Total Quality Management



Chapter 1
Introduction to Quality


           Chapter1        1
Introduction to Quality
What is Quality?
•Traditional thinking would say that Quality is conference to
specifications,that is does the product do what it designed to
do?
•One is Quality Assurance which is the "prevention of
defects", such as the deployment of a Quality Management
System and preventative activities like FMEA.
•The other is Quality Control which is the "detection of
defects", most commonly associated with testing which takes
place within a Quality Management System typically
referred to as Verification and Validation.
                                                       Cont
                            Chapter1                         2
Introduction to Quality
•  "Conformance to requirements". The difficulty
  with this is that the requirements may not fully
  represent what the customer wants; Crosby treats
  this as a separate problem.
• "Fitness for use". Fitness is defined by the
  customer.
• A two-dimensional model of quality. The quality
  has two dimensions: "must-be quality" and
  "attractive quality". The former is near to the
  "fitness for use"
                      Chapter1                   3
Evolution of Quality
   Management




        Chapter1       4
Evolution of Quality
   Management




        Chapter1       5
Evolution of Quality
   Management




        Chapter1       6
Evolution of Quality
   Management




        Chapter1       7
Quality Movement in India

Quality movement was consolidated in Indian
industries in the 1980s by pioneering efforts of
Confederation of Indian Industries.
•Walter Shewhart ,father of statistical control
visited India in 1947-48 & initiated SQC
movements through visiting many factories.
•The year 1987 brought the ISO900 standards into
reality
•Visible strategies emerged from the Europian
market
                      Chapter1                     8
Quality-What it stands for?


Q: Quest for Excellence
U: Understanding Customer needs
A: Action to achieve customers appreciation
L: Leadership Determination to be leader.
I: Involving all people
T: Team spirit to work for common goal
Y : Yard stick measure progress


              Quality means
            staying in business
                          Chapter1            9
Quality Definitions
       Garvin’s Definitions of Quality

Manufacturing Based Definition
•If the product conforms to design specifications,
it has good quality.

Value-Based Definition
•If the product is perceived as providing good
value for the price, it has good quality.

                      Chapter1                       10
                                       Cont
Quality Definitions
Garvin’s Definitions of Quality
•Transcendent Definition
•Quality is something that is intuitively
understood but nearly impossible to
communicate such as beauty or love.
•Product-Based Definition
•Quality is found in the components and
attributes of a product.
•User-Based Definition
•If the customer is satisfied, the product has good
quality.                Chapter1                    11
Quality Definitions

Quality is defined as:

•The ability of product or services to meet
customer needs.
•The totality of features and characteristics of a
product or services that bears on its ability to
satisfy stated or implied needs.
•Meeting or exceeding Customer requirements
now and in future
                                        Cont.
                         Chapter1                    12
Quality Definitions

Other definitions of Quality are:
•Quality is a measure of how closely a goods or
service confirms to specified standards or
specifications
•Quality is meeting or exceeding customers
requirement.
•Quality can be described as doing right things,right
time ,first time & every time
•Quality is a means to an end

                       Chapter1                    13
Quality Definitions

Service Quality is determined by:
•Reliability
•Responsiveness
•Competence
•Access
•Communication
•Courtesy
•Security
•Understanding
•Tangibles
                      Chapter1      14
Quality Definitions

Old Quality is                 New Quality is

About Product                About Organization

 Technical                        Strategic
 For inspectors                For Every one
 Led by experts              Led by Management
 High grade                   Appropriate grade
 About control               About Improvement


                  Chapter1                        15
Five Views of Quality

•Transcendental View
•Product Based View
•User Based View
•Manufacturing Based view
•Value Based View



                Chapter1    16
Quality Dimensions


Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived Quality
                          Cont….
               Chapter1            17
Quality Dimensions

•Performance Refers to the efficiency with
which a product achieves its intended purpose.
•Features Attributes of a product that
supplement a product’s basic performance.
•Reliability The propensity for a product to
perform consistently over its useful design life.
•Conformance Numerical dimensions for a
product’s performance, such as capacity, speed,
size, durability, color, or the like.

                        Chapter1           Cont..   18
Quality Dimensions

•Durability The degree to which a product
tolerates stress or trauma without failing.
•Serviceability
•Ease of repair.
•Aesthetics
•Subjective sensory characteristics such as
taste, feel, sound, look, and smell.
•Perceived Quality
•Based on customer opinion. Customers imbue
products and services with their understanding
of their goodness.                       Cont
                      Chapter1                   19
Quality Dimensions

•Include the physical appearance of the service
facility, the equipment, the personnel, and the
communication material.
•Service Reliability
•Differs from product reliability in that it relates
to the ability of the service provider to perform
the promised service dependably and accurately.
•Responsiveness
•The willingness of the service provider to be
helpful and prompt in providing service.
                         Chapter1                      20
Types of Quality

•Indifferent Quality:That customer does not notice

•Expected Quality:Is the quality that customer
expects

•One dimensional Quality:is the quality the
customer expects but that does not necessarily
result in lots of order

•Exiting Quality is the quality that exceeds
customer requirements Chapter1                   21
Customer driven Quality


Quality is meeting or exceeding customer
expectations.
•Directing attention toward satisfying and
delivering value to the customer.
•Tools for Influencing Customer Perceptions of
Quality
•Price and advertising are the primary tools for
influencing customer perceptions of quality, but are
imperfect mechanisms.
                                              Cont..
                       Chapter1                    22
Customer driven Quality


•Focus on Service
•Another important contribution of the marketing
perspective has been the focus on service.
•Customer service surveys are important tools for
assessing the multiple dimensions of quality.
•In short Customer Driven Quality is meeting or
exceeding customer expectation.



                      Chapter1                      23
Quality in production Systems

Production is the process of converting the
resources available to an organization into products
Goods & services.Quality involved in following
areas:
•Nature of Engineering Perspective
•Engineers are interested in applying mathematical
problem solving skills and models to the problems
of business and industry.
•Two of the major emphases in engineering
•Product design
•Process design         Chapter1                   24
Quality in production Systems

•Product Design Engineering
•Involves all of those activities associated with
developing a product from concept development to
final design and implementation.
•Product design life cycle
•Key to quality as quality is assured at the design
stage.
•Concurrent engineering
•The simultaneous performance of product and
process design activities.
                       Chapter1                   25
Quality in production Systems

•Related Concepts
•Life Testing
•Is a facet of reliability engineering that concerns
itself with determining whether a product will fail
under controlled conditions during a specified life.
•Is applied so that a back up system can take over
for the failed primary system.
•Statistical Process Control
•Is concerned with monitoring process capability
and process stability.
                       Chapter1                        26
Three levels of Quality

1 Organizational Level
 At organizational level ,quality concerns center
ton meeting external customer requirements
2. At process level
Organizational units are classified as functions or
departments such as marketing design,product
3.Performance level(Job level)
  These standards include requirements for
accuracy,completeness

                       Chapter1                       27
Determinants of Quality


Several activities are necessary to achieve
Quality they are:

• Quality of Design
• Quality capability of production processes
• Quality of conformance
• Quality of customer service
•Organization Quality culture

                       Chapter1                28
Quality & competitive advantage

One of the critical drivers of business success is
having a unique competitive advantage.

•Most managers understand that to attract a larger
share of the market, or find enough customers
prepared to pay a premium price, they must provide
something of greater value than their competition.
•For most managers, competitive advantage boils
down to providing superior quality and service.
Think about it. Is this what you are aiming for?
                        Chapter1                     29
Quality & competitive advantage


Competitive advantage denotes a firms ability to
achieve market superiority
Characteristics of a strong competitive advantage
identified by S.C Whelwright are:
•It is customer driven needs & wants
•It makes significant value to success of business
•It matches the organization's unique resources with
opportunities in the environment
•It is durable and lasting & difficult for competitors
to copy                                        Cont..
                        Chapter1                     30
Quality & competitive advantage

•It provides a basis for further development
•It provides directions and motivation to the entire
organization

Customers don’t believe vague claims and they
don’t believe you, unless you can back up your
statement with irrefutable facts. The same goes for
service. What does better service mean? Is it faster,
more personal, more user friendly? How can you
support your claims?
                       Chapter1                        31
Quality & Profitability

Good Quality can also pay off in higher profits
Several research studies undertaken by PIMS have
found that:
•Product Quality is important determinant of
business profitability
•Business that offer premium quality & services
have large market shares
•Quality is positively and significantly related to a
high return
•High Quality producers can usually change
premium price           Chapter1                      32
Quality as a source of value

Many customers regard Quality as a Important
source of value
•Improved reputation
•Easier selling
•Legal Implications
•Reduced lead time
•Enhanced Flexibility
•Improved Productivity
•Reduced Cost
•Employer pride
                    Chapter1                   33
Quality and personal values

•Today companies are asking employees to take
more responsibility for acting as the point of
contact between the organization and the
customer,to be team players & to provide more
effective & efficient customer service.
•Personal Quality may be thought of as personal
empowerment.
•Personal Quality is an essential ingredient to make
quality happens at work place

                       Chapter1                    34
Quality Drives the productive Machine

Japanese manufactures are credited with populating
the notion that quality drives the productivity
machine
•This means If the production does it right first time
,& produces product and services which are defect
free,Waste is eliminated & costs are reduced.
•Productivity & Quality are often closely related
•Poor quality can adversely affected if defective
parts are reworked.
•Poor quality tolls & equipment can lead to injuries
&defective output       Chapter1                     35
Total Quality Management



 End Of

 Chapter 1


             Chapter1      36
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Introduction to Quality

  • 1. Total Quality Management Chapter 1 Introduction to Quality Chapter1 1
  • 2. Introduction to Quality What is Quality? •Traditional thinking would say that Quality is conference to specifications,that is does the product do what it designed to do? •One is Quality Assurance which is the "prevention of defects", such as the deployment of a Quality Management System and preventative activities like FMEA. •The other is Quality Control which is the "detection of defects", most commonly associated with testing which takes place within a Quality Management System typically referred to as Verification and Validation. Cont Chapter1 2
  • 3. Introduction to Quality • "Conformance to requirements". The difficulty with this is that the requirements may not fully represent what the customer wants; Crosby treats this as a separate problem. • "Fitness for use". Fitness is defined by the customer. • A two-dimensional model of quality. The quality has two dimensions: "must-be quality" and "attractive quality". The former is near to the "fitness for use" Chapter1 3
  • 4. Evolution of Quality Management Chapter1 4
  • 5. Evolution of Quality Management Chapter1 5
  • 6. Evolution of Quality Management Chapter1 6
  • 7. Evolution of Quality Management Chapter1 7
  • 8. Quality Movement in India Quality movement was consolidated in Indian industries in the 1980s by pioneering efforts of Confederation of Indian Industries. •Walter Shewhart ,father of statistical control visited India in 1947-48 & initiated SQC movements through visiting many factories. •The year 1987 brought the ISO900 standards into reality •Visible strategies emerged from the Europian market Chapter1 8
  • 9. Quality-What it stands for? Q: Quest for Excellence U: Understanding Customer needs A: Action to achieve customers appreciation L: Leadership Determination to be leader. I: Involving all people T: Team spirit to work for common goal Y : Yard stick measure progress Quality means staying in business Chapter1 9
  • 10. Quality Definitions Garvin’s Definitions of Quality Manufacturing Based Definition •If the product conforms to design specifications, it has good quality. Value-Based Definition •If the product is perceived as providing good value for the price, it has good quality. Chapter1 10 Cont
  • 11. Quality Definitions Garvin’s Definitions of Quality •Transcendent Definition •Quality is something that is intuitively understood but nearly impossible to communicate such as beauty or love. •Product-Based Definition •Quality is found in the components and attributes of a product. •User-Based Definition •If the customer is satisfied, the product has good quality. Chapter1 11
  • 12. Quality Definitions Quality is defined as: •The ability of product or services to meet customer needs. •The totality of features and characteristics of a product or services that bears on its ability to satisfy stated or implied needs. •Meeting or exceeding Customer requirements now and in future Cont. Chapter1 12
  • 13. Quality Definitions Other definitions of Quality are: •Quality is a measure of how closely a goods or service confirms to specified standards or specifications •Quality is meeting or exceeding customers requirement. •Quality can be described as doing right things,right time ,first time & every time •Quality is a means to an end Chapter1 13
  • 14. Quality Definitions Service Quality is determined by: •Reliability •Responsiveness •Competence •Access •Communication •Courtesy •Security •Understanding •Tangibles Chapter1 14
  • 15. Quality Definitions Old Quality is New Quality is About Product About Organization Technical Strategic For inspectors For Every one Led by experts Led by Management High grade Appropriate grade About control About Improvement Chapter1 15
  • 16. Five Views of Quality •Transcendental View •Product Based View •User Based View •Manufacturing Based view •Value Based View Chapter1 16
  • 18. Quality Dimensions •Performance Refers to the efficiency with which a product achieves its intended purpose. •Features Attributes of a product that supplement a product’s basic performance. •Reliability The propensity for a product to perform consistently over its useful design life. •Conformance Numerical dimensions for a product’s performance, such as capacity, speed, size, durability, color, or the like. Chapter1 Cont.. 18
  • 19. Quality Dimensions •Durability The degree to which a product tolerates stress or trauma without failing. •Serviceability •Ease of repair. •Aesthetics •Subjective sensory characteristics such as taste, feel, sound, look, and smell. •Perceived Quality •Based on customer opinion. Customers imbue products and services with their understanding of their goodness. Cont Chapter1 19
  • 20. Quality Dimensions •Include the physical appearance of the service facility, the equipment, the personnel, and the communication material. •Service Reliability •Differs from product reliability in that it relates to the ability of the service provider to perform the promised service dependably and accurately. •Responsiveness •The willingness of the service provider to be helpful and prompt in providing service. Chapter1 20
  • 21. Types of Quality •Indifferent Quality:That customer does not notice •Expected Quality:Is the quality that customer expects •One dimensional Quality:is the quality the customer expects but that does not necessarily result in lots of order •Exiting Quality is the quality that exceeds customer requirements Chapter1 21
  • 22. Customer driven Quality Quality is meeting or exceeding customer expectations. •Directing attention toward satisfying and delivering value to the customer. •Tools for Influencing Customer Perceptions of Quality •Price and advertising are the primary tools for influencing customer perceptions of quality, but are imperfect mechanisms. Cont.. Chapter1 22
  • 23. Customer driven Quality •Focus on Service •Another important contribution of the marketing perspective has been the focus on service. •Customer service surveys are important tools for assessing the multiple dimensions of quality. •In short Customer Driven Quality is meeting or exceeding customer expectation. Chapter1 23
  • 24. Quality in production Systems Production is the process of converting the resources available to an organization into products Goods & services.Quality involved in following areas: •Nature of Engineering Perspective •Engineers are interested in applying mathematical problem solving skills and models to the problems of business and industry. •Two of the major emphases in engineering •Product design •Process design Chapter1 24
  • 25. Quality in production Systems •Product Design Engineering •Involves all of those activities associated with developing a product from concept development to final design and implementation. •Product design life cycle •Key to quality as quality is assured at the design stage. •Concurrent engineering •The simultaneous performance of product and process design activities. Chapter1 25
  • 26. Quality in production Systems •Related Concepts •Life Testing •Is a facet of reliability engineering that concerns itself with determining whether a product will fail under controlled conditions during a specified life. •Is applied so that a back up system can take over for the failed primary system. •Statistical Process Control •Is concerned with monitoring process capability and process stability. Chapter1 26
  • 27. Three levels of Quality 1 Organizational Level At organizational level ,quality concerns center ton meeting external customer requirements 2. At process level Organizational units are classified as functions or departments such as marketing design,product 3.Performance level(Job level) These standards include requirements for accuracy,completeness Chapter1 27
  • 28. Determinants of Quality Several activities are necessary to achieve Quality they are: • Quality of Design • Quality capability of production processes • Quality of conformance • Quality of customer service •Organization Quality culture Chapter1 28
  • 29. Quality & competitive advantage One of the critical drivers of business success is having a unique competitive advantage. •Most managers understand that to attract a larger share of the market, or find enough customers prepared to pay a premium price, they must provide something of greater value than their competition. •For most managers, competitive advantage boils down to providing superior quality and service. Think about it. Is this what you are aiming for? Chapter1 29
  • 30. Quality & competitive advantage Competitive advantage denotes a firms ability to achieve market superiority Characteristics of a strong competitive advantage identified by S.C Whelwright are: •It is customer driven needs & wants •It makes significant value to success of business •It matches the organization's unique resources with opportunities in the environment •It is durable and lasting & difficult for competitors to copy Cont.. Chapter1 30
  • 31. Quality & competitive advantage •It provides a basis for further development •It provides directions and motivation to the entire organization Customers don’t believe vague claims and they don’t believe you, unless you can back up your statement with irrefutable facts. The same goes for service. What does better service mean? Is it faster, more personal, more user friendly? How can you support your claims? Chapter1 31
  • 32. Quality & Profitability Good Quality can also pay off in higher profits Several research studies undertaken by PIMS have found that: •Product Quality is important determinant of business profitability •Business that offer premium quality & services have large market shares •Quality is positively and significantly related to a high return •High Quality producers can usually change premium price Chapter1 32
  • 33. Quality as a source of value Many customers regard Quality as a Important source of value •Improved reputation •Easier selling •Legal Implications •Reduced lead time •Enhanced Flexibility •Improved Productivity •Reduced Cost •Employer pride Chapter1 33
  • 34. Quality and personal values •Today companies are asking employees to take more responsibility for acting as the point of contact between the organization and the customer,to be team players & to provide more effective & efficient customer service. •Personal Quality may be thought of as personal empowerment. •Personal Quality is an essential ingredient to make quality happens at work place Chapter1 34
  • 35. Quality Drives the productive Machine Japanese manufactures are credited with populating the notion that quality drives the productivity machine •This means If the production does it right first time ,& produces product and services which are defect free,Waste is eliminated & costs are reduced. •Productivity & Quality are often closely related •Poor quality can adversely affected if defective parts are reworked. •Poor quality tolls & equipment can lead to injuries &defective output Chapter1 35
  • 36. Total Quality Management End Of Chapter 1 Chapter1 36
  • 37. “Like” us on Facebook:  p // / http://www.facebook.com/welearnindia  “Follow” us on Twitter: http://twitter.com/WeLearnIndia http://twitter com/WeLearnIndia Watch informative videos on Youtube:  http://www.youtube.com/WelingkarDLP