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PSCM 431
Quality management
Prerequisite:
Purpose
This subject examines quality management as an integration of the customer oriented
aspects of product/service, process and people in procurement and supply chain service in
organizations.
Examine the concepts and development of completive product and service quality
in the in value/supply chain context.
Course description
Concepts of quality and study framework for quality management in transport industries;
dimensions and attributes of product and service quality in transport and logistics; Service
quality improvement in a value/supply chain context; product/service design in transport
and logistics service organization; supplier quality audit and partnership for control in
logistics outsourcing; variability control in quality awards; implementation of quality
management systems in the shipping and logistics industries; quality culture and service
quality behavior; leadership and human resource management for quality performance.
Service industry
Auto industry.
Lectures
Group presentations
Assignments
2
Guest speakers
Instructional materials/equipment
Case studies
10%
CATs
20%
Semester exam
70%
100%
Core textbooks
Bicheno, J. (2002). The Quality 75: Six Sigma Performance in service and manufacturing,
PICSIE Books.
Recommended readings
Cianfrani, C. A., Tsiakals, J. J. and West, J. E. (2009), ISO9001: 2008 Explained, ASQ
Quality Press.
Evans, J. R. and Lindsay, W. M. (2008), Managing for Quality and Performance
Excellence, Thomson south Western.
Foster, S. T. (2007), Managing Quality, Integrating the Supply Chain, Prentice Hall.
Goetsch, D. L. and Davis, S. B. (2010), Quality Management for Organizational
Excellence, Prentice Hall.
Wegner, S. M. and Busse, C. (Eds.) (2008), Managing Innovation: The New Competitive
Edge for Logistics Service
What is quality?
Its giving the best now in future and forever interms of product or service.
Types of quality
Expected quality: what customer expects and demand e.g. cars to be safe and reliable,
rooms to be clean and neat.
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One dimensional quality: Its the quality that the customer does not demand when
lacking e.g. restaurant poor service
Exciting quality service: It is the one that exceeds customers satisfaction e.g. quality
experienced when you drive a Mazdezbenz hence a BMW.
Benefits of quality
Improved reputation
Perfection
Customer satisfaction
Doing right
Totaling of characteristics
Compliance to standards
Doing it to perfection
1.) Customer focus they need to address the future current needs of their customers their
requirement internal and external customers.
2.) Leadership needs to establish the team spirit of unity of purpose and direction.
3.) Involving people at all levels in decision making for the achievement of organization
goals and objectives.
4.) Control and management of organizations resource and activities and managed as a
process.
5.) System approach where the departments works together as one system where processes
work together.
-
Improves productivity
Principle 1
Need for customer satisfaction by keeping new customers.
Good transit systems attracts new customers hence increased market share.
Principle 2
Manage and improve processes in terms of effectiveness and efficiency.
Continuous learning
Principle 3
Cultivate organizational learning
LESSON 2
SERVICE QUALITY IMPROVEMENT
Its a way of planning; organizing, coordinating quality management is the level of
excellence required in delivering of services to the customer and creation value.
It involves four components
Quality control
Quality assurance
Quality improvement
There should be people involvement through synergy both internally and externally.
There is need for supplier relationship with the organization with the product they offer
and the needs of what customer expect in a service product.
There should be a social system where the human resource works in conducive
environment with the employees through training development.
There is competitive advantage among those who over the same services/substitutes.
There is pricing in quality where the more the superior product/quality the higher the
price.
There is customer satisfaction since they get value for their money.
Improved supplier relationship since they become part of the organization.
Time consuming to get the best through connection of errors step by step systems.
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LESSON 3
Need of reliability
Speed factor
Transportation cost and quality of service should be looked into e.g. low cost and slow
transportation.
Air transport services are a major boost in human and natural resources in efficiency used
in modern society. It connects long distance travel and connects remote areas to the rest of
the world. Its dependable for perishable goods.
There is market flexibility since any writing can reach its market very quickly.
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The airline is a critical area in maintaining quality standards, quality assurance, quality
control planning and continuous improvement.
This is due to the role the air transport plays in customer satisfaction and their lives.
Road transport
Advantages
Disadvantages
Traffic jams.
Legal restructures.
Effects of weather.
Air transport
Disadvantages
There is airport congestion and handling customs delays plus more paperwork.
Railway transport
No effect on climate
No congestion traffic.
Road
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LESSON 4
What is service quality behavior?
This entails retention of customers to ascertain service.
portrays the level of satisfaction towards a particular service. The delivery of a quality of
service is the major survival of a company due to the increased competition among
various competitors in the market.
Increased in profit
Customer loyalty
Customer satisfaction
If a service is of high standard and conforms to the customer specification the behavior
of the customer will bring the following benefits
If a company produces poor quality service there will be negative altitude about the
company.
There is switching of customers to a better competitive company that offer the same
services but in a better service.
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LESSON 6
What is quality culture?
For a company to have culture it plays a great rule in its performance management.
Their main values which influences altitudes and behavior rules of the game in getting
along with others in the company
Corporate culture plays a big role in company success and quality is a combination of
the elements of successful companies.
There is need for an organization to have innovators and incase of any failure it should
be taken positively.
What are the best practices for total quality culture in an organization?
The top management is committed to the process and participate fully in the process.
Good quality information with dependable data also brings implementation successful.
The customer focuses where customers are valued as the king his/her needs are met.
Customer focus and satisfaction due to good products and services offered.
Focusing on the most profitable area and focus attention in by practicing proper quality.
17
LESSON 7
How is quality management implemented in the shipping and logistics industries?
Contact to customers
There is need for leaders to flows inequality commitment and quality improvement
In any organization quality is a necessity and quality leadership is the driving force for
quality to improve in an organization
He/she listens to his followers and remove blocks which can block the improvement of
an organization
A leader must be visible in the process committed and knowledge of what is required in
quality management. The leader employs on quality and is in the picture of how a
company is doing.
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Need for personal contact with suppliers, customers and the employees.
The leaders set targets by introducing different processes and improving different
processes and improving processes
The leaders emphasize on zero defects to drive improvement thus bringing customer
satisfaction and quality improvements.
Leaders act as coaches rather necessary where interaction between the lower levels is
encouraged.
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LESSON 8
Role of human resource management in quality management
There is need for a flat organization structure where employees have a say to the
process like the leaders.
Training and development is necessary to make employees the day to days trends on
quality as it s advancing in improvement due to quality awards.
There is need to reward and recognize the employee on what they have done in quality
management.
Organization culture involves values, beliefs norms and informal practices shared by
employees culture plays the role of competitive edge and organization performance.
Quality commitment
No communication
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LESSON 9
portrays the level of satisfaction towards a particular service. The delivery of a quality of
service is the major survival of a company due to the increased competition among
various competitors in the market.
Increased in profit
Customer loyalty
Customer satisfaction
If a service is of high standard and conforms to the customer specification the behavior
of the customer will bring the following benefits
If a company produces poor quality service there will be negative altitude about the
company.
There is switching of customers to a better competitive company that offer the same
services but in a better service.
For a company to have culture it plays a great rule in its performance management.
Their main values which influences altitudes and behavior rules of the game in getting
along with others in the company
Corporate culture plays a big role in company success and quality is a combination of
the elements of successful companies.
23
There is need for an organization to have innovators and incase of any failure it should
be taken positively.
What are the best practices for total quality culture in an organization?
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LESSON 10
Quality management implementations upheld in logistic adjustment industry becomes
successful due to the following factors:
The top management is committed to the process and participate fully in the process.
Good quality information with dependable data also brings implementation successful.
The customer focuses where customers are valued as the king his/her needs are met.
Customer focus and satisfaction due to good products and services offered.
Focusing on the most profitable area and focus attention in by practicing proper
quality..
Contact to customers
There is need for leaders to flows inequality commitment and quality improvement
25
LESSON 11
Requirement of quality leadership
In any organization quality is a necessity and quality leadership is the driving force for
quality to improve in an organization
He/she listens to his followers and remove blocks which can block the improvement of
an organization
A leader must be visible in the process committed and knowledge of what is required in
quality management. The leader employs on quality and is in the picture of how a
company is doing.
Need for personal contact with suppliers, customers and the employees.
The leaders set targets by introducing different processes and improving different
processes and improving processes
The leaders emphasize on zero defects to drive improvement thus bringing customer
satisfaction and quality improvements.
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Leaders act as coaches rather necessary where interaction between the lower levels is
encouraged.
Training and development is necessary to make employees the day to days trends on
quality as it s advancing in improvement due to quality awards.
There is need to reward and recognize the employee on what they have done in quality
management.
Organization culture involves values, beliefs norms and informal practices shared by
employees culture plays the role of competitive edge and organization performance.
Quality commitment
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No communication
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LESSON 12
2. Reasons of outsourcing logistics
There is efficiency in material flow in value chain and supply chain process
There saving of time since the outsourced company is efficient in meeting the quality
requirements to maintain the contract
There is good coordination of material flow from the inbound to the end user s who are
the customers
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