1. Quality Management MNGT 420
Different perspectives on Quality
Chapter 1

2. Definitions and perspectives
Quality
Definitions and perspectives
What is Quality?
Quality definition
Seven concepts of Quality
Key dimensions of Quality
The Three Spheres of Quality
Different Functional Perspectives of Quality (

3. Fitness for Use – Joseph M Juran
Quality - Definitions
Fitness for Use – Joseph M Juran
Conformance to requirements – Philip B. Crosby
Costs go down and productivity goes up as improvement of quality is accomplished by better management of design, engineering, testing and by improvement of processes –
W. Edwards Deming
Degree to which a set of inherent characteristics fulfills requirements – ISO 9000
Important

4. Quality - Definition
The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
American Society for Quality
An operations manager’s objective is to build a total quality management system that identifies and satisfies customer needs

5. Seven Concepts of TQM Important Continuous improvement Six Sigma
Employee empowerment
Benchmarking
Just-in-time (JIT)
Taguchi concepts
Knowledge of TQM tools
Important

6. Key Dimensions of Quality
Quality Dimensions
Definition
Performance
The ability to perform the task expected from it
Features
Attributes that supplement the product’s basic performance
Reliability
Product’s propensity to perform consistently over the product’s useful life.
Conformance
Adherence to quantifiable specifications
Durability
Ability to tolerate stress or trauma without failing
Serviceability
The ease and low cost of repair for a product
Aesthetics
Degree to which product attributes are matched to consumer preferences
Perceived Quality
Quality as the customer perceives it…image, recognition, word of mouth.
Value
The value for the money of customer
Important

7. Three Spheres of Quality
The Three Spheres of Quality

8. Different Functional Perspectives of Quality
Functional Perspectives on quality include:
Supply Chain Management
Engineering
Operations
Strategic Management
Marketing
Financial/Accounting
Human resources

9. Supply Chain Management Perspective
Supply Chain Management perspective on quality includes:
Upstream supply chain activities
Core supply chain processes
Downstream supply chain activities

10. Engineering Perspective
Design Life cycle
Engineering perspective:
Achieving quality through Applying mathematical problem-solving skills
and modeling techniques in relation to:
Product Design
Process Design
Important

11. Operation Management Perspective
Operations Management perspective on quality includes the use of:
Statistical Process Control (SPC) such as
Shewhart’s Control Process
Xbar and R Charts
P and C charts
Sampling

12. Operation Management Perspective
Uses the systems view that underlies modern quality management thinking
Conversion System Model of Operations Management

13. Strategic Management Perspective
Firms establish a planned course of action to achieve quality objectives
Course of action must be cohesive and coherent in terms of goals, policies, plans, and sequencing to achieve quality improvement
Aids an organization to achieve a sustainable competitive advantage
Generic strategic Planning Process

14. Statistical Process Control (SPC)
Uses statistics and control charts to tell when to take corrective action
Drives process improvement
Four key steps
Measure the process
When a change is indicated, find the assignable cause
Eliminate or incorporate the cause
Restart the revised process
Important

15. Marketing Management Perspective
Focuses on perceived quality of goods and services
The primary marketing tools for influencing customers perception of quality are price and advertising
The customer is the focus of marketing- related quality improvement
Marketing System

16. Financial Perspective
Relies more on quantified, measurable, results-oriented thinking
Identify and measure costs of quality by conducting trade- off and break- even analysis
The pursuit of quality does not safeguard a company against bad management
Deming Value Chain

17. Financial Perspective
Law of diminishing returns

18. Human Resource Perspective
Employee empowerment
Organizational design
Job analysis
Quality management flourishes where the workers’ and company’s needs are closely aligned

19. Determinants of Service Quality
Reliability
Consistency of performance and dependability
Responsiveness
Willingness or readiness of employees
Competence
Required skills and knowledge
Access
Approachability and ease of contact
Courtesy
Politeness, respect, consideration, friendliness
Communication
Keeping customers informed
Credibility
Trustworthiness, believability, honesty
Security
Freedom from danger, risk, or doubt
Understanding/ knowing the customer
Understand the customer’s needs
Tangibles
Physical evidence of the service
Important

20. References: BMW Quality Management
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The cost of poor quality
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