Management of
Quality
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You should be able to:
LO 9.1 Discuss the philosophies of quality gurus
LO 9.2 Define the term quality as it relates to products and as it relates to
services
LO 9.3 Identify the determinants of quality
LO 9.4 Explain why quality is important and the consequences of poor
quality
LO 9.5 Distinguish the costs associated with quality
LO 9.6 Discuss the importance of ethics in managing quality
LO 9.7 Compare the quality awards
LO 9.8 Discuss quality certification and its importance
LO 9.9 Describe TQM
LO 9.10 Give an overview of problem solving
LO 9.11 Give an overview of process improvement
LO 9.12 Describe the six sigma methodology
LO 9.13 Describe and use various quality tools
9-2
 Walter Shewart
 “father of statistical quality control”
 Control charts
 Variance reduction
 W. Edwards Deming
 Special vs. common cause variation
 The 14 points
 Joseph Juran
 Quality Control Handbook, 1951
 Viewed quality as fitness-for-use
 Quality trilogy – quality planning, quality control, quality improvement
LO 9.1
9-3
 Performance – main characteristics of the product
 Aesthetics – appearance, feel, smell, taste
 Special features – extra characteristics
 Conformance – how well the product conforms to design
specifications
 Reliability – consistency of performance
 Durability – the useful life of the product
 Perceived quality – indirect evaluation of quality
 Serviceability – handling of complaints or repairs
 Consistency – quality doesn’t vary
LO 9.2
9-4
 Quality of design
 Intention of designers to include or exclude features in a product or service
 Quality of conformance
 The degree to which goods or services conform to the intent of the
designers
 Ease-of-Use and user instructions
 Increase the likelihood that a product will be used for its intended purpose
and in such a way that it will continue to function properly and safely
 After-the-sale service
 Taking care of issues and problems that arise after the sale
LO 9.3
9-5
 Loss of business
 Liability
 Productivity
 Costs
LO 9.4
9-6
 Appraisal Costs

Costs of activities designed to ensure quality or uncover
defects
 Prevention Costs

LO 9.5
All TQ training, TQ planning, customer assessment,
process control, and quality improvement costs to
prevent defects from occurring
9-7
 Substandard work
 Defective products
 Substandard service
 Poor designs
 Shoddy workmanship
 Substandard parts and materials
Having knowledge of this and failing to correct
and report it in a timely manner is unethical.
LO 9.6
9-8
 Quality Awards
 Deming Prize
 Malcolm Baldrige National Quality Award
 European Quality Award
LO 9.7
9-9
 International Organization for Standardization
 ISO 9000
 Set of international standards on quality management and quality
assurance, critical to international business
 ISO 14000
 A set of international standards for assessing a company’s
environmental performance
 ISO 24700
 Pertains to the quality and performance of office equipment that
contains reused components
LO 9.8
9-10
 A philosophy that involves everyone in an organization
in a continual effort to improve quality and achieve
customer satisfaction.
T
LO 9.9
Q
M
9-11
LO 9.10
9-12
 Process Improvement
 A systematic approach to improving a process
 Map the process
 Collect information about the process and identify each step in
the process
 Prepare a flowchart that accurately depicts the process
 Analyze the process
 Ask critical questions about the process
 Ask specific questions about each step in the process
 Redesign the process
LO 9.11
9-13
 Principles
 Reduction in variation is an important goal
 The methodology is data driven; it requires data validation
 Outputs are determined by inputs
 Only a critical few inputs have a significant impact on outputs
 DMAIC
 Define:
 Measure:
 Analyze:
 Improve:
 Control:
LO 9.12
Set the context and objectives for improvement
Determine the baseline performance and capability of
the process
Use data and tools to understand the cause-and-effect
relationships of the process
Develop the modifications that lead to a validated
improvement of the process
Establish plans and procedures to ensure that
improvements are sustained
9-14
LO 9.13
9-15