Introduction to Quality

Chapter 1
By: DR. ROWENA C. VILLAMIL
Quality Means

Different perspectives
 A. transcendent
 B. product
 C. value
 D. User
 E. Manufacturing
 D. Customer
Quality Responses

1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Providing a good, usable product
7. Doing it tight the first time
8. Delighting or pleasing customers
9. Total customer service and satisfaction
Transcendent (Judgmental) Perspective

 Walter Shewart – pioneer of a quality control

 Quality as a goodness of a product
 Transcendent (transcend) to rise above or extend beyond ordinary list
 High absolute and universally recognizable
 Standards and high achievement
 Examples:
 Rolex watch
 Rich Carlton hotels
 Lexus automobiles
 Aesthethic characteristics of products of marketing and advertising
 Product excellence: higher price
 Excellence: abstract and subjective; standards of excellence
Product perspective

 Refers to another quantity of some product attribute

 Example: number of different features in automobile or cell phone
 Assessment implies larger number of product attributed are equivalent to higher quality
(more features are incorporated
 Good marketing research is needed to understand what features customers want in a
product
User Perspective

 User based definition of quality (fitness for intended use) or (how well the product
performs its intended function
 Example: Cadillac CTS and Honda Civic
 They serve different needs and customers
 Cadillac (highway touring vehicle for luxury amenities)
 Honda Civic (for commuting in a congested urban environment)
 Another example: stoves and refrigerator
 Could not pass through the narrow doors of Japanese kitchens
 Although the products’ performance characteristics were high, the products were not fit for
use in Japan
Value Perspective

 4th approach to defining quality is based on value

 Relationship of product benefits to price
 Consumers no longer buy solely on the basis of price
 But compare the quality of total package of goods and services that a business offers
( known as customer benefit package) with PRICE and competitive offerings.
Customer Benefit Package

 Includes: physical product, quality dimensions, pre-sale support (like ease of ordering,
rapid, on time, accurate delivery and post-sale support (like: field services, warranties, and
technical support
 Example: generic pharmaceuticals (usually provide the same medical benefits at a lower
price
 Proctor and Gamble: used the concept of VALUE PRICING (offering products at everyday
low prices in an attempt to counter the common consumer practice of buying whatever
brand happens to be special)
 Competition demands that business continually seeks to satisfy consumers needs at lower
prices.
Manufacturing Perspective

 Having standards for goods and services and meeting these standards leads to the 5 th
definition of quality that is CONFORMANCE TO SPECIFICATIONS
 Specifications are target and tolerances determined by designers of goods and services
 Targets are called NOMINAT Specifications
 These are the ideal values for which production is to strive
 Tolerances are necessary because it is impossible to hit the targets all the time.
 Specifications are meaningless if they do not reflect attributes that are deemed important to
the consumers
 Example: coca-cola strives to ensure that its products will taste the same anywhere in the
world a consumer might buy them
Customer Perspective

 Is defined as the totality of features and characteristics of a product or service that bears on
its ability to satisfy given needs.
 Customer – ultimate purchaser of a product or service
 Example: automobile engine plant may purchase steel from a steel company, produces
engine and then transport the engine to an assembly plant.
 The customers are called EXTERNAL CUSTOMERS
 Internal Customers – receive goods or services from suppliers within the organization
 Customer driven quality – is fundamental to high performing organizations
 Example: Hilton Hotels Corp., implemented Ultimate Service program which trains
employees to anticipate guest needs, personalize high levels of customer satisfaction
HISTORY OF QUALITY MANAGEMENT

 Quality has been an important aspect of production operations throughout history.

 Example: Egyptian wall paintings circa 1450 BC show evidence of measurement and
inspection
 The Egyptians. Success was due to god design, the consistent use of well-developed
building methods and procedures and precise measuring devices.
 In China, during the Zhou Dynasty the government issued policies and procedures to
control production across China like: production of utensils, carts, cottons, and silks and
prohibited the sale of non-conforming, inferior and sub-standards are not allowed to be
sold in the market otherwise it will not be sold in the market.
 When product is found non-conforming, the responsible worker was identified and the root
causes for the failure evaluated
Age of Craftmanship

 Middle Ages in Europe, skilled craftsperson served both manufacturer and inspector
 Manufacturers – directly deals with the customer
 Quality Assurance was informal
 Honore’ Blanc developed a system for manufacturing muskets to standard pattern using
interchangeable parts
 Thomas Jefferson brought the idea to America in 1798
 The value of concept of interchangeable parts was recognized, making quality assurance a
critical component of the production process during he Industrial Revolution
The early Twentieth Century

 Frederick W. Taylor – (1900) father of scientific management led the new philosophy of
production
 His innovation was to separate the planning function from the execution function
 Managers and engineers were given the task of planning supervisors and workers took on
the task of execution
 Workers lacked education needed for planning
 Quality assurance fell into the hands of the inspectors
 Inspection was the primary means of quality control during the first half of the 20th
century
Early pioneers of quality

 Walter Shewart
 Harold Dodge
 George Edwards
 Joseph Duran
 W. Edwards Deming
 They coined the term quality assurance which refers to any planned and systematic activity
directed towards providing consumers with products (goods and services) of appropriate
quality, along with confidence that products meet consumers’ requirements and developed
many useful techniques for measuring, controlling, and improving quality.
 Thus, it became a technical discipline
Statistical Quality Control (SQC)

 The application of statistical methods for controlling quality.

 Shewart was credited with developing charts which became popular means of identifying
quality problems in production processes and ensuring consistency of output
 The statistical quality control became widely known and adopted by many throughout
manufacturing industries
 Industrial Quality Control was published in 1944
 American Society for Quality Control (now American Society for Quality) were founded
soon after to developed, promoted, and apply quality concepts
Post- World War 11

 After the war (1940 -1950s) production In the US was a top priority
 Quality remained the province od the specialist
 Quality was not the priority of top managers but delegated this responsibility to quality
managers
 Top management showed little interest in quality improvement or the prevention of defects
and errors but relied on mass inspection
 Dr. Joseph Duran and Dr. W. Edwards Deming introduced statistical quality control
techniques to the Japanese
 To aid them in their rebuilding efforts
 Their focus was on upper management rather quality specialist alone
US Quality Revolution

 1980s – period of remarkable change and growing awareness of quality by consumers,

industry, and government
 1950s and 1960s –Japan was associated with inferior products
 1970s – increased global competition and the availability of higher quality foreign
products
 US consumers demanded high quality and reliability in goods and services at a fair price
Early Successes

 Business and industry began to focus on quality

 Government recognized how quality is to the nation’s economic health
 Examples:
 National Quality Month in October
 Excellent Ward for Quality and Productivity in 1985
 Baldrige Award in 1987 (statement of national intent to provide quality leadership was
established by an act of Congress
 The most influential instrument for creating quality awareness among US business
Product Quality to Total Quality Management

The true enables of quality, customers satisfaction and business results:

 Listening to customers
 Develop long term relationship
 Develop strategy
 Measure performance analyze data, reward and train employees
 Design and deliver products and services
 And act as leaders in their organizations
 Quality Management is a s important as Management of Quality
 Quality Assurance give way to Quality Management
 Big Q to contrast the difference between managing for quality in all organizational
processes as opposed to focusing solely on manufacturing quality (little q)
Total Quality

 Is the unyielding and continually improving effort by everyone in an organization to

understand, meet and exceed the expectations of customers
 A.V. Feigenbaum recognized the importance of comprehensive organizational approach to
quality in 1950s and coined the term total quality control
 Japanese adopted Feigenbaum concept and renamed it COMPANY WIDE QUALITY
CONTROL
Management Failures

 TQM meet harsh criticism

 TQM were rooted in flawed organizational approaches and management systems because
of poor quality strategies or good strategies that were poorly executed, and not because of
underlying principles of quality management
Performance Excellence

 Is an integrated approach to organizational performance management results in:

1. Delivery of ever-improving value to customers and stakeholders, contributing to
organizational sustainability
2. Improvement of overall organizational effectiveness and capabilities, and
3. Organizational and personal learning
Emergence of Six Sigma

 A new approach to quality improvement is called the Six Sigma

 Six sigma – is a customer focused, results-oriented approach to business improvement that
integrates many traditional quality improvement tools and techniques that have been tested
and validated over the years, with a bottomline and strategic orientation that appeals to
senior managers, thus gaining their support.
 This was adapted by the Toyota Production system to address quality problems, cost
reduction and efficiency
Current and future Challenges

 To ensure that managers continue to focus on quality management and performance

excellence in their organization.
 Example: Texas Instrument – quality will have to be everywhere, integrated into all aspects
of winning organization
 Global marketplace and domestic and international competition have made the
organizations around the world realize that their survival depends on high quality
 Example: Korea and India increased the quality of awareness by sponsoring conferences
and seminars, radio shows, school essay contest, pamphlet distribution
American Society for Quality Eight Key forces
that influence future quality
 Global Responsibility
 Consumer Awareness
 Globalization
 Increasing Rate of Changes
 Workforce of the Future
 Aging Population
 Twenty First Century Quality
 Innovation
QUALITY IN MANUFACTURING

 Quality management is rooted in manufacturing

 Marketing and Sales
 Involve advertising and selling
 Marketing and sales employees have important responsibilities for quality like learning the
products and the features, knowing the prices and their willingness to buy.
 Read Ames Product Corporation
 Product Design and Engineering
 Under engineered fails because they did not meet customers need
 Over engineered not find a profitable market
 Poorly designed manufacturing processes result in poor quality and higher costs.
Purchasing and Receiving

 Purchasing department can achieve quality by:

a. Selecting quality-conscious suppliers
b. Ensuring that purchase orders define the quality requirements specified by product design and
engineering
c. Bringing together technical staffs from both the buyer’s and suppliers companies to designed
products and solve technical problems
d. Establish long term relationship with suppliers based on trust
e. Providing quality improvement training to suppliers
f. Informing suppliers of any problems encountered with their goods
g. Maintaining good communication suppliers as quality requirements and design changes occur
 The receiving department is the link between purchasing and production
 The delivered items are of quality specified in the contract
 It must undergo various inspection and testing policies
 If product is of high quality, extensive inspection and testing is not necessary
 The suppliers must provide proof that their processes are declared the specified quality
Production Planning ad Scheduling

 Production plan specifies long term and short term production requirements for customers
orders and meting anticipated demand.
 Correct materials, tools and equipment must be available at the proper time and proper
places in order to maintain the smooth flow of production
Manufacturing and Assembly

 The role of manufacturing and assembly is producing quality is to ensure that the product
is made correctly.
 Manufacturing cannot do its job without a good product design and good process
technology
 No defects should be acceptable
 If there are, identify the cause and eliminate them
Tool engineering

 Its function is responsible for designing and maintaining the tools used in manufacturing
and inspection
 Example : worn manufacturing tools results in defective parts
 That leads to poor quality and inefficiency
Industrial Engineering and process design

 The job of industrial engineers and process designers is to work with product design
engineers to develop a realistic specification
 Sect appropriate technologies, equipment and work methods for producing quality
products
 Example: Nissan Motor Manufacturing has a fully automated paint system in which robots
are programmed to move along with cars.
 Work on designing facilities and arranging equipment to achieve a smooth production flow
and to reduce opportunities for product damage.
Finished goods and Inspection and Testing

 If quality is built into the product property, inspection should be unnecessary except for
auditing purposes and functional testing
 Example: Electronic components are subjected to extensive “BURN-IN test that ensure
proper operation and eliminate short life items.
 Inspection should be used to improved quality and not simply to remove defective items
Packaging, Shipping and Warehousing

 These are logistics activities that protects quality after goods are produced
 There must be a correct label, coded and expiration date can be visible and traced for
customers
Installation and Service

 Products must be used correctly in order to benefit the customer

 Product must have an adequate instruction for proper installation and operation
 Example: associates are expected to arrive for all appointments on time and to return
customer phone calls within the prescribed time period
 Responsible for knowing and observing their respected customers rules and regulation
especially safety procedures.S
Quality in Service Organizations

 Service organization include all nonmanufacturing organizations like hotels, restaurants,

financial and legal services, and transportation EXCEPT industries like agriculture, mining
and construction
 The importance of quality in services cannot be overestimated
 Companies can boost their profits by almost 100% by retaining a just 15% more of their
customers than their competitors retain
 Service is also a key element for many traditional manufacturing companies
 Example: When one buys an automobile, you are also buying the manufacturer and dealer
services
Manufacturing

 Manufacturing is different from production of services:

1. Customer needs and performance standards are often difficult to identify and measure,
primarily because the customers define what they are, and each customer is different
2. Production of services requires a high degree of customization than does manufacturing
3. The output of many services system is tangible, whereas manufacturing produces tangible,
visible products
4. The services are produced and consumed simultaneously, whereas manufactured goods are
produced prior to consumption.
5. Customers often involved in the service process and are present while it is being performed,
whereas manufacturing is performed away from the customers
6. Services are generally extensive, whereas manufacturing is more capital intensive
7. Many service organizations must handle large numbers of customer transactions
Components of Service Quality

 The system begins with commitment to the customer.

 Example: airlines, banks and hotels
 Innovative approaches to improve customer satisfaction, ranging from easy to use website
design to fast order fulfillment (Amazon.com)
 The 2 most important drivers of service quality are people and technology
 Example: Call centers, Fedex
 Digitally Assisted Dispatch System (DADS) communicates to all couriers through screen
in ther vans, enabling quick responses to pick up and delivery dispatches
 It allows couriers to manage their time and routes with high efficiency
Quality in Business Support Functions

1. Finance and Accounting – responsible for obtaining funds, controlling their use, analyzing
investment opportunities, and ensuring that the firm operates cost effectively and deal
profitably
2. Legal Services – complies with laws and regulations regarding such things as product
labeling, packaging, safety and transportation; designs and words its warranties properly;
satisfies its contractual requirements; has proper procedures and documentation in place in
the event of liability claim against him
3. Liability suits ha made legal services an important aspect of quality assurance

4. Quality Assurance – Quality assurance department shall assist the managers for statistical
test and data analyses. Its role is to provide guidance and support to everyone in the
organization in order to achieve this goal
Quality and Competitive Advantage

 Competitive advantage – denotes a firm’s ability to achieve market superiority

 High quality is itself an important source of competitive advantage
 Demonstrated in 1980s like PIMS Associates, Inc a subsidiary of Strategic Planning
Institute
1. Product quality is an important determinant of business profitability
2. Business that offer premium quality products and services usually have large market share
and were early entrants into their market
3. Quality is positively and significantly related to a higher return of investment for almost all
kinds of products and market situations
4. Instituting a strategy of quality improvement usually leads to increase in market share, but
at the cost of reduced short run profitability

5. High quality producers can usually charge premium prices

Quality and Personal Values

 Quality begins with individual attitudes and behavior

 Quality is a personal obligation (Robert Galvin, CEO of Motorola)
 Personal quality is an essential ingredient to make quality happen in the workplace , but
most often neglected.
 The quality must begin at a personal level (that means you) in all activities of daily life