 The concept of Quality is very broad and can be defined in various way:  From the customer point of view: (Specification Quality) › Quality is the extent to which a product performs its function and satisfies a customer need.  From the Producer point of view: (Conformance Quality) › The extent to which a product or service is produced correctly or absence of defects or errors.

 Quality Control  Quality Assurance  Total Quality Management (TQM)

 Quality Control  The process by which entities review the quality of all factors involved in production.  Use of statistical method & models to control the quality of goods.  Looking for defects after good are produced.  Focus on product inspection Quality Assurance  Planned and systematic activities implemented in a quality system so that quality requirements for a product or service will be fulfilled.  It is the systematic measurement, comparison with a standard & monitoring of processes to ensure quality of a product or service.  Focuses on prevention of defects.

 TQM is an integrative philosophy of management for continuous improvement in the quality of products and processes.  Based on the concept that quality is the responsibility of every individual or department involved in the process of creating and delivering a product to customer.  TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations.

Figure 5.1 – TQM Wheel Customer satisfaction

 Customer satisfaction › Conformance to specifications › Value › Fitness for use › Support services › Psychological impressions (aesthetics) Employee involvement  Cultural change  Use of Teams Please see page 208 (book-1)for details

 Continuous improvement › Kaizen  Japanese term for continuous improvement › Problem solving process  Deming Wheel for continuous improvement

Plan Do Check Act

 Originally developed by Motorola, USA in 1986 to improve it manufacturing capability and product quality.  Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.  It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Green Belts", “ Black Belts”, “Master Black Belts”.)

 Related to Manufacturing processes.  Sigma Ratings are given to each process based on the defect it produces.  Sigma Six is the best rating, which is the objective to achieve.  Sigma Six rating means 3.4 defects per million are acceptable.

Control Improve Analyze Measure Define Please see page 233 (book-1)for details

 ISO 9000:2000 addresses quality management by specifying what the firm does to fulfill the customer’s quality requirements and applicable regulatory requirements while enhancing customer satisfaction and achieving continual improvement of its performance  Companies must be certified by an external examiner  Assures customers that the organization is performing as they say they are

 ISO 14000:2004 documents a firm’s environmental program by specifying what the firm does to minimize harmful effects on the environment caused by its activities  The standards require companies to keep track of their raw materials use and their generation, treatment, and disposal of hazardous wastes  Companies are inspected by outside, private auditors on a regular basis

 The Malcolm Baldrige National Quality Award promotes, recognizes, and publicizes quality strategies and achievements by outstanding organizations  It is awarded annually after a rigorous application and review process  Award winners report increased productivity, more satisfied employees and customers, and improved profitability