Growth of Modern Quality Management

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Growth of Modern Quality Management
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Manufacturing Systems

• Product design and engineering
• Purchasing and receiving
• Production planning and scheduling
• Manufacturing and assembly
• Tool engineering
• Industrial engineering and process design
• Finished goods inspection and test
• Packaging, shipping, and warehousing
• Installation and service

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Quality in Business Support Functions for
Manufacturing

• General management
• Marketing and sales
• Finance and accounting
• Human resource management
• Quality assurance
• Legal services

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Quality in Services

• Service is defined as any primary or
  complementary activity that does not directly
  produce a physical product that is, the
  non-goods part of the transaction between buyer
  (customer) and seller (provider).

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Critical Differences between Service and
Manufacturing

• Customer needs and performance standards are more
  difficult to identify and measure
• Services require a high degree of customization
• Services are produced consumed simultaneously
• Customers are often involved in actual process
• Services are often more labor-intensive
• Handle large numbers of transactions

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Key Components of Service System Quality

• Employees
• Information technology

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The Ritz-Carlton Hotel Co.
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Quality in Health Care

• Joint Commission on Accreditation of Healthcare
  Organizations (JCAHO)
• National Committee for Quality Assurance (NCQA)
• Institute for Healthcare Improvement (IHI)
• 1999 expansion of the Baldrige Award to health
  care organizations

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Quality Issues in Health Care

• Avoidable errors and abuses
• Underutilization of services
• Overuse of services
• Variation in services
• Customer satisfaction
• Cost reduction

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Quality in Education

• Koalaty Kid program
• 1999 expansion of the Baldrige Award to nonprofit
  education organizations
• Success stories
• Mt. Edgecumbe High School
• Brazosport ISD
• Hunderton Central Regional HS
• Univ. of Wisconsin-Stout

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Higher Education as a Production System
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Quality in the Public Sector

• Quality in the Federal Government
• State and Local Quality Efforts