What is Quality?

1.1 Quality and competitiveness

 What is quality?
“Meeting the customer requirements”
 What is reliability?
“It is the ability of product and service to continue to meet the customer requirements”
 Quality is meeting the customer requirements, and this is not restricted to the
functional characteristics of the product or services.

Definition of Quality
 Quality is also defined as excellence in the product or service that fulfills or exceeds
the expectations of the customer.
 There are 9 dimensions of quality that may be found in products that produce
customer-satisfaction.
 Though quality is an abstract perception, it has a quantitative measure- Q= (P / E),
where Q=quality, P= performance (as measured by the Manufacturer.), and E =
expectations (of the customer).
 Quality is not fine-tuning your product at the final stage of manufacturing, before
packaging and shipping.
 Quality is in-built into the product at every stage from conceiving –specification &
design stages to prototyping –testing and manufacturing stages.
FEIGENBAUM (1983) DEFINED QUALITY AS FOLLOWS
 Quality is total composite product (goods and services) characteristics, through which
the product in use will meet the needs and expectations of the customers.
 Concept of quality must start with identification of customer quality requirements and
must end only when the finished product is placed into the hands of the customer who
remains satisfied through various stages of relationship with the seller
American Society of Quality Control (ASQC) and American National Standard Institute
(ANSI) defined
 Quality is totality of features and characteristics of product (goods and services) that
bears on its ability to satisfy given needs”.
ISO 9000:2000
 Quality is the degree to which a set of inherent characteristics fulfils requirements.
Quantified
 Q=P/E P-Performance, E-Expectations
Joseph M. Juran
 Quality is fitness for use or purpose
Philips B Crosby
 Quality is Conformance to requirements
W. Edwards Deming
 A predictable degree of uniformity and dependability at low cost and suited to market
Bill Conway
 Development, manufacture, administration and distribution of consistently low cost and
products and services that customers need and want.
Approaches to define Quality
1. Transcendent Approach
 Quality is absolute and universally recognisable.
 It is common notion used by laymen
 There is no subjective judgement and is estimated by looking at the product
2. Product Based Approach
 Attributes of a particular product in a specific category
 These attributes are accepted as bench of quality by the industry
 Others in the same industry try to produce close to this quality
3. User Based Approach
 Defined as “Fitness for use”
 Viewed from user’s perspective and is dependent on how well does the product
meet needs of the consumer.
 Also known as Customer Oriented Approach
4. Production Based Approach
 An outcome of engineering or operational excellence and is measured in terms of
quality of conformance
 The producer has specifications and produces the product as per the
specifications
5. Value Based Approach
 Quality is viewed in context of price
 Quality is satisfactory, if it provides desired performance at an acceptable price
 Customer looks at the total value proposition and not the price alone.

Benefits
Value=
Price

Manufacturing Dimensions (Product)

1) Performance
2) Features
3) Reliability
4) Conformance
5) Durability
6) Serviceability
7) Aesthetics
8) Perceived quality

Service Dimensions
1) Convenience
2) Reliability
3) Responsiveness
4) Time
5) Assurance
6) Courtesy
7) Tangibles

Attributes / Dimensions of Quality

1. Performance - main characteristics of the product/service
2. Aesthetics - appearance, feel, smell, taste
3. Special Features - extra characteristics
 4. Conformance - how well product/service conforms to customer’s expectations
5. Reliability - consistency of performance
6. Durability - useful life of the product/service
7. Perceived Quality - indirect evaluation of quality (e.g. reputation)
8. Serviceability - service after sale
Service Quality
1. Convenience
2. Reliability
3. Responsiveness
4. Time
5. Assurance
6. Courtesy
7. Tangibles
Examples of Service Quality
Dimension Examples
1. Convenience Was the service center conveniently located?
2. Reliability Was the problem fixed?
Were customer service personnel willing and able to
3. Responsiveness
answer questions?
4. Time How long did the customer wait?
Did the customer service personnel seem
5. Assurance
knowledgeable about the repair?
Were customer service personnel and the cashier
6. Courtesy
friendly and courteous?
7. Tangibles Were the facilities clean, personnel neat?

Challenges with Service Quality

 Customer expectations often change
 Different customers have different expectations
 Each customer contact is a “moment of truth”
 Customer participation can affect perception of quality
 Fail- safing must be designed into the system

Examples of Quality Dimensions

Dimension Product (Automobile) Service (Auto Repair)

Performance Everything works, fit & finish
Ride, handling, grade of
materials used
Aesthetics Interior design, soft touch
Special Features Gauge./control placement
Cellular phone, CD player
Reliability Infrequency of breakdowns
Durability Useful life in miles, resistance Work holds up over time
to rust & corrosion
Perceived Quality Top – rated car
Serviceability Handling of complaints
All work done, at greed price
Friendliness, courtesy,
competency, quickness
Clean work/ waiting area
Location, call when ready
Computer diagnostics
Work done correctly, ready
when promised
Award winning service
department
Handling of complaints
 and/or request for information

The Acceptance Inspection Model

Quality Control
 Quality Control (QC) - “the operational techniques and activities that are used to fulfil
requirements for quality”.
 The purpose of quality control is to uncover defects and have them corrected so that
defect-free products will be produced.
 Quality control is limited to looking at products.
 Quality control is testing the final product against product quality standards.
 Quality control is operational techniques that are used to fulfill requirements for product
quality.

Quality Control - It is that part of Quality Management focused on fulfilling requirements of the
Customers for the quality products.

A Simplest Form of Quality Control is:

Quality Assurance
 Quality Assurance (QA) - “all planned and systemic activities necessary to provide
adequate confidence that a product or service will satisfy given requirements for quality”.
 Quality assurance is oriented toward preventing defects.
 It is defined by those activities that modify the development processes to prevent the
introduction of defects.
 Quality assurance is more concerned with the processes that produce the final product,
and making sure that quality is part of each phase.
 QA is about maturing the process towards minimum defect.
 It is about balancing methodology, leadership, and technology.
 It is about taking into account human factors as well as technological ones.

The Phases of Development of Quality Assurance Systems

Evolution of Quality Management
A. Companywide Quality Control
 Measured in all functions connected with production such as
 R&D
 Design
 Engineering
 Purchasing,
 Operations etc.
B. Total Quality Management
 Measured in all aspects of business,
 Top management commitment
 Continuous improvement
 Involvement & participation of employees
C. Mass Inspection
 Inspecting
 Salvaging
 Sorting
 Grading
 Rectifying
 Rejecting
D. Quality Control
 Quality manuals
 Product testing using SQC
 Basic quality planning
E. Quality Assurance
 Emphasis on prevention
 Proactive approach using SPC
 Advance quality planning
F. Total Quality Management
 All aspects of quality of inputs
 Testing equipment
 Control on processes
TQM Evolution
Evolution of Quality Management

Quality Management Evolution

Incorporates QC/QA activities

into a company-wide system
Total Quality
Proactive Approach aimed at satisfying the customer.
Management
(involves all organizational
functions)
 Prevention Planned and systematic actions
Stop defects at Quality to insure that products or
source. Assurance services conform to company
Zero defects requirements

Operational techniques to make

Quality inspection more efficient & to
Reactive Approach
Control reduce the costs of quality.
(example: SPC)

Detection
Finding & Fixing Inspection Inspect products
mistakes
What is Total Quality Management (TQM)?
TQM
 Total - Made up of the whole
 Quality - Degree of excellence a product or service provides
 Management - Art of Planning, Organizing, Controlling etc.

Therefore, TQM is the art of managing the whole to achieve excellence.

Meaning of TQM

All persons
System Of all divisions
At every stratum

MBO, Kaizen, QC Circle, 5S, TPM

Method
SQC,SPC, FMEA, MSA, OEE
TQM
Q(Quality):Quality improvement
C(Cost):Cost reduction
D(Delivery):Delivery execution
Purpose
S(Safety):Safety maintenance
E(Environmental):Environmental
protection

Definition of TQM
 Systematic activities of operating the whole units of a company effectively and
efficiently to supply goods and services of quality satisfactory to customers at right
time and at right price, thus contributing to attaining Business Purposes.
 TQM is integrated organisational approach in delighting customers (both internal and
external) by meeting their expectations on a continuous basis through everyone involved
 in the organisation, working on continuous improvement in all products, services, and
processes along with proper problem solving methodology.
 "TQM is a management approach for an organization, centered on quality, based on the
participation of all its members and aiming at long-term success through customer
satisfaction, and benefits to all members of the organization and to society.”
 Total Quality Management (TQM) is a management strategy aimed at embedding
awareness of quality in all organizational processes.
 Total Quality Management means that the organization's culture is defined by and
supports the constant attainment of customer satisfaction through an integrated system
of tools, techniques, and training. This involves the continuous improvement of
organizational processes, resulting in high quality products and services.

GOAL of TQM:
“Do the right things right the first time, every time.”

Pillars of TQM
1. Customer Focus: Studying customer needs, gathering customer requirements, and
measuring and managing customer satisfaction.
Customer satisfaction is seen as the company's highest priority. The company believes
that it will only be successful if its customers are satisfied.
2. Process Management: Develop a production process that reduce the product
variations. Applying the same process; the same product should be produces with the
same level of quality every time.
Teams are process-oriented, and interact with their internal customers to deliver the
required results. Management's focus is on controlling the overall process, and
rewarding teamwork.
3. Employee Empowerment (Human side of Quality): TQM environment requires a
committed and well-trained work force that participates fully in quality improvement
activities.
On-going education and training of all employees supports the drive for quality.
4. Continuous Improvement: TQM recognizes that product quality is the result of process
quality. As a result, there is a focus on continuous improvement of the company's
processes.
This will lead to an improvement in process quality. In turn this will lead to an
improvement in product quality. Measurement and analysis id the tool that has been
used for that.
 • Reduce rework activities (Cost reduction)
• Shorter development cycle (Cost reduction)
• Increased customer satisfaction (Quality improvement)

TQM six basic Concepts

1. Management commitment to TQM principles and methods & long term Quality plans for
the Organization
2. Focus on customers – internal & external
3. Quality at all levels of the work force.
4. Continuous improvement of the production/business process.
5. Treating suppliers as partners
6. Establish performance measures for the processes.

Another way to put it

 At its simplest, TQM is all managers leading and facilitating all contributors in everyone’s
two main objectives:
(1) Total client satisfaction through quality products and services; and
(2) Continuous improvements to processes, systems, people, suppliers, partners,
products, and services.

Continuous Improvement versus Traditional Approach

Traditional Approach Continuous Improvement

 Market-share focus  Customer focus
 Individuals  Cross-functional teams
 Focus on ‘who” and “why”  Focus on “what” and “how”
 Short-term focus  Long-term focus
 Status quo focus  Continuous improvement
 Product focus  Process improvement focus
 Innovation  Incremental improvements
 Fire fighting  Problem solving

Understanding and building the quality chains

  “A Customer’s impression of quality begins with the initial contact with the company and
continues through the life of the product.”
◦ Customers look to the total package - sales, service during the sale, packaging,
deliver, and service after the sale.
◦ Quality extends to how the receptionist answers the phone, how managers treat
subordinates, how courteous sales and repair people are, and how the product is
serviced after the sale.
 “All departments of the company must strive to improve the quality of their operations.”
 To achieve quality throughout an organization, each person in the quality chain must
interrogate every interface as follows:
Customers:
 Who are my immediate customers?
 What are their true requirements?
 How can I measure my ability to meet the requirements?
Suppliers:
 Who are my immediate suppliers?
 What are my true requirements?
 The concept of internal and external customers/suppliers forms the core of total quality.
 Quality has to be managed – it will not just happen.
 Failure to meet the requirements in any part of quality chain leads to yet more failure.
 The price of quality is the continual examination of the requirements and our ability to
meet them “continuing improvement” philosophy.

Customer types
1. External customers
2. Internal customers

a) External – current, prospective and lost customers

b) Internal – Every person in a process is a customer of the previous operation. (Applies to
design, manufacturing, sales, supplies etc.) [Each worker should see that the quality meets
expectations of the next person in the supplier-to-customer chain]

TQM is commitment to customer-focus - internal and external customers.

Customer/supplier chain

Internal customer/Supplier relationships

 Questions asked by people to their internal customers
  What do you need from me?
 What do you do with my output?
 Are there any gaps between what you need and what you get?
 Good team-work and inter-Departmental harmony is required. Also the leaders’ role in
supervising the internal customer-supplier chain.
Internal\External Customers

Understanding and building the quality chains

 Meeting the requirements
 The first item on the list of things to do is find out what requirements are.
 If we are dealing with a customer/supplier relationship, the supplier must understand
not only the needs of the customer but also the ability of his own organization to
meet them.
 Internal supplier/customer relationships are often the most difficult to manage in
terms of establishing the requirements.

Customer satisfaction
 Customer is the Boss or ’King’
 Customer dictates the market trends and direction
 Customer not only has needs to be supplied( basic performance functions)
 Also he ‘wants what he wants!’( additional features satisfy him and influence his
purchase decision)
 Hence the Suppliers and Manufacturers have to closely follow at the heel of the
customer.

Customer Satisfaction Organizational Diagram

What is customer satisfaction?
 Is it due to Product quality?
 Is it due to pricing?
 Is it due to good customer service?
 Is it due to company reputation?
 Is it something more?
Integrated Quality

Understanding and building the quality chains

 To understand how quality may be built into a product or service, at any stage, it is
necessary to examine the three distinct, but interrelated aspects/parameters of quality:
1. Quality of Design
2. Quality of Conformance
3. Quality of Use

Quality of Design: Is the extent to which the design reflects a products or service that satisfies
the customer need or expectations.
 Quality of design is a measure of how well the product or service is designed to
achieve the agreed requirements.
 The most important feature of the design, with regard to achieving quality, is the
specification.
 Specifications must also exist at the internal supplier/customer interfaces.
 There must be an agreement that the operating departments can achieve that
requirement.
Quality of conformance to design: Is the extent to which the product or service conforms to
the design standard
  What the customer actually receives should conform to the design.
 The conformance check makes sure that things go according to plan.
 Organizations may use the simple matrix to assess how much time spent doing the right
things right.

Quality of Use: Is the extent to which a product is easy to use, reliable and maintainable.

How Work Gets Done in an Organization?

Inputs  Delivered by suppliers
Processes  Steps to transform inputs
Outputs  Goods and Services valued by customers

Quality of outputs depends on the correct execution of FIRST two steps. A mistake anywhere in
the process affects everyone in one way to another.

Managing processes
 Have we done the job correctly?
 This is not quality control, it is detection.
 This process –detection- happens at the end of the processes.
 Are we capable of doing the job correctly?
 We should realize that an answer will only be obtained by means of satisfactory
methods, materials, equipment, skills and instruction, and a satisfactory ‘process’.
 What is a process?
 A process is the transformation of a set of inputs, which can include actions, methods
and operations, into outputs that satisfy customer needs and expectations, in the form of
products, information, services or –generally- results.
 To produce an output that meets the requirements, it is necessary to define, monitor and
control the inputs to the process.
 Every single task throughout an organization must be viewed as a process.

S Materials  C
U Procedures   Product U
P Methods  S
P Information   Service T
L People  PROCESS O
I Skills   Information M
E Knowledge  E
R Training   Paperwork R
S Equipment  S

Managing Processes
  If our process is capable of meeting the requirements, “Do we continue to do the job
correctly?” this needs to monitor and control the process.

Quality control
 The activities and techniques employed to achieve and maintain the quality of a product,
process, or service.
 A set of activities designed to evaluate a developed work product.
 It is concerned with finding and eliminating causes of quality problem.
 Finding defects in specific deliverables.
 It is product – oriented.
 Focuses on employed activities and techniques.
 Examples (testing, monitoring,)
Quality assurance
 The prevention of quality problems through planned and systematic activities (including
documentation).
 A set of activities designed to ensure that the development and/or maintenance process is
adequate to ensure a system will meet its objectives.
 Ensure that the process is defined and appropriate.
 Process-oriented.
 Aims at preventing quality problems.
 Examples (development of methodology & standards, establishment of QMS,)

Quality starts with ‘Marketing’

 Marketing is responsible for determining the key characteristics that determine the
suitability of the product or service in the eyes of the customer.
 Excellent communication between customers and suppliers is the key to total quality.
 Requirements must be communicated properly throughout the organization in the form of
specifications which can be used as the basis for the design.
 The information requirements include:
1. Characteristics of performance & reliability
2. Aesthetic characteristics
3. Any obligatory regulations or standards governing the nature of the product or service
 Marketing must also establish systems for feedback of customer information and reaction,
and these systems should be designed on a continuous monitoring.
 In reviewing of market readiness of a new product or service. Items that require some
attention include assessment of:
1. The suitability of the distribution & customer-service system
2. training of personnel in the field
3. Availability of spare parts or staff support
4. Evidence that the organization is capable of meeting customer requirements
Customer satisfaction/dissatisfaction feedback
 Customer feedback has to be continuously sought and monitored - not one-time only!
(Pro-active! Complaints are a reactive method of finding out there is a problem)
 Customer feedback can be relayed to Manufacturer.
 Performance comparison with competitors can be known
 Customers’ needs can be identified
 Areas for improvement can be noted.

Customer feedback methods

 Comment cards enclosed with warranty card when product is purchased.
 Customer survey and questionnaire
 Customer visits
 Customer focus groups
 Quarterly reports
 Toll-free phones
 e-mail, Internet news groups, discussion forums
 Employee feedback
 Mass customization.

Customers- Handle with care!

 Employers don’t pay wages but it is the customer who pays the wages!
 So take good care of your customers.
 Customer-care centers not just profit-centers!
 The entire organization must in effect revolve around the customer – whether the
customer is being well served and if he is really pleased, contented and satisfied with the
service you have to offer.

Quality in all functions

 For an organization to be truly effective, each part of it must work properly together.
 Errors have a way of multiplying.
 Business employs so many different specialist skills that everyone has to rely on the
activities of others in doing their jobs.
 The commitment of all members of an organization is a requirement of ‘company-wide
quality improvement’.

Effects of poor Quality

1. Low customer satisfaction
2. Low productivity, sales & profit
3. Low morale of workforce
4. More re-work, material & labor costs
5. High inspection costs
6. Delay in shipping
7. High repair costs
8. Higher inventory costs
9. Greater waste of material

Benefits of Quality
1. Higher customer satisfaction
2. Reliable products/services
3. Better efficiency of operations
4. More productivity & profit
5. Better morale of work force
6. Less wastage costs
7. Less Inspection costs
8. Improved process
9. More market share
10. Spread of happiness & prosperity
11. Better quality of life for all.