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Date 18 dec 2007

Definition of “Quality”
➨ Fitness for purpose or use
➨ Conformance to specified requirements
➨ The totality of features and characteristics of
a product or service that bears on its ability
to satisfy the stated and/or implied needs
New Definition of “Quality”
➨ Meeting and anticipating customer’s
requirements, stated or implied
★ At a given time and over a period of time
★ At a price the customer can afford and is willing
to pay
➨ Introducing new and better products into the
market faster than competitor
➨ Continuously bringing down the cost of
19 dec 2007
Thus “Quality” is termed as
simply the price of entering the market
and no more conformance to
specification or competitive edge
and re-defined as
“Value” perceived by the customers
Customer Delight if Value / Price is
much greater than 1
“Quality” is better defined

Error Free OR Defect Free performance

“Do the right things right the first time

and every time”

The changing trend...

Six Sigma Quality

Total Quality Management

Quality Assurance Management - ISO 9000

Company wide Quality Control Management

Quality Control Management

Inspection Management
Evolution of Quality Management

Inspection Salvage, sorting, grading, blending, corrective

actions, identify sources of non-conformance
Develop quality manual, process performance
Quality data, self-inspection, product testing, basic
Control quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
planning, comprehensive quality manuals, use of
Assurance quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.

TQM Policy deployment, involve supplier & customers,

involve all operations, process management,
performance measurement, teamwork, employee
Quality and Productivity
• Productivity = Output/Input (Increase Nr.& Dr. or
Dec.Dr. or Inc. Nr.)
Accomplished by:
– Improved efficiency: lowered op.costs, reducing
– Improved effectiveness:better decision making,
reducing breakdowns
– Achieving higher performance:reducing
– Better organisational health: employee morale,
satisfaction and cooperation
TQM as Foundation
 Meeting customer requirements
 Reduce development cycle times
 Just in time / demand flow manufacturing
 Reducing product and service costs
 Improving administrative systems training
Quality Management Philosophies

• W Edwards Deming : 14 Principles

• Joseph Juran : Quality Control Handbook

• Philip Crosby: Zero Defects, quality is free

Principles of TQM
 Quality can and must be managed and measured
 Goals are based on requirements, not negotiated
 Satisfaction of owners, customers, employees, suppliers
and society
 Involvement of people
 people are the most valuable asset
 great accomplishments are possible by helping people
achieve their potential
 this should be the main job of management
 Continuous improvement based on objective data
 statistical analysis is an essential tool
 Management must be involved and lead
 Plan and organise for quality improvement
• NOTES: Quality Management Drivers are:
• Focus: Social responsibility. Do not confuse this with Customer assurance only, that
is quality assurance

• Motivation: Management Leadership. Therefore it is internally generated

• Application Areas: Company-wide scope. The entire organisation.

• Key Participants: Involvement at all levels Involves all management and employess.

• Principal Drivers: Company Culture to do the right things right. Continuous product
and process improvement

• Desired end goal: Quality Cost approach. Overall business results and
• Ref: Laszlo G P Implementing a quality management program: three Cs of success:
Commitment, culture and cost.