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Chapter 9

Chapter 9. Introduction to Quality. Different Ways to Define Quality. User-based quality defined by the customers and their expectations Operations-based quality degree to which an item conforms to specifications provided by the designers Product-based quality

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Chapter 9

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  1. Chapter 9 Introduction to Quality

  2. Different Ways to Define Quality • User-based quality • defined by the customers and their expectations • Operations-based quality • degree to which an item conforms to specifications provided by the designers • Product-based quality • viewed as a precise and measurable variable, i.e., fastest, biggest, smallest Chapter 9 Introduction to Quality

  3. Dimensions of Quality (1 of 2) • Performance - main characteristics of the product/service • Aesthetics - appearance, feel, smell, taste • Special features - extra characteristics • Conformance - how well product or service conforms to customer’s expectations • Safety - risk of injury Chapter 9 Introduction to Quality

  4. Dimensions of Quality (2 of 2) • Reliability - consistency of performance • Durability - useful life of the product or service • Perceived quality - indirect evaluation of quality (e.g. reputation) • Service after sale - handling of customer complaints or checking on customer satisfaction Chapter 9 Introduction to Quality

  5. Examples of Quality Dimensions (1 of 2) Table 9-1 Chapter 9 Introduction to Quality

  6. Examples of Quality Dimensions (2 of 2) Table 9-1 Chapter 9 Introduction to Quality

  7. Determinants of Quality Ease of use Design Conformance to design Service Chapter 9 Introduction to Quality

  8. Why Quality is Important to the Firm? • Reduces costs and increases market share • Improves company reputation • Reduces chances of product liability suits • International implications Chapter 9 Introduction to Quality

  9. Some Consequences of Poor Quality • Loss of business • Liability • Productivity • Costs Chapter 9 Introduction to Quality

  10. Costs of Quality (1 of 2) • Failure Costs - costs incurred by defective parts/products or faulty services. • Internal Failure Costs • Costs incurred to fix problems that are detected before the product/service is delivered to the customer. • External Failure Costs • All costs incurred to fix problems that are detected after the product/service is delivered to the customer. Chapter 9 Introduction to Quality

  11. Costs of Quality (2 of 2) • Appraisal Costs • All product and/or service quality inspection costs. • Prevention Costs • All quality training, quality planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring Chapter 9 Introduction to Quality

  12. Key Contributors to Quality Management Table 9-6 Chapter 9 Introduction to Quality

  13. Quality Awards Baldrige Award Deming Prize Chapter 9 Introduction to Quality

  14. Malcolm Baldrige National Quality Award (1 of 2) • Began in 1987 • Recognizes achievements of excellent organizations and provide examples to others • may give two awards in each category • manufacturing • small business • service • health care • education Chapter 9 Introduction to Quality

  15. Malcolm Baldrige National Quality Award (2 of 2) • Establishes criteria for evaluating quality efforts • Provides guidance for other American companies Chapter 9 Introduction to Quality

  16. 2001 MBNQA Categories and Scoring System 1.0 Leadership 120 2.0 Strategic Planning 85 3.0 Customer and Market Focus 85 4.0 Information and Analysis 90 5.0 Human Resource Focus 85 6.0 Process Management 85 7.0 Business Results 450 8.0 Global Market Development and Competitiveness (optional) 100 Chapter 9 Introduction to Quality

  17. Deming Prize • Instituted 1951 by Union of Japanese Scientists and Engineers (JUSE) honoring W. Edwards Deming • Several categories including prizes for individuals, factories, small companies, and Deming application prize • Japan’s highly coveted award • Main focus on statistical quality control • American company winners Chapter 9 Introduction to Quality

  18. Quality CertificationISO 9000 • Set of international standards on quality management and quality assurance, critical to international business • ISO 9000 series standards, briefly, require firms to document their quality-control systems at every step (incoming raw materials, product design, in-process monitoring and so forth) so that they’ll be able to identify those areas that are causing quality problems and correct them Chapter 9 Introduction to Quality

  19. ISO 9000: 2000 Series Table 9-7 modified Combined with ISO 9001 Combined with ISO 9001 Chapter 9 Introduction to Quality

  20. ISO 9000 Registration Process (1 of 3) • When an organization feels that its quality system is good enough, it may ask an accredited registrar or other third party audit team for pre-assessment • Feedback is provided regarding how well the company’s systems meet certification standards • The company makes adjustments based on this information Chapter 9 Introduction to Quality

  21. ISO 9000 Registration Process (2 of 3) • The final audit begins with a review of the company's quality manual, which the accredited registrar or third party audit team typically uses as its guide • The audit team checks to see that the documented quality system meets the requirement of ISO 9000 and that the organization is practicing what is documented Chapter 9 Introduction to Quality

  22. ISO 9000 Registration Process (3 of 3) • When the registrar is satisfied with the favorable recommendation of the audit team, registration is granted • This certification lasts three years during which the registrar periodically monitors the company Chapter 9 Introduction to Quality

  23. ISO 14000 • ISO 14000 - A set of international standards for assessing a company’s environmental performance • Standards in three major areas • Management systems • Operations • Environmental systems Chapter 9 Introduction to Quality

  24. ISO 14000 • Management systems • Systems development and integration of environmental responsibilities into business planning • Operations • Consumption of natural resources and energy • Environmental systems • Measuring, assessing and managing emissions, effluents, and other waste Chapter 9 Introduction to Quality

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