Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 2
Quality Management (MGT 424)
Due Date: 30/03/2024 @ 23:59
Course Name: Quality Management
Students Name:
Course Code: MGT 424
Students ID Number:
Semester: Second
CRN:
Academic Year: 2023/24
For Instructors Use only
Instructors Name:
Students Grade:
/Out of 10
Level of Marks: High/Middle/Low
General Instructions PLEASE READ THEM CAREFULLY
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented; marks may be reduced for poor
presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources
without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures
containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
The Assignment`s learning Outcomes:
In the 2nd assignment, the students are required to read thoughtfully the Nestlé Waters Unifying
real-time visibility across 26 factories case study , and answer the related questions, upon
successful completion of the assignment the student should be able to:
1. State the importance of standardization and quality standards (CLO2)
2. Use quality improvement tools and practices for continuous improvement to achieve the
organizational change and transformation (CLO3)
3. Develop analytical skills of identifying pitfalls, or quality concerns through assimilated
and strategic planning. (CLO4)
Instructions to read the case study:
Nestlé Waters Unifying real-time visibility across 26 factories case study
Access below link to read the case study:
Nestlé Waters Unifying real-time visibility across 26 factories
case study
This case study demonstrates the application of change management inside Nestle Waters
Company. In addition, it discusses the company need for quality improvement which encouraged
its engineers to search for alternative system to collect and analyze their data. Read the case, by
using your critical thinking skills answer the following questions:
1- Explain the driven reasons for changing the quality documentation system in the Nestle
Waters. (2.5 marks)
2- Outline the change objectives for both Retail Manufacturing and Home and Office
Manufacturing units. (2.5 marks)
3- How the InfinityQS® ProFicient system can control the operation processes? (2.5 marks)
4- Describe the management role in the change process? (2.5 marks)
Important Notes:
For each question, you need to answer not in less than 150 Words.
Support your answers with course material concepts, principles, and theories from the textbook
and scholarly, peer-reviewed journal articles etc.
Use APA style for writing references.
Answers:
1.
2.
….
3.
4.
Chapter 1
Business-Integrated Quality Systems
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Business-Integrated Quality Systems
Organizational theory
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According to the text:
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Organizations exist because they serve a useful purpose.
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The transaction-cost theory of a firm (Coase, 1937) postulates that there
are costs associated with market transactions, and organizations
prosper only when they provide a cost advantage.
?(????? ????? ????? ????????? ??????Coase ? 1937) ? ??? ???? ?????? ?????? ???????? ??????
.???? ????? ???????? ??? ????? ???? ???? ????????
Business-Integrated Quality Systems
Organizational theory
According to the text:
Transaction-cost theory offers a framework for
understanding limits on the size of a firm.
.?????? ???? ???? ??? ???????
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?
As firms grow, it becomes more costly to organize additional
transactions within the firm, called decreasing returns to
management.
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.”?”????? ??????? ??? ????????
Business-Integrated Quality Systems
General Theory of Organization Structure
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A system of relationships that direct and allocate resources
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These relationships can be viewed in different ways, the
most common is:
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? Reporting relationship view
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Business-Integrated Quality Systems
Different Types of Organizational Structures
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The Functional/Hierarchical Structure
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Matrix Organizations
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Cross-Functional Organization Structure
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Process- or Product-Based (Horizontal) Organization
Structures
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Business-Integrated Quality Systems
The Functional/Hierarchical Structure
Traditional structure is a command/control structure that derives its beginnings from the
military.
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Work is delegated from the top to the bottom.
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Business-Integrated Quality Systems
The Functional/Hierarchical Structure
Limitations of the hierarchical structure
????? ?????? ???????
? Can produce a silo mentality among those who work in a particular
stratum: they tend to see the company from the perspective of an
accountant or an engineer rather than from a companywide perspective.
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?”???????” ?? “???????” ????? ?? ????? ?????? ????
? Cooperation is discouraged.
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? Employees tend to think of their superiors as customers.
.????? ???????? ??? ??????? ?? ??????? ???????
? Can results in resource allocation that does not optimally meet the needs of
external customers, who are generally served by processes that cut across
several different functions.
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.??????? ??? ??? ?? ???? ?????? ???? ??? ????? ???????
Business-Integrated Quality Systems
Matrix Organizations ??????? ?????????
In a matrix organization the functional hierarchy remains intact but a
horizontal cross-functional team structure is superimposed on the
functional hierarchy.
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“???????? ??? ??????? ?????? ????????
Business-Integrated Quality Systems
Cross-Functional Organization Structure
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Business-Integrated Quality Systems
According to the text:
Differences between cross-functional structures and matrix structures
??????????? ??? ??????? ?????? ??????? ?????? ?????????
? Scope. Cross-functional organizations deal with company-wide issues,
while matrix organizations focus on specific tasks, goals, or projects.
? ?? ??? ???? ?????? ??????????? ?????? ???????? ?????? ??????? ?? ??????? ??? ????? ???????:??????
.???? ???? ?? ????? ?? ?????? ??????
? Duration. Matrix organizations are temporary, while cross-functional
organizations are often permanent.
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Business-Integrated Quality Systems
According to the text:
Differences between cross-functional structures and matrix structures
??????????? ??? ??????? ?????? ??????? ?????? ?????????
? Focus. Cross-functional organizations often deal with external groups such
as customers, society at large, or regulators. Matrix organizations are
typically focused on internal concerns.
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.? ???? ?? ???? ?????? ?????? ??? ?????????? ?????????.???????? ??????????
? Membership. Membership in cross-functional organizations typically
consists of high-level functional executives. Membership in matrix
organizations usually consists of personnel with technical skills needed to
complete a specific task.
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.???????? ?? ?????? ????????? ???? ?? ????? ??????? ????????? ??????? ??????? ?????? ???? ??????
Business-Integrated Quality Systems
Process- or Product-Based (Horizontal) Organization Structures
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The basis of this organizational structure is the goal of the work being
organized, that is, the product or service being created.
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Business-Integrated Quality Systems
According to the text, there are five forms of organization.
These forms include:
😕 ????? ??? ????????.? ???? ???? ????? ?? ????????? ?????? ?????
1. The Machine Organization. Classic bureaucracy, highly formalized, specialized,
and centralized, and dependent largely on the standardization of work processes for
coordination. Common in stable and mature industries with mostly rationalized,
repetitive operating work (as in airlines, automobile companies, retail banks).
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.)?????? ?? ????? ??????? ?????? ???????? ????? ????????
2. The Entrepreneurial Organization. Nonelaborated, flexible structure, closely and
personally controlled by the chief executive, who coordinates by direct supervision.
Common in start-up and turn-around situations as well as in small business.
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Business-Integrated Quality Systems
According to the text, there are five forms of organization.
These forms include:
3. The Professional Organization. Organized to carry out the expert
work in relatively stable settings, hence emphasizing the
standardization of skills and the pigeonholing of services to be
carried out by rather autonomous and influential specialists, with the
administrators serving for support more than exercising control;
common in hospitals, universities, and other skilled and craft
services.
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?????? ???????? ?????? ??????? ???? ??? ??????? ?? ??? ??????? ??????? ??????? ????
? ?? ????????? ????? ?????? ?????? ??? ????? ???? ?? ?????? ??????? ? ????? ???? ??? ???
.??????????? ????????? ?????? ?? ??????? ??????? ?????????
Business-Integrated Quality Systems
According to the text, there are five forms of organization.
These forms include:
4. The Adhocracy Organization. Organized to carry out expert work in
highly dynamic settings, where the experts must work cooperatively in
project teams, coordinating the activities by mutual adjustment, in flexible,
usually matrix forms of structure; found in high technology industries such
as aerospace and in project work such as filmmaking, as well as in
organizations that have to truncate their more machinelike mature
operations in order to concentrate on product development.
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? ? ?? ????? ???? ?????? ? ?????? ??????? ?? ???? ?????? ?????????? ????? ?????? ?? ??? ????????
??????? ?? ?????? ? ???? ?? ?????? “??????????? ????????” ??? ?????? ??? ????? ???????? ????
????? ??? ?????? ?? ????
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?
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Business-Integrated Quality Systems
According to the text, there are five forms of organization.
These forms include:
5. The Diversified Organization. Any organization split into semiautonomous divisions to serve a diversity of markets, with the
headquarters relying on financial control systems to standardize
the outputs of the divisions, which tend to take on the machine form.
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? ????? ???? ??? ????? ? ??? ????? “?????” ??? ????? ??????? ??????? ?????? ?????? ?????????
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Chapter 2
The Quality Function
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The Quality Function
Juran Trilogy
Juran and Gryna (1988, p. 2.6) define the quality function as the entire collection of
activities through which we achieve fitness for use, no matter where these activities
are performed.
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“.?????? ?? ???? ???? ??? ????????
Quality is thus influenced by, if not the responsibility of, many different
departments.
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The Quality Function
Quality planning involves several steps:
? Define the customers.
? Determine the customer needs.
? Develop product and service features to meet customer
needs.
? Develop processes to deliver the product and service
features.
? Transfer the resulting plans to operational personnel.
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The Quality Function
Quality control is defined by the text as:
? The process used by operational personnel to ensure that their
processes meet the product and service requirements (defined during
the planning stage).
:? ??? ????? ??? ?????? ?????? ???? ??? ????? ???????
???????? ???? ???????? ???????? ?????????? ????? ????? ???????? ???????? ?????? ??????? (??????? ?????
.)?????? ????????
Quality control is based on a feedback loop which includes the following
steps:
? Evaluate actual operating performance.
? Compare actual performance with goals.
? Act on the difference.
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.? ????? ???? ??????? ????????
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.? ???? ??? ???????
The Quality Function
Quality improvement is defined by the text as:
? Aims to attain levels of performance that are unprecedentedlevels that
are significantly better than any past level.
:? ??? ????? ????? ?????? ?????? ???? ??? ????? ???????
????? ??? ????? ??????? ?????? ???? ?? ??????? ?? ???? ??? ???? ???? ?? ???? ????? ?? ?? ??????
??????
Quality management is defined by the text as: ?????
? Is the process of identifying and administering the activities necessary to
achieve the organizations quality objectives.
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.??? ????? ????? ?????? ??????? ??????? ?????? ????? ?????? ?? ????????
The Quality Function
The Quality Function
Two basic ways for organizations to be competitive
? Achieve superior perceived quality by developing a set of product
specifications and service standards that more closely meet customer
needs than competitors
? Achieve superior conformance quality by being more effective than your
competitors in con forming to the appropriate product specifications and
service standards.
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????????? ??????? ???? ???? ?? ??????????
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.??????? ??????? ??????? ???????
The Quality Function
Related business functions:
? Safety
? Safety problems arise when a product
can cause a hazard to others through
its use.
? Safety should be a primary focus
? Regulatory issues
? Product liability
? Three legal theories of liability
? breach of warranty
? strict liability in tort
? negligence
? Two areas of law deal with liability
? Contract law
? Tort law
: ?????? ??????? ??? ??????
? ???????
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The Quality Function
Environmental Issues Relating to the Quality Function Safety
???????? ??????? ???????? ?????? ????? ???????
Connection between environmental issues and quality function is the ISO 14000
standard.
ISO 14000 ???????? ??? ??????? ??????? ?????? ?????? ?? ????????
This standard covers six areas:
? Environmental management systems
? Environmental auditing
? Environmental performance evaluation
? Environmental labeling
? Life-cycle assessment
? Environmental aspects in product standards
:? ????? ??? ??????? ??? ???????
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The Quality Function
Environmental Issues Relating to the Quality Function Safety
???????? ??????? ???????? ?????? ????? ???????
According to the text:
:????? ?????
ISO 14001 is a systems-based standard that gives companies a
blueprint for managing their impact on the environment.
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The requirements fall into five main areas:
? 1. Senior management shall articulate the companys environmental
policy. The policy will include commitments toward pollution
prevention and continuous improvement of the EMS. The policy will
be available to the public.
:? ?????? ?????????? ??? ???? ?????? ?????? ???
? ?????? ??????? ???????? ???? ??? ???????.? ??? ??? ??????? ?????? ?? ???? ??????? ??????? ????????
.????????? ??????? ????? ??????? ????????
The Quality Function
Environmental Issues Relating to the Quality Function Safety
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? 2. Consistent with the environmental policy, you shall establish and maintain
procedures to identify significant environmental aspects and their
associated impacts. Procedures should include legal and other
requirements. Objectives and targets will also be documented, including
continual improvement and pollution prevention.
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? ????? ???? ??????.? ?????? ?? ???? ????????? ????????? ????????? ???????.????????? ??? ??????? ??????
.? ??? ?? ??? ??????? ??????? ???? ???????????????? ?????????
? 3. Each employees role and position must be clearly defined, and all
employees must be aware of the impact of their work on the environment.
Employees shall be adequately trained.
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.? ???? ????? ???????? ?????? ??????.???? ???????
The Quality Function
Environmental Issues Relating to the Quality Function Safety
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? 4. The EMS should be set up to facilitate internal communication. To that
end, all relevant documentation should be easily available and usable, in
either print or electronic form.
? 5. Organizations must continually monitor and document their environ
mental effects and periodically review them to ensure continual
improvement and the effectiveness of the EMS.
? 6.Management is responsible for an internal review of the EMS on a regular
basis.
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Chapter 3
Approaches to Quality
Chapter 3
Approaches to Quality
Market influences that challenged the quality process
in the 1970s
? The growth of consumerism
? The growth of litigation over quality
? The growth of government regulation of quality
? The Japanese quality revolution
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Approaches to Quality
Demings Approach
According to the text, 14 point plan to make work more
enjoyable
? Create constancy of purpose for the improvement of product and
service, with the aim to become competitive, stay in business, and
provide jobs.
? Adopt the new philosophy of cooperation (win-win) in which everybody
wins. Put it into practice and teach it to employees, customers, and
suppliers.
? Cease dependence on mass inspection to achieve quality. Improve the
process and build quality into the product in the first place.
demings ???????
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.????????? ??????????
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Approaches to Quality
Demings Approach
? End the practice of awarding business on the basis of price
tag alone. Instead, minimize total cost in the long run. Move
toward a single supplier for any one item, on a long-term
relationship of loyalty and trust.
? Improve constantly and forever the system of production,
service, planning, or any activity. This will improve quality and
productivity and thus constantly decrease costs.
? Institute training for skills.
? Adopt and institute leadership for the management of people,
recognizing their different abilities, capabilities, and
aspirations. The aim of leadership should be to help people,
machines, and gadgets do a better job. Leadership of
management is in need of overhaul as well as leadership of
production workers.
demings ???????
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.?????? ????? ???? ????????
Approaches to Quality
Demings Approach
? Eliminate fear and build trust so that everyone can work
effectively.
? Break down barriers between departments. Abolish competition
and build a win-win system of cooperation within the
organization. People in research, design, sales, and production
must work as a team to foresee problems of production and use
that might be encountered with the product or service.
? Eliminate slogans, exhortations, and targets asking for zero
defects or new levels of productivity. Such exhortations only
create adversarial relationships, as the bulk of the causes of low
quality and low productivity belong to the system and thus lie
beyond the power of the workforce.
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????? ?????? ?????? ??????? ?????????? ???? ?? ??????? ?? ?????? ?? ???????.??
????? ?? ???????? ???????? ???????? ???? ???? ?????? ????? ?? ??????? ??????
??? ????????? ? .???? ??? ????????? ???? ??? ?????? ?????? ? ????? ?? ????? ?????? ???
?????? ?????? ???????? ?????????? ???????? ????? ??? ?????? ? ?????????? ???? ?????
???? ????? ????????.??
??Demings Approach??
??? Eliminate numerical goals, numerical quotas, and??
??management by objectives. Substitute leadership.??
??? Remove barriers that rob people of joy in their work. This??
??will mean abolishing the annual rating or merit system??
??that ranks people and creates competition and conflict.??
??? Institute a vigorous program of education and self????improvement.??
??? Put everybody in the company to work to accomplish the??
??transformation. The transformation is everybodys job.??
?? ??????? ?demings??
?? ?????? ?? ??????? ??????? ?????? ??????? ???????? ????????? .?????? ??????.??
?? ??????? ??????? ???? ???? ????? ?? ????? ?? ?????? .???? ???? ????? ???? ??????? ???
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Total Quality Control in Japan
Japanese quality control management the following six areas:
? Quality first
? Consumer orientation
? Break down the barrier of sectionalism
? Facts and data
? Respect for humanity as a management philosophy
? Cross-functional management
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ISO 9000 Series
ISO 9000 series is the best known system of quality
standards.
This series is published by the International Organization
for Standardization or ISO.
Initially based on the U.S. Department of Defense Mil-Q9858, released in 1959.
ISO 9000 is a minimum quality standard.
ISO 9000 ???????
.??? ???? ???? ????? ??????? ???????ISO 9000 ???????
ISO. ??? ??? ??? ??????? ?? ??? ??????? ??????? ??????? ??????? ???
? ???? ???? ?? ?????Mil-Q-9858 ?????? ?? ??????? ??? ????? ?????? ??????????
. 1959
.??? ???? ?????? ??????? ???????ISO 9000
ISO 9000 Series
ISO 9000:2000 includes eight quality principles
? Customer focus
? Leadership
? Involvement of people
? Process approach
? System approach to management
? Continual improvement
? Factual approach to decision-making
? Mutually beneficial supplier relationships
? ????? ?????? ????? ???????ISO 9000: 2000 ?
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Quality Awards
Awards are given for outstanding quality. These
awards include:
? Malcolm Baldrige National Quality Award
? Deming Prize
? European Quality Award
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Six Sigma
Six Sigma addresses total quality management issues
? Focus
? Organizational support and infrastructure
? Methodology
? Training
The ultimate goal is data-driven decision making at all levels of
the organization, focused on benefits to their three stakeholder
groups: customers, shareholders, and employees.
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Chapter 4
Customer-Focuses Organizations
Chapter 4
Customer-Focuses Organizations
Importance of quality has been constantly changing in
organizations.
Customer-driven organizations have the following
similar traits:
? Flattened hierarchies
? Adaptable processes
? Effective communications
? Measuring results
? Rewarding employees
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Flattened hierarchies
? When customers are the focus, a larger percentage of the
resources are directly or indirectly involved with customers
(see Figure 4.2), reducing the number of bureaucratic layers
in the organization structure.
? Employees will be empowered to make decisions that
immediately address customer issues, reducing the need for
structured oversight.
? Departments focus on single functions.
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Adaptable processes
? Customers demands are at times unpredictable, requiring
adaptability and potential risk.
? Customer-driven organizations create adaptable systems that
remove bureaucratic impediments such as formal approval
mechanisms or excessive dependence on written procedures.
? Employees are encouraged to act on their own best
judgments.
? If the organizations employees are unionized, the changing
roles will require union partnering in the transformation
process.
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Effective communications
? The leadership of the organization must market their ideas
for the organization.
? Senior leaders must be on their best behavior.
? These leaders must be committed to their vision and
represent that vision in their behavior.
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Measuring results
? Must verify that the company is delivering on the promises the
company made to customers, shareholders, and employees.
? These results become the basis for improvements, process
changes, etc.
? This data must be made available to those people who need it
fast.
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Rewarding employees
? Employees should be treated equally.
? Recognizing exceptional performance or effort
should be done in a way that encourages
cooperation and team spirit, such as parties and
public expressions of appreciation.
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According to the text
? The common thread in the evolution of quality
management is that attention to quality has moved
progressively further up in the organizational hierarchy.
? Quality was first considered a matter for the line worker,
then the inspector, then the supervisor, the engineer, the
middle manager and, today, for upper management.
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According to the text
? Quality will continue to increase in importance, in
tandem with customer relations. Ultimately, it is the
customers concern with quality that has been the
driving force behind qualitys increasing role in the
organization.
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Chapter 5
Strategic Planning
Chapter 5
Strategic Planning
Organizational Vision
Organizational leaders are responsible
