CH 6

CH 6 – Managing Quality
Definitions:
1. Quality:
a. ASQ definition: the totality of features and characteristics of a product or service
that bears on its ability to satisfy stated or implied needs
b. customer-driven (user-based) definition: better performance, more features. It
refers to Performance Quality
c. manufacturing-based definition: conformance to standards, making it right the
first time. This refers to Conformity Quality.
d. Product-based: specific and measurable attributes of the product. Refers to
design quality.
2. Total Quality Management: Management of an entire organization so that it excels in
all aspects of products and services that are important to the customer
3. The Design Quality Level: is the quality level that Maximizes the Difference between
Total Costs and Value.
4. Costs of quality: costs of doing things wrong – price of non-conformance.
5. Value: to what extent the customer is willing to pay for different quality levels
6. Quality Function Deployment (QFD): a technique of the Design Quality process
developed by Yaji Akao. It ensures that customer requirements are factored into every
aspect of the process, from product planning to production floor.
List:
1. 3 implications of good quality:
1. Company’s reputation: (it will show in:)
i. Perception of new product
ii. Employment practices
iii. Supplier relations
2. Product liability
i. Reduces risk
3. Global implications
i. Improved ability to compete
2. 3 types/aspects of product & service quality
1. Design Quality
2. Conformity quality
3. Performance quality
3. Costs of quality:
1. Prevention costs
2. Appraisal costs
3. Internal failure
4. External costs
4. QFD elements:
1. Customer requirements
2. Technical requirements
3. Relationships (strong, medium, small)
4. Competitive evaluation
5. Technical evaluation
6. Correlations (strong positive, positive, negative, strong negative)
5. Product Quality Dimensions
1. Performance
2. Features
3. Reliability
4. Conformance
5. Durability
6. Serviceability
7. Aesthetics
8. Perceived Quality
Discuss:
1. Ways quality improves profitability
Improvements in quality help firms increase sales and reduce costs, both of which
increase profitability as measured by ROA (profits/Assets)
Increases in sales often occur as firms speed response, increase or lower selling prices,
and improve their reputation for quality products.
Similarly, improved quality allows costs to drop as firms increase productivity and lower
rework, scrap, and warranty costs.
2. Costs of quality
There are 4 major categories of costs that are associated with quality:
1. Prevention costs: reducing potential defects
2. Appraisal costs: evaluating products, parts and services
3. Internal failure costs: producing defective parts or service before delivery
4. External failure costs: defects discovered after delivery.
The image you sent is a diagram from the American Society for Quality Control (ASQC)
depicting a predicted trend in quality costs over time. The vertical axis shows total quality cost,
and the horizontal axis shows time. The diagram shows that the total quality cost is expected to
decrease over time with the implementation of a quality cost system.
The diagram shows that the cost of prevention and appraisal are expected to increase over time,
but that this increase will be more than offset by the decrease in internal and external failure
costs. This is because a quality cost system helps to identify and prevent defects early in the
production process, which can save money in the long run.
Here are some of the reasons why quality cost trends are expected to continue to decline over
time:
 Increasing demand for quality products and services: Customers are becoming
increasingly demanding of quality, and businesses are responding by investing in quality
control systems.
 Increasing availability of new technologies: New technologies are making it easier and
more affordable to prevent and detect defects.
 Increasing focus on continuous improvement: Many businesses are now adopting a
culture of continuous improvement, which means that they are constantly looking for
ways to improve their quality processes.
By implementing a quality cost system, businesses can save money in the long run by preventing
defects from occurring. The diagram shows that the total quality cost is expected to decrease
over time with the implementation of a quality cost system.
3. QFD:
 The structure of QFD is based on a set of matrices. It is often referred to as the
house of quality because of its house-like appearance
 The main matrix relates customer requirements (what) and their corresponding
technical requirements (how).
 Additional features are usually added to the basic matrix to broaden the scope of
analysis
 Typical additional features include importance weightings and competitive
evaluations. A correlational matrix is usually constructed for technical
requirements; this can reveal conflicting technical requirements.
- the list of customer requirements on the left side of the figure.

- the technical requirements, listed vertically near the top.
- The key relationships and their degree of importance are shown in the center.
The circle with a dot inside indicates the strongest positive relationship; that is, it
denotes the most important technical requirements for satisfying customer
requirements.
- The “importance to customer” numbers that are shown next to each customer
requirement (3 is the most important). Designers will take into account the
importance values and the strength of correlation in determining where to focus
the greatest effort.
- The correlation matrix at the top of the “house.” Of special interest is the strong
negative correlation between “paper thickness” and “roll roundness.” Designers
will have to find some way to overcome that or make a trade-off decision.
- On the right side of the figure is a competitive evaluation comparing the
supplier’s performance on the customer requirements with each of the two key
competitors (A and B).
- Across the bottom there are importance weightings, target values, and technical
evaluations:
o The technical evaluations can be interpreted in a manner similar to that of
the competitive evaluations
o The target values typically contain technical specifications
o The importance weightings are the sums of values assigned to the
relationships (Sum of Importance to customer x relationship value). The
3 in the first column is the product of the importance to the customer, 3,
and the small (Δ) weight, 1.
o The importance weightings and target evaluations help designers
o
o focus on desired results. In this example, the first technical requirement
has the lowest importance weighting, while the next four technical
requirements all have relatively high importance weightings.
4. 8 dimensions/ categories of product quality:

Graven 1988 has identified 8 dimensions or categories of quality that apply for most
manufactured products:
1. Performance: It refers to the primary operating characteristics of a product (like clarity,
color, and the ability to receive distance stations on a color television set).
2. Features: The “bells and whistles" of a product (like a remote control for the television).
3. Reliability: The probability of a product is malfunctioning or falling within a specific
period of time.
4. Conformance: The degree to which a product s design and orating characteristics meet
pre-established standards (a definition of quality often used by Phil Crosby, one of the
best known US “quality gurus”
5. Durability: A measure of product life that has both economic and technical dimensions.
6. Serviceability: The speed, courtesy, competence, and ease of repair. Attempts have been
made to identify “measurable” characteristics of serviceability (like speed of response) as
opposed to the more elusive elements of customer satisfaction.
7. Aesthetics: user defined, subjective set of attributes, based on individual references, of a
product how a product looks, feels, sounds, tastes, or smells according to the customer.
8. Perceived quality: Continuous do not always possess complete information about a
product or a service s attributes. Frequently, for example, can seldom be observed
directly; it usually must be inferred from various tangible and intangible aspects of a
product.

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CH 6 – Managing Quality

- the list of customer requirements on the left side of the figure.

4. 8 dimensions/ categories of product quality:

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