Introduction to Quality

1. Introduction to Quality Expanding the quality myth Author: Dr Rhys Rowland-Jones

2. Session Plan • Different views of quality • General definitions of quality • Some issues facing the quality profession • Views of quality • Costs of quality • Dimensions of quality

3. The first question to ask–What is Quality? How would you describe what “Quality” means?

4. QUALITY • Degree to which a set of inherent characteristics fulfils requirements ISO 9000:2000

5. Acceptance sampling Process control Continuous improvement Phases of Quality Assurance Inspection and corrective action during production Inspection before/after production Quality built into the process The least progressive The most progressive

6. QUALITY DOES NOTOCCUR BY ACCIDENT • What does the customer actually want? • Identify, understand and agreecustomer requirements • How are you going to meet those requirements? • Plan to achieve them

7. Plan Control Act & Do Improvement Check The Demming Cycle W.Edwards Demming

8. Some issues facing the quality profession • How to define quality from the customer’s perspective? • Keeping up with the constant increases in the level of quality of today’s goods and services. • The particular difficulties encountered in managing service quality. • How does the organization identify the quality dimensions that are most important to its customers?

9. Some issues facing the quality profession • Being able to avoid the costs of poor quality products and services. • Being able to deal with the shift in balance of power to consumers from producers through globalization. • Recognizing that customer loyalty is increasingly based on quality. • Getting ‘leaner’ by achieving higher levels of productivity.

10. Public action can be Seeking redress directly from the firm Takes action Taking legal action A dissatisfied customer A complaint to business, private, or governmental agencies Private action Stop buying the product or boycott the seller Takes no action Warn friends about the product and/or seller Expressing Dissatisfaction

11. Customer Feedback and Word-of-Mouth • The average business only hears from 4% of its customers who are dissatisfied with its products or services. Of the 96% who do not bother to complain, 25% of them have serious problems. • The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers. • About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly. • A dissatisfied customer will tell between 10 and 20 other people about their problem. • A customer who has had a problem resolved by a company will tell about 5 people about the situation.

12. An Approach to Viewing Quality. Slack et al 2004 • The transcendent approach views quality as synonymous with innate excellence e.g. Rolls Royce, Rolex, The Hilton. • The manufacturing-based approach assumes quality is all about making or providing error-free products or services e.g. Audi’s ‘vorsprung durch technik’. • The user-based approach assumes quality is all about providing products or services that are fit for their purpose e.g. it does what it says on the tin! • The product-based approach views quality as a precise and measurable set of characteristics e.g. 0-60 in 4.3 seconds. • The value-based approach defines quality in terms of value’ e.g. supermarket ‘value’ ranges.

13. Quality Characteristics of Goods and Services Functionality - how well the product or service does the job for which it was intended. Appearance - aesthetic appeal, look, feel, sound andsmell of the product or service. Reliability - consistency of product or service’sperformance over time. Durability- the total useful life of the product or service. Recovery - the ease with which problems with the product or service can be rectified or resolved. Contact- the nature of the person-to-person contacts that take place.

14. Internal and External Benefits of Quality Internal Benefits External Benefits Customer gets correct product or service Correct specifications Appropriate intangibles Customer satisfaction Customer retention Reduces costs Increases dependability Increases speed Boosts moral Increases customer retention Increases profit

15. Scrap, waste Customer complaints Reworking defects Increased stock levels Reduced productivity Increased labour costs Delivery failures Rescheduling The ‘Iceberg’ theory – how much is immediately visible? Loss of customers

16. British Standards on Quality Costs • BS 6143 Part 1 • BS 6143 Part 2 • Prevention Appraisal Failure Model (PAF) • Process Cost Model (PCM)

17. Costs of Quality Failure“Defects are not free, someone makes them and gets paid for the privilege” • COST OF INTERNAL FAILURE • Scrapped materials, goods and services • Rework/ retest • Reduced capacity/ yield/ increased downtime • Rescheduling • Service delays • Disruption to the service process. • Focus is on troubleshooting not improvement • COST OF EXTERNAL FAILURE • Warranty and servicing costs • Product liability / Litigation • Complaints and their administration • Loss of customer goodwill • Inconvenience to other customers

18. The Economic Costs of Quality • COST OF PREVENTION • Quality planning • Design of quality system • Staff quality training and development • Preventative maintenance • Supplier development training • Administering quality procedures (e.g. ISO 9001) • Time spent problem - solving, improving process • Measurement of customer satisfaction during process • COST OF APPRAISAL • Testing and Inspection of supplier goods and services • Testing and Inspection of internal service processes • Measurement of customer satisfaction after process • Quality Audits

19. Cost Flexibility Speed Dependability Quality Quality Quality + Dependability Quality + Dependability + Speed Quality + Dependability + Speed + Flexibility Quality + Dependability + Speed + Flexibility + Cost The Ferdows and DeMayer Sandcone Model of Operational Improvement: (FERDOWS & DeMAYER Adapted from Slack et al 2004)

20. Short Exercise: Quality Characteristics Consider howthe quality characteristics(functionality, reliability, appearance, durability, recovery and contact) relate to your organisation’s main products / services? Note your answers – now ask someone in your organisation the same question and compare your answers. Are they similar?

21. The Dimensions of Quality. The meaning of Quality Producer’s perspective Consumer’s perspective Quality of conformance Quality of design Production Marketing • Quality • characteristics • Price • Conformance to • specifications • Cost Fitness for consumer use

22. QUALITY MANAGEMENTSYSTEM Management system to direct and control an organisation with regard to quality ISO 9000:2000

23. PURPOSE OF ISO 9001:2000 “ISO 9001 specifies the requirements for a quality management system that may be used for internal application by organizations, certification, or contractual purposes.”

24. Summary • Quality has several dimensions • Quality is not only a system • There are costs to poor quality • Quality is a continuous journey