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

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introduction to quality

Introduction to Quality

Expanding the quality myth

Author:

Dr Rhys Rowland-Jones

session plan
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
the first question to ask what is quality
The first question to ask–What is Quality?

How would you describe what

“Quality” means?

quality
QUALITY
  • Degree to which a set of inherent characteristics fulfils requirements

ISO 9000:2000

phases of quality assurance

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

quality does not occur by accident
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
plan control act do improvement check
Plan

Control

Act & Do

Improvement

Check

The Demming Cycle W.Edwards Demming
some issues facing the quality profession
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?
some issues facing the quality profession9
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.
expressing dissatisfaction

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
customer feedback and word of mouth
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.
an approach to viewing quality slack et al 2004
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.
quality characteristics of goods and services
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.

internal and external benefits of quality
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

the iceberg theory how much is immediately visible

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

british standards on quality costs
British Standards on Quality Costs
  • BS 6143 Part 1
  • BS 6143 Part 2
  • Prevention Appraisal Failure Model (PAF)
  • Process Cost Model (PCM)
costs of quality failure defects are not free someone makes them and gets paid for the privilege
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
the economic costs of quality
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
slide19

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)

slide20

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?

slide21

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

quality management system
QUALITY MANAGEMENTSYSTEM

Management system to direct and control an organisation with regard to quality

ISO 9000:2000

purpose of iso 9001 2000
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.”

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