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Productivity and Quality Tools
QUALITY MANAGEMENT
AN OVERVIEW
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One of the most important issues
that businesses have focused on inthe last 20-30 years has beenquality.
As markets have become muchmore competitive - quality hasbecome widely regarded as a key
ingredient for success in business.
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Meaning of Quality Websters Dictionary
degree of excellence of a thing
American Society for Quality
totality of features and characteristics thatsatisfy needs
Consumers and Producers Perspective
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This is a modern definition of quality
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This is a traditional definition
Quality of design
Quality of conformance
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What is quality? Quality is first and foremost about
meeting the needs and expectations
of customers. It is important tounderstand that quality is about morethan a product simply "working
properly".
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QUALITY
Quality is the ability of a product or serviceto consistently meet or exceed customer
expectations. Quality is defined as meeting or exceeding
customers requirements now and in the
future, i.e. the product or service is fit for the
customers use.
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quality as representing all the
features of a product or servicethat affect its ability to meetcustomer needs.
If the product or service meets allthose needs - then it passes thequality test. If it doesn't, then it is
sub-standard.
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What is Quality?
Fitness for Use
Conformance to Specifications
Producing the Very Best Products Excellence in Products and Services
Total Customer Satisfaction
Exceeding Customer Expectations Quality improvement starts with reducing Product
VARIABILITY.
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1 What is Quality? Inspection (Detection)
Quality Control (Detection using statistics)
Quality Assurance (Prevention)
Zero Defects e.g. ISO 9001:2000 Total Quality Management
e.g. EFQM Excellence Model
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Statistical Quality Control (SQC) The application of statistical techniques to the
control of quality (SPC, Acceptance Sampling, etc.)
Statistical Process Control (SPC) The application of statistical techniques to the
control of processes (sometimes considered asubset of SQC)
Total Quality Management (TQM) An all-encompassing approach to quality
consistent with Demings 14 points
Some definitions-
Definitions from Quality Systems Terminology, American
Society for Quality Control, ANSI/ASQC A3-1987
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Statistical Process Control How do we reduce Product Variability?
We use Statistical Process Control ! (SPC)
Statistical Process Control: The application
of statistical techniques to the control andimprovement of processes.
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Meaning of Quality:
Consumers Perspective Fitness for use
how well product orservice does what it is
supposed to
Quality of design
designing qualitycharacteristics into aproduct or service
A Mercedes and a Fordare equally fit for use,but with differentdesign dimensions
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Dimensions of Quality:
Manufactured Products 1 Performance
basic operating characteristics of a product; how
well a car is handled or its gas mileage 2 Features
extra items added to basic features, such as astereo CD or a leather interior in a car
3 Reliability probability that a product will operate properly
within an expected time frame; that is, a TV willwork without repair for about seven years
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Dimensions of Quality:Manufactured Products (cont.)
4 Durability
how long product lasts before replacement
5 Serviceability
ease of getting repairs, speed of repairs,
courtesy and competence of repair person
6 Conformance
degree to which a product meets pre
established standards
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Dimensions of Quality:Manufactured Products (cont.)
7 Aesthetics how a product looks, feels, sounds, smells,
or tastes 8 Perceptions or Perceived Quality
subjective perceptions based on brandname, advertising, and the like
9 Safety assurance that customer will not suffer
injury or harm from a product; an
especially important consideration forautomobiles
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Dimensions of Quality:Service
1 Time and Timeliness
How long must a customer wait for service,
and is it completed on time? Is an overnight package delivered
overnight?
2 Completeness: Is everything customer asked for provided?
Is a mail order from a catalogue company
complete when delivered?
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Dimensions of Quality:Service (cont.)
3 Courtesy:
How are customers treated by employees?
Are catalogue phone operators nice andare their voices pleasant?
4 Consistency
Is the same level of service provided toeach customer each time?
Is your newspaper delivered on time every
morning?
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Dimensions of Quality:Service (cont.)
5 Accessibility and convenience How easy is it to obtain service?
Does a service representative answer you calls quickly?
6 Accuracy Is the service performed right every time?
Is your bank or credit card statement correct everymonth?
7 Responsiveness How well does the company react to unusual
situations?
How well is a telephone operator able to respond to acustomers questions?
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Meaning of Quality:Producers Perspective
8 Quality of Conformance
Making sure a product or service is
produced according to design if new tires do not conform to specifications,
they wobble
if a hotel room is not clean when a guest
checks in, the hotel is not functioning accordingto specifications of its design
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Meaning of Quality:A Final Perspective
Consumers and producersperspectives depend on each other
Consumers perspective: PRICE
Producers perspective: COST
Consumers view must dominate
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Fitness forConsumer Use
Producers Perspective Consumers Perspective
Quality of Conformance
Conformance to
specifications Cost
Quality of Design
Quality characteristics
Price
MarketingProduction
Meaning of Quality
Meaning of Quality
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Quality Gurus
Walter Shewart In 1920s, developed control charts
Introduced the termquality assurance
W. Edwards Deming Developed courses during World War II to teach statistical
quality-control techniques to engineers and executives ofcompanies 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
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Quality Gurus (cont.)
Armand V. Feigenbaum In 1951, introduced concepts oftotal 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 managementconformance to requirements, prevention, andzero
defects Kaoru Ishikawa
Promoted use ofquality circles
Developedfishbone diagram
Emphasized importance of internal customer
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Evolution of QualityManagement
1924 - Statistical process control charts
1930 - Tables for acceptance sampling
1940s - Statistical sampling techniques1950s - Quality assurance/TQC
1960s - Zero defects
1970s - Quality assurance in services
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Gurus!
http://www.lecturer-uk.co.uk/keele/Juran.ppthttp://www.lecturer-uk.co.uk/keele/Taguchi.ppthttp://www.lecturer-uk.co.uk/keele/Shingo.ppthttp://www.lecturer-uk.co.uk/keele/Ishikawa.ppthttp://www.asq.org/join/about/history/shewhart.htmlhttp://www.lecturer-uk.co.uk/keele/Peters.ppthttp://www.qmtzone.f9.co.uk/html/feiganbaum.htmlhttp://www.lecturer-uk.co.uk/keele/Crosby.ppthttp://www.lecturer-uk.co.uk/keele/Deming.ppt7/31/2019 Quality Management Overview Nic
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The Quality Gurus
Walter ShewhartFather of statistical quality control
W. Edwards Deming Joseph M. Juran
Armand Feignbaum
Philip B. Crosby
Kaoru Ishikawa
Genichi Taguchi
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Key Contributors to QualityManagement
Contributor
Deming
Juran
Feignbaum
Crosby
Ishikawa
Taguchi
Known for
14 points; special & common causes ofvariation
Quality is fitness for use; quality trilogy(Q planning, Q control, Q improvement)
Quality is a total field
Quality is free; zero defects
Cause-and effect diagrams; qualitycircles
Taguchi loss function
Table 9.2
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The early 50s
Three gurus who took the message to
Japan
Deming
Juran
Feigenbaum
Guru summaries adapted from Prof Tony BendellAvailable at:www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfand from
http://www.qmtzone.f9.co.uk/html/guru.html
http://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.lecturer-uk.co.uk/keele/Deming.ppt7/31/2019 Quality Management Overview Nic
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Dr W Edwards Deming
Deming (1900-1994) is arguably the most famous of all the
Quality Gurus and is often credited with Japan's rise to
industrial dominance.
He was born in 1900 and was awarded a doctorate in
mathematical physics in 1928 by Yale University.
His approach to quality draws heavily on Shewhart's concept
ofstatistical process control.
Deming's work had initially no impact in America primarily
because in the postwar booming market, everything built was
sold.
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Dr W Edwards Deming
For many years at the start of his career he worked as a
statistician for the US Government Service, specialisingin statistical sampling techniques.
After the war, in 1946, he went to Japan as an Adviserto the Japanese Census. The Union of JapaneseScientists and Engineers (JUSE) invited him to lecture onquality control techniques to engineers and senior
managers. His contribution to rebuilding the Japaneseeconomy was recognized by the Emperor who awardedhim the Second Order of the Sacred Treasure (Bendell,1991).
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Dr W Edwards Deming
His main message to the Japanese was that variability is
inherent in any process and is due to two types of
causes, namely, special causeswhich are easily
assignable, identifiable and solvable by operators
themselves, and common causeswhich are due to
design and operation and only management can
eliminate. Deming argues that 94 per cent of the qualityproblems are the responsibility of management
Dr W Edwards Deming
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Dr W Edwards Deming
Throughout the 1950s, Deming conducted manylectures in Japan on statistical methods.
Included in these lectures were many of theprinciples now constituting the "company-wide"approach or TQM.
Whilst much of Deming's message to the Japanese
reflected his statistical background, his workextended far beyond statistical methods.
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Dr W Edwards Deming
He encouraged the Japanese to adopt a systematicapproach to problem solving, later to become known asthe PDCA (Plan, Do, Check, Action) cycle.
He also urged senior managers to become more
actively involved in quality improvement programmes.
It was not until the 1970s that managers in the Westbegan to consider whether Deming's methods could dofor their companies what they had done for theJapanese.
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Dr W Edwards Deming
The PDCA cycle
PLAN
DOCHECK
ACT
http://www.lecturer-uk.co.uk/keele/Juran.ppt7/31/2019 Quality Management Overview Nic
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Dr Joseph Juran
Born 1904 in the Balkans, naturalised
American
Went to Japan in the early 50s
Highly respected internationally,
particularly in Japan
Concerned with the wider aspects of
management, beyond quality
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Dr Joseph Juran
Manufacturing-based approach
Introduced the concept of the internal
customer
See Kelemen p28 for his 8 step
planning map.
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Dr Joseph Juran
Quality trilogy
QualityControl QualityPlanning
QualityImprovement
Holding the gains
Breakthrough Pareto analysis
Project by project
http://www.qmtzone.f9.co.uk/html/feiganbaum.html7/31/2019 Quality Management Overview Nic
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Dr Armand Feigenbaum
Two key texts:
Quality Control: Principles, Practiceand Administration 1951
Total Quality Control: Engineering andManagement 1961
Value-based approach
best for the customer use at the rightselling price (in Kelemen 2005 p29)
http://www.qmtzone.f9.co.uk/html/feiganbaum.htmlhttp://www.qmtzone.f9.co.uk/html/feiganbaum.html7/31/2019 Quality Management Overview Nic
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Dr Armand Feigenbaum Totalquality:
Quality is neither a department, nor a
technique, nor a philosophy. It is afundamental way of managing. Central
to this is the recognition that, without
quality, your customersare simply notgoing to buy from you.
www.managementfirst.com/quality/interviews/feigenbaum
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Dr Armand Feigenbaum
Costingquality:
Prevention costs planning systems
and processes to avoid defects beforethey happen
Appraisal costs inspection and qualitycontrol
Internal failure costs scrap, rework
External failure costs warranty costs,complaints
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From the late 50s
Three Japanese gurus who developed
the message
Ishikawa
Taguchi
Shingo
Guru summaries adapted from Prof Tony BendellAvailable at:www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfand from
http://www.qmtzone.f9.co.uk/html/guru.html
http://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.lecturer-uk.co.uk/keele/Ishikawa.ppt7/31/2019 Quality Management Overview Nic
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Dr Kaoru Ishikawa
Professor Ishikawa (1915-1989) studied Applied
Chemistry at the Engineering Department of Tokyo
University.
During his life he was awarded many prizes for his
work and writings on Quality Control and is best known
as the pioneer of the Quality Circle movement in
Japan during the 1960s.
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Dr Kaoru Ishikawa
Like many of the Japanese "gurus",Ishikawa was keen to promote the use ofstatistical techniques in commerce and
industry.
In particular, Ishikawa believed that allemployees should have a basic training intechniques such as:
* Bar Charts and Histograms* Pareto Analysis* Scatter Diagrams
* Cause and Effect Analysis
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Quality circles:
A voluntary group of some 5-10 workers from thesame workshop who meet regularly and are led by a
foreman, assistant foreman, work leader or one of theworkers.
Their aim is to:
contribute to the improvement and development of the
enterprise by dealing with problems and looking for ways toimprove the quality of the process and product
Respect human relations and build a happy workshop
offer job satisfaction via the drawing out of each personscapabilities to achieve their potential.
Dr Kaoru Ishikawa
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Dr Kaoru Ishikawa
The Fishbone or Ishikawa diagram
Methods Equipment
Materials People
Result
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Dr Kaoru Ishikawa
Away from his technical contributions, Ishikawawas a strong advocate of the Company-Widemovement.
He saw this approach as implying that:
"quality does not only mean the quality of the
product, but also of after-sales services,management, the company itself and the humanbeings who work in it".
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Dr Genichi Taguchi
During the Second World War he worked in the
Navigation Institute of the Imperial Japanese
Navy and then the Institute of Statistical
Mathematics at the Ministry of Education.
In 1950 he joined the Nippon Telephone and
Telegraph Company and during his 12 year staydeveloped many of his methods.
http://www.lecturer-uk.co.uk/keele/Taguchi.ppt7/31/2019 Quality Management Overview Nic
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Dr Genichi Taguchi In the early 1970s Taguchi developed the concept of
the "Quality Loss Function" and by the end of thatdecade was highly acclaimed in his own country.
It was not until 1980 that Western companies,particularly in the USA began to implement Taguchi'smethods. The most notable of these being Xerox, Fordand ITT.
Taguchi had made little impact in Europe until theInstitute of Statisticians organised a conference inLondon in 1987 to discuss his methods.
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Dr Genichi Taguchi
The UK Taguchi Club, (now the Quality Methods Association) wasformed later that year.
Taguchi's methodology is geared towards pushing the concepts ofquality and reliability back into the design stage, ie, prior tomanufacturing.
His method provides an efficient technique for designing product
tests prior to beginning manufacturing.
Taguchi methodology is fundamentally a prototyping technique thatenables engineers/designers to produce a robust design which cansurvive repetitive manufacturing in order to deliver the functionalityrequired by the customer.
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Shigeo Shingo
Shigeo Shingo is the least known Japanesequality writer in the West. His approachemphasizes production rather than
organizational issues, and it is thusmanufacturing-based. He believed thatstatistical methods detect errors too late in themanufacturing process. Shingo's methodemphasizes 'zero defects' through goodengineering and process investigation andrectification (Shingo, 1986).
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Shigeo Shingo His method,poka-yokeor zero defects,
stops the process whenever a defect occurs,defines the cause and prevents the
recurring source of the defect. The methodrelies on a process of continuouslymonitoring potential sources of error. Themachines used in this process are equipped
with feedback instrumentation that identifieserrors before they become defects, soremedial action can be taken.
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From the 70s
Later American gurus
Crosby
Peters
Guru summaries adapted from Prof Tony BendellAvailable at:www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfand from
http://www.qmtzone.f9.co.uk/html/guru.html
http://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.cems.uwe.ac.uk/~jmcobby/industrialstats/qualitygurus.pdfhttp://www.lecturer-uk.co.uk/keele/Crosby.ppt7/31/2019 Quality Management Overview Nic
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Phil Crosby
Philip Crosby is perhaps the most well marketed andcharismatic of the American Quality Gurus.
He is a graduate of the Western Reserve University,and after serving with the US Navy in the Korean war,he held a variety of quality control jobs.
He spent fourteen years working his way up within ITT,eventually becoming Corporate VP and Director ofQuality, with worldwide responsibilities.
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Phil Crosby In 1979 Crosby published his famous "Quality is
Free" book, and as a result of that success, left ITTto form his own company, Philip Crosby AssociatesInc.
Crosby's name is most strongly associated with the"Do it Right First Time" and "Zero Defects"concepts.
Crosby believes that most companies spend up to5% of their operating revenues in correctingmistakes which need not have been made in thefirst place.
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Phil Crosby
He does not subscribe to the view that
workers should take primary responsibility
for quality. He places great emphasis on
the "top-down" approach, stressing that
senior management is entirely responsible
for quality
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Phil Crosby Crosby defines quality as conformance to
requirements which the company itself hasestablished for its products based directly on its
customers' needs. Quality is an inherentcharacteristic of the product, not an addedelement. Crosby argues that management is toblame for the vast majority of the qualityproblems within an organization. Moreover, themost important performance measurementwithin an organization is the cost of qualityandit is cheaper to get things right first time.
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Phil Crosby Crosby defines Four Absolutes of Quality Management:
1. Quality is defined as conformance to requirements, not
"goodness" or "elegance".
2. The system for causing quality is prevention, not appraisal.
3. The performance standard must be Zero Defects, not "that's
close enough".
4. The measurement of quality is the price of non-conformance.
See Kelemen p37 for his 14 steps to quality improvement
http://www.lecturer-uk.co.uk/keele/Peters.ppt7/31/2019 Quality Management Overview Nic
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Tom Peters Tom Peters is an American consultant who has
researched into the secrets of most successful
American companies. In his most popular book, In
Search of Excellence(with Waterman, 1982) he
presents Excellence as a universal icon that can guide
businesses and sift through winners and losers.
Excellence is synonymous with quality yet it isindefinable through objective and rational methods of
research.
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Tom Peters
In a second book,A Passion forExcellence(1985), Peters and Austinidentify leadership as central to thequality improvement process. Theysee management by walking about(MBWA) as the basis of leadership for
it enables the leader to keep in touchwith the workers, customers andsuppliers.
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Tom Peters
In his third book, Thriving on Chaos
(1987) he prescribes ways of bringing
about a management revolution in the
West. Such ways tend to focus on the end-
user as the most important factor in
judging quality efforts.
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Quality management
Quality management is concernedwith controlling activities with the aim
of ensuring that products and servicesare fit for their purpose and meet thespecifications.
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Quality assurance
Quality assurance is about how abusiness candesignthe way a product
of service is produced or delivered tominimize the chances that output willbe sub-standard. The focus of quality
assurance is, therefore on the productdesign/development stage.
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QUALITY ASSURANCEWhy focus on these stages? The idea is
that - if the processes and procedures
used to produce a product or service aretightly controlled - then quality will be"built-in". This will make the productionprocess much more reliable, so there
will be less need to inspectproduction output (quality control).
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QUALITY ASSURANCE
Quality assurance involvesdeveloping close relationships with
customers and suppliers. A business willwant to make sure that the suppliersto its production process understand
exactly what is required - and deliver!
Quality Assurance vs. StrategicA h
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Q y gApproach
Quality Assurance Emphasis on finding and correcting defectsbefore reaching market
Strategic Approach
Proactive, focusing on preventing mistakesfrom occurring
Greater emphasis on customer satisfaction
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Dimensions of quality
QUALITY
PerformanceFeatures
Reliability
AestheticsResponse
Serviceability
Durability
Conformance
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Dimensions of Quality
Performance- main characteristics ofthe product/service
Aesthetics- appearance, feel, smell,taste
Special Features- extra
characteristics
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Conformance- how well product/serviceconforms to customers expectations
Reliability- consistency of performance
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Dimensions of Quality (Contd)
Durability- useful life of theproduct/service
Perceived Quality -indirectevaluation of quality (e.g. reputation)
Serviceability - service after sale
Examples of Quality
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p Q yDimensions
Dimension
1. Performance
2. Aesthetics
3. Special features
(Product)Automobile
Everything works, fit &finishRide, handling, grade of
materials usedInterior design, soft touch
Gauge/control placementCellular phone, CD
player
(Service)Auto Repair
All work done, at agreedpriceFriendliness, courtesy,
Competency, quicknessClean work/waiting area
Location, call when readyComputer diagnostics
Examples of Quality Dimensions
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Examples of Quality Dimensions(Contd)
Dimension
5. Reliability
6. Durability
7. Perceivedquality
8. Serviceability
(Product)Automobile
Infrequency of breakdowns
Useful life in miles, resistanceto rust & corrosion
Top-rated car
Handling ofcomplaints and/orrequests for information
(Service)Auto Repair
Work done correctly,ready when promised
Work holds up overtime
Award-winning service
department
Handling of complaints
Service Quality
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Service Quality
TangiblesConvenience
Reliability
ResponsivenessTime
Assurance
Courtesy
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Examples of Service QualityDimension Examples1. Tangibles Were the facilities clean, personnel neat?
2. Convenience Was the service center conveniently located?
3. Reliability Was the problem fixed?
4. Responsiveness Were customer service personnel willing andable to answer questions?
5. Time How long did the customer wait?
6. Assurance Did the customer service personnel seemknowledgeable about the repair?
7. Courtesy Were customer service personnel and thecashierfriendly and courteous?
Determinants of Quality (contd)
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Determinants of Quality (cont d)
Quality of design
Intension of designers to include or excludefeatures in a product or service
Quality of conformance
The degree to which goods or servicesconform to the intent of the designers
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The Q alit S stem
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Purchasing
& Inventory
AssessmentOccurrence
Management
Information
Management
Process
ImprovementCustomer
Service
Facilities &
Safety
The Quality System
Organization Personnel Equipment
Documents
& Records
Process
Control
(QC & EQA) &
SpecimenManagement
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Competitive Advantage
The terminology used in the field
of strategic management that might
possibly garner the prize for the mostoverworked and least understood catch-
phrase is "competitive advantage."
The extension of that phrase into
"sustainable competitive advantage" is
currently an elaboration of ambiguity.
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that which one firm can do better thananother to satisfy customer requirements.
Some benefit value provided by a product orcompany, often unique to the organization
concerned, that gives it superiority in themarket place.
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Condition which enables a company tooperate in a more efficient otherwisehigher-quality manner than the companiesit competes with, and which results inbenefits accruing to that company.
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process by which a company studies the
actions of its major competitors in order
to determine what specific strategies theyare following and how those strategies
affect its own; also used by marketers as
they try to develop competitive
advantages, ...
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Order Qualifiers and Winners
Order winners
are the criteria that differentiates
the products and services of onefirm from another
criterion that differentiates yourservice/product above the competition price, quality, reliability
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