BBOO15 QUALITY MANAGEMENT

An ISO 9001:2008 Certified Organization

BBOO15QUALITY MANAGEMENT

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Quality- A Look At History

Technological Developments have been at the origin of each of the major world transformations, that we can characterize as an age.

Now we are witnessing the birth of a “systems age”, that is replacing the “machines age” created by the industrial revolution.

JAPANESE REVOLUTION IN QUALITY: Prior to world war -II Japanese products were perceived , throughout the world, to be poor in quality. To help sell their products in International markets, the Japanese took revolutionary ,legendary steps to improve quality.


Introduction

• What is quality?Dictionary has many definitions: “Essential

characteristic,” “Superior,” etc.Some definitions that have gained wide acceptance

in various organizations: “Quality is customer satisfaction,” “Quality is Fitness for Use.”

• The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as:

“The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.”


Introduction• What is a customer?Anyone who is impacted by the product or process

delivered by an organization. External customer: The end user as well as

intermediate processors. Other external customers may not be purchasers but may have some connection with the product.

Internal customer: Other divisions of the company that receive the processed product.

• What is a product?The output of the process carried out by the

organization. It may be goods (e.g. automobiles, missile), software (e.g. a computer code, a report) or service (e.g. banking, insurance)


Introduction• How is customer satisfaction achieved?Two dimensions: Product features and Freedom

from deficiencies.• Product features – Refers to quality of design.Examples in manufacturing industry:

Performance, Reliability, Durability, Ease of use, Esthetics etc.

Examples in service industry: Accuracy, Timeliness, Friendliness and courtesy, Knowledge of server etc.

• Freedom from deficiencies – Refers to quality of conformance.

Higher conformance means fewer complaints and increased customer satisfaction.


DEFINITON OF QUALITY

According to Juran-” Quality is fitness for use.”

According to Crosby-”quality is conformance to requirements or specifications.”

According to Taguchi-”quality is the loss that a product costs to society after being shipped other than any losses by its intrinsic functions”.

According to Feigenabaum-”quality is what the customer says it is.”

In General:-Quality is customer satisfaction and fitness for use.


Certain Terms related to Quality

CUSTOMER:A customer refers to individuals or households that purchase goods and services generated within the economy. The word historically derives from "custom," meaning "habit"; a customer was someone who frequented a particular shop, who made it a habit to purchase goods there, and with whom the shopkeeper had to maintain a relationship to keep his or her "custom," meaning expected purchases in the future.



PRODUCT: A product is the output of any process. Three categories can be:

Goods:- Tangible products like automobiles, soaps, books etc.

Software:- A set of instructions, computer program, a report etc.

Service:-banking, transportation, plant maintenance.



• CUSTOMER SATISFACTION: A business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard.

• In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.


Quality Requirements

• Suitability• Durability• Dependability, reliability• Safe workability• Affordability• ApplicabilityA product can be said to have a good

quality if all the above abilities are balanced while designing and producing it.


CHANGING BUSINESS CONDITIONS

1. COMPETITION2. CHANGING CUSTOMER3. CHANGING PRODUCT MIX4. PRODUCT COMPLEXITY5. HIGHER LEVEL OF CUSTOMER6. EXPECTATION


Why Quality?

Reasons for quality becoming a cardinal priority for most organizations:

• Competition – Today’s market demand high quality products at low cost. Having `high quality’ reputation is not enough! Internal cost of maintaining the reputation should be less.

• Changing customer – The new customer is not only commanding priority based on volume but is more demanding about the “quality system.”

• Changing product mix – The shift from low volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality.


Why Quality?

• Product complexity – As systems have become more complex, the reliability requirements for suppliers of components have become more stringent.

• Higher levels of customer satisfaction – Higher customers expectations are getting spawned by increasing competition.

Relatively simpler approaches to quality viz. product inspection for quality control and incorporation of internal cost of poor quality into the selling price, might not work for today’s complex market environment.


Quality perspectives

Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include:

1. Perfection2. Consistency3. Eliminating waste4. Speed of delivery5. Compliance with policies and procedures6. Doing it right the first time7. Delighting or pleasing customers8. Total customer satisfaction and service



Judgmental perspective• “goodness of a product.”• Shewhart’s transcendental definition of quality –

“absolute and universally recognizable, a mark of uncompromising standards and high achievement.”

• Examples of products attributing to this image: Rolex watches, Lexus cars.

Product-based perspective• “function of a specific, measurable variable and

that differences in quality reflect differences in quantity of some product attributes.”

• Example: Quality and price perceived relationship.



User-based perspective• “fitness for intended use.”• Individuals have different needs and wants, and

hence different quality standards.• Example – Nissan offering ‘dud’ models in US

markets under the brand name Datson which the US customer didn’t prefer.

Value-based perspective• “quality product is the one that is as useful as

competing products and is sold at a lesser price.”• US auto market – Incentives offered by the Big

Three are perceived to be compensation for lower quality.


INSPECTION

Definition of quality, “A product or a service possesses quality if it helps somebody and enjoys a good and sustainable market.”

Improve quality Decrease cost because of less rework, fewer

mistakes.

Productivity improves

Capture the market with better quality and reduced cost.

Stay in business

Long-term competitive strength


QUALITY ASSURANCE

QA for short, refers to planned and systematic processes that provide confidence of a product's or service's effectiveness.

It is the activity of providing the evidence needed to establish confidence, among all concerned, that the quality related activities are being performed effectively.+

BBOO15 QUALITY MANAGEMENT

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