Introduction to QualityQ - Quest for excellenceU - Understanding customer's needs A - Action to achieve customer’s appreciationL - Leadership-determination to be a leaderI - Involving all peopleT - Team spirit to work for a common goal

andY - Yardstick to measure progress

Definitions of QualityQuality is “continuous improvement” (W.Edward Deming)Quality is “fit for use” (Joseph Juran)Quality is “conformance to requirements” (Philip B. Crosby)Quality is “most useful and always satisfactory to the consumer”

(Kaoru Ishikawa)Americans say “value received for dollars spent”Europeans say “quality engineered into their goods”Quality of a product or services is its ability to satisfy the needs

and expectations of the customerQuality is also defined as excellence in the product or service that

fulfills or exceeds the expectations of the customer.The ability of a product or service to meet customer needs.

Definitions of Quality“The totality of features and characteristics of a

product or service that bears on its ability to satisfy stated or implied needs” (definition adopted by The American Society for Quality)

ISO 9000:2000 definition of quality- It is the degree to which a set of inherent characteristics fulfills requirements.

Though quality is an abstract perception,it has a quantitative measure- Q= (P / E ) , where Q=quality, P= performance(as measured by the Mfgr.), and E = expectations( of the customer).

QualityTraditional thinking quality was conformance to

specifications (does the product or service do what it was designed to do?)

Is Rolls-Royace a better quality product than a Toyota Corolla? not necessarily. The Toyota may be a higher quality product relative to what it was designed to do

Late trains and airplanes, leaking car –door seals, increasingly intolerant of poor service, late deliveries

US customers for automobiles showed sharp preference for Japanese cars in the US automobile market (Japanese cars known for reliability and value for money)

New thinking about qualityOld quality is New quality isAbout productsTechnicalFor inspectorsLed by expertsHigh gradeAbout controlLittle “q”

About organizationsStrategicFor every oneLed by managementThe appropriate gradeAbout improvement

(ZERO DEFECT)Big “Q”

5 VIEWS OF QUALITY1.Transcendental view:

According to this view quality is synonymous with “innate excellence".

Claims that quality can not be defined precisely, we learn to recognize quality only through experience.

E.g.Mercedes Benz and Rolls-Royce in automobile industry have achieved this level of excellence.

2.Product-based view: View quality as precise and measurable variable. Differences in quality reflect differences in the quality of

some ingredient or attribute possessed by a product. E.g.High quality ice-cream has better fat content. Limitations are one-to-one measurement of product

attributes and quality is not possible always, when quality is a matter of aesthetics, this approach fails to accommodate differences in tastes

5 VIEWS OF QUALITY3.User –based view:

capacity to satisfy wants of the customers is regarded as having the highest quality.

This view of quality is personal and i.e. perceived quality.

It is highly subjective and focus on “fitness for use”4.Manufacturing-based view:

Conformance to requirementsOnce designs or specifications have been

established, any deviation implies a reduction in quality

E.g. Mc Donalds Aloo Tikki Burger

5 VIEWS OF QUALITY5. Value-based view:

Defines in terms of costs and prices.A quality product is one that provides

performance or conformance at an acceptable price or cost

Dimensions of product quality1. Performance – how well service or product performance

according to customers intended use e.g. the speed of a laser printer. Primary Characteristics,such as brightness

2. Features – special characteristics that appeal to a customer. E.g. power steering, central locking and child lock system of an automobile. Secondary Characteristics,Remote Control

3. Reliability –the likelihood of breakdown, malfunction or the need for repairs. Consistency of Performance over time-fail

4. Serviceability – the speed, cost and convenience of repairs and maintenance. Resolution of problems,ease of repair

5. Durability – the length of time or amount of use before needing to be repaired or replced. Useful life ,include Repair.

Service

Dimensions of product quality6. Appearances – the effect on human

senses-the look, feel, taste, smell or sound.7. Customer Service – the treatment

received by customers before, during and after the sale

8. Safety – how well the product protects users before, during and after use.

Dimensions of service quality1. Reliability- consistency of performer and

dependability2. Responsiveness- willingness or readiness to provide

service, timeliness. Human relations with Customers.3. Competence- possession of skills and knowledge

required to perform the service4. Access- approachability and ease of contact5. Courtesy- politeness, respect, consideration for

property, clean and neat appearance6. Communication- educating and informing

customers in language they can understand, listening to customers

Dimensions of service quality7. Credibility- trustworthiness, belief, having

customers best interest at heart8. Understanding- making an effort to

understand the customers needs, learning the specific requirements, providing individualized attention, recognizing the regular customers

9. Security- freedom from danger, risk or doubt

10. Tangibles- the physical evidence of service(facilities, tools and equipment)

Benefits of quality to a firm1. Gives a positive company image2. Improves competitive ability both nationally

and internationally3. Increases market share, which translates into

improved profits4. Overall, it reduces costs, which also translates

into improved profits5. Reduces or eliminates product liability

problems, avoiding unnecessary costs6. Creates an atmosphere for high employee

morale, which improves productivity

Benefits of QualityHigher customer satisfactionReliable products/servicesBetter efficiency of operationsMore productivity & profitBetter morale of work forceLess wastage costsLess Inspection costsImproved processMore market shareSpread of happiness & prosperityBetter quality of life for all.

Effects of poor QualityLow customer satisfactionLow productivity, sales & profitLow morale of workforceMore re-work, material & labour costsHigh inspection costsDelay in shippingHigh repair costsHigher inventory costsGreater waste of material

Types of qualityIndifferent quality- quality that customer does not

notice or appreciate. e.g. a nice dinner plate or finger bowl might get unnoticed or probably not seem very important

Expected quality- quality that customer expects and demands. Peoples expect cars to be safe and reliable, hotel rooms to be clean and quite etc.

One-dimensional quality- quality that customer expects, but that does not necessarily results in lots of order or displeased customers, when lacking. E.g. a rude and slow restaurant server my not cause customers to leave, though they might leave smaller tips or no tips. The restaurant’s slow service is a one-dimensional quality

Types of qualityExciting quality- quality that exceeds the customers

expectations, attracting favourable attention of customers. It is the quality that pleasantly surprises customers. E.g. creating an order winner, quality experienced by owners of Mercedes Benz and BMW cars while driving these cars

Perceived quality- an assessment of quality based on the reputation of the firm e.g. quality service provide by Taj hotels in India.

Customer-driven quality- quality meeting or exceeding customers expectations. E.g. a poor design for a computerized hotel reservation systems makes it difficult for the reservation clerks to do their job and consequently effects customers satisfaction

The quality profileThe Coca-Cola Company

Real Life

TQM has being implemented in TVS Group.

Boeing Aircraft

Reliance

Tata L & T HMT

Ford Motorola Coca cola TOYOTA (Poka-Yoke means mistake proofing in

Japanese, JIT)

3 levels of quality An organization committed to quality must examine quality at three

levels: 1. Organizational level: concerns centre on meeting external

customer requirements. An organization must seek customer input on a regular basis. questions for the quality at the organization level.

Which products and services meet your expectations? Which do not? What products or services do you need that you are not

receiving? Are you receiving products or services that you do not need?

Customer driven performance standards should be used at the basis for goal setting, problem solving, performance appraisal, incentive compensation, non financial rewards and resources allocation.

3 levels of quality2. Process level: organizational units are classified as

functions or departments, such as marketing, design, product development, operations, finance etc. since most have the most significant effect on the organization’s customer driven performance standards?

Who are my internal processes are cross functional, the managers of particular organizational units may try to optimize the activities under their control. Questions like

What products or services are most important to the external customer?

What processes produce those products and services? What are the key inputs to the process? Which processes customers and what are their needs?

3 levels of quality3. Performer/job level: (sometimes called the job level or the

task design level), standards for output must be based on quality and customer service requirements that originate at the organizational and process level. These standards include requirements for accuracy, completeness, innovation, timeliness and cost. Questions such as

What is required by the customer, both internal and external?

How can the requirements be measured? What is the specific standard for each measure?

NOTE: Viewing an organization from this perspective clarifies the roles and responsibilities of all employees in pursuit of quality. Top managers must focus attention at the organizational level, middle manager and supervisors at the process level and employees must understand quality at the performer level all.

Determinants of qualitySeveral activities or accomplishments are necessary to

achieve quality: they are Quality of design:

is determined before the product is produced. After determining who its customers are, a company must

determine what its customers want from its products and services. Then products and services are designed to exhibit the attributes necessary to meet its customers’ expectations.

is determined by a cross functional product design team including members from marketing, engineering, operations and other functions. Quality of design is determined by market research, design concepts and specifications. Market research is aimed at assessing customers needs. A particular design concept is designed to meet the customers needs. The design concept than results in a set of specifications for the product.

Determinants of quality Quality capability of production processes:

production process must be designed and built that have the capability of producing products with the attributes wanted by customers.

Quality of conformance: means producing a product to meet the specifications. Production facilities and processes are used to produce products and services that meet design and performance, aimed at quality expectations of customers.

Quality of customer service: all contacts between customers and companies must be managed so that customers perceive that they have been treated fairly and courteously with their needs, attended to promptly and with care and concern.

Determinants of qualityOrganization quality culture: the entire

organization must become energized to doing what is necessary to design, products and services that meet customers’ expectations. Mechanisms must be place in order to continuously improve every fact of the organization towards the objective of building ever increasing levels of customer satisfaction.

Quality and competitive advantageSix characteristics of a strong competitive advantage

identified by S.C.Wheelwright are:It is driven by customer needs and wants. A company

provides value to its customers that competitors do not.It makes a significant contribution to the success of the

business.It matches the organization’s unique resources with

opportunities in the environment.It is durable and lasting and difficult for the competitor

to copyIt provides a basis for further improvement.It provides direction and motivation to the entire

organization

Quality and profitabilityImproved quality of design

High perceived value

Increased market share

Higher prices

Increased revenues

Improved quality of conformance

Lower manufacturing and service costs

Higher profitability

Quality controlQuality control refers to all those functions or activities

that must be performed to fulfill the company’s quality objectives.

It involves the establishment of quality standards, the use of proper materials, the selection of appropriate manufacturing process and the necessary tooling to make the product, performance of the necessary manufacturing operations and the inspection of the product to check on conformance with the specifications.

Quality control denotes all those activities which are directed to maintaining and improving quality. Quality control involvesSetting of quality targetsAppraisal of conformanceTaking corrective action where any deviation is noticedPlanning for improvement in quality

Quality assuranceQuality assurance refers to any action directed towards

providing consumers with products of appropriate quality Is intended to include all of the activities that are

performed to ensure that the product performs to the customer’s satisfaction and many departments are involved in this effort. Some activities like Reliability engineering-to ensure that design has adequate

useful life Value engineering-to ensure that the product will perform

the necessary functions at the minimum cost Product screening-to see that output sold is of sufficient

quality Service assurance-to see that customer is adequately

trained to use and maintain the product and the services parts and manuals are made available

Quality feedback-to provide corrective action when field use indicates inadequate quality

The concept of total qualityTotal quality is a people focused management

system that aims at continued increase in customer satisfaction at continually lower real cost.

TQ is a “total system approach” and an integral part of high-level strategy., it works horizontally across functions and department, involves all employees, top to bottom and extends backwards and forward to include the supply chain and customer chain

TQ stresses learning and adaptation to continual change as keys to organizational success.

Total quality According to P&G:”total quality is the unyielding

and continually improving effort by everyone in an organization to understand, meet and exceed the expectations of customer’s.”

A.V.Feigenbaum coined the term TOTAL QUALITY CONTROL and describes 9M’s:”markets, money, management, men and women, motivation, materials machines and mechanisation, modern information methods and mounting product requirements”

Japanese adopted Feigenbaum concept and renamed TOTAL QUALITY CONTROL as “company wide quality control” i.e. CWQC.

Total quality managementIs a philosophy that involves everyone in an organization

in a continual effort to improve quality and achieve customer satisfaction. 2 philosophies are continuous improvement(Kaizen-japanese term) and customer satisfaction

7 principles of TQM are:Strive for quality in all thingsThe customer is the creation of quality Improve the process or system by which products are

producedQuality improvement is continuous, never ending activityWorker involvement is essentialGround decisions and actions in knowledgeEncourage team work and cooperation

TQM six basic ConceptsManagement commitment to TQM

principles and methods & long term Quality plans for the Organisation

Focus on customers – internal & externalQuality at all levels of the work force.Continuous improvement of the

production/business process.Treating suppliers as partnersEstablish performance measures for the

processes.

What is TQM?

Constant drive for continuous improvement and learning.

Concern for employee

involvement and

development

Management by Fact

Result Focus

Passion to deliver

customer value / excellence

Organisation response

ability

Actions not just words

(implementation)

Process Managemen

t

Partnership perspective (internal / external)

Learning

LEARNING AND TQM

Process Improvement

Quality Improvement

Customer Satisfactio

n

Shareholder Satisfaction

Employee Satisfactio

n

BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

QUALITY CONTROL VS TQMQUALITY CONTROL TQM Inspection after the factFocus on consequences of

poor qualityCustomer is purchaserSome no. of defects is

normalResponsibility for quality

control is assigned to individuals or departments

Improving quality increases cost

Design quality into the product and production system

Focus on identifying and eliminating causes of poor quality

Customer is userGoal is zero defectQuality is the responsibility

of everyone Improving quality typically

pays for itself

Quality is a Journey, not a Destination

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