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12 Cards in this Set
- Front
- Back
Quality IS by nature strategic.
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true
Strategic Planning has 2 important dimensions: -Content (what does strategy contain) -Process (how are we going to develop it) |
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Strategy Content
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Key Variables to consider:
Time Leadership Quality Costs Generic Strategies Order Winners Quality as core competency |
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Time
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Plants/firms that improved quality conformance SLOWLY actually realized cost savings
Short term goals can actually be detrimental--Ex. Management by dictate "decrease defects by 50% this year"--without providing any additional training, resources, or processes |
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Leadership
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all about the sharing of power
superordinate goals: goals that pertain to achieving a higher end that benefits NOT just the individual but the group Power of expertise Reward Power Coercive Power Referent Power -- Trait Dimension Leader skills --Knowledge --Communication --Planning --Vision Nothing can damage a quality improvement effort more than management's failure to consider implementing changes that employees recommend |
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Quality & Ethics
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Good quality management is good ethics
when you focus on end customers you end up also focusing on employees |
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Quality as a Strategy--Cost
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3 generic strategies
-Cost -Differentiation -Focus 2 broad categories of Cost: --costs due to poor quality --costs due to improving quality PAF Paradigm: Prevention Costs Appraisal Costs Failure costs -Internal -External |
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Lundvall-Juran Quality Cost Model
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using the law of diminishing returns, quality costs can be modeled to show the tradeoffs between these costs
As prevention and appraisal expenditures increase, conformance to quality should also increase As conformance improves, failure costs will lessen as well Means that there SHOULD and economic quality level that minimizes quality related costs--contradicts Deming's continuous improvement mantra |
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Differentiation through Quality
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increasingly difficult
achieved by competitor if consumer PERCEIVES the product or service to be unique in an important way |
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Focus through Quality
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Limited customer group or market segment--specialize
one company reduced their customers by 40% and DOUBLED profit! |
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Order winners
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Corporate Objectives
Marketing Strategy How do products win order in market place Mfg. Strategy -Process choice -Infrastructure |
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Quality as core competency
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consists of communication, involvement, and deep commitment to working across organizational boundaries
don't diminish with use competencies are enhanced as time goes on--engine for new business development |
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Quality Strategy Process
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