Chp. 4 Strategic Quality Planning

Front 1

Quality IS by nature strategic.

Back 1

true

Strategic Planning has 2 important dimensions:
-Content (what does strategy contain)
-Process (how are we going to develop it)

Front 2

Strategy Content

Back 2

Key Variables to consider:

Time
Leadership
Quality Costs
Generic Strategies
Order Winners
Quality as core competency

Front 3

Time

Back 3

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

Front 4

Leadership

Back 4

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

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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

Front 5

Quality & Ethics

Back 5

Good quality management is good ethics

when you focus on end customers you end up also focusing on employees

Front 6

Quality as a Strategy--Cost

Back 6

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

Front 7

Lundvall-Juran Quality Cost Model

Back 7

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

Front 8

Differentiation through Quality

Back 8

increasingly difficult

achieved by competitor if consumer PERCEIVES the product or service to be unique in an important way

Front 9

Focus through Quality

Back 9

Limited customer group or market segment--specialize

one company reduced their customers by 40% and DOUBLED profit!

Front 10

Order winners

Back 10

Corporate Objectives

Marketing Strategy

How do products win order in market place

Mfg. Strategy
-Process choice
-Infrastructure

Front 11

Quality as core competency

Back 11

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

Front 12

Quality Strategy Process

Back 12

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