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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
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