Management of Quality. Dictionary has many definitions: “Essential characteristic,” “Superior,” etc. Some definitions that have gained wide acceptance.

Management of Quality

Dictionary has many definitions: “Essential characteristic,” “Superior,” etc.

Some definitions that have gained wide acceptance in various organizations: “Quality is customer satisfaction,” “Quality is Fitness for Use.”

Quality is the ability of a product or service to consistently meet or exceed customer expectations.

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QUALITY MANAGEMENT

Meeting Customer Requirements. (stated or implied)

Through Totality of Good and Services.

By Conforming to a specified standards.

At a given Time or over a period of time.

At a price a customer can afforded and has willingness to pay.

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QUALITY MEANS

Before Industrial Revolution, skilled craftsmen served both as manufacturers and inspectors, building quality into their products.

Industrial Revolution changed this basic concept to interchangeable parts. Likes of Thomas Jefferson and F. W. Taylor (“scientific management”.

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History of quality management

• Statistical approaches to quality control started at Western Electric with the separation of inspection division. Pioneers like Walter Shewhart, George Edwards, W. Edwards Deming and Joseph M. Juran were all employees of Western Electric.

• After World War II, under General MacArthur's Japan rebuilding plan, Deming and Juran went to Japan.

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History of quality management

• Deming and Juran introduced statistical quality control theory to Japanese industry.

• The difference between approaches to quality in USA and Japan: Deming and Juran were able to convince the top managers the importance of quality.

• After 20 years Market started preferring Japanese products and American companies suffered immensely.

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History of quality management

• America woke up to the quality revolution in early 1980s. Ford Motor Company consulted Dr. Deming to help transform its operations.

• (By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese government had instituted The Deming Prize for Quality in 1950.)

• Managers started to realize that “quality of management” is more important than “management of quality.” Birth of the term Total Quality Management (TQM).

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History of quality management

QUALITY WAR 1980s

QUALITY WAR 1990s

Quality Gurus Walter Shewart

◦ In 1920s, developed control charts◦ Introduced the term “quality assurance”

W. Edwards Deming ◦ Developed courses during World War II to teach

statistical quality-control techniques to engineers and executives of companies that were military suppliers

◦ After the war, began teaching statistical quality control to Japanese companies

Joseph M. Juran◦ Followed Deming to Japan in 1954◦ Focused on strategic quality planning

Armand V. Feigenbaum◦ In 1951, introduced concepts of total quality control

and continuous quality improvement Philip Crosby

◦ In 1979, emphasized that costs of poor quality far outweigh the cost of preventing poor quality

◦ In 1984, defined absolutes of quality management—conformance to requirements, prevention, and “zero defects”

Kaoru Ishikawa◦ Promoted use of quality circles◦ Developed “fishbone” diagram ◦ Emphasized importance of internal customer

Quality Gurus

1924 - Statistical process control charts 1930 - Tables for acceptance sampling 1940’s - Statistical sampling techniques 1950’s - Quality assurance/TQC 1960’s - Zero defects 1970’s - Quality assurance in services

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Evolution of Quality Management

Characteristica) Technological

– Strength, Hardness and Surface Finishing

b) Psychological – Taste, Status and Beauty

c) Time Oriented – Reliability, Maintainability and Availability

d) Contractual – Contractual Provision

e) Ethical – Courtesy and Honesty

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QUALITY -------------- FITNESS FOR USE

• Quality of design– Quality of Market Research– Quality of Concept – Quality of specifications

• Quality of Conformance– Technology – Manpower – Management

• Availability – Reliability – Maintainability – Logistical Support

• Service 9-14

QUALITY DETERMINANTS

Example in Quality of Design in Car

IndustrySize

Appearance Comfort

Fuel Economy Comfort

Material Used

• Performance: main characteristics of the product/service

• Conformance : how well product/service conforms to customer’s expectations.

• Aesthetics: appearance, feel, smell, taste• Special Features: extra characteristics• Reliability: consistent

• Durability: Product life

• Perceived Quality: indirect evaluation ( reputation)

• Serviceability: after sale service 9-15

Strategic Quality Dimensions

PROPOSED BY PROF. DAVID GARDIN

FROM TO

Reactive Proactive

Detection & Inspection Prevention

Acceptable Quality Level

Zero Defect

Blame Placing Problem Solving

Cost or Quality Cost & Quality

Quality Cost More Quality Cost Less

Meet the Specification Continuous Improvement

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Changing Quality Assumptions

FROM TO

Quality Department has only quality Problem

R&D, Purchasing, Marketing, Operations etc have quality problem

Subordinate to Management team

Part of Management Team

Quality is Technical Quality is Managerial

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Changing Quality Assumptions

Convenience Reliability Responsiveness Time Assurance Courtesy Tangibles

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Service Quality

Quality Dimensions at Service

Dimension Examples1. Convenience Was the service center conveniently located?

2. Reliability Was the problem fixed?

3. Responsiveness Were customer service personnel willing and able to answer questions?

4. Time How long did the customer wait?

5. Assurance Did the customer service personnel seem knowledgeable about the repair?

6. Courtesy Were customer service personnel and the cashierfriendly and courteous?

7. Tangibles Were the facilities clean, personnel neat?

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Loss of business: Customer quietly stops buying

Liability: Due to damages or injuries Productivity: Rework or scrap (more

input) Costs

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The Consequences of Poor Quality

Enhance reputation Increase market share Greater customer loyalty Lower liability Cost Fewer complains Lower production cost Higher profits

Benefits of Good Quality

Top management Design Procurement Production/operations Quality assurance Packaging and shipping Marketing and sales Customer service

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Responsibility for Quality

Failure Costs - costs incurred by defective parts/products or faulty services.

Internal Failure Costs◦ Costs incurred to fix problems that are

detected before the product/service is delivered to the customer.

External Failure Costs◦ All costs incurred to fix problems that are

detected after the product/service is delivered to the customer.

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Costs of Quality

Appraisal Costs◦ Costs of activities designed to ensure quality

or uncover defects

Prevention Costs◦ All TQ training, TQ planning, customer

assessment, process control, and quality improvement costs to prevent defects from occurring

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Costs of Quality (continued)

◦Upon Received of Raw Materials ◦Before Costly & irreversible Operations

◦Before work that could hide defect

◦Upon Completion of a product◦Before stocking high value items◦Before shipment to customers

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When to perform Quality Control Inspection?

END OF PART – 1

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