oEx. Toyota cars
•Organizing for Quality
o Every person must be responsible for their own work.
oTeams of workers inspect the process of development.
•Leading for Quality
oManagers must inspire and motivate employees throughout the
company to achieve quality goals.
oNeed to get employees to see how quality affects their jobs and their
oQuality Ownership: the idea that quality belongs to each person who
creates or destroys it while performing a job.
oManagers must establish specific quality standards and
Tools for Total Quality Management
•Competitive Product Analysis: process by which a company analyzes a
competitor's products to identify desirable improvements.
•Value-Added Analysis: the evaluation of all work activities, material flows,
and paperwork to determine the value that they add for customers.
oReveals wasteful or unnecessary activities that can be eliminated with
jeopardizing customer service.
•Statistical Process Control (SPC): statistical analytical techniques that
allow managers to analyze variations in production data and to detect when
adjustments are needed to create products with high-quality reliability.
oProcess Variation: Any change in employees, materials, work
methods, or equipment that affects output quality.
•Excess of process variation can result in poor quality and excessive
oControl Chart: a statistical process control method in which results of
test sampling of a product are plotted on a diagram that reveals when the
process is beginning to depart form normal operating conditions.
•Quality/Cost studies: a method of improving product quality by assessing a
firm's current quality-related costs and identifying areas with the greatest cost-
oInternal Failures: expenses incurred during production and before
bad product leaves the plant.
oExternal Failures: expenses incurred when defective products are
allowed to leave the factory and get into consumers' hands.