Foster ch04 4th Edition

Chapter 4
Strategic Quality Planning
➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

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➢Strategic Quality Planning
Chapter 4
➢Strategy Content ➢Quality as a strategy

➢The importance of ➢Quality strategy
time in quality process
improvement ➢Deploying quality
➢Leadership for quality ➢Does quality lead to
➢Quality and ethics better business results?
➢Supply chain strategy

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Strategy Content
Quality improvement involves identifying

potential areas for improvement and
planning the implementation of projects
and improvements

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The importance of time in quality improvement
There are two aspects of time:
➢The time it takes to achieve business goals

as a result of quality
➢The speed at which companies improve

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The importance of time in quality improvement
When goals are set, one of three things

will occur:
1. People will achieve the goals and incur
positive results
2. People will distort the data
3. People will distort the system

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Leadership for quality
Leadership is the process by which a leader

influences a group to move towards the
attainment of superordinate goals.

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For followers to have power, leadership

must share power. As a result leadership
is about the sharing of power.

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This power takes many forms:

➢ The power of expertise
➢ Reward power
➢ Coercive power
➢ Referent power
➢ Legitimate power

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Quality and Ethics
Quality appears to be good business

Quality is also good ethics
“We build good ships. At a profit if we can, at
a loss if we must. But, we build good
ships”

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Quality as a strategy
➢ Cost of Quality
➢ PAF Paradigm
➢ Prevention Costs
➢ Appraisal Costs
➢ Failure Costs

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Failure Costs
➢ Internal failure costs
➢ External failure costs

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➢ Differentiation through quality

➢ Focus through quality
➢ Quality as a core competency

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Quality Strategy Process
The Forced Choice Model

1. Statement of the mission
2. Interrelated financial and non-
financial objectives
3. Statement of strengths and
weaknesses
4. Forecast of operations

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5. Major future operations
6. Broad economic Assumptions
7. Key government/regulatory
issues
8. Major technological forces

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9. Significant marketing
opportunities/threats
10. Explicit competitor strategies for
each competitor
11. Generating Strategic options

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Deploying Quality
Hoshin Kanri or Policy Deployment

➢The Company develops a 3 - 5 year
plan
➢The Senior Executives develop the
current years objectives.

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Deploying Quality
Hoshin Kanri or Policy Deployment

Catchball occurs
➢The process is interactive
➢Teams report up
➢Management delivers feedback

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Does Quality Lead to Better Business Results?
Quality and
➢Price
Cost
Productivity
Profitability
Environment

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Quality and
➢Price
➢Cost
Productivity
Profitability
Environment

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Quality and
➢Price
➢Cost
➢Productivity
Profitability
Environment

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Quality and
➢Price
➢Cost
➢Productivity
➢Profitability
Environment

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Quality and
➢Price
➢Cost
➢Productivity
➢Profitability
➢Environment

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Supply Chain Strategy
Logistics?
➢When shall we ship?
➢What mode of transportation shall we
use?
➢How do we optimize our shipping
practices?

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Suppliers?
➢Who are our preferred suppliers?
➢What is our process for supplier selection?
➢How do we develop suppliers?
➢How do we link with our suppliers?
➢Do we source globally?

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Inventory management?
➢Where do we optimally store inventory
➢How much? How long?
➢Do we have perishable stock?
➢Do we carry safety stock?
➢ARE we maintaining good levels of service?

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Products?
➢How much product do we stock?
➢What product variety is necessary?
➢How do we win orders?
➢Where are our products in their life cycles?

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Service?
➢How do we define service along the supply
chain?
➢What do our customers want?
➢can we segment the supply chain?
➢Who are our customers?

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recording, or otherwise, without the prior written permission of the publisher.
Printed in the United States of America.

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Chapter 4

Strategic Quality Planning

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Strategy Content ➢Quality as a strategy

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Quality improvement involves identifying

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

There are two aspects of time:

➢The time it takes to achieve business goals

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

When goals are set, one of three things

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Leadership is the process by which a leader

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

For followers to have power, leadership

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

This power takes many forms:

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Quality appears to be good business

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢ Differentiation through quality

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

The Forced Choice Model

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

The Forced Choice Model

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

The Forced Choice Model

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Hoshin Kanri or Policy Deployment

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Hoshin Kanri or Policy Deployment

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

➢Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

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