Management of Quality

 Dictionary has many definitions: “Essential characteristic,” “Superior,” etc.  Some definitions that have gained wide acceptance in various organizations: “Quality is customer satisfaction,” “Quality is Fitness for Use.”  Quality is the ability of a product or service to consistently meet or exceed customer expectations. 9- 2

 Meeting Customer Requirements. (stated or implied)  Through Totality of Good and Services.  By Conforming to a specified standards.  At a given Time or over a period of time.  At a price a customer can afforded and has willingness to pay. 9- 3

 Before Industrial Revolution, skilled craftsmen served both as manufacturers and inspectors, building quality into their products.  Industrial Revolution changed this basic concept to interchangeable parts. Likes of Thomas Jefferson and F. W. Taylor (“scientific management”. 9- 4

Statistical approaches to quality control started at Western Electric with the separation of inspection division. Pioneers like Walter Shewhart, George Edwards, W. Edwards Deming and Joseph M. Juran were all employees of Western Electric. After World War II, under General MacArthur's Japan rebuilding plan, Deming and Juran went to Japan. 9- 5

Deming and Juran introduced statistical quality control theory to Japanese industry. The difference between approaches to quality in USA and Japan: Deming and Juran were able to convince the top managers the importance of quality. After 20 years Market started preferring Japanese products and American companies suffered immensely. 9- 6

America woke up to the quality revolution in early 1980s. Ford Motor Company consulted Dr. Deming to help transform its operations. (By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese government had instituted The Deming Prize for Quality in 1950.) Managers started to realize that “quality of management” is more important than “management of quality.” Birth of the term Total Quality Management (TQM). 9- 7

 Walter Shewart ◦ In 1920s, developed control charts ◦ Introduced the term “quality assurance”  W. Edwards Deming ◦ Developed courses during World War II to teach statistical quality-control techniques to engineers and executives of companies that were military suppliers ◦ After the war, began teaching statistical quality control to Japanese companies  Joseph M. Juran ◦ Followed Deming to Japan in 1954 ◦ Focused on strategic quality planning

 Armand V. Feigenbaum ◦ In 1951, introduced concepts of total quality control and continuous quality improvement  Philip Crosby ◦ In 1979, emphasized that costs of poor quality far outweigh the cost of preventing poor quality ◦ In 1984, defined absolutes of quality management— conformance to requirements, prevention, and “zero defects”  Kaoru Ishikawa ◦ Promoted use of quality circles ◦ Developed “fishbone” diagram ◦ Emphasized importance of internal customer

 Statistical process control charts  Tables for acceptance sampling  1940’s - Statistical sampling techniques  1950’s - Quality assurance/TQC  1960’s - Zero defects  1970’s - Quality assurance in services 9- 12

Characteristic a) Technological – Strength, Hardness and Surface Finishing b) Psychological – Taste, Status and Beauty c) Time Oriented – Reliability, Maintainability and Availability d) Contractual – Contractual Provision e) Ethical – Courtesy and Honesty 9- 13

Quality of design – Quality of Market Research – Quality of Concept – Quality of specifications Quality of Conformance – Technology – Manpower – Management Availability – Reliability – Maintainability – Logistical Support Service Example in Quality of Design in Car Industry Size Appearance Comfort Fuel Economy Comfort Material Used

Performance: main characteristics of the product/service Conformance : how well product/service conforms to customer’s expectations. Aesthetics: appearance, feel, smell, taste Special Features: extra characteristics Reliability: consistent Durability: Product life Perceived Quality: indirect evaluation ( reputation) Serviceability: after sale service PROPOSED BY PROF. DAVID GARDIN

FROMTO ReactiveProactive Detection & InspectionPrevention Acceptable Quality LevelZero Defect Blame PlacingProblem Solving Cost or QualityCost & Quality Quality Cost MoreQuality Cost Less Meet the SpecificationContinuous Improvement 9- 16

FROMTO Quality Department has only quality Problem R&D, Purchasing, Marketing, Operations etc have quality problem Subordinate to Management team Part of Management Team Quality is TechnicalQuality is Managerial 9- 17

 Convenience  Reliability  Responsiveness  Time  Assurance  Courtesy  Tangibles 9- 18

DimensionExamples 1. ConvenienceWas the service center conveniently located? 2. ReliabilityWas the problem fixed? 3. ResponsivenessWere customer service personnel willing and able to answer questions? 4. TimeHow long did the customer wait? 5. AssuranceDid the customer service personnel seem knowledgeable about the repair? 6. CourtesyWere customer service personnel and the cashierfriendly and courteous? 7. TangiblesWere the facilities clean, personnel neat? 9- 19

 Loss of business: Customer quietly stops buying  Liability: Due to damages or injuries  Productivity: Rework or scrap (more input)  Costs 9- 20

Enhance reputation Increase market share Greater customer loyalty Lower liability Cost Fewer complains Lower production cost Higher profits

 Top management  Design  Procurement  Production/operations  Quality assurance  Packaging and shipping  Marketing and sales  Customer service 9- 22

 Failure Costs - costs incurred by defective parts/products or faulty services.  Internal Failure Costs ◦ Costs incurred to fix problems that are detected before the product/service is delivered to the customer.  External Failure Costs ◦ All costs incurred to fix problems that are detected after the product/service is delivered to the customer

 Appraisal Costs ◦ Costs of activities designed to ensure quality or uncover defects  Prevention Costs ◦ All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring 9- 24

◦ Upon Received of Raw Materials ◦ Before Costly & irreversible Operations ◦ Before work that could hide defect ◦ Upon Completion of a product ◦ Before stocking high value items ◦ Before shipment to customers 9- 25

END OF PART –