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according to deming, is the quality control department responsible for quality?

no, the job of the QC department is to provide insights...

can employees control common causes of variation?

no, they can only control what is external to the system; they should not be held accountable for common causes of variation

does deming support management by objective

no; he thinks objectives like those numerical quotas should be removed

are special causes of variation inherent to the system

no; special causes of variation are external to the system

2 most important drivers of service quality

*people* (cust contact w employee & caring for employees) *technology* (access to technology and company info to do the job)

what are some critical differences between service and manufacturing

+customer needs and performance standards are more difficult to identify and measure +services require more customization +output is intangible +services are produced and consumed simultaneously +customers are often involved in actual process +services are more labor-intensive than manufacturing +services handle large numbers of transactions

what happened with deloittes performance management system before the change

they had yearly objectives, manager project ratings, single year-end rating at consensus meetings

how much money was lost for J&J regarding the recall

they have already committed $280 million to the issue but the total could amount to billions after paying for new hips

dissatisfiers

"must haves" - expected requirements that cause dissatisfaction if not present

exciters/delighters

"never thought of" unexpected features like free cookies at hotel desk

satisfiers

"wants" expressed as requirements

how does TQM disagree with economic model of the firm

*different goals: profit maximization vs customer satisfaction *each employee is self-interested in the short term in EMF vs TQM employees are working the long term interest of all

how did SPC extend to become TQM

-more decision-making and control by managers -more horizontal integration and teamwork vertically -focuses on entire company (all customers) -has objectives and philsophies

if the customer is satisfied with the "whole" experience with the product, then you have a quality product

-quote by executive director of global quality strategy at general motors

what are the top 3 statements from deloittes high performing teams

1. "my coworkers are committed to doing quality work" 2. "the mission of our company inspires me" 3. "I have the chance to use my strengths every day"

what are the 4 elements of the system of profound knowledge

1. appreciation for a system 2. understanding variation 3. theory of knowledge 4. psychology

how did nummi create the new third culture

1. force great enough to unfreeze and organization (plus TPS and nummis dedication to employees) 2. joint venture deciding who was responsible for day to day management 3. going slow, learning as they went, ambiguity

recent study by corporate executive board uses these three words to describe the current state of performance evaluation

1. inaccurate (2/3 of employees receiving highest scores are not actually highest performers) 2. ineffective (don't really improve employee performance by more then 3-5%) 3. inadequate (23% of HR surveyed by the firm say theyre satisfied with the firms performance evals)

what are the 4 distinctive features of total quality management

1. intellectual origins (the theoretical basis is stats) and spc is at the core 2. sources of innovation (TQM - industry and gov not business schools, while modern management is business schools) 3. national origins (TQM is truly global while others are not) 4. dissemination process (TQM is populist and led by smaller companies... ceo isnt main driver)

customer-focused organizations focus on 4 key processes:

1. making sincere commitments to customers 2. ensuring quality customer contact 3. selecting and developing customer contact employees 4. managing complaints and service recovery

4 principles of Nummis new culture

1. management and labor recognized *interdependent futures* 2. employees felt safe and secure 3. production system formed interdependent relationships to create a *healthy work environment* 4. production system managed to transform the stress and conflict of everyday life into trust and mutual respect

3 major components of Deloitte's new system of management reviews

1. new compensation structure 2. snapshot per project 3. weekly checkins ("radically frequent")

deloitte's 3 objectives of their new performance management system

1. recognize performance 2. able to see performance (avoid rater effect) 3. fuel performance

how can Deming's 14 points be summarized and what is this basis called

4 elements called System of Profound Knowledge

what is 100*2 - 150 =

50. congrats it's the 50th term already and has there been any content to learn yet idk

how many formal perspectives are there about quality

6

what % of business comes from existing customers

65

businesses with ______ % customer retention rate are twice as profitable as those at ________%

98, 94

plan-do-study-act (PDSA)

A framework for problem solving and improvement activities (this supports Deming's 5th point of continuous improvement)

how do you manage customer relationships

CRMs help a lot (salesforce)

which company was the first known to be super good at mass production

Ford with the model T

who was the key client cited in the J&J article about the recalls of the hips

Lance Corporal Cody Perkins from the military

how to measure customer satisfaction and engagement

Product attributes Service attributes Image attributes Overall satisfaction measures Competitive comparisons

what must every system have

a purpose

affinity diagram

This technique allows large numbers of ideas to be sorted into groups for review and analysis; organizing large volumes of information efficiently and identifying natural patterns or groups of information (example was communication, effective services, and loan products)

can you prevent special causes of variation

YES; common cant be prevented since naturally no process is perfect

SPC

a process used to monitor standards, make measurements, and take corrective action as a product or service is being produced; "a tool for systematically analyzing variations and defects"... this eventually transformed/evolved into tqm

about how many years behind were service organizations in implementing quality

about 10 years

perceived quality is a comparison of ___ to _____

actual quality to expected quality

characteristics of effective commitments to customers

addresses the principal concerns of customers, free of conditions that might weaken customers' trust and confidence, communicated clearly and simply to customers

quality assurance

any *planned and systematic* activity directed toward providing consumers with products of appropriate quality, along with the confidence that products meet consumers' requirements (defined by early pioneers of quality from Western Electric's inspection department that were transferred to the bell telephone laboratories)

internal customers

anyone who receives goods or services from someone else within an organization (assembly supplies another department)

what is the national origins of TQM

began in the US, but was developed in japan and then diffused from there (*truly global*)

when in american history did interest in quality grow at exponential rates?

between 1980s and 2000

external customers

business-to-business

invisible hand

buying necessary parts and services from independent firms

why is customer segmentation good

can't satisfy all the same customers with same products/services, segmenting into natural groups makes it easier to respond to their needs, allows prioritization, helps company align internal processes according to the most important customer expectations or their impact on shareholder value

why is inspecting quality at the end of the line a bad thing

causes a lot of products to be defected (wasteful), might not know exactly what went wrong/where, wasted resources from value-added activities on more products than necessary

does deming think a leader should be a judge or a coach

coach, letting people contribute their full potential

define process

collection of interacting components that transform inputs into outputs toward a common aim called a mission statement

the example we discussed in class about the pilot driving to the wrong runway was a common or special cause of variation

common because it was inherent to the system

points of divergence between american and japanese cultures at nummi

communitarian belief vs individualism, finding common ground, cultural exchanges/communication/joking together

what is a problem with mass production that lean toyota supply chain doesnt deal with

competition among suppliers rather than working together... and the suppliers have little opportunity to suggest improvements in the production design since its so separate (high inventory costs)

what was the key to mass production at ford

complete and consistent interchangeability of parts and the simplicity of attaching them to each other... making production more efficient by having the assembler perform only a single task with a continuous flow of an assembly line

manufacturing perspective

conformance to specifications (within the error or size tolerances); this is a good way to *measure* quality since it's quantifiable

types of customers

consumers, external customers, internal customers

kaizen

continuous improvement (huge in Toyota)

what is at the core of deming's philosophy

continuous improvement in product and service quality; reducing uncertainty and variability in design manufacaturing and service processes driven by leadership

why is pdsa circle on an uphill slope

continuous improvement is forever an uphill progression

does cooperation or competition work better according to deming in an organization

cooperation -- employees getting along with each other, working together, and getting all on the same page is a huge accomplishment

TQM focuses on _______

creating long term value for employees, customers, and shareholders

touchpoints

critical moments when customers interact with the organization and its offerings

what is six sigma

customer-focused, results-oriented approach to business improvement

ways to segment customers

demographics, geography, volumes, vital few/useful many, profit potential (NPV)

what are the two ways that quality drives profitability

design quality -differentiated product -improved firm reputation -improved perceived product value -commanding higher price -achieve greater market share, but at the cost of reduced short-term profitability conformance quality -lower costs through savings in rework, scrap, repair, or warranty expenses

whats the minimum for a company to have according to kano's model of customer requirements

dissatisfiers AND satisfiers

kano model of customer requirements

dissatisfiers, satisfiers, exciters

suboptimization

divisions doing what is best for themselves, not the system as a whole-- this is not good according to deming's theory of management

rather than what the manager "thinks" about their people, managers are asked what they would "________" with them

do

when was scientific management and quality control first implemented

early 1900s... assembly line mass production began

points of convergence between japanese and american cultures

employment security, consensual decision making, discipline

quality control

evaluation of a process to determine if corrective action is needed to ensure that a requisite level of quality is achieved, often through some type of *inspection or measurement* activity (defined/invented by H.J. Heinz)

Transcendent (Judgmental) Perspective

excellence ex: rolex watches sight of luxury and can't be defined precisely, but "you know it when you see it"

customer-focus practices graph showing excitement, performance and basic are in which order

excitement curve on top, performance straight like at x=y, basic is below the x axis and beneath performance

t or f: quality is inversely related to quantity

false

t or f: "those who think" vs "those who do" is a common differentiator when TQM is integrated

false: TQM doesn't think about it like that, but rather the supervisor becomes more of a helper/facilitator who shares the overall goals of the team

t or f: TQM implementation is a straight-forward process

false: TQM is a ~revolutionary~ philosophy that requires radical and pervasive change within a firm

true or false: decisions at Nummi were made in a very democratic and polite manner by taking a vote

false: decisions were made via consensual conversations.. open discussions with compromises

t or f: it costs double to find a new customer than to keep an existing customer happy

false: it costs FIVE TIMEs as much to find a new customer

t or f: modern management theories regarding the economic model of the firm agree with total quality management

false; a lot of modern management theories developed by business schools like the economic model of the firm disagree with the techniques of total quality management, so companies have to make huge changes to integrate TQM

t or f: there is one solid definition of quality that has been agreed upon

false; quality is a subjective term for which each person has his or her own definition

T or F: Toyota has always found success in the US

false; they faced obstacles at the beginning because the US was demanding a wide range of vehicles

true or false: deming believes that optimization of every area in an organization leads to optimization of the entire organization

false; you have to look at the system as a whole, and might have to suboptimize certain parts to get the best overall outcome/quality

user perspective

fitness for intended use, or how well the product performs its intended function; ex - a cadillac and honda civic both service different needs and groups of customers.

what is Deming's general philosophy

focusing on continuous improvements in product and service quality by reducing uncertainty and variability in design, manufacturing, and service processes, driven by leadership of top management

little q

focusing solely on manufacturing quality

8 key forces that will influence the future of quality

global responsibility, consumer awareness, globalization, increasing rate of change, workforce of the future, aging population, twenty-first century quality, innovation

what are some reasons that TQM may fail

goal disagreement, lack of upper management focus, employee skepticism about organizational commitment, clashes with other programs

what is the source of innovation for TQM

government or industry (not leading business schools)

deming says there shouldnt be quotas or numerical goals.... but what about budgets and goals and targets that he says there can be??

he says that you can have big goals and overall objectives that are *reasonable* with *resources* and *methods* to accomplish those

higher quality leads to ______ which leads to long term_______

higher productivity, competitive strength

what's a managers job at nummi

honor opposing forces, draw them together, reconcile them in decision-making process

how can you describe the third culture of Nummi

hybrid of the best of american and japanese culture

how to design satisfaction surveys

identify purpose, identify customer (internal vs external), determine who should conduct, select appropriate survey instrument, design questions and responses to achieve actionable responses

just wondering how this is already the 89th term

ikr riley chill

whats the order of deming's chain reaction

improve quality, reduce cost, increase productivity, capture market, stay in business, provide jobs and more jobs

what caused a quality crisis in the US and when was it

increase in global competition of higher quality foreign products in 1980; eventually the US began its own growth of product quality awareness in manufacturing industries

what are some implications of SPC

individual operator rather than quality control engineer is best played to identify variation and take remedial action... more operator involvement and also manufacturing is viewed as a single integrated system with production chain as a supplier-customer relationship

is intrinsic or extrinsic motivation more powerful according to Deming

intrinsic; pay is not a motivator

how did toyota overcome the initial skepticism from the union

invited them to apply for the new plant, included some of the union in the management team, recognized them as they built the new agreements, allowed for employment for life, consensual decision making, nummi's no-layoff policy, flat wage structure that depended on the full company success, less bureaucracy by having only 2 job titles

what does a performance snapshot allow that other evaluations do not

it allows deloitte to quickly capture performance at a single moment in time

why are stakeholders so upset with the recall for J&Js hips?

it could indicate there are greater quality control issues even though management was just calling the issues aberrations

why isn't SPC done on all products in large companies

it is too expensive and difficult

what is challenging about having quality in the service industry

it lags behind manufacturing in quality implementation, lacks the same aggressive foreign competition, and has high turnover rate in the jobs

why is quality important

it's uniquely positioned to accelerate organizational growth through better execution and alignment; provides voice of customer critical to developing innovative products and services; provides competitive edge

which emotion does deming think that all stakeholders should have including the workforce

joy. "joy in work" for all stakeholders is promoted by the system of profound knowledge

what should be substituted on the factory floor for the current status of quotas and work standards according to deming?

leadership! and guidance! and continuous improvement! yay

with deming's funnel experiment, which option worked best

leaving the funnel alone (rule 1)

what scales should be used to develop cust satisfaction survey

likert scales

big q

managing for quality in all organizational processes

customer perspective

meeting or exceeding customer expectations (including consumers, external customers and internal customers)

key dates of quality improvements

mid 1980s - 6 sigma by Motorola 1987 - iso 9000 quality standards 1988 - malcom bridge national quality award begins

what was the transformation in "the truth about customer experience"

moved from siloed functions and top-down innovation to cross-functional processes and empowered, bottom-up innovation -allowed better service experience for customers

are results achieved by setting objectives?

no

are common causes of variation easy to identify

no - they are difficult and can only be eliminated by redesigning the system since its "baked" in lol

is top down innovation a good thing?

no especially if its siloed

are there any processes that are perfect

no, all processes exhibit variation

solutions for leading tv provider's broken service delivery line

not to replace touchpoint management; Four Step Approach: 1. identify key journeys (top down and bottom up) 2. understand current performance 3. redesigning the experience and engaging the front line (cross-functional team to brainstorm new solutions) 4. sustaining scale by changing mind sets

communication is possible when people share __________

operational definitions (statistical clarifications of the terms people use to communicate with each other -- operationally defined when they agree)

does TQM start with top management or operators

operators

how do customer-focused organizations look at complaints

opportunities for improvement: Encouraging customers to complain Make it easy for customers to complain Effectively resolve complaints quickly Have well-defined processes for dealing with complaints Need to listen carefully to determine the customer's feelings and then respond sympathetically, ensuring that the complaint is understood Empower their front-line people to do whatever is necessary to satisfy a customer

how many recalls for J&J since 2010

over 50 voluntary recalls

what action did the FDA take to ensure quality for J&J

oversight at 3 of the J&J plants

what is the new Deloitte evaluation report called now that it's not a rating

performance snapshot

quality dimensions

performance, features, conformance, reliability, durability, serviceability, aesthetics, responsiveness, empathy, tangibles, assurance

why is organizational culture important

plays central role in company ability to adapt to constantly changing environment; ensures quality; reduces hierarchy battles, guides day to day behavior, "glue that holds organization together"

what is the dissemination process for TQM

populist, led by smaller companies, ceo is not primary driver within companies (people lead it)

the economic model of the firm focuses on ______

profit maximization

push or pull system at Nummi?

pull.. relied on just-in-time to be successful, tight link with customers, removing excess inventory, standardizing work

what is the difference between quality control and quality assurance

quality control is more about controlling quality through inspection or measurements, while quality assurance is the planned activities that are in the system

how do customers primarily judge/evaluate the quality of a service

quality of the human contact

Product Perspective

quantities of product attributes; ex: #of cell phone features or thread count

rater bias

rating in performance management evaluations according to the likes and dislikes of the rater... they hire people they expect to like and could rate the more personable people higher than others -if your manager is a tough rater, you might look worse than other people with more generous raters

value perspective

relationship of good product benefits to price... product is of high quality if it has similar benefits for a comparable price; (ex: better bundles)

how can the success of nummi be described

same outputs as other places with much higher quality and half the workforce... "mecca" of the auto industry in north america

what happened in the early 20th century with quality management

scientific management appeared which separated planning from execution (workers) from quality control (inspectors)... there were separate quality departments from manufacturing departments with indifferences to end quality; then Henry Ford, and then statistical methods/quality assurance

what are some characteristics of the workforce at Nummi

seasoned, experienced workforce who knew each other very well (trained by the japanese), tolerant culture that accepts and values different opinions, diversity (more the 50% minorities)

reasons for broken service-delivery chain

siloed nature of service delivery, insular cultures among functional groups, lost sight of what customers want

if a system *has* _____ causes of variation, it is considered *unstable*

special

a system is considered stable if there are no ____________ causes of variation

special (common will always exist since systems are never perfect)

data serves as the ________ for compensation rather than the _________ for compensation

starting point, ending point

what is SPC

statistic process control

what is the theoretical basis for Total Quality Management

statistics

according to the deloitte article, the best teams are _________ oriented

strengths (meaning that members feel theyre going their best work each day)

what was one of the huge barriers in velcro producing quality goods

supervisors were telling the operators to get the material out as fast as possible despite what operators noticed about the material quality

whats a feedback loop

taking actual outputs and feeding another step in the process.... we can determine whether the desired outputs were created and then try to close the gap between targeted and actual performance

types of requirements of engagements with customers

technical requirements (like answering phone every time and quickly) and behavioral requirements (like using customer's name when possible)

why did the quality program at Kodak fall apart

the TQM failed because it conflicted with the western management practices

which perspective of quality provides the basis for coordinating the entire value chain?

the customer perspective: its really about making sure the customer is getting what they want

what happened with Johnson and Johnson's dePuy ASR implants

the failure rate in the UK was as high as 49% after 6 years; patients were in pain and immobilized by joint dislocations, infections, and bone fractures -- voluntary recall by DePuy

assurance

the knowledge and courtesy of employees and their ability to convey trust

what happened with quality post ww2

the top priority of manuf was production and quantity; little interest in quality while relying on mass inspection; japanese products started gaining popularity

management tends to believe that the problems they face are with the workforce. what is the reality?

the workforce is handicapped by the system and the system belongs to management

what are deloitte's check ins like?

they are radically frequent and are about the daily responsibilities and tasks about *CURRENT, NEAR TERM* work to allow clarity and helps team member to do their best work the way the manager is envisioning

what did velcro do about their quality issues?

they installed an SPC system that pinpointed where in the production process improvement was needed; also manufacturing instated material review board, consisting of a rotating group of salaried and hourly people -- discussed problems, causes, and disposition

why did deloitte want a change from their old performance management system to a new one

they tallied it up, and found out they were spending 2 million hours yearly on their performance management and that most of those were conversations behind closed doors

what was happening with velcro's quality

they were inspecting quality into the products rather than manufacturing it

what is the purpose of inspection according to deming

to gather information (NOT to assure quality)

how do customers typically view quality

transcendent or product perspective

what are the formal perspectives on quality

transcendent; product; user; value; manufacturing; customer

what is the key to lean production at toyota

transfers the max # tasks and responsibilities to the workers actually adding value to the car on the line system detects defects and quickly traces every problem to once discovered to its ultimate cause

t or f: Exciters/delighters become satisfiers over time

true

t/f: cumulative experiences across multiple touchpoints are better than taking data from one perfect touchpoint

true... soon youll have too many touchpoints

t or f: nummi sent american workers to japan to be trained in TPS

true: 600 were sent

true or false: toyota's lean supply chain involves organizing suppliers into function tiers

true: the first tier is part of the product-development team, and the second tier is under the first and acts as the manufacturing specialist supplier

t or f: there is always common causes of variation

true: there is never a perfect process

consumers

ultimate buyers of goods and services

total quality management (TQM)

unyielding and continually improving effort by everyone in an organization to understand, meet, and exceed the expectations of customers

what are typical approaches to keeping customers

upgrade offers, discounted rate plans, save desks

which perspective of quality is usually meaningful to people who work in marketing?

user - they care about meeting the customer needs and wants and expectations

visible hand

vertical integration: obtaining needed materials, services and so forth from *internal* operating divisions... this could cause some struggles related to not focusing on key competencies

when did quality technology first start to accelerate

world war 2 when they needed less failure of war products... began to wane post war

loyal customers are likely to maintain loyalty when problems are resolved successfully or not?

yes they will be loyal again if resolved well

is quality in services a big deal?

yes, because more than 80% of the nonfarm employees work in service and more than 50% of jobs in manufacturing are service-related

why is understanding processes important

you can't improve quality without understanding the full end to end process


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