Quality Management Lecture 1.

1. Quality Management Lecture 1. Quality of Products and different perspectives on quality

2. Concept of quality 1 • Totality of features and characteristics of a product or service that bears upon its ability to satisfy spoken or latent needs. • Spoken need • Latent need (basic or innocative) • These needs can be • Objective (determined in contracts, or in standards) – easy to measure • Subjective (usefulness) – it belongs to the custemer

3. Concept of quality 2 • Nowadays it has a strategic definition, because it not just mean the quality of a product, but it : „It is a basic business strategy, which means that products and services should totally meet both internal and external customers stated and latent needs. • Quality is defined as meeting customers requirements

4. 5 Approaches to Defining Quality – Garvin 1 • The Transcendent Approach: a quality cannot be defined precisely, we learn to recognize it only through experience • Innate excellence • Pictures of Picasso:

5. 5 Approaches to Defining Quality - Garvin 2 • The Product-based Approach: quality is precise and measurable variable, products can be ranked – quality products have more attributes (computer with more memory)

6. 5 Approaches to Defining Quality - Garvin 3 • The Manufacturing-based Approach: products or services meet stated requirements, • Manufacturing and engineering practise - Quality is measured by the manufacturer’s ability to target the requirements consistently with little variability

7. 5 Approaches to Defining Quality - Garvin 4 • The User-based Approach: quality of a product is determined by the consumer. There is widely varying individual preferences;

8. 5 Approaches to Defining Quality - Garvin 5 • The Value-based Approach: quality is defined in costs and prices. How much is the benefit of the good or servce outweigh the cost? • Did the costumer get his or her money’s worth?

9. 8 Dimensions of product quality - Garvin • Performance – refers to a products’ primary operating characteristics • Features – „bells and whistles” added to a products • Reliability – probability that the product will not fail in a specific period of time (MTPF – mean time between failure) • Conformance – the degree to which a product or service meets its specifications • Durability – a measure of the product life • Serviceability – this is the speed, the competence and easy of repair • Aesthetics – how the product looks, feels, sounds, tastes and smells. This is clearly a matter of personal judgment • Perceived quality – images, advertising, and brand names can be critical to give information about the product quality

10. KANO-model • Attractive quality • One-Dimensional quality • Must-Be quality • Indifferent quality • Reverse quality

11. KANO-model

12. Four level of quality • Fitness for standards • Fitness for use • Fitness for market • Fitness for latent requirements

13. Differring functional perspectives • Supply chain perspective • Engineering perspective • Operation perspective • Strategic perspective • Marketing perspective • Financial perspective • Human resource perspective

14. Supply Chain perspective • Upstream activities • Supplier qualification • Supplier filters • Supplier developement • Acceptance sampling • Core process activities • Value stream mapping • Six sigma • Downstream activities • After sale service

15. Engineering Perspective • Product desing engineering • Process design • Concurrent engineering • Life testing – reliability • Statistical Process Controll (SPC)

16. Operation Perspective • Management of activities • Focuse on quality problems caused by the system • Ferdows – Demeyer : sand cone model • Cost efficiency • Speed • Dependability • Quality

17. Strategic management perspective • planning process (mission, values, goals) • Strategic options, business level and functional level strategies • Ultimate goal: competitive advantage • Quality • Qualtiy and cost

18. Marketing • Sustomer satisfaction instead of volume of sales • Focuse on customer relationship instead of directiong flow of products • Increase percived quality by • Price • Advertisment • Role in product design

19. Financial • Deming value chain • Law in diminishing returns • Optimum level of quality improvement • against the ethic of continuous improvement Improve quality Cost decrease Productivity improves Capture the market Stay in business Provide more and more jobs

20. Human resource perspective • Commitment of employees for improvement: • Empowerment • Organisational design • Job analysis • Hiring • Performance evaluation

21. Thank You for Attention