Ch06_ISM[1] - CHAPTER Managing Quality 6 DISCUSSION QUESTIONS 1 Higher quality leads to greater demand to greater market share to greater economies

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65 6 CHAPTER Managing Quality D ISCUSSION Q UESTIONS 1. Higher quality leads to greater demand, to greater market share, to greater economies of scale. Additionally, higher quality leads to less scrap, rework, and warranty cost, hence to less input required for same output. 2. Baldrige Award Categories, Items and Point Values Categories/Items Point Values 1.0 Leadership 120 1.1 Organizational Leadership 70 1.2 Social Responsibility 50 2.0 Strategic Planning 85 2.1 Strategy Development 40 2.2 Strategy Deployment 45 3.0 Customer and Market Focus 85 3.1 Customer and Market Knowledge 40 3.2 Customer Satisfaction and Relationships 45 4.0 Measurement, Analysis, and Knowledge 90 4.1 Measurement of Organizational Performance 45 4.2 Information and Knowledge Mngt. 45 5.0 Human Resource Focus 85 5.1 Work Systems 35 5.2 Employee Learning 25 5.3 Employee Well-Being and Satisfaction 25 6.0 Process Management 85 6.1 Value Creation Processes 50 6.2 Support Processes 35 7.0 Business Results 450 7.1 Customer-Focused Results 75 7.2 Product and Service Results 75 7.3 Financial and Market Results 75 7.4 Human Resource Results 75 7.5 Organizational Effectiveness Results 75 7.6 Governance and Social Responsibility 75 Total Points 1000 Source: Malcolm Baldrige National Quality Award 2005 Criteria for Performance Excellence at 3. Of Deming’s 14 points, “finding problems” is certainly one of the three. The selection of the other two is not as clear-cut. Many would say “reducing fear” is important, but its purpose is really to find problems. The first point, on getting management to put forth common goals and stick with them—“constancy of purpose”—is our second choice. The third is “methods”—not giving goals without providing the methods to achieve them. 4. Six concepts for an effective TQM program: continuous im- provement, employee involvement, benchmarking, Just-in-Time, Taguchi concepts, and knowledge of TQM tools. The 14 points were Deming’s way of showing how he implemented TQM. 5. Deming (14 points, leadership and training; good workers cannot overcome bad processes); Crosby (Quality is Free–the cost of poor quality is underestimated); and Juran (top management involvement in quality is vital). 6. The seven tools of TQM are: ¡# Checksheet ¡# Scatter diagram ¡# Histograms ¡# Pareto charts ¡# Flow charts ¡# Cause-and-effect diagrams ¡# Statistical process control chart 7. If there is fear, people will not bring up problems. If there is no pride in work, there is no motivation. If management does not lead by example, why should employees care? 8. A university can seek to control the quality of its graduates by: ¡# Setting specific goals for its overall accomplishments ¡# Employing quality faculty ¡# Setting appropriate standards (prerequisites, GPA, required credit hours, etc.) ¡# Employing appropriate evaluation devices (quizzes, ex- aminations, term papers, etc.) 9. Philip B. Crosby believed that quality is free, because on bal-
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This note was uploaded on 07/05/2010 for the course OPER 2P91 taught by Professor Eugenekaciak during the Spring '10 term at Brock University, Canada.

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Ch06_ISM[1] - CHAPTER Managing Quality 6 DISCUSSION QUESTIONS 1 Higher quality leads to greater demand to greater market share to greater economies

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