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Quality : What is it ?
PP Sengupta
Lecture 1
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Contact me at
Email : [email protected]
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My profile :
Chief General Manager ( Operations) , Coal India Ltdat Kolkata for 6 years, 36 years in SCM andoperations .
Worked in World Bank projects as procurement lead
Black Belt certification , six sigma Qualified lead assessor , ISO 9000
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DEFINITIONS OF QUALITY
A degree of excellence [the Concise OxfordDictionary]
The totality of features and characteristics that bearupon the ability of a product or service to satisfy agiven need [British Standard 4778]
The total composite product and service
characteristics of marketing, engineering,manufacture and maintenance through which theproduct and service will meet the expectations ofthe customer [Dr Armand V Feigenbaum]
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PERCEPTIONS OF QUALITY
JAPANSONY, TOYOTA
GERMANYBMW, MERCEDES
SWITZERLANDWATCHES USAMCDONALDS
UKTESCO
TAIWANACER
SINGAPORESIA
INDIABASMATI RICE ,DARJEELING TEA
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Customer's expressed and implied requirementsare met fully
the totality of features and characteristics of aproduct or service that bears on its ability to meeta stated or implied need [ISO, 1994],
fitness for use [Dr. Joseph M Juran, 1988],
conformance to requirement [Philips B Crosby,1979].
DEFINITIONS OF QUALITY
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Definitions of Quality
Fitness for use (Juran)
Conformance to requirements (Crosby)
Degree of excellence Performance exceeding expectations (Q =
P/E)
The totality of features and characteristicsof a product or service that bear on its
ability to satisfy stated or implied needs
ANSI/ASQ
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Defining Quality
ASQ (American Society for Quality):
quality is a subjective term for which each
person has his or her own definition
www.asq.org
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Defining Quality
In technical usage, quality can have two
meanings:
the characteristics of a product or service that
bear on its ability to satisfy stated or implied
needs, and
a product or service free of deficiencies
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Defining Quality - Gurus
Deming - non-faulty systems
Out of the Crisis
Juran - fitness for use
Quality Control Handbook
Crosby - conformance to requirements
Quality is Free
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Garvins Definitions of Quality
Transcendent Definition Quality is something that is intuitively understood but
nearly impossible to communicate such as beauty or
love.
Product-Based Definition Quality is found in the components and attributes of a
product.
User-Based Definition If the customer is satisfied, the product has goodquality.
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Stouts View
Quality = PerformanceExpectation
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Extended definitions
Quality meaning getting everyone to do what
they have agreed to do and to do it right the
first time is the skeletal structure of an
organization, finance is the nourishment, andrelationships are the soul
Crosby
extra-ordinary customer satisfactionor
delighting the customers by extra little things
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Customer-based definitions
Edwards [1968] Quality consists of the capacity to
satisfy wants...
Gilmore [1974] Quality is the degree to which a
specific product satisfies the wants of a specificconsumer.
Kuehn & Day [1962] In the final analysis of the
marketplace, the quality of a product depends on
how well it fits patterns of consumer preferences.
Juran [1988] Quality is fitness for use.
Oakland [1989] The core of a total quality
approach is to identify and meet the requirements
of both internal and external customers.
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Value-based definitions
Broh [1982] Quality is the degree of excellence at an
acceptable price and the control of variability at an
acceptable cost.
Feigenbaum [1983] Quality is the degree to which aspecific product conforms to a design or specification
Newell & Dale [1991] Quality must be achieved in five
basic areas: people, equipment, methods, materials and
the environment to ensure customers need are met.
Kanji [1990] Quality is to satisfy customers requirements
continually; TQM is to achieve quality at low cost by
involving everyones daily commitment.
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Defining Quality- Different Views
Customers view (more subjective) the quality of the design (look, feel, function)
product does whats intended and lasts
Producers view conformance to requirements (Crosby) costs of quality (prevention, scrap, warranty)
increasing conformance raises profits
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Meaning of Quality:
Producers Perspective
Quality of Conformance
Making sure a product or service is produced
according to design if new tires do not conform to specifications, they
wobble
if a hotel room is not clean when a guest checks in,
the hotel is not functioning according tospecifications of its design
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Meaning of Quality:
Consumers Perspective Fitness for use
how well product or
service does what it is
supposed to
Quality of design designing quality
characteristics into a
product or service
A Mercedes and a Ford are
equally fit for use, but withdifferent design dimensions
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Meaning of Quality:
A Final Perspective
Consumers and producers
perspectives depend on each other
Consumers perspective: PRICE
Producers perspective: COST
Consumers view must dominate
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Fitness for
Consumer Use
Producers Perspective Consumers Perspective
Quality of Conformance
Conformance to
specifications Cost
Quality of Design
Quality characteristics
Price
MarketingProduction
Meaning of Quality
Meaning of Quality
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Dimensions of Quality - Product
1. Perfo rmance
Basic operating characteristics
2. Featu res
Extra items added to basic features
3. Reliab il i ty
Probability product will operate over time
4. Con fo rman ce Meeting pre-established standards
5. Du rab il i ty
Life span before replacement
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Dimensions of Quality - Product
6. Serviceab il i t y
Ease of getting repairs, speed & competence of
repairs
7. Aes thetic s
Look, feel, sound, smell or taste
8. Safety
Freedom from injury or harm9. Other per cep tions
Subjective perceptions based on brand name,
advertising, etc
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1. Time & Timeliness Customer waiting time, completed on time
2. Completeness Customer gets all they asked for
3. Courtesy Treatment by employees
4. Consistency
Same level of service for all customers5. Accessibility & Convenience
Ease of obtaining service6. Accuracy
Performed right every time
7. Responsiveness Reactions to unusual situations
Dimensions of Quality Service
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Dimensions of Quality:
Manufactured Products Performance
basic operating characteristics of a product; howwell a car is handled or its gas mileage
Features extra items added to basic features, such as a
stereo CD or a leather interior in a car
Reliability probability that a product will operate properly
within an expected time frame; that is, a TV willwork without repair for about seven years
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Conformance degree to which a product meets preestablished
standards Durability
how long product lasts before replacement
Serviceability
ease of getting repairs, speed of repairs, courtesyand competence of repair person
Dimensions of Quality:
Manufactured Products (cont.)
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Aesthetics how a product looks, feels, sounds, smells,
or tastes
Safety
assurance that customer will not sufferinjury or harm from a product; an especiallyimportant consideration for automobiles
Perceptions subjective perceptions based on brand
name, advertising, and the like
Dimensions of Quality:
Manufactured Products (cont.)
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Dimensions of Quality:
Service
Time and Timeliness
How long must a customer wait for service, and
is it completed on time?
Is an overnight package delivered overnight?
Completeness:
Is everything customer asked for provided?
Is a mail order from a catalogue companycomplete when delivered?
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Dimensions of Quality:
Service (cont.) Courtesy:
How are customers treated by employees?
Are phone operators nice and are their voicespleasant?
Consistency Is the same level of service provided to each
customer each time?
Is your newspaper delivered on time everymorning?
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Accessibility and convenience How easy is it to obtain service?
Does a service representative answer you calls quickly?
Accuracy
Is the service performed right every time? Is your bank or credit card statement correct every month?
Responsiveness How well does the company react to unusual situations?
How well is a telephone operator able to respond to a customers
questions?
Dimensions of Quality:
Service (cont.)
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Service Quality Dimensions
Assurance
The knowledge and courtesy of employees and their
ability to inspire trust and confidence.
Empathy Caring, individual attention paid to customers by the
service firm.
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Quality Dimensions (Garvin, 1998)
Quality dimensions are independent
focus on a few dimensions (e.g. Japanese cars reliability,conformance, and aesthetics)
Dimension MeaningPerformance Primary product characteristics
Features Secondary characteristics added features
Conformance Meet specifications or industry standards,
workmanship
Reliability Consistency of performance overtime
Durability Useful life
Service Resolution of problems and complaints, ease of repair
Response Human-to-human interface
Aesthetics Sensory characteristics
Reputation Past performance, ranking first
Recognizing Different
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Recognizing Different
Perspectives on Quality
Different Perspectives on Quality There are many different definitions and
dimensions of quality.
For the present, you should view quality as a
measure of goodness that is inherent to a productor service.
Employees working for the same firm often viewquality differently as illustrated in the next slide.
Perceptions on Quality Can Vary In order to communicate effectively about quality,
managers need to recognize that differences inperceptions of quality exist.
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Historical Review
Middle age Craft Guilds (training) Industrial Revolution Specialization of labor
Decline in workmanship, product still notcomplicated still 100% inspection
1924 Walter Shewhart developed statisticalchart (Book: Economic Control of Quality ofManufactured Product)
Dodge & Romig developed acceptance
sampling as a substitute for 100% inspection 1942 - US Managers failed to recognize value
of SQC
1946 ASQC (now ASQ) was formed
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Historical Review
1950 William Edwards Deming lectures
CEOs in Japan on SQC
1954 Joseph Juran went to Japan
Managements responsibility for quality
1960 Quality Control Circle (QCC)
formed in Japan quality improvement
1980s US Quality Movement, TQMConcepts published
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Historical Review
Late 1980s automotive industry
emphasize SPC, suppliers required to use
Malcolm Balridge Award established (to
measure TQM implementation) Taguchi
method, Design of Experiments (DOE)
1990s ISO 9000 series became Global
QA std., QS 9000 introduced by automotive
industry customer satisfaction ISO 14000 2000 New ISO 9000:2000 version, Six
Sigma Program introduced information
technology
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Shift to Quality
Pre-World War II 1945 1990s
Isolated
Economies
Focus on
quantity
Period ofchange from
quantity to
quality
Global
Economy
Focus on
quality
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The journey
Inspection
SQC
DOE
Taguchi
Quality
Management
Systems
SixSigma
1930 1950 1970 1980 1990 2000
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SPC
Data
Process
A
B
C
N1
N2
LSL USL
Y
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Quality Gurus
Walter Shewart In 1920s, developed control charts
Introduced the term quality assurance
W. Edwards Deming Developed courses during World War II to teach
statistical quality-control techniques to engineers andexecutives of companies that were military suppliers
After the war, began teaching statistical quality controlto Japanese companies
Joseph M. Juran Followed Deming to Japan in 1954
Focused on strategic quality planning
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Armand V. Feigenbaum In 1951, introduced concepts of total quality control and
continuous quality improvement
Philip Crosby In 1979, emphasized that costs of poor quality far
outweigh the cost of preventing poor quality In 1984, defined absolutes of quality management
conformance to requirements, prevention, and zerodefects
Kaoru Ishikawa Promoted use of quality circles
Developed fishbone diagram
Emphasized importance of internal customer
Quality Gurus (cont.)
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Armand Feigenbaum -
author: Total Quality Control(1961) quality is a customer determination based
on the customers actual experience with the
product or service, measured against his or
her requirements - stated or unstated,conscious or merely sensed, technically
operational or entirely subjective - and
always representing a moving target in a
competitive market.
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W. Edwards Deming
Focus on bringing about improvements in productand service quality by reducing uncertainty andvariability in goods and services design and
associated processes (the beginning of his ideasin 1920s and 1930s).
Higher quality leads to higher productivity andlower costs.
14 Points management philosophy.
Deming Cycle Plan, Do, Study, and Act.
Influential Leaders in Quality Management
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W. Edwards Deming 14 Points
Point 1: Create a Vision and DemonstrateCommitment
Point 2: Learn the Philosophy
Point 3: Understand Inspection
Point 4: Stop Making Decisions Purely onthe Basis of Cost
Point 5: Improve Constantly and Forever
Point 6: Institute Training
Point 7: Institute Leadership
Influential Leaders in Quality Management
Influential Leaders in Quality Management
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W. Edwards Deming 14 Points
Point 8: Drive Out Fear
Point 9: Optimize the Efforts of Teams
Point 10: Eliminate Exhortations
Point 11: Eliminate Numerical Quotas
Point 12: Remove Barriers to Pride in Work
Point 13: Encourage Education and Self-Improvement
Point 14: Take Action
Influential Leaders in Quality Management
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Demings 14 Points
1. Create cons tancy o f pu rpose
2. Adopt ph ilo sophy of p reven tion
3. Cease mass inspec tion
4. Selec t a few supp l iers based on
qual i ty
5. Cons tan tly improve sys tem and
workers
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6. Ins ti tu te worker train ing
7. Ins ti l l leadersh ip amongsuperv isors
8. Elim inate fear among emp loyees
9. Elim inate bar riers betweendepartments
10. Eliminate slogans
Demings 14 Points (cont.)
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11. Remove num er ical quo tas
12. Enhance worker pr ide13. Ins t i tu te vigo rous train ing and
educat ion prog rams
14. Develop a comm itment f rom topmanagement to implement
above 13 poin ts
Demings 14 Points (cont.)
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Deming Wheel: PDCA
Cycle1. PlanIdentify
problem and
develop planfor
improvement.
2. DoImplement
plan on a test
basis.
3. Study/CheckAssess plan; is it
working?
4. ActInstitutionalize
improvement;
continuecycle.
The Deming Cycle
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Plan: study current situation Do: implement plan on trial basis
Study: determine if trial is working correctly
Act: standardize improvements
The Deming Cycle
Why Does It Matter That
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Why Does It Matter That
Difference Definitions of
Quality Exist?
Understanding that definitions and dimensions of
quality exist allows measures to be taken to provide abetter basis for communication and planning in a
firm.
Recognizing Different
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Recognizing Different
Perspectives on Quality
Different Perspectives on Quality There are many different definitions and
dimensions of quality.
For the present, you should view quality as a
measure of goodness that is inherent to a productor service.
Employees working for the same firm often viewquality differently as illustrated in the next slide.
Perceptions on Quality Can Vary In order to communicate effectively about quality,
managers need to recognize that differences inperceptions of quality exist.
Diff i F ti l
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Differing Functional
Perspectives on Quality Engineering Perspective
Operations Perspective
Strategic Management Perspective
Marketing Perspective
Financial Perspective
Human Resources Perspective
Engineering Perspective on
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Engineering Perspective onQuality
Nature of Engineering Perspective
Engineers are interested in applying mathematical
problem solving skills and models to the problems of
business and industry.
Two of the major emphases in engineering
Product design
Process design
Engineering Perspective on
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Engineering Perspective onQuality
Product Design Engineering Involves all of those activities associated with
developing a product from concept development tofinal design and implementation.
Product design life cycle Key to quality as quality is assured at the design
stage.
Concurrent engineering
The simultaneous performance of product andprocess design activities.
Has resulted in improved quality and faster speed tomarket for new products.
Engineering Perspective on
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Engineering Perspective onQuality
Related Concepts Life Testing
Is a facet of reliability engineering that concerns itself withdetermining whether a product will fail under controlledconditions during a specified life.
Redundancy Is applied so that a back up system can take over for the
failed primary system.
Statistical Process Control
Is concerned with monitoring process capabilityand process stability.
O ti P ti
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Operations Perspective on
Quality Nature of Operations Perspective
The operations management view of quality is rootedin the engineering approach.
Like engineers, operations managers are very
concerned about product and process design. However, rather than focusing on only the technical
aspects of these activities, operations concentrates ofthe management of these activities.
Operations management has developed into anintegrative field, combining concepts fromengineering, operations research, organizationaltheory, organizational behavior, and strategicmanagement.
Operations Perspective on
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Operations Perspective onQuality
Systems View
Operations management utilizes the systems view to
address quality problems that underlies modern
quality management thinking.
The systems view involves the understanding that
product quality is the result of the interactions of
several variables such as machines, labor,
procedures, planning, and management.
Operations Perspective on
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Operations Perspective onQuality
The Systems View of Operation Management
Planning Organizing
Controlling
Inputs ConversionProcess
Outputs Customers
Feedback
Figure 1.3
O ti P ti
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Operations Perspective on
Quality Operations/Marketing Interface
In recent years, a major advance in operationsmanagement has been the improved understandingof the operations/marketing interface.
The interface has resulted in an increased focus onthe customer.
This externalized view is important as operationsmanagers in firms still tend to be focused heavily onmeeting production schedules, sometimes
at the expense of good quality.
Operations Perspective on
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Operations Perspective onQuality
Strategic View of Operations Management
Among the recent advances in operations
management has been a migration towards a more
strategic view.
Ferdows and Demeyer linked this strategic view of
operations management to quality management by
proposing the Sand Cone Model in which quality was
identified as the base on which lasting improvement
in other competitive dimensions were established.
Operations Perspective on
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Operations Perspective onQuality
An Operations Management Competence ModelThe Sand Cone Model
Quality
Dependability
Cost Efficiency
Speed
Figure 1.4
Strategic Management
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Strategic Management
Perspective on Quality Nature of the Strategic Management Perspective
Strategy refers to the planning processes used by anorganization to achieve a set of long term goals.
The planned course of action must be cohesive and
coherent in terms of goals, policies, plans, andsequencing to achieve quality improvement.
Initially, quality-related strategic planning was treatedas if it were a separate exercise from firm-levelstrategic planning.
However, quality management, to become pervasive ina firm, needed to be included in all of the firmsbusiness practices, including strategic planning.
Strategic Management
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Strategic Management
Perspective on QualityA Generic Strategic Planning Process
Firm Mission
and Goals
Strategic
Options
Conflict Politics
and Change
Strategic Alignment
Between
Structure and Goals
Org. Reward
Systems
Organizational
Design
Internal
Analysis
External
Analysis
Business Level
Strategy
Corporate Level
Strategy
Operational
Subplans
Figure 1.5
Strategic Management
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Strategic Management
Perspective on Quality
Goal of Strategic Quality Planning
The ultimate goal of strategic quality planning is to
aid an organization to achieve sustainable
competitive advantage.
Research shows that quality is still the major
concern of CEOs.
Marketing Perspective on
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Marketing Perspective on
Quality
Nature of Marketing Perspective
Marketing efforts are often focused on managing
perceptions of quality.
Relationship Management Directing attention toward satisfying and delivering
value to the customer.
Tools for Influencing Customer Perceptions of
Quality Price and advertising are the primary tools for
influencing customer perceptions of quality, but
are imperfect mechanisms.
Marketing Perspective on
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Organization
Marketing Perspective on
Quality
A Marketing System
Intermediary
Customer
PaymentOffering
Offering
Offering
Payment
Payment
Marketing Perspective on
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g pQuality
Focus on Service
Another important contribution of the marketing
perspective has been the focus on service.
Customer service surveys are important tools forassessing the multiple dimensions of quality.
Financial Perspective on
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Financial Perspective on
Quality
Nature of the Financial Perspective
One of the most commonly asked questions about
quality management is will it pay us financial
benefits?
The financial perspective relies more on
quantified, measurable, results-oriented thinking.
W. Edwards Deming made the first theoretical
attempt to link quality improvements to financial
results through the Deming Value Chain.
Financial Perspective on
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Financial Perspective on
Quality
The Deming Value Chain
Improve
Quality
Productivity
Improves
Capturethe
Market
Provide Jobs
and More JobsStay in
Business
Cost decrease because of less
rework, fewer mistakes, fewer
delays, snags; better use ofmachine-time and materials
Figure 1.8
Financial Perspective on
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Financial Perspective on
Quality Law of Diminishing Marginal Returns
According to this law, there is a point at which
investments in quality improvement will become
uneconomical.
According to the quadratic economic quality level
model, higher levels of quality will result in higher
expenditures.
This view is at odds with the ethic of continual
improvement.
Cost of Quality
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Cost of Quality
Basic Economic Quality Level Model
Quality
Cost
Costs of Improving
Quality
Losses due to poor
quality
Total Quality Costs = Sum of Losses and Gains
Minimum
Cost
Optimum Quality Level
Figure 1.9
Human Resources Perspective
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pon Quality
Nature of Human Resources Perspective Understanding the human resources perspective
on quality is essential as it is impossible to
implement quality without the commitment and
action of employees.
Related Concepts
Employee Empowerment
Organizational Design
Job Analysis
360-degree evaluation
Total Quality Human Resources Management
Human Resource Perspective
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Human Resource Perspective
on Quality
Employee Empowerment Empowering employees involves moving decision
making to the lowest level in the organization.
Organizational Design
Human resources managers are involved in manyaspects of organizational design, such as the designof reward systems, pay systems, organizationalstructure, compensation, training mechanisms, andemployee grievance arbitration.
Job Analysis Involves collecting detailed information about a
particular job.
Human Resource Perspective
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Human Resource Perspective
on Quality 360-Degree Evaluation
A performance measurement system in which an
employees peers, supervisors, and subordinates
are involved in evaluating the workers
performance.
Total Quality Human Resources Management
(TQHRM)
TQHRM involves many of the concepts of quality
management to provide a more supportive and
empowered environment.
The Three Spheres of Quality
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e ee Sp e es o Qua ty
Quality Control Includes phases of analysis, relation, and
generalization.
Activities relating to quality control include:
Monitoring process capability and stability
Measuring process performance
Reducing process variability
Optimizing processes to nominal measures Performing acceptance sampling
Developing and maintaining control charts
The Three Spheres of Quality
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p Q y
Quality Assurance Refers to activities associated with guaranteeing
the quality of a product or service.
Quality assurance activities include tasks
such as: Failure mode and effects analysis
Concurrent engineering
Experimental design
Process improvements Design team formation and management Off-line experimentation
Reliability/durability product testing
The Three Spheres of Quality
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p Q y
Quality Management The management processes that overarch and tie
together the control and assurance activities.
Quality management activities:
Planning for quality improvement.
Creating a quality organizational culture.
Providing leadership and support.
Providing training and retraining.
Designing an organizational system that reinforces
quality ideals.
Providing employee recognition.
Facilitating organizational communication.
Other Perspectives on Quality
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p Q y
The Value-Added Perspective on Quality A customer-based perspective on quality that is
utilized by services, manufacturing, and public
sector organizations.
Involves a subjective assessment of the efficacy ofevery step of the process for the customer.
Other Perspectives on Quality
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p y
Cultural Perspectives on Quality International marketers have long noted that there
are differences in tastes and preferences between
cultures and nations.
It is not so obvious that approaches to qualityimprovement may differ according to culture.
Contingency Approach to
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g y ppQuality
Contingency Theory Contingency theory presupposes that there is no
theory or method for operating a business that canbe applied in all situations.
As a result, a coherent quality strategy will need toaddress key environmental variables.
Contingency Approach Definitions and dimensions of quality applied
within an organization will, and should vary.
Dimensions of quality will depend on theenvironment in which a company operates.
Provides flexibility to managers in pursuing quality.
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Understanding Quality
Principles of Total Quality
1. A focus on customers and stakeholders,
2. A process focus supported by continuousimprovement and learning, and
3. Participation and teamwork by everyonein the organization.
Th Q lit Hi h
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The Quality Hierarchy
Inspection
Quality Control
Quality Assurance
Total QualityManagement
Incorporates QA/QC activities
into company-wide systemaimed
at satisfying the customer
Actions to insure products or
services conform to companyrequirements
Operational techniques to make
inspection more efficient and to
reduce the costs of quality.
Inspect products
Prevention
Detection
SPC
SQC
Q lit C t l
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Quality ControlQC the use techniques and activities toachieve, sustain and improve quality ofproducts or service. It integrates these relatedtechniques and activities:
1. Specifications of what is needed
2. Design of the products/service to meet specs.3. Production or installation to meet full intent of
specs.
4. Inspection to determine conformance to
specifications5. Review usage to provide information for
revision of specs. if needed
The aim should be towards quality
improvement
Q lit A
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Quality Assurance
All those planned or systematic actionsnecessary to provide adequate
confidence that a product or service will
satisfy given requirements for quality Need systems and procedures to ensure
consistency in methods for producing
products
Total Quality Management
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Total Quality Management
(TQM) philosophy and a set of guiding principles
foundation of continuously improving
organization
philosophy to achieve excellence process in set of interrelated activities using
specific inputs to produce/deliver specific
outputs
process = business and production
customers refers to external and internal
suppliers also both external and internal
customer-su lier chains
R ibilit f Q lit
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Responsibility for Quality
Marketing
Design
Engineering
Procurement
(Purchasing)
Product Service
Packing &
Storage
Inspection
& Test
Production Process
Design
Customer
Quality
Product /
Service
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Responsibility for Quality
Quality not responsibility of any one personor departmenteveryones job (operatorto CEO)
Start from marketing determine customer
requirements until product received bysatisfied customer
Delegated to areas with authority to makequality decisions
Areas responsible (figure next slide)
T t l Q lit M t
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Total Quality Management
Commitment to quality throughout organization
Principles of TQM
Customer-oriented Leadership
Strategic planning
Employee responsibility
Continuous improvement
Cooperation
Statistical methods
Training and education
TQM d
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TQM and
Partnering a relationship between a company and its
supplier based on mutual qualitystandards
Customers system must measure customer
satisfaction
Information Technology infrastructure of hardware, networks, and
software necessary to support a qualityprogram
Quality Improvement
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Q y p
and Role of Employees
Participative
problem solving employees involved in
quality management
every employee has
undergone extensive
training to provide quality
service to Disneys guests
Quality Circle
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PresentationImplementation
Monitoring
SolutionProblem results
Problem
AnalysisCause and effect
Data collection
and analysis
Problem
IdentificationList alternatives
ConsensusBrainstorming
TrainingGroup processes
Data collection
Problem analysis
Organization8-10 membersSame area
Supervisor/moderator
Quality Circle
Quality Management
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Six Sigma
Defectsare any mistakes or errors that arepassed on to the customer(many people also usethe term nonconformance).
Defects per unit (DPU)=Number of defects discovered
Number of units processed
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Six Sigma
The Six Sigma concept characterizesquality performance by defects permillion opportunities (dpmo),
computed as DPU 1,000,000opportunities for error (or, as is oftenused in services, errors per million
opportunitiesepmo).
Quality Management
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Six Sigma
A DPU measure might be lost bags per customer.However, customers may have different numbers ofbags; thus the number of opportunities for error isthe average number of bags per customer.
If the average number of bags per customer is 1.6,and the airline recorded 3 lost bags for 8,000passengers in one month (note: 12,800 opportunities
for error in one month), then
epmo = (3/8,000 DPU) 1,000,000/1.6 = 234.375
Quality Management
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Six Sigmas DMAIC Process
1. Define: identify customers and their priorities;identify and define a suitable project; identify CTQs(critical to quality characteristics).
2. Measure: determine how to measure the processand how it is performing; identify key internalprocesses that influence CTQs and measurecurrent defects.
3. Analyze: determine likely causes of defects andunderstand why defects are generated byidentifying key variables that cause processvariation.
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Six Sigmas DMAIC Process
4. Improve: identify means to remove causesof defects; confirm key variables; modify theprocess to stay within acceptable range.
5. Control: determine how to maintainimprovements; put tools in place to ensurethat key variables remain within acceptableranges under the modified process.
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Cost of Quality Measurements
Thecost of qualityrefers to the costs associatedwith avoiding poor quality or those incurred as aresult of poor quality. Four major categories are:
Prevention costsare those expended to keepnonconforming goods and services from beingmade and reaching the customer.
Appraisal costsare those expended onascertaining quality levels through measurementand analysis of data to detect and correctproblems.
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Cost of Quality Measurements
Internal-failure costsarecosts incurred asa result of unsatisfactory quality that is foundbefore delivery of good or service to the
customer. External-failure costsare incurred after
poor-quality goods or services reach thecustomer.
Seven Tools of Quality Management
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The Seven QC Tools
1. Flowcharts: process mapping to identify thesequence of activities or flow of materials/information in a process.
2. Run Charts and Control Charts: a run chartis a line graph with data plotted over time;control charts include control limits.
3. Checksheets: simple tools for data collection,
ensure completeness.
4. Histograms: graphically represent frequency ofvalues within a specified group.
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The Seven QC Tools5. Pareto Diagrams: separate the vital few
from the trivial many causes; providedirection for selecting projects for
improvement.6. Cause-and-Effect Diagrams: represent
chain of relationships; often called a fishbonediagram.
7. Scatter Diagrams: graphical component ofregression analysis.