Recent Issues in ManagementRecent Issues in Management

Dr. Syed Mohammad Tariq Zafar

Chapter 2 - Total Quality ManagementChapter 2 - Total Quality Management

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X Lecture OutlineX Lecture Outline

Meaning of QualityMeaning of Quality Importance of QualityImportance of Quality Dimensions of QualityDimensions of Quality Quality Movement in JapanQuality Movement in Japan Quality Gurus and their ContributionQuality Gurus and their Contribution TQM in Service CompaniesTQM in Service Companies Cost of QualityCost of Quality Tools of Quality ManagementTools of Quality Management

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Meaning of QualityMeaning of Quality

Webster’s DictionaryWebster’s Dictionary degree of excellence of a thingdegree of excellence of a thing

American Society for QualityAmerican Society for Quality totality of features and characteristics totality of features and characteristics

that satisfy customer needsthat satisfy customer needs Consumer’s and Producer’s Consumer’s and Producer’s

PerspectivePerspective

QUALITY Full FormQUALITY Full Form

Q – Quest for excellenceQ – Quest for excellence U – Understanding customers needU – Understanding customers need A - Action to achieve customers appreciation A - Action to achieve customers appreciation  L – Leadership determination to be a leaderL – Leadership determination to be a leader I – Involving all peopleI – Involving all people T – Team spiritT – Team spirit Y – Yardstick to measure progressY – Yardstick to measure progress

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X Meaning of Quality:X Meaning of Quality:Consumer’s PerspectiveConsumer’s Perspective

Fitness for useFitness for use how well product or how well product or

service does what it is service does what it is supposed tosupposed to

Quality of designQuality of design designing quality designing quality

characteristics into a characteristics into a product or serviceproduct or service

A Mercedes and a Ford are A Mercedes and a Ford are equally “fit for use,” but with equally “fit for use,” but with different design dimensionsdifferent design dimensions

X Meaning of Quality: X Meaning of Quality: Producer’s PerspectiveProducer’s Perspective

Products which are Products which are demanded regularly demanded regularly by customers due to by customers due to dimensions of dimensions of quality such as quality such as durability, Features, durability, Features, Performance etc.Performance etc.

Samsung MobilesSamsung Mobiles Toyota Toyota

AutomobilesAutomobiles

Every producer Every producer wants to give the wants to give the best to its customers.best to its customers.

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Dimensions of Quality:Dimensions of Quality:

Performance Performance basic operating characteristics of a product; how basic operating characteristics of a product; how

well a car is handled or its gas mileagewell a car is handled or its gas mileage Features Features

““extra” items added to basic features, such as a extra” items added to basic features, such as a stereo CD or a leather interior in a carstereo CD or a leather interior in a car

ReliabilityReliability probability that a product will operate properly probability that a product will operate properly

within an expected time frame; that is, a TV will within an expected time frame; that is, a TV will work without repair for about seven yearswork without repair for about seven years

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ConformanceConformance degree to which a product meets pre–established degree to which a product meets pre–established

standards. Car gives 15 Km per litre in actual.standards. Car gives 15 Km per litre in actual. DurabilityDurability

how long product lasts before replacement.how long product lasts before replacement. ServiceabilityServiceability

ease of getting repairs, speed of repairs, ease of getting repairs, speed of repairs, availability of parts, courtesy and competence of availability of parts, courtesy and competence of repair personrepair person

Dimensions of Quality:Dimensions of Quality:Manufactured Products (cont.)Manufactured Products (cont.)

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AestheticsAesthetics how a product looks, feels, sounds, how a product looks, feels, sounds,

smells, or tastessmells, or tastes Safety Safety

assurance that customer will not suffer assurance that customer will not suffer injury or harm from a product; an injury or harm from a product; an especially important consideration for especially important consideration for automobilesautomobiles

PerceptionsPerceptions subjective perceptions based on brand subjective perceptions based on brand

name, advertising, and the likename, advertising, and the like

Dimensions of Quality:Dimensions of Quality:Manufactured Products (cont.)Manufactured Products (cont.)

X Importance of QualityX Importance of Quality

Quality is important because it makes Quality is important because it makes sure products and services meet the sure products and services meet the required standard. It also encourages required standard. It also encourages consistency, competitive markets, consistency, competitive markets, reduced waste, ensures customer reduced waste, ensures customer satisfaction as well as increased satisfaction as well as increased revenues.revenues.

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X Quality Movement in JapanX Quality Movement in Japan

After the second world war, Japan decided to After the second world war, Japan decided to make quality improvement in production and make quality improvement in production and sought the help of Deming and Juran. In the sought the help of Deming and Juran. In the 1950s and 1960s, Japanese goods were 1950s and 1960s, Japanese goods were synonymous with cheapness and low quality, synonymous with cheapness and low quality, but over time their quality initiatives began to but over time their quality initiatives began to be successful, with Japan achieving very high be successful, with Japan achieving very high levels of quality in products from the 1970s levels of quality in products from the 1970s onward.onward.

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X Quality Movement in JapanX Quality Movement in Japan

For example, Japanese cars regularly top the J.D. For example, Japanese cars regularly top the J.D. Power customer satisfaction ratings. In the 1980s Power customer satisfaction ratings. In the 1980s Deming was asked by Ford Motor Company to start a Deming was asked by Ford Motor Company to start a quality initiative after they realized that they were quality initiative after they realized that they were falling behind Japanese manufacturers. A number of falling behind Japanese manufacturers. A number of highly successful quality initiatives have been invented highly successful quality initiatives have been invented by the Japanese (see for example on this by the Japanese (see for example on this page: Genichi Taguchi, QFD, Toyota Production page: Genichi Taguchi, QFD, Toyota Production System. Many of the methods methods are now System. Many of the methods methods are now adopted by the same western countries that decades adopted by the same western countries that decades earlier derided Japanese methods.earlier derided Japanese methods.

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