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Quality Management


W. Edward Deming
Joseph M. Juran
Phil Crosby
W. Edward Deming
 Focus on bringing about improvements in product
and service quality by reducing uncertainty and
variability in goods and services design and
associated processes (the beginning of his ideas in
1920s and 1930s).
 Higher quality leads to higher productivity and
lower costs.
 “14 Points” management philosophy.
 Deming Cycle – Plan, Do, Study, and Act.
Joseph M. Juran

Management for quality, according to

Juran, involves the elements of quality
planning, quality control, and quality
improvement; these form Juran’s so-
called “Trilogy”.
Juran’s Quality Trilogy
• Quality planning
– Preparing to meet quality goals
• Quality control Q.P
– Meeting quality goals during operations
• Quality improvement
– Reaching unique levels
of performance
Q.C. Q.I.
Key Idea
• Juran proposed a simple definition of quality:
“fitness for use.”
• This definition of quality suggests that it should
be viewed from both external and internal
perspectives; that is, quality is related to
• (1) product performance that results in customer
• (2) freedom from product deficiencies, which
avoids customer dissatisfaction.”
Philip B. Crosby
Zero Defects
Effectively this concept implies that “poor” or “high” quality
has little or no meaning and that in fact it is either
conformance or non- conformance to customer/product
requirements which is of central importance. Quality
management equates to defect prevention.
QUALITY-What it stands For?

No Quality, no sales. No sales, no profit. No profit, no jobs.

 Q: Quest for excellence.

 U: Understanding the customers needs.
 A: Action to achieve the customers appreciation.
 L: Leadership – determination to be a leader.
 I: Involving the all people.
 T: Team sprit to work for a common goal.
 Y: yardstick to measure progress.
Meaning of Quality
 Webster’s Dictionary
 degree of excellence of a thing

 American Society for Quality

 totality of features and characteristics that
satisfy needs

 Consumer’s and Producer’s Perspective

• It is defined as the ability of a product of service to meet
customer needs
• Quality is meeting or exceeding customer’s expectations.
• Quality requires continuous improvement.
• Quality is what the customers say it is- not what the company
• Quality can be described as doing the right thing, doing it the
right way, doing it on the time, doing it right the first time and
doing it right every time.
• Quality means meeting the customers requirements, formal
and informal, a the lowest cost, first time and every time.
• Quality is what is in the eye of the customers.
Meaning of Quality:
Consumer’s Perspective
 Fitness for use
 how well product or service
does what it is supposed to
 Quality of design
 designing quality
characteristics into a
product or service
 A Mercedes and a Ford are
equally “fit for use,” but with
different design dimensions
Dimensions of Quality:
Manufactured Products
 Performance
 basic operating characteristics of a product; how well
a car is handled or its gas mileage
 Features
 “extra” items added to basic features, such as a
stereo CD or a leather interior in a car
 Reliability
 probability that a product will operate properly within
an expected time frame; that is, a TV will work without
repair for about seven years
Dimensions of Quality:
Manufactured Products (cont.)
 Conformance
 degree to which a product meets pre–established
 Durability
 how long product lasts before replacement
 Serviceability
 ease of getting repairs, speed of repairs, courtesy and
competence of repair person
Dimensions of Quality:
Manufactured Products (cont.)
 Aesthetics
 how a product looks, feels, sounds, smells, or tastes
 Safety
 assurance that customer will not suffer injury or harm
from a product; an especially important consideration
for automobiles
 Perceptions
 subjective perceptions based on brand name,
advertising, and the like
Dimensions of Quality:
 Time and Timeliness
 How long must a customer wait for service, and
is it completed on time?
 Is an overnight package delivered overnight?
 Completeness:
 Is everything customer asked for provided?
 Is a mail order from a catalogue company
complete when delivered?
Dimensions of Quality:
Service (cont.)
 Courtesy:
 How are customers treated by employees?
 Are catalogue phone operators nice and are their
voices pleasant?
 Consistency
 Is the same level of service provided to each
customer each time?
 Is your newspaper delivered on time every
Dimensions of Quality:
Service (cont.)
 Accessibility and convenience
 How easy is it to obtain service?
 Does a service representative answer you calls quickly?
 Accuracy
 Is the service performed right every time?
 Is your bank or credit card statement correct every month?
 Responsiveness
 How well does the company react to unusual situations?
 How well is a telephone operator able to respond to a
customer’s questions?
Meaning of Quality:
Producer’s Perspective
 Quality of Conformance
 Making sure a product or service is produced
according to design
if a hotel room is not clean when a
guest checks in, the hotel is not
functioning according to
specifications of its design
Meaning of Quality
Meaning of
of Quality

Producer’s Perspective
Perspective Consumer’s
Consumer’s Perspective

Quality of
of Conformance
Conformance Quality
Quality of
of Design

Production • Conformance to • Quality characteristics Marketing

Production Marketing
specifications • Price
• Cost

Fitness for
Consumer UseUse
to design


Ease of Service

Cost of Quality
• Cost of Achieving Good Quality
– Prevention costs
• costs incurred during product design
– Appraisal costs
• costs of measuring, testing, and analyzing
• Cost of Poor Quality
– Internal failure costs
• include scrap, rework, process failure, downtime, and price
– External failure costs
• include complaints, returns, warranty claims, liability, and lost
Prevention Costs
• Quality planning costs • Training costs
– costs of developing and – costs of developing and
implementing quality putting on quality training
management program
programs for employees
• Product-design costs and management
– costs of designing products • Information costs
with quality characteristics
– costs of acquiring and
• Process costs
maintaining data related to
– costs expended to make quality, and development of
sure productive process
conforms to quality reports on quality
specifications performance
Appraisal Costs
• Inspection and testing
– costs of testing and inspecting materials, parts, and
product at various stages and at the end of a process
• Test equipment costs
– costs of maintaining equipment used in testing quality
characteristics of products
• Operator costs
– costs of time spent by operators to gar data for testing
product quality, to make equipment adjustments to
maintain quality, and to stop work to assess quality
Internal Failure Costs
• Scrap costs • Process downtime costs
– costs of poor-quality
products that must be – costs of shutting down
discarded, including labor, productive process to fix
material, and indirect costs problem
• Rework costs • Price-downgrading costs
– costs of fixing defective
products to conform to – costs of discounting poor-
quality specifications quality products—that is,
• Process failure costs selling products as
– costs of determining why “seconds”
production process is
producing poor-quality
External Failure Costs
• Customer complaint costs • Lost sales costs
– costs of investigating and – costs incurred because
satisfactorily responding to customers are dissatisfied
a customer complaint
resulting from a poor- with poor quality products
quality product and do not make additional
• Product return costs
– costs of handling and
replacing poor-quality
products returned by
• Warranty claims costs
– costs of complying with
product warranties