Recent Issues in Management Dr. Syed Mohammad Tariq Zafar Chapter 2 - Total Quality Management

1 X Lecture Outline  Meaning of Quality  Importance of Quality  Dimensions of Quality  Quality Movement in Japan  Quality Gurus and their Contribution  TQM in Service Companies  Cost of Quality  Tools of Quality Management

2 Meaning of Quality  Webster’s Dictionary  degree of excellence of a thing  American Society for Quality  totality of features and characteristics that satisfy customer needs  Consumer’s and Producer’s Perspective

QUALITY Full Form  Q – Quest for excellence  U – Understanding customers need  A - Action to achieve customers appreciation  A - Action to achieve customers appreciation  L – Leadership determination to be a leader  I – Involving all people  T – Team spirit  Y – Yardstick to measure progress 3

4 X Meaning of Quality: Consumer’s Perspective  Fitness for use  how well product or service does what it is supposed to  Quality of design  designing quality characteristics into a product or service  A Mercedes and a Ford are equally “fit for use,” but with different design dimensions

X Meaning of Quality: Producer’s Perspective Products which are demanded regularly by customers due to dimensions of quality such as durability, Features, Performance etc.  Samsung Mobiles  Toyota Automobiles Every producer wants to give the best to its customers. 5

6 Dimensions of Quality:  Performance  basic operating characteristics of a product; how well a car is handled or its gas mileage  Features  “extra” items added to basic features, such as a stereo CD or a leather interior in a car  Reliability  probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years

7  Conformance  degree to which a product meets pre–established standards. Car gives 15 Km per litre in actual.  Durability  how long product lasts before replacement.  Serviceability  ease of getting repairs, speed of repairs, availability of parts, courtesy and competence of repair person Dimensions of Quality: Manufactured Products (cont.)

8  Aesthetics  how a product looks, feels, sounds, smells, or tastes  Safety  assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles  Perceptions  subjective perceptions based on brand name, advertising, and the like Dimensions of Quality: Manufactured Products (cont.)

X Importance of Quality  Quality is important because it makes sure products and services meet the required standard. It also encourages consistency, competitive markets, reduced waste, ensures customer satisfaction as well as increased revenues. 9

X Quality Movement in Japan  After the second world war, Japan decided to make quality improvement in production and sought the help of Deming and Juran. In the 1950s and 1960s, Japanese goods were synonymous with cheapness and low quality, but over time their quality initiatives began to be successful, with Japan achieving very high levels of quality in products from the 1970s onward. DemingJuranDemingJuran 10

X Quality Movement in Japan  For example, Japanese cars regularly top the J.D. Power customer satisfaction ratings. In the 1980s Deming was asked by Ford Motor Company to start a quality initiative after they realized that they were falling behind Japanese manufacturers. A number of highly successful quality initiatives have been invented by the Japanese (see for example on this page: Genichi Taguchi, QFD, Toyota Production System. Many of the methods methods are now adopted by the same western countries that decades earlier derided Japanese methods. J.D. PowerGenichi TaguchiQFDToyota Production SystemJ.D. PowerGenichi TaguchiQFDToyota Production System 11