Topic 1:

Introduction to Q
What is Quality

Chapter 1 – Understanding Quality Concepts

Lecture Outline
1.1 Define the concepts and techniques of quality management.
1.2 Differentiate quality from different perspectives.

1.3 Comprehend the importance of quality for competitive

advantage.

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Defining Quality
Quality has been defined in a number of ways.

Perfection Fast delivery

Providing a good, usable product
Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers

Total customer service and satisfaction

Compliance with policies and procedures

Formal Definitions of Quality

 Transcendent definition: excellence

 Product-based definition: quantities of
product attributes
 User-based definition: fitness for intended
use
 Value-based definition: quality vs. price
 Manufacturing-based definition:
conformance to specifications
4
Product Quality Dimensions (1 of 2)

8 + 1 dimensions of product quality - The most commonly cited & used

 Performance - Efficiency with which a product achieves its

intended purpose
 Features - Attributes of a product that supplement the
product’s basic performance
 Reliability - The propensity for a product to perform
consistently over its useful design life
 Conformance - Adherence to certain numeric dimensions
for the product’s performance

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Product Quality Dimensions (2
of 2)
 Durability - The degree to which a product tolerates
stress or trauma without failing
 Serviceability - The ease of repair for a product
 Aesthetics - The degree to which product attributes are
matched to consumer preferences
 Safety – Assurance that customer will not suffer injury
or harm from a product
 Perceived quality - A customer’s understanding of the
goodness of a product

Although the list of dimensions is the most widely cited and

used, is not exhaustive.

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Service Quality Dimensions

 Tangibles - The physical appearance of the service facility, the

equipment, the personnel, and the communication materials
 Service reliability - The ability of the service provider to
perform the promised service dependably and accurately
 Responsiveness - The willingness of the service provider to
be helpful and prompt in providing service
 Assurance - The knowledge and courtesy of employees and
their ability to inspire trust and confidence
 Empathy - Caring, individualized attention from the service
firm

Source: Parasuraman, A., Zeithamel, V., and Berry, L. (1984). A Conceptual

Model of Service Quality (Report No. 84-106). Marketing Science Institute

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 Quality Perspectives in the
Value Chain
transcendent &
product-based user-based
needs
Marketing
Customer

products value-based Design

and manufacturing-
services based
Manufacturing
Distribution

Information flow
8
Product flow
Key Idea

Because individuals in different business

functions speak different “languages,” the
need for different views of what
constitutes quality at different points inside
and outside an organization is necessary to
create products of true quality that will
satisfy customers’ needs.
Functional Perspective on
Quality
 Organic view of the organization:
 Sees the whole as the sum of different parts, uniting to
achieve an end

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A Supply Chain Perspective

 Global supply chain model:

 Upstream processes (supply management) - All
activities involving interaction with suppliers
 Core processes (operations management) -
Traditional process improvement
 Downstream processes (customer relationship
management) - All activities involving interaction
with customers

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An Engineering Perspective
 The engineering view of quality is technically oriented, focusing on
statistics and technical specification that are needed to produce high-
quality products.

Design Life Cycle

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An Engineering Perspective (cont’d)
 Shewart’s control process:
 The process underlying Statistical Process Control (S P C)

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An Operations Perspective
 Systems view:
 Understanding that product quality is the result of the
interactions of several variables, such as machines,
labor, procedures, planning, and management
 Focuses management on the system as the cause of
quality problems

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Strategic Management Perspective

 Strategy
 The planning process used by an organization to
achieve a set of long-term goals
 Mission
 Why the organization exists
 Core values
 Guiding principles that simplify decision making in
that organization

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Strategic Management Process & Its Components

Quality related goals, tactics, and strategies are becoming more a part of the
strategic planning process instead of a separate entity. The ultimate goal of
strategic quality planning is to aid an organization to achieve sustainable
competitive advantage.
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A Marketing Perspective

 Marketing
 Activities involved with directing the flows of
products and services from the producer to the
consumer
 Customer relationship management
 Satisfying the customer and delivering value to the
customer
 Perceived quality
 The customer’s view of quality

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A Marketing Perspective (cont’d)
 Primary marketing tools for influencing customer perceptions
of quality are price and advertising.
 The customer is the focus of marketing-related quality
improvement.

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A Financial Perspective
 The law of diminishing marginal returns:
 There is a point at which investment in quality
improvement will become uneconomical
 The pursuit of higher levels of quality will result in
higher expenditures
 To invest beyond the minimum cost level will result
in noneconomic decisions

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The Human Resources Perspective
 Employee empowerment
 Moving decision making to the lowest level possible
in the organization
 Organizational design
 Design of reward systems, pay systems,
organizational structure, compensation, training
mechanisms, and employee grievance arbitration
 Job analysis
 Collecting detailed information about a particular
job

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The Three
Spheres of
Quality

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 Activities relating to Quality Control include the following:
• Monitoring process capability and stability
• Measuring process performance
• Reducing process variability
• Optimizing processes to nominal measures
• Performing acceptance sampling
• Developing and maintaining control charts
 Quality Assurance activities  Quality Management activities such
include tasks such as as
• Failure mode and effects • Planning for quality improvement
analysis
• Creating a quality organizational
• Concurrent engineering
culture
• Experimental design
• Providing leadership and support
• Process improvement
• Providing training and retraining
• Design team formation and
• Designing an organizational system
management that reinforces quality ideals
• Off-line experimentation • Providing employee recognition
• Reliability/durability product
• Facilitating organizational \
testing
communication
 Other Perspectives on Quality

 Value-added perspective
 A subjective assessment of the efficacy of every step of the
process for the customer
 Cultural perspectives
 Differences in tastes and preferences among different
cultures
 Contingency theory perspective
 There is no theory or method for operating a business that
can be applied in all instances, but its effectiveness is
contingent on how well it matches a specific setting or
situation.

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 The Concept of Personal Quality
Definition
Ranjit (2011):
“The degree to which an individual displays positive personal attributes, practices
good relationships with other people and shows superior work performance."

Source: Ranjit, S. M. (2011). Enhancing personal quality. TQM Consultations Sdn. Bhd.

Opatha & Lim (2014):

“Good Personal Quality” is defined as the totality of positive attributes one must possess in
order to achieve success and progress of success at work and personal life. It is the
aggregate of the entire good personal attributes one must possess to become a person of
excellence at work life and personal life as well. Its dimensions include personal character,
personal management and personal key success factors.

Source: Opatha, H. D. N. P., & Lim, K. T. (2014). Enhancing your personal Q. UUM Press.

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 The Concept of Personal Quality

Source: Opatha, H. D. N. P., & Lim, K. T. (2014). Enhancing your personal Q. UUM Press.

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Quality and Profitability

Improved quality Improved quality

of design of conformance

Higher perceived Higher Lower

value prices manufacturing and
service costs
Increased market Increased
share revenues

Higher profitability 26
Quality and Competitive Advantage

CA denotes a firm’s ability to achieve market superiority.

 Is driven by customer wants and needs

 Makes significant contribution to business success
 Matches organization’s unique resources with
opportunities
 Is durable and lasting
 Provides basis for further improvement
 Provides direction and motivation

Quality supports each of these characteristics.

27

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Copyright © 2017 Pearson Education, Inc. All Rights Reserved
What is Quality?
Summary
`
 There are different perspectives on
quality
 There is disagreement on the definition
of quality
 Quality control, quality assurance and
quality management focus on different
aspects of quality
 Quality improvement requires a complex
mix of factors.
 Quality is simply the foundation for
achieving competitive advantage.
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