quality first chapter for class

Concepts of Quality

ASQ - “quality is a subjective term for which each person has his or her own definition”

What is Quality:

• The best money can buy• Meeting a specification or conformance to

specifications• Craftsmanship• The degree of excellence that an item

possesses.• No more than 1% defective lot• Anything Japanese or German.

Webster’s Dictionary 1977 defines Quality as

• that which belongs to something and makes or helps to make it what it is: characteristic element: any character or characteristic which may make an object good or bad; the degree of excellence which a thing possesses.

Quality as per ISO (International Standard Organisation)

• The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Definition of Quality

• John Rabbitt defines Quality as:

The ability to exceed a customer’s expectations while maintaining a cost competitive market positions.

Definition of Quality

• Based on Holistic approach

• Based on Product perspective

• Based on Producer’s perspective

• Based on customer perspective

• Based on Value

Holistic Perspective:

Quality is the total of the characteristics that describe the overall object or service.

The assumption is that “ you will recognize quality when you see it.”

Product Perspective

• Product quality is represented by the total of a set of precise and measurable characteristics or components of a finished products.

Producer Perspective

• Quality is defined as consistent conformance to specifications and standards.

• When a product meets a company’s standards and specifications; it has achieved a desired quality level.

Producer Perspective

• Philip Crosby, a well known quality expert, states that quality is FREE.

• He means that the production costs are the same for FIRST quality products or for the SUBSTANDARD products.

Customer Perspective

• Quality depends on the dimensions of a product or service that are of importance to that user.

Value-based ApproachValue-based Approach• Manufacturing

dimensions– Performance

– Features

– Reliability

– Conformance

– Durability

– Serviceability

– Aesthetics

– Perceived quality

• Service dimensions– Reliability

– Responsiveness

– Assurance

– Empathy

– Tangibles

Factors that influence consumers’ perception of quality

• Price

• Technology

• Psychology

• Time Orientation

• Contractual

• Ethical

Deming’s Management principle

• According to W. Edwards Deming who maintained that quality is the responsibility of management.

Juran’s Approach

• It concentrates on eliminating the few sources that cause majority of problems.

• The focus is on:1. Understanding customers

2. Communication within the company

3. Communication with customers and

4. Continuous improvement.

TQM

• This focus on customers and their satisfaction is a basic underlying principle of Total Quality Management.

TQM

• In TQM, all of the company’s actions are directed towards

producing a quality product for the target market,

satisfying the target market and

meeting the company’s business objectives.

Value based perspective

• Winchester,1994 defines quality products are those that perform at acceptable prices or conform at acceptable costs.

• Silverman and Propst,1996 expand the scope and define value as the customer’s perception of total lifetime benefits minus total lifetime costs.

Quality should not be confused with Grade.

Grade is defined as

• A category or rank indicator of the totality of features and characteristics of a product or service intended for the same functional use or purpose, oriented at a specified cost related consumer/user market.

Why Quality

Foreign markets have grown

Import barriers and protection are not the answer.

Consumers are offered more choices

They have become more discriminating.

Consumers are more sophisticated

They demand new and better products.

It pays:

Less rework, fewer mistakes, fewer delays, and better use of time and materials.

15 to 20% of the production costs are incurred in finding and correcting mistakes.

How the organizationscompete

Most common competitive measures:

Quality (both real and perceived)

Cost

Delivery (lead time and accuracy)

Other measures

safety,

employee morale,

product development (time-to-market, innovative products)

Summary

Quality is a dynamic state associated with:

Products

Services

People

Processes and

Environment that meets or exceeds expectations

Thank you.