Management of Quality
Introduction Quality refers to the ability of a product or service to consistently meet or exceed customer requirements or expectations. Different customers will have different requirements, so a working definition of quality is customer-dependent. In order to rebuild Its economy after the Second World War, Japan focused on quality Improvement. Making It a national Imperative. This took place during a time when quality was not uppermost in the minds of business organizations worldwide.
It wasn’t that quality was unimportant, it Just wasn’t very important. Partly because of that thinking, Japanese companies captured a significant share of the U. S. Market. In the automotive sector, leading Japanese manufacturers Honda, Ionians, and Toyota became major players In the auto sales market In the united States. Both Honda and Toyota built a reputation for quality and reliability in their Many companies changed their views about quality after that, and changed them drastically. Stung by the success of Japanese competitors, they embraced quality in a big way.
G. S. Redford improved Tailor’s methods. Two of his most significant contributions were the notions of involving quality incinerations early in the product design stage and making connections between high quality, Increased productivity, and lower costs. In 1924, Bell
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About the same time, professional quality organizations were emerging throughout the country. Over the years, the American Society for Quality Control has promoted quality with its publications, seminars and conferences, and training programs. During the sass, the quality movement evolved into quality assurance. In the mid-sass, total quality control efforts enlarged the realm of quality efforts from its primary focus on manufacturing to also include product design and incoming raw materials. One important feature of this work was greater involvement of upper management in quality.
During the sass, the concept of “zero defects” gained favor. This approach focused on employee motivation and awareness, and the expectation of perfection from each employee. In the sass, quality assurance methods gained increasing emphasis in services including government operations, health care, banking and the travel industry. Also in this year, an embargo on oil sales instituted by the Organization of Petroleum Exporting Countries (OPEC) caused an increase in energy costs, and automobile buyers became more interested in fuel-efficient, lower-cost vehicles.
Japanese auto producers, who had been improving their products, were poised to take advantage of these changes, and they captured an increased share of the automobile market. The laity of their automobiles enhanced the reputation of Japanese producers, opening the door for a wife array of Japanese-produced goods. Americans producers, alarmed by their loss of market share, spent much of the late sass and the sass trying to improve the quality of their goods while lowering their costs.
The evolution of quality took a dramatic shift from quality assurance to a strategic approach to quality in the late sass. Up until that time, the main emphasis had been on finding and correcting defective products before they reached the market. It was still a reactive approach. The strategic approach is proactive, focusing on preventing mistakes from occurring in the first place. The idea is to design quality into products, rather than find and correct defects after the fact. This approach has now expanded to include processes and services. Quality and profits are more closely linked.
This approach also places greater emphasis on customer satisfaction, and it involves all levels of management as well as workers in a continuing effort to increase quality. THE FOUNDATIONS OF MODERN QUALITY MANAGEMENT: THE GURUS describes some of their key contributions to the field. Walter Shareware. He was a genuine pioneer in the field of quality control, and he became known as the “father of statistical quality control. ” He developed methods for analyzing the output of industrial processes to determine when corrective action was necessary. W. Edwards Deeming.
A statistics professor at New York University in the sass, compiled a famous list of 14 points he believed were the prescription needed to achieve quality in an organization. His message was that the cause of inefficiency and poor quality is the system, not the employees. He felt that it was management’s responsibility to correct the system to achieve the desired results. The key elements of Deeming 14 points are constancy of purpose, continual improvement, and profound knowledge. Joseph M . Curran. Author of Quality Control Handbook published in 1951. He views quality as fitness-for-use.
He also believes that roughly 80 percent of quality defects are management controllable; thus, management has the responsibility to correct this deficiency. He describes quality management in terms of a trilogy consisting of quality planning, quality control and quality improvement. According to him, quality planning is necessary to establish processes that are capable of meeting quality tankards; that quality control is necessary in order to know when corrective action is needed; and that quality improvement will help to find better ways of doing things.
A key element of his philosophy is the commitment of management to continual improvement. Armband Figment. He was instrumental in advancing the “cost of unconformable” approach as a reason for management to commit to quality. He recognized that quality was not simply a collection of tools and techniques, but a “total field”. He saw that when improvements were made in a process, other areas of the company also achieved improvements. His book Total Quality Control published in 1961 laid out quality principles in 40 steps. According to him, it is the customer who defines quality. Philip B. Crosby.
He worked at Martin Marietta in the sass. He developed the concept of zero defects and popularized the phrase “Do it right the first time. ” He stressed prevention, and he argued against the idea that “there will always be some level of defectives. ” In accordance with the concept of zero defects, Crosby believes that any level of defects is too high, and that management must install programs that help the organization move toward that goal. Among some of his key points are the following: 1 . Top management must demonstrate its commitment to quality and its willingness to give support to achieve good quality. . Management must be persistent in efforts of quality and what workers must do to achieve that. 4. Make it (or do it) right the first time. Koru Chickasaws. The late Japanese expert on quality was strongly influenced by both Deeming and Curran, although he made significant contributions of his own to quality management. His key contributions were the development of the cause-and-effect diagram (also known as fishbone diagram) for problem solving and the implementation of quality circles, which involve workers in quality improvement.
He was the first quality expert to call attention to the internal customer-?the next person in the process, the next operation, within the organization. Generic Attaching. He is best know for the Attaching loss function, which involves a formula for determining the cost of poor quality. The idea is that the deviation of apart from a standard causes a loss, and the combined effect of deviations of all parts from their standards can be large, even though each individual deviation is small. Tactics Non and Chigoes Shining. They both developed the philosophy and methods of kamikaze, a Japanese term for continuous improvement at Toyota.
Continuous improvement is one of the hallmarks of successful quality management. INSIGHTS ON QUALITY MANAGEMENT Successful management of quality requires that managers have insights on various aspects of quality. These include defining quality in operational terms, understanding the costs and benefits of quality, recognizing the consequences of poor quality, and recognizing the need for ethical behavior. Defining Quality: The Dimensions of Quality One way to think about quality is the degree to which performance of a product or revive meets or exceeds customer expectations.
Customer expectations can be broken down into a number of categories, or dimensions, that customers use to Judge the quality off product or service. Understanding these helps organizations in their efforts to meet or exceed customer expectations. Product Quality is often Judged on eight dimensions of quality: Performance-?main characteristics of the product or service. Aesthetics-?appearance, feel, smell, taste. Special features-?extra characteristics. Conformance-?how well a product or service corresponds to design specifications. Reliability-?consistency of performance.
Durability-?the useful life of the product or service. Serviceability-?handling of complaints or repairs. Service Quality is often described using the following dimensions: Convenience-?the availability and accessibility of the service. Reliability-?the ability to perform a service dependably, consistently, and accurately. Responsiveness-?the willingness of service providers to help customers in unusual situation and to deal with problems. Time-?the speed with which service is delivered. Assurance-?the knowledge exhibited by personnel who come into contact with a customer and their ability to convey trust and confidence.
Courtesy-?the way customers are treated by employees who come into contact with them. Tangibles-?the physical appearance of facilities, equipment, personnel, and communication materials. Other challenges with service quality include the reality that customer expectation often change over time and that different customer tend to have different expectations. Couple these with the fact that each contact with a customer is a “moment of truth” in which service quality is instantly Judged, and you begin to understand some of the challenges of achieving a consistently high perception of service quality.
The Determinants of Quality The degree to which a product or a service successfully satisfies its intended purpose has four primary determinants: 1. Design. 2. How well the product or service conforms to the design. 3. Ease of use. 4. Service after delivery. The design phase is the starting point for the level of quality eventually achieved. Design involves decisions about the specific characteristics of a product or service such as size, shape, and location. Quality of design refers to the intention of designers to include or exclude certain features in a product or service.
Design decisions must take into account customer wants, production or service capabilities, feet and liability (both during production and after delivery), costs, and other similar considerations. Quality of conformance refers to the degree to which good and services conform to the intent of the designers. This is affected by factors such as the capability of the design lends itself to production; the monitoring process to assess conformance; and the taking of corrective action when necessary. Ease of use and user instructions are important.
They increase the chances, but do not guarantee, that a product will be used for its intended purposes and in such a way that it will continue to function properly and safely. The Consequences of Poor Quality It is important for management to recognize the different ways in which the quality of a firm’s products or services can affect the organization and to take these into account in developing and maintaining a quality assurance program. Some of the major areas affected by quality are: 1. Loss of business 2. Liability. 3. Productivity 4. Costs.
Responsibility for Quality All members of an organization have some responsibility for quality, but certain parts of the organization are key areas of responsibility: Top Management. It has the ultimate responsibility for quality. They must institute orgasm to improve quality; guide, direct, and motivate managers and workers; and set an example by being involved in quality initiatives. Design. Quality products and services begin with design. It includes attention to the processes that will be requires to produce the products and/or the services that will be required to deliver the service to customers.
Procurement. The procurement department has responsibility for obtaining goods and services that will not detract from the quality of the organization’s goods and services. Production/operations. It has responsibility to ensure that processes yield products ND services that conform to design specifications. Monitoring processes and finding and correcting root causes of problems are important aspects of this responsibility. Quality assurance. Is responsible for gathering and analyzing data on problems and working with operations to solve problems. N transit, that packages are clearly labeled, that instructions are included, that all parts are included, and shipping occurs in a timely manner. Marketing and sales. This department has the responsibility to determine customer needs and to communicate them to appropriate areas of the organization. They are also responsible to report any problems with products and services. Customer service. It has the responsibility to communicate that information to appropriate departments, deal in a reasonable manner with customers, work to resolve problems, and follow up to confirm the situation has been effectively remedied.
The Cost of Quality Any serious attempt to deal with quality issues must take into account the costs associated with quality. Those costs can be classified into three categories: Appraisal Cost – relate to inspection, testing and other activities intended to uncover defective products or services, or to assure that there are none. They include the cost of inspectors, testing, test equipment, labs, quality audits, and field testing. Prevention Costs – relate to attempts to prevent defects from occurring.
They include costs such as planning and administration systems, working with vendors, training, quality control procedures, and extra attention in both the design and production phases to decrease the probability of defective workmanship. Failure Costs – are incurred by defective parts or products or by faulty services. Internal failures are those discovered during the production process; external allures are those discovered after delivery to the customer. QUALITY AWARDS The Baldrics Award In 1987, the U. S.
Congress passed the Malcolm Baldrics National Quality Improvement Act. This legislation was designed to inspire increased efforts on the part of organizations located in the Unites States to improve the quality of their products and services. The Baldrics Award is administered by the National Institute of Standards and Technology. The purpose of the award competition is to stimulate efforts to improve quality, to recognize quality achievements, and to publicize successful programs. Benefits of the Baldrics competition include the following: 1.
Winners achieve financial success. 3. The process motivates employees. 4. The process provides a well-designed quality system. 5. The process requires obtaining data. 6. The process provides feedback. The European Quality Award The European Quality Award is Rupee’s most prestigious award for organizational excellence. It sits at the top of regional and national quality awards and applicants have often won one or more of those awards prior to applying for the European Quality Award. There are four categories of awards, listed in descending order: 1. Award winner.
The European Quality Award is presented annually to the organization Judged to be the best in each of the award categories, providing they also meet all the requirements set annually by the award Jurors. 2. Prize winners. Prizes are presented annually to organization that excel in some of the fundamental concepts of excellence such as leadership, customer focus, corporate social responsibility and people development. 3. Finalists. Finalists are organizations that demonstrate a high degree of excellence in the management of quality as their fundamental process for continuous improvement. 4. Recognized for excellence.
This indicates that the organization is well manage and aspires to achieve role model status. The International Asia Pacific Quality Award The International Asia Pacific Quality Award is given to organizations in countries bordering the Pacific Ocean and the Indian Ocean. The award is given by the Asia Pacific Quality Organization (APPC), a nonprofit organization dedicated to achieving continuous quality improvement of goods and services and of lie for people around the world. The Deeming Prize The Deeming Prize, named in honor of the late W. Edwards Deeming, is Japan’s highly coveted award recognizing successful quality efforts.
The major focus of the Judging is on statistical quality control, making it much narrower in scope than the Baldrics Award, which focuses more on customer satisfaction. Philippine Quality Award The Philippine Quality Award Program is a global competitiveness template that aims to encourage and engage public and private organizations and other stakeholders to strive for and attain performance excellence. The PEAK is the centerpiece program of integrated approach to improve economy-wide productivity during the term of former President Fidel V. Ramose in response to the growing challenges of globalization.
It was created through Executive Order 448 on October 3, 1997 and on February 28, 2001 it was institutionalized through the signing of Republic Act 9013, also known as the Philippine Quality Award Act. QUALITY CERTIFICATION ISO 9000 and 14000 The International Organization for Standardization (SO) promotes worldwide standards for the improvement of quality, productivity, and operating efficiency through a series of standards and guidelines. They increase the levels of quality and reliability, productivity, and safety, while making products and services affordable. The standards help facilitate international trade.
Two of the most well-known of these are ISO 9000 and ISO 14000. ISO 9000 pertains to quality management. It concerns what an organization does to ensure that its products or services conform to its customer’s requirements. ISO 900 is a set of international standards on quality management and quality assurance, critical to international business. Its standards include the following categories: System requirements Management requirements Resource requirements Realization of requirements Remedial requirements Eight quality management principles form the basis of the latest version of ISO 9000: 1.
A customer focus. 2. Leadership. 3. Involvement of people. 4. A process approach. 5. A system approach to management. 6. Continual improvement. 7. Use of a factual approach to decision making. 8. Mutually beneficial supplier relationships. ISO 14000 concerns what an organization does to minimize harmful effects to the environment caused by its operations. The standards for ISO 14000 certification bear upon three major areas: Management systems-?systems development and integration of environmental responsibilities into business planning. Operations-?consumption of natural resources and energy.