ualityResearchGroupacuityofBusinessAdministrationniversityofMacauelsonSantosAntonioiewHuatKongiffanyK.P.LamarlosNoronhant6nioTeixeira

MANAGEMENTTRAININGMANUALSVOLUMEN0.2BYTHEFACULTYOFBUSINESSADMINISTRATIONUNIVERSITYOFMACAUTOTALQUALITYMANAGEMENTQualityResearchGroupNelsonSantosAntonio,SiewHuatKong,TiffanyK.P.Lam,CarlosNoronha,andAntonioTeixeiraFacultyofBusinessAdministration,UniversityofMacauPUBLISHEDBYMACAUFOUNDATION

TitleAuthorSeriesSeriesEditorExecutiveEditorPublishedbyTotalQualityManagementQualityResearchGroup:NelsonSantosAntonio,SiewHuatKong,TiffanyK.P.Lam,CarlosNoronha,andAntonioTeixeiraManagementTrainingManualsNelsonSantosAntonioCarlosNoronhaMacauFoundation(Apartado3025,Macau)January,1999Note:Theauthors,editorsandpublisherwishtostatethatthispublicationisintendedtoprovidestudentswithclassroominstructionalmaterialsatthelowestpossiblepriceandthisisanot-for-profitproject,whichisinlinewiththefoundingprinciplesofthepublisher.Thecopyrightofthematerials(includingdiagrams,figures,andtables)belongstotheoriginalauthors/publishersascited.Theauthors,editors,andpublisherwishtoexpresstheirdeepestappreciationtotheoriginalauthors/publishersofthematerials.ThecopyrightofthispublicationunlessstatedotherwiseaboveisownedbytheMacauFoundation.Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted,inanyformorbyanymeans,electronic,mechanical,photocopying,recordingorotherwise,withoutthepriorwrittenpermissionofthepublisher.PrintedbyDistributedbyPriceISBN·TipografiaWelfareLda.CulturalPlazaMacauLtd.MOP$60.00972-658-101-X

PrefaceTheQualityResearchGroupwasestablishedin1994withanobjectiveofdisseminatingthethennovicemanagementconceptofTotalQualityManagement(TQM)inMacau.WiththepublicationofavolumeonTQMinquestionandanswerformat,thefireofqualitystartedintheUniversityofMacau.Formalsubjectsonqualitymanagementwereintroducedintothecurriculumofgraduateandundergraduatebusinessstudiesattheuniversity.Studentsarenowgiventheopportunitytotellthepublictheirlearnedknowledgeonqualitymanagementthroughtheannual"QualityWeek"whichincorporatesexhibitions,competitions,seminars,andprojectpresentations.Today,qualitymanagementhasbecomeamainstreamsubjectwithasmuchimportanceandreputationasothertraditionalbusinesssubjectslikeeconomicsoraccounting.Thefireofqualityhasgonebeyondthecampustoo.MembersoftheFacultyofBusinessAdministrationhaveuntiltodaybeenprovidinganumberofconsultancyservicestothelocalindustryonqualitymanagement.Togetherwiththeincreasedconsciousnessofthelocalauthorityonqualityneeds,thenumberofcompaniespursuingforqualitystandards,likeISO9000,hasatleastincreasedtenfoldcomparedtothatin1994.Asqualityshouldbeanon-goingendeavor,theQualityResearchGroupalsorecognizestheneedforcontinuousimprovementintheprovisionoffineteachingmaterialsforstudents.Thepresentvolumeisonlyoneofthemanyfruitsthatthefireofqualityhasborne.Ihopethatstudentsandinstructorswillfindthistrainingmanualuseful.Letusallimproveourselvescontinuouslyandspreadthefireofquality.ProfessorNelsonSantosAntonioDeanofFacultyofBusinessAdministrationUniversityofMacau

CONTENTSPrefaceChapterITheFundamentalsofTotalQuality1ManagementOurneeds6Ourneedsandsatisfactionofneeds7Howcanqualitybeassured?8Whatdoes"Quality"mean?9Definitionsofquality-competingperspectives?10Isthisaconventionaljobadvertisement?11TheTotalQualityManagementprocess12AmodelofQualityManagement(a)13AmodelofQualityManagement(b)14HorizontalscopeofTotalQualityControl15K.Ishikawaonqualitymanagement16Juran'sTrilogy17Deming'sFourteenPoints18Deming'sSevenDeadlyDiseases19ThefourmajorqualityerasaccordingtoGarvin20Thequalityjourneycontinues...21EconomiceffectsofTotalQualityManagement22Doesqualityreallypay?23Chapter2WhatistheConceptofCustomerValuein25Quality?Sixfactorsforacustomer-focusenvironment27Identifyingthecustomer28Doesyourcompanythinkaboutthefollowing29questionsallthetime?Customersatisfactionframework30Customerwants:faster,better,cheaper31Levelsofcustomers'expectations32Handlingcomplaintseffectivelyconvertsdissatisfied33customersintoloyalcustomers

Howwelldoyouunderstandyourcustomers?34Identifyingthecustomer:Addingvalueasaninternal35supplierDifferentwaysofcollectingcustomerdata:thepros36andconsGettingthecustomersinformationthatyouneed37Yourcustomersaregettingwhattheywant?385"rater"criteria39TheeightdimensionsofqualityaccordingtoGarvin40Dimensionsofservicequality41Conceptualmodelofservicequality44Chapter3ProcessManagement47Process!55Typicalprocessesinmanufacturingfirms56Theinternalvaluechain57Atypicalcross-functionalprocess58Identifyingkeyprocesses59SomepossiblePcriteriainevaluation60Thecustomer-supplierchain61Qualityprocessmanagement62Definingtheprobleminthecontextoftheprocess63Translate:customerrequirementstoprocess64performanceProcessimprovementchecklist65Xerox'squalityimprovementprocess66Stepsofprocessimprovement-degreesofemplcyee67involvementateachstepProcessimprovementbuildingblocks68Typicalnon=-value-addedstepsISomequestionsto69askabqutprocessimprovementThe7objectivesofprocessimprovement70Chapter4QualityControlCircle(QCC)WhatistheQCcircle?MeritsofsmallgroupactivitiesPDCA71757677

Demingwheel/TraditionalPDCA78SelectionofTheme80HowtointroduceQCCactivities?81Consultation:Decisionmakingtoolofgroup83Afewrulesfordisciplineingroupconsultation84whichcannotbenegotiatedAframeworkforempowermentQCcirclemembers86Doyoupractise5Sinyouworkplace?87QCCOperatingCycle88Chapter5QualityTools97Thebenchmarkingprocess/sequence104Processflowdiagram/Scatterplot105Checksheet/Controlchart106Controlchart107Causeandeffectdiagram108Paretoprinciple109Paretodiagramby.defectiveiterns110Histogram111Flowchart112TheQCproblem-solvingapproach113TheQC7-stepformulaandthesevenQCtools114TheQC7-stepproblem-solvingformula115UseofthesevenQCtoolsintheQC7-stepformula116Chapter6QualityManagementSystem119ISO9000124TitlesofISO9000to9004125ISO9004QualityManagement126ISO9000-1:1994AnnexD127Hierarchyofthequalitysystemdocumentation128Prerequisitesforcarryingoutsystemaudits129Qualityaudit130Preparationforaudit131Basicrulesforaudits132RoleofCertificationinpromotingcompetitiveness133inworldmarkets

AnexampleofISO9002registrationschedule136ISOaccreditationprocess137Examplesofnonconformance138AcomparisonofTQMandISO139Chapter7ImplementationofTotalQuality141ManagementStagesofQualityMaturity150Qualitymanagementmaturitygrid151BancOneCorporation-TotalQualityManagement152Thequalitytrainingcircle153Improvinghumanperformance154Keystepsinimplementation155Actionsstepsforculturalchange156Referencesandfurtherreadings159