Introduction to Quality• What does quality mean to you?• When you are choosing what to buy, which of the

following matter to you?:• Performance (how a product or service performs)• Reliability (is it dependable)• Durability (how long will it last)• Aesthetics (how it looks)• Perceived Quality (customer’s impression of the product or

service)• Cost

• What factors make a “quality” restaurant? What do you look for when you choose a restaurant?

What is Quality?

• Quality means different things to different people

• To some, quality means paying a high price. To others it means a better product.

• To most people, it means receiving a “fair return” for the money paid for a product.

Who determines quality?

• The customer determines quality.– DISCUSS!

• The customer is the ultimate judge of quality. He or she expects a product or service to do what it is supposed to do.

• When we determine a product to be a quality product, we have confidence in buying it again.

Definition of Quality

• To define quality you must consider these 3 elements:– The customer who is the ultimate judge of quality– A supplier who provides the goods or services• The supplier expects that if he/she meets the

expectations of the customer, the customer will become a repeat buyer, thus enhancing his/her position in the marketplace.

– A product (the goods or services)

Definition of Quality

• Quality has two technical meanings:– The ability to satisfy needs– A product or service free of defects

• Other definitions: – “Doing the right things right the first time, on time, all

the time, and always to the customer’s satisfaction” H.G. Brown

– “Quality is fitness for use”- Juran– “Quality is conformance to requirement”- H.G Brown

Why is quality important?

• Quality is important for suppliers because:– Satisfied customers are loyal if the supplier meets

their needs– Loyal customers mean repeat purchases and will

recommend to others– Without quality there are costs to be paid.

Products made with no concern for quality are often unsellable and wasted. Also, a bad reputation for poor quality can spread quickly.

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How do suppliers assure quality?

• Customers must be aware that quality control systems are in place and that these systems are being strictly adhered to.

• there must be a sense of assurance that the product or service they receive is one that will satisfy their needs and will be error-free.

• Quality Assurance is provided by the supplier by using quality control systems

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Quality Assurance

• QA is a broad concept that focuses on the entire quality system.

• it includes suppliers and consumers of the product or service

• it includes all activities designed to produce products and services of appropriate quality.

• it includes all planned or systematic actions necessary to provide adequate confidence that a product or service will satisfy given needs 8

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Quality Control• QC has a narrower focus than quality assurance• QC focuses on the process of producing the

product or service with the intent of eliminating problems that might result in defects.

• QC includes the operational techniques and the activities which sustain a quality product or service that will satisfy given needs.

• it includes the use of such techniques and activities

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The relationship between QA & QC

• If customers feel assured about the quality of the products they buy, it is because the company has implemented a QC system

• When organizations create QC systems, but do not implement them, assurance cannot be provided.

• YOU CANNOT HAVE QUALITY ASSURANCE WITHOUT QUALITY CONTROL SYSTEMS

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QUESTION:

• How do you, the customer, know that the technician who is changing the brakes on your vehicle is doing quality work?

• As a customer, you don’t know for sure. However, you feel assured, based on your personal knowledge of the shop’s reputation and your knowledge that the shop follows a set of accepted standards as part of their QC system.

• You are assured that the technician has a certain level of training and expertise, and the parts being used are of an acceptable standard

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Is the Concept of Quality New?• The concept has been around for a very long time- as long

as people have been making goods for other people.• 1800s- prior to the Industrial Revolution- products were

build by craftsmen in workshops or in their homes.• Craftsmen controlled the production processes and hence,

the outcomes.• They were responsible for ensuring quality without input

from any outside resource. • Does this mean they were not concerned about the quality

of their products? No! • They knew if they did not deliver high quality, they would

risk their reputation and hence, their livelihood

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Craftsmen & Quality

• Eventually, the individual craftsmen formed guilds.

• to become part of this guild, craftsmen had to adhere to a set of trade standards which ensured they produced the highest quality product.

• A product stamped by the guild meant a quality product.

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Industrial Revolution

• Once the Industrial Revolution began, work moved out of homes and workshops and into massive factories.

• Now the workers were no longer responsible for every step in the production process, but worked on a specific part of the whole process.

• Workers were concerned about the speed of the process (mass production meant getting as many goods into the marketplace, not quality products) and not the quality of the finished product.

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The Industrial Revolution & The 1920s• This method of production was created by Frederick Taylor who

envisioned the “scientific management system” which was also called “command and control management.”

• Concern was with sorting the good from the bad, not controlling the processes.

• In the 1920s, a new methodology began called Statistical Process Control (SPC) that was developed by Walter Shewart of Bell Telephone Laboratories in New Jersey.

• This method allowed workers to monitor and reduce the variation in virtually any step of a production process.

• Instead of just sorting the good from the bad, processes could be developed to prevent the production of defective products.

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The Japanese• After WWII, with the rise of Japan as an

economic superpower, quality became the main approach.

• Initiatives were implemented allowing workers to learn from their customers (understand what customers wanted), solve problems (to help customers get what they need), and to manage processes (as part of the whole team process)

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Today’s Global Marketplace• Today, it is quality, or the customer’s perception

of quality, that determines a successful business from one that eventually fails.

• The customer has the mentality of “if I cant get what I want from you, I’ll get it somewhere else”.

• Because of today’s technology, the customer has the whole world as a shopping mall.

• Any supplier who does not realize the importance of quality will surely fail.

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Why do we need Quality Assurance and Quality Plans?

• Why Quality in Manufacturing?– thanks to globalization and rapid advances in

technology, today’s manufacturing environment is very competitive.

– manufacturers must find new ways to design, produce, sell, and deliver products.

– If you know a company has a reputation for poor quality products, are you likely to avoid business with them?

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Why Quality in Service?

• Service industries have the challenge of meeting customer needs while remaining economically competitive.

• While automated processes can make an impact, service industries are still labour-intensive.

• This means that there can be no substitute for high-quality personal interaction between service employees and customers.

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Why Quality?• Competitive advantage rests with those organizations that

successfully provide customer value through the most efficient use of technology and people.

• The increase in quality has been initiated by the following:– growing concern about damage to the environment– action by the courts to impose strict liabilities– the occurrence and fear of major disasters in substantial loss of life and

property (The oil industry and losses at sea).– growing public awareness of the role of quality in international

competition.

– Ask yourself, if things were done right 99% of the time, would this make good quality?

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Answer: Unlikely!• A goal of zero errors or defects may be the only way to

ensure quality. Jeff Dewar of QCI International (a company that offers products and services to promote quality management) once said:

If we accept 99.9% as our goal, we'd have to accept the following conditions:

• 2 unsafe plane landings per day at O'Hare airport, Chicago• 16,000 pieces of mail lost by the USPS every hour• 22,000 checks deducted from the wrong account     every hour• 20,000 incorrect drug prescriptions each year• 32,000 missed heartbeats person per year

That puts the goal of quality in perspective. Thus perfection should be the aim every way every day...