QUALITY

TOPIC 9

Lecturer:
Abang Sulaiman AS
Course Code:
MGT400
 Lesson Outcomes
• Definition of quality and its importance
• Describe the major contributions of the most
prominent contemporary quality philosophers
• Definition of TQM
• Identify areas of concentration and commitment
for TQM

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 Perspectives on Quality
• Consumer Perspective
– Quality can be defined as the degree to which
the product or service meets the expectations
of the customer.
• Producer Perspective
– Quality can be defined as the degree to which
the product or service conforms to design
specifications.

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 Some definitions
ISO 9000: "Degree to which a set of inherent
characteristic fulfills requirements."[2] The
standard defines requirement as need or
expectation.
Peter Drucker: "Quality in a product or service is
not what the supplier puts in. It is what the
customer gets out and is willing to pay for."

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 What is Quality
• The American Society for
Quality Control:-
 Quality as the “totality
of features and
characteristics of a
product or service that
bear on its ability to
satisfy stated or
implied needs & a
product or service free
of deficiencies ”
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Objectives of Quality Control
• Ensure products/services conform to
standard or specifications
• Minimise product cost due to poor quality
• Ensure continue demand for
product/service
• Protect against product liability lawsuits
• Assure management & consumers that
product meets standard
• Doing things right the first time
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Factors for Assessing Quality
• Product Factors
– Aesthetics, features,
performance, reliability,
serviceability, durability,
conformance, and
perceived quality.
• Service Factors
– Responsiveness, reliability,
assurance, empathy, and
tangibles.

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 The Dimension of Quality
Dimensions Definition Customers’
expectations
Reliability Ability to perform the Is my credit card bill
promised service free of error?
dependably &
accurately
Aesthetics Appearance of Are the hotel’s
physical facilities, facilities attractive?
equipment, personnel
and communication
materials
Responsiveness Willingness to help Will the customer
customers & provide service get back to me
prompt service & solve my problem?

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 The Dimension of Quality
Dimensions Definition Customers’
expectations
Performance Ability to perform and TV’s picture clarity
function as the
promised specification
Feature Supplement to Powered window,
product’s basic sport ream
function
Security Freedom from danger Is the can food free
from poison?

Durability A measure of product Can product stand in

life hot weather?

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 Manufacturing vs. Service Operating
Systems
Distinctive characteristics of manufacturing vs.
service
Manufacturing Service
Output is a physical product Output often lacks physical
qualities
Can stockpile inventories of
finished products Cannot stockpile inventories
of finished products
Production and consumption
is not simultaneous Production and consumption
usually is simultaneous
Quality is relatively easy to
access Quality is more difficult to
access

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 Cost of Quality
• Prevention Costs
• Appraisal Costs
• Internal-Failure Costs
• External-Failure Costs

Text pg. 393

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 Prominent Quality Management
Philosophers

• W. Edwards Deming
– Devised a 14-point plan to summarize
his philosophy on quality improvement.
– Develop statistical quality control
– Develop chain reaction:-
 Improve Q, cost decreases, productivity
increases, more jobs created, greater
market share & longterm survival

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 Table 16.4: Deming’s 14 Points
1. Create constancy of purpose for improvement of product and service, and communicate
this aim to all employees.
2. Learn and adopt the new philosophy throughout all levels within the organization.
3. Understand that inspection only measures problems but does not correct them; quality
comes from improving processes.
4. Reduce the number of suppliers, and do not award business on the basis of price tag
alone.
5. Constantly improve processes, products, and services while reducing waste.
6. Institute modern aids to training on the job.
7. Improve supervision.
8. Drive out fear of expressing ideas and reporting problems.
9. Break down barriers between departments and get people working toward the goals of
the organization as a team.
10. Eliminate slogans, exhortations, and targets for the workforce.
11. Eliminate numerical quotas for production; concentrate on quality, not quantity.
12. Remove barriers that rob people of pride of workmanship.
13. Institute a program of education and self-improvement for everyone.
14. Put everyone in the organization to work to accomplish the transformation.
Source: W. Edwards Deming, Out of the Crisis (Cambridge, MA: MIT, Center for Advanced Engineering Study, 1986).
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 Prominent Quality Management
Philosophers
• Joseph Juran
– Observed that over 80 percent of quality
defects are caused by factors controllable by
management.
– Focused on top down management &
technical method
– Developed a trilogy of planning, control, and
implementation.

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Prominent Quality Management
Philosophers

• Philip Crosby
– Introduced the philosophy that “quality is
free.”
• Kaoru Ishikawa
– Introduced quality control circles
• a work team that meets regularly to identify,
analyze, and solve problems related to its
work area.

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 Dr. Edward W. Deming
(management philosophy and systems)
TQM
Gurus'
Dr. Joseph M. Juran
Ideas (quality trilogy)

Dr. Philip Crosby

(zero defects and cost of quality)

Dr. Kaoru Ishikawa

(simple tools, QCC, company-wide quality)

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 What is Total Quality
Management (TQM)
• A systematic approach for
enhancing products,
services, processes, and
operational quality control
• A commitment to
excellence by everyone in
the organization
– Total
– Quality
– Management
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 STRATEGIC COMMITMENT

Employee Technology Materials Methods

Participation (Machines)

QUALITY IMPROVEMENTS

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 Employee Participation
• Empowerment
– Let employees make
decision at all levels
without asking for approval
from managers.
– Reason: staff are in the
best position to learn what
is the best way to
implement their task

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 The Tools of TQM
• Fishbone Diagram –
 cause-and effect diagram
• Benchmarking
 The process of comparing
one’s own products, services,
or processes against those of
industry leaders for the
purpose of improvement.

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FISHBONE DIAGRAM

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 Emphasis on Quality
• The emphasis on quality
is crucial for two reasons:
– Customers are becoming
increasingly conscious of
quality in their choice of
products and services.
– Increased quality leads to
increased productivity and
its associated benefits.

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 Importance of Q
Competition
To be better than competitors
Productivity
Increase output; reduce cost?
Decrease defects?
Employee’s responsibility
Costs
Warranty
lawsuit
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 Problem In Implementation of
TQM
Lack of commitment or
bad leadership support
No goals or target, i.e.
always change
Lack of communication
top-lower
No focus on customers
satisfaction or change of
needs
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 Problem In Implementation of
TQM (cont’d)
Employees’
requirement are not
looked into, i.e.
empowerment,
motivation and
materials
Misinterpretation
quality and inspection
requirement

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