Quali 2 - Aula 02 (18-08)

Introduction to Quality Gurus

Overview of Key Quality Gurus

• The lesson focuses on the main concepts from six prominent quality gurus, highlighting that five are American and one is Japanese.

• Notable figures include Deming and Juran, who had significant influence in Japan; George Ormley is mentioned as an Italian contributor to quality systems at Pirelli.

• The discussion includes a Harvard Business School professor still alive today, alongside other deceased gurus like Crosby and Ishikawa.

Historical Context of Quality Movement in Brazil

• Professor Gregório is recognized as a key figure in bringing quality movements to Brazil after studying in Japan during the 1980s.

• A training program called "JUSI" was established for foreigners to learn about quality practices in Japan, with many Brazilian educators participating.

Deming's Contributions

Statistical Foundations and Management Principles

• Deming is known for his statistical approach but gained fame for his management principles rather than just control charts.

• He introduced the PDCA cycle (Plan-Do-Check-Act), which emphasizes continuous improvement within organizations.

Fourteen Principles of Quality Management

Principle 1: Constancy of Purpose

• Organizations should maintain consistent goals despite changes in leadership or trends; frequent shifts can confuse employees.

Principle 2: Adopt a Philosophy

• Companies should embrace a long-term philosophy, such as Kaizen, focusing on gradual improvements over time.

Principle 3: Avoid Mass Inspection

• Instead of mass inspections, use statistical methods and sampling techniques to ensure product quality while reducing costs associated with inspection.

Principle 4: Value Over Price

• Emphasize purchasing based on quality criteria rather than solely on price; low-cost materials may lead to higher long-term costs due to defects.

Principle 5: Continuous Improvement

Leadership and Communication in Operations

Importance of Leadership Characteristics

• Emphasizes the need for leaders to possess specific characteristics to effectively serve their teams, highlighting that leadership is not a zero-sum game.

Creating an Open Communication System

• Stresses the importance of establishing a communication system that allows employees to report issues without fear, especially when higher management is often inaccessible.

Breaking Down Departmental Barriers

• Advocates for eliminating departmental barriers within organizations, suggesting that processes should flow horizontally rather than being hindered by rigid departmental interfaces.

The Pitfalls of Slogans in Workforce Management

• Critiques reliance on slogans as they can misplace responsibility onto workers instead of fostering a culture where safety and accountability are shared.

Challenges with Numerical Quotas

• Warns against implementing uniform numerical quotas across different plants or departments due to varying capabilities and resources among employees.

Empowerment and Growth Principles

Recognizing Contributions Appropriately

• Highlights the necessity of giving credit where it’s due, ensuring that success is recognized collectively rather than attributing blame solely to subordinates when things go wrong.

Fostering Team Development for Succession Planning

• Encourages leaders to prepare their subordinates for advancement, emphasizing that effective succession planning is crucial for organizational growth.

Engaging Everyone in Transformation Efforts

• Calls for collective engagement in transformation initiatives within companies, stressing that alignment towards common goals prevents internal conflicts.

Understanding PDCA Cycle

Introduction to PDCA Cycle

• Introduces the PDCA (Plan-Do-Check-Act) cycle as a foundational concept in quality management, originally popularized by Deming's work on control charts.

Clarifying Misconceptions about PDCA Origins

• Discusses misconceptions regarding the origins of the PDCA cycle and its association with various figures in quality management history.

The Importance of Planning in Quality Management

Planning vs. Execution

• In Brazil, there is a tendency to plan less and execute more, leading to undesirable consequences such as increased work and waste.

• Effective planning can reduce rework and losses; the PDCA (Plan-Do-Check-Act) cycle is essential for process improvement.

Juran's Contributions to Quality

• Joseph Juran, an influential figure in quality management, introduced key concepts including "fitness for use" and the "Juran Trilogy."

• The Juran Trilogy consists of three processes: planning, control, and improvement (also referred to as quality assurance).

Literature on Quality Control

• Juran's book "Quality Control Handbook," which lacks a Portuguese translation, discusses control charts and the trilogy extensively.

• Professor Gregório contributed significantly by translating and technically reviewing many works related to quality management.

ISO 9001 Evolution

• The first version of ISO 9001 was released in 1984/86 with a focus on quality assurance systems aimed at improving processes.

Implementing Quality Improvement

• Juran emphasized that organizations should identify dissatisfaction within their quality control metrics and plan improvements accordingly.

• The PDCA cycle underpins this approach: plan changes, implement them, check results, and act based on findings.

TQC Models: American vs. Japanese Approaches

Understanding TQC Models

• There are two primary Total Quality Control (TQC) models: the American model led by Fagner and the Japanese model influenced by Kaizen principles.

Cultural Context in Quality Management

• To grasp these models fully, one must consider the distinct philosophical backgrounds of both countries—American practices often stem from corporate structures like Motorola.

Key Factors for Success in Quality Management

• Commitment from top management is crucial for successful implementation of quality initiatives; it serves as a critical success factor.

Role of Specialists vs. Group Involvement

Quality Management in Organizations

The Legacy of Fagner and ISO Standards

• Fagner is noted for his significant contributions to quality management, particularly in automotive standards like TS, overseen by the IATF based in Detroit.

Quality Control Circles (CCQ)

• The discussion contrasts group-oriented approaches with individual-focused methods in quality improvement, highlighting Japanese practices.

• In Japan, companies utilized CCQs where employees formed groups to address deviations and propose improvements; these varied widely across organizations.

Basic Tools of Quality

• The concept of "seven basic tools of quality" is introduced, which are essential for effective quality management.

• These tools are categorized into two groups: the "seven old" tools and the "seven new" tools.

Seven Old Tools

• Key control tools include:

• Pareto charts

• Cause-and-effect diagrams (Ishikawa)

• Histograms

• Check sheets

• Scatter plots

• Control charts

Cultural Significance of the Number Seven

• The number seven is culturally significant in Japan; it symbolizes respect and protection, paralleling the Samurai's seven tools with those used for quality control.

New Tools for Project Management

• The emergence of "seven new tools" focuses on project management necessary for implementing quality improvements as advocated by Juran.

Investment in Quality

• Philip Crosby's philosophy emphasizes that achieving zero defects requires doing things right the first time rather than through repeated attempts.

Quality Dimensions in Manufacturing and Services

Introduction to Quality and Market Success

• The speaker discusses the effectiveness of a marketing strategy that emphasizes quality, noting that it has led to significant sales success for certain individuals or "gurus" in the industry.

Dimensions of Quality

• Reference is made to Professor David Garvin's work on quality dimensions, which he originally developed for manufacturing. Other authors later adapted these concepts for services.

Comparison of Philosophies: Japan vs. USA

• A question arises about the application of Japanese versus American philosophies in Brazil, with an observation that Japanese methods are more prevalent than Six Sigma.

• The speaker attributes this trend to historical learning from Japan and notes that older methodologies like PDCA (Plan-Do-Check-Act) have become more established over time.

Key Quality Dimensions in Manufacturing

Performance

• The first dimension discussed is performance, defined as how well a product meets its primary design purpose.

Attributes

• The second dimension involves secondary attributes, which can influence customer purchasing decisions beyond basic functionality.

Reliability and Conformity

• Reliability is highlighted through metrics such as MTBF (Mean Time Between Failures), indicating how long a product lasts before needing maintenance.

• Conformity refers to how well a product meets technical specifications with minimal variability.

Durability

• Durability relates to the materials used in products; higher-quality materials typically lead to longer-lasting products.

Conclusion on Service Quality

The Dynamics of Personal Computers and Brand Differentiation

The Similarities Among PC Brands

• Discussion on the limited differences between personal computer brands, primarily due to a small number of suppliers for processors (Intel and AMD) and other components like hard drives and RAM.

Dell's Competitive Edge

• Dell's success attributed to its pre-sale and post-sale services, allowing customers to customize their orders directly from the website rather than purchasing off-the-shelf products.

Market Adaptation During COVID-19

• Notable mention of how companies that adapted quickly to delivery services thrived during the pandemic, with examples including Dell’s efficient service in Brazil compared to competitors like Apple.

Intangible Elements in Product Appeal

• Emphasis on design as a significant factor in consumer purchasing decisions; consumers often pay more for aesthetically pleasing products regardless of functionality.

Perceived Quality and Brand Status

• Exploration of perceived quality linked to brand status; consumers may choose higher-priced items based on brand reputation rather than material differences, illustrated through examples like luxury jeans.

Dimensions of Quality in Luxury Goods

Unique Aspects of Luxury Watches

• Discussion about specific Swiss watch brands that maintain or increase value over time, contrasting with general trends in luxury goods depreciation.

Service Quality Dimensions

• Introduction to dimensions of quality for services, highlighting how customer perception shapes their experience with a product or service provider.

Consistency in Service Delivery

• Importance of consistency in service delivery; variability can lead to customer dissatisfaction if experiences differ significantly each time they engage with a provider.

Precision in Customer Orders

Professionalism in Customer Service

Importance of Professionalism

• The distinction between front office and back office roles is crucial; the front office interacts directly with clients while the back office provides support.

• Professionals must be honest and straightforward, avoiding pushing products or services that customers did not request.

• Politeness and courtesy are essential traits for customer-facing staff; they should avoid informal language or personal references to clients.

Training and Accountability

• Intensive training and regular audits are necessary to ensure staff adhere to professional standards in client interactions.

• Staff should maintain a professional demeanor, treating clients as customers rather than friends or acquaintances.

Accessibility of Services

• The design of service access is vital; businesses are moving locations to improve accessibility for customers, such as pharmacies relocating from busy avenues to neighborhoods.

• Shopping centers attract customers primarily due to their accessibility, allowing them to access multiple services conveniently.

Measuring Service Efficiency

• Customers evaluate service based on time metrics—how long it takes to receive various aspects of service (e.g., seating at a restaurant).

• Continuous monitoring of response times is critical for improving service delivery.

Flexibility vs. Efficiency

• There’s a tension between optimizing processes and maintaining flexibility; some degree of downtime may be necessary for responsiveness.

• Businesses need flexibility in scheduling to accommodate unexpected client requests without being overbooked.

Response Capability

• A common issue in Brazil is the reluctance of employees to admit when they do not know something; instead, they should commit to finding out information.

Customer Service and Credibility in Business

The Importance of Responsiveness

• A customer shares their experience of waiting seven years for a response from a dealership, highlighting the lack of responsiveness as a critical failure in service.

• This incident emphasizes that poor communication can lead to customers seeking alternatives for their vehicle maintenance needs.

Understanding Credibility

• Credibility is closely linked to perceived quality, particularly in manufacturing and service sectors.

• Customers prefer established brands with a history of reliability when making significant financial decisions, such as choosing insurance or banking services.

• Building credibility takes time; it cannot be achieved overnight, which poses challenges for new businesses trying to enter competitive markets.

Empathy and Customer Relationships

• Empathy involves understanding the customer's perspective; excessive marketing communications can drive customers away rather than attract them.

• Companies must find non-intrusive ways to maintain relationships with clients to prevent them from seeking other providers.

Service Quality Dimensions

• Maintaining periodic contact with customers is essential; neglecting this can result in losing clientele.

• Businesses should be aware that what differentiates them today may become standard expectations tomorrow, necessitating constant adaptation.

Organizational Competence and Quality Management

• The 5W2H technique (Who, What, When, Where, Why, How) is crucial for organizational competence and clarity in roles within a company.

• Quality management involves aligning actions and resources effectively while prioritizing tasks based on strategic goals.

Continuous Improvement Models

• Organizations should continuously assess their performance against established models to identify gaps between current practices and desired outcomes.

• The discussion will include the five gaps model related to service quality differences compared to manufacturing processes.

Final Thoughts on Service Dynamics

• Understanding push-pull dynamics within organizations helps improve processes by motivating employees through effective systems of rewards and recognition.