Quality Tactics and the Logistics and Supply Chain Functions (300-450 words)  following quality management tactics: Establishing customer expectations Designing quality Defining metrics

BADM370 – Quality Management

Quality Training Manual for ABC Company

John Smith

February 6, 2023

Dr Thomas Joseph

Table of Contents

I. Introduction 3

· History of quality management evolution 3

· Why quality 4

II. Role of Leadership 4

· Strategic impact and leadership roles 5

· Metrics performance 6

III. Quality Strategies and Tools 10

· Customer expectations 11

· Designing quality 11

· Defining metrics 12

· Mistake proofing 14

· Kaizen methods 14

· Six Sigma 15

IV. Quality Tactics in Supply Chain and Logistics 16

· Internal Customer 16

· External “vendor” Customer 17

V. References 19

Introduction

This training manual for ABC Company has been created to enhance the roll out of “quality management” theories, philosophies, tools and tactics to be used in enhancing the culture of the logistics and supply chain processes within this organization. Quality management has proven successful in companies around the globe, creating results of improved business, specifically: manufacturing and production processes, cost controls and effective service enhancements. This program has the support of the executive management committee. Training will involve all employees beginning at the top, disseminating down to all levels of personnel so that each employee receives the same dedicated knowledge and learning experience to support the company’s business strategies.

History of Quality Management

Quality management has been a part of mankind perhaps as far back as twelfth century BC. The Chinese take credit for first developing their version of quality assurance during the Zhou Dynasty in twelfth century BC (Editorial Board, 2016). Egyptians built the pyramids in 2584 BC, specifically the Pyramid of Giza; still standing today. Henry Ford developed the first assembly line of automobiles during the Second Industrial Revolution in the early 1900’s; developing the preliminary fundamentals of quality practices we use today. The true quality management effort began in the 1950’s, shortly after the Japanese began rebuilding from the devastation of WW II. W. Edwards Deming, an engineer from MIT evaluated and developed a formal theory of principles that could be used in changing the way corporations, specifically manufacturing businesses, needed to operate to continue being productive and profitable. He discussed this with many American businessmen; however, they were all too confident in their way of doing business already in place.

Deming’s principles of management and improvement of quality and productivity theory, along with Juran and other, quality focused individuals, evolved over the years to the principle of “total quality management”. Total quality management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. This can be integrating all quality-related functions and processes throughout the company. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. TQM considers all quality measures taken at all levels and involving all company employees (Murray, 2015).

Why is Quality Needed

In today’s corporate world of global businesses, all companies must challenge themselves to do what is best for the company, their stakeholders, their employees, but most important, the customers who will keep them in business. The challenge is to develop and produce products (services) to meet the needs of the end consumer. Products and services that not only meet their needs but, exceed their expectations and deliver at a price that is reasonable. To this extent, it is an exciting challenge for all employees participating in this quality management training. A business culture change towards quality improvement will evolve where the business of logistics and supply chain management will prove successful.

By implementing a quality improvement initiative, ABC company will experience the following benefits: the company reputation will grow as it continues to produce better quality products and services to its customers, the company will experience revenue growth from more customer sales, the company will develop a greater competitive advantage in its marketplace, and the company will eventually have more satisfied customers based on service and product quality. Employees will be satisfied working for ABC company.

Role of Leadership

While working as the Manager of Sales Training for a $300 million-dollar sales and manufacturing organization, I found myself thrown right into the heart of the quality movement. It wasn’t long before I was spending more time in seminars and meetings pertaining to “quality theories” than I was, working on my own training concerns. Quality was now my only concern, and it would be detrimental to the entire organization as Human Resources personnel and training mangers from within all departments of the organization were in the midst of rolling out “quality management” and process improvement training and initiatives.

Strategic Impact and Leadership Roles

The quality movement was presented from the director of Human Resources, a face known to many, but unusual for a new program to be presented by someone lesser known than perhaps the president or even a vice president of the company. From the beginning it was laid out in a very organized format following W. Edwards Deming’s 14 Points of Quality Management. The Total Quality Management (TQM) theories involved not only Deming but discussions of Joseph Juran, Walter Shewhart, Philip Crosby and others in the movement. Our organization created our own version of Quality Productivity Improvement, simply known as QPI. From this point forward QPI in the organization was an understood acronym that many of us were a part of whether we wanted to be or not. Where did this all come from and who was going to continue pushing the movement? It was me, it was our Director of Human Resources, our Trainer in Manufacturing, our training departments from our sister companies, companies very similar to ours in the manufacturing and sales environment. There were many of us, but we were told to do it, it was now the way of doing business the new way of process improvements to be used in every department by every one of us.

There were leaders from within each department or division of business, but there was no “leader” for the movement itself. From the time the initial training ended it was left to the rest of us to build our own training format, focus on our segment of the business and to press forward the QPI movement for our company. Looking back on it all now, perhaps we had been empowered to conduct our own training principles based on what we had learned and how it would be used to best benefit our personnel in which we had training responsibilities. I wish I knew then what I now know today. I feel as though it would have made a vast difference as to how it all unfolded. I was fortunate to have directors over me that saw the vision of their upper management, the vision that had been handed down to the VPs and directors to make this quality program work.

I do believe that it would have been far more successful having seen and heard from our president exactly what he believed and how we would all become more successful through his vision. Too often, programs become diluted based on one person telling one person, who then tells two people, who then present it to a group. The program was successful in getting the word out, but it failed over a period of several years because there was no one at the top to provide constancy of purpose towards the quality message.

For this quality improvement initiative at ABC company, our leaders will function in various roles to ensure that the program of implementation is successful. Some of the roles include role model where the leaders will represent what they intend to see happen in the company relative to quality management. They will be in the trenches doing what it takes to make this company a quality-oriented company. They will also function as cheerleaders which implies that when we are looking for motivation and the fire to keep going, they will be cheering everyone on. Leaders will also be the coaches in the process. They will provide instructions for improvement and be the go-to-person when needed. Another function of their leadership role will include resource provider where they will provide all the necessary resources needed and required for this initiative. More than ever, we will be able to depend on our leaders in this company to lead this initiative to success.

Metrics of Performance

Much of what was just stated pertaining to success and failures will build future success. Failures, perhaps, create more success than success itself. Learning from failed process improvements, creates a new way, perhaps something never even attempted. You can’t put a measure on something never done before, but you can begin to build a base level of accomplishments and begin creating a measurement system based upon productivity levels, sales increase and customer service levels. Certainly, anything moving the needle up can be attributed to the quality movement. One of the biggest failures to quality is the cost of training employees on quality principles. Utilizing a scale of measurement to improvements made after quality initiatives have been put in place should outweigh any training costs associated with quality.

Strategies and Tools

Quality strategies and tools are useful, proven, methods that have supported businesses quality efforts over the past several decades. Many businesses have modified versions of philosophies; beginning with a basic methodology developed back in the 1970’s–80s “quality era”, known as the end of the first generation of quality and the beginning of the second era. Companies have evolved over the years using various versions from many programs based on how they perceive the effects on their customer. The customer is the main focus of any and all quality programs.

Strategies and tools have been designed to capture the market. You begin by understanding customer values and delivering products and services to meet and exceed their expectations. The strategies and tools are utilized to deliver a quality experience year after year in order to sustain business, keeping stakeholders happy.

Customer Expectations

How do you know what the customer wants? What they need? And, whether or not they are happy with the product or service your business has provided them? This is all predicated on what your business is offering. The company can build upon what they already deliver. Some companies have totally disbanded their product line, phasing it out over time in order to diversify themselves into a new market demand of the customer. Too often, customers don’t even know what they need, let alone what they want. It is difficult to determine this from the business point of view; however, there will be answers provided in this document. First, determining the customer’s expectations may be the beginning of the end result. Customer’s expectations are as different as the customers themselves. Each person values a product or service differently from another. To beat the competition, ABC Company must exceed its customer expectations (Editorial Board, 2016).

Designing Quality In

Businesses offer products that they have full knowledge and understanding of how the consumer uses them. Building quality into these products is to create a product that has features and benefits to meet the needs of the consumer, while adding additional offerings. At ABC Company, the objective is to ensure that customers receive a product and/or service that fully satisfies their need. Therefore, every process will comprise of specific quality check points throughout the process to ensure that at the end pr production, the service delivered and product purchased is a perfect product with zero defect.

Defining Metrics

The tools to define the metrics used in developing quality products or services are known as the tools for continuous improvement which include:

Flowcharts – Follows a step-by-step process of how the product is manufactured; or, how a service should be delivered. Flowcharts are best designed by those who are closest to the implementation processes of the product. Flowcharts provide a visual of just what sequence of events occurs.

Check sheets – These are data collecting sheets that interpret data as either attribute or variable. Attribute data is defined as visual quantification of an inspection of a product, EX: how many times a defect of a certain magnitude is found. Variable data is a measurement on a continuous scale, such as weight, distance or volume.

Histograms –a graphical representation of how often an issue occurs; it can be either a positive or negative issue. The graph shows which issues occur over a period of minutes, hours, days, weeks, etc. The purpose is to see if there is a pattern that can be altered in order to improve upon the procedure.

Pareto Diagram – This tool uses a prioritizing process as to which event in the process is most important and which, if corrected, can provide the biggest gain.

Cause-and-Effect Diagram – This is one of the most useful tools to identify cause and effects of a procedure. This has several other known names such as “cause and effects”, fishbone – due to the picture that is drawn out or Ishikawa- the Japanese quality expert who defined the term. The diagram simply outlines what the causes and effects are in the process.

Scatter Diagram – This diagram provides a relationship analysis between hypothesized cause and effects. A basic “X” – “Y” graph can show how an increase in one variable corresponds to the increase of another if it is graphed up and to the right or decrease in a variable if it is down and to the right. Scatter diagrams are not always prudent to the cause; however, it may provide clues of where improvements can be made.

Control Charts – Provide the opportunity of reviewing the process implementations and verifying those improvements are being made.

We will be using some of these quality control tools in a variety of ways with the business to define the measurements needed to ensure that decisions made are being made to improve processes and are focused on the customer. This will help ensure that the leadership team is taking the necessary steps to ensure quality management at all levels of the organization.

Mistake Proofing

A process to avoid large production disasters, such as those found on assembly lines, is also known as “poka-yoke”. This term was developed by a Japanese engineer, Shiego Shingo, while producing Toyota automobiles. This is a mistake proofing process using automated devices or methods in order to avoid human error. This process is far more cost effective. Poka-yoke processes are also being built into manufacturing of certain products as a warning sign or as an enhanced safety feature; such as, warning sound in your car if the lights remain on, the key is in the ignition when you turn the car off or the car won’t start if seat belts aren’t secured.

Kaizen Methods of Quality

Kaizen is the philosophy of continuous improvement. This strategy has been defined as “the single most important concept in Japanese management – the key to Japanese competitive success” (Evans, 2014, p.152). The kaizen philosophy is being used world-wide and by business across the United States. Major improvements have been made that have saved production time and increase in productivity. The kaizen philosophy came about through just-in-time (JIT) procedures of suppliers providing raw materials in a timely process to avoid large inventory of parts, thus reducing major costs.

Some of the key concepts of kaizen are: customer orientation, total quality control, robotics, suggestion systems, zero defects, quality improvement and just in time delivery. “Kaizen flourishes if management believes in empowering and creates a climate in which new ideas are welcomed” (The Idea of Kaizen, 2011).

Six Sigma

Six Sigma is a quality methodology far more intense than some of the previous programs discussed in this manual. Six Sigma is a business approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and a clear financial return for the organization (Editorial Board, 2016). Six sigma is the premier quality methodology; it takes into consideration all elements of other quality programs, acknowledges business priorities allowing companies to excel.

Quality Tactics	Definition	Importance (Value)	Risks
Establishing customers expectations	Require to set up particular client’s expectation documented along with parameters number that is crucial to the clients (Joseph, 2022)	· Help earn their business · Build trust and keep customers · Help company achieve better outcomes · Improve complain resolution · Better clients’ satisfactions	· Productivity decline · Loss of revenue due to unsatisfied clients · Competitive benefits loss · Waste of time for having to deal with complaints
Designing quality	Develop the product and the procedure that generate it that is impossible or very unlikely to go wrong (Colorado Technical University Online, 2022)	· Create good looking products · Generate positive users’ experiences that may force them to come back buy again · Products operate and feel right · Make products stand out from the crowd · Lead unique identity and meaning	· Decrease sales · Competitive advantages loss · Loss of revenue · Products may look ugly or unattractive to customers · Loss of customers · Poorly constructed
Defining metrics	Communicate clients’ expectations to the real procedure and workers who are engaged to produce services or products (Joseph, 2022)	· Drive improvement · Lead and manage strategic project · Increase efficacy · Greater profits · Reducing in complaints · Provide window on job	· Decrease efficiency · Increase in complaints · Inertia improvement · Reduce profits
Mistake-proofing	Is really a subset of designing quality into the procedure or product (Colorado Technical University Online, 2022)	· Greater levels of client’s satisfaction · High levels of productivity · Augment workers competence	· Decrease production · Lower customer satisfaction · Reduce employee’s competence
Kaizen	Refers to the continuous improvement process (Colorado Technical University Online, 2022)	· Reduce waste · Better efficacy · Improve job satisfaction · Better productivity · Boost client’s satisfaction that may lead to greater revenue	· Augment errors and defects · Low competitiveness · Decrease performance satisfaction
Six Sigma	Is a strategic continuous-improvement (Joseph, 2022)	· Helps business to have a long life · Keep the improvement to sustain its success · Eliminate errors · Decrease products defect · Prevent and curry problems when they are manageable	· Increase risk for products · Decrease profit · Make manager job hard

Using Quality Tactics in Logistics and Supply Chain

Using quality tactics is important for ABC Company as well as for its customers and suppliers. The quality procedure is vital to reach and exceed clients' needs. The internal clients are the final product or service users within the company. However, external customers are the buyers who are not affiliated with the organization where they are buying services or products.

Our quality improvement initiative is important to not only meet but exceed the needs of our customers.

Tools Use for the Internal Customer

There are several quality control tools that may be useful for ABC Company internal customers. However, I have two recommendations in this regard. Customer expectation is my first strategic recommendation to my company. This is required to set up a particular client’s expectation documented along with the number of parameters that are crucial to the clients (Joseph, 2022). If we implement this tactic, we will have better customer satisfaction that will grow the business revenue and employees will be more involved. However, the risk is that we may create some unsatisfied customers that may lead to revenue loss if we don’t meet this expectation. Implementing Kaizen is another recommendation. This refers to the continuous improvement process for the organization. This adoption will help the company decrease waste, better efficiency, and enhance productivity. Nevertheless, there will be risks such as low competitiveness and increased errors if the company does not implement the Kaizen strategy. Using these strategies will improve the quality of our product and service here at ABC Company.

Tools Used for External Vendor Suppliers

One of the technological solutions that permit ABC Company to consistently manage its vendors through frequent cooperation and regular monitoring are vendor management tools (Kissflow, 2022). These tools will assist our company to track quality, managing cost, and measuring third-party vendor performance. Designing quality in can be used as a strategic tool for vendor suppliers. This helps in developing the product and the procedure that generate it that is impossible or very unlikely to go wrong (Colorado Technical University Online, 2022). The importance to implement this tactic is to make products stand out from the competition and generate a positive user-experience that may force customers to come back for the same products. We could potentially lose revenue and our competitive advantage if we don’t implement this strategy. Another quality tactic that I would recommend for external vendor suppliers is six sigma, that is, a continuous-improvement strategy (Joseph, 2022). Implementing this will help us decrease product defects and maintain the improvement to sustain our success. However, we may be at risk to reduce profit if we don’t efficiently adopt this tactic.

References

Colorado Technical University Online. (2022). BADM370 Phase 1 multimedia course material: Quality Management [Multimedia presentation]. Retrieved from Colorado Technical University Online, Virtual Campus, BADM370-2205A: https://campus.ctuonline.edu.

Editorial Board. (2016). Essentials of quality management. Retrieved from Colorado Technical University Online, Virtual Campus, BADM370-2205A:https://campus.ctuonline.edu.

Joseph, T. (2022, September 15). Live Chat # 3 [Chat]. Retrieved from Colorado Technical University Online, Virtual Campus, BADM370-2205A: https://campus.ctuonline.edu

Kissflow. (2022). Top 3 vendor management tools every organization needs to consider. Retrieved August 18, 2022, from https://kissflow.com/procurement/vendor-management/top-vendor-management-tools/

Murray, M. (2015). Total Quality Management (TQM). Retrieved from http://logistics.about.com/od/qualityinthesupplychain/a/TQM.htm.

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