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    Managing QualityIntegrating the Supply Chain

    S. Thomas Foster

    Chapter 1

    Differing Perspectives on Quality

    ( 2007 Pearson Education

    01/16 6:00AM

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    Major Themes Today, supply chains compete, not individual firms.

    A firms supply chain, upstream and downstream, constrains and enablesthe firm.

    Firms must manage quality in their supply chain, upstream anddownstream.

    Quality management is not owned by any one of the functional areas suchas operations, HRM, marketing, etc. All functional areas must own theirquality management processes.

    There is no one way to improve quality. Firms must use the contingency

    approach to assess the current position of the firm and identify an effectivestrategy for improvement based on a clear understanding of their company,market, customers, suppliers, and the quality management alternatives.Improvement is based on the contingent variables that are operative in thefirm as it exists.

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    Chapter Overview

    What is Quality?

    Differing Functional Perspectives on Quality The Three Spheres of Quality

    Other Perspectives on Quality

    Arriving at a Common Perspective

    (

    Differing Perspectives on QualityChapter 1

    ( 2007 Pearson Education

    In chapter 1 through 3, we form the basis for the contingency

    approach. To apply quality improvement on a contingency basis we

    need to understand the foundation that has been laid by leaders in

    the quality movement.

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    What is Quality?Cross-functional and Cross-firm Flows

    Quality management involves flows: process flows, information flows,

    material flows, and fund flows. Each of these flows has to operate

    efficiently, effectively, and with quality. Like a river, we have upstream and

    downstream flows. The sums of these flows make up the supply chain for afirm.

    Using the supply chain as the model for competition, we must internalize

    external upstream and downstream processes from raw materials to after-

    sale service.

    The firm must integrate differing functions, expertise, and dimensions ofquality. This integration requires flexible, cross-functional, problem-solving

    and employees who can adapt to rapidly changing markets.

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    What is Quality?Product Quality Dimensions

    Garvins definitions of qualitybased on the perspective of the viewer(perception is reality)

    Transcendent - quality is intuitively understood but nearly impossible to

    communicate

    Product-based quality is found in the components and attributes of a product

    User-based if the customer is satisfied, the product has good quality

    Manufacturing-based if the product conforms to design specifications, it has

    good quality

    Value-based if the product is perceived as providing good value for the price,it has good quality

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    What is Quality?Product Quality Dimensions

    Performance

    Features Reliability

    Conformance

    Durability

    ServiceabilityAesthetics

    Perceived Quality

    ( 2007 Pearson Education

    Garvins dimensions (measures) of product quality

    These different dimensions of quality are not mutually

    exclusive.

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    What is Quality?Product Quality Dimensions

    (

    Performance

    Features

    Reliability

    Conformance

    Efficiency with which a

    product achieves its intended

    purpose

    ( 2007 Pearson Education

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    What is QualityProduct Quality Dimensions

    Performance

    Features

    Reliability

    Conformance

    Attributes that supplement

    the products basic performance

    bells and whistles

    2007 Pearson Education

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    What is QualityProduct Quality Dimensions

    Performance

    FeaturesReliability

    Conformance

    Performs consistently over the

    products useful life.

    2007 Pearson Education

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    What is QualityProduct Quality Dimensions

    Performance

    Features

    Reliability

    Conformance

    Adherence to quantifiable

    specifications within a small

    tolerance the most traditional

    definition of quality

    2007 Pearson Education

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    What is QualityProduct Quality Dimensions

    Tolerate stress or trauma

    without failing

    Durability

    Serviceability

    Aesthetics

    Perceived Quality

    2007 Pearson Education

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    What is QualityProduct Quality Dimensions

    A product is serviceable if it

    can be repaired easily and

    cheaply

    Durability

    Serviceability

    Aesthetics

    Perceived Quality

    2007 Pearson Education

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    What is QualityProduct Quality Dimensions

    Subjective characteristics

    such as taste, feel, sound, look.

    Durability

    Serviceability

    Aesthetics

    Perceived Quality

    2007 Pearson Education

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    What is QualityProduct Quality Dimensions

    Quality as the customer

    perceives it - image, recognition,

    word of mouth.

    Durability

    Serviceability

    Aesthetics

    Perceived Quality

    2007 Pearson Education

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    What is QualityService Quality Dimensions

    Tangibles

    Service Reliability

    Responsiveness

    Assurance

    Empathy

    2007 Pearson Education

    Parasuraman, Zeithamel, and Berry provide service quality

    dimensions (measures):

    Services have more diverse quality attributes than products

    because of wide variation created byhigh customer involvement.

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    What is QualityService Quality Dimensions

    Tangibles

    Service Reliability

    Responsiveness

    Assurance

    Empathy

    Physical appearance of the

    facility, equipment, and

    personnel

    2007 Pearson Education

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    What is QualityService Quality Dimensions

    Tangibles

    Service Reliability

    Responsiveness

    Assurance

    Empathy

    The ability of the service

    provider to perform the promised

    service

    2007 Pearson Education

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    What is QualityService Quality Dimensions

    Tangibles

    Service Reliability

    Responsiveness

    Assurance

    Empathy

    The willingness of the

    provider to be helpful and

    prompt in providing service

    2007 Pearson Education

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    What is QualityService Quality Dimensions

    Tangibles

    Service Reliability

    Responsiveness

    Assurance

    Empathy

    The knowledge and courtesy

    of the employees and their

    ability to inspire trust and

    confidence

    2007 Pearson Education

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    What is QualityService Quality Dimensions

    Tangibles

    Service Reliability

    Responsiveness

    Assurance

    Empathy

    Caring individualized

    attention from the service

    company

    2007 Pearson Education

    In service If you are in it for the money, you probably wont survive. If

    employees are constantly focused on efficiency, they will not give the

    customers the feeling that they care. There is no empathy, so there are

    no return customers.

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    What is Quality?Why does it matter that different definitions of quality exist?

    2007 Pearson Education

    Different functional areas have different definitions of quality.

    However, we want everyone in all functional areas to execute fromthe same playbook with regard to the meaning of quality for the firm.

    Cross-functional teams must share a common definition of quality

    so these diverse teams will be working for a common goal. All

    functional areas must focus on what they need to do to meet the

    customers definition of quality.

    However, cross-functional teams have poor communication because

    of their different vocabularies, priorities, and cognitive styles.

    As organizational processes become more cross-functional, many of

    these communication issues will resolve themselves.

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    Functional perspectives include:

    Supply Chain Operations

    Strategic Management

    Marketing

    Financial Human resource

    What is Quality?Differing Functional Perspectives on Quality

    2007 Pearson Education

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    What is Quality?

    Differing Functional Perspectives on Quality

    Supply Chain Management (SCM) Perspective

    Supply chain management (SCM) grew out of the concept of the value chain.

    The value chain includes inbound logistics, core processes (operations andmarketing), and outbound