In this presentation, we will discuss the concept of quality management with specific importance on quality assurance, quality control and different views of quality, types of quality, levels of quality and quality determinants. We will also talk about the industrial revolution and beginning of quality control methods. To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html

1. Total Quality Management
Chapter 1
Introduction to Quality
Chapter1 1

2. Introduction to Quality
What is Quality?
•Traditional thinking would say that Quality is conference to
specifications,that is does the product do what it designed to
do?
•One is Quality Assurance which is the "prevention of
defects", such as the deployment of a Quality Management
System and preventative activities like FMEA.
•The other is Quality Control which is the "detection of
defects", most commonly associated with testing which takes
place within a Quality Management System typically
referred to as Verification and Validation.
Cont
Chapter1 2

3. Introduction to Quality
• "Conformance to requirements". The difficulty
with this is that the requirements may not fully
represent what the customer wants; Crosby treats
this as a separate problem.
• "Fitness for use". Fitness is defined by the
customer.
• A two-dimensional model of quality. The quality
has two dimensions: "must-be quality" and
"attractive quality". The former is near to the
"fitness for use"
Chapter1 3

4. Evolution of Quality
Management
Chapter1 4

5. Evolution of Quality
Management
Chapter1 5

6. Evolution of Quality
Management
Chapter1 6

7. Evolution of Quality
Management
Chapter1 7

8. Quality Movement in India
Quality movement was consolidated in Indian
industries in the 1980s by pioneering efforts of
Confederation of Indian Industries.
•Walter Shewhart ,father of statistical control
visited India in 1947-48 & initiated SQC
movements through visiting many factories.
•The year 1987 brought the ISO900 standards into
reality
•Visible strategies emerged from the Europian
market
Chapter1 8

9. Quality-What it stands for?
Q: Quest for Excellence
U: Understanding Customer needs
A: Action to achieve customers appreciation
L: Leadership Determination to be leader.
I: Involving all people
T: Team spirit to work for common goal
Y : Yard stick measure progress
Quality means
staying in business
Chapter1 9

10. Quality Definitions
Garvin’s Definitions of Quality
Manufacturing Based Definition
•If the product conforms to design specifications,
it has good quality.
Value-Based Definition
•If the product is perceived as providing good
value for the price, it has good quality.
Chapter1 10
Cont

11. Quality Definitions
Garvin’s Definitions of Quality
•Transcendent Definition
•Quality is something that is intuitively
understood but nearly impossible to
communicate such as beauty or love.
•Product-Based Definition
•Quality is found in the components and
attributes of a product.
•User-Based Definition
•If the customer is satisfied, the product has good
quality. Chapter1 11

12. Quality Definitions
Quality is defined as:
•The ability of product or services to meet
customer needs.
•The totality of features and characteristics of a
product or services that bears on its ability to
satisfy stated or implied needs.
•Meeting or exceeding Customer requirements
now and in future
Cont.
Chapter1 12

13. Quality Definitions
Other definitions of Quality are:
•Quality is a measure of how closely a goods or
service confirms to specified standards or
specifications
•Quality is meeting or exceeding customers
requirement.
•Quality can be described as doing right things,right
time ,first time & every time
•Quality is a means to an end
Chapter1 13

14. Quality Definitions
Service Quality is determined by:
•Reliability
•Responsiveness
•Competence
•Access
•Communication
•Courtesy
•Security
•Understanding
•Tangibles
Chapter1 14

15. Quality Definitions
Old Quality is New Quality is
About Product About Organization
Technical Strategic
For inspectors For Every one
Led by experts Led by Management
High grade Appropriate grade
About control About Improvement
Chapter1 15

16. Five Views of Quality
•Transcendental View
•Product Based View
•User Based View
•Manufacturing Based view
•Value Based View
Chapter1 16

17. Quality Dimensions
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived Quality
Cont….
Chapter1 17

18. Quality Dimensions
•Performance Refers to the efficiency with
which a product achieves its intended purpose.
•Features Attributes of a product that
supplement a product’s basic performance.
•Reliability The propensity for a product to
perform consistently over its useful design life.
•Conformance Numerical dimensions for a
product’s performance, such as capacity, speed,
size, durability, color, or the like.
Chapter1 Cont.. 18

19. Quality Dimensions
•Durability The degree to which a product
tolerates stress or trauma without failing.
•Serviceability
•Ease of repair.
•Aesthetics
•Subjective sensory characteristics such as
taste, feel, sound, look, and smell.
•Perceived Quality
•Based on customer opinion. Customers imbue
products and services with their understanding
of their goodness. Cont
Chapter1 19

20. Quality Dimensions
•Include the physical appearance of the service
facility, the equipment, the personnel, and the
communication material.
•Service Reliability
•Differs from product reliability in that it relates
to the ability of the service provider to perform
the promised service dependably and accurately.
•Responsiveness
•The willingness of the service provider to be
helpful and prompt in providing service.
Chapter1 20

21. Types of Quality
•Indifferent Quality:That customer does not notice
•Expected Quality:Is the quality that customer
expects
•One dimensional Quality:is the quality the
customer expects but that does not necessarily
result in lots of order
•Exiting Quality is the quality that exceeds
customer requirements Chapter1 21

22. Customer driven Quality
Quality is meeting or exceeding customer
expectations.
•Directing attention toward satisfying and
delivering value to the customer.
•Tools for Influencing Customer Perceptions of
Quality
•Price and advertising are the primary tools for
influencing customer perceptions of quality, but are
imperfect mechanisms.
Cont..
Chapter1 22

23. Customer driven Quality
•Focus on Service
•Another important contribution of the marketing
perspective has been the focus on service.
•Customer service surveys are important tools for
assessing the multiple dimensions of quality.
•In short Customer Driven Quality is meeting or
exceeding customer expectation.
Chapter1 23

24. Quality in production Systems
Production is the process of converting the
resources available to an organization into products
Goods & services.Quality involved in following
areas:
•Nature of Engineering Perspective
•Engineers are interested in applying mathematical
problem solving skills and models to the problems
of business and industry.
•Two of the major emphases in engineering
•Product design
•Process design Chapter1 24

25. Quality in production Systems
•Product Design Engineering
•Involves all of those activities associated with
developing a product from concept development to
final design and implementation.
•Product design life cycle
•Key to quality as quality is assured at the design
stage.
•Concurrent engineering
•The simultaneous performance of product and
process design activities.
Chapter1 25

26. Quality in production Systems
•Related Concepts
•Life Testing
•Is a facet of reliability engineering that concerns
itself with determining whether a product will fail
under controlled conditions during a specified life.
•Is applied so that a back up system can take over
for the failed primary system.
•Statistical Process Control
•Is concerned with monitoring process capability
and process stability.
Chapter1 26

27. Three levels of Quality
1 Organizational Level
At organizational level ,quality concerns center
ton meeting external customer requirements
2. At process level
Organizational units are classified as functions or
departments such as marketing design,product
3.Performance level(Job level)
These standards include requirements for
accuracy,completeness
Chapter1 27

28. Determinants of Quality
Several activities are necessary to achieve
Quality they are:
• Quality of Design
• Quality capability of production processes
• Quality of conformance
• Quality of customer service
•Organization Quality culture
Chapter1 28

29. Quality & competitive advantage
One of the critical drivers of business success is
having a unique competitive advantage.
•Most managers understand that to attract a larger
share of the market, or find enough customers
prepared to pay a premium price, they must provide
something of greater value than their competition.
•For most managers, competitive advantage boils
down to providing superior quality and service.
Think about it. Is this what you are aiming for?
Chapter1 29

30. Quality & competitive advantage
Competitive advantage denotes a firms ability to
achieve market superiority
Characteristics of a strong competitive advantage
identified by S.C Whelwright are:
•It is customer driven needs & wants
•It makes significant value to success of business
•It matches the organization's unique resources with
opportunities in the environment
•It is durable and lasting & difficult for competitors
to copy Cont..
Chapter1 30

31. Quality & competitive advantage
•It provides a basis for further development
•It provides directions and motivation to the entire
organization
Customers don’t believe vague claims and they
don’t believe you, unless you can back up your
statement with irrefutable facts. The same goes for
service. What does better service mean? Is it faster,
more personal, more user friendly? How can you
support your claims?
Chapter1 31

32. Quality & Profitability
Good Quality can also pay off in higher profits
Several research studies undertaken by PIMS have
found that:
•Product Quality is important determinant of
business profitability
•Business that offer premium quality & services
have large market shares
•Quality is positively and significantly related to a
high return
•High Quality producers can usually change
premium price Chapter1 32

33. Quality as a source of value
Many customers regard Quality as a Important
source of value
•Improved reputation
•Easier selling
•Legal Implications
•Reduced lead time
•Enhanced Flexibility
•Improved Productivity
•Reduced Cost
•Employer pride
Chapter1 33

34. Quality and personal values
•Today companies are asking employees to take
more responsibility for acting as the point of
contact between the organization and the
customer,to be team players & to provide more
effective & efficient customer service.
•Personal Quality may be thought of as personal
empowerment.
•Personal Quality is an essential ingredient to make
quality happens at work place
Chapter1 34

35. Quality Drives the productive Machine
Japanese manufactures are credited with populating
the notion that quality drives the productivity
machine
•This means If the production does it right first time
,& produces product and services which are defect
free,Waste is eliminated & costs are reduced.
•Productivity & Quality are often closely related
•Poor quality can adversely affected if defective
parts are reworked.
•Poor quality tolls & equipment can lead to injuries
&defective output Chapter1 35

36. Total Quality Management
End Of
Chapter 1
Chapter1 36

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