Chapter 1

Modern importance quality

Means if we have a quality of our product our consumer are still keeping on buying
because we have quality to our product and we earn profit because the customer are satisfied.
Key idea
Building and maintaining quality into an organizations goods and services are important
because if we dont have quality our customer dissatisfied and it can more expensive.
Quality assurance
All the planned and systematic activities implemented within the quality system, and
demonstrated as needed, to provide adequate confidence that an entity will fulfill the
requirements for quality. It can also to fulfill the quality of requirements of an entity, i.e. product
or services, with adequate confidence by the supplier.
History of quality assurance

Craftsmanship Expert and apprentice

European industrial revolution Subdivided trades into multiple steps

The U.S. departure to Taylors system Significant increase in productivity

Key idea
Having a quality initiatives t can lead the business to be success, and one must conclude
that the business having failures or stock price dives the result is poor quality.
Contemporary Influences on Quality

Patterning

Learning systems

Adaptability and speed of change

Environmental sustainability

Knowledges of focus
1

Customization and differentiation

Shifting demographics

Defining quality
It is a very concise definition indeed, for a term that has so many dimensions. Quality of
a product or service in simple terms is its suitable for use by the customer. In our product we
need a quality to satisfied our customer because having quality is very important to all of us to
long last our product.
Quality Perspectives
The information flow is the customer to marketing, marketing to design, and design to
manufacturing while in the product flow manufacturing to distribution, and distribution to
customer. All of this are called Quality Perspective.
Customer-Driven Quality

We need to meeting or exceeding the customer expectation.

Total Quality
A total quality management (TQM) describes a management approach to longterm success
through customer satisfaction. In a TQM effort,

All members of an organization participate in improving processes,

Products, services, and

The culture in which they work.

Principles of total quality

Produce quality work the first time,

Focus on the customer,

Have a strategic approach to improvement,

Improve continuously and encourage mutual respect and

Teamwork - are practiced by all ...

2

Customer and Stakeholder Focus

Develop Marketing-oriented Culture

Conduct Market Research

Improve the Customer Experience

Focus on Loyalty

Key Idea
To meet and exceed the satisfaction of the customer and also to fully understand the
products and services so that the customer can lead to the satisfaction and loyalty.

Participation and Teamwork

Sharing information

Developing the leadership capability of individuals, creating a sense of mission and

fostering trust

Effective training for E.I include decision making skills, problem solving skills, quality
and statistics tools, basic business skills, team building and job skills

Process Focus and Continuous Improvement

A process is a sequence of activities that is intended to achieve some result

Enhancing value through new products and services

Reducing errors, defects, waste and costs

Increasing productivity and effectiveness

Improving responsiveness and cycle time performance

Infrastructure, Practices, and Tools

We have three principles of total quality need to be supported by an integrated organizational
infrastructure, a set of management practices, and a set of tools and techniques.

Infrastructure
Refers to the basic management systems necessary to function effectively and carry out
the principles of TQ.
Practices
We have an element of the infrastructure to achieve our high performance.

Chapter 2
Total Quality in Organizations
Growth of Modern Quality Management
We have a service quality, Performance excellence, improved product design, manufacturing
quality all of this are part of the growth of modern quality management. This is important
because if we dont have this our customer they cant satisfied and if we can apply this our
business is progress. Our customer they can loyal to your company.
Key idea
The customer expectations have raised, a focus on quality has permeated. So we need to
raise the expectations, to pass the quality of the customer.
Systems thinking

In a system we need to set of functions or activities within an organization that work

together for the aim of the organization.

Subsystems of an organization are linked together as internal customers and suppliers.

We acknowledges the importance of the interactions of subsystems, not the actions of

them individually.

Key idea
We need to depend the system perspective because this is one of the most important
elements of total quality.
Manufacturing Systems

Industrial engineering and process design

Finished goods inspection and test

Packaging, shipping, and warehousing

Installation and service

Key idea
Traditional quality assurance systems in manufacturing focus primarily on technical
issues such as equipment reliability, inspection, defect measurement, and process control.
Quality in Marketing
Yes we need to know the needs and wants of the consumers so that we can provide it and
the responsible of this is the Marketing and the sales personnel.
Quality in Product Design
It refers to how well the Product design and service has been design to meet the current
and future requirements of the customers and add value to all the stakeholders. It can also
involve all activities that will result in a successful design.
Quality in Purchasing
If you want your customers satisfied we need the an agent that should not simply be
responsible for low-cost procurement, but should maintain a clear focus on the quality of
purchased goods and materials.
Quality in Production Planning & Scheduling
Having poor quality it can results from time pressures caused by insufficient planning
and scheduling.
5

Quality in Manufacturing and Assembly

Both technology and people are essential to high-quality manufacturing.
Quality in Process Design
Manufacturing processes must be capable of producing output that meets specifications
consistently.
Quality in Manufacturing and Assembly
Both technology and people being high quality in manufacturing is really important.
Quality in Production Planning & Scheduling
If we dont have enough time for planning & scheduling it can cause the poor quality of
your product. So if the product you can spend more time you can make a high quality.
Quality in Finished Goods Inspection and Testing
Actually this is important to inspect and to judge the quality of manufacturing, because to
discover and help to resolve production problems that may arise, and to ensure that no defective
items reach the customer.
Quality in Installation and Service
The most important factors in establishing customer perception is the service after the
sale. Because it can cause that we get the loyalty of our customer.
Quality in Business Support Functions for Manufacturing
Finance and accounting, Quality assurance, production, human resource and

Legal

services this is really important in the business so that we can know survive in the current
climate, manufacturing companies must particularly focus on their core competencies such as
research and development, manufacturing, and sales and marketing.

Key Idea
The manager is the responsible to study and improve the quality. Also he / she is a quality
manager.
Quality in Services
Selling a product is not the end of the business. It is the quality of associated services
rendered that adds value to the product. Quality service involves all activities that will enable the
customer to procure and use the product without any hassles.
Key Idea
The American Management Association the estimates that ever company loss as 35% of
its customer each year, and about 2/3 are lost because of the poor customer service.
Critical Differences Between Service and Manufacturing
Manufacturing produce physical, tangible goods that can be stored in inventory before they are
needed. While the service produce intangible products that cannot be produced ahead of time.
Components of Service System Quality

Employees Computing, communication, data processing, and other means of converting

data
Improved

into
quality,

useful

productivity,

information.

competitive

advantage,

convenience.

Information technology Service is primarily evaluated by the quality of human contact.

Trained
Intangible

employees
quality

depends

deliver

on

employees

performance

quality.
and

behavior.

Training is very important!!!

Key idea
When service employee job satisfaction is high, the customer satisfaction also is high.
Because the customer she / he satisfied your services. But if the employee job satisfaction is low

doing expect that the customer is high of course the customer will be low because they cant
satisfied your services.
Quality in Higher Education
Having a higher education is important in the business because you know already the
knowledge and expertise on how the right quality processes and implementation practices.
Academic Quality Improvement Project (AQIP)
AQIP criteria focuses on institutional practices for helping students learn, accomplishing
other distinct objectives, understanding student and stakeholder needs, valuing people, leading
and communicating,

supporting institutional operations, measuring effectiveness, planning

continuous improvement, and building collaborative relationshipsall of which are key

elements of TQ.

Chapter 3
Philosophies and frameworks

Deming chain reaction

Improve quality- good products, and production

Cost decrease- price low, low price and low cost
Productivity improves- good service, high demand markets
Increase market share with better quality and lower price- good market goals, good
production quality in low price.
Stay in business- be in our market strategies, stay what business plan is.

Provide jobs and more jobs- good production provides a more service and more jobs to be
want.
Key idea
Deming philosophy aiming into a good quality, good products, and good service by
reducing the variability in design, manufacture and service. Deming is also is also focus in
getting to become a top management.
Demings System of Profound Knowledge.
To be able to understand the market strategies, goal, trust the system and using the
theory which helps the market go on top and most of all getting the study of continuous problem
and get its solution for better future goals
Key idea
To be able to aim a good system, system must benefit the stakeholders, emploess,
costumers, community and the environment.
Variation

Failures product, dissatisfaction costumers and unattended cost.

Methods to be verify and identify to help improve the variation

Theory of knowledge

Knowledge is null if theres no theory.

Theorys and experience can show a cause and effect to able use to predict the possible
happenings.

Psychology

Motivation

Develop

Extrinsically

Jurans Quality trilogy

Good quality pattern and planning

Good quality control and driven

Good quality leads into a good improvement

Key idea
Juran define a good quality. A quality that view the inside and outside. Juran is also
define the freedom of production gap to be able to avoid the dissatisfaction of a costumer.
Philip B. Crosby
Businessman and author who contributed to management theory and quality
management practices. Crosby initiated the Zero Defects program at the Martin Company.[5] As
the quality control manager of the Pershing missile program, Crosby was credited with a 25
percent reduction in the overall rejection rate and a 30 percent reduction in scrap costs.

A.V. Feigenbaum
Was an American quality control expert and businessman. He devised the concept
ofTotal Quality Control, later known as Total Quality Management (TQM).
Kaoru Ishikawa
Was a Japanese organizational theorist, Professor at the Faculty of Engineering at The
University, noted for his quality management innovations. He is considered a key figure in the
development of quality initiatives in Japan, particularly the quality circle.[1] He is best known
outside Japan for the Ishikawa or cause and effect diagram (also known as fishbone diagram)
often used in the analysis of industrial processes.
Genichi Taguchi
Was an engineer and statistician.[1] From the 1950s onwards, Taguchi developed a
methodology for applying statistics to improve the quality of manufactured goods. Taguchi
10

methods have been controversial among some conventional Western statisticians,[2][3] but others
have accepted many of the concepts introduced by him as valid extensions to the body of
knowledge.
Malcolm Baldrige
was an American businessman. He served as the United States Secretary of
Commerce from 1981 until his death in 1987.
Criteria for Performance Excellence

managing and leading all the components of your organization as a unified whole;

managing change; and

dealing with data analytics, data integrity, and cyber security.

The Baldrige Framework A Systems Perspective

A good leadership goes to a strategic planning and costumer markets up to last a
business result. This cycle show a organize environment, relationship and challenges.

Key Idea
The baldrige criteria means an integrated infrastructure and set of pattern and practice
to engaged to better performance managing system.
Baldrige Award Evaluation Process

costumer focus

leadership

involvement of people

process approach

system approach to management

continual improvement

factual approach to decision making

11

Deming Prize
a global quality award that recognizes both individuals for their contributions to the
field of Total Quality Management (TQM) and businesses that have successfully implemented
TQM. It is the oldest and most widely recognized quality award in the world.
Key Idea
ISO is a agency or a company that provides a standard safety of a market or company.
Objectives of ISO Standards

Improve production

Quality of production

Provides safety system requirements

Key Idea
is a series of standards, developed and published by the International Organization for
Standardization (ISO), that define, establish, and maintain an effective quality assurance system
for manufacturing and service industries.
Six Sigma
is a disciplined, data-driven approach and methodology for eliminating defects
(driving toward six standard deviations between the mean and the nearest specification limit) in
any process from manufacturing to transactional and from product to service.
Key Idea
Key sigma is a measurement of equates and defects. Its start and popular b general
electric in Motorola.

12

Chapter 4
Focusing on Customers
Key idea
This chapter deliver the importance of a having more costumers. This chapter also
defines to design production and service.
American Customer Satisfaction Index
The nation's only cross-industry measure of customer satisfaction, gives businesses
science-based insights across the complete arc of the customer experience.
ACSI Model of Customer Satisfaction
These satisfaction indices are embedded within a system of cause and effect
relationships or satisfaction model. Yet there has been little in the way of model development. Of
critical importance to the validity and reliability of such indices is that the models and methods
used to measure customer satisfaction and related constructs continue to learn, adapt and
improve over time.
Key Idea
the ACSI provides the costumers of its satisfaction, and expectation. With the
satisfaction of each costumer, this will be the big impact for the company and this will also
increase the profit.
Customer-Driven Quality Cycle
A chance to get away from the hustle and bustle of our day-to-day projects. A chance
to step back and think about what is important and perhaps think of new ways to improve our
quality. This day led to the Customer-Driven Quality framework.
Key Idea
Other organizations use the processes and production for its internal perspective. But
others focus on external perspective.
13

AT&T Customer-Supplier Model

The first process is identifying the suppliers and after is our step or process to be made
and the last is the costumers the will receive the god production you have made. These three step
is the standard when supplier to costumer model.
Key Idea
Connectivity of each individuals and its function is important specially in costumer
and suppliers linkage

Customer Segmentation

Demographics

Geography

Volumes

Profit potential

Key Idea
Benefits and satisfying their requirements b allowing of company to prioritize of
costumer groups. This instance is called segmentation.
Kano Model of Customer Needs
A theory of product development and customer satisfaction developed in the 1980s
by Professor Noriaki Kano, which classifies customer preferences into five categories.
Key Idea
The costumers satisfaction over time will also lead into dissatisfies costumers.
Customer Listening Posts

Comment cards and formal surveys

Focus groups
14

Direct customer contact

Field intelligence

Complaint analysis

Internet monitoring

Key Idea
More company use a methods, methods that be able to be unite. By using listening
post, the information and satisfaction of costumers will gathered and its a big help for the
measurement of performance of a company.
Tools for Classifying Customer Requirements

Affinity diagram

Tree diagram

Key Idea
By using the costumer information, the company will be more aggressive specially
when the information is for the good of companies ability. But companies also conclude that the
costumer is not from the others company or from the opponent. In this relation, the company will
develop and gain more production.
Customer Relationship Management
Continuing education and discover how to create an "information centered
organization" resulting in better programs, more inquiries, increased revenue and repeat
customers. From cutting-edge technologies to simple do-it-yourself tools, get practical tips for
making the most of your marketing dollars.
Importance of Complaint Management
Client feedback is essential to all companies; not only because you can gather valuable
customer insight, but because it allows you to identify product or service failures.

15

Key Idea
To be able to improve the production, the company must do their duty and effectively for
the good of its community background. Analyzing costumers complaint will be the best solution.
Measuring Customer Satisfaction

Survey customers.

Understand expectations.

Find out where you are failing.

Pinpoint specifics

Assess the competition.

Try to measure the emotional aspect.

Loyalty measurement.

Key Idea
In measuring the customer satisfaction, by this process the companys future goal will be
more effective and helps develop the business be more success

Survey Design
The survey is a method for collecting information or data as reported by
individuals. Surveys are questionnaires (or a series of questions) that are administered to
research participants who answer the questions themselves.
Key Idea
These survey strategies also conclude because surveying costumers satisfaction helps
company be more high efficiency.

16

Chapter 5
Leadership and Strategic Planning
Leadership
Both a research area and a practical skill, regarding the ability of an individual or
organization to "lead" or guide other individuals, teams, or entire organizations.
Strategic Planning
is an organization's process of defining its strategy, or direction, and making decisions
on allocating its resources to pursue this strategy. It may also extend to control mechanisms for
guiding the implementation of the strategy.
The Baldrige Leadership Triad
A pattern, strategic pattern on leadership over costumer and lead into operation.
Executive Leadership
Is the ability of those who manage or direct employees in an organization to influence
and guide these individuals.
Key Idea
Leadership can also describe a mentor, motivator, learner, navigator and header.
Leadership Competencies
Leadership skills and behaviors that contribute to superior performance. By using
a competency-based approach to leadership, organizations can better identify and develop their
next generation of leaders.
Key Idea
The ultimate purpose of having a leader is to be able to have a direction, path and goal.
But it depends of how leadership have.

17

Leadership Theories

Great Man Theory.

Trait Theory.

Behavioral Theories. Role Theory. ...

Participative Leadership. Lewin's leadership styles. ...

Situational Leadership. Hersey and Blanchard's Situational Leadership. ...

Contingency Theories. ...

Transactional Leadership. ...

Transformational Leadership.

Key Idea
Leadership theories helps to answer questions that will come and raise in the future.

Leadership System
A complete leadership development system. It focuses on improving business results by
improving individual and collective leadership. The Leadership Circle has decades of
experience helping leaders improve their collective leadership effectivenesshelping them to
evolve their leadership into a competitive advantage. This experience is now integrated into our
state-of-the art proprietary tools and processes to create a development system without equal.
Available to both internal/external consultants and coaches, the Leadership training gives you
access to the complete Leadership System.
Key Idea
Leadership system include the abilities, capabilities of each employees to reach the
expectation for better performance.
Governance
Refers to "all processes of governing, whether undertaken by a government, market or
network, whether over a family, tribe, formal or informal organization or territory and whether
through laws, norms, power or language."
18

Leadership and Social Responsibilities

Deals with questions such as how socially responsible leaders should be trained and
supported. It focuses on how different business objectives such as entrepreneurial profit
orientation and the requirements of environmental protection can be reconciled and
implemented in the company.
Key Idea
Theres no good leader if theres no good follower. In our community, all of us can be a
leader and follower.
Strategic Planning
A strategy is a pattern or plan that integrates an organizations major goals, policies, and
action sequences into a cohesive whole.
Strategic Planning Process
In todays highly competitive business environment, budget-oriented planning or
forecast-based planning methods are insufficient for a large corporation to survive and prosper.
The fir must engage in strategic planning that clearly defines objectives and assesses both the
internal and external situation to formulate strategies.
Environmental Assessment
Is the term used for the assessment of the environmentalconsequences (positive and
negative) of a plan, policy, program, or project prior to the decision to move forward with the
proposed action.
Key Idea
Strategies is an action which set direction and goal to improve and organize the mission,
vision and objectives.

19

Strategy Deployment
A management process that alignsboth vertically and horizontally an organization's
functions and activities with its strategic objectives. A specific plantypically annualis
developed with precise goals, actions, timelines, responsibilities, and measures.
Key Idea
Strategic plans and objectives requires human resources such as designation to other
work, increase the human empower and promoting and developing the good plans,

Chapter 6
Human Resource Practices
Teams
A group of people or other animals linked in a common purpose. Human teams are
especially appropriate for conducting tasks that are high in complexity and have many
interdependent.
Types of Teams

Management teams

Natural work teams

Self-managed teams

Virtual teams

Quality circles

Problem solving teams

Project teams

Key Idea
Teams are important usually in terms of marketing and solving. Unit is the best asset
which bring the get together.
20

Functions of Teams

Trust

Conflict management

Commitment

Accountability

Focus

Key Idea
The function of teams indicate an attitude that makes team a successful team which all
the members of the team is accountable.
High Performance Work Systems
A name given to a set of management practices that attempt to create an environment
within an organization where the employee has greater involvement and responsibility.
Key Idea
High performance work system is effective when it comes to fast and accurate work
environment with motivation high performance level.
Hackman/Oldham Model
The job characteristics model, designed by Hackman and Oldham, is based on the idea
that the task itself is key to employee motivation. Specifically, a boring and monotonous job
stifles motivation to perform well, whereas a challenging job enhances motivation. Variety,
autonomy and decision authority are three ways of adding challenge to a job. Job enrichment and
job rotation are the two ways of adding variety and challenge.
Employee Involvement
Is a philosophy practiced by companies that gives their employees stake in decisions that
directly affect their jobs, while employee empowerment is a corporate structure that allows nonmanagerial employees to make autonomous decisions.

21

Key Idea
Employee involvement is the most important in company. Decision, opinions, suggestion
and responsibilities each of every one to be able to get the primary company goal.
Advantages of EI
Employee involvement exists in organizations that intentionally establish work cultures,
systems and processes to encourage and make use of employee input and feedback. Involving
employees more in decision making has become increasingly common in early 21st century
organizations as companies see benefits in keeping employees at all levels actively engaged in
core activities.
Empowerment
A management practice of sharing information, rewards, and power with employees so
that

they

can

take initiative and

make decisions to

solve problems and improve service and performance.

Successful empowerment
Your regard for people shines through in all of your actions and words. Your facial
expression, your body language, and your words express what you are thinking about the people
who report to you.
Your goal is to demonstrate your appreciation for each person's unique value. No matter
how an employee is performing on his or her current task, your value for the employee as a
human being should never falter and always be visible.

Key Idea
For successful empowerment, meeting and exceeding costumer will get a chance to hire a
people whose got a skills and good attitudes.

22

Training and Education

Aims to equip people with knowledge, know-how, skills and/or competences required in
particular occupations or more broadly on the labor market.
Key Idea
Costumers should also undergo training and education to prevent the bad impact of
products and also to continuous good demands.
Motivation
A theoretical construct used to explain behavior. It represents the reasons for people's
actions, desires, and needs. Motivation can also be defined as one's direction to behavior, or what
causes a person to want to repeat a behavior and vice versa. A motive is what prompts the person
to act in a certain way, or at least develop an inclination for specific behavior. According to
Maehr and Meyer, "Motivation is a word that is part of the popular culture as few other
psychological concepts are."
Key Idea
Motivating people, employee and others is market strategies to make people or employee
work hard and work with heart.
Performance Appraisal
A

systematic

and

periodic

process

that

assesses

an

individual employee's job performance and productivity in relation to certain pre-established

criteria and organizational objectives.
Key Idea
Performance appraisal is most effective when it based on performance and ability of each
person, its also help to be more resourceful employee or person.

23

Chapter 7
Process Management

Keys Idea
Process Management The ensemble of activities of planning and monitoring the
performance of a business process. The term usually refers to the management of
business processes and manufacturing processes. Business process management (BPM) and
business process reengineering are interrelated, but not identical.
Leading Practices
method or technique that has been generally accepted as superior to any alternatives
because it produces results that are superior to those achieved by other means or because it has
become a standard way of doing things, e.g., a standard way of complying with legal or ethical
requirements.
Product Development Process
In

business

and

engineering,

new product

development (NPD)

is

the

complete process of bringing a new product to market.

Key Idea
Designing of products will affects the manufacture specially labor, materials. It also
affect the warranty and efficiency of the products.
Service Process Design
a form of conceptual design which involves the activity of planning and organizing
people, infrastructure, communication and material components of a service in order to improve
its quality and the interaction between service provider and customers.

24

Key Service Dimensions

Service dimension shows a contact to its direction which if customization has been made,
the company will contact the costumer and there interaction, and if the customer satisfied the
labor will be in process and the demand will high.
Key Idea
Service process should be doing its right time and concentrate of minimizing the process
complex.
Project Life Cycle Management
The Project Management Life Cycle has four phases: Initiation, Planning, Execution
and Closure. Each project life cycle phase is described below, along with the tasks needed to
complete it. The Project Management Life Cycle has four phases: Initiation, Planning,
Execution and Closure. Each project life cycle phase is described below, along with the tasks
needed to complete it.
Process Control
An engineering discipline that deals with architectures, mechanisms and algorithms for
maintaining the output of a specific process within a desired range. For instance, the temperature
of a chemical reactor may be controlled to maintain a consistent product output.
Key Idea
Process control is important because in production, there is control when the demand is
decreasing, b process control it helps the process to minimize the production.
Kaizen
(Continuous Improvement) is a strategy where employees at all levels of a company work
together proactively to achieve regular, incremental improvements to the manufacturing process.
In a sense, it combines the collective talents within a company to create a powerful engine for
improvement.

25

Flexibility
Being flexible creates an environment where employers and employees can look
at work and personal needs in a balanced approach, which is mutually beneficial. Being
flexible is a win-win.
Cycle Time
The total time from the beginning to the end of your process, as defined by you and your
customer. Cycle time includes process time, during which a unit is acted upon to bring it closer
to an output, and delay time, during which a unit of work is spent waiting to take the next action.
Breakthrough Improvement
Considered to be a potential outcome of a continuous improvement process (CPI), after
a period of successful implementation of incremental process improvements.

Cecile V. Sereno
BSBA-3

26