Quality Management

Compiled by:
Alex J. Ruiz-Torres, Ph.D.
From information developed by many.
Outline
• Basics
• Measurement
• TQM and ISO
• Six Sigma
• Additional resource

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Quality Basics
• Quality in business, engineering and manufacturing has a
pragmatic interpretation as the superiority of something.
• Quality is a perceptual, conditional and somewhat subjective
attribute and may be understood differently by different
people.
• Consumers may focus on the specification quality of a
product/service, or how it compares to competitors in the
marketplace.
• Producers might measure the conformance quality, or
degree to which the product/service was produced correctly.

 Quality

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Quality Basics
• A complex measure given in many cases it depends
on who is measuring.
– Functionalities
– Reliability
– Appearance
• Physical products have quantitative measures that
determine its quality (length, voltage, …)
• The quality of service products is harder to measure
as it depends on customer expectations

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Quality Basics
• Important to have “good” quality. “Poor” quality alienates customers
and “good” quality means customer satisfaction and positively
impacts employee loyalty.
– It is economically sound to limit customers switching to competitors’ brands.
– It is costly to attract new customers, especially when they are loyal to
competitors’ brands. This is called the switching expense.
– Employees have pride of ownership related to the organization they work for

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Quality Basics
Design Quality (or specification quality)
– Relative dimension among products in a market

“basic” “top of the line”

Hamilton Beach Kitchen Aid Dualit

$15 $60 $330

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Quality Basics

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Quality Basics
• Conformance Quality
– How it performs versus design (or versus expectation).
Producers measure it, but also do consumers.

Customer expected 3.
“dies” Quality perception?
Years of use

1 2 3 4 5 6 7
Customer expected 10.
“dies” Quality perception?

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Quality Measurement
• In manufacturing is “often” easy
to verify conformance to
specifications = quality D 2  0.01
– Dimensions
– Repetitive tests
(number of successes before a 12  0.05
failure)
– Functional test (Dishwasher turns
on, all cycles work, water does not 6  0.05
leak)
– But aesthetic or visual inspections
are always tricky

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Quality Measurement
• Issues in 100% inspection versus sampling
– Probability of failure
– Cost / time to inspect
– Effect of inspection on product
– Cost/effect of the defect
– 100% inspection is no guarantee 0 defects.
• Multiple sample techniques and models
based on desired confidence level

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Quality Measurement
• Service Products
– Difficult to determine how to measure it
– Driven by the type of service
– Internal measures related to service
characteristics the customer values
• Time waiting
• Attitude of service provider/ personal attention
• Functional performance (savings generated for the
customer)
– Perception and reality of the experience differ

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Deming – one of the Gurus
System of Profound Knowledge
• System
– Processes are cross-functional and all of these functions must work
together
– Every system must have a purpose
– Management must optimize the system as a whole

• Variation
– Multiple sources of variation exist in any process
– Variation results in product failures, unhappy customers, and
unnecessary costs
– Statistical methods can be used to identify and quantify variation to
help understand it and lead to improvements

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Deming’s 14 Points
1. Create constancy of purpose toward improvement of product
and service, with the aim to become competitive and stay in
business, and to provide jobs.
2. Adopt/learn the new philosophy.
3. Understand the purpose of inspection/ do not depend on
inspections.
4. End business practices driven by price alone, evaluate total cost,
long term relationships.
5. Constantly improve the processes.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear and create trust.

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Deming’s 14 Points
9. Optimize team and individual efforts, breakdown barriers
between departments.
10. Eliminate slogans, exhortations, and targets for work force.
11. Eliminate numerical quotas and M.B.O. Focus on
leadership.
12. Remove barriers that rob people of pride
of workmanship (for example focusing on numbers).
13. Encourage education and self-improvement.
14. Take action to accomplish the transformation, put
everybody in the organization to work to accomplish the
transformation.

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 Juran
• Quality planning follows a universal
sequence of steps, as follows:
– Identify customers and target markets
– Discover hidden and unmet customer needs
– Translate these needs into product or
service requirements: a means to meet their
needs (new standards, specifications, etc.)
– Develop a service or product that exceeds
customers' needs
– Develop the processes that will provide the
service, or create the product, in the most
efficient way
– Transfer these designs to the organization
and the operating forces to be carried out

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Total Quality Management (TQM)
– Management approach that became popular in the
80’s. Quality Gurus: Juran and Deming. juran.com/

– Top management led deming.org/

– Focuses on customer satisfaction as the key
measure of performance and driver for business
decisions
– Continuous improvement of processes
– Based on the concept that poor quality costs you
money
• Cost of inspecting, rework, scrap
• Lost customers
– Invest on design for quality and prevention of
errors

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ISO 9000
• ISO has multiple standards related to quality management,
best known for ISO 9000
– Quality management system (QMS)designed to help organizations
ensure they meet the needs of customers and other stakeholders
– Third party certification
– Over a million organizations worldwide are independently certified
ISO QM Principles
Examples of organizations

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ISO 9000
Examples of issues that are controlled by a QMS
• Control of Documents
• Control of Records
• Internal Audits
• Control of Nonconforming Product / Service
• Corrective Actions
• Preventive Actions

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Additional Resource
• American Society for Quality (ASQ): professional
organization - provides training, certifications,
networking opportunities.
– Nice presentation of quality tools and techniques
– Materials for purchase (textbooks/ guides)
– On-line and classroom based certifications
– National Conferences
– Local presence
 ASQ

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