Quality Management

Quality cannot be
inspected into a product-
quality has to be built into
each process.

2
 Textbook :

Managing for Quality and Performance Excellence,

9th Edition

James R. Evans, William M. Lindsay

Chapter 1 : Introduction to Quality

Chapter 2 : Philosophies and Frameworks of quality
Chapter 3 : Customer Focus in quality
Chapter 4 : Employee involvement and Empowerment
Chapter 5 : Leadership and teamwork
Chapter 6 : Statistical Process Control
Chapter 7 : Quality improvement Tools and Devices
Chapter 8 : Process Management:
Chapter 9 : Quality Management System
Chapter 10 : Partnering for Competitiveness
 Chapter 1

Introduction to Quality

4
 The Business Imperative

 “The first job we have is to turn out quality

merchandise that consumers will buy and
keep on buying. If we produce it efficiently
and economically, we will earn a profit, in
which you will share.”

- William Cooper Procter

5
 Importance of Quality
 Quality is uniquely positioned to accelerate
organizational growth through better execution and
alignment
 Quality provides the voice of the customer critical to
developing innovative products and services.
 Quality can provide an organization with a competitive
edge
 “No quality, no sales. No sales, no profit. No profit, no
jobs.”

6
What is quality?

7
 THE CONCEPT OF
QUALITY
People define quality in many ways-
 some think of quality as superiority or excellence,
 others view it as a lack of manufacturing or service defects,
 still others think of quality as related to product features or
price.

A study that asked managers of 86 firms in the eastern

United States to define quality produced several dozen
different responses, including--

1. perfection

2. consistency

3. eliminating waste

4. speed of delivery

8
 THE CONCEPT OF
QUALITY

5. compliance with policies and procedures

6. providing a good, usable product

7. doing it right the first time

8. delighting or pleasing customers

9. total customer service and satisfaction

9
 Perfection Fast delivery
Providing a good, usable product
Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers

Total customer service and satisfaction

Compliance with policies and procedures
10
 Today most managers agree that the main
reason to pursue quality is to satisfy customers.

 In highly competitive markets, merely satisfying

customer needs will not achieve success.
 To beat the competition, organizations often
must exceed customer expectations. Thus, one
of the most popular definitions of quality is
meeting or exceeding customer expectations.

11
 Definitions of Quality
 Transcendent definition: excellence
 Product-based definition: quantities of product
attributes
 User-based definition: fitness for intended use
 Value-based definition: quality vs. price
 Manufacturing-based definition:
 conformance to specifications/ Conformance to
requirements- Crosby (1979)

12
 Definitions of Quality
 The totality of features and characteristics that bear on
the ability of a product or service to satisfy a given need
 British Standard Institution, 1991

 Quality is a dynamic state associated with products,

services, people, processes, and environments that
meets or exceeds expectations and helps to produce
superior value– Goetsch and Davis (2010)

 The American National Standards Institute (ANSI) and the

American Society for Quality (ASQ) define quality as “the
totality of features and characteristics of a product or
service that bears on its ability to satisfy given needs.”

13
 The Quality Gurus – Edward Deming

 Quality is “uniformity and dependability”

1900-1993

1986
The Quality Gurus – Joseph Juran

Quality is “fitness for use”

1904 - 2008

1951
 Contemporary Influences
on Quality
 Global Responsibility
 Consumer Awareness
 Globalization
 Increasing Rate of Change
 Workforce of the Future
 Aging Population
 Twenty-first Century Quality
 Innovation

16
 on
Quality
 Learning systems
 Adaptability and speed of change
 Environmental sustainability
 Globalization
 Knowledge focus
 Customization and differentiation

17
Quality Perspectives

18
 The Total Quality Approach

• Total quality is an approach to doing

business that attempts to maximize an
organization’s competitiveness through
the continual improvement of the
quality of its products, services, people,
processes, and environments.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
Characteristics of The Total Quality
Approach
• Key characteristics of the total quality
approach are as follows:
 strategically based, customer focus,
obsession with quality, scientific
approach, long-term commitment,
teamwork, employee involvement and
empowerment, continual process
improvement, bottom-up education and
training, freedom through control, and
unity of purpose.
Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
The Rationale for Total Quality
Approach
• The rationale for total quality can be
found in the need to compete in the
global marketplace.
 Countries that are competing successfully
in the global marketplace are seeing their
quality of living improve.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
 Common Errors in TQA (Total
Quality Approach)
• Common errors made when starting
quality initiatives include—
 senior management delegation and poor
leadership; team mania; the deployment
process; a narrow, dogmatic approach;
and confusion about the differences
among education, awareness,
inspiration, and skill building.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
 Trends affecting TQA

• Trends affecting the future of quality

management include-
 demanding global customers,
 shifting customer expectations,
 opposing economic pressures, and
 new approaches to management.

Quality Management, Eighth Edition Copyright © 2016, 2013, 2008 by Pearson Education, Inc.
Dr. David L. Goetsch All Rights Reserved
 Quality Management

“It costs a lot to produce a bad product.”

Norman Augustine
 Principles central to the
practice of QM
 Customer focus
 Strategic focus
 Leadership focus
 Process focus
 People focus
 Scientific focus
 Continual improvement, innovation and learning
 Systems thinking

25
Cost of quality

1. Prevention costs

2. Appraisal costs

3. Internal failure costs

4. External failure costs

5. Opportunity costs
What is quality management all about?

Try to manage all aspects of the organization in order

to excel in all dimensions that are important to
“customers”

Two aspects of quality:

features: more features that meet customer needs
= higher quality
freedom from trouble: fewer defects = higher
quality
Two Views of Quality

• How well the features of a product or service meet the

customer need and therefore provide them with satisfaction =>
higher quality costs (usually) more

• Freedom from failures => higher quality costs

(usually) less

28
History: how did we get here…
• Deming and Juran outlined the principles of Quality
Management.
• Tai-ichi Ohno applies them in Toyota Motors Corp.
• Japan has its National Quality Award (1951).
• U.S. and European firms begin to implement Quality
Management programs (1980’s).
• U.S. establishes the Malcolm Baldridge National Quality
Award (1987).
• Today, quality is an imperative for any business.
 Managing for Quality ( Juran)
 A set of universal methods that any
organization, whether a business, an agency, a
university or a hospital can use to attain-
 superior results by designing, continuously
improving and ensuring that all products, services
and processes meet customer and stakeholder
needs.

30
 Juran’s trilogy
Designing and planning for Quality
Compliance, controlling and assuring
quality
Improving quality

31
 Juran’s trilogy
 Creating processes to design goods and services
to meet needs of the stakeholders (internal and
external). Understand needs of customers
 Creating processes to control quality. Ensure
compliance to design criteria
 Creating a systematic approach to improve
continuously. Failures must be discovered and
remedied.
 => Create functions and skills to do the things
above

32
Growth of Modern Quality
Management

Service Performance
quality excellence
Improved
product designs

Manufacturing
quality

33