Introduction

Definition of Quality
A degree of excellence
Fitness for purpose
Totality of features and characteristics that
bear on the ability of a product or service
to satisfy a given need

Definition of Quality
Total composite product and service
characteristics of marketing, engineering,
manufacture, and maintenance through
which the product and service will meet
the expectations of the customer
Conformance to requirements

Definition of Quality
A dynamic state associated with products,
services, people, processes, and
environments that meets or exceeds
expectations and helps produce superior
value
Meeting or exceeding customer
expectations

Definition of Quality
Defined by the customer, and as such will
change over time, often in unpredictable
ways.
Associated with creating customer value.
A quality good or service meets or
exceeds the whole range of customer
expectations, some of which may be
unspoken.

Quality and You

Quality can only be addressed by the
whole organization working together.

Manufactured Products
1. Performance
basic operating characteristics of a product;
how well a car handles or its gas mileage

2. Features
extra items added to basic features, such as
a stereo CD or a leather interior in a car

Manufactured Products
3. Reliability
probability that a product will operate properly
within an expected time frame; that is, a TV
will work without repair for about seven years

4. Conformance
degree to which a product meets pre
established standards

Manufactured Products
5. Durability
how long product lasts before replacement;
with care, L.L.Bean boots may last a lifetime

6. Serviceability
ease of getting repairs, speed of repairs,
courtesy and competence of repair person

Manufactured Products
7. Aesthetics
how a product looks, feels, sounds, smells, or
tastes

8. Safety
assurance that customer will not suffer injury
or harm from a product; an especially
important consideration for automobiles

Manufactured Products
9. Perceptions
subjective perceptions based on brand name,
advertising

Toyota
Bought cars from Mercedes, Jaguar and
BMW
Put them to grueling test runs
Took them apart
Match performance, reliability and luxury
Result: smaller drag coefficient, lighter
weight, fuel efficient, lower noise level,
sturdier materials for seats, more torque.

Conformance to Specifications
Specifications are targets and tolerances
determined by designers of products and
services
Targets are ideals values that production
strives
Tolerances are acceptable deviations from
ideal values

Quality In Services
In Japan, customers are honored guests
On time arrival for airlines
Banks and hotels customer greeting
specications
Most service companies tend to be
product oriented than service oriented
Examples: Hotel beddings

Dimensions of Quality in Services

1. Time and timeliness
how long must a customer wait for service,
and is it completed on time?
is an overnight package delivered overnight?

Dimensions of Quality in Services

2. Completeness:
is everything customer asked for provided?
is a mail order from a catalogue company
complete when delivered?

3. Courtesy:
how are customers treated by employees?
are catalogue phone operators nice and are
their voices pleasant?

Dimensions of Quality in Services

4. Consistency
is same level of service provided to each
customer each time?
is your newspaper delivered on time every
morning?

Dimensions of Quality in Services

5. Accessibility and convenience
how easy is it to obtain service?
does service representative answer you calls
quickly?

6. Accuracy
is service performed right every time?
is your bank or credit card statement correct
every month?

Dimensions of Quality in Services

7. Responsiveness
how well does company react to unusual
situations?
how well is a telephone operator able to
respond to a customers questions?

Note
Must look beyond product orientation
Pay attention to customer transactions and
employee behavior.
Quality characteristics that a rm should
control may not be the obvious ones.
Customer perceptions may be difficult to
dene

Note
Behavior is a quality characteristic.
Quality of human interaction is vital to
human transaction.
Image shapes customer expectations
Breakdown in image can be as bad as
breakdown in delivery
Measuring service levels can be difficult.
Subjective and quantitative data is hard to
obtain

Differences Between Manufacturing and

Services
Customer needs and performance
standards are often difficult to identify and
measure
The production of services typically
requires a higher degree of customization
The output of many service systems is
intangible
Services are produced and consumed
simultaneously
22

Differences Between Manufacturing and

Services
Customers often are involved in the
service process and present while it is
being performed
Services are generally labor intensive
Many service organizations must handle
very large numbers of customer
transactions.

23

Approaches to Quality

Transcendent

Manufacturing

views quality as synonymous with

innate excellence

assumes quality is all about making and

providing error-free products

Approaches to Quality
User Based

Product
Based

assumes quality is all about

providing products or services that
are fit for their purpose

views quality as a precise and

measurable set of characteristics

Approaches to Quality

Value
Based

Satisfaction relative to price

Definition of Quality Management

There is no simple definition
Quality is the end point,
Quality Management is the approach and
process for getting there.

Central To Quality Management

Definition

Customer Focus
Strategic Focus
Leadership Focus
Process Focus
People Focus

Scientific Focus
Continual
Improvement,
Innovation and
Learning
Systems Thinking

Customer Focus

Customer is the principal judge of quality

Organizations must build relationships with
customers and increase customer
engagement
Organizations must understand customer
needs and obtain feedback
Customers are internal and external

Customer-Focused Practices
1. Researching and understanding customer
needs and expectations;
2. Ensuring that goods and services are
linked to customer needs and
expectations;
3. Communicating customer needs and
expectations throughout the organization;

Customer-Focused Practices
4. Measuring customer satisfaction and
using the results to improve;
5. Systematically managing customer
relationships;
6. Ensuring a balanced approach between
satisfying customers and other
stakeholders

Leadership
Responsibility of top management
Senior leaders should be role models for
the entire organization
An organization cannot sustain quality
initiatives without strong leadership

Leadership Practices
1. Consider the needs of all stakeholders in
decisions;
2. Establish a clear vision of the
organization s future;
3. Set challenging goals and targets;
4. Create and sustain shared values,
fairness, and ethics at all levels of the
organization;

Leadership Practices
5. Establish trust and eliminate fear;
6. Provide workers with adequate
resources, training and freedom to make
customer-focused decisions;
7. Inspire, encourage, and recognize
worker s contributions.

Involvement of People
A company s success depends
increasingly on the knowledge, skills, and
motivation of its workforce.
Empowerment having the authority to
make decisions
A sincere belief and trust in people

Involvement of People: Engagement

Workers have a strong emotional bond to
their organization,
Actively involved in and committed to their
work,
Feel that their jobs are important,
Know that their opinions and ideas have
value,
Go beyond their immediate responsibilities
for the good of the organization

People-Focused Practices
1. Understand the key factors that drive
workforce engagement, satisfaction, and
motivation
2. Design and manage work and jobs to
promote engagement
3. Create an environment that ensures and
improves workplace health, safety, and
security
4. Develop an effective performance
management system

People-Focused Practices
5. Assess workforce engagement and
satisfaction
6. Assess workforce capability and capacity
needs
7. Make appropriate investments in
development and learning
8. Manage career progression and
succession planning

Teamwork
Verticalteamwork between top
management and lower-level employees.
Horizontalteamwork within work groups
and across functional lines (often called
cross-functional teams).
Inter-organizationalpartnerships with
suppliers and customers

Cross-functional Perspective

Process Approach

A process is a sequence of activities that

is intended to achieve some result

Process-Focused Practices
1. Define processes that create desired
outcomes;
2. Establish clear responsibility and
accountability for managing key processes;
3. Analyze and measure of the capability of
processes;
4. Identify the interfaces of key activities within
and between the functions of the
organization;

Process-Focused Practices
5. Focus on the factors such as resources,
methods, and materials that will improve
processes; and
6. Evaluate risks, consequences and
impacts of activities on customers,
suppliers, and other stakeholders.

SYSTEMS APPROACH TO
MANAGEMENT

Synthesis
Looking at an organization as a whole and
building on key business attributes,
including core competencies, strategic
objectives, action plans, and work
systems.

Alignment
Ensuring consistency of plans, processes,
measures, and actions across the
organization.

Integration
Builds on alignment, so that the individual
components of the organizational system
operate in a fully interconnected manner
and deliver anticipated results.

Systems Approach Practices

1. Designing the organization to achieve its
objectives in the most effective and
efficient way;
2. Understanding the interdependencies
between processes;
3. Developing approaches that harmonize
and integrate processes;

Systems Approach Practices

4. Providing a clear understanding of the
roles and responsibilities necessary for
achieving objectives and reducing crossfunctional barriers;
5. Understanding organizational capabilities;
defining how specific activities and
processes should operate; and
6. Continually improving the system through
measurement and evaluation.

Continual Improvement
Incremental and breakthrough
improvement
Enhance value to the customer through
new and improved products and services;
Improve productivity and operational
performance through better work
processes and reductions in errors,
defects, and waste;

Continual Improvement
Improve flexibility, responsiveness, and
cycle time performance; and
Improve organizational management
processes through learning

Definition of TQM?
A process of creating an environment in
which management and workers strive to
create constantly improving quality.
A management philosophy and company
practices that aim to harness the human
and material resources of an organization
in the most effective way to achieve the
objectives of the organization.

Definition of TQM?
A philosophy for managing an organization
in a way which enables it to meet
stakeholder needs and expectations
efficiently and effectively, without
compromising ethical values

Definition of TQM?
A management approach to long-term
success through customer satisfaction.
All members of an organization
participating in improving processes,
products, services and the culture in which
they work.

Definition of TQM?
The methods for implementing this
approach are found in the teachings of
such quality leaders as Philip B. Crosby,
W. Edwards Deming, Armand V.
Feigenbaum, Kaoru Ishikawa and Joseph
M. Juran

Total Quality = Perfect Quality

The goal of producing perfect quality is
unrealistic, and therefore an unobtainable
goal
TQM does not mean that an organization
must seek perfection in all its products and
services.

Total Quality = Perfect Quality

Achieving the highest quality of service
and products possible, under the
circumstances for that organization.
Not a fixed goal that is achieved,
celebrated, and then forgotten;
A moving target, and the goal is to
constantly improve quality.

Is It Worth It?
The only limiting factor for implementation
of TQM is the commitment of people in the
organization.
TQM works where people want it to work.
It doesn't work where people don't
demonstrate resolve and commitment

Emphasis On Quality = TQM

Must become an integral part of
organizational culture.
TQM happens only when the vast majority
demonstrates a daily commitment to TQM
principles.

Emphasis On Quality = TQM

The difference between an "emphasis on
quality" and TQM is how much the TQM
philosophy is woven into the fabric of the
organization.
A quality emphasis is often temporary;
TQM is long term.

Words of Wisdom
By three methods we may learn wisdom:
First, by reflection, which is noblest;
Second, by imitation, which is easiest;
Third by experience, which is the
bitterest.

Early TQM
Centered on three basic concepts: tools,
training, and techniques.
The tools were the counting systems that
enabled manufacturing tolerances to
improve;
The training involved the level of quality
awareness by everyone in the organization;
The techniques were the methods to improve
the quality of products and services.

Today
Focusing on tools, training, and
techniques had only a limited impact on
quality
Organization's culture is defined by and
supports the constant attainment of
customer satisfaction through an
integrated system of tools, techniques,
and training.

Today
Involves the continuous improvement of
organizational processes, resulting in high
quality products and services.
It isn't a seminar or handbook on ways to
change an organization overnight.
It is management focused on customer
satisfaction.
Must be implemented as a process
throughout the organization.

Today
55% of U.S. rms use quality information
to evaluate performance monthly or more
frequently
70% of Japanese firms follow this practice
20% of U.S. firms review quality annually
or not at all
Comparable gure in Japan is 2 percent
and in Germany 9 percent

Customer Emphasis
In Japan, 58% of the businesses always
translate customer expectations into the
design of new products and services,
40% in Germany and 22% in the U.S.
Japanese rms also use technology twice
as much as US companies in meeting
customer expectations.

Process Improvement
Japan leads the other countries in the routine
use of process improvement methods.
47% of Japanese rms always use process
simplication, compared to 12 percent in the
U.S.
Japan does not organize the majority of its
workforce into quality related teams, but it
does have the highest rate of employee
participation in quality meetings

Process Improvement
21% of U.S. firms expect to increase the
number of employees in quality related
teams
51% of the U.S. firms plan to use quality
performance as a criterion for
compensating senior management.

Process Improvement
Ability of Japan to achieve world
competitiveness did not come from US
lack of quality improvement, but because
of Japanese higher rate of improvement.
Increase its quality improvement more
rapidly.
Not only the workplace, but also
education.

Process Improvement
American business schools are just
beginning to incorporate quality principles
into their curricula;
In Japan, elementary schools teach
statistical process control.

THE NEARER YOUR

DESTINATION, THE MORE
YOURE SLIP-SLIDING AWAY

WHAT TQM ISNT

Knowing what something is not helps one
to gain a better understanding of what it
really is.

TQM Is Not Just

Banners, posters and signs

Quality circles
Temporary quality campaigns
Management talk
Seminars and workshops
QC programs

P & Gs Superior Customer Satisfaction

Really know our customers and
consumers. Know those who resell our
products and those who finally use them and then meet and exceed their expectations.
Do right things right. This requires hard
data and sound statistical analysis to select
the right things and to direct continual
improvement in how well we do those things.

P & Gs Superior Customer Satisfaction

Concentrate on improving systems. In
order to achieve superior customer
satisfaction and leadership financial goals,
we must continually analyze and improve
the capability of our basic business
systems and sub-systems.

P & Gs Superior Customer Satisfaction

Empower people. This means removing
barriers and providing a climate in which
everyone in the enterprise is encouraged
and trained to make his or her maximum
contribution to business objectives.
The P&G Statement of Purpose captures
the what, how, and expected results of
their quality efforts.

P & Gs Statement of Purpose

We will provide products of superior
quality and value that best fill the needs of
the worlds consumers.
We will achieve that purpose through an
organization and a working environment
that attracts the finest people; fully
develops and challenges our individual
talents; encourages our free and spirited
collaboration to drive the business ahead;

P & Gs Statement of Purpose

And maintains the company's historic
principles of integrity, and doing the right
thing.
Through the successful pursuit of our
commitment, we expect our brands to
achieve leadership share and profit positions
that, as a result our business, our people, our
shareholders, and the communities in which
we live and work, will prosper.

QUALITY IS A MOVING TARGET.

AS WE IMPROVE, SO WILL OUR
COMPETITORS.