1. Introduction to QUALITY MANAGEMENT

2. Quality Management What does the term quality mean?
Quality is the ability of a product or service to consistently meet or exceed customer expectations.
A brief introduction. More details will be discuss in the course ISMT 263: Introduction to Quality Management

3. Dimensions of Quality How do people evaluate quality?
Performance - main characteristics of the product/service
Special features - extra characteristics
Conformance - how well product/service conforms to customer expectations
Reliability - consistency of performance

4. Dimensions of Quality (Cont)
Durability - useful life of the product/service
Perceived Quality - indirect evaluation of quality (e.g. reputation)
Service after sale - handling of customer complaints or checking on customer satisfaction

5. Determinants of Quality
What factors determine the quality of a product or service?

6. Determinants of Quality
Ease of
use
Design
Conform-ance to design
Service

7. Examples of Quality Dimensions

8. Examples of Quality Dimensions (Cont’d)

9. The Consequences of Poor Quality
Loss of business
Liability
Productivity (rework, defective output that must be scrapped)
Costs (rework, scrap, warranty cost, etc.)

10. Costs of Quality
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.

11. Costs of Quality (continued)
Appraisal Costs
All product and/or service inspection costs.
Prevention Costs
All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring

12. Key Contributors to Quality Management

13. Total Quality Management
A philosophy that involves everyone in an organization in the quest for quality, with customer satisfaction as the driving force.

14. Elements of TQM Continual Improvement Competitive Benchmarking
Employee Empowerment
Team Approach
Knowledge of Tools

15. Quality Function Deployment (ouse of Quality?
Definition
The process of involving customers in the design stage of new or redesigned products.
Voice of the
Customer
Product
Development
Production
Sales

16. Quality Awards
Baldrige Award
Deming Prize

17. Malcolm Baldrige National Quality Award
1.0 Leadership (100 points)
2.0 Information and Analysis (70 points)
3.0 Strategic Quality Planning (60 points)
4.0 Human Resource Utilization (150 points)
5.0 Quality Assurance of Products and Services (140 Points)
6.0 Quality Results (180 points)
7.0 Customer Satisfaction (300 points)

18. The Deming Prize Honoring W. Edwards Deming
Japan highly coveted award
Main focus on statistical quality control

19. The ISO 9000 Series Standards
Goal is a set of Euronorms
ISO 9000 series standards, briefly, require firms to document their quality-control systems at every step (incoming raw materials, product design, in-process monitoring and so forth) so that they will be able to identify those areas that are causing quality problems and correct them.

20. The ISO 9000 Series Standards
ISO 9000 requires companies to document everything they do that affects the quality of goods and services.
Hierarchical approach to documentation

21. The ISO 9000 Series Standards
ISO 9001, 9002, and 9003
This series is used in contractual situations.
9001 is the most stringent - addresses design/development, production, installation, and service
9002 deals only with production and installation
9003 deals only with final testing and inspection

22. ISO 9000 Series (continued)
Internal standard that lists essential elements of a quality system including management responsibilities, marketing, procurement, corrective action, human resource management, product safety, and the use of statistical methods.
Designed to help companies identify improvement opportunities

23. ISO 9000 Registration Process
When an organization feels that its quality system is good enough, it may ask an accredited registrar or other third party audit team for pre-assessment.

24. ISO 9000 Registration Process
The final audit begins with a review of the company's quality manual, which the accredited registrar or third party audit team typically uses as its guide. The audit team checks to see that the documented quality system meets the requirement of ISO 9000 and that the organization is practicing what is documented.

25. ISO 9000 Registration Process
When the registrar is satisfied with the favorable recommendation of the audit team, it grants registration and issues a registration document to the company.