Managing Quality Integrating the Supply Chain

by Foster, S. Thomas; Gardner, John W.

• ISBN13: 9781119883869
• ISBN10: 1119883865
• Edition: 7th
• Format: Paperback
• Copyright: 2022-10-04
• Publisher: Wiley

Summary

In the newly revised seventh edition of Managing Quality: Integrating the Supply Chain, a decorated team of operations experts delivers a thorough introduction to quality management with an enduring emphasis on the importance of the supply chain for quality improvement. You'll obtain an integrated understanding of the customers, suppliers, technology, and people essential to maintaining and enhancing product quality in business.

This latest edition combines the unifying theme of the supply chain with the latest developments in critical subject areas, like Lean, Six Sigma, and service quality. Updated vignettes and references maintain the currency of the work, while new content expands its scope and increases readability and accessibility for students of operations, quality management, and business.

Table of Contents

Preface xxiii

Acknowledgments xxv

About the Authors xxvii

Part 1 Understanding Quality Concepts

1 Differing Perspectives on Quality 2

 A CLOSER LOOK AT QUALITY 1-1: Buying Clothing in Asia, 3

What Is Quality?, 4

Product Quality Dimensions, 4

Service Quality Dimensions, 5

Why Does It Matter That Different Definitions of Quality Exist?, 6

Differing Functional Perspectives on Quality, 7

A Supply Chain Perspective, 8

 A CLOSER LOOK AT QUALITY 1-2: Covid and Quality, 9

An Engineering Perspective, 9

An Operations Perspective, 11

A Strategic Management Perspective, 12

A Marketing Perspective, 12

 QUALITY HIGHLIGHT 1-1: Quality Strategy at Hyundai, 13

A Financial Perspective, 15

The Human Resources Perspective, 16

Is Quality Management Its Own Functional Discipline?, 17

The Three Spheres of Quality, 18

 QUALITY HIGHLIGHT 1-2: Federal Express Corporation, 20

Other Perspectives on Quality, 20

The Value-Added

Perspective on Quality, 20

Cultural Perspectives on Quality, 21

Arriving at a Common Understanding of Quality Using a Contingency Perspective of Quality, 21

Employment in Quality Management, 21

Summary, 22

Key Terms, 23

Discussion Questions, 23

 CASE 1-1: FedEx: Managing Quality Day and Night, 24

 CASE 1-2: Graniterock Company: Achieving Quality through Employees, 25

2 Quality T heory 27

What Is Theory?, 27

Is There a Theory of Quality Management?, 29

 A CLOSER LOOK AT QUALITY 2-1: Quality and Management Fads, 29

History of Quality Management, 30

Leading Contributors to Quality Theory: W Edwards Deming, 31

Deming’s 14 Points for Management, 32

Leading Contributors to Quality Theory: Joseph M Juran, 36

The Juran Trilogy, 36

Control versus Breakthrough, 36

Project-by- Project Improvement, 37

 A CLOSER LOOK AT QUALITY 2-2: Juran on the Past Century of Quality, 37

Leading Contributors to Quality Theory: Kaoru Ishikawa, 38

The Basic Tools of Quality, 38

Leading Contributors to Quality Theory: Taiichi Ohno and Shigeo Shingo, 39

Leading Contributors to Quality Theory: Armand Feigenbaum, 39

The 19 Steps of TQC, 40

Leading Contributors to Quality Theory: Philip Crosby, 41

Leading Contributors to Quality Theory: Genichi Taguchi, 41

Definition of Quality, 42

Quality Loss Function, 42

Robust Design, 42

Leading Contributors to Quality Theory: The Rest of the Pack, 42

Robert C Camp, 43

Stephen R Covey’s “8” Habits, 43

Michael Hammer and James Champy, 44

 A CLOSER LOOK AT QUALITY 2-3: Selling Quality Fads, 44

Viewing Quality Theory from a Contingency Perspective, 45

Resolving the Differences in Quality Approaches: An Integrative View, 45

Leadership, 45

Employee Improvement, 47

Quality Assurance, 47

Customer Focus, 47

Quality Philosophy, 47

Information Analysis, 47

Strategic Planning, 47

Environment or Infrastructure, 48

Team Approach, 48

Focus of the Quality Department, 48

Breakthrough, 48

Theoretical Framework for Quality Management, 48

Summary, 49

Key Terms, 49

Discussion Questions, 49

 CASE 2-1: Tesla: Improving Quality?, 50

 CASE 2-2: Has Disney Developed a Theory of Quality Guest Services Management?, 51

3 Global Supply Chain Quality and International Quality Standards 53

Managing Quality for the Multinational Firm (MNF), 54

 QUALITY HIGHLIGHT 3-1: Global Supply Chain Quality at Trek, 56

Quality Improvement: The American Way, 58

The Baldrige Performance Excellence Program, 58

 A CLOSER LOOK AT QUALITY 3-1: Who Was Malcolm Baldrige?, 63

The Baldrige Process, 63

Baldrige Scoring, 64

Being a Baldrige Examiner, 65

 QUALITY HIGHLIGHT 3-2: Honeywell Federal Manufacturing & Technologies, 67

 A Culture Aligned, Checked, and Filtered for Success, 68

State Awards, 68

Quality Improvement: The Japanese Way, 69

Deming Prize, 69

Other Japanese Contributions to Quality Thought, 69

Lean Production, 70

 QUALITY HIGHLIGHT 3-3: Thermo Fisher Scientific—Vilnius Lithuania, 71

Japanese Total Quality Control (TQC), 72

Quality Improvement: The European Way, 74

European EFQM Excellence Award, 74

Quality Management Principles Underlying ISO 9000:2015, 76

Selecting a Registrar, 77

The ISO 9000:2015 Process, 77

ISO 14000, 78

Quality Improvement: The Chinese Way, 79

Does Chinese Quality Management Exist?, 79

 A CLOSER LOOK AT QUALITY 3-2: Outsourcing Woes, 81

Are Quality Approaches Influenced by Culture?, 82

Summary, 83

Key Terms, 83

Discussion Questions, 83

 CASE 3-1: Denver International Airport Becomes ISO 14001 Certified, 84

 CASE 3-2: Wainwright Industries: An Entirely New Philosophy of Business Based on Customer Satisfaction and Quality, 85

Part 2 Designing and Assuring Quality

4 Strategic Quality Planning 88

Strategy Content, 88

The Importance of Time in Quality Improvement, 88

 A CLOSER LOOK AT QUALITY 4-1: Bad Measurement Systems Result in Poor Outcomes, 90

Leadership for Quality, 91

Leadership Dimensions, 92

 QUALITY HIGHLIGHT 4-1: Memorial Hermann Sugar Land Hospital, 93

Quality and Ethics, 94

Quality as a Strategy, 94

Costs of Quality, 94

PAF Paradigm, 95

Accounting for Quality-Related Costs, 96

Lundvall–Juran Quality Cost Model, 98

Differentiation through Quality, 98

Focus through Quality, 99

Order Winners, 99

Quality as a Core Competency, 100

Quality Strategy Process, 100

Forced-Choice Model, 101

Deploying Quality, 101

 A CLOSER LOOK AT QUALITY 4-2: A Mature Strategic Planning Process, 102

Does Quality Lead to Better Business Results?, 104

Quality and Price, 105

Quality and Cost, 105

Quality and Productivity, 105

Quality and Profitability, 106

Quality and Sustainability, 106

Supply Chain Strategy, 107

Summary, 108

Key Terms, 108

Discussion Questions, 108

Problems, 109

 CASE 4-1: Ames Corporation: Realizing Multiple Benefits through Improved Quality, 110

 CASE 4-2: MidwayUSA, 112

5 The Voice of the Customer 113

 A CLOSER LOOK AT QUALITY 5-1: Online Review of Merchandise, 114

Customer-Driven Quality, 114

The Pitfalls of Reactive Customer-Driven Quality, 115

Customer-Relationship Management, 116

Complaint Resolution, 116

Feedback, 117

Guarantees, 117

Corrective Action, 118

The “Gaps” Approach to Service Design, 118

Segmenting Customers and Markets, 120

Strategic Supply Chain Alliances Between Customers and Suppliers, 122

Process-Chain- Network (PCN) Tool for Service Design, 123

The Role of the Customer in the Supply Chain, 124

Communicating Downstream, 125

Actively Solicited Customer-Feedback Approaches, 125

Telephone Contact, 126

Focus Groups, 126

Customer Service Surveys, 127

 A CLOSER LOOK AT QUALITY 5-2: Misusing Surveys, 127

Passively Solicited Customer-Feedback Approaches, 130

Customer Research Cards, 131

Customer Response Lines and Web Sites, 131

Managing Customer Retention and Loyalty, 131

Customer-Relationship Management Systems, 132

A Word on Excellent Design, 134

Summary, 134

Key Terms, 134

Discussion Questions, 135

Problems, 135

 CASE 5-1: Customer Quality Feedback and Reviews at Amazon, 136

 CASE 5-2: Gerdau Long Steel North America: Achieving High Quality through a Commitment to Both External and Internal Customers, 137

6 The Voice of the Market 138

Gaining Insights Through Benchmarking, 138

Process Benchmarking, 140

Financial Benchmarking, 140

Performance Benchmarking, 140

Product Benchmarking, 141

Strategic Benchmarking, 141

 QUALITY HIGHLIGHT 6-1: Pal’s Sudden Service, 141

Functional Benchmarking, 142

Purposes of Benchmarking, 143

Difficulties in Monitoring and Measuring Performance, 143

Commonly Benchmarked Performance Measures, 146

Why Collect All These Measures?, 147

Key Business Factors, 147

Business Process Benchmarking, 148

Robert Camp’s Business Process Benchmarking Process, 149

Leading and Managing the Benchmarking Effort, 150

Training, 151

 A CLOSER LOOK AT QUALITY 6-1: Benchmarking at PwC, 151

 A CLOSER LOOK AT QUALITY 6-2: The Legal Environment of Benchmarking, 152

Baselining and Process Improvement, 153

Problems with Benchmarking, 154

Summary, 154

Key Terms, 155

Discussion Questions, 155

Problems, 156

 CASE 6-1: Amgen Corporation: Using Benchmarking as a Means of Coping with Rapid Growth in Pharmaceuticals, 158

 CASE 6-2: Institute for Healthcare Improvement (IHI): Breakthrough Series, 160

7 Quality and Innovation in Product and Process Design 161

Designing Products for Quality, 161

The Design Process, 162

 QUALITY HIGHLIGHT 7-1: Apple’s Watch: A Philosophy of Design, 164

Quality Function Deployment (QFD), 166

Technology in Design, 171

Other Design Methodologies, 172

Organizing the Design Team, 172

The Product Life Cycle, 173

 A CLOSER LOOK AT QUALITY 7-1: Ski Design, 173

Product Families and the Product Life Cycle, 174

Complementary Products, 175

Designing Products That Work, 175

 A CLOSER LOOK AT QUALITY 7-2: It Takes a Scientist to Design a Winter Coat, 175

Design for Manufacture Method, 177

Design for Maintainability, 178

Designing for Reliability, 178

 QUALITY HIGHLIGHT 7-2: Designing Reliable iPhones at Apple, 179

Reliability Analysis Tools, 179

Failure Modes and Effects Analysis, 179

How FMEA Works, 180

Fault-Tree Analysis, 182

Failure Modes, Effects, and Criticality Analysis, 182

Product Traceability and Recall Procedures, 182

Environmental Considerations in Design, 183

Summary, 184

Key Terms, 184

Discussion Questions, 185

Problems, 185

 CASE 7-1: Keeping Apple’s iPhone Competitive, 187

 CASE 7-2: Nucor Corporation: Producing Quality Steel by Stressing Sound Management Practices, 187

8 Designing Quality Services 189

Differences Between Services and Manufacturing, 189

Internal versus External Services, 190

Voluntary versus Involuntary Services, 191

How Are Service Quality Issues Different from Those of Manufacturing?, 191

 A CLOSER LOOK AT QUALITY 8-1: Service Warranties: Profitable or a Rip-off— You Decide, 192

How Are Service Quality Issues Similar to Manufacturing?, 192

What Do Services Customers Want?, 193

 QUALITY HIGHLIGHT 8-1: Stellar Solutions, Inc., 194

Servqual, 194

Expectations, 195

Perceptions, 195

Gap Analysis, 195

Assessing Differences in Expectations and Perceptions by Using the Differencing Technique, 199

Designing and Improving the Services Transaction, 202

Services Blueprinting, 203

Moments of Truth, 204

 A CLOSER LOOK AT QUALITY 8-2: Quality in Health Care, 204

Poka-yoke, 205

The Customer Benefits Package, 206

Service Transaction Analysis, 209

Improving Customer Service in Government, 211

 A CLOSER LOOK AT QUALITY 8-3: Government Service Quality, 211

Quality in Health Care, 212

Supply Chain Quality in Services, 213

A Theory for Service Quality Management, 213

Summary, 214

Key Terms, 214

Discussion Questions, 215

Problems, 215

 CASE 8-1: Google Designs Quality Services with Customers in Mind, 219

 CASE 8-2: UPS: Delivering the Total Package in Customer Service, 220

9 Managing Supplier Quality in the Supply Chain 221

The Value Chain, 221

The Chain of Customers, 222

Managing the Supply Chain, 222

Supplier Alliances, 223

 A CLOSER LOOK AT QUALITY 9-1: Supply Chains Disruption and Risk Mitigation, 225

Single-Sourcing Examples, 226

 QUALITY HIGHLIGHT 9-1: A Bumpy Ride at Boeing, 226

Supplier Development, 228

 QUALITY HIGHLIGHT 9-2: Integrating Forward along the Supply Chain: 3M Dental Products Division, 229

Supplier Awards, 230

Supplier Relationship Management System (SRMS), 230

Applying the Contingency Perspective to Supplier Partnering, 230

A Supplier Development Program: IATF 16949, 231

IATF 16949, 231

Organizational Context, 232

Leadership, 232

Planning, 232

Support, 232

Operation, 232

Performance Evaluation, 233

Improvement, 233

Building an Understanding of Supply Chain Quality Management, 233

Summary, 234

Key Terms, 234

Discussion Questions, 234

 CASE 9-1: AT&T: Setting High Standards for Suppliers and Rewarding Supplier Performance, 235

 CASE 9-2: Managing the Supply Chain at Honeywell, 236

Part 3 Implementing Quality

 10 The T ools of Quality 238

Improving the System, 238

Ishikawa’s Basic Seven Tools of Quality, 239

Process Maps, 239

 A CLOSER LOOK AT QUALITY 10-1: Extended Mapping of Supply Chains, 244

Check Sheets, 246

Histograms, 247

Scatter Diagrams, 249

Control Charts, 251

Cause-and- Effect (Ishikawa) Diagrams, 251

Pareto Charts, 253

The Seven New Tools for Improvement, 256

The Affinity Diagram, 256

The Interrelationship Digraph, 259

Tree Diagrams, 263

Prioritization Grid, 263

Matrix Diagram, 266

Process Decision Program Chart, 267

Activity Network Diagram, 267

Reflections on the Managerial N7 Tools, 269

Other Tools for Performance Measurement, 269

Spider or Radar Charts, 269

Balanced Scorecards, 269

Dashboards, 270

Huddle Boards, 270

Turtle Diagrams, 270

Bowtie Diagram, 272

Summary, 273

Key Terms, 273

Discussion Questions, 273

Problems, 274

 CASE 10-1: Corporate Universities: Teaching the Tools of Quality, 276

 CASE 10-2: Lanier: Achieving Maximum Performance by Supporting Quality Products with Quality Services, 277

11 Statistically Based Quality Improvement for Variables 279

Statistical Fundamentals, 279

What Is Statistical Thinking?, 279

 QUALITY HIGHLIGHT 11-1: Statistical Tools in Action, 280

Why Do Statistics Sometimes Fail in the Workplace?, 281

Understanding Process Variation, 281

Process Stability, 283

Sampling Methods, 283

Random Samples, 283

Systematic Samples, 283

Sampling by Rational Subgroups, 284

Planning for Inspection, 284

Control Plans, 284

Process Control Charts, 284

Variables and Attributes Control Charts, 286

A Generalized Procedure for Developing Process Charts, 286

Understanding Process Charts, 287

x and R Charts, 288

Interpreting Control Charts, 290

Using Excel to Draw x– and R Charts, 294

X and Moving Range (MR) Charts for Population Data, 295

Using Excel to Draw X and MR Charts, 297

Median Charts, 297

Using Excel to Draw Median Charts, 300

x and s Charts, 300

Using Excel to Draw x and s Charts, 302

Other Control Charts, 302

Moving Average Chart, 302

Cusum Chart, 303

Some Control Chart Concepts for Variables, 303

Choosing the Correct Variables Control Chart, 303

Corrective Action, 305

How Do We Use Control Charts to Continuously Improve?, 305

Tampering with the Process, 305

Process Capability for Variables, 306

 A CLOSER LOOK AT QUALITY 11-1: Why Consistent High Quality Matters, 306

Population versus Sampling Distributions, 306

Capability Studies, 308

Ppk, 310

The Difference between Capability and Stability, 311

Other Statistical Techniques in Quality Management, 311

Summary, 312

Key Terms, 312

Discussion Questions, 312

Problems, 313

 CASE 11-1: Ore-Ida Fries, 316

12 Statistically Based Quality Improvement for Attributes 318

Generic Process for Developing Attributes Charts, 319

Understanding Attributes Charts, 319

p Charts for Proportion Defective, 319

Using Excel to Draw p Charts, 322

np Charts, 322

Using Excel to Draw np Charts, 324

c and u Charts, 324

Using Excel to Draw c and u Charts, 327

Attributes Charts Summary, 327

Choosing The Right Attributes Chart, 327

Reliability Models, 328

Series Reliability, 329

Parallel Reliability, 330

Measuring Reliability, 331

Mean Time to Failure (MTTF), 332

 A CLOSER LOOK AT QUALITY 12-1: Quality Control at GNC, 333

System Availability, 333

Summary, 334

Key Terms, 334

Discussion Questions, 335

Problems, 335

 CASE 12-1: Decision Sciences Institute National Conference, 338

13 Lean and Six Sigma Management Principles and Tools 341

Understanding Six Sigma, 343

Organizing Six Sigma, 345

DMAIC Overview, 346

 A CLOSER LOOK AT QUALITY 13-2: DMAIC in Action, 347

Define Phase, 348

Developing the Business Case, 348

Project Evaluation, 348

Prioritization Analysis, 348

Problem Definition, 354

Measure Phase, 354

Selecting Process Outcomes, 354

FMEA, 355

Verifying Measurements, 355

Gauge R&R, 355

Using Excel to Perform Gauge R&R Analysis, 359

Analyze Phase, 359

Defining Objectives, 360

Identifying Xs, 361

Analyzing Sources of Variation, 361

Improve Phase, 361

Control Phase, 361

Taguchi Design of Experiments, 361

Robust Design, 362

Background of the Taguchi Method, 362

Taguchi Definition of Quality, 363

Quality Loss Function, 363

The Taguchi Process, 365

Using Excel to Solve Taguchi Experiments, 368

Design for Six Sigma, 368

Understanding Lean Production, 369

The Toyota Production System, 370

Just-in- Time and Pull Systems, 370

Other Lean Principles and Techniques, 371

Reducing Waste, 371

Lean Value Stream Maps, 371

Common VSM Symbols, 374

Lean and Six Sigma from a Contingency Perspective, 377

Summary, 378

Key Terms, 378

Discussion Questions, 378

Problems, 379

 CASE 13-1: The Neiman-Marcus Cookie, 382

 CASE 13-2: A Ladder Value Stream, 383

Part 4 Forever Improving the Quality System

14 Managing Quality Improvement Teams and Projects 386

Why Employees Enjoy Teams, 387

Leading Teams for Quality Improvement, 387

Employee Empowerment and Involvement, 387

 A CLOSER LOOK AT QUALITY 14-1: Empowerment in Action, 389

Flattening Hierarchies for Improved Effectiveness, 389

Team Leader Roles and Responsibilities, 390

Team Roles and Responsibilities, 391

Team Formation and Evolution, 392

Team Rules, 392

Types of Teams, 393

Process Improvement Teams, 393

Cross-Functional Teams, 394

Tiger Teams, 394

Natural Work Groups, 394

Self-Directed Work Teams, 395

Virtual Teams, 395

 A CLOSER LOOK AT QUALITY 14-2: Lessons from Effective Teams Outside the Business World, 395

Implementing Teams, 396

Meeting Management, 397

Conflict Resolution in Teams, 398

Saving Quality Teams from Failure: Diagnosing Problems and Intervening Before it Is Too Late, 401

Managing and Controlling Projects, 401

 QUALITY HIGHLIGHT 14-1: Leading Project Excellence, 402

Qualifying Projects, 403

Project Charters, 404

Force-Field Analysis, 405

Work Breakdown Structure (WBS), 406

Identifying Precedence Relationships, 407

Identifying Outcome Measures, 407

Identifying Task Times, 407

Activity Network Diagrams, 408

Arrow Gantt Charts, 412

Managing Multiple Projects, 412

Summary, 413

Key Terms, 414

Discussion Questions, 414

Problems, 415

 CASE 14-1: Whole Foods Market: Using Teamwork as a Recipe for Success, 417

15 Implementing and Validating the Quality System 419

Building Blocks for the System of Quality Improvement, 419

People, 420

Organizational Learning and Knowledge, 421

Culture, 422

Closeness to Customers, 422

Information and Finance, 423

The Three Spheres of Quality, 423

The Integrative Approach, 424

Alignment between the Quality System and Strategy, 424

 QUALITY HIGHLIGHT 15-1: Google’s Alphabet Strategy, 424

Internal Validation: Documenting and Assessing the Quality System, 425

 A CLOSER LOOK AT QUALITY 15-1: A Simple Self-Assessment Tool, 426

Quality Audits, 429

Quality Audit Process, 430

Types of Audits, 431

Qualitative and Quantitative Elements in Audits, 432

Validating the Quality System, 432

Summary, 433

Key Terms, 434

Discussion Questions, 434

Problems, 434

 CASE 15-1: Setting Priorities Using the Baldrige Criteria, 434

Appendix A-1

Glossary G-1

Index I-1