LECTURE 4

STRATEGIC QUALITY
PLANNING

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

 STRATEGIC QUALITY PLANNING

Strategy Content Quality as a strategy

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

• Strategy is a general plan or set of plans intended to achieve

something, especially over a relatively long period.

• Quality improvement involves:

• Identifying potential areas for improvement;
• Prioritizing potential areas for improvement; and
• Planning the implementation of projects and improvements
THE IMPORTANCE OF TIME IN QUALITY IMPROVEMENT

There are two aspects of time in quality improvement.

These are:

• The time it takes to achieve business goals as a result of

quality.
• The speed at which companies improve.
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 not achieve the goals and distort the data.
3. People will not achieve the goals and distort the system.
 LEADERSHIP FOR QUALITY

Leadership is the process by which an individual (leader)

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

• For followers to have power, leadership must share the

power.

• As a result, leadership is about the sharing of power.

 LEADERSHIP FOR QUALITY

This power takes many forms. These include:

• Power of Expertise
• Reward Power
• Coercive Power
• Referent Power
• Legitimate Power
 LEADERSHIP FOR QUALITY

Leadership Dimensions:
Trait Dimension
Leadership Skills:
• Knowledge
• Communication
• Planning
• Vision
 LEADERSHIP FOR QUALITY:
JUNG AND THE MBTI
• Four dimensions of characteristics
• I ntroversion/E xtraversion
• S ensing/IN tuition
• T hinking/F eeling
• P erceiving/J udging

• Combine to give sixteen personality types

 LEADERSHIP FOR QUALITY:
LEADERSHIP TYPES AND THE MBTI

Leadership types and the Myers−Briggs types

 QUALITY AND ETHICS

• Quality appears to promote good business.

• Quality is also a good consideration for ethics.

“We build good ships. At a profit if we can, at a loss if we must.

But, we build good ships”
(Mission Statement of Massachusetts Shipbuilder)
 QUALITY AS A STRATEGY

Costs of Quality
PAF Paradigm
Prevention Costs
Appraisal Costs
Failure Costs
Internal
External
Lundvall–Juran Model
 QUALITY AS A STRATEGY

• Differentiation through quality

• Focus through quality
• Quality as a core competency
QUALITY STRATEGY PROCESS
The Forced Choice Model
 DEPLOYING QUALITY

Hoshin Kanri or Policy Deployment

The Company develops a 3 - 5 year plan
The Senior Executives develop the current years objectives.
 DEPLOYING QUALITY
Hoshin Planning

Hoshin Kanri or Policy

Deployment Catchball
occurs
The process is
interactive
Teams report up
Management delivers
feedback
 DEPLOYING QUALITY

A Mature Strategic
Planning Process
DOES QUALITY LEAD TO BETTER BUSINESS RESULTS?

Quality and
Price
Cost
Productivity
Profitability
Sustainability
DOES QUALITY LEAD TO BETTER BUSINESS RESULTS?

Quality and
Price
Cost
Productivity
Profitability
Sustainability
DOES QUALITY LEAD TO BETTER BUSINESS RESULTS?

Quality and
Price
Cost
Productivity
Profitability
Sustainability
DOES QUALITY LEAD TO BETTER BUSINESS RESULTS?

Quality and
Price
Cost
Productivity
Profitability
Sustainability
DOES QUALITY LEAD TO BETTER BUSINESS RESULTS?

Quality and
Price
Cost
Productivity
Profitability
Sustainability
SUPPLY CHAIN STRATEGY

Supply Chain Strategic

Planning
 SUPPLY CHAIN STRATEGY

Logistics?
When shall we ship?
What mode of transportation shall we
use?
How do we optimize our shipping
practices?
 SUPPLY CHAIN STRATEGY

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?
 SUPPLY CHAIN STRATEGY

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

Information Flows?
What kinds of enterprise resource planning systems are needed?
How do we link upstream and downstream?
What are data relations?
What data do we need to manage our supply chain effectively?
 SUPPLY CHAIN STRATEGY

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?
 SUPPLY CHAIN STRATEGY

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?
 SUMMARY
Strategy Content Quality as a strategy
The importance of time in quality Quality strategy process
improvement Deploying quality
Leadership for quality Does quality lead to better business
Quality and ethics results?
Supply chain strategy