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Introduction to Quality

Prof. Rushen Chahal

Prof. Rushen Chahal

Modern Importance of Quality


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

Prof. Rushen Chahal

Quality Assurance
...is any action directed toward providing customers with goods and services of appropriate quality.

Prof. Rushen Chahal

History of Quality Assurance (1 of 2)


Skilled craftsmanship during Middle Ages Industrial Revolution: rise of inspection and separate quality departments Statistical methods at Bell System Quality control during World War II Quality management in Japan

Prof. Rushen Chahal

History of Quality Assurance (2 of 2)


Quality awareness in U.S. manufacturing industry during 1980s: Total Quality Management Malcolm Baldrige National Quality Award (1987) Quality in service industries, government, health care, and education Current and future challenge: keep progress in quality management alive
Prof. Rushen Chahal

Contemporary Influences on Quality


Parterning Learning systems Adaptability and speed of change Environmental sustainability Globalization Knowledge focus Customization and differentiation Shifting demographics
Prof. Rushen Chahal

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
Prof. Rushen Chahal

Quality Perspectives
transcendent & productproduct-based
Customer

useruser-based
needs Marketing

products and services

valuevalue-based

Design

manufacturingmanufacturingbased Manufacturing
Distribution
Information flow Product flow
Prof. Rushen Chahal

Customer-Driven Quality
Meeting or exceeding customer expectations Customers can be...
Consumers External customers Internal customers
Prof. Rushen Chahal

Total Quality
People-focused management system Focus on increasing customer satisfaction and reducing costs A systems approach that integrates organizational functions and the entire supply chain Stresses learning and adaptation to change Based on the scientific method
Prof. Rushen Chahal

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Principles of Total Quality


Customer and stakeholder focus Participation and teamwork Process focus and continuous improvement

...supported by an integrated organizational infrastructure, a set of management practices, and a set of tools and techniques
Prof. Rushen Chahal

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Customer and Stakeholder Focus


Customer is principal judge of quality Organizations must first understand customers needs and expectations in order to meet and exceed them Organizations must build relationships with customers Customers include employees and society at large
Prof. Rushen Chahal

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Participation and Teamwork


Employees know their jobs best and therefore, how to improve them Management must develop the systems and procedures that foster participation and teamwork Empowerment better serves customers, and creates trust and motivation Teamwork and partnerships must exist both horizontally and vertically
Prof. Rushen Chahal

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Process Focus and Continuous Improvement

A process is a sequence of activities that is intended to achieve some result

Prof. Rushen Chahal

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Continuous Improvement
Enhancing value through new products and services Reducing errors, defects, waste, and costs Increasing productivity and effectiveness Improving responsiveness and cycle time performance

Prof. Rushen Chahal

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Demings View of a Production System


Suppliers of materials and equipment Receipt and test of materials A B C D Production, assembly inspection Tests of processes, machines, methods Design and Redesign Consumer research Consumers Distribution

INPUTS

PROCESSES
Prof. Rushen Chahal

OUTPUTS
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Learning
The foundation for improvement Understanding why changes are successful through feedback between practices and results, which leads to new goals and approaches Learning cycle:
Planning Execution of plans Assessment of progress Revision of plans based on assessment findings 17 Prof. Rushen Chahal

Infrastructure, Practices, and Tools


Infrastructure
Leadership Strategic Planning HRM Process mgt. Data and information management

Practices

Performance appraisal

Training

Tools

Trend chart

Prof. Rushen Chahal

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TQ Infrastructure

Customer relationship management Leadership and strategic planning Human resources management Process management Data and information management

Prof. Rushen Chahal

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Competitive Advantage
Is driven by customer wants and needs Makes significant contribution to business success Matches organizations unique resources with opportunities Is durable and lasting Provides basis for further improvement Provides direction and motivation Quality supports each of these characteristics
Prof. Rushen Chahal

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Quality and Profitability


Improved quality of design Higher perceived value Increased market share Higher prices Increased revenues Higher profitability
Prof. Rushen Chahal

Improved quality of conformance Lower manufacturing and service costs

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Evidence that Quality Impacts Business Results


General Accounting Office study of Baldrige Award applicants Baldrige stock study (see www.quality.nist.gov) Hendricks and Singhal study of quality award winners Performance results of Baldrige Award winners
Prof. Rushen Chahal

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GAO TQ Model
Product and service quality On-time delivery Error/defects Leadership for continuous improvement Quality systems and employee involvement Reliability Customer satisfaction Customer retention Complaints Market share Profits Costs Cycle time Turnover Satisfaction Safety & health Productivity
Prof. Rushen Chahal

Overall satisfaction

Competitiveness

Organization benefits

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Three Levels of Quality


Organizational level: meeting external customer requirements Process level: linking external and internal customer requirements Performer/job level: meeting internal customer requirements

Prof. Rushen Chahal

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Quality and Personal Values


Personal initiative has a positive impact on business success Quality begins with personal attitudes Quality-focused individuals often exceed customer expectations Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
Prof. Rushen Chahal

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