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History of Quality Management(1 of 2)History of Quality Management(1 of 2)

Skilled craftsmanship during Middle Ages Industrial Revolution: rise of inspection and

separate quality departments Statistical methods at Bell System Quality control during World War II Quality management in Japan Quality awareness in U.S. manufacturing

industry during 1980s: “TQM”

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History of Quality Management (2 of 2)History of Quality Management (2 of 2)

Malcolm Baldrige National Quality Award (1987)

Quality in service industries, government, health care, and education

Six Sigma programs for quality improvement and cost reduction

Current and future challenge: keep progress in quality management alive

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Definitions of QualityDefinitions of Quality

Transcendent definition: excellence Product-based definition: quantities of

product attributes User-based definition: fitness for intended

use Value-based definition: quality vs. price Manufacturing-based definition:

conformance to specifications

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Quality PerspectivesQuality Perspectives

CustomerCustomer

DistributionDistribution

products and services

needs

transcendent &product-based user-based

manufacturing- based

value-based

MarketingMarketing

DesignDesign

ManufacturingManufacturing

Information flowInformation flowProduct flowProduct flow

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Definition of Quality

Conformance to specifications

Fitness for use

Customer satisfaction

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Dimensions of Quality ( 1 of 6)

PERFORMANCE

How well the output does what it is

supposed to do.

RELIABILITY

The ability of the output (and its provider)

to function as promised

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Dimensions of Quality (2 of 6)

CONVENIENCE and ACCESSIBILITY

How easy it is for a customer to use the

product or service.

FEATURES

The characteristics of the output that exceed

the output’s basic functions.

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Dimensions of Quality (3 of 6)

EMPATHY

The demonstration of caring and individual

attention to customers.

CONFORMANCE

The degree to which an output meets

specifications or requirements.

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Dimensions of Quality (4 of 6)

SERVICEABILITY

How easy it is for you or the customer to fix the output with minimum downtime or cost.

DURABILITY

How long the output lasts. AESTHETICS

How a product looks, feels, tastes, etc.

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Dimensions of Quality (5 of 6)

CONSISTENCY

The degree to which the performance

changes over time.

ASSURANCE

The knowledge and courtesy of the

employees and their ability to elicit trust and

confidence.

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Dimensions of Quality (6 of 6)

RESPONSIVENESS

Willingness and ability of employees to help

customers and provide proper services.

PERCEIVED QUALITY

The relative quality level of the output in the

eyes of the customers.

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Which quality dimensions are

most important to an

organization?

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Why Is Quality Important?

Profit and market share Competitiveness Company’s reputation Customer expectations Product/service complexity Potential liability Employee satisfaction

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Customer-Driven QualityCustomer-Driven Quality

“Meeting or exceeding customer

expectations”

Customers can be...

• Consumers (end users)

• External customers

• Internal customers

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Total Quality

People-focused management system Focus on increasing customer satisfaction

and reducing costs A systems approach that integrates

organizational functions and the entire supply chain

Stresses learning and adaptation to change Based on scientific methods

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Principles of Total Quality

Customer and stakeholder focusParticipation and teamworkProcess focus and continuous

improvement

...supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques

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Customer and Stakeholder Focus

Customer is principal judge of quality Organizations must first understand

customers’ needs and expectations in order to meet and exceed them

Organizations must build relationships with customers

Customers include employees and society at large

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Participation and Teamwork

Employees know their jobs best and therefore, how to improve them

Management must develop policies and procedures that foster participation and teamwork

Teamwork and partnership must exist both horizontally and vertically

Empowerment generates better customer service, trust, and motivation

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Process Focus and Continuous Improvement

A process is a sequence of activities that is intended to achieve some result

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Continuous Improvement

Enhancing value through new products and

services

Reducing errors, defects, waste, and costs

Increasing productivity and effectiveness

Improving responsiveness and cycle time

performance

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Quality and ProfitabilityQuality and Profitability

Improved quality of design

Higher perceived value

Increased market share

Higher prices

Increased revenues

Improved quality of conformance

Lower manufacturing and

service costs

Higher profitability

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Evidence that Quality Impacts Business Results

General Accounting Office study of Baldrige Award applicants

Baldrige stock study (www.quality.nist.gov) Hendricks and Singhal study of quality award

winners Performance results of Baldrige Award

winners

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Three Levels of Quality

Organizational level: meeting external

customer requirements

Process level: linking external and

internal customer requirements

Performer/job level: meeting internal

customer requirements

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Quality and Personal ValuesQuality and Personal Values

Personal initiative has a positive impact on business success

Quality begins with personal attitudes Quality-focused individuals often exceed

customer expectations Attitudes can be changed through effort and

awareness (e.g., personal quality checklists)