QUALITY

Total Quality Control: A

System producing goods or
services meeting
requirements of customers
 TOTAL QUALITY MANAGEMENT

A Philosophy for management having 3 characteistics

(i) Customer focus and Satisfaction

(ii) Continuous Improvement
(iii) Teamwork
 WHY QUALITY MANAGEMENT?

(i) Due to high level of competition

(ii) Higher expectations of customers from orgs functioning in a global
environment
(iii) Distinctive competency of organisations
(iv) Costs are lowered: Less mistakes, less rework
(v) Personal point of view of workers
(vi) Excellent profitability due to higher quality
(vii) Greater customer loyalty
(viii) Less vulnerability to price wars
(ix) Ability to command higher price without affecting market share
(x) An improvement in share prices
 HOW DOES AN ORG. COMPETE?

By building its reputation in terms of:

(i) Quality
(ii) Credibility
(iii) Price
(iv) Delivery

Most important one is QUALITY

 DEFINITIONS OF QUALITY

What does ‘quality’ really mean?

 “the totality of features and characteristics of a
product or service that bear on its ability to satisfy
a stated or implied need”
(British Standard 4778, 1987)

 “Quality is the degree to which a set of inherent

characteristics fulfills requirements.”
(British Standards Institute ISO 9000:2015)
 DEFINITIONS OF QUALITY
Common definitions include:

Fitness for purpose

Customer satisfaction
Value for money
Zero defects
Get it right first time
The right thing, at the right price, at the right
time
DOES QUALITY MEAN THE MOST EXPENSIVE?
 THE QUALITY OBJECTIVE

Quality means different things in different operations.

What could quality mean to the following operations?

A hospital?

 Patients receive the most appropriate treatment.

 Treatment is carried out in the correct way.
 Patients are consulted and kept informed.
 Staff are courteous, friendly and helpful.
 THE QUALITY OBJECTIVE

A bus company?
• The buses are clean and tidy.
• The timetable is accurate and user friendly.
• Staff are courteous and helpful.
A supermarket?
• The store is clean and tidy.
• Décor is appropriate and attractive.
• Good range and stock of goods.
• Staff are friendly and helpful.
 DEFINITION OF QUALITY
Professor David Garvin (1984) categorized these many
definitions into 5 approaches to quality:

1. The Transcendent Approach

- Views quality as synonymous with excellence. Quality is
defined as the absolute, the best possible in terms of the
product’s or service’s specification.
e.g. how would you define A quality car? A ‘quality’
watch?
A ‘quality’ flight?
 DEFINITION OF QUALITY

2. The Manufacturing Based Approach

- this is concerned with making products or providing
services that are free of errors and that conform
precisely to their design specification.
3. The User Based Approach
- this is concerned with making sure that the product or
service is fit for its purpose. This means that not only
does it adhere to specification, but also that the
specification is appropriate for the customer.
 DEFINITION OF QUALITY

4. The Product Based Approach

- this views quality as a precise and measurable set of
characteristics that is required to satisfy the
customer.
5. The Value Based Approach
- this defines quality in terms of cost and price. This
approach contends that quality should be perceived in
relation to price. A customer may be willing to accept
something of a lower specification quality, if the price is
low. Examples?
 TOTAL QUALITY MANAGEMENT

Total: The whole – Consider all parts of the

organization, suppliers and customers included

Quality: Degree of excellemce of a product or service

Management: The art of managing people and

processes
 BASIC CONCEPTS OF TQM

 Top Management Commitment: Involvement and

provision of supplies
 Focus on both the internal and external customers
 Involvement and utilization of the whole workforce
 Continuous improvement of the business and production
process
 Suppliers treated as partners
 Establishing performance measures for the processes
 GARVIN’S EIGHT DIMENSIONS OF
QUALITY

• Performance: What it is expected to do

• Features: Desirable characteristics
• Reliability: Not malfunction or breakdown
• Conformance: Meet specified standards
• Durability: Last till customer
• Serviceceability: Easy and Cheap to repair
• Aesthetics: Look good
• Perceived quality: Value in the eye of the beholder
 MOST IMPORTANT ELEMENT OF THE
QUALITY PROCESS

THE CUSTOMER: Reason for the existence of the

organisation

Fitness-to-standard: Japan in the 1950s

Use Statistical Quality Control – from purchasing to
Finished Product

Modern Approach: Fitness-to-purpose

Ultimate User defines Requirements
 WHAT DETERMINES QUALITY?

The need to continually increase benefits and services

to keep up with the market or to gain a competitive
edge, has led to the need to eliminate any cost that
does not add value.

 “The level of quality provided must be a strategic

decision based on what the competition is doing and
what can be afforded, with a clear appreciation that
once started there is no turning back”

(Newton Wright, J 1999)

 SERVICE QUALITY
Services differ greatly, from manufacturing goods in terms
of how they are produced, consumed and evaluated.
Zeithamal et al. (1990) illustrate 3 fundamental differences:

 Services are basically intangible. E.g. because they are

performances and experiences rather than objects,
precise specifications can be rarely set.
 Services, especially those with high labour content are
heterogeneous.
 Production and consumption of many services are
inseparable.
 SERVICE QUALITY

The operation’s view of quality is concerned with trying

to meet customer’s expectations. The customer’s view
of quality is what he or she perceives the product or
service to be. To reconcile these two views, quality can
be defined as “the degree of fit between customer’s
expectations and their perception of the product or
service.”

(Berry & Parasuraman 1991)

 THE SERVQUAL MODEL

One of the most popular methods for assessing service

quality is the SERVQUAL model proposed by Parasuraman
et al, 1988.

They proposed measuring the gap between what

customers expected and their perceptions of the service
experience. The size of this gap would indicate areas for
improvement.
 THE SERVQUAL MODEL

Parasuraman et al, (1988) developed the SERVQUAL

questionnaire containing 22 questions derived from a
larger survey.

These were grouped into 5 categories called the

dimensions of service quality, which had been
consistently ranked by customers to be important for
service quality.
The dimensions of service quality are as follows:
 THE SERVQUAL MODEL
 Reliability
Ability to perform the promised service dependably and accurately.
 Responsiveness
Willingness to help customers & provide prompt service.
 Assurance
Knowledge & courtesy of employees & their ability to convey trust
and confidence.
 Empathy
The caring, individualized attention to customers.
 Tangibles
Appearance of physical facilities, equipment, personnel and
communication materials.
PHILOSOPHY OF QUALITY MANAGEMENT

1. Quality is a religion
2. There is a quality importance. Nothing else matters
3. The old ways of ensuring quality are no longer
appropriate in the global world.
4. The customer’s requirements is the driving force
Both Internal and External Customers
5. Quality Management is not a one-time-effort
Its demands are on-going
 THE RELIGION

• Become committed to the organization ad

quality
Commitment: Become personally involved.
• Have a quality vision and communicate that
vision with policies
• Find resources to ensure that change occur
• Give up short-term gains for long-term quality
improvenet
 THE IMPERATIVE
• Cheaper Faster Zero-defects
e.g Six Sigma : 3.4 defects per million

THE CUSTOMER
There is a wants/costs trade-off
This drives the organisation
 THE NEW WAYS

• Self-control: Do it and check it also

Only defect-free products leave the work area

• Collabronaut: Explores new possibilities. Creates

links or possibilities that can come though
collaboration
 IMPLEMENTATION AND EVALUATION

• Continual improvement
• Develop unique product
• Flexible Manufacturing System
• Communicate and translate customer
expectations
 QUALITY COSTS

To instill a quality culture into an organization

takes time, commitment and money.

However, what are the ‘costs’ of not achieving

quality?
 QUALITY COSTS
The total cost of quality is made up of four
components. These are:
1. Prevention Costs-
these are the expenses associated with creating
quality performance standards, i.e. staff training,
preparing purchase specifications, recipe
development etc.
2. Assurance Costs-
these are the expenses of inspection, measurement
and data collection analysis.
 QUALITY COSTS

3. Internal Failure Costs-

expense due to waste or loss before the tem reaches
the customer i.e. Corrective actions, returns to
suppliers.

4. External Failure Costs-

expenses related to defective items reaching the
customer resulting in customer dissatisfaction e.g.
free drink.
 INSPECTION

(i) Error detection

(ii) Rectification
QUALITY CONTROL
(iii) Statistical Methods
(iv) Process Performance
(v) Quality Standards
 QUALITY ASSURANCE

(i) Quality Systems

(ii) Quality Costing
(iii) Problem Solving
(iv) Quality Planning
QUALITY MANAGEMENT
Quality Assurance + Continual improvement +
Customer Satisfaction
 TYPES OF QUALITY EFFORTS : DEMING

(i) Quality of Design:

Designed the product suited for the market and
at a given cost.
Obtain feedback from customers and redesign
the product.

(ii) Quality of Performance:

How is performance in the market place
(iii) Quality of Conformance:
Ability to produce goods or services with a
predictable uniformity and dependability at a
reasonable cost and that conform to the quality
characteristics determined in the quality of of
design structure.
GOAL: Reduce variability
 TOTAL QUALITY MANAGEMENT

(i) Whole operation involved

(ii) Quality strategy
(iii) Team work
(iv) Staff environment
(v) Involves customers and suppliers
 THE TOTALITY ASPECT OF TQM
(i) MEETING THE NEEDS AND EXPECTATIONS OF CUSTOMERS.
(ii) COVERING ALL PARTS OF THE ORGANIZATION (internal
customers).
(iii) INVOLVING EVERY PERSON IN THE ORGANIZATION.
(iv) EXAMINING ALL COSTS THAT ARE RELATED TO QUALITY-
ESPECIALLY FAILURE COSTS.
(v) GETTING THINGS RIGHT FIRST TIME.
(vi) DESIGNING QUALITY RATHER THAN INSPECTING IT IN.
(vii) DEVELOPING THE SYSTEMS & PROCEDURES WHICH SUPPORT
QUALITY AND IMPROVEMENT.
(viii) DEVELOPING A CONTINOUS PROCESS OF IMPROVEMENT.