1. 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”

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

3. Definitions 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

4. Quality Perspectives transcendent & product-based user-based
Customer
Distribution
products
and
services
needs
transcendent &
product-based
user-based
manufacturing-
based
value-based
Marketing
Design
Manufacturing
Information flow
Product flow

5. Definition of Quality
Conformance to specifications
Fitness for use
Customer satisfaction

6. 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

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. Which quality dimensions are most important to an organization?

13. Why Is Quality Important?
Profit and market share
Competitiveness
Company’s reputation
Customer expectations
Product/service complexity
Potential liability
Employee satisfaction

14. Customer-Driven Quality
“Meeting or exceeding customer expectations”
Customers can be...
Consumers (end users)
External customers
Internal customers

15. 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

16. Principles of Total Quality
Customer and stakeholder focus
Participation and teamwork
Process focus and continuous improvement
...supported by an integrated organizational
infrastructure, a set of management practices,
and a set of tools and techniques

17. 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

18. 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

19. Process Focus and Continuous Improvement
A process is a sequence of activities that is intended to achieve some result

20. 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

21. Quality and Profitability
Improved quality of design
Improved quality of conformance
Higher perceived value
Higher prices
Lower manufacturing and service costs
Increased market share
Increased revenues
Higher profitability

22. Evidence that Quality Impacts Business Results
General Accounting Office study of Baldrige Award applicants
Baldrige stock study (
Hendricks and Singhal study of quality award winners
Performance results of Baldrige Award winners

23. 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

24. Quality 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)