TUM School of Management

Production and Supply Chain Management

Prof Martin Grunow Technische Universität München

Quality Engineering & Management

Session 1.1: Defining Quality

Dr. Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott Quality Engineering & Management – Module 1.1 1

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Defining Quality

DEFINE   Defining Quality

  Understanding

MEASU
Customer
Expectations

E R

Holly Ott Quality Engineering & Management – Module 1.1 2

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Learning Objectives
•  Define quality as relative to a set of requirements and in terms of
customer expectations.
•  Compare the concept of quality management today to the past.
•  List major milestones in the development of Quality Management.

Holly Ott Quality Engineering & Management – Module 1.1 3

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Defining Quality
“Fitness for use” – Dr. Juran

“Fitness for use and meeting or exceeding customer

expectations.”

“The most fundamental truth is that quality is relative:

The customer focuses simply on value, seeing it as a
ratio of quality over price…Only when we offer more
value than our competitor do we really succeed.”
- Professor Godfrey, A. Blanton (2002), "What is Quality?" Quality
Digest, January, pp. 12.

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.

Holly Ott Quality Engineering & Management – Module 1.1 4

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Defining Quality
•  Quality has several dimensions:

•  Performance - Features - Reliability – Conformance –

Durability - Serviceability - Aesthetics – Perceived Quality

•  Quality must be defined for each product based on what the

customer wants in the product through measurable characteristics
and their limits of variability

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.

Holly Ott Quality Engineering & Management – Module 1.1 5

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Defining Quality
•  Quality is always relative to a set of requirements.

•  Functional (breakdown)
•  Subjective (optical, aesthetic)

•  Quality meets or exceeds customer expectations.

•  What is Non-Quality?

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.

Holly Ott Quality Engineering & Management – Module 1.1 6

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Defining Quality
•  "It takes 20 years to build a reputation and five minutes
to ruin it. If you think about that, you'll do things
differently.” (Warren Buffett)

Holly Ott Quality Engineering & Management – Module 1.1 7

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Past View of Quality Management

Preconception: Quality is
•  Testing
•  Costly
•  Re-active

Holly Ott Quality Engineering & Management – Module 1.1 8

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Historical Overview
•  1920s: Bell Laboratories
Dr. Walter A. Shewhart: Statistical control
charts / Drs. Harold Dodge & Harry Romig:
Sampling plans
•  1920s: Sir Ronald Fisher / 1950s: Dr. Genechi
Taguchi: product and process D.O.E. for
engineers.
•  1940s: WWII: Statistical methods used in the
production of goods and ammunition for the
U.S. military
•  Post-War 1950s: development of the science of
reliability

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.

Holly Ott Quality Engineering & Management – Module 1.1 9

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Historical Overview
•  1950: Edward Deming – Toyota Production
System (Lean Manufacturing)

•  1980s: Motorola “Six-Sigma Process” :

systematic, problem-solving approach

•  1987: Creation of Standards for Quality

Assurance by the International Organization for
Standardization (ISO 9000)

•  Today: acceptance of Quality as a strategic

parameter for business planning

•  Consumer awareness of quality

©2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.

Holly Ott Quality Engineering & Management – Module 1.1 10

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Statistics in Quality – Six Sigma

Source of Graph: Automotive News Europe (Supplement), March 2008

Example: Assume a car consists of 10,000 parts and production processes.

  Scenario A: Failure rate per part of 6,210 ppm (4 sigma)
 Would be 100% faulty vehicles.
  Scenario B: Stable processes with 3.4 ppm per part (6 sigma)
Holly Ott –Roughly
Quality Engineering & Management Module 1.1 97% fault-free vehicles.
11
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Today's View of Quality Management

Source: Manfred Seika – own image (orange icons are examples only)

Holly Ott Quality Engineering & Management – Module 1.1 12

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

QM is Interdisciplinary

Communication CSR
Sociology

Communication
Marketing
Design
Ethics
Organisational Statistics
Engineering Finance
Production
Law
Business
Supply Chain

Source: Manfred Seika – own image (orange icons are examples only)

Holly Ott Quality Engineering & Management – Module 1.1 13

 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Coming Up

  Lecture 1.2 Understanding Customer

Expectations

Holly Ott Quality Engineering & Management – Module 1.1 14