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An introduction-to-quality
- 1. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Introduction to Quality Expanding the quality myth Author: Dr Rhys Rowland-Jones
- 2. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Session Plan • Different views of quality • General definitions of quality • Some issues facing the quality profession • Views of quality • Costs of quality • Dimensions of quality
- 3. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n The first question to ask– What is Quality? How would you describe whatHow would you describe what ““Quality” means?Quality” means?
- 4. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n QUALITY • Degree to which a set of inherent characteristics fulfils requirements ISO 9000:2000ISO 9000:2000
- 5. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Phases of Quality Assurance Acceptance sampling Process control Continuous improvement Inspection before/after production Inspection and corrective action during production Quality built into the process The least progressive The most progressive
- 6. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n QUALITY DOES NOT OCCUR BY ACCIDENT • What does the customer actually want? – Identify, understand and agree customer requirements • How are you going to meet those requirements? – Plan to achieve them
- 7. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n The Demming Cycle W.Edwards Demming Plan Control Act & Do Improvement Check
- 8. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Some issues facing the quality profession How to define quality from the customer’s perspective? Keeping up with the constant increases in the level of quality of today’s goods and services. The particular difficulties encountered in managing service quality. How does the organization identify the quality dimensions that are most important to its customers?
- 9. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Some issues facing the quality profession Being able to avoid the costs of poor quality products and services. Being able to deal with the shift in balance of power to consumers from producers through globalization. Recognizing that customer loyalty is increasingly based on quality. Getting ‘leaner’ by achieving higher levels of productivity.
- 10. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Expressing Dissatisfaction A dissatisfied customer Takes action Takes no action Public action can be Private action Seeking redress directly from the firm Taking legal action A complaint to business, private, or governmental agencies Stop buying the product or boycott the seller Warn friends about the product and/or seller
- 11. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Customer Feedback and Word-of-Mouth • The average business only hears from 4% of its customers who are dissatisfied with its products or services. Of the 96% who do not bother to complain, 25% of them have serious problems. • The 4% complainers are more likely to stay with the supplier than are the 96% non- complainers. • About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly. • A dissatisfied customer will tell between 10 and 20 other people about their problem. • A customer who has had a problem resolved by a company will tell about 5 people about the situation.
- 12. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n An Approach to Viewing Quality. Slack et al 2004 • The transcendent approach views quality as synonymous with innate excellence e.g. Rolls Royce, Rolex, The Hilton. • The manufacturing-based approach assumes quality is all about making or providing error-free products or services e.g. Audi’s ‘vorsprung durch technik’. • The user-based approach assumes quality is all about providing products or services that are fit for their purpose e.g. it does what it says on the tin! • The product-based approach views quality as a precise and measurable set of characteristics e.g. 0-60 in 4.3 seconds. • The value-based approach defines quality in terms of value’ e.g. supermarket ‘value’ ranges.
- 13. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n nality - how well the product or service does the job for which it was intended. ance - aesthetic appeal, look, feel, sound and smell of the product or service. Reliability - consistency of product or service’s performance over time. Durability - the total useful life of the product or service. overy - the ease with which problems with the product or service can be rectified or resolved. Contact - the nature of the person-to-person contacts that take place. Quality Characteristics of Goods and Services
- 14. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n 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
- 15. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n The ‘Iceberg’ theory – how much is immediately visible? Scrap, waste Reworking defects Rescheduling Increased labour costs Reduced productivity Delivery failures Increasedstock levels Customer complaints Loss of customers
- 16. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n British Standards on Quality Costs • BS 6143 Part 1 • BS 6143 Part 2 • Prevention Appraisal Failure Model (PAF) • Process Cost Model (PCM)
- 17. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Costs of Quality Failure “Defects are not free, someone makes them and gets paid for the privilege” • COST OF INTERNAL FAILURE – Scrapped materials, goods and services – Rework/ retest – Reduced capacity/ yield/ increased downtime – Rescheduling – Service delays – Disruption to the service process. – Focus is on troubleshooting not improvement • COST OF EXTERNAL FAILURE – Warranty and servicing costs – Product liability / Litigation – Complaints and their administration – Loss of customer goodwill – Inconvenience to other customers
- 18. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n The Economic Costs of Quality • COST OF PREVENTION • Quality planning • Design of quality system • Staff quality training and development • Preventative maintenance • Supplier development training • Administering quality procedures (e.g. ISO 9001) • Time spent problem - solving, improving process • Measurement of customer satisfaction during process • COST OF APPRAISAL • Testing and Inspection of supplier goods and services • Testing and Inspection of internal service processes • Measurement of customer satisfaction after process • Quality Audits
- 19. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Quality Dependability Speed Flexibility Cost Quality Quality + Dependability Quality + Dependability + Speed Quality + Dependability + Speed + Flexibility Quality + Dependability + Speed + Flexibility + Cost (FERDOWS & DeMAYER Adapted from Slack et al 2004) The Ferdows and DeMayer Sandcone Model of Operational Improvement:
- 20. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Short Exercise: Quality Characteristics Consider how the quality characteristics (functionality, reliability, appearance, durability, recovery and contact) relate to your organisation’s main products / services? Note your answers – now ask someone in your organisation the same question and compare your answers. Are they similar?
- 21. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n The meaning of Quality Quality of conformance Quality of design Producer’s perspective Consumer’s perspective Fitness for consumer use Production Marketing•Conformance to specifications •Cost •Quality characteristics •Price The Dimensions of Quality.
- 22. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n QUALITY MANAGEMENT SYSTEM Management system to direct and control an organisation with regard to quality ISO 9000:2000
- 23. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n PURPOSE OF ISO 9001:2000 “ISO 9001 specifies the requirements for a quality management system that may be used for internal application by organizations, certification, or contractual purposes.”
- 24. An introduction to Quality Standards in Action www.bsieducation.org/standardsinactio n Summary • Quality has several dimensions • Quality is not only a system • There are costs to poor quality • Quality is a continuous journey
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