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Do Thi Thu Ha, MSc.

Lecture outline
Chapter 2 – p.54 In this chapter, you will learn about:
1. What is Quality?
2. Quality tools

Quality 3. Quality in Services

4. Six Sigma
Management 5. ISO

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What is Quality? - Customer’s perspective Dimensions of Quality: Manufactured Products

The dimensions of quality for manufactured products a consumer looks for
include the following:
1) Performance

Supplier Manufacturer Warehouse Consumer 2) Features

Distributors
Quality: 3) Reliability
the needs of the Product and service quality is determined by what the customer 4) Conformance
consumer, present wants and is willing to pay for.
5) Durability
and future
fit for use but with 6) Serviceability
Fitness for use: different design 7) Aesthetics
is how well the product dimensions
or service does what it is 8) Safety
supposed to 9) Other perceptions

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Dimensions of Quality: Services What is Quality? - Producer’s Perspective

Quality of conformance:
1) Time and timeliness is making sure the
Achieving quality of conformance involves design,
materials and equipment, training, supervision, and control.
2) Completeness product or service is
produced according to
3) Courtesy design
4) Consistency
1. What happened in this case?
5) Accessibility and convenience 2. How did the company face
6) Accuracy the problem?
3. What did you learn from the
7) Responsiveness L.L Bean opinion?
 Service quality is more directly related to time, and the interaction
between employees and the customer Case study of L.L. Been Inc. page 58

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Quality tools
What is Quality? – A Final Perspective
Process Flow Chart Pareto Analysis
Cause-and-Effect
Diagram
Scatter Diagram
Check Sheet
Statistical Process
Histogram Control Chart
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Process flowcharts Process flowcharts

Process flowchart:  Elongated circles, which signify the start or end
a diagram of the steps of a process
in a job, operation, or
process.
 Rectangles, which show instructions or actions.
a clear picture of how a specific
operation works
a common frame of reference  Diamonds, which highlight where you must
understand the interrelationship of make a decision
the departments and functions

Helps focus on location of  Parallelograms, which show input and output.

problem in a process This can include materials, services or people.
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Practice: Process flowchart design Practice: Choose 1 case below

You work in an entertainment company and the singer of your
Case Airline Case Hotel
company just release a new album. You have to design a
process for your sales force who are in charge of receiving Design a process Design a process
orders on the internet and shipping albums to customers. flowchart for airline staffs flowchart for hotel staffs
Use a flowchart to create your process. Remember that your who are in charge of who are in charge of
process has to reach the main objective – setting online bookings getting online room
“Selling out and shipping successfully" and confirming seats after bookings and confirming
receiving online payments rooms for customers
for customers through through emails after
emails. receiving their deposits.
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Cause-and-Effect Diagram Cause-and-Effect Diagram

Cause-and-effect diagram
or fishbone diagram:
Identify the causes of a quality problem DELAY IN
a chart showing the
 Solve it CUSTOMS
different categories of
problem causes. ORDERS

Elevator Student
Slow
Small Crowed Low
Old Attitude
elevator
Small speed
Lack of investment
Many floors
School facility

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Check sheets, Histograms and Pareto analysis

A check sheet: Defects Mon Tue Wed Thu Fri Sat Sun
List down possible causes that lead to is a list of causes of
quality problems with the Wrong
the effect. number of defects orders
resulting from each cause Reworked
used to develop a bar orders
chart called a histogram.
Why you can not sleep early every night? Late
deliveries
Pareto analysis:
most quality problems Shipping
result from a few causes. damage
Note: bring up at least 3 categories Late
payments
Cause of poor quality in A&M company
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Check sheets, Histograms and Pareto analysis Check sheets, Histograms and Pareto analysis
No. of 45 45.00

Mon Tue Wed Thu Fri Sat Sun

Total
defects % 40 39 40.00
40.63

defects
Wrong 35 35.00
39 40.63
Wrong orders 39 orders 30 28 30.00
29.17

Percentage (%)
Reworked

Frequency
25 25.00
9 9.38
Reworked orders 9 orders 20 19 20.00
19.79

Late 15.00
19 19.79 15
Late deliveries 19 deliveries 9 10.00
9.38
10
Shipping
28 29.16 5 5.00
Shipping damage 28 damage 1 1.04
0 0.00
Late
1 1.04
Late payments 1 payments
TOTAL 96 100
Total 11 3 27 6 2 28 19 96
Cause of poor quality in A&M company
Cause of poor quality in A&M company
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Scatter Diagram Statistical Process Control Chart

A scatter diagram: The amount of sleep needed per day by age A control chart : Out of control
is a graph showing how 18 is a means for measuring Upper
two process variables 16 if a process is doing what control
limit
relate to each other. 14 it is supposed to do.
12 Process
A process is in control if: average
visually show a 10
Hours

8 • no sample points outside limits

relationship between Lower
6 • most points near process
the two variables control
4 average limit
to identify pattern that 2 • about equal number of points
may cause a quality 0 above and below centerline 10 20 30 40 50 60 70 80 90 100
problem 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 • points appear randomly
Age distributed

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Quality in service Benchmark:

Six sigma 6σ and Breakthrough Strategy: DMAIC
“best” level of quality achievement in Six Sigma: Lean Six Sigma:
 Service defects are not always
one company that other companies measure of how much integrating Six
easy to measure because service seek to achieve. a process deviates Sigma and lean
output is not usually a tangible, from perfection. systems.
physical item.
 Services tend to be labor intensive.
 Services and manufacturing
companies have similar inputs but
different processes and outputs.
 Timeliness is an important
dimension of service quality
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ISO 9000
ISO 9000:
is a set of procedures
and policies for the
international quality
certification of suppliers.
International Organization for Standardization Practice Questions page 100-101
ISO has developed over 22059 International
Standards.  2-28
 The ISO 9000 family addresses various  2-29
aspects of quality management and contains  2-30
some of ISO’s best known standards.
 2-32
 The standards provide guidance and tools for
 2-39
companies and organizations who want to
ensure that their products and services  2-44
consistently meet customer’s requirements,
and that quality is consistently improved.
 ISO does not perform certification

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Quality is more
important than
quantity. One
home run is much
better than two
doubles.

- Steve Jobs -
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