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Quality Management

This document discusses quality management. It describes the difference between quality assurance and a strategic quality approach. It also outlines various dimensions of quality like performance, aesthetics, reliability and durability. Total quality management principles are described which emphasize customer satisfaction, employee involvement and continuous improvement. The different types of costs associated with quality are explained, including failure costs, appraisal costs and prevention costs. Examples are provided to illustrate dimensions of quality for products and services.

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56 views16 pages

Quality Management

This document discusses quality management. It describes the difference between quality assurance and a strategic quality approach. It also outlines various dimensions of quality like performance, aesthetics, reliability and durability. Total quality management principles are described which emphasize customer satisfaction, employee involvement and continuous improvement. The different types of costs associated with quality are explained, including failure costs, appraisal costs and prevention costs. Examples are provided to illustrate dimensions of quality for products and services.

Uploaded by

cric6688
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 16

Management of Quality

Chapter 6

9-1

Quality Assurance vs. Strategic Approach


Quality Assurance
Emphasis on finding and correcting defects
before reaching market
Strategic Approach
Proactive, focusing on preventing mistakes from
occurring
Greater emphasis on customer satisfaction

9-2

Dimensions of Quality
Performance - main characteristics
product/service
Aesthetics - appearance, feel, smell, taste
Special Features - extra characteristics

of

the

Conformance - how well product/service conforms to


customers expectations
Reliability - consistency of performance

9-3

Dimensions of Quality (Contd)


Durability - useful life of the product/service
Perceived Quality - indirect evaluation of quality
(e.g. reputation)
Serviceability - service after sale

9-4

Examples of Quality Dimensions

Dimension

(Product)
Automobile

(Service)
Auto Repair

1. Performance

Everything works, fit &


finish
Ride, handling, grade of
materials used
Interior design, soft touch

All work done, at agreed


price
Friendliness, courtesy,
Competency, quickness
Clean work/waiting area

2. Aesthetics

3. Special features Gauge/control placement Location, call when ready


Cellular phone, CD
Computer diagnostics
player

9-5

Examples of Quality Dimensions (Contd)

Dimension (Product)
Automobile

(Service)
Auto Repair

5. Reliability

Infrequency of breakdowns

Work done correctly,


ready when promised

6. Durability

Useful life in miles, resistance


to rust & corrosion

Work holds up over


time

7. Perceived
quality

Top-rated car

Award-winning service
department

8. Serviceability Handling of complaints and/or Handling of complaints


requests for information
9-6

Service Quality

Convenience
Reliability
Responsiveness
Time
Assurance
Courtesy
Tangibles

9-7

Examples of Service Quality

Table 9.4

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?


9-8

Producers Perspective
Quality of Conformance
Conformance to specification.
Cost

9-9

Total Quality Management (TQM)


Total quality management (TQM ) is a
philosophy that stresses three principles for
achieving high levels of process performance
and quality: customer satisfaction, employee
involvement and continuous improvement in
performance.

9-10

Principles of TQM
1. The customer defines quality, and customer satisfaction is the top
priority.
2. Top management must provide the leadership for quality.
3. Quality is a strategic issue and requires a strategic plan.
4. Quality is the responsibility of all employees at all levels of the
organization.
5. All functions of the company must focus on continuous equally
improvement to achieve strategic goals.
6. Quality problems are solved through cooperation among employees and
management.
7. Problem solving and continuous quality improvement use statistical
quality control methods.
8. Training and education of all employees are basis for continuous quality
improvement.
9-11

Cost of Quality
There are two types of cost involved in
quality management programs
1. Cost of achieving good quality
2. The cost of Poor Quality

9-12

Costs of Quality
Failure Costs - costs incurred
parts/products or faulty services.

by

defective

Internal Failure Costs

Costs incurred to fix problems that are detected


before the product/service is delivered to the
customer.

Scrap costs

Rework cost

Process failure costs

Process downtime costs

9-13

Costs of Quality
(continued)
External Failure Costs

All costs incurred to fix problems that are detected


after the product/service is delivered to the customer.

Customer complaint costs

Product return costs

Warranty claims costs

Product liability costs

Lost sales costs

9-14

Costs of Quality (continued)

Appraisal Costs
Costs of activities designed to ensure quality or
uncover defects

Inspection and testing


Operator costs

9-15

Costs of Quality
(continued)
Prevention Costs
All TQ training, TQ planning, customer assessment,
process control, and quality improvement costs to
prevent defects from occurring

Quality planning costs


Product design costs
Process cost
Training cost
Information cost

9-16

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