1. Introduction to Quality 1 Prepared & customized by : Dr.Ali Zahrawi ali.zahrawi@khawarizmi.com

2.  What is Quality?  Three Levels of Quality  Total Quality Management  Quality Improvement  Costs related to quality  Benefits/Drawbacks.

3.  Think about your past experiences staying at various hotels. Did you stay at a “quality” hotel? What about the experience made it a “quality” experience for you?  Think about a product you bought. How can you define its “quality”?

4. AreaExamples AirlinesOn-time, comfortable, low-cost service Health Care Correct diagnosis, minimum wait time, lower cost, security Food ServicesGood product, fast delivery, good environment Postal Services fast delivery, correct delivery, reasonable cost, overnight delivery Consumer ProductsProperly made, defect-free, cost effective InsurancePayoff on time, reasonable cost AutomotiveDefect-free CommunicationsClearer, faster, cheaper service

5. “The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.” - William Cooper Procter 5

6.  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 6

7. 7 Customer Distribution products and andservices needs needs transcendent & product-baseduser-based manufacturing- based based value-based Marketing Design Manufacturing Information flow Product flow

8.  “Meeting or exceeding customer expectations”  Customers can be...  Consumers  External customers  Internal customers 8

9.  Learning systems  Adaptability and speed of change  Environmental sustainability  Globalization  Knowledge focus  Customization and differentiation  Shifting demographics 9

10.  Organizational level  Organizational level: meeting external customer requirements  Process level  Process level: linking external and internal customer requirements  Performer/job level:  Performer/job level: meeting internal customer requirements 10

11.  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 awareness and effort (e.g., personal quality checklists) 11

12. Quality Management Quality Planning Criteria driven Quality Assurance Prevention driven Quality Control Inspection driven Quality Improvement

13. ...is any action directed toward providing customers with goods and services of appropriate quality. 13

14.  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 14

15.  Quality awareness in U.S. manufacturing industry during 1980s: “Total Quality Management”  Quality in service industries, government, health care, and education  Current and future challenge: keep progress in quality management alive 15

16.  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 the scientific method 16

17.  Customer and stakeholder focus  Participation and teamwork  Process focus and continuous improvement 17...supported by an integrated organizational infrastructure, a set of management practices, and a set of tools and techniques

18.  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

19.  Employees know their jobs best and therefore, how to improve them  Management must develop the systems and procedures that foster participation and teamwork  Empowerment better serves customers, and creates trust and motivation  Teamwork and partnerships must exist both horizontally and vertically 19

20.  A process is a sequence of activities that is intended to achieve some result 20

21.  Enhancing value through new products and services  Reducing errors, defects, waste, and costs  Increasing productivity and effectiveness  Improving responsiveness and cycle time performance 21

22. 22  There are many methods for quality improvement. These cover product improvement, process improvement and people based improvement.  Learning cycle:  Planning  Execution of plans  Assessment of progress  Revision of plans based on assessment findings

23. Deming’s Cycle Act A P D C Plan Do Check A P D C Plan Do Check A P D C What are we trying to accomplish? How will we know that a change is an improvement? AIM MEASURE What change can we make that will result in improvement? Selecting Change

24.  The foundation for improvement … Understanding why changes are successful through feedback between practices and results, which leads to new goals and approaches  Learning cycle:  Planning  Execution of plans  Assessment of progress  Revision of plans based on assessment findings 24

25.  Customer relationship management  Leadership and strategic planning  Human resources management  Process management  Data and information management 25

26. 26 Leadership Strategic HRM Process Data and information Planning mgt. management Planning mgt. management Performance Training appraisal appraisal Trend chart Tools Practices Infrastructure

27.  Is driven by customer wants and needs  Makes significant contribution to business success  Matches organization’s unique resources with opportunities  Is durable and lasting  Provides basis for further improvement  Provides direction and motivation 27 Quality supports each of these characteristics

28. 28 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

29.  General Accounting Office study of Baldrige Award applicants  Baldrige stock study (see www.quality.nist.gov)  Hendricks and Singhal study of quality award winners  Performance results of Baldrige Award winners 29

30.  Chapter 1, E-Text book (McGrawHill)  Quality Management, Third Edition by Gitlow, Oppenheim, Levine(Chapter 1 ) 30