Quality Management

PRESENTER

DR. MOHAMMED ALAMGIR

Professor
Department of Marketing
University of Chittagong
E-mail: alamgir92@gmail.com
Quality cannot be inspected into a
product-quality has to be built into
each process.

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 Textbook :

Managing for Quality and Performance Excellence,

9th Edition

James R. Evans, William M. Lindsay

Chapter 1 : Introduction to Quality

Chapter 2 : Philosophies and Frameworks of quality
Chapter 3 : Customer Focus in quality
Chapter 4 : Employee involvement and Empowerment
Chapter 5 : Leadership and teamwork
Chapter 6 : Statistical Process Control
Chapter 7 : Quality improvement Tools and Devices
Chapter 8 : Process Management:
Chapter 9 : Quality Management System
Chapter 10 : Partnering for Competitiveness
Chapter 11 : Continuous improvement
 Chapter 1

Introduction to Quality

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 The Business Imperative

 “The first job we have is to turn out quality merchandise

that consumers will buy and keep on buying. If we
produce it efficiently and economically, we will earn a
profit, in which you will share.”

- William Cooper Procter

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What is quality?

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THE CONCEPT OF QUALITY
People define quality in many ways-
 some think of quality as superiority or excellence,
 others view it as a lack of manufacturing or service defects,
 still others think of quality as related to product features or price.

A study that asked managers of 86 firms in the eastern United States to

define quality produced several dozen different responses, including--

1. perfection

2. consistency

3. eliminating waste

4. speed of delivery

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THE CONCEPT OF QUALITY

5. compliance with policies and procedures

6. providing a good, usable product

7. doing it right the first time

8. delighting or pleasing customers

9. total customer service and satisfaction

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 Perfection Fast delivery
Providing a good, usable product
Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers

Total customer service and satisfaction

Compliance with policies and procedures
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 At Deer Valley, Quality Is Not a Snow Job
 Deer Valley Resort in Park City, Utah, is viewed by many as The Ritz-Carlton of
ski resorts, providing exceptional services and a superior ski vacation experience.
The resort offers curbside ski valet service to take equipment from vehicles,
parking lot attendants to ensure efficient parking, and a shuttle to transport guests
from the lot to Snow Park Lodge. Guests walk to the slopes on heated pavers that
prevent the pavement from freezing and assist in snow removal. The central
gathering area by the base lifts is wide and level, allowing plenty of room to put
on equipment and easy access to the lifts. At the end of the day, guests can store
their skis without charge at each lodge. The resort limits the number of skiers on
the mountain to reduce lines and congestion, and offers complimentary mountain
tours for both expert and intermediate skiers. Everyone is committed to ensuring
that each guest has a wonderful experience, from “mountain hosts” stationed at
the top of the lifts to answer questions and provide directions, to the friendly
workers at the cafeterias and restaurants, whose food is consistently rated number
one by ski enthusiast magazines. “Our goal is to make each guest feel like a
winner,” says Bob Wheaton, vice president and general manager. “We go the
extra mile on the mountain, in our ski school, and throughout our food-service
operation because we want our guests to know they come first.”
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 Definitions of Quality
 Transcendent definition: excellence
 Product-based definition: quantities of product attributes
 User-based definition: fitness for intended use
 Value-based definition: quality vs. price
 Manufacturing-based definition: conformance to
specifications/ Conformance to requirements- Crosby (1979)

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 Definitions of Quality
 The totality of features and characteristics that bear on the ability
of a product or service to satisfy a given need
 British Standard Institution, 1991

 Quality is a dynamic state associated with products, services,

people, processes, and environments that meets or exceeds
expectations and helps to produce superior value– Goetsch and
Davis (2010)

 The American National Standards Institute (ANSI) and the

American Society for Quality (ASQ) define quality as “the
totality of features and characteristics of a product or service that
bears on its ability to satisfy given needs.”

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The Quality Gurus – Edward Deming

Quality is
“uniformity and
dependability”
Focus on SPC
and statistical
tools
“14 Points” for
1900-1993
management

1986
PDCA method
The Quality Gurus – Joseph Juran

Quality is “fitness
for use”
Pareto Principle
Cost of Quality
General
management
approach as well
1904 - 2008
as statistics
1951
Quality Perspectives

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 Key Product Quality Dimensions

 Performance – primary operating characteristics

 Features – “bells and whistles”- attractive
 Reliability – probability of operating for specific time and conditions
of use
 Conformance – degree to which characteristics match standards
 Durability- amount of use before deterioration or replacement
 Serviceability – speed, courtesy, and competence of repair
 Aesthetics – look, feel, sound, taste, smell

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 Critical Differences Between
Service and Manufacturing (1 of 2)
Customer needs and performance
standards are more difficult to
identify and measure
Services requires a higher degree of
customization
Output is intangible

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 Critical Differences Between
Service and Manufacturing (2 of 2)
Services are produced and consumed
simultaneously
Customers are often involved in actual
process
Services are more labor-intensive than
manufacturing
Services handle large numbers of transactions

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Example of Quality Dimensions

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 Quality in Services

• Service is defined as “any primary or

complementary activity that does not
directly produce a physical product –
that is, the non-goods part of the
transaction between buyer (customer)
and seller (provider).”

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Components of Service Quality
• People
– “If we take care of our people,
they will take care of our
customers.”
• Technology
– Computers and information
technology
– E-commerce

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 Moments of Truth
• Each customer contact is called a
moment of truth.

• You have the ability to either satisfy

or dissatisfy them when you contact
them.
Dimensions of Service Quality
• Reliability: Perform promised service
dependably and accurately.
– Example: receive mail at same time each day.

• Responsiveness: Willingness to help

customers promptly.
– Example: avoid keeping customers waiting for no
apparent reason.
Dimensions of Service Quality
• Assurance: Ability to convey trust and
confidence.
– Example: being polite and showing respect for
customer.
• Empathy: Ability to be approachable.
– Example: being a good listener.
• Tangibles: Physical facilities and
facilitating goods.
– Example: cleanliness.
 Not All Dimensions Are Equal

• Service providers need to know majors and minors

• They can’t focus on only one dimension and let the
others suffer
• SERVQUAL research showed dimensions’
importance to each other by asking customers to
assign 100 points across all five dimensions.
The 5 Service Dimensions Customers Care
About
#1 Just Do It
– RELIABILITY: Do what you say you’re going to
do when you said you were going to do it.

#2 Do It Now
– RESPONSIVENESS: Respond quickly, promptly,
rapidly, immediately, instantly.

#3 Know What Your Doing

– ASSURANCE: Service providers are expected
to be the experts of the service they’re
delivering. It’s a given.
#4 Care about Customers as much as the
Service
– EMPATHY: Services can be performed
completely to specifications. Yet customers
may not feel provider employees care about
them during delivery. And this hurts
customers’ assessments of providers’ service
quality.

#5 Look Sharp
– TANGIBLES: Even though this is the least
important dimension, appearance matters. Just
not as much as the other dimensions.
 Importance of Quality
 Quality is uniquely positioned to accelerate
organizational growth through better execution and
alignment
 Quality provides the voice of the customer critical to
developing innovative products and services.
 Quality can provide an organization with a competitive
edge
 “No quality, no sales. No sales, no profit. No profit, no
jobs.”

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 Today most managers agree that the main reason to pursue
quality is to satisfy customers.

 In highly competitive markets, merely satisfying customer

needs will not achieve success. To beat the competition,
organizations often must exceed customer expectations.
Thus, one of the most popular definitions of quality is
meeting or exceeding customer expectations.

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 Quality in Finished Goods
Inspection and Testing
The purposes of final product
inspection are to judge the quality of
manufacturing, to discover and help to
resolve production problems that may
arise, and to ensure that no defective
items reach the customer.

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 Quality Management

“It costs a lot to produce a bad product.”

Norman Augustine
What is quality management all about?

Try to manage all aspects of the organization in order

to excel in all dimensions that are important to
“customers”

Two aspects of quality:

features: more features that meet customer needs =
higher quality
freedom from trouble: fewer defects = higher
quality
Principles central to the practice of
QM
 Customer focus
 Strategic focus
 Leadership focus
 Process focus
 People focus
 Scientific focus
 Continual improvement, innovation and learning
 Systems thinking

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 What is TQM?

Total Quality management is the integration of all

functions and processes within an organization in order
to achieve continuous improvement of the quality of
goods and services.
 Concept of TQM
 TQM is based on number of ideas.
 The watchword is continuous improvement.
 The goal is customer satisfaction.
 Any activity or processes that does not add value to the
customer is considered to be waste.
 The concept of TQM is satisfaction of customer at each and
every stage.
 Concept of TQM
 Common phrase for TQM “Doing the things right, first time”
 The two primary objectives of TQM is
1. Zero defects
2. 100% customer satisfaction

 Cost of rectifying VS. Cost of Avoiding.

Principles/ elements of TQM

1. Customer-focused
2. Total employee involvement
3. Process-centered
4. Integrated system
5. Strategic and systematic approach
6. Continual improvement
7. Fact-based decision making
8. Communications
Comparisons between TQM and Traditional
Approach

(i) Importance of people

(ii) Importance of quality
(iii) Importance of customers
(iv) Role of management
(v) Team work
(vi) Organizational structure
(vii) Span of control:
(viii) Profits v/s quality
 Important elements of a total
quality infrastructure?

1. Customer Relationship Management

2. Leadership and Strategic Planning
3. HRM
4. Process Management
5. Data/Info. Management

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Manufacturing Systems

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• Quality in Marketing
• Marketing and sales personnel are responsible for determining
the needs and expectations of consumers.
• Quality in Product Design
• Product design and engineering functions develop technical
specifications for products and production processes to meet
the requirements determined by the marketing function.

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• Quality in Purchasing
• A purchasing agent should not simply be responsible for low-
cost procurement, but should maintain a clear focus on the
quality of purchased goods and materials.
• Quality in Production Planning & Scheduling
• Poor quality often results from time pressures caused by
insufficient planning and scheduling.

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Quality in Manufacturing and Assembly
• Both technology and people are essential to high-quality manufacturing.
Quality in Process Design
• Manufacturing processes must be capable of producing output that meets
specifications consistently.
Quality in Finished Goods Inspection and Testing
• The purposes of final product inspection are to judge the quality
of manufacturing, to discover and help to resolve production
problems that may arise, and to ensure that no defective items
reach the customer.

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Manufacturing processes must be capable of
producing output that meets specifications
consistently.

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 Competitive Advantage
• It is driven by customer wants and needs
• It makes significant contribution to business
success
• It matches organization’s unique resources with
opportunities
• It is durable and lasting
• It provides basis for further improvement
• It provides direction and motivation to the
entire organization

Quality supports each of these characteristics

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How does quality support the achievement
of competitive advantage?

1. Product Quality: Business profitability correlation

2. Premium Quality Product/Service:
Correlation to large market share and early entry
3. Quality: Higher return on investment
4. Strategy of Quality Improvement: leads to increased market
share
5. Higher Quality: Premium prices

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Quality in Installation and
Service
Service after the sale is one of the
most important factors in
establishing customer perception
of quality and customer loyalty.

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History: how did we get here…
• Deming and Juran outlined the principles of Quality
Management.
• Tai-ichi Ohno applies them in Toyota Motors Corp.
• Japan has its National Quality Award (1951).
• U.S. and European firms begin to implement Quality
Management programs (1980’s).
• U.S. establishes the Malcolm Baldridge National Quality
Award (1987).
• Today, quality is an imperative for any business.
 Managing for Quality ( Juran)

 A set of universal methods that any organization, whether a

business, an agency, a university or a hospital can use to
attain-
 superior results by designing, continuously improving and
ensuring that all products, services and processes meet
customer and stakeholder needs.

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 Juran’s trilogy
Designing and planning for Quality
Compliance, controlling and assuring quality
Improving quality

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 Juran’s trilogy
 Creating processes to design goods and services to meet
needs of the stakeholders (internal and external). Understand
needs of customers
 Creating processes to control quality. Ensure compliance to
design criteria
 Creating a systematic approach to improve continuously.
Failures must be discovered and remedied.
 => Create functions and skills to do the things above

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Any Questions…