Management
of Quality

Dictionary has many definitions: “Essential
characteristic,” “Superior,” etc.

Some definitions that have gained wide
acceptance in various organizations:
“Quality is customer satisfaction,” “Quality
is Fitness for Use.”

Quality is the ability of a product or
service to consistently meet or exceed
customer expectations.
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
Meeting Customer Requirements. (stated or implied)

Through Totality of Good and Services.

By Conforming to a specified standards.

At a given Time or over a period of time.

At a price a customer can afforded and has
willingness to pay.
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
Before Industrial Revolution, skilled craftsmen served
both as manufacturers and inspectors, building quality
into their products.

Industrial Revolution changed this basic concept to
interchangeable parts. Likes of Thomas Jefferson and
F. W. Taylor (“scientific management”.
94
•
Statistical approaches to quality control started at
Western Electric with the separation of inspection
division. Pioneers like Walter Shewhart, George
Edwards, W. Edwards Deming and Joseph M. Juran
were all employees of Western Electric.
•
After World War II, under General MacArthur's Japan
rebuilding plan, Deming and Juran went to Japan.
95
•
Deming and Juran introduced statistical quality control
theory to Japanese industry.
•
The difference between approaches to quality in USA
and Japan: Deming and Juran were able to convince
the top managers the importance of quality.
•
After 20 years Market started preferring Japanese
products and American companies suffered immensely.
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•
America woke up to the quality revolution in early
1980s. Ford Motor Company consulted Dr. Deming to
help transform its operations.
•
(By then, 80-year-old Deming was virtually unknown
in USA. Whereas Japanese government had instituted
The Deming Prize for Quality in 1950.)
•
Managers started to realize that “quality of
management” is more important than “management of
quality.” Birth of the term Total Quality Management
(TQM).
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
Walter Shewart
◦ In 1920s, developed control charts
◦ Introduced the term “quality assurance”

W. Edwards Deming
◦ Developed courses during World War II to teach statistical
quality-control techniques to engineers and executives of
companies that were military suppliers
◦ After the war, began teaching statistical quality control to
Japanese companies

Joseph M. Juran
◦ Followed Deming to Japan in 1954
◦ Focused on strategic quality planning

Armand V. Feigenbaum
◦ In 1951, introduced concepts of total quality control and
continuous quality improvement

Philip Crosby

Kaoru Ishikawa
◦ In 1979, emphasized that costs of poor quality far outweigh
the cost of preventing poor quality
◦ In 1984, defined absolutes of quality management—
conformance to requirements, prevention, and “zero
defects”
◦ Promoted use of quality circles
◦ Developed “fishbone” diagram
◦ Emphasized importance of internal customer






1924 - Statistical process control charts
1930 - Tables for acceptance sampling
1940’s - Statistical sampling techniques
1950’s - Quality assurance/TQC
1960’s - Zero defects
1970’s - Quality assurance in services
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Characteristic
a) Technological
–
b)
Psychological
–
c)
Reliability, Maintainability and Availability
Contractual
–
e)
Taste, Status and Beauty
Time Oriented
–
d)
Strength, Hardness and Surface Finishing
Contractual Provision
Ethical
–
Courtesy and Honesty
913
•
Quality of design
– Quality of Market Research
– Quality of Concept
– Quality of specifications
•
Quality of Conformance
– Technology
– Manpower
– Management
•
Availability
– Reliability
– Maintainability
– Logistical Support
•
Example in Quality of
Design in Car Industry
Size
Appearance
Comfort
Fuel Economy
Comfort
Material Used
Service
914
•
Performance: main characteristics of the
product/service
Conformance : how well product/service
conforms to customer’s expectations.
Aesthetics: appearance, feel, smell, taste
Special Features: extra characteristics
Reliability: consistent
•
Durability: Product life
•
Perceived Quality: indirect evaluation (
•
Serviceability: after sale service
•
•
•
•
reputation)
PROPOSED BY
915
PROF. DAVID GARDIN
FROM
TO
Reactive
Proactive
Detection & Inspection
Prevention
Acceptable Quality Level
Zero Defect
Blame Placing
Problem Solving
Cost or Quality
Cost & Quality
Quality Cost More
Quality Cost Less
Meet the Specification
Continuous Improvement
916
FROM
TO
Quality Department has R&D, Purchasing, Marketing,
only quality Problem
Operations etc have quality
problem
Subordinate to
Management team
Part of Management Team
Quality is Technical
Quality is Managerial
917







Convenience
Reliability
Responsiveness
Time
Assurance
Courtesy
Tangibles
918
Dimension
Examples
1. Convenience
Was the service center conveniently located?
2. Reliability
Was the problem fixed?
3. Responsiveness
Were customer service personnel willing and
able to answer questions?
4. Time
How long did the customer wait?
5. Assurance
Did the customer service personnel seem
knowledgeable about the repair?
6. Courtesy
Were customer service personnel and the
cashierfriendly and courteous?
7. Tangibles
Were the facilities clean, personnel neat?
919

Loss of business: Customer quietly stops
buying

Liability: Due to damages or injuries
Productivity: Rework or scrap (more

Costs

input)
920
Enhance reputation
 Increase market share
 Greater customer loyalty
 Lower liability Cost
 Fewer complains
 Lower production cost
 Higher profits









Top management
Design
Procurement
Production/operations
Quality assurance
Packaging and shipping
Marketing and sales
Customer service
922


Failure Costs - costs incurred by
defective parts/products or faulty
services.
Internal Failure Costs
◦

Costs incurred to fix problems that are
detected before the product/service is
delivered to the customer.
External Failure Costs
◦
All costs incurred to fix problems that are
detected after the product/service is
delivered to the customer.
923

Appraisal Costs
◦

Costs of activities designed to ensure quality or
uncover defects
Prevention Costs
◦
All TQ training, TQ planning, customer
assessment, process control, and quality
improvement costs to prevent defects from
occurring
924
◦ Upon Received of Raw Materials
◦ Before Costly & irreversible
Operations
◦ Before work that could hide defect
◦ Upon Completion of a product
◦ Before stocking high value items
◦ Before shipment to customers
925
END OF PART – 1
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