Summary of Key Points and Terminology - Chapter 2

• Quality management had its roots in manufacturing during the 1980s; soon after, service providers, health care, education, nonprofit, and government organizations began to study and implement quality management approaches. • A system is a set of functions or activities within an organization that work together for the aim of the organization. Systems thinking is critical in applying quality principles because the organizational linkages among various functions of an organization must be in alignment to meet the needs of customers and other stakeholders. • Quality in manufacturing has traditionally focused on such technical issues as reliability, inspection, defect measurement, and process control. Quality plays an important role in each component of a manufacturing firm’s production and business-support systems. All are linked together as a system of processes that support the organization’s objectives. • Service – which is “any primary or complementary activity that does not directly product a physical product – that is, the non-goods part of the transaction between buyer (customer) and seller (provider)”represents the dominant sector of the U.S. economy today. The differences between services and manufacturing require different approaches in designing and implementing quality assurance programs. The two key components of service quality are employees and information technology. • The health care industry has faced considerable pressure from both the government and consumers to improve quality. Many organizations are involved in quality-related oversight and promotion of quality principles. While many efforts are underway, considerable work remains for the industry as a whole. Many professional organizations, such as JCAHO, NCQA and IHI, are dedicated to improving the