Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 4- 1 Chapter 4 Strategic Quality Planning

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.4- 1

Chapter 4

Strategic Quality Planning


Strategic Quality PlanningChapter 4

Strategy ContentThe importance of time in quality improvementLeadership for qualityQuality and ethics

Quality as a strategyQuality strategy processDeploying qualityDoes quality lead to better business results?Supply chain strategy


Strategic Quality Planning Strategy Content

Quality improvement involves identifying Quality improvement involves identifying potential areas for improvement, potential areas for improvement, prioritizing potential areas for prioritizing potential areas for improvement, and planning the improvement, and planning the implementation of projects and implementation of projects and improvementsimprovements


Strategic Quality Planning The importance of time in quality improvement

There are two aspects of timeThere are two aspects of time::

The time it takes to achieve business goals as a result of qualityThe speed at which companies improve


Strategic Quality Planning The importance of time in quality improvement

When goals are set, one of three things When goals are set, one of three things will occurwill occur::

1. People will achieve the goals and incur positive results

2. People will distort the data

3. People will distort the system


Strategic Quality Planning Leadership for quality

Leadership is the process by which a leader influences a group to move towards the attainment of superordinate goals.



For followers to have power, leadership must share power. As a result leadership is about the sharing of power.



This power takes many forms: The power of expertise Reward power Coercive power Referent power Legitimate power


Strategic Quality Planning Leadership for Quality

Leadership Dimensions: Trait Dimension Leader Skills

Knowledge Communication Planning Vision


Strategic Quality Planning Quality and Ethics

Quality appears to be good business

Quality is also good ethics

“We build good ships. At a profit if we can, at a loss if we must. But, we build good ships”

mission statement of Massachusetts shipbuilder


Strategic Quality Planning Quality as a Strategy

Costs of Quality PAF Paradigm

Prevention Costs Appraisal Costs Failure Costs

Internal External

Lundvall–Juran Model


Strategic Quality Planning Quality as a Strategy

Differentiation through quality Focus through quality Quality as a core competency


Strategic Quality Planning Quality Strategy Process

The Forced Choice Model


Strategic Quality Planning Deploying Quality

Hoshin Kanri or Policy DeploymentThe Company develops a 3 - 5 year planThe Senior Executives develop the current years objectives.

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.


Hoshin Kanri or Policy

Deployment Catchball occursThe process is interactiveTeams report upManagement delivers

feedback

4- 15

Hoshin Planning



A Mature Strategic

Planning Process


Strategic Quality Planning Does Quality Lead to Better Business Results?

Quality and Price

Cost

Productivity

Profitability

Sustainability



Quality and PriceCost

Productivity

Profitability

Sustainability



Quality and PriceCostProductivity

Profitability

Sustainability



Quality and PriceCostProductivityProfitability

Sustainability



Quality and PriceCostProductivityProfitabilitySustainability


Strategic Quality Planning Supply Chain Strategy

Supply Chain Strategic Planning



Logistics?When shall we ship?What mode of transportation shall we use?How do we optimize our shipping practices?



Suppliers?Who are our preferred suppliers?What is our process for supplier selection?How do we develop suppliers?How do we link with our suppliers?Do we source globally?



Inventory management?Where do we optimally store inventoryHow much? How long?Do we have perishable stock?Where do we carry safety stock?ARE we maintaining good levels of service?



Information Flows?What kinds of enterprise resource planning systems are needed?How do we link upstream and downstream?What are data relations?What data do we need to manage our supply chain effectively?



Products?How much product do we stock?What product variety is necessary?How do we win orders?Where are our products in their life cycles?



Service?How do we define service along the supply chain?What do our customers want?Can we segment the supply chain?Who are our customers?


Strategic Quality Planning Summary

Strategy ContentThe importance of time in quality improvementLeadership for qualityQuality and ethics

Quality as a strategyQuality strategy processDeploying qualityDoes quality lead to better business results?Supply chain strategy


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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 4- 1 Chapter 4 Strategic Quality Planning