Marketing

1. 8
Chapter 8
Quality Management and Control

2. 9-2
Learning Objectives
 Define the term quality.
 Explain why quality is important and the
consequences of poor quality.
 Identify the determinants of quality.
 Describe the costs associated with quality.
 Describe the quality awards.

3. 9-3
Quality Management
 What does the term quality mean?
 Quality is the ability of a product or
service to consistently meet or exceed
customer expectations.

4. 9-4
Quality Assurance vs. Strategic
Approach
 Quality Assurance
 Emphasis on finding and correcting defects
before reaching market
 Strategic Approach
 Proactive, focusing on preventing mistakes
from occurring
 Greater emphasis on customer satisfaction

5. 9-5
Dimensions of Quality
 Performance - main characteristics of the
product/service
 Special Features - extra characteristics
 Reliability - consistency of performance

6. 9-6
Dimensions of Quality (Cont’d)
 Durability - useful life of the
product/service
 Perceived Quality - indirect evaluation of
quality (e.g. reputation)
 Serviceability - service after sale

7. 9-7
Service Quality
 Convenience
 Reliability
 Responsiveness
 Time
 Assurance

8. 9-8
Challenges with Service Quality
 Customer expectations often change
 Different customers have different
expectations
 Each customer contact is a “moment of truth”
 Customer participation can affect perception
of quality
 Fail-safing must be designed into the system

9. 9-9
Determinants of Quality
Service
Ease of
use
Conforms
to design
Design

10. 9-10
Determinants of Quality (cont’d)
 Quality of design
 Intension of designers to include or exclude
features in a product or service
 Quality of conformance
 The degree to which goods or services
conform to the intent of the designers

11. 9-11
 Top management
 Design
 Procurement
 Production/operations
 Quality assurance
 Packaging and shipping
 Marketing and sales
 Customer service
Responsibility for Quality

12. 9-12
Quality Certification
 ISO 9000
 Set of international standards on quality
management and quality assurance, critical to
international business
 ISO 14000
 A set of international standards for
assessing a company’s environmental
performance

13. 9-13
ISO 9000 Standards
Requirements
 System requirements
 Management
 Resource
 Realization
 Remedial

14. 9-14
ISO 9000 Quality Management
Principles
 Customer focus
 Leadership
 People involvement
 Process approach
 A systems approach to management
 Continual improvement
 Factual approach to decision making
 Mutually beneficial supplier relationships

15. 9-15
 ISO 14000 - A set of international
standards for assessing a company’s
environmental performance
 Standards in three major areas
 Management systems
 Operations
 Environmental systems
ISO 14000

16. 9-16
 Management systems
 Systems development and integration of
environmental responsibilities into business
planning
 Operations
 Consumption of natural resources and
energy
 Environmental systems
 Measuring, assessing and managing
emissions, effluents, and other waste
ISO 14000

17. 9-17
Total Quality Management
A philosophy that involves everyone in
an organization in a continual effort to
improve quality and achieve customer
satisfaction.
T Q M

18. 9-18
1.Find out what the customer wants
2.Design a product or service that meets
or exceeds customer wants
3.Design processes that facilitates doing
the job right the first time
4.Keep track of results
5.Extend these concepts to suppliers
The TQM Approach

19. 9-19
Elements of TQM
1. Continual improvement
2. Competitive benchmarking
3. Employee empowerment
4. Team approach
5. Decisions based on facts
6. Knowledge of tools
7. Supplier quality
8. Champion
9. Quality at the source
10.Suppliers

20. 9-20
Quality at the Source
The philosophy of making each
worker responsible for the
quality of his or her work.

21. 9-21
Six Sigma Programs
 Six Sigma programs
 Improve quality
 Save time
 Cut costs
 Employed in
 Design
 Production
 Service
 Inventory management
 Delivery

22. 9-22
Six Sigma Management
 Providing strong leadership
 Defining performance metrics
 Selecting projects likely to succeed
 Selecting and training appropriate people

23. 9-23
Six Sigma Technical
 Improving process performance
 Reducing variation
 Utilizing statistical models
 Designing a structured improvement
strategy

24. 9-24
Six Sigma Team
 Top management
 Program champions
 Master “black belts”
 “Black belts”
 “Green belts”

25. 9-25
Six Sigma Process
 Define
 Measure
 Analyze
 Improve
 Control
DMAIC

26. 9-26
 Lack of:
 Company-wide definition of quality
 Strategic plan for change
 Customer focus
 Real employee empowerment
 Strong motivation
 Time to devote to quality initiatives
 Leadership
Obstacles to Implementing TQM

27. 9-27
Basic Steps in Problem Solving
1.Define the problem and establish an
improvement goal
2.Define measures and collect data
3.Analyze the problem
4.Generate potential solutions
5.Choose a solution
6.Implement the solution
7.Monitor the solution to see if it
accomplishes the goal

28. 9-28
The Cycle
Plan
Do
Study
Act

29. 9-29
The Process Improvement Cycle
Implement the
Improved process
Select a
process
Study/document
Seek ways to
Improve it
Design an
Improved process
Evaluate
Document

30. 9-30
 Process Improvement: A systematic
approach to improving a process
 Process mapping
 Analyze the process
 Redesign the process
Process Improvement

31. 9-31
Basic Quality Tools
 Flowcharts
 Check sheets
 Histograms
 Scatter diagrams
 Control charts
 Cause-and-effect diagrams

32. 9-32
Cause-and-Effect Diagram
Effect
Materials
Methods
Equipment
People
Environment
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause

33. 9-33
Methods for Generating Ideas
 Brainstorming
 Quality circles
 Interviewing
 Benchmarking

34. 9-34
 Identify a critical process that needs
improving
 Identify an organization that excels in
this process
 Contact that organization
 Analyze the data
 Improve the critical process
Benchmarking Process

35. Total Quality Management:
Tools and Techniques

37. Scatter Diagram

39. Histogram

40. Quality Issues
• Identifying quality problems
• Solving quality problems
• Improving quality

41. To Boost Performance, Quality is
Designed into Products as:
 Material
 Function
 Quality characteristics
 Performance
 Reliability
 Features
 Conformance
 Reliability
 Durability
 Service
 Reputation

42. Quality is also Designed into the
Manufacturing Processes
• Manufacturing processes can be:
– Procedures
– Techniques
– Methods

43. More Inspections Mean:
• More resources will be needed
• Better educated personnel will be needed
• More dedicated personnel will be needed
• More responsible personnel will be needed
• Better and safer products will be produced
• Happier and more satisfied customers

44. Implementing a Safety Culture
44

45. Main Characteristics
• Regulatory History.
• Legal and Regulatory Issues for the Safety Manager.
• The Safety, Health, and Environmental Professional HSE: A health, safety
and environment management system
• Worker’s Compensation.
• Identifying Hazards.
• Incident Investigation, Analysis and Cost.
• Safety Culture.
• Occupational Health Programs.
• Environmental Management.
• Product Safety Management.
• Transportation Safety Programs.
• Laboratory Safety.
• Motivation.
• Safety and Health Training.
45

46. Safety Organization in the Office
Efficient safety programs in the office should include:
• Safety and health training
• Safety and health committees
• Incident and illness record-keeping system
46