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Introduction
to Business MGT 211
VU
LESSON
39
TOTAL
QUALITY MANAGEMENT
(continued)
Benchmarking--process
by which a company implements
the best practices from
its own
past
performance and those of
other companies to improve
its own products.
Internal
benchmarking uses the
firm's own performance to
evaluate progress and set
goals;
external
benchmarking begins with a
critical review of competitors or
even companies in
other
businesses
to determine which have
"best practices."
Getting
Closer to the
Customer
i.
Customers
are the driving force
for all business
activity.
ii.
The
most successful businesses
keep close to their
customers and
know
what they want in the
products they
consume.
Trends
in Productivity and Quality
Management
a.
ISO 9000:2000 and ISO
14000
i.
ISO
9000:2000--a certification
program attesting to the
fact that a
factory,
a laboratory, or an office has
met the rigorous
quality
management
requirements set by the
International Organization
for
Standardization,
to ensure that a manufacturer's
product is exactly
the
same
today, in terms of level of
quality, as it was yesterday
and will be
tomorrow.
More than 140 countries
have adopted ISO 9000 as
a
national
standard.
ii.
ISO
14000--Certification
program attesting to the
fact that a factory,
laboratory,
or office has improved
environmental performance
Process
Re-engineering
Business
Process Re-engineering -- quality
improvement process that
focuses on
improving
both the productivity and
quality of business
processes.
Re-engineering
-- quality
improvement process that
entails rethinking an
organization's
approach
to productivity and
quality.
i.
The
Re-engineering Process
1.
Identify the business
activity that will be
changed
2.
Evaluate information and
human resources to see if
they can
meet
the requirements for
change
3.
Diagnose the current process
to identify its strengths
and
weaknesses
4.
Create the new process
design
5.
Implement the new
design
Adding
Value through Supply Chains
i.
The
Supply Chain Strategy--Flow
of information, materials,
and
services
that starts with
raw-materials suppliers and
continues through
other
stages in the operations
process until the product
reaches the end
customer
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Introduction
to Business MGT 211
VU
ii.
Supply
Chain Management--Principle of
looking at the supply
chain
as
a whole in order to improve
the overall flow through
the system
iii.
Reengineering
Supply Chains for Better
Results--By lowering
costs,
speeding
ser-vice, or coordinating flows of
information and
materials,
process
improvements and reengineering
often improve supply
chains.
Investing
in Innovation and Technology -- Many
U.S. firms that have
continued to invest in
innovative
technology have enjoyed
rising productivity and rising
incomes.
Adopting
a Long-Run Perspective -- Many
quality-oriented firms are
committed to long-
term
efforts at continuous improvement:
the ongoing commitment to
improving products
and
processes.
Emphasizing
Quality of Work
Life
i.
Employee
Empowerment--concept
that all employees are
valuable
contributors
to a firm's business and
should be entrusted with
decisions
regarding
their work.
ii.
Employee
Training--For employee
involvement to be effective,
firms
are
investing in employee training
programs that will enhance
employee
performance.
Improving
the Service Sector
-- in trying
to offer more satisfactory services,
many
companies
have discovered
five criteria that customers
use to judge service
quality:
i.
reliability
ii.
respnsiveness
iii.
assurance
iv.
empathy
v.
tangibles
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