Operations Management For Competitive Advantage ninth edition                              2
   Chapter 7
   Quality Management
       Total Quality Management Defined
       Malcolm Baldrige National Quality Award
       Quality Specifications
       Costs of Quality
       Continuous Improvement
       SPC Tools
       Benchmarking
       Fail-safing
       ISO 9000
                                 CHASE       AQUILANO      JACOBS        ©The McGraw-Hill Companies, Inc., 2001
 Operations Management For Competitive Advantage ninth edition                              3
   Total Quality Management (TQM)
   Defined 
      Total quality management is defined as 
        managing the entire organization so that it 
        excels on all dimensions of products and 
        services that are important to the customer.
                                 CHASE       AQUILANO      JACOBS        ©The McGraw-Hill Companies, Inc., 2001
 Operations Management For Competitive Advantage ninth edition                              4
    1999 Malcolm Baldrige National 
    Quality Award  
       1.0 Leadership (125 points)
       2.0 Strategic Planning (85 points)
       3.0 Customer and Market Focus (85 
          points)
       4.0 Information and Analysis (85 points)
       5.0 Human Resource Focus (85 Points)
       6.0 Process Management (85 points)
       7.0 Business Results (450 points)
                                 CHASE       AQUILANO      JACOBS        ©The McGraw-Hill Companies, Inc., 2001
 Operations Management For Competitive Advantage ninth edition                              5
   Categories for the Baldrige Award
       Manufacturing companies or subsidiaries that
          – produce and sell manufactured products or 
             manufacturing processes or
          – produce agricultural, mining, or construction products.
       Service companies or subsidiaries that sell service
       Small businesses
       Health care organizations
       Educational institutions 
                                 CHASE       AQUILANO      JACOBS        ©The McGraw-Hill Companies, Inc., 2001
 Operations Management For Competitive Advantage ninth edition                           6
   Characteristics of a Baldrige Award 
   Winner
     The companies formulated a vision of what they 
        thought quality was and how they would achieve 
        it.
     Senior management was actively involved.
     Companies carefully planned and organized 
        their quality effort to be sure it would be 
        effectively initiated.
     They vigorously controlled the overall process.
                                CHASE       AQUILANO      JACOBS      ©The McGraw-Hill Companies, Inc., 2001