1.

0 Concept of Quality

McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.

 1.0 Concept of Quality
LEARNING OBJECTIVES:

After studying this chapter, you should be able to:

1. explain the concept of Quality and Total

Quality ;
2. understand the concept of Quality in the
Islamic perspective ;
3. differentiate between the modern and
traditional views on Quality ;
4. identify the key elements of Total
Quality (TQ) ; and
5. understand the historical development of
McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.
 1.1 Definition of Quality

Quality has been defined differently by different

people :

1. Performance to the standard expected by the

customer. (Fred Smith , CEO of Federal Express)

2. Doing the right thing right the first time,

always striving for improvement, and always
satisfying the customer. (US Dept. of Defense (DOD)).

(Goetsch & Davis, 2006)

Slide 1-3
 1.1 Definition of Quality

3. Quality is determined by the product users,

clients or customers, not by society in general. It
is not the same as 'expensive' or 'high quality'.
Low priced products can be considered as
having high quality if the product users
determine them as such.

(http://en.wikipedia.org/wiki/Quality_assurance)

Slide 1-4
 1.1 Definition of Quality

4. Similarity among the definitions are :

a. Quality involves meeting or exceeding customer

expectations.

b. Quality applies to products, services, people,

processes, and environments.

c. Quality is an-ever changing state (ie. What is

considered quality today may not be good enough to be
considered quality tomorrow)

Slide 1-5
 1.1 Definition of Quality

5. From the elements above Quality can be set forth

as :

A dynamic state associated with products,

services, people and environments that meets /
exceeds customers expectations.
(Goetsch & Davis, 2006)

Slide 1-6
 1.2 Definition of Quality Assurance

The systematic monitoring and evaluation of the various aspects of a

project, service or facility to maximize the probability that minimum
standards of quality are being attained by the production process.

2 principles included in QA are:

a."Fit for purpose" - the product should be suitable for the intended
purpose.

b."Right first time" - mistakes should be eliminated.

(http://en.wikipedia.org/wiki/Quality_assurance)

Slide 1-7
 1.3 Definition of Quality Control

Quality Control consists of THREE (3)

processes /steps in ensuring the quality of the
products is maintained :

assess /evaluate actual quality performance.

compare actual performance with performance
goals.
take immediate steps to resolve differences
between planned performance and actual
performance.
(Goetsch & Davis, 2006)

Slide 1-8
The difference between QA and QC is :

QC emphasizes testing of products to uncover

defects, and reporting to management who make
the decision to allow or deny the release,

whereas QA attempts to improve and stabilize

production, and associated processes, to avoid, or
at least minimize, issues that led to the defects in
the first place.

Slide 1-9
 1.4 Definition of Total Quality

TQ is an approach to doing business that attempts to

maximize the competitiveness of an organization
through the continual improvement of the quality of
its products, sevices, people, proceses, and
environments.
(Goetsch & Davis, 2010)

The unyielding and continually improving effort by

everyone in an organisation to understand, meet and
exceed the expectations of customers.
(P & G; quoted by Evans and Lindsay, 2008)

Slide 1-10
1.5 Islamic Perspective of Quality

Slide 1-11
Continue
1.5 Islamic Perspective of Quality

Q starts with good character. In Islamic approach,

character building relies on a TWO-FOLD
obligations ;

1. Obligatory duties for every individual muslim 5 pillars of

Islam. Islam has provided the sufficient basics for every Muslim
to be of a noble character.

2. Supererogatory acts are additional acts beyond obligatory

requirements which are strongly encouraged to further purify
the soul from all vices and beautify it with virtues. - devotional
acts which can be performed in accordance with the practices
of the Holy Prophet (PBUH).

Slide 1-12
Continue
1.5 Islamic Perspective of Quality
The Islamic teachings also provide several practices which can
specifically be applied to the improvement of quality and
productivity.
(Syed Othman, Syed Omar, Nik Mustapha and Aidit, 1998) :

1. Every action (good deed) should be accompanied by clear intention

(objective).
2. Islam demands its adherents to do more than what is minimally
required. A Quranic verse enjoins thus : Verily God demands that
you establish justice and be efficient and proficient.
3. Islam demands that all its adherents should take His Messenger
Muhammad (PBUH) as his role model.
4. A Muslim is encouraged to undertake all tasks skillfully and
diligently.
5. A Muslim is enjoined to frequently (daily at least) evaluate his good
and bad deeds (if any).
6. A Muslim is enjoined to strive towards excellence all the time.

Slide 1-13
Continue
1.5 Islamic Perspective of Quality

Islamic Quality Management Standard :

The standard is based on the Islamic-Based Quality

Organisational Management System 313 (IQOMS 313).

1. Generic management standard for business organisations ---

to seek excellence in their corporate culture and maximum
profitability.

2. The corporate culture of excellence is communicated to all

stakeholders --- internally and externally.

3. Inculcate positive work attitudes, govern the organisational

activities at all level, and enhance the work process.

Slide 1-14
Continue
1.5 Islamic Perspective of Quality

Halal Food Assurance System (HAFAS) :

1. A set of standards of halal food production for

organisations.

2. Focuses on the system of an organisation to ensure

that the organisation produces halal food.

3. Setting / establish halal benchmarks for its system to

ensure that the whole chain of its production processes
meets of halal criteria -final product will be halal.

Slide 1-15
Continue
1.5 Islamic Perspective of Quality

Continue.Halal Food Assurance System (HAFAS) :

4. Any Halal meat are foods that are allowed under

Islamic dietary guidelines or permitted for
consumption. Halal foods are the nature way of life as
good, wholesome, pure, safe, clean, nourishing and
healthy to consume.

5. Halal food can be eaten by non Muslims.

6. Muslims only eat halal food.

7. You can also refer to :

http://ehalal.org/has.html
Slide 1-16
Continue
1.6 Quality in the Generic vs
Islamic Perspective

SIMILARITIES

1. Being positive on customer feedback.

2. Encourages teamworking.

3. Foster positive work attitude.

4. Set systematic/organized procedures and standards.

Slide 1-17
Continue
1.6 Quality in the Generic vs
Islamic Perspective

NO. GENERIC ISLAMIC

1. Focuses on Focuses on quality of insan/process -
material and slavery and caliph value- harmoniously
physical aspect integrated concept of mujahadah and
facilities, concept of muhasabah, purified/clean
appearance of the soul eg. Prosessing /slaughtering beef
output (goods) in halal way.
2. Organization and Organization and Society being
Society being treated the same as servant of Allah.
treated as separate This is based on the concept of
entity and not even relationship among humans
close. They are (Habluminnannas) and between human
treated as provider and Allah (Hablumminallah). Quality of
and customer ibadah relates to the improvement of
respectively. human relations in the universe.
Slide 1-18
Continue
1.6 Quality in the Generic vs
Islamic Perspective
NO. GENERIC
3. Not a Total Concept
Not emphasize on Internal
affairs - morality, attitude,
values and beliefs eg.
ISO 9000 is silent on
ethical practice.
4. Reference
Model/Philisophy - Q
gurus and scholars from
The East and West ;
Demings, Juran, Crosby,
Ishikawa, Parasuraman,
Berry, Zeithaml etc
Slide 1-19
ISLAMIC
Total Concept - Emphasizes on
internal affairs Intention, soul,
morality, attitude, values and
beliefs, fairness. This good
conduct is guided by and
emphasized in The Holy Al-Quran
and As-Sunnah.
Reference Model/Philisophy -
The Prophet Muhammad (PBUH)
and His Companions ; Caliph Abu
Bakar As-Siddiq (RA), Caliph
Umar Al Khattab (RA), Caliph
Othman Affan (RA), Caliph Ali Abi
Talib (RA) etc
 1.6 TQ views vs Traditional Views of Quality

1. Productivity (quantity) vs. Quality

2. How quality is defined
3. How quality is measured
4. How quality is achieved
5. Attitude toward defects
6. Quality as a function
7. Responsibility for quality
8. Supplier relationships

Slide 1-20
Continue
1.6 TQ views vs Traditional Views of Quality

1. Productivity (quantity) vs. Quality

TRAD VIEWS TQ VIEWS

Productivity and quality are
always in conflict. Organizations
cannot have both. They either
have more production (quantity)
with low quality or high quality
with low production (quantity).
Lasting productivity gains are
made only as a result of quality
improvements. This means if
organizations are able to improve
the quality of their product, they
will be able to produce more
because consumers will
continuously buy their product.

Slide 1-21
Continue
1.6 TQ views vs Traditional Views of Quality

2. How quality is defined

TRAD VIEWS TQ VIEWS

Quality is defined solely as Quality as defined as satisfying
meeting customer customers by meeting and
specifications and mostly exceeding their expectations
defined by the management. and defined by the customers.

For example, A company For example a company

produces a car with basic produces a car with additional
features. features of bells and whistles

Slide 1-22
Continue
1.6 TQ views vs Traditional Views of Quality

3. How quality is measured

TRAD VIEWS TQ VIEWS

Quality is measured just by
establishing an acceptable
level of nonconformance and
measuring against that
benchmark.
Quality is measured using
scientific approach by
establishing high-performance
benchmarks, monitoring the
performance and continually
improving performance for
customer satisfaction.

Slide 1-23
Continue
1.6 TQ views vs Traditional Views of Quality

4. How quality is achieved

TRAD VIEWS TQ VIEWS

Quality is inspected into the
product. Quality is enough when
the product has achieved the
required quality.
Eg. Customer s expectation was
not the mainfocus.
Quality is determined by the
product and process design
through inspection made using
some appropriate and effective
control techniques.
Eg. customer feedback with high
satisfaction, less defect

Slide 1-24
Continue
1.6 TQ views vs Traditional Views of Quality

5. Attitude toward defects

TRAD VIEWS TQ VIEWS

Defect is an expected part of
producing a product. Measuring
defects per hundred is an
acceptable standard. It means
defects are still acceptable and
are expected at least one in
every one hundred of products.
Defects are to be prevented
using effective control systems
and are measured in defects per
million (six sigma). Defects are
unacceptable and should be
prevented. The number of
defects expected is minimal and
the most allowed is just one
defect in every one million of
products. (DPMO or defect per
million opportunities)

Slide 1-25
Continue
1.6 TQ views vs Traditional Views of Quality

6. Quality as a function

TRAD VIEWS TQ VIEWS

Quality is a separate function.
As explained before in US history
of quality, there was a separate
quality department responsible to
in-charge of quality in the
organization. Quality was merely
the responsibility of inspectors.
Quality is fully integrated
throughout the organization.
Quality focuses on integrated
system approach where any
problem about quality is the
responsibility of everybody in the
organization.

Slide 1-26
Continue
1.6 TQ views vs Traditional Views of Quality

7. Responsibility for quality

TRAD VIEWS TQ VIEWS
Employees are responsible and Managers (besides others) are
blamed for poor quality. also held responsible for any
fault or anything about quality.

Quality officer or department is Everybody is responsible for

responsible for quality quality movement of the
movement of the organization. organization.

Evidence: Evidence:
During the craftsmanship, only the At least 85% of quality problems
craftsman was held responsible for are managements fault
the product faulty. (Goetsch, 2010)

Slide 1-27
Continue
1.6 TQ views vs Traditional Views of Quality

8. Supplier relationships

TRAD VIEWS TQ VIEWS

Supplier relationships are short
term and cost oriented. The
organization selected a supplier
merely because of its low price of
product.
Supplier relationships are long
term and quality oriented. The
organization selects supplier not
only on the basis of price, but
also quality. Once selected the
organization and the supplier will
work together to ensure a good
long-term relationship.

Slide 1-28
 1.7 Key Elements of Total Quality

1. Strategically based
- have comprehensive strategic plan.
- aim to provide sustainable competitive advantage.

2. Customer focus
- internally --- quality of people, processes and environments
associated with products and services.
- externally --- quality of products and services delivered.

3. Obsession with quality

- become obsessed with meeting / exceeding customers
expectations.

Slide 1-29
Continue
1.7 Key Elements of Total Quality

4. Scientific approach
- using hard data to establish benchmarks, monitoring
performance and making improvements.

5. Long-term commitment
- necessary to ensure the total quality is successfully
developed in an organization.

6. Teamwork
- uniting all departments within an organization on quality
improvement and turn the internal competition into external
competitiveness.

7. Continual Process Improvement

- a fundamental goal in a total quality setting.
- necessary for continually improved systems.

Slide 1-30
Continue
1.7 Key Elements of Total Quality

8. Education and training

- represents the best way of continuous improvement for the
people.
- know how to work smart.

9. Freedom through control

- as a result of well-planned and well-carried-out controls.
- empowering employees to solve problems within their scope
of control.

Slide 1-31
Continue
1.7 Key Elements of Total Quality

10. Unity of purpose

- all employees work toward the common goal.

11. Employment involvement and empowerment

- involvement --- possible to attain good decisions and

promote ownership of decisions.
- empowerment --- giving an opportunity to voice out and make
decision.

Slide 1-32
 1.8 Historical Development of TQ in the Public Sector

1920s - The concept of TQ specifically TQM which is a

continuous process that involves the whole organization and its
customer-driven was introduced.

1950s - later introduced to the corporate managers in Japan.

1980s - The increasing awareness world-wide on the

importance of quality. These changes have directly affected the
views and attitudes of managers in the both, public and private
sectors on quality management.

1980s - TQ is regarded as one of the important thrusts during

public sector reformation.

Slide 1-33
Continue
1.8 Historical Development of TQ in the Public Sector

Public sector focuses on delivering services.

Service is defined as any primary or complementary activity

that does not directly produce a physical product that is, the
non-goods part of the transaction between buyer (customer)
and seller (provider).
(Evans & Lindsay, 2008).

The Malaysian governments effort taken to improve the

quality of the whole public service system are; sponsoring
training, seminars and workshops on quality and also publishing
guidelines, circulars and manuals on quality management.

Slide 1-34
Continue
1.8 Historical Development of TQ in the Public Sector

1992 - The Malaysian Government through the Development

Administration Circular No.1 of 1992 ; Guide On Total
Quality Management In The Public Service implemented
Total Quality Management (TQM) in the public sector, with
5 basic concepts:

a. Meeting customers requirement.

b. Maintain through prevention.
c. Standard of performance is zero-defect.
d. Cost of quality is non-conformance of standards.
e. Whole work is a process.

Slide 1-35
Continue
1.8 Historical Development of TQ in the Public Sector

MAMPUs (Malaysian Administrative Modernisation and

Management Planning Unit), a government body implementing
the functions of administrative modernisation and human
resources planning, has put in efforts to introduce several reforms
through programmes, series of circular, guidelines and directive
letters to achieve the national objective of institutionalizing a
quality culture which facilitates the implementation of TQM in
Malaysia.

(http://arcadia.mampu.gov.my/mampu/pkpa)

Slide 1-36
Continue
1.8 Historical Development of TQ in the Public Sector

PROFILE of MAMPU (www.mampu.gov.my)

MAMPU was established based on a study on Development
Administrative in Malaysia conducted by Prof. John D. Montgomery
and Milton J.Esman. The report acknowledged the need to upgrade
professionalism of all civil servants through educational and training
programmes. This leads to the formation of the Development
Administrative Unit (DAU) in 1966. DAU was tasked with the
responsibility of spearheading reforms in the Government
administration.

Slide 1-37
Continue
1.8 Historical Development of TQ in the Public Sector

PROFILE of MAMPU (www.mampu.gov.my)

Development Administration Unit (DAU) was later expanded and

renamed Implementation Coordination Development Administrative
Unit (ICDAU), responsible for coordinating development projects as
well as planning and development of human resources. To cope with
the rapid and dynamic development of the Civil Service, ICDAU was
restructured in 1977.

In 1986, the role of human resource planning was handed over to

other agencies so that MAMPU can focus on Public Sector
administrative modernization and management consultation. Since
then MAMPU was known as the Malaysian Administrative
Modernisation and Management Planning Unit (MAMPU).

Slide 1-38
Continue
1.8 Historical Development of TQ in the Public Sector

Vision of MAMPU
Leader In Driving Public Service Modernisation Towards Distinction By 2015

Mision of MAMPU
Spearheading public sector transformation to improve the well-being of the
people and to strengthen national competitiveness through innovative and
strategic enhancement of organisational management and ICT.

Moto
Together We Transform

Slide 1-39
Continue
1.8 Historical Development of TQ in the Public Sector

Roles of MAMPU
As the central agency for the modernisation of Public Service administration
and transformation of the delivery system, MAMPU carries out four (4) main
roles:

1.The driving force for change in the administration and management of

the Public Service. To introduce and promote new initiatives in the
administration and management of the Public Service, as well as evaluate and
award government agencies for their performance in the public service delivery
system of the country, towards achieving an efficient, effective and responsive
civil service.

2.Planning and promoting the development of communication and

information technology (ICT) in the Public Sector. To plan, device,
coordinate and assess the implementation of ICT development in the Public
Sector towards strengthening the service delivery of the government.

Slide 1-40
Continue
1.8 Historical Development of TQ in the Public Sector

Roles of MAMPU
3.Consulting in the organisational management of communication and
information technology (ICT) for Public Sector. To provide consultation
services to ensure the structure, system, work procedures and implementation
of ICT development are in line with efforts to improve the government's
delivery system.

4.Facilitator for the transformation and modernisation of the Public

Sector. To synergise knowledge, expertise and resources (from public, private
and NGOs) towards enhancing the modernisation and transformation of the
Public Sector.

Slide 1-41
Continue
1.8 Historical Development of TQ
in the Public Sector

Quality initiatives by the Malaysian

Government through programmes :

a. Public Sector Quality Awards

b. Key Performance Indicators
c. Manual Work Procedure and Desk File
d. Kumpulan Inovatif dan Kreatif
e. MS ISO 9001:2008

Slide 1-42
Continue
1.8 Historical Development of TQ in the Public Sector

Quality Initiatives / guidelines by the Malaysian Government

through the Development Administration Circulars :

1. No.2 of 1991 The Management of Meetings and

Government Committees.

2. No.4 of 1991 - Strategies for Quality Improvement in The Public

Service.

3. No.5 of 1991 - Guidelines On The Scheduling System (SIAP).

4. No.6 of 1991 - Guidelines on Productivity Improvement in the

Public Service.

5. No.8 of 1991 - Guidelines on the Manual of Work Procedures

and Desk File.

Slide 1-43
 1.8 Historical Development of TQ in the Public Sector

Quality
Continue Initiatives / guidelines by the Malaysian Government
through the Development Administration Circulars :

6. No.9 of 1991 - Guidelines on The Implementation Of The Malaysia

Incorporated Policy.

7. No.11 of 1991 - Guide on Procedure For Usage Of Work Action

Form.

8. No.1 of 1992 - Guide on Total Quality Management In The Public

Service.

9. No.2 of 1992 - Guidelines on Planning And Preparation Of

Development Projects.

10. No.3 of 1992 - Manual on Micro Accounting System (SPM).

Slide 1-44
 1.8 Historical Development of TQ in the Public Sector

Continue
Quality Initiatives / guidelines by the Malaysian Government
through the Development Administration Circulars :

11. No.1 of 1993 - Guidelines on Morning Prayers.

12. No.1 of 1995 - Use of Information In Application Forms And

Specific Criteria In Decision Making.

13. No.1 of 1997 - Guidelines For The Establishment Of The

National Infrastructure For Land Information System (Nalis).

14. No. 1 of 1999 - Guidelines on Implementation Of Benchmarking

In The Civil Service.

15. No.1 of 2001 - Guidelines on Implementation Of Law

Enforcement Monitoring System At The District Administrative
Level.

Slide 1-45
 1.8 Historical Development of TQ in the Public Sector

Continue
Quality Initiatives / guidelines by the Malaysian Government
through the Development Administration Circulars :

16. No.2 of 2002 - Guideline on Award For Excellent Service of

Civil Service Staff Members.

17. No.1 of 2002 - Guidelines on The Review Of The Work

Procedures And Processes In Government Agencies.

18. No.1 of 2003 Guideline on Procedural Use of Internet and

Electronic Mail at Government Agencies.

19. No.2 of 2005 Guidelines on Establishing KPI And

Implementing Performance Assessment At Government
Agency.

20. No.1 of 2006 - Public Service Innovation Award.

Slide 1-46
 1.8 Historical Development of TQ in the Public Sector

Continue
Quality Initiatives / guidelines by the Malaysian Government
through the Development Administration Circulars :

21. No.1 of 2007 Implementation of Standard Accounting

System For Government Agencies (SAGA).

22. No.3 of 2008 Penambahbaik Sistem Penyampaian

Perkhidmatan Kerajaan Menerusi Perkhidmatan Pesanan
Ringkas (SMS).

23. No.2 of 2008 Menambahbaik Penyampaian Perkhidmatan

Menerusi Kios di Agensi-agensi Kerajaan.

24. No.1 of 2008 Guidelines on Customer Relationship

Management.

Slide 1-47
 1.8 Historical Development of TQ in the Public Sector

Continue
Quality Initiatives / guidelines by the Malaysian Government
through the Development Administration Circulars :

25. 2009 Kumpulan Kreatif dan Inovatif (KIK) replacing

guidelines on Kumpulan Meningkat Mutu Kerja (KMK)
issued in 1991.

26. 2009 MS ISO 9001-2008 in the Public Sector

replacing the guidelines on MS ISO 9001:2000 issued in 1996.

27. No.1 of 2009 Proses Pengurusan Aduan Awam

replacing Managing Public Complaints issued in No.4
of 1992.

Slide 1-48
Continue
1.8 Historical Development of TQ in the Public Sector

Quality initiatives through the Development Administration

Circular Letter :

No. 1 of 2002 - Enhancing The Effectiveness Of Management

Of Public Complaints.

Quality initiatives through the General Circular Letters :

1. No. 11 of 1981 - Punch Card System in Government Offices.

2. No. 14 of 1982 - Pelaksanaan Pelan Pejabat Terbuka.
3. No. 8 of 1983 - Pemakaian Tanda Nama.

Slide 1-49
 End of Topic 1.0

McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.