importance of quality in todayÆs business environment

8/8/2019 IMPORTANCE OF QUALITY IN TODAYS BUSINESS ENVIRONMENT

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IMPORTANCE OF QUALITY IN TODAYS

BUSINESS ENVIRONMENT

Group Members:-

Amit Agarwal(101)Anjni Agarwal(103)

Kanishk Gupta(116)

Aashutosh Jakhodia(125)

Tanmay Khandelwal(129)

Robin Mukesh Gupta(136)


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EARLIER BUSINESS ENVIRONMENT


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CURRENT BUSINESS ENVIRONMENT


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QUALITY

Meeting or exceeding our customers expectations

Delivering high performing, safe, and most reliable

products and solutions in our industry

Fitness for use

Non-inferiority or superiority of something


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QUALITY MANTRA

y "Quality is doing right thing first time , every

time and all time

y Right specifications,Right Time, Right Price


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MYTHS

Quality is more expensive than can be justified

by the return.

Quality is too difficult to achieve and maintain.

We already produce high quality.


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Quality

Design

Product

ProcessSystem

Service

QUALITY NEEDS


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EVOLUTION OF TOTAL QUALITY

MANAGEMENT

Inspection

QualityControl

QualityAssurance

Totalqualitycontrol


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KANO MODEL-

CustomerSatisfied

Customer

dissatisfied

Need

Fulfilled

Need

Not Fulfilled

Performance

Excitement

Basic

Indifference

Relationship between Product Development

& Customer Satisfaction


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WHY IS QUALITY IMPORTANT

Customers expect Quality Products/Services

Need to be able to measure our progress

To achieve World Class Status

We need to get better to compete

Tough competition

Educated customer


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BENEFITS OF QUALITY

Higher customer satisfaction

Reliable products/services

Better efficiency of

operations

More productivity & profit

Better morale of work force

Less wastage costs

Less Inspection costs

Improved process

More market share

Spread of happiness &

prosperity

Better quality of life for all

Competitive advantage


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CustomerNeeds

StatedDesign as

per customerRequirement

Implied

Supply

Of rightspecification

On righttime

At rightPrice

Manufacturing

First Time-Every Time-All Time


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QUALITY LOOP

Customer

Design

Purchase

Store

ProductionQualityControl

Packing

Dispatch

TacticalSupport

Marketingand Sales


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QUALITY GAPS

Expectation PerceptionPerceived quality is poor


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LOSS DUE TO BAD QUALITY

Tangible

Higher Rejection

Higher Rework

Higher Customer Complains

Less Productivity

Intangible

Credit worthiness

Department to Department quarrels

Less interest in work


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DIMENSIONS

1. Performance - main characteristics of

the product/service

2. Aesthetics - appearance, feel, smell,

taste

3. Special Features - extra characteristics

4. Conformance - how well product/service

conforms to customers expectations


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DIMENSIONS

5. Reliability - consistency of performance

6. Durability - useful life of the

product/service

7. Perceived Quality - indirect evaluation

of quality (e.g. reputation)

8. Serviceability - service after sale


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EXAMPLES OF QUALITY DIMENSIONS

Dimension

1. Performance

2. Aesthetics

3. Special features

(Product)

Automobile

Everything works, fit &finish

Ride, handling, grade ofmaterials usedInterior design, soft touch

Gauge/control placementCellular phone, CDplayer

(Service)

Auto Repair

All work done, at agreedprice

Friendliness, courtesy,Competency, quicknessClean work/waiting area

Location, call when readyComputer diagnostics


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EXAMPLES OF QUALITY DIMENSIONS

Di nsi n

5. R li bilit

6.Dur bilit

7. P rc iqualit

8. r ic abilit

(Pr uct)ut bil

Infr quenc f breakdowns

Useful life in iles, resistanceto rust & corrosion

Top-ratedcar

Handling ofcomplaintsand/orrequests for information

( erice)utoRepair

Workdonecorrectl ,readywhenpromised

Workholdsupovertime

ward-winning servicedepartment

Handlingof complaint


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COST OF QUALITY

Failure Costs - costs incurred by defective arts/products or

faulty services.

Internal Failure Costsy Cost incurred due to non-conformance

y Includes

Scrap & rework costsCost of corrective action

Downgrading cost

External Failure Costsy Occur when poor products reach customer

y IncludeCost of customer complaints and returns

Product recall cost

Warranty claims cost

Product liability cost


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COST OF QUALITY- CONTINUED

A

ppraisal Costsy Cost incurred in measurement & analysis of data in

order to detect & correct problem

y Includes

Cost of maintaining, testing and inspection

Process control costs

Prevention Costs

y Cost associated with time spend in planning the

quality system

y Consists of the followingProcess control cost

Information system cost

Training cost

General management cost


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THANK YOU.

importance of quality in todayÆs business environment

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