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LECTURE 1 A QUALITY
LECTURE 1 A QUALITY
LECTURE 1 A QUALITY
2. The industries are now associated with rapid technological changes and product variety
proliferation in order to remain competitive.
4.Today, quality and value are, first and above all, and the customer expects them.
5. Quality in the successful organization is fully integrated into all of the business
processes and is an extension of everything else that has to happen along the path to
success.
QUALITY
▪ Dictionary has many definitions:
• The efficient production of the quality that the market expects (DEMING)
• A quality system is the agreed on company wide and plant wide operating
work structure, documented in effective, integrated, technical and
managerial procedures for guiding the co-coordinated actions of people,
the machines, or the information of company in the best and most
practical ways to assume customer quality satisfaction and economical
costs of quality. (FEIGENBAUM)
American Society of Quality Control (ASQC) defines Quality as:
The totality of features and characteristics of a product or services that bear on its ability to
satisfy stated or implied needs of the customers.
Degree: refers to a level to which a product or service satisfies. So, depending upon the level of
satisfaction, a product may be termed as excellent, good or poor quality product.
Inherent characteristics: those features that are a part of the product and are responsible to
achieve satisfaction.
Requirements: refer to the needs of customer, needs of organization & those of other
interested parties (e.g. regulatory bodies, suppliers, employees, community & environment).
The Meaning of Quality
The Meaning of Quality
Fitness for
Figure 14.1 Consumer Use
• What is a customer?
Anyone who is impacted by the product or process delivered by an organization.
External Customer: The end user as well as intermediate processors. Other external
customers may not be purchasers but may have some connection with the product.
Internal Customer: Other divisions of the company that receive the processed
product.
• “A Customer’s impression of quality begins with the initial contact with the company
and continues through the life of the product.”
– Customers look to the total package - sales, service during the sale, packaging,
delivery and service after the sale.
Why the Quality becoming a cardinal priority for organizations ?
• Competition – Today’s market demand high quality products at low cost. So having
`high quality’ reputation is not enough. Internal cost of maintaining the reputation
should be less.
• Changing customer – The new customer is not only commanding priority based on
volume but is more demanding about the “Quality System”.
• Changing product mix – The shift from low volume, high price to high volume, low
price have resulted in a need to reduce the internal cost of poor quality.
• Product complexity – As systems have become more complex, the reliability
requirements for suppliers of components have become more stringent.
• Higher levels of customer satisfaction – Higher customers expectations are getting
executed by increasing competition.
The following definitions look at quality from a management, quality assurance,
product, marketing, manufacturing and economic point of view.
It's easy to think of examples of fit for purpose. If the purpose of an aircraft is
to be fast, efficient, comfortable and safe — then that's the definition of a
quality aircraft.
Fit for purpose is a practical and flexible definition that's the cornerstone of
most quality management initiatives.
2. Conformance to Requirements
• Quality is often measured in terms of conformance to requirements.
For example, business users define requirements for a sales system.
The sales system is developed and its quality is measured against the
requirements.
Durability
How long product lasts before replacement.
Aesthetics
(What does the product look like?) How a product looks, feels, sounds, smells or
tastes.
Safety
Assurance that customer will not suffer injury or harm from a product.
2. Services Dimensions
The product must be designed to meet the requirement of the customer. The
product must be designed right first time and every time and while designing all
aspects of customer expectations must be incorporated into the product. The
factors need to consider while designing the product are:
– Type of product
– Cost
– Profit policy of the company
– Demand
– Availability of the parts
2. Quality of Conformance: Manufacturer's Perspective
The product must be manufactured exactly as designed.
▪ Appraisal costs
▪External failure costs
A. Cost of Achieving Good Quality
1.Prevention Costs
• Quality planning costs • Training costs
– costs of developing and – costs of developing and
implementing quality management putting on quality
program training programs for
• Product-design costs employees and
– costs of designing products with management
quality characteristics
• Information costs
• Process costs
– costs expended to make sure – costs of acquiring
productive process conforms to and maintaining data
quality specifications related to quality, and
development and
analysis of reports on
quality performance
Cost of Achieving Good Quality (Cont’d)
2. Appraisal Costs
It is used as a monitoring tool to track costs for inspection, internal errors, external
errors, and prevention.
Cost of Non-Conformance
E: External Failure Costs
I: Internal Failure Costs
A: Appraisal Costs
Cost of Conformance
P: Prevention Costs
S: Sales
COQ = Prevention Cost + Appraisal Cost + Internal
Failure Cost + External Failure Cost