1. Quality Management

2. Meaning of Quality  Getting what you paid for  “the totality of features and characteristics of a product or service that bears on its ability to satisfy given needs”

3. Dimensions of Quality (products)  Performance  Features  Reliability  Conformance  Durability  Serviceability  Aesthetics  Safety

4. Dimensions of Quality (service)  Time and timeliness  Completeness  Courtesy  Consistency  Accessibility and convenience  Accuracy  Responsiveness

5. Quality from Producers Perspective  Quality of Conformance –How effectively the production process is able to conform to the specifications required by the design –Depends on a number of factors: Design of the production process Performance levels of equipment & technology Materials used Training and supervision of employees Extent of statistical quality control

6. Product Quality - Price  Important consideration of product quality of product or service – PRICE  Producer looks at achieving quality of conformance at an acceptable cost  Product cost is an important design spec  Quality characteristics included in the product design must be balanced against production costs

7. Total Quality Management-TQM  Customer defines quality, and the customer’s needs are the top priority  Top management must provide the leadership for quality  Quality is a strategic issue  Quality is the responsibility of all employees at all levels of the organization

8. Total Quality Management-TQM  All functions of the company must focus on continuous quality improvement to achieve strategic goals  Quality problems are solved through cooperation among employees and management  Problem solving & continuous quality improvement use statistical quality control methods  Training and education of all employees are the basis for continuous quality improvement

9. Total Quality Management-TQM  Walter Shewhart  W. Edwards Deming

10. W. Edwards Deming  14 points  Plan/Do/Check/Act Cycle

11. Cost of Achieving Good Quality  Prevention costs –Quality planning costs –Product design costs –Process costs –Training costs –Information costs

12. Cost of Achieving Good Quality  Appraisal Costs –Inspection and testing –Test equipment costs –Operator costs

13. Costs of Poor Quality  Internal Failure Costs –Scrap costs –Rework costs –Process-failure costs –Process downtime costs –Price-downgrading costs

14. Costs of Poor Quality  External Failure Costs –Customer complaint costs –Product return costs –Warranty claims costs –Product liability costs –Lost sales costs