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Amity Business School

Strategic Quality Management


Semester III 40 Contact Hrs. 4 Credits

Amity Business School

Transition from Old to New age PoliciesPhilosophy of integrating market driven focus elements for continuous improvement in all work processes of the enterprise becomes necessary due to: Customer driven market revolution Fierce global competition Unpredictable market, changing expectations & moving targets Need to develop a customer focused culture Integrate market driven culture Focus on quality, cost, productivity Customer loyalty & Change Management

Amity Business School

Evaluation of Competitive CapabilitiesWhat is that you do that the customers value better than the competition Evaluation of your resources is of no value unless done in respect to your competitors If you are not the best in a critical activity, you are sacrificing the competitive advantage by continuing to do what you are doing with old practices Only the firms that are able to continually build new strategic assets faster and cheaper than the competition will earn superior customer value and returns over long period

Amity Business School

Focus Elements of a Market Driven Enterprise Commitment to customer satisfaction Human Resource Development Total Quality Culture Error Prevention Philosophy Zero Error Solutions Design & Product Quality Quality Services Quality of Management & Services People Development Productivity, efficiency and effectiveness Process & Technologies for continuous improvement

Amity Business School

Total Quality Managementconcepts & understanding

TQM is a philosophy that represents a set of guiding principles that lays the foundation of a continuously improving and customer driven organization

The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share. - William Cooper Procter

Amity Business School

TQM IS Encompassing and mobilizing entire organization to satisfy the customer Improving each individual and groups within the organization Integrating the philosophy and practices in day to day approach to work Influencing all product, services, systems, process & technology Long term and continuous and is sensitive to the social responsibilities of the enterprise Supporting High Performance Culture through teamwork, trust & leadership IT IS NOT A program, that has a beginning & an end. It is a continuous journey.

Amity Business School

History Craftsmen Early days, generations learning, own inspector. Early 20th Century Unskilled repetitive, start of interchangeability. Ford Story. Standardization, concepts for quality, Mass Mfg. Post War.. American Society for Quality 1944Safety, Public interest producer beware

Dr. Joseph Juran & Dr. Edward Demming storyPioneering work in Total Quality ( in Japan ) Demming returns to US (1980-1993)

Product Quality to Performance ExcellenceQuality of Management as important as Management of Quality

American Society for Quality identifies future challenges Partnering, Learning system, Adaptability and speed of change Environmental Sustainability, Knowledge Focus, Globalization Customization & Differentiation, Shifting Demographics

Amity Business School

Journey to TQM.

TQM All Employees involved Empowerment Teamwork Quality Strategy Quality Assurance Quality Systems ISO Quality Planning Quality Policy Quality Controls Problem Solving

Quality Control yQuality Standards yStatistical Controls yProcess Performance yTreat Quality Problems Inspection yError Detection yRectification yUnhappy Customer

Amity Business School

History of Quality ( Contd.) Quality awareness in U.S. manufacturing industry during 1980s: from Little Q to Big Q - Total Quality Management Malcolm Baldrige National Quality Award (1987) Disappointments and criticism


Amity Business School

History of Quality ( Contd.) Emergence of quality management in service industries, government, health care, and education Evolution of Six Sigma Current and future challenge: keep progress in quality management alive


Amity Business School

Contemporary Influences on Quality Partnering Learning systems Adaptability and speed of change Environmental sustainability Globalization Knowledge focus Customization and differentiation Shifting demographics

Amity Business School

Definitions of Quality Transcendent definition: excellence definition: Product-based definition: quantities of product attributes Productdefinition: User-based definition: fitness for intended use Userdefinition: Value-based definition: quality vs. price Valuedefinition: Manufacturing-based definition: conformance to specs Manufacturingdefinition:


Amity Business School

Quality Perspectivestranscendent & productproduct-based useruser-based

needs Customervaluevalue-based


products and services


Manufacturing DistributionInformation flow Product flow13

Amity Business School

Paradigm ShiftFrom.

Management of Qualityto

Quality of Management

Amity Business School

Malcolm BaldrigeCriteria Leadership Strategic Planning Customer & Market Focus Information & Analysis Human Resources Development & Planning Process Management Business Results

Weightage 12% 8% 8% 8% 10% 10% 44%

Amity Business School

Understanding of Criteria1. Leadership Leadership System.. How the senior leaders guide the company in setting directions and in developing and sustaining an effective leadership system. Company Responsibility & Citizenship How the company addresses the its responsibility to the public and how it practices good citizenship. Strategic Planning Strategy Development Process.. How the company sets strategic directions to better define and strengthen its competitive position and how the development process leads to action plan for deploying and aligning key plan and performance requirements. Company Strategy.. How the performance requirements and measures align with the human resource plan and how the plans project the cos future as compared to the competitors and key benchmarks. Customer & Market Focus Customer & Market Knowledge.. How the company determines the long term requirements and preference of target and potential customers and market and anticipate needs to develop business opportunities . Customer Relationship & Satisfaction Enhancement..How the company determines and enhances the satisfaction of customers to strengthen relationships to improve current offerings and to support customer and market related planning.



Amity Business School

Understanding of Criteria (contd.)4. Information & Analysis Selection & Use of Information & DataHow the co. selects, manages and uses the information and data needed to support key company process and improve the cos performance. Selection & use of comparative information & data.. How the company selects, manages and uses comparative information data to improve cos competitive position. Analysis & Review of Companys Performance..How the co. analyses and reviews overall performance to assess the progress relative to plans to identify key areas of improvement. 5. Human Resources Development & Management Work Systems.. What is the companys work & job design and its compensation and recognition approaches to enable and encourage all employees to contribute effectively to achieve the cos performance and learning objective. Employee Education Training & Development.. How the cos training and education addresses its plan and needs including building knowledge & capabilities & contribute to improved employees performance and development. Employee Well-Being & Satisfaction..How the company maintains its work environment and work climate to support the well-being, satisfaction and motivation of all its employees

Amity Business School

Understanding of Criteria ( Contd.)6. Process Management Management of Product & Service Processes..How the significantly modified and customized products and services are designed. How the product/services delivery systems are designed, implemented and improved. Management of Support Process.. How the cos key support processes are designed, managed and continuously improved. Management of Supplier and Partnering..How the cos supplier and partnering processes, performance and relationships are managed and improved. 7. Business Results Customer Satisfaction Results..How the co. performance on Customer Satisfaction Financial & Market Results.Cos key financial & marketplace performance Human Resource ResultsCos Human Resource results including employee wellbeing, satisfaction, development and work system performance Supplier & Partner ResultsCos supplier and partner results Company-Specific ResultsHow the companys key operational performance and results significantly contribute to key company goals- customer satisfaction, operational effectiveness and financial/market place and performance.

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LeadershipThe ability to positively influence people and systems under ones authority to have a meaningful impact and achieve important results

Amity Business School

The Baldrige Leadership TriadStrategic Planning



Customer and Market Focus

Amity Business School

Executive Leaders