1. Quality Management

2. Defining Quality Conformance to Requirements Fitness for Use
Customer Satisfaction

3. Conformance to Requirements
High quality is often synonymous with meeting specifications.
Manufacturing frequently takes this approach since it is closely linked to defect and scrap rates.
It is also very important to highly-regulated industries, e.g., health care.

4. Fitness for Use
This approach is user-oriented. it suggests that quality lies in the eye of the beholder.
Different users have different needs, and to the extent that a product or service meets those needs, it is deemed to be of high quality.

5. Customer Satisfaction
Customer satisfaction is a common measure for service quality.
Customer satisfaction not only measures quality, but also influences future purchasing decisions.
Customer satisfaction is determined by the gap between perception and expectation.

6. Quality Dimensions
Instead of a simple, uniform concept, quality needs to be defined in specific terms (dimensions) for a product or service.
An organization needs to focus on one or few quality dimensions.
The selection of quality dimensions depends on the basic business strategy.

7. Examples of Product Dimensions
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality

8. Examples of Service Dimensions
Reliability
Accessibility
Convenience
Empathy
Responsiveness
Aesthetics
Performance
Perceived quality

9. Strategic Consideration in Quality Management
Compete on quality (qualifier or order winner)
Link quality to strategic planning
Define quality from customers’ view
Link quality to financial performance
Define clear quality measures

10. Minimizing the Costs of Quality
Prevention and Appraisal Costs rise during the initial phase of quality improvement.
Internal and External Failure Costs should fall as quality improves.
Appraisal Cost should fall as quality improves.
Total Cost of Quality should fall as quality improves.

11. Key Elements of Quality Management
Top Management Commitment
Customer Focus
Continuous Improvement
Employee Commitment and Involvement

12. Malcolm Baldridge Awards
Designed to recognize organizations which have achieved excellence in quality and to identify “role models” for other organizations.
Includes five categories: manufacturing, service, small business, health care, and education.
Internet web site:

13. The Baldrige Framework – A Systems Perspective
Organizational Profile:
Environment, Relationships, and Challenges 2
Strategic Planning 5
Human Resource Focus 1
Leadership 7
Business Results
The framework is the 30,000 foot view of the Criteria. [Note: Education and Health Care Criteria have slightly different nomenclature.]
The building blocks, or Categories, are essential -- performance in the Baldrige categories is the cost of entry -- but excellence in the linkages will be the mark of competitive leadership. The arrows point to excellence.
The umbrella over strategy and action plans:
It is the set of customer and market focused company-level requirements.
These are derived from short- and long-term planning.
They are the things that must be done well for the strategy to succeed.
The action plans “bring the strategy to life.”
They guide overall resource decisions.
They drive the alignment of measures for all work units to ensure customer satisfaction and market success.
The system:
The leadership triad -- leadership, strategic planning, customer & market focus -- emphasizes the importance of a leadership focus on strategy and customers.
The results triad is HR focus, process management, and business results. Its focus is on the employees and key processes that accomplish the work of the organization that yields results.
ALL company actions point toward results.
The large arrow in the center connects the leadership and results triads -- a critical linkage for company success -- and shows the role leaders must play in driving results improvement.
Information and analysis are critical to a fact-based system; they are the foundation for the performance management system. 3
Customer & Market Focus 6
Process Management 4
Measurement, Analysis, and Knowledge Management

14. ISO 9000:2000
Quality system standards adopted in 1987 by International Organization for Standardization; revised in 1994 and 2000
Technical specifications and criteria to be used as rules, guidelines, or definitions of characteristics to ensure that materials, products, processes, and services are fit for their purpose.

15. ISO 9000 Key Characteristics
Establishes a quality management system (QMS) to facilitates consistency
It is not prescriptive; does not say “how” to do anything; specifies “what” processes need to be in place
It is not a product standard
It is not TQM
It is site specific

16. Major Potential Benefits of ISO 9000Registration
Documentation of quality management system
Reduction of variation
Help develop and expand business
Reduction or elimination of customer audit
Increased profitability/reduced costs
Elimination of duplication of quality systems

17. Major Problems with ISO 9000 Registration
Does not assure high quality
Costs - application and maintenance
Time - application and maintenance
Level of internal expertise and use of consultants
Executive commitment
Selection of registration

18. What Are the Methods to Improve Quality?

19. Key Methods for Quality Improvement
Process Improvement
Business Process Reengineering
Benchmarking
Six Sigma

20. Process Improvement
Uses a systematic process to improve the performance of a process
Employees are the key contributors
Uses intra- or inter-functional teams to carry out improvement initiatives
Management provides critical resources and support

21. Business Process Reengineering (BPR)
Seeks radical (breakthrough) improvement in process performance
Relies heavily on experts, not regular employees
Uses technology to re-design a process
Requires significant financial investment
A high-risk, high potential reward method

22. Benchmarking A method to learn and adopt “best practices”
Best practices can come from a specific competitors or industry, or from any industry
Requires significant time and resources
Benchmarking should be followed by internal innovation

23. Six Sigma
A quality improvement methodology that focuses on eliminating defects through reduction of variation in a process
Defect – A measurable outcome that is not within acceptable (specification) limits
The goal is to reduce cost and improve quality simultaneously.

24. Requirements for Implementing Quality Management
Commitment to and involvement in quality from management
Personal accountability and rewards for quality improvement
Effective training on improvement tools
A culture that promotes empowerment and quality improvement