Quality Management Course

A. Lecture summary: Chapter 1

1. Understanding the course title

▪ Management: The ultimate goal of management is to achieve the objectives that have
been set. Management encompasses activities aimed at directing, controlling, and
guiding efforts to achieve the desired outcomes.

▪ Quality: The ultimate goal of quality is customer satisfaction. Quality is not only about
meeting needs but also about exceeding customer expectations.

2. The core philosophy of the course: The central philosophy of this course is the awareness of
action. Only when you recognize the need for change can you proactively initiate activities to
achieve quality. Quality is not difficult; the challenge lies in each individual's understanding of
what they want and how to achieve it.

3. The concept of quality: The quality is defined through three main factors:

▪ Customers and stakeholders: This includes external customers, internal customers,

suppliers, legal entities, the community, and competitors.

▪ Distinctive characteristics of the entity: These characteristics are designed to meet the
needs of customers and stakeholders.

▪ The degree of fulfillment of these characteristics: To assess quality, one must consider
the extent to which the entity meets these distinctive characteristics.

4. Identifying quality characteristics

▪ RATER model: Applicable to service products, including Reliability, Assurance,

Tangibles, Empathy, and Responsiveness.

▪ Eight dimensions model: Applicable to tangible products, including Performance,

Aesthetics, Special features, Reliability, Conformance, Durability, Serviceability, and
Perceived quality.

▪ These models are for reference only and are not absolute; students are encouraged to
explore additional models.

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 5. Customers and stakeholders: Identifying the key groups:

▪ External customers

▪ Internal customers

▪ Suppliers

▪ Government - Legal entities

▪ Community and society

▪ Competitors

6. Identifying Needs, Wants, and Expectations

Identifying the "wants," "needs," and "expectations" of each customer group and stakeholder is crucial
in quality management. "Need" refers to the fundamental or essential requirements that customers must
have to achieve a goal or solve a specific problem. It represents the indispensable conditions that must
be met for customers to use a product or service effectively. "Want" refers to the additional desires of
customers, which are not necessarily essential but are preferred or favored. "Want" can include features
or attributes that customers desire to enhance their experience or satisfy personal preferences.
"Expectation" refers to what customers anticipate receiving from a product or service, based on past
experiences, advertising, or recommendations from others. "Expectation" can relate to a level of quality,
performance, or service that customers believe the product or service will deliver.

7. Determining the level of quality

To determine the degree of quality, measurement is essential. The measurement scales used must be
validated to ensure accuracy and reliability.

8. Factors influencing quality

Quality is influenced by two main groups of factors:

▪ Internal factors: The 4M model (Man, Machine, Material, Method), where the human
factor plays a critical role in impacting the other factors. The competence and suitability
of employees with the organization are key points.

▪ External factors: These include factors beyond the control of the organization, such as
market conditions, technology, and legal regulations.

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 9. Quality costs

▪ Conformance costs: These include prevention costs and in-process inspection costs.

▪ Non-conformance costs: These include post-process inspection costs and failure costs.
In-process inspection is necessary, but post-process inspection is considered a non-
conformance cost as it only detects errors after the product is completed.

This summary helps students grasp the core content of Chapter 1, from the concept of quality to the
factors influencing it, measurement methods, and quality management within an organization.

B. Applying content of chapter 1 in practice

For Business administration students:

1. Concept of quality - Action: List and analyze customer-related factors

▪ When working on a course project or delivering a presentation, students should compile

a list of stakeholders, such as internal customers, external customers, and consider their
requirements. For example, when designing a presentation, consider the requirements of
the instructor (internal customer) and the expectations of classmates (external
customers).

2. Identifying Needs, Wants, and Expectations - Action: Survey customers or target audience

▪ When undertaking a course project or presentation, students should conduct surveys to

clearly identify the "wants," "needs," and "expectations" of customers or target
consumers. For instance, before developing a course assignment, conduct a brief survey
within the class to understand the needs and expectations of both classmates and the
instructor.

3. Determining the level of quality - Action: Measure and evaluate individual work quality

▪ After completing any task, students should use validated scales to assess their
performance. For example, students can use a grading rubric or feedback from the
instructor to evaluate the quality of their work and identify ways to improve in future
tasks.

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 4. Factors influencing quality - Action: Identify and improve 4M elements in academic projects

▪ When working on a group project, students should identify the 4M elements (Manpower,
Machine, Material, Method) and assess which areas need improvement. For example, if
a team member’s skills (Manpower) are insufficient for a particular task, suggest
providing mentorship/support or reassigning the task to another member.

After graduation:

Business administration graduates can work in four areas: Sales/Marketing; Human

Resources/Administration/Legal; Finance/Projects/Risk; Operations/Technology. The following actions
can be applied based on the content learned in Chapter 1 of the Quality Management course:

1. Sales/Marketing

▪ Action 1: Develop customer engagement strategies based on needs and expectations

analysis - Before launching a marketing campaign, conduct market analysis to
understand the needs, wants, and expectations of the target customers. Use this data to
craft advertising messages and choose appropriate communication channels.

▪ Action 2: Use the RATER model to assess and improve customer service quality - After
sales or service delivery, regularly assess customer satisfaction using the RATER model.
Based on customer feedback, identify areas for improvement, such as reliability or
empathy.

▪ Action 3: Implement continuous survey programs to track changes in customer needs

and expectations - Establish periodic surveys to capture shifts in customer needs and
expectations. This helps you update and adjust marketing strategies to stay aligned with
market trends.

2. Human Resources/Administration/Legal

▪ Action 1: Analyze and improve the recruitment process using the 4M model - Evaluate
the current recruitment process based on the 4M model to identify areas for improvement,
such as recruitment methods or candidate quality, to enhance recruitment effectiveness.

▪ Action 2: Train and develop employees based on the organization’s actual needs and
individual capabilities - Design training programs based on assessing the needs and
capabilities of employees, ensuring that each employee has the opportunity to develop
the necessary skills to meet job requirements and contribute to the organization’s success.

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 ▪ Action 3: Establish a performance management system based on quality criteria - Apply
quality standards to set up a performance management system. This includes periodically
evaluating employee performance based on specific quality objectives, helping them
understand their responsibilities and contributions to the organization.

3. Finance/Projects/Risk

▪ Action 1: Build a budget plan based on quality cost analysis - When creating a budget
plan for a project, clearly identify the appropriate costs (prevention and inspection) and
inappropriate costs (failure and post-process inspection). This helps optimize financial
resources and minimize risks.

▪ Action 2: Manage risks based on evaluating internal and external factors - In project
management, assess risks from both internal (4M factors) and external factors to create
contingency plans for potential risks, thus minimizing negative impacts on the project.

▪ Action 3: Monitor and improve the financial performance of the project through quality
measurement - Set specific quality standards and use them to monitor the financial
performance of the project. This ensures that the project is not only completed on time
but also meets the expected quality.

4. Operations/Technology

o Action 1: Optimize operational processes based on the 4M model - Analyze current

operational processes to identify elements that need improvement according to the 4M
model (Manpower, Machine, Material, Method). For example, enhance the efficiency of
equipment (Machine) or production methods (Method) to improve product quality.

o Action 2: Establish a quality control system based on validated scales - Apply validated
quality measurement scales to control quality in production and operational processes.
This helps to detect issues early and take timely corrective actions.

o Action 3: Develop a continuous improvement strategy based on customer and

stakeholder feedback - Build a continuous improvement strategy by collecting and
analyzing feedback from customers and stakeholders. Use this information to adjust and
optimize operational processes, ensuring that the company consistently meets or exceeds
customer expectations.

These actions will help graduates effectively apply their knowledge of quality management to real-world
scenarios across different business functions.

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