Unit-l

INTRODUCTION

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 Meaning of Quality
 Q – Quest(find out) for Excellence
 U – Understanding the Customer needs
 A – Action to achieve the Customer’s
Appreciation
 L – Leadership(the action of leading a group of people
or an organization).
 I – Involvement of the people
 T – Team spirit(mood) to work for a common
goal.
 Y – Yardstick to measure the progress.
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Definition of Quality

 “Conformance of Requirements”
 The Ability of product or service to meet the
customer needs
 “Fitness for use”
 The totality of features and characterstics of a
product or service that bears on its ability to
satisfy stated implied needs – “American
Society of Quality”
 Quality = performance / expectations.

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Total Quality
Management

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Introduction
 Total – Made up of the whole(or)
Complete.
 Quality – Degree of Excellence a
product or service provides to the
customer in present and future.
 Management – Act , art, or manner of
handling , controlling, directing, etc.
TQM is the art of managing the whole to
achieve excellence.

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Definition
"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."

TQM is composed of three paradigms:

Total: Organization wide
Quality: Degree of Excellence / fitness for use/
Conformance of Requirements.
Management: The system of managing with steps like
Plan, Organise, Control, Lead, Staff, etc.
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Explanation
TQM requires that the company
maintain this quality standard in all
aspects of its business.
This requires ensuring that things
are done right the first time and that
defects and waste are eliminated
from operations.
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Benefits
Improved Quality
Employee Participation
Team Work
Internal & External Customer Satisfaction
Productivity ,Communication
Profitability & Market Share

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Obstacles
Top management commitment

Changing Organization Culture

Improper planning

Continuous Training & Education

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Obstacles
Organization Structure & Departments

Data’s & Facts For Effective Decisions

Internal & External Customers-

Dissatisfaction

Empowerment & Teamwork

Continuous Improvement
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Vision Statement
 A Vision statement is a brief declaration of
what an organization wants to becomes in
the future
 A Vision is Crystallized the long range planning
what can be and how should be accomplished.
A vision may also integrate the shared beliefs
and values that serve as a basis for changing
an organizational culture.
 It is basis for all the activities like planning,
decision making, forecasting, controlling and
directing etc.

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Examples of vision statement
 What is the vision statement of Vodafone? \
“Our vision is to lead the industry in
responding to public concerns regarding mobile
phones, masts and health by demonstrating
leading edge practices and encouraging others
to follow “.

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 Mission Statement
 Mission Statement describes the business or
businesses of the firm. The mission indicates
why the organization exist or purpose of the
organization
 The Question are answered by the mission
statement are:
 Who are we
 What do we do

 Who are our customers

 How do we do it.

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Example of Mission statement
 Canadian National Railway
 “To meet customer transportation and distribution
needs by being the best at moving their goods in
time, safety and damage free”.

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 Policy statement
 A Quality policy is a guide for everyone in the
organization as to how they should provide the
product and services to customers.
 It should be written by the CEO with feedback
from the employees and should be approved by
the quality council.
 QP is basic requirement of ISO / QS 9000.

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 Example of quality policy
 Xerox is a quality company, quality is the basic
business principle for Xerox. Quality means
providing our external customers with innovative
products and services that fully satisfy their
requirements. Quality is the Job of every
employee.

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Components of Quality policy
 Customer focus
 Obsession of quality
 Scientific approach in decision making
 Long term commitment
 Team work
 Continuous process improvement
 Education and Training
 Freedom through control
 Unity of purpose
 Employee involvement and empowerment

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 Customers
 There are two distinct type of customers
 External customers – an external customer is
one who uses / purchase our product and
services.
 Internal customers – Every person in a process
is considering of proceeding the operation in an
organizations.

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Customer Supply chain

Inputs form
External
Internal
Customer
customers

Outputs to
external
customers
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Customer perception of Quality
 According to American society for Quality
explains the customer perception of quality.
 Performance
 Features

 Service

 Warranty

 Price

 Reputation

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 Performance
 Performance involves “fitness for use” a phrase
indicates the product and service is ready for
the customer need’s at the time of sale. Other
factors related to performance.
 Availability – probability that a product will
operate when it is needed.
 Reliability – Which is the freedom from failure over
time.
 Maintainability – which is ease keeping the
product which is operable.

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 Features
 Identifiable features or attributes of a product or
service are psychological, time oriented,
contractual, ethical and technological. Features
are secondary characterstics of the product or
services.
 For ex: Car

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 Service
 An emphasis on customer service is emerging
as a method for organisation to give customer
added value. Customer service is intangible one
and small thing but it will changing customer
perception.
 Providing excellent room service in a Star Hotel
will changing their perception.

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 Warranty
 The product warranty represents an
organization's public promise of quality product
or service backed up by a guarantee a level of
service sufficient to satisfy the customers.
Warranty encourages the customers to buy a
service by reducing the risk of the purchasing
decision. It generates the more sales form the
existing customers.

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 price
 Today customer is willing to pay a higher price
to obtain value product or services. Customers
are constantly evaluating the one organization
product and services against those of its
competitors to determine the greatest value.

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 Reputation
 Most of us find ourselves rating by our overall
experience with them. Total customer
satisfaction is based on the entire experience
with the organization. Good experiences are
repeated with 6 people and bad experiences
with 15 people, it is difficult to create a favorable
situation.

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Translating the customer needs into
requirements
 The Kano Model conceptualizes translating
customer needs into requirements.
 From this diagram we are having 3 cuves
 Threshold Attributes.
 Performance Attributes

 Excitement Attributes

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 Origins of the Kano
Model

 Noriaki Kano
 Professor at Tokyo Rika University
 International Consultant

 Received individual Demming Prize in 1997

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 Origins of the Kano Model
 Noriaki Kano
 Developed foundation for an approach on “Attractive
Quality Creation” commonly referred to as the “Kano
Model”
 Challenged traditional Customer Satisfaction Models
that More is better, i.e. the more you perform on each
service attribute the more satisfied the customers will
be.
 Proposed new Customer Satisfaction model (Kano
Model)
 Performance on product and service attributes is not
equal in the eyes of the customers
 Performance on certain categories attributes
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produces higher levels of satisfaction than others.
 Key Elements
 Identify the Voice of the Customer
 Translate Voice of the Customer into Critical to
Quality Characteristics (CTQs)
 Rank the CTQs into three categories:
 Dissatisfier - Must be’s – Cost of Entry
 Satisfier – More is better – Competitive

 Delighter – Latent Need – Differentiator

 Evaluate Current Performance

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 Kano Model
“Didn’t know I Satisfaction
wanted it but I
like it.”
Satisfier
One Dimensional
Desired Quality
Delighters
Excited Quality

Service Service
Performance Performance

Dissatisfier
Must-be “Cannot increase
Expected Quality my satisfaction, but
can decrease.”

Dissatisfaction 32
Kano Model Process

Analyze & Plot &

Research Strategize
Brainstorm Diagram

•Research available •Analyze results •Develop Customer •Determine Project

data sources from data collection Requirement Matrix selection
•Determine data •Brainstorm list of •Record •Product Development
collection strategy features and Questionnaire •Service Development
•Design data functionality results in Matrix •Identify Marketing
collection •Develop Functional and Summarize Strategy
instruments and Dysfunctional •Plot results on
•Collect and Questionnaire Kano Model
summarize data •Distribute
Questionnaire

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Example: Requirements Questionnaire

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Voice of the Customer

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 Customer Focus
 Rapid changing and competitive environment may affect
the customer preference and customer loyalty. So the
organization is insisted to learn on a continuous basis.
 The Malcolm Baldrige National Quality Award criteria for
performance excellence is titled Customer and Market
Focus..
 This category examines how it enhances the
relationships with customers and determines their
satisfaction.
 Relationship enhancement is an important part of overall
listening and learning.
 Customer satisfaction results provide vital information for
understanding the voice of customers.
Customer Retention
 In business the customer defection is a problem
and customer retention is an opportunity.
 Customer retention is a powerful and effective
than customer satisfaction. Customer retention
represents the activities that produce the
necessary customer satisfaction and customer
loyalty.

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Service Quality and Customer retention
 Service industry are playing an increasingly
more important role in nation’s economy.
 Customer satisfaction and retention is a critical
for growth of service industries, because
services are intangible in nature.
 So building the Customer retention is
“ Think Customer Act Customer”.

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 Internal Service
Quality

Employee Employee Customer

Satisfaction Retention Retention

External Service profit

Quality

Customer Satisfaction
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 Think Customer Act Customer
Every organization must answer the following
question for getting the successful Customer
retention model
 Who is your customer
 Have you allocated time for your customer

 Do you understand their needs

 Have u planned down their immediate

requirements and agreed to them
 Have you built feed back mechanisms

 Have you built in flexibility

 Are you serving , not selling did u agree 40

Dimension of product Quality
 Performance – how well the product or service
performs the customer’s intended to use or
fitness for use. (Ex) use of printer.
 Features – Special Characteristics that appeal
to customers. (Ex) Car is having power Steering
and central locking system
 Reliability – Which is the freedom from failure
over time. (Ex) life of the Two wheeler is 15
years.
 Serviceability – The Speed, cost and
convenience of repairs and Maintenance.
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Dimension of product Quality
 Durability – The length of time or amount of use
before needing to be repaired or replaced
 Appearances – The effect of human senses like
feel, taste, smell and sound.
 Customer service – The treatment received by
customers before during after the sale.
 Safety – How well the product protects the user
before during and after use. (Ex) ISI

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Dimension of service quality
 Reliability – Consistency of the performer and
dependability.
 Responsiveness – Willingness or Readiness to
provide the service in timeliness.
 Competency – possession of skills and
knowledge required to perform the service.
 Access – Approachability and ease of contact.
 Courtesy – politeness, respect, consideration for
property, clean and appearance.

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Dimension of service quality
 Communication – Educating and informing the
customers in language they can understand, listening to
customers.
 Credibility – Trust worthiness, beliefs having customer’s
best interest at heart.
 Understanding – making an effort to understand the
customer needs, learning specific requirements,
providing individualized attention recognizing the regular
customers
 Security – Freedom from danger, risk or doubt
 Tangibles – the physical evidence of service (facilitates,
tools and equipments)

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Cost of Quality
 Certain costs which are associated with product
and service quality. The cost may classified into
four types
 Prevention Costs
 Appraisal Costs

 Internal Failure Costs

 External Failure costs

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Prevention Costs
Prevention costs are associated with preventing
the defects before they happen,
it include the
 Quality planning costs,

 New product review,

 Training cost,

 Process planning (Develop process control

devices),
 Quality data (collecting data, data analysis),

 Improvement projects

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Appraisal Cost
 The Cost which are incurred in assessing the
level of quality attained by the operating
system. It include the cost of Detecting the
defects i.e cost of all activities aimed at finding
product and services that to be meet the
specification.
 Incoming material inspection
 Process inspection

 Final goods inspection

 Constructing the quality laboratories.

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Internal failure costs
 The results from defects that are discovered
during the production of a product or services.
When the products are found to be defective
while in production, they must be scrapped or
repaired.
 Scrap
 Rework

 Downgrading (sold at less than the full value)

 Retest (Cost of inspection and test after rework)

 Downtime (idle facilities and people due to

quality failures)
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External Failure Costs
 The cost which are arise when a defect is
discovered after the customer has received the
product or service.
 Warranty cost
 Product liability and settlements

 The cost of product returns or recalls and lost

business and customer goodwill

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Steps to be taken to reduce the cost
of quality
 The cost of quality is a powerful tool for a quality
improvement if properly used. It focuses
management attention on waste due to excess
failures or high control costs.
 Quality improvement programs can also
dramatically increase the revenue and also to
produce more consistent product or services.

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