Week 9- Quality Management

1. Quality: consistent conformance to customer’s expectations

2. Diagnosing quality problems using the Perception-Expectation gap model:
 The customer’s specification and the operation’s specification gap.
 The concept-specification gap.
 The quality specification-actual quality gap.
 The actual quality-communicated image gap.
3. Sandcone Theory

4. Conformance to specification can be achieved by:

 Define the quality characteristics of the service or product.
 Decide how to measure each quality characteristic.
 Variable measures are those that can be measured on a continuously variable
scale (for example, length, diameter, weight, or time).
 Attributes are those which are assessed by judgment and are dichotomous, that
is they have two states (for example, right or wrong, works or does not work,
looks OK or not OK).
 Set quality standards for each quality characteristic.
 Control quality against those standards.
 Type 1 and Type 2 errors:
o Type I errors are those which occur when a decision was made to do
something and the situation did not warrant it.
o Type II errors are those that occur when nothing was done, yet a
decision to do something should have been taken as the situation did
indeed warrant it.
 Statistical Process Control
o SPC is concerned with sampling the process during the production of the
goods or the delivery of service. Based on this sample, decisions are
made as to whether the process is ‘in control’: that is, operating as it
should be.
o A key aspect of SPC is that it looks at the variability in the performance
of processes to check whether the process is operating as it should do
(known as the process being ‘in control’). In fact, variability (or more
specifically reducing variability) is one of the most important objectives
of quality improvement.
 Find and correct causes of poor quality.
  Continue to make improvements.

5. TQM
 TQM is ‘an effective system for integrating the quality development, quality
maintenance, and quality improvement efforts of the various groups in an
organization so as to enable production and service at the most economical levels
which allow for full customer satisfaction.

6. TQM lays particular stress on the following:

 meeting the needs and expectations of customers: needs, wants perceptions,
preferences
 covering all parts of the organization (SLAs effective yet a “hard” approach)
 including every person in the organization examining all costs which are related to
quality, especially failure costs and getting things ‘right the first time’
 Prevention cost
 Appraisal Cost
 Internal failure Costs
 External failure Costs
 developing the systems and procedures that support quality and improvement;
 developing a continuous process of improvement (this was treated in Chapter 16).