Quality Management

Defining Quality

Conformance to Requirements

Fitness for Use

Customer Satisfaction

Conformance to Requirements

High quality is often synonymous with meeting specifications.

Manufacturing frequently takes this approach since it is closely linked to defect and scrap rates.

It is also very important to highly-regulated industries, e.g., health care.

Fitness for Use

This approach is user-oriented. it suggests

that quality lies in the eye of the beholder.

Different users have different needs, and

to the extent that a product or service

meets those needs, it is deemed to be of

high quality.

Customer Satisfaction

Customer satisfaction is a common measure for service quality.

Customer satisfaction not only measures quality, but also influences future purchasing decisions.

Customer satisfaction is determined by the gap between perception and expectation.

Quality Dimensions

Instead of a simple, uniform concept, quality needs to be defined in specific terms (dimensions) for a product or service.

An organization needs to focus on one or few quality dimensions.

The selection of quality dimensions depends on the basic business strategy.

Examples of Product Dimensions

Performance

Features

Reliability

Conformance

Durability

Serviceability

Aesthetics

Perceived quality

Examples of Service Dimensions

Reliability

Accessibility

Convenience

Empathy

Responsiveness

Aesthetics

Performance

Perceived quality

Strategic Consideration in Quality Management

Compete on quality (qualifier or order

winner)

Link quality to strategic planning

Define quality from customers’ view

Link quality to financial performance

Define clear quality measures

Minimizing the Costs of Quality

Prevention and Appraisal Costs rise during the initial phase of quality improvement.

Internal and External Failure Costs should fall as quality improves.

Appraisal Cost should fall as quality improves.

Total Cost of Quality should fall as quality improves.

Key Elements of Quality Management

Top Management Commitment

Customer Focus

Continuous Improvement

Employee Commitment and Involvement

Malcolm Baldridge Awards

Designed to recognize organizations which have achieved excellence in quality and to identify “role models” for other organizations.

Includes five categories: manufacturing, service, small business, health care, and education.

Internet web site: www.quality.nist.gov/

The Baldrige Framework –A Systems Perspective

4Measurement, Analysis, and Knowledge Management

5Human

Resource Focus

3Customer &

Market Focus

7Business Results

7Business Results

2Strategic Planning

1Leadership

6Process

Management

Organizational Profile:

Environment, Relationships, and Challenges

ISO 9000:2000

Quality system standards adopted in 1987 by International Organization for Standardization; revised in 1994 and 2000

Technical specifications and criteria to be used as rules, guidelines, or definitions of characteristics to ensure that materials, products, processes, and services are fit for their purpose.

ISO 9000 Key Characteristics

Establishes a quality management system (QMS) to facilitates consistency

It is not prescriptive; does not say “how” to do anything; specifies “what” processes need to be in place

It is not a product standard It is not TQM It is site specific

Major Potential Benefits of ISO 9000Registration

Documentation of quality management system

Reduction of variation Help develop and expand business Reduction or elimination of customer audit Increased profitability/reduced costs Elimination of duplication of quality systems

Major Problems with ISO 9000 Registration

Does not assure high quality Costs - application and maintenance Time - application and maintenance Level of internal expertise and use of

consultants Executive commitment Selection of registration

What Are the Methods to Improve Quality?

Key Methods for Quality Improvement

Process Improvement

Business Process Reengineering

Benchmarking

Six Sigma

Process Improvement

Uses a systematic process to improve the performance of a process

Employees are the key contributors

Uses intra- or inter-functional teams to carry out improvement initiatives

Management provides critical resources and support

Business Process Reengineering (BPR)

Seeks radical (breakthrough) improvement in process performance

Relies heavily on experts, not regular employees

Uses technology to re-design a process Requires significant financial investment A high-risk, high potential reward method

Benchmarking

A method to learn and adopt “best practices”

Best practices can come from a specific competitors or industry, or from any industry

Requires significant time and resources Benchmarking should be followed by

internal innovation

Six Sigma

A quality improvement methodology that focuses on eliminating defects through reduction of variation in a process

Defect – A measurable outcome that is not within acceptable (specification) limits

The goal is to reduce cost and improve quality simultaneously.

Requirements for Implementing Quality Management

Commitment to and involvement in quality from management

Personal accountability and rewards for quality improvement

Effective training on improvement tools

A culture that promotes empowerment and quality improvement