BBOO15 QUALITY MANAGEMENT

1. BBOO15QUALITY MANAGEMENT

2. Quality- A Look At History Technological Developments have been at the origin of each of the major world transformations, that we can characterize as an age. Now we are witnessing the birth of a “systems age”, that is replacing the “machines age” created by the industrial revolution. JAPANESE REVOLUTION IN QUALITY: Prior to world war -II Japanese products were perceived , throughout the world, to be poor in quality. To help sell their products in International markets, the Japanese took revolutionary ,legendary steps to improve quality. | | <document classification>

3. Introduction • What is quality? Dictionary has many definitions: “Essential characteristic,” “Superior,” etc. Some definitions that have gained wide acceptance in various organizations: “Quality is customer satisfaction,” “Quality is Fitness for Use.” • The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as: “The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.” | | <document classification>

4. Introduction • What is a customer? Anyone who is impacted by the product or process delivered by an organization. External customer: The end user as well as intermediate processors. Other external customers may not be purchasers but may have some connection with the product. Internal customer: Other divisions of the company that receive the processed product. • What is a product? The output of the process carried out by the organization. It may be goods (e.g. automobiles, missile), software (e.g. a computer code, a report) or service (e.g. banking, insurance) | | <document classification>

5. Introduction • How is customer satisfaction achieved? Two dimensions: Product features and Freedom from deficiencies. • Product features – Refers to quality of design. Examples in manufacturing industry: Performance, Reliability, Durability, Ease of use, Esthetics etc. Examples in service industry: Accuracy, Timeliness, Friendliness and courtesy, Knowledge of server etc. • Freedom from deficiencies – Refers to quality of conformance. Higher conformance means fewer complaints and increased customer satisfaction. | | <document classification>

6. DEFINITON OF QUALITY According to Juran-” Quality is fitness for use.” According to Crosby-”quality is conformance to requirements or specifications.” According to Taguchi-”quality is the loss that a product costs to society after being shipped other than any losses by its intrinsic functions”. According to Feigenabaum-”quality is what the customer says it is.” In General:-Quality is customer satisfaction and fitness for use. | | <document classification>

7. Certain Terms related to Quality CUSTOMER:A customer refers to individuals or households that purchase goods and services generated within the economy. The word historically derives from "custom," meaning "habit"; a customer was someone who frequented a particular shop, who made it a habit to purchase goods there, and with whom the shopkeeper had to maintain a relationship to keep his or her "custom," meaning expected purchases in the future. | | <document classification>

8. Certain Terms related to Quality PRODUCT: A product is the output of any process. Three categories can be: Goods:- Tangible products like automobiles, soaps, books etc. Software:- A set of instructions, computer program, a report etc. Service:-banking, transportation, plant maintenance. | | <document classification>

9. Certain Terms related to Quality • CUSTOMER SATISFACTION: A businessterm, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. • In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. | | <document classification>

10. Quality Requirements • Suitability • Durability • Dependability, reliability • Safe workability • Affordability • Applicability A product can be said to have a good quality if all the above abilities are balanced while designing and producing it. | | <document classification>

11. CHANGING BUSINESS CONDITIONS • COMPETITION • CHANGING CUSTOMER • CHANGING PRODUCT MIX • PRODUCT COMPLEXITY • HIGHER LEVEL OF CUSTOMER • EXPECTATION | | <document classification>

12. Why Quality? Reasons for quality becoming a cardinal priority for most organizations: • Competition – Today’s market demand high quality products at low cost. Having `high quality’ reputation is not enough! Internal cost of maintaining the reputation should be less. • Changing customer – The new customer is not only commanding priority based on volume but is more demanding about the “quality system.” • Changing product mix – The shift from low volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality. | | <document classification>

13. Why Quality? • Product complexity – As systems have become more complex, the reliability requirements for suppliers of components have become more stringent. • Higher levels of customer satisfaction – Higher customers expectations are getting spawned by increasing competition. Relatively simpler approaches to quality viz. product inspection for quality control and incorporation of internal cost of poor quality into the selling price, might not work for today’s complex market environment. | | <document classification>

14. Quality perspectives Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include: • Perfection • Consistency • Eliminating waste • Speed of delivery • Compliance with policies and procedures • Doing it right the first time • Delighting or pleasing customers • Total customer satisfaction and service | | <document classification>

15. Quality perspectives Judgmental perspective • “goodness of a product.” • Shewhart’s transcendental definition of quality – “absolute and universally recognizable, a mark of uncompromising standards and high achievement.” • Examples of products attributing to this image: Rolex watches, Lexus cars. Product-based perspective • “function of a specific, measurable variable and that differences in quality reflect differences in quantity of some product attributes.” • Example: Quality and price perceived relationship. | | <document classification>

16. Quality perspectives User-based perspective • “fitness for intended use.” • Individuals have different needs and wants, and hence different quality standards. • Example – Nissan offering ‘dud’ models in US markets under the brand name Datson which the US customer didn’t prefer. Value-based perspective • “quality product is the one that is as useful as competing products and is sold at a lesser price.” • US auto market – Incentives offered by the Big Three are perceived to be compensation for lower quality. | | <document classification>

17. INSPECTION Definition of quality, “A product or a service possesses quality if it helps somebody and enjoys a good and sustainable market.” Improve quality Decrease cost because of less rework, fewer mistakes. Productivity improves Capture the market with better quality and reduced cost. Long-term competitive strength Stay in business | | <document classification>

18. QUALITY ASSURANCE QA for short, refers to planned and systematic processes that provide confidence of a product's or service's effectiveness. It is the activity of providing the evidence needed to establish confidence, among all concerned, that the quality related activities are being performed effectively.+ | | <document classification>