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Dale H. Besterfield 3/e
2Hafiz ghufran([email protected])
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3
Buying a QualityProduct?
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4
Who Is Better?
McDonald
or
KFC
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Who Is Better?
5
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6
What is Quality?
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Defining Quality Quality is a predictable degree of uniformity and
dependability, at low cost and suited to themarket
Deming
Quality is fitness for use
Juran
Quality is conformance to requirementsCrosby
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Defining Quality
The degree to which a set ofinherentcharacteristicsfulfills requirements.
ISO 9000:2000
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Quality can be QuantifiedQ = P/E
Where Q = QualityP = Performance
E = Expectations
If Q is greater than 1.0, then the customer has a goodfeeling about the product or service.
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8 Dimensionsof
Product Quality10
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5 Dimensionsof
Service Quality12
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Reliability
Assurance
Tangibility
Empathy
Responsiveness
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Historical Review
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Changing focus of Quality
Management
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M
A
N
U
F
A
C
T
U
R
E
R
Customer
Reject
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M
A
N
U
F
A
C
TU
R
E
R
Customer
Choices
M
A
N
U
F
A
C
TU
R
E
R
M
A
N
U
F
A
C
TU
R
E
R
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M
A
N
U
F
A
C
TU
R
E
R
Customer
Reject
M
A
N
U
F
A
C
TU
R
E
R
M
A
N
U
F
A
C
T
U
R
E
R
M
AN
U
F
A
C
TU
R
E
R
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M
A
N
U
F
A
C
TU
R
E
R
Customer
Reject
QC
Reject
M
A
N
U
F
A
C
TU
R
E
R
M
A
N
U
F
A
C
TU
R
E
R
M
AN
U
F
A
C
TU
R
E
R
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M
ANUF
AC
TURER
Customer
Reject
MarketingProduction
PlanningBuying Storage
Manufacturing
Sales
Reject
Self QCSelf QC
Self QC Self QC
Self QC
Self QC
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M
ANUF
AC
TURER
Customer
MarketingProduction
PlanningBuying Storage
Manufacturing
Sales
HR Finance Engineering
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Introduction
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Quality is not just the babyof Quality
or Laboratory Department
PURCHASE STORE ENGINEERING PRODUCTION DISPATCH MARKETING
Total Quality
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Total Quality ManagementAnalyzing the three words, we have:
Total: Made up of the whole Quality: Degree of Excellence a product or service
provides
Management: Act, art or manner of planning,
organizing, leading, staffing and controlling.
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Total Quality Management
So we can say that Total Quality Management is theart of managing the whole to achieve excellence.
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TQM Defined
An integrated effort designed to improve qualityperformance at every level of the organization.
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The Goal is
Doing it right the first time and every time.
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Basic Approach: QM Principles
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Top Management Commitment
Supplier Partnership
Continuous ProcessImprovement
Performance Measures
Employee Involvement
Customer Focus
Top Management Commitment
Employee Involvement
Customer Focus
Supplier Partnership
Continuous ProcessImprovement
Performance Measures
Top Management Commitment
Employee Involvement
Customer Focus
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Awareness about TQM Awareness comes about when an organization:
Loses profitability, market share or,
Realizes that quality and productivity go hand-in-hand or,
When it is the requirement of the customer toimplement it or,
When management realizes that TQM is a betterway to run business and to compete in domesticand world markets.
Japanese learned this from practical experience.29
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Quality as a competitive advantage Competitive advantage is the firms ability to
achieve superiority over its competitors.
Michael Porter suggested two main sources ofcompetitive advantages:
Cost leadership Differentiation
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The acceptance inspection model
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Process
Inspection
Pass theinspection?
Acceptance
Next process
Repair, rework,scrap, reject
No
Yes
Acceptance
Sampling
Ob l i l TQM
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Obstacles to implement TQM
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Inability to change organizationalculture
Lack of Management Commitment
Improper planning
Lack of continuous training andeducation
Incompatible organizational structureand isolated individuals and
departments
Ineffective measurement techniquesand lack of access to data and results
Paying inadequate attention to internaland external customers
Inadequate use of empowerment andteamwork
Failure to continually improve
B fi f i l i TQM
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Benefits of implementing TQM
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Increased employee participation
Improved Quality of products andservices
Improved Teamwork
Better working relationships
Increased customer satisfaction
Improved employee satisfaction
Increased productivity
Better communication
Increased profitability and market share
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Additional notesASQ- American Society for Quality
PIQC- Pakistan Institute of Quality Control
Both organizations, through their publications,conferences and training sessions, have promotedthe use of quality for all types of manufacturing
and services concerns in America and Pakistanrespectively.
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Some words about Quality! Quality is a continuous journey and hence not a
destination.
Quality is everybodys business.
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