Introduction to Quality

Q - Quest for excellence

U - Understanding customer's needs
A - Action to achieve customer’s appreciation
L - Leadership-determination to be a leader
I - Involving all people
T - Team spirit to work for a common goal and
Y - Yardstick to measure progress
Definitions of Quality
Quality is “continuous improvement” (W.Edward Deming)
Quality is “fit for use” (Joseph Juran)
Quality is “conformance to requirements” (Philip B. Crosby)
Quality is “most useful and always satisfactory to the consumer”
(Kaoru Ishikawa)
Americans say “value received for dollars spent”
Europeans say “quality engineered into their goods”
Quality of a product or services is its ability to satisfy the needs
and expectations of the customer
Quality is also defined as excellence in the product or service that
fulfills or exceeds the expectations of the customer.
The ability of a product or service to meet customer needs.
Definitions of Quality
“The totality of features and characteristics of a product or
service that bears on its ability to satisfy stated or implied
needs” (definition adopted by The American Society
for Quality)
ISO 9000:2000 definition of quality- It is the
degree to which a set of inherent characteristics
fulfills requirements.
Though quality is an abstract perception,it has a
quantitative measure- Q= (P / E ) ,
where Q=quality, P= performance(as measured by the
Mfgr.), and E = expectations( of the customer).
Quality
Traditional thinking quality was conformance to
specifications (does the product or service do what it was
designed to do?)
Is Rolls-Royace a better quality product than a Toyota
Corolla? not necessarily. The Toyota may be a higher
quality product relative to what it was designed to do
Late trains and airplanes, leaking car –door seals,
increasingly intolerant of poor service, late deliveries
US customers for automobiles showed sharp preference
for Japanese cars in the US automobile market (Japanese
cars known for reliability and value for money)
New thinking about quality
Old quality is New quality is
About products About organizations
Technical Strategic
For inspectors For every one
Led by experts Led by management
High grade The appropriate grade
About control About improvement (ZERO
Little “q” DEFECT)
Big “Q”
5 VIEWS OF QUALITY
1.Transcendental view:
 According to this view quality is synonymous with “innate
excellence".
 Claims that quality can not be defined precisely, we learn to
recognize quality only through experience.
 E.g.Mercedes Benz and Rolls-Royce in automobile industry have
achieved this level of excellence.
2.Product-based view:
 View quality as precise and measurable variable.
 Differences in quality reflect differences in the quality of some
ingredient or attribute possessed by a product.
 E.g.High quality ice-cream has better fat content.
 Limitations are one-to-one measurement of product attributes and
quality is not possible always, when quality is a matter of
aesthetics, this approach fails to accommodate differences in tastes
5 VIEWS OF QUALITY
3.User –based view:
capacity to satisfy wants of the customers is regarded as
having the highest quality.
This view of quality is personal and i.e. perceived
quality.
It is highly subjective and focus on “fitness for use”
4.Manufacturing-based view:
Conformance to requirements
Once designs or specifications have been established,
any deviation implies a reduction in quality
E.g. Mc Donalds Aloo Tikki Burger
5 VIEWS OF QUALITY
5. Value-based view:
Defines in terms of costs and prices.
A quality product is one that provides performance or
conformance at an acceptable price or cost
Dimensions of product quality
1. Performance – how well service or product performance
according to customers intended use e.g. the speed of a laser
printer. Primary Characteristics,such as brightness
2. Features – special characteristics that appeal to a customer.
E.g. power steering, central locking and child lock system of an
automobile. Secondary Characteristics,Remote Control
3. Reliability –the likelihood of breakdown, malfunction or the
need for repairs. Consistency of Performance over time-fail
4. Serviceability – the speed, cost and convenience of repairs
and maintenance. Resolution of problems,ease of repair
5. Durability – the length of time or amount of use before
needing to be repaired or replced. Useful life ,include Repair.
Service
Dimensions of product quality
6. Appearances – the effect on human senses-the
look, feel, taste, smell or sound.
7. Customer Service – the treatment received by
customers before, during and after the sale
8. Safety – how well the product protects users
before, during and after use.
Dimensions of service quality
1. Reliability- consistency of performer and dependability
2. Responsiveness- willingness or readiness to provide
service, timeliness. Human relations with Customers.
3. Competence- possession of skills and knowledge
required to perform the service
4. Access- approachability and ease of contact
5. Courtesy- politeness, respect, consideration for
property, clean and neat appearance
6. Communication- educating and informing customers
in language they can understand, listening to customers
Dimensions of service quality
7. Credibility- trustworthiness, belief, having
customers best interest at heart
8. Understanding- making an effort to understand
the customers needs, learning the specific
requirements, providing individualized attention,
recognizing the regular customers
9. Security- freedom from danger, risk or doubt
10. Tangibles- the physical evidence of
service(facilities, tools and equipment)
Benefits of quality to a firm
1. Gives a positive company image
2. Improves competitive ability both nationally and
internationally
3. Increases market share, which translates into improved
profits
4. Overall, it reduces costs, which also translates into
improved profits
5. Reduces or eliminates product liability problems,
avoiding unnecessary costs
6. Creates an atmosphere for high employee morale,
which improves productivity
Benefits of Quality
Higher customer satisfaction
Reliable products/services
Better efficiency of operations
More productivity & profit
Better morale of work force
Less wastage costs
Less Inspection costs
Improved process
More market share
Spread of happiness & prosperity
Better quality of life for all.
Effects of poor Quality
Low customer satisfaction
Low productivity, sales & profit
Low morale of workforce
More re-work, material & labour costs
High inspection costs
Delay in shipping
High repair costs
Higher inventory costs
Greater waste of material
Types of quality
Indifferent quality- quality that customer does not
notice or appreciate. e.g. a nice dinner plate or finger bowl
might get unnoticed or probably not seem very important
Expected quality- quality that customer expects and
demands. Peoples expect cars to be safe and reliable, hotel
rooms to be clean and quite etc.
One-dimensional quality- quality that customer
expects, but that does not necessarily results in lots of
order or displeased customers, when lacking. E.g. a rude
and slow restaurant server my not cause customers to
leave, though they might leave smaller tips or no tips. The
restaurant’s slow service is a one-dimensional quality
Types of quality
Exciting quality- quality that exceeds the customers
expectations, attracting favourable attention of customers.
It is the quality that pleasantly surprises customers. E.g.
creating an order winner, quality experienced by owners of
Mercedes Benz and BMW cars while driving these cars
Perceived quality- an assessment of quality based on the
reputation of the firm e.g. quality service provide by Taj
hotels in India.
Customer-driven quality- quality meeting or exceeding
customers expectations. E.g. a poor design for a
computerized hotel reservation systems makes it difficult
for the reservation clerks to do their job and consequently
effects customers satisfaction
The quality profile
The Coca-Cola Company
Real Life
 TQM has being implemented in TVS Group.

 Boeing Aircraft

 Reliance

 Tata L&T HMT

 Ford
 Motorola
 Coca cola
 TOYOTA (Poka-Yoke means mistake proofing in Japanese, JIT)
3 levels of quality
 An organization committed to quality must examine quality at three
levels:
 1. Organizational level: concerns centre on meeting external
customer requirements. An organization must seek customer input
on a regular basis. questions for the quality at the organization level.
 Which products and services meet your expectations?

 Which do not?

 What products or services do you need that you are not

receiving?
 Are you receiving products or services that you do not need?

 Customer driven performance standards should be used at the basis

for goal setting, problem solving, performance appraisal, incentive
compensation, non financial rewards and resources allocation.
3 levels of quality
2. Process level: organizational units are classified as functions or
departments, such as marketing, design, product development,
operations, finance etc. since most have the most significant effect on
the organization’s customer driven performance standards?
 Who are my internal processes are cross functional, the managers
of particular organizational units may try to optimize the
activities under their control. Questions like
 What products or services are most important to the external
customer?
 What processes produce those products and services?
 What are the key inputs to the process?
 Which processes customers and what are their needs?
3 levels of quality
 3. Performer/job level: (sometimes called the job level or the task
design level), standards for output must be based on quality and
customer service requirements that originate at the organizational
and process level. These standards include requirements for accuracy,
completeness, innovation, timeliness and cost. Questions such as
 What is required by the customer, both internal and external?
 How can the requirements be measured?
 What is the specific standard for each measure?
 NOTE: Viewing an organization from this perspective clarifies the
roles and responsibilities of all employees in pursuit of quality. Top
managers must focus attention at the organizational level, middle
manager and supervisors at the process level and employees must
understand quality at the performer level all.
Determinants of quality
 Several activities or accomplishments are necessary to achieve quality:
they are
 Quality of design:
 is determined before the product is produced.
 After determining who its customers are, a company must
determine what its customers want from its products and
services. Then products and services are designed to exhibit the
attributes necessary to meet its customers’ expectations.
 is determined by a cross functional product design team
including members from marketing, engineering, operations and
other functions. Quality of design is determined by market
research, design concepts and specifications. Market research is
aimed at assessing customers needs. A particular design concept
is designed to meet the customers needs. The design concept
than results in a set of specifications for the product.
Determinants of quality
 Quality capability of production processes: production
process must be designed and built that have the capability of
producing products with the attributes wanted by customers.
 Quality of conformance: means producing a product to meet
the specifications. Production facilities and processes are used to
produce products and services that meet design and performance,
aimed at quality expectations of customers.
 Quality of customer service: all contacts between customers
and companies must be managed so that customers perceive that
they have been treated fairly and courteously with their needs,
attended to promptly and with care and concern.
Determinants of quality
 Organization quality culture: the entire
organization must become energized to doing what is
necessary to design, products and services that meet
customers’ expectations. Mechanisms must be place in
order to continuously improve every fact of the
organization towards the objective of building ever
increasing levels of customer satisfaction.
Quality and competitive advantage
Six characteristics of a strong competitive advantage identified
by S.C.Wheelwright are:
 It is driven by customer needs and wants. A company provides
value to its customers that competitors do not.
 It makes a significant contribution to the success of the business.
 It matches the organization’s unique resources with opportunities
in the environment.
 It is durable and lasting and difficult for the competitor to copy
 It provides a basis for further improvement.
 It provides direction and motivation to the entire organization
Quality and profitability
Improved quality of design Improved quality
of conformance

High perceived value Higher prices

Lower manufacturing
and service costs

Increased market share Increased

revenues

Higher profitability
Quality control
Quality control refers to all those functions or activities that
must be performed to fulfill the company’s quality objectives.
It involves the establishment of quality standards, the use of
proper materials, the selection of appropriate manufacturing
process and the necessary tooling to make the product,
performance of the necessary manufacturing operations and the
inspection of the product to check on conformance with the
specifications.
Quality control denotes all those activities which are directed to
maintaining and improving quality. Quality control involves
 Setting of quality targets
 Appraisal of conformance
 Taking corrective action where any deviation is noticed
 Planning for improvement in quality
Quality assurance
 Quality assurance refers to any action directed towards providing
consumers with products of appropriate quality
 Is intended to include all of the activities that are performed to ensure
that the product performs to the customer’s satisfaction and many
departments are involved in this effort. Some activities like
 Reliability engineering-to ensure that design has adequate useful life
 Value engineering-to ensure that the product will perform the
necessary functions at the minimum cost
 Product screening-to see that output sold is of sufficient quality
 Service assurance-to see that customer is adequately trained to use
and maintain the product and the services parts and manuals are
made available
 Quality feedback-to provide corrective action when field use indicates
inadequate quality
The concept of total quality
Total quality is a people focused management system
that aims at continued increase in customer
satisfaction at continually lower real cost.
TQ is a “total system approach” and an integral part
of high-level strategy., it works horizontally across
functions and department, involves all employees, top
to bottom and extends backwards and forward to
include the supply chain and customer chain
TQ stresses learning and adaptation to continual
change as keys to organizational success.
Total quality
According to P&G:”total quality is the unyielding and
continually improving effort by everyone in an
organization to understand, meet and exceed the
expectations of customer’s.”
A.V.Feigenbaum coined the term TOTAL QUALITY
CONTROL and describes 9M’s:”markets, money,
management, men and women, motivation, materials
machines and mechanisation, modern information
methods and mounting product requirements”
Japanese adopted Feigenbaum concept and renamed
TOTAL QUALITY CONTROL as “company wide quality
control” i.e. CWQC.
Total quality management
Is a philosophy that involves everyone in an organization in a
continual effort to improve quality and achieve customer
satisfaction. 2 philosophies are continuous
improvement(Kaizen-japanese term) and customer satisfaction
7 principles of TQM are:
 Strive for quality in all things
 The customer is the creation of quality
 Improve the process or system by which products are produced
 Quality improvement is continuous, never ending activity
 Worker involvement is essential
 Ground decisions and actions in knowledge
 Encourage team work and cooperation
TQM six basic Concepts
Management commitment to TQM principles
and methods & long term Quality plans for the
Organisation
Focus on customers – internal & external
Quality at all levels of the work force.
Continuous improvement of the
production/business process.
Treating suppliers as partners
Establish performance measures for the
processes.
 What is TQM?

Concern for
Constant drive Management employee
for continuous by Fact involvement and
improvement development
and learning.
Organisation
Passion to deliver response
Result Focus customer value / ability
excellence

Actions not just Partnership

perspective
words (internal /
Process
(implementation) external)
Management
 LEARNING AND TQM

Learning

Process Improvement

Quality Improvement

Customer Shareholder Employee

Satisfaction Satisfaction Satisfaction
 BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

QUALITY CONTROL VS TQM
QUALITY CONTROL TQM
 Inspection after the fact  Design quality into the product
 Focus on consequences of poor and production system
quality  Focus on identifying and
 Customer is purchaser eliminating causes of poor
 Some no. of defects is normal quality
 Customer is user
 Responsibility for quality
control is assigned to  Goal is zero defect
individuals or departments  Quality is the responsibility of
 Improving quality increases cost everyone
 Improving quality typically pays
for itself
Quality is a Journey,
not a Destination
THANK YOU