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Quality Management. Define quality. Identify the Costs of Quality. Describe the principles of Total Quality Management. Warm-up. In your opinion, which company produces the highest quality jeans? What makes these clothes “high quality?”. Defining Product Quality.

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quality management

Quality Management

Define quality.

Identify the Costs of Quality.

Describe the principles of Total Quality Management

warm up
Warm-up

In your opinion, which company produces the highest quality jeans?

What makes these clothes “high quality?”

defining product quality
Defining Product Quality
  • Conforms to specifications – works as designed
    • Measurable, but not tied to customer’s idea of quality
  • Fitness for use - product does what its supposed to do
    • Meets needs of targeted market segments.
  • Value for Price Paid – product’s usefulness is tied to the price paid by customer
    • Assumes quality is price sensitive
defining product quality1
Defining Product Quality
  • Support Services – support provided after customer’s purchase
    • Business’s product and its collection of people, processes, organization
  • Brand – quality expectation to marketer
    • Environment, staff, brand, etc.
choose a product define quality
Choose a Product & Define Quality

Conforms to specifications

Fitness for use

Value for Price

Support Services

Brand

quality for manufacturing vs service organizations
Quality for Manufacturing vs. Service Organizations

Manufacturing

Service

  • Tangible product features
    • Conformance
    • Performance
    • Reliability
    • Features
    • Durability
    • Serviceability
  • Customer’s experience
    • Responsiveness
    • Courtesy & friendliness
    • Promptness
    • Atmosphere
    • Time
    • Consistency
the cost of quality
The Cost of Quality

Quality Control

Quality Failure

  • Achieving high quality
    • Prevention – preventing defects (planning, product & process design, employee training)
    • Appraisal - uncovering defects ( labor & equipment for inspections and testing)
  • Consequences of poor quality
    • Internal – discovered before product reaches customer (rework, scrap costs)
    • External – discovered by customer
      • Complaints
      • Returns & Repairs
      • Warranty Claims
      • Recalls
      • Litigation
      • Lost sales & customers
cost of quality problems
Cost of Quality Problems

Cost of Problem

Product

Design

Product

Production

Customer

Site

Location of Defect

importance of quality
Importance of Quality
  • Competition based on quality
    • Customer first  meet or exceed expectations
    • Proactive rather than Reactive
      • Quality built into the product & process design
total quality management tqm
Total Quality Management (TQM)
  • Focus = identify causes of quality problems & correct at source
  • Principles;
    • Customer Focus: meet & exceed their expectations
    • Continuous Improvement: never ending improvement (small steps vs. large)
    • Employee Empowerment:everyone involved in process& decision making
    • Use of Quality Tools = e.g. Six Sigma.
    • Product Design: meeting & exceeding customer expectations
    • Process Management = quality is built into process
    • Manage Supplier Quality: standard’s extend to suppliers
how to implement tqm
How to Implement TQM?
  • Create genuine “quality culture”
    • Down : Executive (“C” level) management  Front-line workers  Consumer
    • Up: Reach into supply chain
  • Define process to identify customer’s definition of quality
    • Ways to listen to customers
    • Collecting & analyzing customer feedback
    • Prioritizing customer needs
  • Set target key performance indicators (KPI’s)
  • Implement quality control
    • Measure performance against KPI’s.
  • Introduce improvements
lean production tqm
Lean Production& TQM
  • Reducing production costs & improving quality
    • Eliminate “Waste”
summary
Summary
  • Integral part of business activity
  • Crucial for maintaining customer loyalty
  • Vital in determining profitability & success
  • Organizational impact
    • Requires flatter & flexible structure
    • Empower all employees
    • Involves entire organization in a continuous process