-is the ability of a product or service to consistently meet or exceed customer expectations. Though quality is an abstract perception, it has a quantitative measure.
Q= (P / E ) , where Q=quality, P= performance (as measured by the Manufacturer), and E = expectations (of the customer).
Total quality management
-is a management system for a customer focused organization that involves all employees in continual improvement of all aspects of the organization.
-TQM uses strategy, data, and effective communication to integrate the quality principles into the culture and activities of the organization.
-TQM is a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
Principles of TQM
1. Be Customer focused
Whatever you do for quality improvement, remember that ONLY customers determine the level of quality. Whatever you do to foster quality improvement, training employees, integrating quality into processes management, ONLY customers determine whether your efforts were worthwhile.
Customers want to get their money’s worth from a product or service they purchase.
2. Ensure Total Employee Involvement
You must remove fear from work place, then empower employee… you provide the proper environment.
3. Integrated system
All employee must know the business mission and vision.
4. Strategic and systematic approach
Strategic plan must integrate quality as core component.
5. Continual Improvement
Using analytical, quality tools, and creative thinking to become more efficient and effective.
6. Fact Based Decision Making
Decision making must be ONLY on data, not personal or situational thinking.
Communication strategy, method and timeliness must be well defined.
Dimensions of TQM
? Performance – main characteristics of the product/service
? Aesthetics – appearance, feel, smell, taste
? Special Features – extra characteristics
? Conformance – how well product/service conforms to customer’s expectations
? Safety – Risk of injury
? Reliability – consistency of performance
? Durability -useful life of the product/service
? Perceived Quality – indirect evaluation of quality (e.g. reputation)
? Serviceability – service after sale
Examples of Quality Dimensions
|Dimension |(Product)Automobile |(Service)Auto Repair | |1. Performance |Everything works, fit ;finish Ride, handling, grade |All work done, at agreed price Friendliness, | | |of materials used |courtesy, Competency, quickness | |2. Aesthetics |Interior design, soft touch |Clean work/waiting area | |3. Special features |Gauge/control placement Cellular phone, CD player |Location, call when ready | | | |Computer diagnostics | |4. Safety |Antilock brakes, airbags |Separate waiting area | |5. Reliability |Infrequency of breakdowns |Work done correctly, ready when promised | |6. Durability |Useful life in miles, resistance to rust ; corrosion |Work holds up over time | |7. Perceived quality |Top-rated car |Award-winning service department | |8. Serviceability |Handling of complaints and/or requests for information |Handling of complaints |
Determinants of Quality
1. Design, planned quality
Intension of designers to include or exclude features in a product or service
EX: Designed size, actual durability
Customer input is accounted for
2. Conformance to design (standards), executed quality
The degree to which goods or services conform to the intent of the designers
EX: Actual size, actual durability
Design for quality: Design with quality in mind
3. Ease of use
EX: Directions, instructions, training
4. Service after delivery
Consequences of Poor Quality
? Loss of business
? Customer quietly stops buying.
? Customer complaints rarely reach to the upper management. ? Liability
? Due to damages or injuries resulting from poor quality (design, conformance, ease of use, service) ? Low productivity, sales ; profit
? Rework or scrap. More input but does not increase the output. ? High costs
? Low customer satisfaction
? Low morale of workforce
? More re-work, material ; labor costs
? High inspection costs
? Delay in shipping
? High repair costs
? Higher inventory costs
? Greater waste of material
Basic Quality Tools
? A diagram of the steps in a process.
? A tool for organizing and collecting data; a tally of problems or other events by category. [pic]
? The most commonly used graph for showing frequency distributions, or how often each different value in a set of data occurs. [pic]
? A diagram that arranges categories from highest to lowest frequency of occurrence. [pic]
? A graph that shows the degree and direction of relationship between two variables. [pic]
? A statistical chart of time-ordered values of a sample statistic (e.g., sample means). [pic]
? A diagram used to organize a search for the cause(s) of a problem; also known as fishbone diagram. [pic]
? A graph that displays observed data in a time sequence. [pic]