QUALITY - DEFINITIONSQUALITY - DEFINITIONS

1. “The ability of a product or service to meet customer needs”.

2. “The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs” - definition adopted by the American Society for Quality.

3. “Meeting or exceeding customer requirements now and in the future”. This means that the product or service is fit for customer’s use. Fitness for use is related to benefits received by the customer and to ensure customer satisfaction.

Slide 3

QUALITY - DEFINITIONS QUALITY - DEFINITIONS

• “The integrity in delivering what a customer has a legitimate right to expect in view of what was promised at the time of the agreement or purchase”.

• “The quality of a product or service is a customer’s perception of the degree to which the product or service meets his or her expectation”.

• “Quality is meeting or exceeding customer’s expectations”.

Slide 4

Cont’d

Quality is a means to an end.

Quality is a measure of how closely a good or service

conforms to specified standards or specifications.

“Quality is every one’s concern, it is job one”.

“Quality can be described as doing the right thing, doing

it the right way, doing it on time, doing it right the first

time and doing it right every time”.

QUALITY - DEFINITIONS (Contd..)QUALITY - DEFINITIONS (Contd..)

Quality is a critical factor in strategic performance.

Quality is what is in the eye of the customer.

Quality is in its essence a way of managing the organization.

Quality is what the customers say it is-not what the company

says.

Quality has become the most powerful corporate change agent

of our time and perhaps the single most important managerial

demand facing many companies today.

Slide 6

Cont’d

Quality means meeting customer’s (agreed) requirements,

formal and informal, at the lowest cost, first time and

every time.

Quality requires continuous improvement.

QUALITY - WHAT IT STANDS FOR ?QUALITY - WHAT IT STANDS FOR ?

Q : Quest for excellence

U : Understanding customer’s needs

A : Action to achieve customer’s appreciation

L : Leadership - determination to be a leader

I : Involving all people

Slide 8

Cont’d

T : Team spirit to work for a common goal and

Y : Yardstick to measure progress.

QUALITY - DEFINITIONSQUALITY - DEFINITIONS Manufacturing firms

1. perfection

2. consistency

3. eliminating waste

4. speed of delivery

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

Slide 10

DIMENSIONS OF PRODUCT QUALITYDIMENSIONS OF PRODUCT QUALITY

Performance: How well the product or service performs the

Customer’s intended use. For example, the speed of a laser

printer.

Features: The special characteristics that appeal to

customers. For example, power steering and central locking

system of an automobile.

Reliability: The ability of a product to perform to a

specified level of performance for a defined period of time.

Serviceability: The speed, cost and convenience of repairs

and maintenance.

Slide 11

Cont’d

• Appearances: The effect on human senses the look, feel,

taste, smell, or sound.

Customer Service: The treatment received by customers

before, during and after the sale.

Safety : How well the product protects users before,

during and after use.

Durability: The length of time or amount of use before

needing to be repaired or replaced.

QUALITY DEFINITION-QUALITY DEFINITION- Quality Gurus

1. W. Edward Deming, defined quality as “continuous improvement”

2. Joseph M. Juran, defined Quality as “fit for use”

3. Philip Crosby defined Quality as “conformance to requirements”

4. Kao Ishikawa defined Quality as “most economical, most useful and always satisfactory to the consumer”

Slide 13

Cont’d

5. Americans define Quality as “value received for Dollar Spent”

6. Europeans have Quality engineered into their goods

BENEFITS OF QUALITY TO A FIRMBENEFITS OF QUALITY TO A FIRM

1. It gives a positive company image

2. It improves competitive ability both nationally and internationally.

3. It increases market share, which translates into improved profits.

4. Overall, it reduces costs, which also translates into improved profits.

Slide 15

Cont’d

5. It reduces or eliminates product liability problems, avoiding unnecessary costs

6. It creates an atmosphere for high employee morale, which improves productivity.

WHAT DOES 99% QUALITY MEAN ?WHAT DOES 99% QUALITY MEAN ?

1. Your heart fails to beat 32000 times each year.

2. 500 incorrect surgical operations performed each week.

3. Two unsafe landings at Indira Gandhi Airport every month.

4. 19000 new born babies dropped at birth by doctors each

year.

5. 16000 lost pieces of mail per hour.

6. 22000 cheques deducted from the wrong account every day.

7. 20000 incorrect drug prescriptions each year.Slide 17

Total Quality Management

it is a set of systematic activities carried out by the entire organization to effectively and efficiently achieve company objectives so as to provide products and services with a level of quality that satisfies customers, at the appropriate time and price.

Cont’d

TQM

Contributions of Quality Gurus

Constituents of TQM

•W. Edwards Deming• Joseph M Juran• Philip B Crosby•Kaoru IshiKawa

•Kaizen• Small group activities•Total productive maintenance

Deming’s Contribution

PDCA cycle- Plan , do , check, act- continuous cycle

Deming’s 14 Points Consistency of purpose is must for continual

improvement of products Continuous change and innovation is a must

survival quality can not be achieved by only inspection Lowest price should not be the criteria for selecting

a supplier

Cont’d

Eliminates waste in every functional area, not only production

On-the job training of employees Attitude of supervisors and managers towards

worker should be that of facilitator Encourage workers to give quality improvement

ideas with out fear Remove the barriers between departments and

individuals

Cont’d

Posters and slogans should be eliminated Numeric targets and work standards may affect

quality Remove obstacles in the good workmanship of

hourly workers to instill a sense of pride in them. Vigorous programs of retraining and education of

employees are must. Top management’s commitment for ever

improving quality is must.

Deming’s Seven Deadly Disease Lack of consistency of purpose Emphasis on short term profit Evaluations of performance, merit rating, or

annual review Mobility of management and job hopping focus on Only visible figures Excessive medical cost Excessive cost of liability

Juran’s Contribution

Quality Trilogy Quality Spirals

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