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Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 0
  Quality has different meanings to different people, where:
Customer  Quality refers to the (1)fitness for use and (2)delighting the customers by
Based fully meeting their needs & expectations.
 Quality refers to:
Manufacturing  Conforming to design, specifications, or requirements.
Based
Quality

 Having no defects and cost reduction.

Product  Quality refers to that the product has something that adds value, and
Based the other similar products do not have it (More Attributes).
 Quality refers to that the product is the best combination of price and
Value features, where the product provides performance at an acceptable price
Based
or conformance at an acceptable cost.
 Quality doesn't have a clear definition. However it relates to excellence
Transcendent
and anything good.

Quality Perspectives:
Producer's Consumer's
Perspective Perspective
 
Quality of Conformance Quality of Design
Production  - Conformance to Specifications.  - Quality Characteristics.  Marketing
- Cost. - Price.

Fitness for Use

 The “Fitness for Use” is achieved through 2 main Quality Determinants, which are:
1) Product Features / Characteristics (Quality of Design) [Consumer's Perspective], which
refers to the specific characteristics of a product that determine its value / market price in the
marketplace.
2) Freedom from Deficiencies (Quality of Conformance) [Producer's Perspective], which refers
to the degree to which a product meets its design specifications.

N.B.: "Quality of Design" involves the intention of the designers to include or exclude features in a
product, whereas "Quality of Conformance" involves the degree to which products conform to the
intent of the designers.

N.B.: The consumer's perspective depends on the price paid, whereas the producer's perspective
depends on the cost incurred.
N.B.: Both consumer's and producer's perspectives depend on each other. However the consumer's
view must dominate.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 1
 Quality Dimensions
1) Products Quality Dimensions:
 It refers to the basic / main operating features / characteristics of a product.

Example: Brightness of the mobile’s picture.

Performance Example: "Everything in a car is working properly".
Example: "All the work done at an auto-repair center is done at the agreed upon prices, and with
courtesy, competency, quickness, and friendliness".
 It refers to the "extra / secondary" items / characteristics added to the product.
Special
Example: Power Windows in a car, Adding a CD Player or Cellular Phone Placement in a car.
Features
Example: Calling the customer when his car is ready.
Example: Computer Diagnosis of the car.
 It refers to the consistency of performance within an expected time frame.
 It refers to meeting operating specifications over time.
Reliability  It also refers to that everything the customer asked for is provided.
(Flexibility)
Example: Was the problem fixed?
Example: Infrequency of breakdowns.
Example: The work is done correctly and the car is ready when promised.
 It refers to the how well the product conforms to the pre-established industry
Conformance standards and customers' expectations.
Example: The car and the auto repair center meet all the customers' needs.
 It refers to how long a product lasts before replacement including repairs
[Product Useful Life].
Durability  It refers to the amount of use before the performance deteriorates.

Example: The car useful life in miles.

Example: Resistance to rust and corrosion.
 It involves the ease, speed, and courtesy of the after-sale services.
 It also refers to the ease and speed of getting repairs.
Serviceability
Example: Handling of complaints and requests for information.
 It refers to the product appearance, where it relates to how a product looks,
feels, sounds, smells or tastes.
Aesthetics
Example: The interior design of a car.
Example: The clean work and waiting area of the auto repair center.
 It involves the indirect / subjective evaluation of quality by the customer based
Perceived on brand name reputation, advertising, … etc..
Quality
(Reputation)
(Product Image) Example: Top-rated car.
Example: Award-wining service department.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 2
2) Services Quality Dimensions:
 It refers to how long must a customer wait for the service. It also refers to
whether the service is completed in the promised period of time.
 It refers to the willingness and readiness of the employees to help the
Time / Timeliness
customers promptly.

Example: How much did the customer wait?

 It refers to how are customers treated by the employees?
Courtesy
Example: Are phone operators nice and are their voices pleasant?
Example: Were the customer service personnel and the cashier friendly, cheerful and polite?
 It refers to whether the same level of service is provided to each customer
each time?
Consistency
Example: Is your newspaper delivered on time every morning.
 It involves determining how easy it is to obtain the service?
Convenience
(Accessibility)
Example: Was the service center conveniently located?
 It refers to how well does the company react to the unusual situations?
Responsiveness
Example: Were the customer service personnel willing to answer questions and provide
services quickly?
 It refers to the physical evidence of the service, which is reflected in the:
a) Appearance of the physical facility. [Example: Cleanliness]
Tangibles
b) Appearance of employees.
c) Appearance of communication materials.
 It refers to the service employees' (1)knowledge, (2)competence (skills),
(3)Credibility (Believability – Honesty), and (4)ability to convey trust and confidence.

Assurance
Example: Did the customer service personnel seem knowledgeable about the repair?
Example: Were the customer service personnel able to answer questions?
Accuracy  It refers to that the service is to be provided correctly each time.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 3
Evolution of Quality Management:

Mass Inspection  It involves inspecting, salvaging / clearance, sorting / differentiation,

(After Production) grading grouping, rectifying / correcting and then rejecting / refusing.
 It involves Quality Manuals and Product Testing using Statistical
Quality Controls (SQC).

 It measures the Quality of Conformance (Conformance Control),

Quality Control which handles the following:
(QC) a) Inspects the Outputs relative to Standards (Operations) /
(Through Production) Specifications (Product) (Design Intent) through various control tools.
b) Takes Corrective Actions when the output doesn't meet standards.

N.B.: Quality Control can't be applied effectively on services because

Quality Assurance
(QA)
(Before - Through – After)
Total Quality Control
there is no tangible product to inspect and control.
 It focuses on preventing defects (Proactive Approach) using Statistical
Process Controls (SPC).
 It relies primarily on Acceptance Sampling, which involves inspecting
the final output.
 It involves using all the aspects of quality including inputs, equipments,
processes and outputs.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 4
 Quality Gurus
 Quality Gurus are those who made major contributions to improving the quality of products.

 The most famous of these gurus are:

1) W. Edwards Deming :
 He is the Godfather of Quality Management.
 He was an American Statistician, who worked in Japan.
 He introduced Continual Improvements.
 He believed that the historic approach to quality used by American management was wrong in
that poor quality was not the fault of labor, but rather it resulted from poor management of the
quality system.

Deming 14 Points of Management:

1) Create constancy / loyalty of purpose for improving products and services.
2) Don't live with delays and mistakes and start adopting a new philosophy.
3) Mass inspection to achieve quality.
4) End the practice of lowest bids and dependence on price alone.
5) Constantly look for systems' problems.
6) Institute On-The-Job Training (OJT).
7) Institute modern supervision techniques.
8) Drive out fear.
9) Break down barriers between departments.
10) Eliminate meaningless slogans.
11) Eliminate numerical quotas for the workforce.
12) Remove barriers that deprive people of pride of workmanship.
13) Institute a program of education and self-improvement for everyone.
14) Continuously pursue the above 13 points.

 W. Edwards Deming developed the “Plan-Do-Check-Act” (PDCA) Cycle that emphasizes the
need for continuous improvement.

1) Plan, which involved studying the current system to (1)identify problems, then (2)test various
theories of causes, and then (3)develop the appropriate solutions for improvements.
2) Do, which involved implementing the Plan on a trial / test basis, and collecting and
documenting data.
3) Check / Study, which involved determining / assessing whether the trial plan is working correctly
by evaluating the results.
4) Act, which involved standardizing / institutionalizing the improvements and implementing the final
plan to get the greatest benefits.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 5
Seven Deadly Sins:
1) Lack of vision and mission as regards quality & process improvement.
2) Emphasis on short term profit.
3) Personal performance appraisal systems.
4) Mobility of management (Loyalty ).
5) Running a company on visible figures alone, ignoring customer satisfaction levels, employee
morale, relationship with vendors, and Confidence the market has in your company
6) Excess non-productive expenditure.
7) Excessive cost of warranty.

N.B.: Deming’s Prize was established originally for the Japanese companies, However it is now also
awarded to non Japanese companies and even individuals.

Continuous Improvement  It is a philosophy that seeks making never-ending improvements to

(Kaizen) the process of converting inputs into outputs. (Processes are going on).

2) Joseph Juran :
 He believed that poor quality resulted from poor planning, and he thus called for the Strategic
Quality Planning.
 He introduced the Quality Trilogy including Planning, Control and Improvements.
 He also introduced the Pareto Law (80 – 20 Rule).

3) Kaoru Ishikawa :
 He developed the Cause-and Effect Diagram (Fishbone).
 He emphasized the importance of the internal customer (employees).
 He developed the basic seven statistical tools of quality.
 He stated that quality does not only mean the quality of product, but also of after sales service,
quality of management, the company itself and the human life

4) Armand Feigenbaum :
 He proposed the concepts of "Total Quality Control", which made the quality everyone's
responsibility including the customers.
 He introduced a 3-step process to improving quality including Quality Leadership, Quality
Technology and Organizational Commitment.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 6
5) Philip Crosby:
 He stated that the costs of quality outweigh the costs of preventing it, where he believed in that
an organization can reduce the overall costs by improving the overall quality of its processes.
Accordingly, he then mentioned that "Quality is Free".
 He emphasized the Zero-Defects Approach and the behavioral and motivational aspects of
quality improvement rather than statistical approaches.

6) Genichi Taguchi :
 He emphasized the minimization of variation and the "Quality Loss Function".
 He focused on determining the functional relationship between controllable product design factors
and the outcomes of a process, where he stated that there is a negative relation between Defects /
Loss and Technical Characteristics (Design).
 He focused on Robust Design, which is the design whose performance is sensitive to variations,
where noise factors can be caused during the product usage due to several environmental
conditions.
 He believed in that a quality product is a product that causes a minimal loss (money) to society
during its entire life.

Responsibility for Quality:

1) Top Management. 5) Quality Assurance.
2) Design. 6) Packaging and Shipping.
3) Procurement. 7) Marketing and Sales.
4) Production / Operations. 8) Customer Service.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 7
 Quality Control (QC) Tools
 Quality Control involves meeting the quality goals during the operations, through various
control parameters that (1)measure the deviation / variations and (2)take corrective actions.

 The main QC tools are:

 It involves using diagrams to highlight the most important causes for a problem, where
Pareto Analysis Diagrams

80% of the problems may be attributed to 20% of the causes.

 It is used to classify problem areas based on their degree of importance (Occurrence).

 It identifies the sequence / flow of steps / activities in a process needed to accomplish a

task.
(Process Mapping &
Flowcharts
Analysis)

 It is a simple blank document designed for the immediate recording of any needed
quantitative or qualitative information in real-time used in Problem Identification.
Check Sheets

 It divides the range of possible / observed values in a data set into vertical classes or
groups to determine whether they are symmetrical or not
Histograms

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 8
  It is used to point out the relationship / association between two variables.
Diagrams
Scatter

 It is a graph used to study how a process changes over time.

 It is used to track improvements, where it consists of the following:
a) A Centre Line (CL) drawn at the process average (mean value).
b) Lower and Upper Control Limits that indicate the level at which the process output is
Control Charts

considered statistically unlikely.

Process Process Process

(Not Centered + Not Stable) (Centered + Stable) (Needs More Improvements)

 It displays results over time with no control limits, for detecting patterns / trends in data
Example Run Chart
to seeing if the changes in process made a difference. It can't tell if a process is stable.
8
CRBSI/1000 Line Days

7
Run Charts

6
5
4
3
2
1
0
1 3 5 7 9 11 13 15 17 19 21 23 25
Day

 It is a tool that helps identify, sort, and display the root causes of a specific problem or
(Fishbone) (Ishikawa)

quality characteristic
Cause-and-Effect

Statistical  It is a collection of tools that when used together can result in process stability and
Process Control variance reduction. (SPC)

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 9
 Cost of Quality
 The cost of quality can be classified into Achieving Good Quality Cost and Poor Quality Cost,
which are detailed in the following table:

Category Description
 It refers to the costs, during the product design, which are associated with preventing
Cost of Achieving Good Quality

defects (poor-quality products) from occurring in the first place, which reflects the philosophy
of "do it right the first time".
Prevention

 Examples of prevention costs include the following:

1) Quality Planning Costs. 5) Product or Service Requirements.
2) Training Costs. 6) Product Design Costs.
3) Quality Assurance. 7) Process Design (Mistake-Proofing) Costs.
4) Scheduled Maintenance. 8) Information Costs.
 It refers to the costs of measuring, testing, and analyzing materials, parts, products,
and the processes to ensure that it conforms to the specifications to assure that product
(Appraisal) (Assessment)

quality specifications are being met and uncover defects.

Detection

 Examples of appraisal costs include the following:

1) Key Performance Indicators. 5) Third-Party Audits.
2) Supplier Rating. 6) Inspection and Testing.
3) Verification. 7) Test Equipment Costs.
4) Quality Audits / Checks. 8) Reporting (Data Collection) Systems
 It refers to the costs incurred within the process when poor-quality / defective products
or faulty services are discovered prior to shipment / release before they are delivered to
Internal Failure

the customer.
Cost of Poor Quality

 Examples of internal failure costs include the following:

1) Waste. 5) Equipment Breakdowns.
2) Scrap, 6) Process Downtime Costs.
3) Rework / Repair. 7) Price-Downgrading / Reduction Costs.
4) Failure Analysis.
 It refers to the costs incurred after the customer has received a poor-quality product
External Failure

and are primarily related to customer service.

 Examples of external failure costs include the following:

1) Customer Complaint Costs. 4) Repairs and Servicing.
2) Product Returns Costs. 5) Product Liability Costs.
3) Warranty Claims Costs. 6) Lost Sales Costs.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 10
Quality and Cost Relationship
Traditional Relation Actual Relation

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 11
 Total Quality Management (TQM)
 It involves the awareness of the importance of the quality throughout of the organization.
 It refers to the philosophy that involves everyone in an organization, in both technical and
personnel matters, in a continual effort to improve quality and achieve customer satisfaction.
 It focuses on identifying quality problem root causes.

TQM Basic Concepts:

1) Customer Focus, which involves identifying and meeting the changing customer needs.
2) Continuous Improvement, which involves continuous learning and problem solving [Kaizen, 6
Sigma and Plan-Do-Check Act (PDCA Cycle)].
3) Employee Empowerment, which involves giving the employees more autonomy and decision
making responsibility to increase accountability and trust. It involves dependence on Team
Approach, where such cross-functional teams meet weekly to analyze and solve problems.
4) Using Quality Tools, which involves using the "Best In Class" quality practices.
5) Product Design, which is the responsibility of the R&D Department.
6) Process Management.
7) Managing Supplier Quality.
8) Benchmarking, which refers to the practice of comparing the company's actual performance
results with the best companies' performance and judge the improvement of the company.

 The principles of TQM apply equally to services and manufacturing.

 Quality at the source is the philosophy of making each worker responsible for the quality of
his work..

Quality and Culture:

Unites States  It is Command-and-Control and Results Oriented.
Japan  It is Consistency and Waste Reduction Oriented.
 It is based on setting broad standards that can be adapted to the diverse nations,
Europe
including satisfying employees, focus on work as art and environmental care.
 It is a Socialist Market Economy characterized by low quality goods due to:
a) Low level of education of workers.
b) Lack of experience.
China c) Short-term workers.
d) Unfamiliar with goods.
e) Recycling.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 12
 Control Tools
 All processes generate output that involves some degree of variability. However the process is
considered "Within Control", if such variations are Random, not Assignable, where:
Random Variations  It refers to the variations in the output of a process created by countless
(Natural) minor factors that couldn't have been eliminated.
Assignable Variations  It refers to the variations in the output of a process whose cause can be
(Non-Random) (Special) identified, and thus should have been eliminated.

Control Chart:
 It is a Statistical Process Control (SPC) tool that monitors the processes to determine if it is
random (In Control) (Random Causes) or not (Out of Control) (Assignable Causes) through a time-ordered plot that
represents a sample obtained from an ongoing process (Population).

 It consists of the following:

a) A Centre Line (CL) drawn at the process mean / expected / average value ()
b) Lower and Upper Control Limits (LCL – UCL), which indicate the level at which the process
output is considered statistically unlikely. (Tolerance Limits) (Confidence Interval). Such limits define the range
of the acceptable variations.

 99.74% of the values will be within ±3 standard deviation (σ) of the mean of the distribution.
Therefore, we will set the control limit at a maximum value of ±3 standard deviation from the mean.

Variation Z
68% 1

95% 2
99.74% 3

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 13
 The larger the sample size, the narrower the sampling distribution, which means the more close
the sample results to the true value of the population.

Null Hypothesis = Process In Control = H0:  = 74

Alternative Hypothesis = Process Out of Control = H1:   74

Ho True Ho False
Reject Ho Type (1) Error [α] Correct
Decision
Don't Reject Ho Correct Type (2) Error [β]
Where:
Type (I) Error refers to concluding that a process is not in control when it actually is. It involves the
probability of rejecting Ho when it is actually true. [Incorrect Rejection]
Type (II) Error refers to concluding that a process is in control when it is not. It involves the
probability of accepting Ho when it is actually not true. [Incorrect Acceptance]

N.B.: Using wider limits (±3σ) reduces the probability of Type (1) Errors.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 14
 Control Charts Types:
Variables Control Chart Attributes Control Chart
 It is the chart that monitors characteristics that  It is the chart that monitors characteristics that
can be measured, through real continuous – can be counted through a discrete answers (yes
scale values (whole or fractional numbers), such as height, / no) (good / bad) (pass / fail) (functional / broken) (operate / not
weight, volume, diameter, or time. operate) (number of calls) (number of defects).

 It uses:
1) X-Bar (Average) (Mean) ( X ) Charts, which
monitor whether a product characteristic have
occurred in the mean values (Central Tendency). It is
sensitive to shifts in the process mean.
 It uses:
1) "C' Charts, which monitor the actual number of
defects (Counts) in a sample. The underlying
sampling distribution is the Poisson Distribution,
which assumes that:
a) Defects occur over a continuous region.
b) The probability of more than one defect at any
particular point is negligible.

2) R (Range) (Variance) Charts, which monitor the
range or variation / dispersion (largest and smallest) of
the values of a product characteristic. It is sensitive
to changes in the process dispersion.
 It gives more information.
2) "P" Charts, which monitor the proportion /
percentage of defects in a sample. It is used
when the data consists of multiple samples each
having several observations. The underlying
sampling distribution is the Normal Distribution.
 It needs less time and cost.

 Both the mean control charts and the range control charts provide different perspectives on a
process. Because of this difference in perspective, both types of charts might be used to monitor the
same process.

Mr. Ahmed Galal – QM – 3rd Grade – Business Department – BMT – Intensive (1) – October 2019 15