1. Greg Baker © 2004 1 Part One The Foundations – A Model for TQM Chapter # 1 Understanding quality

2. Greg Baker © 2004 2 Chapter Outline 1.1 Quality and competitiveness 1.2 Understanding and building the quality chains 1.3 Managing processes 1.4 Quality starts with ‘Marketing’ 1.5 Quality in all functions

3. Greg Baker © 2004 3 1.1 Quality and competitiveness Reputation for quality, reliability, price, and delivery – all things we compete on Lessons to be learned about reputation from this story: 1. Competitive elements of quality, reliability, delivery, and price. 2. It takes a long time to change the poor reputation for quality. 3. Reputations, good or bad, can quickly become national reputations 4. The management of the competitive weapons can be learned and used to turn round a poor reputation.

4. Greg Baker © 2004 4 1.1 Quality and competitiveness What is quality? “meeting the customer requirements” What is reliability? “It is the ability of product and service to continue to meet the customer requirements ” Quality is meeting the customer requirements, and this is not restricted to the functional characteristics of the product or services.

5. Greg Baker © 2004 5 1.2 Understanding and building the quality chains Meeting the customer requirements within the organization. Failure (QC manager and others) Failure  not doing it right the first time at every stage of the process. Throughout and beyond all organizations - manufacturing & service- there is a series of quality chains of customer and supplier. Quality chains may be broken at any point, customer  not satisfied.

6. Greg Baker © 2004 6 The concept of internal and external customers/suppliers forms the core of total quality. Quality has to be managed – it will not just happen. Failure to meet the requirements in any part of quality chain leads to yet more failure. The price of quality is the continual examination of the requirements and our ability to meet them  “continuing improvement” philosophy. 1.2 Understanding and building the quality chains

7. Greg Baker © 2004 7 1.2 Understanding and building the quality chains ustomer C upplier S ustomer C upplier S ustomer C upplier S Outside organization The quality chains

8. Greg Baker © 2004 8 1.2 Understanding and building the quality chains Meeting the requirements  the first item on the list of things to do is find out what requirements are.  If we are dealing with a customer/supplier relationship, the supplier must understand not only the needs of the customer but also the ability of his own organization to meet them.  Internal supplier/customer relationships are often the most difficult to manage in terms of establishing the requirements.

9. Greg Baker © 2004 9 1.2 Understanding and building the quality chains  To achieve quality throughout an organization, each person in the quality chain must interrogate every interface as follows: Customers: who are my immediate customers? what are their true requirements? how can I measure my ability to meet the requirements? Suppliers: who are my immediate suppliers? what are my true requirements?

10. Greg Baker © 2004 10 1.2 Understanding and building the quality chains  To understand how quality may be built into a product or service, at any stage, it is necessary to examine the two distinct, but interrelated aspects of quality: 1. Quality of design 2. Quality of conformance to design

11. Greg Baker © 2004 11 1.2 Understanding and building the quality chains Quality of design  TV chair example  Quality of design is a measure of how well the product or service is designed to achieve the agreed requirements.  The most important feature of the design, with regard to achieving quality, is the specification.  Specifications must also exist at the internal supplier/customer interfaces.  There must be an agreement that the operating departments can achieve that requirement.

12. Greg Baker © 2004 12 1.2 Understanding and building the quality chains Quality of conformance to design  What the customer actually receives should conform to the design.  The conformance check makes sure that things go according to plan.  Organizations may use the simple matrix to assess how much time spent doing the right things right. Right Wrong X X ? The way we do them Things we do

13. Greg Baker © 2004 13 1.3 Managing processes Have we done the job correctly?  This is not quality control, it is detection.  This process –detection- happens at the end of the processes. Are we capable of doing the job correctly?  We should realize that an answer will only be obtained by means of satisfactory methods, materials, equipment, skills and instruction, and a satisfactory ‘process’.

14. Greg Baker © 2004 14 1.3 Managing processes What is a process?  A process is the transformation of a set of inputs, which can include actions, methods and operations, into outputs that satisfy customer needs and expectations, in the form of products, information, services or –generally- results.  To produce an output meets the requirements, it is necessary to define, monitor and control the inputs to the process.  Every single task throughout an organization must be viewed as a process.

15. Greg Baker © 2004 15 1.3 Managing processes Process Materials Procedures Methods Information People Skills Knowledge Training Equipment Product Service Information Paperwork SUPPLIERSSUPPLIERS CUSTOMERSCUSTOMERS

16. Greg Baker © 2004 16 1.3 Managing processes If our process is capable of meeting the requirements, “Do we continue to do the job correctly?”, this needs to monitor and control the process. Are we capable of doing the job correctly? Have we done the job correctly? Do we continue to do the job correctly? DetectionPrevention

17. Greg Baker © 2004 17 1.3 Managing processes Quality control  The activities and techniques employed to achieve and maintain the quality of a product, process, or service.  It is concerned with finding and eliminating causes of quality problem. Quality assurance  The prevention of quality problems through planned and systematic activities (including documentation).

18. Greg Baker © 2004 18 1.4 Quality starts with ‘Marketing’ Marketing is responsible for determining the key characteristics that determine the suitability of the product or service in the eyes of the customer. Excellent communication between customers and suppliers is the key to total quality. Requirements must be communicated properly throughout the organization in the form of specifications which can be used as the basis for the design.

19. Greg Baker © 2004 19 1.4 Quality starts with ‘Marketing’ The information requirements include: 1. Characteristics of performance & reliability 2. Aesthetic characteristics 3. Any obligatory regulations or standards governing the nature of the product or service Marketing must also establish systems for feedback of customer information and reaction, and these systems should be designed on a continuous monitoring.

20. Greg Baker © 2004 20 1.4 Quality starts with ‘Marketing’ In reviewing of market readiness of a new product or service. Items that require some attention include assessment of: 1. The suitability of the distribution & customer- service system 2. training of personnel in the field 3. Availability of spare parts or staff support 4. Evidence that the organization is capable of meeting customer requirements

21. Greg Baker © 2004 21 1.5 Quality in all functions For an organization to be truly effective, each part of it must work properly together. Errors have a way of multiplying. Business employs so many different specialist skills that everyone has to rely on the activities of others in doing their jobs. The commitment of all members of an organization is a requirement of ‘company-wide quality improvement’.