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DEG/FHC 1

Quality

Introduction

DEG/FHC 2

A-Quality System

Various meanings of Quality

The meaning of quality differs depending upon circunstances

and perspectives:

Tangible products vs Services

Time-based or situational

‘Quality is how the recipient of the product or service views it:

before buying,

upon delivery,

after delivery, use… ’

(in Westcott)

DEG/FHC 3

Quality-Some common meanings(products or services)

Quality is conformance to requirements (Crosby)

Meeting specifications

Free of deficiencies

…

Quality is fitness for use (Juran)

Does what it is intended to do

Quality is meeting customer expectations (Deming)

Is satisfying the customer

What the customer says or perceives to be

Quality is exceeding customer expectations (James Harrington)

The extend to which customers perceive or believe it surpasses their

needs and expectations

Quality is superiority to competitors

How the products or services compare with the competions (or with

those offered by the organization in the past)

DEG/FHC 4

Other Formal Definitions of Quality(Garvin, D. A.)

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

And the respective perspectives

Perspectives

DEG/FHC 5

Customer

Distribution

products

and

services

needs

transcendent &

product-based user-based

value-based

Marketing

Design

Manufacturing

Information flow

manufacturing-

based

Product flow

DEG/FHC 6

Quality Characteristics

Quality characteristic: any feature or characteristic of a product or

service that is required to satisfy customer needs or to achieve fitness for

use.

Product characteristics (some typical):

Performance, functionality, durability, reliability, safety,

maintainabilty, size, weight, toxicity, colour, odour, taste,

flamabilty,… (measuring, controlling....tangibles)

Service characteristics (some typical):

Responsiveness, accuracy, efficiency, effectiveness,

credibility, courtesy,… (measuring, controlling...intangibles)

Characteristics

Which can also be grouped into:

Structural/Physical (size, weight, shape,...)

Sensory (colour, taste, smell,...)

Time-oriented (durability, reliability,...)

When the value of these characteristics is quantified or qualified they are termed as:… requirements

Ethical dimension

DEG/FHC 7

The Eight Dimensions of Product Quality(David A Garvin, “Competing on the Eight Dimensions of Quality”, Harvard

Business Review, November-December 1987)

DEG/FHC

8

#

DIMENSION DEFINITION

1. PerformanceThe primary operating characteristics of a product. How well it

performs when in use.

2. FeaturesThe “bells and whistles” of a product (i.e., those characteristics

that supplement the basic functions).

3. ReliabilityThe probability that a product will fail within a specified period

of time.

4. ConformanceThe degree to which the design or operating characteristics of

a product meet pre-established standards.

5. Durability

The amount of use a product can sustain before it physically

deteriorates to the point where replacement is preferable to

repair.

6. Serviceability The speed, courtesy, competence, and ease of repair.

7. Aesthetics The look, feel, taste, smell, and sound of a product.

8.Perceived

QualityThe impact of brand name, company image, and advertising.

The Seven Dimensions of Service Quality(Ref: Operations Management, Roberta S. Russell and Bernard W. Taylor III –

Prentice Hall.)

DEG/FHC 9

# DIMENSION DEFINITION

1. Time &

Timeliness Customer waiting time. On-time completion.

2. Completeness Customers get all they ask 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 correctly every time.

7. Responsiveness Reaction to special circumstances or requests.

DEG/FHC 10

Quality:parameters (or determinants)

Quality is a combination of three parameters:

Quality of design: the extent to which the design

satisfies customer needs and expectations and

regulatory requirements.

Quality of conformance: the extent to which the

product or service conforms to design standard.

Quality of use: the extent to which the user is able to

secure continuity of use (low cost of ownership, safe,

reliable, easy to use,…).

DEG/FHC 11

Broader Dimensions of Quality

Business quality: the extent to which the business serves

the needs of all stakeholders. Outward view.

Product quality: the extent to which the product and

services meet (or exceeds) the needs of specific customers and

regulatory requirements.

Organization quality: the extent to which the organization

maximizes its efficiency and effectiveness (productivity,

motivation, use of resources). Inward view. System quality

dimension.

The role of the Quality Function include(Goetsch)

Quality control (QC),

Quality assurance (QA),

Quality management system (QMS),

Metrology,

Inspection,

Training,

Auditing,

Reliability engineering,

Teamwork for problem-solving,

Supplier quality,

Product/Service quality

(continual quality improvement - CQI - !)D

DEG/FHC

12

The historical evolution of Total Quality Management has

taken place in four major stages (Fundamentals of TQM-Dahlgaard et al)

(1910) –Q Inspection – Salvage. Sorting. Corrective action Identify

sources of non-conformance.

QC (1924) – Control - Quality manual. Performance data. Self-

inspection. Product testing. Quality planning. Use of statistics.

Paperwork control.

QA (1950) – Assurance - Third-party approvals. Systems audits.

Quality planning. Quality manuals. Quality costs assessment. Process

control. Failure mode and effect analysis (FMEA). Non-production

operation.

TQM (1980) - Focused vision. Continuous improvements. Internal

customer. Performance measure. Prevention. Company-wide

application. Interdepartmental barriers elimination. Management

leadership. (in Japan, known as ‘CWQC’ and developed earlier ).

Sometimes referred as ‘Big Q’.

DEG/FHC

13

Quality Management

QP (Quality Policy): the overall quality direction and operational

philosophy of senior management as regards Quality.

QC (Quality Control): the operational techniques and activities

that are used to fulfill requirements for quality. This is the

narrow, traditional concept of QC: Formal use of testing;

Acting on the results of your tests,

Requires planning, structured tests, good documentation;

Relates to output - Quality Circle; Standards (ISO,…)

Later evolved to Total Quality Control (still focused on the

Operations). Both,referred as ‘Little q’ (an important part of Big Q)

DEG/FHC 14

Quality management

QI (Quality Improvement): the activities to increase the

effectiveness of quality in the stages of R&D and manufacturing.

( CQI)

QA (Quality Assurance): the planned and systematic actions to

provide adequate confidence that a product or service will

meet customer satisfaction for quality.

When QM is extended to the whole organization

then we have TQM.

DEG/FHC 15

DEG/FHC 16

Key elements of Total Quality Management(Goetsch)

Strategicaly-Based (vision, mission, goals, objectives, plans)

sustainable competitive advantage

Customer Focus (the driver): external and internal.

‘Obsession’ with quality (‘good is not enough’ attitude throughout

the Organization)

Teamwork

Empowerment

Scientific approach (facts, hard data base for benchmarking,

monitoring and improvements)

Long-term commitment and continual process improvement (CQI)

Education and training

DEG/FHC 17

TQ(M) and the Organization

Quality is strategic:

Mission and Policy (QP)

Planning, Deployment, and Documentation

System efectiveness (Tools and Metrics):

Balanced scorecard

Audits (internal, external; product, process,

system)

MBNQA (/BNQP)

ISO (9000 series,...)

Costs of Quality

…

DEG/FHC 18

Quality Management principles

1-Customer Focus

2-Leadership

3-Involvement of people/Empowerment

4-Process approach (connected activities)

5-Systems approach (interrelated processes)

6-Continual improvement

7-Factual approach to decision making

8-Mutually beneficial supplier relationships


Principle 1 - Customer-Focused Organization : "Organizations depend

on their customers and therefore should understand current and future

customer needs, meet customer requirements and strive to exceed

customer expectations".

Steps in application of this principle are:

Understand customer needs and expectations for products, delivery,

price, dependability, etc.

Ensure a balanced approach among customers and other stake

holders (owners, people, suppliers, local communities and society at

large) needs and expectations.

Communicate these needs and expectations throughout the

organization.

Measure customer satisfaction & act on results, and

Manage customer relationships.

DEG/FHC 19


Principle 2 - Leadership : "Leaders establish unity of purpose and direction of

the organization. They should create and maintain the internal environment in

which people can become fully involved in achieving the organization's

objectives."


Be proactive and lead by example.

Understand and respond to changes in the external environment.

Consider the needs of all stake holders including customers, owners, people, suppliers,

local communities and society at large.

Establish a clear vision of the organization's future.

Establish shared values and ethical role models at all levels of the organization.

Build trust and eliminate fear.

Provide people with the required resources and freedom to act with responsibility and

accountability.

Inspire, encourage and recognize people's contributions.

Promote open and honest communication.

Educate, train and coach people.

Set challenging goals and targets

Implement a strategy to achieve these goals and targets. DEG/FHC 20


Principle 3 - Involvement of People : "People at all levels are the

essence of an organization and their full involvement enables their abilities

to be used for the organization's benefit".


Accept ownership and responsibility to solve problems.

Actively seek opportunities to make improvements, and enhance

competencies, knowledge and experience.

Freely share knowledge & experience in teams.

Focus on the creation of value for customers.

Be innovative in furthering the organization’s objectives.

Improve the way of representing the organization to customers, local

communities and society at large.

Help people derive satisfaction from their work, and

Make people enthusiastic and proud to be part of the organization.

DEG/FHC 21


Principle 4 - Process Approach : "A desired result is achieved more efficiently

when related resources and activities are managed as a process."


Define the process to achieve the desired result.

Identify and measure the inputs and outputs of the process.

Identify the interfaces of the process with the functions of the organization.

Evaluate possible risks, consequences and impacts of processes on customers,

suppliers and other stake holders of the process.

Establish clear responsibility, authority, and accountability for managing the

process.

Identify internal and external customers, suppliers and other stake holders of the

process, and

When designing processes, consider process steps, activities, flows, control

measures, training needs, equipment, methods, information, materials and other

resources to achieve the desired result.

DEG/FHC 22

QM:Process approach(Introduction to Statistical Quality Control-Douglas C. Montgomery)

DEG/FHC 23

QM:Process approach (Quality-A critical introduction,Beckford-Routledge)

DEG/FHC 24


Principle 5 - System Approach to Management : "Identifying,

understanding and managing a system of interrelated processes for a

given objective improves the organization's effectiveness and efficiency."


Define the system by identifying or developing the processes that affect

a given objective.

Structure the system to achieve the objective in the most efficient way.

Understand the interdependencies among the processes of the system.

Continually improve the system through measurement and evaluation

Estimate the resource requirements and establish resource constraints

prior to action.

DEG/FHC 25


Principle 6 - Continual Improvement : "Continual improvement should be

a permanent objective of the organization."


Make continual improvement of products, processes and systems an objective

for every individual in the organization.

Apply the basic improvement concepts of incremental improvement and

breakthrough improvement.

Use periodic assessments against established criteria of excellence to identify

areas for potential improvement.

Continually improve the efficiency and effectiveness of all processes.

Promote prevention based activities.

Provide every member of the organization with appropriate education and

training, on the methods and tools of continual improvement such as the Plan-

Do-Check-Act cycle , problem solving , process re-engineering, and process

innovation.

Establish measures and goals to guide and track improvements, and

Recognize improvements. DEG/FHC 26


Principle 7 - Factual Approach to Decision Making : "Effective

decisions are based on the analysis of data and information."


Take measurements and collect data and information relevant to the

objective.

Ensure that the data and information are sufficiently accurate, reliable

and accessible.

Analyze the data and information using valid methods.

Understand the value of appropriate statistical techniques, and

Make decisions and take action based on the results of logical analysis

balanced with experience and intuition.

DEG/FHC 27


Principle 8 - Mutually Beneficial Supplier Relationships : "An organization

and its suppliers are interdependent, and a mutually beneficial relationship

enhances the ability of both to create value."


Identify and select key suppliers.

Establish supplier relationships that balance short-term gains with long-

term considerations for the organization and society at large.

Create clear and open communications.

Initiate joint development and improvement of products and processes.

Jointly establish a clear understanding of customers' needs.

Share information and future plans, and

Recognize supplier improvements and achievements.

DEG/FHC 28

TQM System model (Krishnamoorthi)

DEG/FHC 29

Main references

Readings:

Quality Mgt-Goetsch/Davies (Ch. 1,2)

The Certified Manager of Quality Handbook-

Westcott (Introd., Ch. 11)

Quality Engineering-Krishnamoorthi (Ch. 1)

DEG/FHC 30

Appendix

History of Quality Improvement

-Introduction to Statistical Quality Control,

Douglas C. Montgomery.

DEG/FHC 31

DEG/FHC 32

DEG/FHC 33

DEG/FHC 34

DEG/FHC 35

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