Management of
Quality
Quality
Management
Broadly defined, quality refers to the ability
of a product or service to consistently meet or
exceed customer requirements or
expectations. However, different customers
will have different requirements, so a working
definition of quality is customer-dependent.
Quality Management
Quality is the ability of a product or service to consistently
meet or exceed customer expectations.
According to American Society for Quality (ASQ; www.asq.org ),
quality is the totality of features and characteristics of a product
or service that bears on its ability to satisfy stated or implied
needs.
Quality Management
Others, however, believe that definitions of quality fall into
several categories. Some definitions are user based. They
propose that quality “lies in the eyes of the beholder.”
Marketing people like this approach and so do customers. To
them, higher quality means better performance, nicer
features, and other (sometimes costly) improvements.
Quality Management
To production managers, quality is manufacturing based.
They believe that quality means conforming to standards and
“making it right the first time.”
Yet a third approach is product based , which views quality as
a precise and measurable variable.
Evolution of Quality Management
1924 - Statistical process control charts
1930 - Tables for acceptance sampling
1940’s - Statistical sampling techniques
1950’s - Quality assurance/TQC
1960’s - Zero defects
1970’s - Quality assurance in services
The Quality Gurus
• Walter Shewhart
• “Father of statistical quality control”
• W. Edwards Deming
• Joseph M. Juran
• Armand Feignbaum
• Philip B. Crosby
• Kaoru Ishikawa
• Genichi Taguchi
The Quality Gurus
Dimensions of Product Quality
Performance—main characteristics of the product
Aesthetics—appearance, feel, smell, taste
Special features—extra characteristics
Conformance—how well a product corresponds to design specifications
Reliability—dependable performance
Dimensions of Product Quality
Durability—ability to perform over time
Perceived quality—indirect evaluation of quality (e.g., reputation)
Serviceability—handling of complaints or repairs
Consistency—quality doesn’t vary
Notice that price is not a dimension of quality
Performance
Main characteristics of the product/service
1.Calling and Messaging for mobile phone
2.Writing for pen
3.Fuel economy for Car
Aesthetics
Appearance, feel, smell, taste etc. sensory characteristics
1. Curved glass of phones
2. Finish of mobile
Special Features
Extra characteristics
1. 64mp camera instead of 48 mp battery
2. 6000 mAh battery instead of 4000 mAh battery
3. Auto climate control
Conformance
How well product/service conforms to customer’s expectations
1.Meeting SAR value of mobile
2.Passing crash test of a car
3.Meeting pollution control standard of a car
Reliability
Consistency of performance
1. No call drop
2. Connectivity of internet ( 24/7 for a week no interruption)
Durability
Useful life of the product/service
1. Time to replace batteries
2 Time to replace brakes
Perceived Quality
Indirect evaluation of quality (e.g. reputation)
1. What kind of reputation created for the brands on outcome on
past history of the products
2. Ranking in the market, for example, GP, Toyota etc
Serviceability & Consistency
Serviceability - Service after sale , Time to resolve complains
Consistency - Quality doesn’t vary
Dimensions of Service Quality
• Convenience—the availability and accessibility of the service
• Reliability—the ability to perform a service dependably,
consistently, and accurately
• Responsiveness—the willingness of service providers to help
customers in unusual situations and to deal with problems
• Time—the speed with which service is delivered
• Assurance—the knowledge exhibited by personnel who come into
contact with a customer and their ability to convey trust and
confidence
Dimensions of Service Quality
• Courtesy—the way customers are treated by employees
who come into contact with them
• Tangibles—the physical appearance of facilities,
equipment, personnel, and communication materials
• Consistency—the ability to provide the same level of good
quality repeatedly
• Expectations—meet (or exceed) customer expectations
Dimensions of Service Quality
Assessing Service Quality
A widely used tool for assessing service quality is SERVQUAL,
an instrument designed to obtain feedback on an
organization’s ability to provide quality service to customers.
It focuses on five of the previously mentioned service
dimensions that influence customers’ perceptions of service
quality: tangibles, reliability, responsiveness, assurance, and
empathy. The results of this service quality audit help
management identify service strengths and weaknesses.
The Determinants
of Quality
1. Design
2. How well the product or service
conforms to the design
3. Ease of use
4. Service after delivery
The Determinants of Quality
Quality of design: Intention of Quality of conformance: The
designers to include or exclude degree to which goods or
features in a product or service. services conform to the intent of
the designers.
Responsibility for Quality
Top management Design Procurement Production/operations
Packaging and
Quality assurance Marketing and sales Customer service
shipping
Benefits of Good Quality
• Business organizations with good or excellent quality typically
benefit in a variety of ways:
• an enhanced reputation for quality,
• the ability to command premium prices,
• an increased market share,
• greater customer loyalty,
• lower liability costs, and
• fewer production or service problems—
• which yields higher productivity, fewer complaints from
customers, lower production costs, and higher profits.
The Consequences of Poor Quality
Loss of business Liability
Productivity Costs
The costs of Quality
Category Description Examples
Appraisal costs Costs of activities designed to ensure Inspection equipment, testing, labs,
quality or uncover defects inspectors,
and the interruption of production to
take samples
Prevention costs Costs related to reducing the potential Quality improvement programs,
for quality problems training,
monitoring, data collection and
analysis,
and design costs
Internal failure costs Costs related to defective products or Rework costs, problem solving, material
services before they are delivered and
to customers product losses, scrap, and downtime
External failure costs Costs related to delivering substandard Returned goods, reworking costs,
products or services to warranty
customers costs, loss of goodwill, liability claims,
and penalties
Total Quality
Management
The term total quality management
(TQM) refers to a quest for quality in
an organization. It is a philosophy that
involves everyone in an organization in
a continual effort to improve quality
and achieve customer satisfaction.
Total Quality Management
There are three key philosophies in this approach.
One is a never-ending push to improve, which is
referred to as continuous improvement;
the second is the involvement of everyone in the
organization;
and the third is a goal of customer satisfaction, which
means meeting or exceeding customer expectations.
The TQM Approach
Find out what the customer wants
Design a product or service that meets or exceeds customer wants
Design processes that facilitates doing the job right the first time
Keep track of results
Extend these concepts throughout the supply chain.
Top management must be involved and committed. Otherwise, TQM will just be another fad
that fails and fades away
Elements of TQM
Continual Competitive Employee Team Decisions
improvement benchmarking empowerment approach based on facts
Knowledge of Supplier Quality at the
Champion Suppliers
tools quality source
Continuous improvement
Philosophy that seeks to make never-
ending improvements to the process of
converting inputs into outputs.
Kaizen: Japanese word for
continuous improvement.
PROBLEM SOLVING AND PROCESS
IMPROVEMENT
Problem solving is one of the basic procedures of TQM. In
order to be successful, problem solving efforts should follow a
standard approach.
An important aspect of problem solving in the TQM approach
is eliminating the cause so that the problem does not recur.
This is why users of the TQM approach often like to think of
problems as “opportunities for improvement.”
The Plan-Do-Study-Act Cycle
The plan-do-study-act
(PDSA) cycle, also referred
to as either the Shewhart
cycle or the Deming wheel,
is the conceptual basis for
problem-solving activities.
Six Sigma
The term Six Sigma has several meanings. Statistically, Six
Sigma means having no more than 3.4 defects per million
opportunities in any process, product, or service. Conceptually,
the term is much broader, referring to a program designed to
reduce the occurrence of defects to achieve lower costs and
improved customer satisfaction.
It is important for Six-Sigma projects to be aligned with
organization strategy.
How good is good enough?
99.9% is already VERY GOOD
But what could happen at a quality level of 99.9% (i.e., 1000 ppm),
in our everyday lives (about 4.6σ)?
• 4000 wrong medical prescriptions each year
• More than 3000 newborns accidentally falling
from the hands of nurses or doctors each year
• Two long or short landings at American airports each day
• 400 letters per hour which never arrive at their destination
Six Sigma
DMAIC (define-measure-analyze-improve-control) is a formalized problem-
solving process of Six Sigma. It is composed of five steps that can be applied to
any process to improve its effectiveness. The steps are:
1. Define: Set the context and objectives for improvement.
2. Measure: Determine the baseline performance and capability of the
process.
3. Analyze: Use data and tools to understand the cause-and-effect
relationships of the process.
4. Improve: Develop the modifications that lead to a validated improvement
in the process.
5. Control: Establish plans and procedures to ensure that improvements are
sustained.
TQM Versus Six Sigma
TQM Six Sigma
A management A philosophy that focuses
philosophy of quality on defect reduction and
improvement cost reduction
Encourages involvement Relies on a selected group
of all employees of highly-trained
employees
Senior management Senior management is held
provides direct support accountable for results
QUALITY TOOLS
Flowcharts Check Histograms Pareto Scatter Control Cause-and-
sheets Analysis Diagrams Charts Effect
Diagrams
Flowcharts
A flowchart is a visual representation of a process. As a problem-
solving tool, a flowchart can help investigators in identifying
possible points in a process where problems occur.
• The diamond shapes in the flowchart represent decision points in
the process, and the
• Rectangular shapes represent procedures.
• The arrows show the direction of “flow” of the steps in the
process.
Flowcharts
Check sheets
A check sheet is a simple tool frequently used for problem
identification. Check sheets provide a format that enables
users to record and organize data in a way that facilitates
collection and analysis. This format might be one of simple
checkmarks. Check sheets are designed on the basis of what
the users are attempting to learn by collecting data.
Check sheets
Histograms
A histogram can be useful in getting a sense of the
distribution of observed values. Among other things, one can
see if the distribution is symmetrical, what the range of values
is, and if there are any unusual values.
Pareto Analysis
Pareto analysis is a technique for focusing attention on the most
important problem areas. The idea is to classify the cases
according to degree of importance and focus on resolving the most
important, leaving the less important. Often referred to as the 80–
20 rule, the Pareto concept states that approximately 80 percent of
the problems come from 20 percent of the items. For instance, 80
percent of machine breakdowns come from 20 percent of the
machines, and 80 percent of the product defects come from 20
percent of the causes of defects.
Pareto Analysis
Scatter Diagrams
A scatter diagram can be useful in
deciding if there is a correlation
between the values of two
variables.
The higher the correlation between
the two variables, the less scatter
in the points; the points will tend
to line up. Conversely, if there were
little or no relationship between
two variables, the points would be
completely scattered.
Control Charts
A control chart can be used to monitor a process to see if the
process output is random. It can help detect the presence of
correctable causes of variation.
Cause-effect Diagram/Fishbone Diagram
A cause-and-effect diagram offers a structured approach to
the search for the possible cause(s) of a problem. It is also
known as a fishbone diagram because of its shape, or an
Ishikawa diagram, after the Japanese professor who
developed the approach to aid workers overwhelmed by the
number of possible sources of problems when problem
solving. This tool helps to organize problem-solving efforts by
identifying categories of factors that might be causing
problems.
Problem: Wrong/Delayed/Damaged Delivery
Problem: Bad Burgers
Problem: Bad Burgers
Thank you
