Quality Management SEM, Tongji University

Course Objective Understanding of the critical, strategic role that Quality Management plays in an organization and of how it can be implemented though conveying the major concepts and tools concerning QM

Reference Source Printed teaching material Total Quality Control, Armand V. Feigenbaum, McGraw-Hill Companies; 3rd edition (January 1, 1991) Journal of Quality Management（ISSN：1084-8568） Quality Assurance（ISSN：1052-9411） Quality progress（ISSN：0033-524X） Total Quality Management（ISSN：0954-4127） http://www.chinadaily.com.cn http://www.iso.org/iso/en/ISOOnline.frontpage

Assessment (Grading) Participation In-class Participation 10% Individual Project Presentation 5% Report Individual Assignments Assignment #1 Assignment #2 Group Project Groupmate Evaluation Final Exam 40%

Concept of quality Quality issue has been the main concern of human being. Without quality, the social progress, economic development and the enhancement of people’s living standards would have been all the illusion. Governments all over the world pay high attention to quality field. ——Mr. ZHU Rong-ji: “Quality is the life of Shanghai.”

Concept of quality During China’s process of transforming the system of planned economy into that of the socialism market economy, there still exists a big gap between China and those developed countries with respect to quality problems and their improvement.

Concept of quality Table 1.1 Qualification Rate of Industrial Products in China between 1992-2001( %) Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Yearly average 1992 74.2 73.1 70.1 64.7 1993 67.6 67.0 72.2 73.8 70.4 1994 69.1 52.5 68.9 69.8 1995 65.9 77.7 73.6 81.0 75.4 1996 79.6 77.1 78.4 74.0 77.2 1997 79.2 76.2 79.4 78.3 1998 76.5 77.8 78.0 78.9 1999 79.0 78.7 2000 80.2 80.4 75.8 78.8 2001 76.8 77.0 76.1 Data source：sampling results issued by General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China

Concept of quality Besides, annual loss caused by quality problems amounts to several hundred billion Yuan (RMB). The quality defects have been an important factor in harassing the development of Chinese mainland economy.

Concept of quality In 20th century, the mankind has achieved outstanding accomplishments with the rapid growth of productivity and the remarkable enhancement of product quality. Dr. Juran observed in 1994 that the 21st will be the century of quality while the 20th century could be considered as century of productivity. For the increasing international competition since 1960s, Dr. Harrington concluded that it is not a war with firearm, but a war of business with the product quality as major weapon.

Concept of quality If more and more quality improvements are made in China through efforts, it will contribute remarkably both to the progress of Chinese society and economy, but also to the advancement of world economy.

Concept of quality What is product?

Concept of quality Concept of product and its development Product: result of process, including: —hardware: counting, tangible —process material: continuous, tangible —software: information, intangible, form of methods, thesis and procedure —service: intangible, on the interface of supplier and customer e.g. automobile repair, information delivery, creating atmosphere like hotel and restaurant Goods Process material: lube, gasoline.

Concept of quality Concept of product and its development Many products are made of different products and the difference among service, software, hardware and process material depends on its dominating component. —example of automobile: tyre, fuel, cooling fluid, engine controlling system, driving instruction offered by salesperson

Concept of quality Concept of product and its development Development of product concept -- From the product concept prescribed by the contract to all the consequence caused by the operational activities taken by the enterprise -- Cycle economy: green design, green technology, green product Green product embodies the mankind’s requirements of quality in the terms of cost, benefit and risk.

Concept of quality What is customer? Individual Enterprise

Concept of quality Concept of customer and its development Customer: Organization or individual receiving the product, including the consumer, consigner, final user, retail dealer, purchasing party and so on. The customer of an enterprise should cover all those who are influenced by the organization’s operations. Customer could be internal and external for an organization. Expense of customer: -- In narrow sense: direct expense occurred when purchasing the product -- In broad sense: indirect expense on the resource consumed and environmental pollution

Concept of quality What is quality? Function Reliability Variety Perception What’s your unpleasant experience in consumption?

Concept of quality Concept of quality and its development Quality: the ability of a group of characteristics in satisfying the requirements Characteristic: physics, sense, behavior, functional and so on Requirements: explicit, often connotative (established practice for organization, customer and other interested parties) or mandatory demands or expectations

Concept of quality Concept of quality and its development Comprehensive quality of the whole organization Quality of product

Concept of quality Concept of quality and its development Dr. Juran advanced the “Quality Spiral” (also called quality loop) in 1960s. -- 13 phases -- continuous improvement -- whole process management -- QM is the social system engineering -- people as main body

Concept of quality Concept of quality and its development --石川馨(Kaoru Ishikawa)’s understanding of quality Quality reflects the customer satisfaction degree. Quality definition varied with the customer requirements. Price is an important part of quality. Quality in broad sense should include the quality of work, service, information, process, department, people, company and objective. Total quality

Concept of quality Concept of quality and its development The advancement of the sustainable development concept has promoted the environmental implications of quality, namely resource saving and environmental protection. Expense of quality: high quality with low expense and low quality with high expense Integrated impact of quality on the cost, benefit, risk and other aspects for the human being.

Thanks for your attention! My email address: -- xuemei.du@163.com, -- duxuemei@mail.tongji.edu.cn