitin cont Continual improvement Quity s epected Good enoughra fort atains perlect pert terchange Shetat idertfes caes of process variation an common and special, and develops the statistical process cortral SPC) Prior to 1906-1908 atbity eliminating the need for skiled craftumen Time regd tor a Ford Benchmarkng 1931 Alats skilled catumen caled "Fiters Time reg'd Al embled by never good enough How Is Total Quality Different? not inspected Shehat puhes hs book Eanome Quity o • Employees are empowend What distinguishes the total quality approach from tra- ditional ways of doing business can be found in how it is achieved. The distinctive characteristic of total quality are these strategically based, customer focus (internal and ex- An easy way to grasp the concept of total quality is termal), obsession with quality, use of the scientific approach in decision making and problem solving, long-term com- mitment, teamwork, continual process improvement, bot- tom-up education and training, freedom through control, unity of purpose, and employee involvement and empow- erment, all deliberately aimed at supporting the organiza tional strategy. The underlying concept that drives the need for total quality is competitivemess. Although pride of prod- uct (or service) is a philosophical driver of the total quality concept-organizations that produce a product or provide a service should want it to represent them in a way they can be proud of-the practical driver is competitiveness. In today's "processes" leg of the stool makes the point that processes globally competitive business environment, organizations compiete a Fond Fier's Assembler to com plete h Contral of Quality of Manufactured Poducts tak wn 856 hous asigned task 23minut chart FIGURE 1.1 Three-Legged Stool of Total Quality. 1906 1913 1927 199 to consider the analogy of a three-legged stool, as shown in Figure L.1. The seat of the stool is customer focus. This means with total quality the customer is in the "driver's seat" as the primary arbiter of what is acceptable in terms of quality. Each of the three legs is a broad element of the total quality philosophy (Le, measures, people, and pro- cesses). The "measures" leg of the stool makes the point that quality can and must be measured. The "people" leg of the stool makes the point that quality cannot be inspected into a product or service. Rather, it must be built in by people who are empowered to do their jobs the right way. The Cadac achieves perfect inerchan gabty of part Dening mets Shehart and sees the evance Sat of Word W Ford ntroduces the movine aetly ine educng the Asembiers ot hs das to management. tk ime to 19mntes 1960&19 Japan caphures market share 1941 196 1950 Deming teaches SPC Ameican watme E Toyada & Taichi as pent-up demand tor Chne start devekpnent of ton Westen manuactures Toycta Production Sye (TPS. Continues to this date SPC tades in America the war. manufactured goods seem boundess US knes some market segments compitely Japanese companies, on the other hand, were forced to learn to compete with the rest of the world in the produc- tion of nonmilitary goods. At first, their attempts were un- cuccessful, and "Made in Japan" remained synoymous with poor quality, as it had been before World War IL. Around 1950, however, Japan decided to get serious about quality and establishing ways to produce quality products. Japanese manufacturers overcame a reputation for pro- ducing cheap, shabby products and developed a reputation as world leaders in the production of quality products. More than any other single factor, it was the Japanese miracle- production worken SPCwidely used 190 2964 NBC As TV documentary Japanese engireens, managen managemert couns apan Can, Why Cant we Brings ertion to Japanese ucost with quity and to Deming American industry begins to m from Japan End of World War Deming trai hundreds of Juran conducts quality ecutives and scholars in SPC and quality concepts inapan What It is Total quaity is an acorach to doing business that aempts to manie the comp 2010 an organiation through the contn improvement of the quality s products, services, people processes, and environments TOMLana Sa generaly acknowedged worldwide an the ma 198 1985 1988 How It is Achieved 1993 which was not a mirade at all but the result of a concerted Ford and GMine Demng to speak to eecutves. Ford Iistened bether than GM American organiations Begng of adton uS. Det of Detene of tutal quity management by US. Dept of Detense endores TOM casing Deb contracton to followt nagement system of the tentyfrt century, and are The ttal quality approach has the folowing characteristics • Strategicaly based Customer facus nternaland etemal Obsession h oualty • Scientfic accroach to decnion making and problem soving • Longem commment Teamwork • Continual improvement of people, processes, produch, services, and environments Eduton and training Freedom through cortrol Unity of purpose • Employee imvovement and empowerment Peak performance asatp prionity TOMsidely ught in US colegn practiced by organtions and universtes effort that took 20 years to really bear fruit-that got the rest of the world to focus on quality. When Western companies finally realized that quality was the key factor in global com- petition, they responded. Unfortunately, their first responses wee tle uppnite uf wlat was ceded. In spite of these early negative reactions, Western com- panies began to realize that the key to competing in the global marketplace was to improve quality. With this realization, the total quality movement finally began to gain momentum. across the plant 1982 1987 1990 2000 2000 Deming publhes US Congess estabishes Laan Production as s0 9000, he ietmational Gobal competteness a defintion of the Toyota Standard for Quality w maks talqualtya rentoncorpot buineon imporate in Quai Productv Campete Poston of managmert baed he Macom Baldig Poduon yom uned by the book The National Quty ard busineos mportivo in all indutraled nations of the worid philosophy Mutorola troduce Si TOM conceps on hs Toute Sa ama more powertu Machine Tut Oupe Signa rsian of TOM on his "Fourteen Poin" he Word
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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