quality is the ability of a product or service

to consistently meet or exceed customer

expectations
 “The degree of excellence of a thing”
 (Webster’s Dictionary)
 “The totality of features and characteristics that
satisfy needs”
 (American Society for Quality Control – ASQ)
 Fitness for consumer use – meet or exceed customer
expectations
 Performance - characteristics of the product or service
 Aesthetics - appearance, feel, smell, taste
 Special features - extra characteristics
 Conformance - customer’s expectations
 Safety - risk of injury or harm
 Reliability - consistency of performance
 Durability - useful life of the product or service
 Perception - reputation
 Service after the sale - handling of complaints,
customer satisfaction
Dimension (Product) (Service)
Automobile Auto Repair

Performance Everything works, fit & All work done, at agreed

finish price
Aesthetics Ride, handling, grade of Friendliness, courtesy,
materials used Competency, quickness
Special Interior design, soft touch Clean work/waiting area
features

Convenience Gauge/control placement Location, call when

ready
High tech Cellular phone, CD player Computer diagnostics

Safety Antilock brakes, airbags Separate waiting area

Dimension (Product) (Service)
Automobile Auto Repair

Reliability Infrequency of breakdowns Work done correctly,

ready when promised
Durability Useful life in miles, Work holds up over
resistance to rust & time
corrosion
Perceived Top-rated car Award-winning service
quality department

Service after Handling ofcomplaints Handling of complaints

sale and/or
requests for information
 Performance
 basic operating characteristics of a product; how
well a car is handled or its gas mileage
 Features
 “extra” items added to basic features, such as a
stereo CD or a leather interior in a car
 Reliability
 probability that a product will operate properly
within an expected time frame; that is, a TV will
work without repair for about seven years

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 Conformance
 degree to which a product meets pre–established
standards
 Durability
 how long product lasts before replacement
 Serviceability
 ease of getting repairs, speed of repairs, courtesy
and competence of repair person

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 Aesthetics
 how a product looks, feels, sounds, smells,
or tastes
 Safety
 assurance that customer will not suffer
injury or harm from a product; an especially
important consideration for automobiles
 Perceptions
 subjective perceptions based on brand
name, advertising, and the like

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 Time and Timeliness
 How long must a customer wait for service, and
is it completed on time?
 Is an overnight package delivered overnight?
 Completeness:
 Is everything customer asked for provided?
 Is a mail order from a catalogue company
complete when delivered?

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 Courtesy:
 How are customers treated by employees?
 Are catalogue phone operators nice and are their
voices pleasant?
 Consistency
 Is the same level of service provided to each
customer each time?
 Is your newspaper delivered on time every
morning?

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 Accessibility and convenience
 How easy is it to obtain service?
 Does a service representative answer you calls quickly?
 Accuracy
 Is the service performed right every time?
 Is your bank or credit card statement correct every month?
 Responsiveness
 How well does the company react to unusual situations?
 How well is a telephone operator able to respond to a customer’s
questions?

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 Quality of Design - intention of designers to include or
exclude features in a product or service designed to meet a
customer/client need/want/requirement.- it represents the
inherent value of the product or service in the marketplace
 Poor design can result in manufacturing or service
problems
 Customer disapproval

 Quality conformance - the degree to which the goods or

services conform to the intent of the designers
 Requires customer education/awareness as to the intended
use of the product/service (e.g. Electrical requirements,
medication instructions, attorney advice)
 Ease of use
 Service after delivery
. Loss of business
. Liability
. Productivity
. Costs

Failures will occur. The prevailing quality philosophy is that

Prevention is the best cure for quality problems. (An ounce of
prevention is worth a pound of cure).
• The cost of quality is the cost of conformance plus the
cost of nonconformance
– Conformance means delivering products that meet
requirements and fitness for use
– Cost of nonconformance means taking responsibility
for failures or not meeting quality expectations

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 Cost of Achieving Good Quality
 Prevention costs
 costs incurred during product design
 Appraisal costs
 costs of measuring, testing, and analyzing
 Cost of Poor Quality
 Internal failure costs
 include scrap, rework, process failure, downtime, and
price reductions
 External failure costs
 include complaints, returns, warranty claims, liability,
and lost sales
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 Quality planning costs
 costs of developing and
implementing quality
management program
 Product-design costs
 costs of designing products
with quality characteristics
 Process costs
 costs expended to make sure
productive process conforms
to quality specifications
 Training costs
 costs of developing and
putting on quality training
programs for employees and
management
 Information costs
 costs of acquiring and
maintaining data related to
quality, and development of
reports on quality
performance
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 Inspection and testing
 costs of testing and inspecting materials, parts, and
product at various stages and at the end of a process
 Test equipment costs
 costs of maintaining equipment used in testing
quality characteristics of products
 Operator costs
 costs of time spent by operators to gar data for testing
product quality, to make equipment adjustments to
maintain quality, and to stop work to assess quality

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  Process downtime costs
 costs of shutting down
 Scrap costs productive process to fix
 costs of poor-quality products problem
that must be discarded,
including labor, material, and Price-downgrading costs
indirect costs  costs of discounting poor-
 Rework costs quality products—that is,
 costs of fixing defective selling products as “seconds”
products to conform to quality
specifications
 Process failure costs
 costs of determining why
production process is
producing poor-quality
products
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 Customer complaint costs
 costs of investigating and
satisfactorily responding to a
customer complaint resulting
from a poor-quality product
 Product return costs
 costs of handling and replacing
poor-quality products returned
by customer
 Warranty claims costs
 costs of complying with product
warranties
 Product liability costs
 litigation costs resulting
from product liability
and customer injury
 Lost sales costs
 costs incurred because
customers are
dissatisfied with poor
quality products and do
not make additional
purchases
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 Cost of quality
 Difference between price of nonconformance
and conformance
 Cost of doing things wrong
 20 to 35% of revenues
 Cost of doing things right
 3 to 4% of revenues
 Profitability
 In the long run, quality is free

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 Quality is “uniformity
and dependability”
Focus on SPC and
statistical tools
“14 Points” for
management
PDCA method

1900-1993

1986
6. Institute worker training
7. Instill leadership among supervisors
8. Eliminate fear among employees
9. Eliminate barriers between departments
10. Eliminate slogans

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11. Remove numerical quotas
12. Enhance worker pride
13. Institute vigorous training and education
programs
14. Develop a commitment from top
management to implement above 13
points

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 4. Act 1. Plan
Institutionalize Identify
improvement; problem and
continue develop plan
cycle. for
improvement.

3. Study/Check 2. Do
Assess plan; is it Implement
working? plan on a test
basis.

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 Quality is “fitness for
use”
Pareto Principle
Cost of Quality
General
management
approach as well as
statistics

1904 - 2008

1951
 Walter Shewart
 In 1920s, developed control charts
 Introduced the term “quality assurance”
 W. Edwards Deming
 Developed courses during World War II to teach statistical
quality-control techniques to engineers and executives of
companies that were military suppliers
 After the war, began teaching statistical quality control to
Japanese companies
 Joseph M. Juran
 Followed Deming to Japan in 1954
 Focused on strategic quality planning

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 Armand V. Feigenbaum
 In 1951, introduced concepts of total quality control and
continuous quality improvement
 Philip Crosby
 In 1979, emphasized that costs of poor quality far
outweigh the cost of preventing poor quality
 In 1984, defined absolutes of quality management—
conformance to requirements, prevention, and “zero
defects”
 Kaoru Ishikawa
 Promoted use of quality circles
 Developed “fishbone” diagram
 Emphasized importance of internal customer
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The Deming Prize - The Union of Japanese Scientists and
Engineers (JUSE) invited Dr. Deming to Japan in July 1950.
He held a series of lectures and seminars during which he taught
the basic principles of statistical quality control to executives,
managers and engineers of Japanese industries. His teachings
made a deep impression on the participants' minds and provided
great impetus in implementing quality control in Japan.

In appreciation, JUSE created a prize to commemorate Dr.

Deming's contribution and friendship and to promote the
continued development of quality control in Japan. The prize was
established in 1950 and annual awards are still given each year.
“quality is not something you inspect into a product/service,
it is the result of the mental attitude of the person who is
producing or delivering a product/service, either you have
the mental attitude or you do not … if you do not, you can be
trained to have it … some people choose to … some do not

… at any rate, in your business careers it will be easy to spot

those who have it and those who do not … you will know it
when you see it”
Hodges, 1998