Page 109 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Total Quality Management

Notes 8.2 The Juran Trilogy

Process improvement involves planning. One of the best approaches is the one developed by
Dr. Joseph Juran. It has three components: planning, control, and improvement, and is referred
to as the Juran Trilogy. It is based on financial processes such as budgeting (planning), expense
measurement (control), and cost reduction (improvement).
Planning: The planning component begins with external customers. Once quality goals are
established, marketing determines the external customers, and all organizational personnel
(managers, members of multifunctional teams, or work groups) determine the customers. External
customers may be quite numerous, as is the case of a bank supply organization, where they
include tellers, financial planners, loan officers, auditors, managers, and the bank’s customers.
Control: Control is used by operating forces to help meet the product, process, and service
requirements. It uses the feedback loop and consists of the following steps:
1. Determine items/subjects to be controlled and their units of measure
2. Set goals for the controls and determine what sensors need to be put in place to make the
product, process, or service.
3. Measure actual performance.
4. Compare actual performance to goals.
5. Act on the difference.

Figure 8.1: The Juran Trilogy Diagram

Improvement: The third part of the trilogy aims to attain levels of performance that are
significantly higher than current levels. Process improvements begin with the establishment of
an effective infrastructure such as quality council.

Self Assessment

Fill in the blanks:
3. Process improvement involves …………………….
4. The planning component begins with …………………… customers.

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