GE1671 TQM - Unit 1

1. Concept of Quality and Quality Management

2. What is Quality?

3. What is Quality?
■ Conformance to specifications (British Defense Industries Quality Assurance Panel)
■ Conformance to requirements (Philip Crosby)
■ Fitness for purpose or use (Juran)
■ A predictable degree of uniformity and dependability, at low cost and suited to the market (Edward Deming)
■ Synonymous with customer needs and expectations (R J Mortiboys)
■ Meeting the (stated) requirements of the customer- now and in the future (Mike Robinson)
■ The total composite product and service characteristics of marketing, engineering, manufacturing and
maintenance through which the product and service in use will meet the expectations by the customer (Armand
Feigenbaum)

4. What is Quality?
■ “The degree to which a system, component, or process meets
(1) specified requirements, and
(2) customer or users needs or expectations” – IEEE
■ The totality of features and characteristics of a product or service that bears on its ability to
satisfy stated or implied needs” – ISO 8402
■ Degree to which a set of inherent characteristics fulfils requirements – ISO 9000:2000
■ The characteristics through which the product and service meet the expectations of the
customer ( Dr. armand V. Feigenbaum).

5. What is QUALITY?
Different people interpret quality differently. Few can define quality in measurable terms that can
be proved operationalized. When asked what differentiates their product or service;
The banker will answer” service”
The healthcare worker will answer “quality health care”
The hotel employee will answer “customer satisfaction”
The manufacturer will simply answer “quality product”

6. Quality in different areas of society
Area Examples
Airlines On-time, comfortable, low-cost service
Health Care Correct diagnosis, minimum wait time, lower cost, security
Food Services Good product, fast delivery, good environment
Postal Services fast delivery, correct delivery, cost containment
Academia Proper preparation for future, on-time knowledge delivery
Consumer Products Properly made, defect-free, cost effective
Insurance Payoff on time, reasonable cost
Military Rapid deployment, decreased wages, no graft
Automotive Defect-free
Communications Clearer, faster, cheaper service

7. Definitions of Quality
Definitions of Quality
■ Transcendent definition: excellence
■ Product-based definition: quantities of product attributes
■ User-based definition: fitness for intended use; meeting or exceeding user expectations
■ Value-based definition: quality vs. price
■ Manufacturing-based definition: conformance to specifications
7

8. Quality and customer expectations
• Quality is also defined as excellence in the product or service that fulfills or exceeds
the expectations of the customer.
• There are 9 dimensions of quality that may be found in products that produce
customer-satisfaction.
• Though quality is an abstract perception, it has a quantitative measure-
• Q= (P / E ) ,

9. Quality = performance / expectation
If Q is greater than 1.0, then the customer has a good feeling about the product or
service.
quality comes in the following two forms:
1. Effectiveness : doing the right thing; producing features truly important to the
customer.
2. efficiency: doing things right; executing tasks and processes right the first time.

10. Quality = Doing the right things right consistently to ensure;
1. Satisfaction for all of our many customers.
2. Retention of talented staff.
3. Sound financial performance

11. More about Quality
■ Realistic but demanding STANDARDS;
■ Getting things RIGHT FIRST TIME; ‘It costs less to prevent a problem than it does
to correct it’
■ Influences the relationship with CUSTOMERS;
■ Influences how COMPLAINTS are dealt with;
■ Something to do with how things LOOK and FEEL.

12. Modern Importance of Quality
Modern Importance of Quality
“The first job we have is to turn out quality merchandise that consumers will buy
and keep on buying. If we produce it efficiently and economically, we will earn a
profit.”
- William Cooper Procter
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13. Why is Quality so important for us nowadays?
Quality is critical to satisfying our customers and retaining their loyalty so they continue to
buy from you in the future.
Quality products make an important contribution to long-term revenue and profitability.
The Need for Quality
The quality of your work defines you
Developing and delivering high quality products and services means that you are doing things
correctly from the beginning.
you are reducing the need for additional services, from verification to warranty.
quality is not an easy thing to achieve. quality can be defined in terms of price, speed,
defects or many other options.

14. QUALITY
delivery
safety
design
price
Responsibility
service
conformance
Customer’s perspective;

15. Internal and External Benefits of Quality
Reduces costs
Increases dependability
Increases speed
Boosts moral
Increases customer retention
Increases profit
Internal Benefits External Benefits
Customer gets correct
product or service
Correct specifications
Appropriate intangibles
Customer satisfaction
Customer retention

16. 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.

17. 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

18. Industrial Revolution (18th century): need for more consistent products that are mass-produced
and needed to be interchangeable. Rise of inspection after manufacturing completed and separate
quality departments
■ Science of modern quality methodology started by R. A. Fisher perfected scientific shortcuts
for shifting through mountains of data to spot key cause-effect relationships to speed up
development of crop growing methods.
■ Statistical methods at Bell Laboratories: W. A. Shewhart transformed Fisher’s methods into
quality control discipline for factories (inspired W.E. Deming and J. M. Juran);
History of Quality Methodology

20. ■ Control Charts developed by W. A. Shewhart; Acceptance sampling methodology
developed by H. F. Dodge and H. G. Romig
■ World War II: Acceptance of statistical quality-control concepts in manufacturing
industries (more sophisticated weapons demanded more careful production and
reliability); The American Society for Quality Control formed (1946).
■ Quality in Japan: W.E. Deming invited to Japan to give lectures; G. Taguchi developed
“Taguchi method” for scientific design of experiments; The Japanese Union of Scientists
and Engineers (JUSE) established “Deming Price” (1951); The Quality Control Circle
concept is introduced by K. Ishikawa (1960)

22. ■ Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management”;
Quality control started to be used as a management tool.
■ Malcolm Baldrige National Quality Award (1987)
■ International Standard Organization’s (ISO) 9000 series of standards: in 1980s Western Europe
began to use; interest increase in US industry in 1990s; Became widely accepted today:
necessary requirement to world-wide distribution of product and a significant competitive
advantage
Statistical
Quality
Control
Quality
Assurance
Quality
Management

23. Team-
work
Customer
satisfaction
Employee
empowerment
Process & system
improvement
QUALITY MANAGEMENT

24. The development of quality management can be defined in four stages:
(1) Quality inspection stage (QI) – 1920s;
(2) Quality control stage (QC) – 1950s;
(3) Quality assurance stage (QA) – 1970s;
(4) Total Quality management (TQM)stage
Historical Development of QM

26. 26
Evolution of quality –Means & Focus
197
5
1980 1985 1990 1995 2000
Operation Customers Innovations
Quality of
Work life
Quality
Circle
Productivity
Employee
Involvement
Quality
Employees
Empowermen
t
Total
Quality
Self Directed
Teams
TQC/TQM
Self
Directed/Managed
Teams

27. Quality Management
Quality Management
Quality Planning Quality Assurance Quality Control
Criteria driven Prevention driven Inspection driven
Quality Management System: Management system to direct and control an
organisation with regard to quality – ISO 9000:2000

28. ■ Quality Planning
It identifies the standards and determines how to satisfy those standards.
It lays out the roles and responsibilities, resources, procedures, and processes to be utilized for
quality control and quality assurance.
■ Quality Assurance
It is the review to ensure aligning with the quality standards. An assessment will be provided
here.
Planned and systematic quality activities.
Provide the confidence that the standards will be met.
Quality Management Components

29. ■Quality Control
It addresses the assessment conducted during Quality Assurance for
corrective actions.
Measure specific results to determine that they match the standards.
Use of Statistical Process Control (SPC) : a methodology for monitoring a
process to identify special causes of variation and signal the need to take
corrective action when appropriate.
SPC relies on control charts.
Quality Control – Inspection Driven

30. Key Points to be remember
• Q= (P / E )
• To meet the customer needs and expectations
• Customer’s perspective
• Benefits of Quality
• quality management - stages