INTRODUCTION to QUALITY MANAGEMENT PROF. SYAMSIR ABDUH, PhD 1
What is Quality ? Performance to the standard expected by the customer (FedEx) Meeting the customer’s needs the first and every time (GSA) Providing our customers with products and services that consistently meet their needs and expectations (Boeing) Doing the right thing right the first time, always striving for improvement, and always satisfying the customer (USD)
QUALITY (Conventional) Meeting the need of customers What is Quality? QUALITY (Conventional) Performance Reliability Easy for use Esthetics QUALITY (Strategic) Meeting the need of customers Q-MATCH Quality = Meets Agreed Terms and Changes
Quality Defined Fitness for use (Juran) Conformance to specifications (Crosby) Loss to society (Taguchi) Predictable degree of uniformity (Deming) Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs (ISO: 8402-1994)
Two Components of Quality Manufacturing Industries Service Industries Performance Reliability Durability Ease of use Serviceability Esthetics Availability of options & expandability Reputation Accuracy Timeliness Completeness Friendliness & courtesy Anticipating customer needs Knowledge of server Appearance of facilities & personnel Reputation Product features Product free of defects and errors at delivery, during Use, servicing Service free of error during Original and future service transactions Freedom from deficiencies
Total Organization Performance Efficiency Effectiveness Quality Productivity Profitability (Organizational Performance) Innovation Quality of Working Life
Cost Reduction Strategy Quality Improvement Cost Reduction Productivity Improvement Price Competitiveness Market Share Focus on Business Workforce Return on Investment
Profit Attract Cust Retain Enhance Relation Value Price Overall Quality Image Sales Market New Product Dev Delivery After Support Attributes
Quality Disciplines and Other Disciplines Finance Industrial Engineering Information technology Marketing research Operation management Operation research Organizational behavior Organizational Effectiveness Strategic planning System engineering Value engineering Example of contribution Measuring the cost of poor quality Design of integrated system Measurement, analysis, reporting Competitive standing on quality Management of integrated systems Analyzing product design alternative Understanding quality culture Satisfying the needs of both internal & external Quality as a means of achieving c.a Translating customer needs into p.f Analysis of essential functions needed by customer
Understanding Customer- Defined Quality In a total quality, quality is defined by the customer The customer must be the organization’s top priority. The organization’s survival depends on the customer Reliable customers are the most important customers Customer satisfaction is ensured by producing high quality products
QUALITY EVOLUTION Future…? 1930 Shewart cycle 1950’s Deming in Japan 1980 Quality circles 1985 Deming/ Crosby/ Juran Late 1980’s TQM 1990 Baldrige criteria Current Six sigma - Lean management Future…? 11
QUOTES ABOUT QUALITY “It’s not enough to do your best. First you have to know what to do. Then you can do your best.” —Dr. Edward Deming “If you can’t describe what you are doing as a process, you don’t know what you are doing.” “It has been said that there will be two kinds of company in the future, companies which have implemented Total Quality and companies which are out of business” —John Cullen 12
QUESTIONS…? 13