FUNDAMENTALS OF QUALITY

Dr. Tien Minh Do

Department of Industrial Management

School of Economics and Management
Hanoi University of Science and Technology
 Basic concepts of quality
• What is quality?
- Philip B. Crosby: .
• In his view, good, bad, high and low quality are meaningless concepts,
and the meaning of quality is conformance to requirements.

• Requirements mean both, producer and customer

- Joseph M. Juran:
• Quality means the product should be a good price, work well for the customer, be
distributed efficiently from the producer to the customer, and be supported efficiently
by the company.

• fitness for use in terms of design, conformance, availability, safety, and field use.
 Basic concepts of quality
• What is quality?
- W. Edwards Deming:
• Good quality means a predictable degree of uniformity and dependability with a quality
standard suited to the customer

- ISO 9000:
• "Degree to which a set of inherent characteristics fulfills requirements.“

- The Oxford Dictionary (2003):

• Quality is defined as being ‘the degree of excellence of a thing.
 Dimensions of quality
• What are dimensions of product quality
1. Performance: “Basic operating characteristics” - for example, how well a car
handles or its gas mileage.

2. Features: “Extra” items added to basic features” - such as a stereo CD or a leather

interior in a car.

3. Reliability: “Probability product will operate over time” – for example a TV will
work without repair for about seven years.

4. Conformance: “Meeting pre-established standards”- Fuel consumption of a car on

100km highway

5. Durability: “Life span before replacement”, The ability to last over time, resisting
wear, breakage, deterioration, etc. – for example, the fridge may last for 20 years
 Dimensions of quality
• What are dimensions of product quality
6. Serviceability: “Ease of getting repairs, speed & competence of
Repairs”

7. Aesthetics: “Look, feel, sound, smell or taste”

8. Safety: “Freedom from injury or harm”

9. Other perceptions: “Subjective perceptions based on brand name, advertising,

etc”
 Dimensions of quality
• What are dimensions of service quality
1. Time & Timeliness: “Customer waiting time, completed on time”

2. Completeness: “Customer gets all they asked for”

3. Courtesy: “Treatment by employees”

4. Consistency: “Same level of service for all customers”

5. Accessibility & Convenience: “Ease of obtaining service”

6. Accuracy: “Performed right every time”

7. Responsiveness: “Reactions to unusual situations”

What are Roles of the product and service quality?

1. What is role of quality in business competition?

2. What is role of quality in sustainable development?
 What is role of quality in competition?

1. Pressure on Enterprises
2. Quality-cost-competition interaction
 What is role of quality in competition?
• The enterprises are now under a big pressure of:
- successful competition
- profit maximization

• We have:
- Successful competition = high quality + low price
- Profit maximization = High revenue – low cost of production
High price x High output – low cost of production
• How to achieve two above mentioned targets:
- Low price ≠ high price
- High quality (strict control, diversity, flexibility, fast delivery, etc.) will lead to:
+ Less output
+ Low productivity High output = high productivity
+ High cost of production
 What is role of quality in competition?
• The quality-cost-competition interaction: The dilemma!
 What is role of quality in competition?
• The quality-cost-competition interaction:

Low
 What is role of quality in competition?
• The quality-cost-competition interaction:

How to make profit

Case 1 (In the normal market condition): (P1 – C1)xQ1
Case 2 (Increase profit by increasing price - p): (P2 – C1)xQ1
Case 3 (Increase profit by increasing output - Q): (P1 – C1)xQ2
Case 4 (Increase profit by reducing production cost - C) (P1 – C2)xQ1
 What is role of quality in competition?

• Reducing cost of production by removing 7wastes and improving

quality through Kaizen
 What is role of quality in sustainable development?
• Concept of sustainable development: "Sustainable development is development that
meets the needs of the present, without compromising the ability of future generations
to meet their own needs.“

• How quality contribute to sustainable development:

- Saving natural resources for future generations
- Reducing polluted wastes during the product life to environment
- Enhancing safety and security to society.