Lecture 1 Concept of quality.pptx Quality House

Concept of Quality basically comes under the umberalla of Total Quality Management and it basically represents thr concept of quality

1. Concept of Quality 1

2. Times have changed. Once it was just sufficient to provide a service without concern about efficiency, effectiveness and quality in service It is not enough just to provide a service, it must be demonstrated to be of sufficient quality. e.g. Mona lisa , Tajmahal Selling of railway ticket 2

3. Influences that have brought about increased concern for quality. Rise of consumer influence From seller market to buyer market Criteria that count in quality are defined by customers Only customers judge quality. All other judgments are essentially irrelevant 3

4. Quality can be a confusing concept, partly because people view quality in relation to different criteria based on their individual roles in the production – marketing value chain. R&D perception of quality Maintenance perception of quality Quality continues to evolve as the quality profession grows and mature Like a moving target--never reached 4

5. Quality initiatives focused initially on reducing defects / errors in products/services. Organizations realized that lasting improvement could not be accomplished without significant attention to the quality of management practices used on daily basis. 5

6. What is Quality Quality Concept 1: Fitness to Standard/specification Fitness to standard evaluates whether a product built as described in the manual passes the standard or designers intend. Crosby Definition ‘ Quality is Confirmance of requirement or specification’ To evaluate fitness to standard, companies sometimes use the concept of statistical quality control (SQC ), an approach the American quality W. E. Deming brought to Japan in the early 1950s. 6 Fitness to Standard

7. Fitness to standard used alone as a definition of quality has two weaknesses. The first is the notion that quality can be achieved through inspection. The second weakness of fitness to standard is its neglect of market needs. 7

8. Acting to correct this weakness brought leading Japanese companies to the next level of quality in the early 1960s. Quality Concept 2: Quality is Fitness to Use (by Juran ) 8 Fitness to Standard Fitness to Use This definition brought services also in the ambit of quality .

9. It is not easy to forecast the diverse usage of the market, as the following amusing example from Japan illustrates. A major appliance company made a new washing machine. However, there were many complaints about it from the customers living in rural areas. The company sent its engineers to the field to observe. They found that farmers were using the machines to wash the dirt off potatoes. Although such use wasn't prohibited by the manual, the machines weren't designed for such dense loads, and they would often break. When the manufacturer realized the use to which customers were actually putting the machines, the machine was redesigned to tolerate potato washing, and the machines returned to normal reliability. 9

10. Weakness of Fitness for Use: As was the case with fitness to standard, fitness to use is achieved by inspection. Further, if the company wants products that can be absolutely counted on to perform as expected, that is, to have high fitness to use, then inspectors must rigorously reject products that deviate from the standard . As shown in the curve on right , if higher quality is desired, the inspection limits must be narrowed so that even more items are rejected, which is even more costly. 10 Statistical Variation in Product Characteristics

11. 2. Another weakness of focusing on fitness to use is that use-based competitive advantage is uncertain If a company has clearly understood fitness to use (meeting the needs of users), it may gain a monopoly position, and can charge prices high enough to compensate for the higher cost of higher through inspection. Competitors offering equally good products for cheaper prices quickly spring up, eliminating the monopoly position and the ability to offset costs incurred during the inspection process. 11 Cost + profit → price

12. 12 Moving away from the high costs of "inspecting quality in " and toward "building quality in" brought leading companies in the world during the early 1970s to the next level of quality. Quality Concept 3: Fitness of Cost Fitness to Standard Fitness to Use Fitness of Cost

13. 13 Fitness of cost means high quality and low cost . These are the two most universal requirements for virtually all customers, products, and services. To achieve cost reduction while maintaining high quality (with no products outside the bounds), a business must reduce the variability of the production process, so that all units produced are already within the inspection limits and none have to be discarded

14. A company seeking 100 percent quality without selecting requires, feedback and correction at each step rather than just at the end of the production process. To achieve this level of quality, it must completely change the production system. Worker focus must shift from controlling the output through inspection to controlling the process . 14 P1 P2 P3 INSPECTION Product Inspection to In Process Inspection- Feedback at Each Production Step

15. Weakness of Fitness for Cost: Companies that have achieved the quality level of fitness of cost are producing highly reliable, functional products at low cost. But competitors can create similarly reliable and inexpensive products. Newly industrialized countries can copy their skills of fitness to standard and fitness to use but have much cheaper labor, yielding low cost. This happened to Japan in the 1980s. Korea, Hong Kong, and Taiwan adopted Japanese technology, but had labor costs that were only one-half or two-thirds the Japanese cost. For this weakness, the cure that leading Japanese companies began pursuing in a standardized way in the early 1980s was creating innovative products that would outsell competitors' products. This raised product quality to the next level. 15

16. 16 Quality Concept 4: Fitness to Latent Requirement Fitness to Standard Fitness to Use Fitness of Cost Fitness to Latent Requirement

17. Kano Diagram 17 Kano analysis classifies customer CTQs into three categories based upon the impact of the need on his satisfaction Unstated Needs Im p lied N ee d s Stated Needs Satisfaction Dissatisfaction Service Delivery

18. Implied Needs 18 Taken for Granted by Customer Lack of Delivery causes high Dissatisfaction Delivery does not cause Satisfaction Noticed only by its absence A D issa t isfier Example- B a s i c n e e d for a hosp i t a l is to h a v e qu a l if i ed doc t ors & s t a n d a rd equipment. At any restaurant, if we order sweet tea, and they bring it, they don‟t get any credit for it; if they bring unsweetened tea, we‟re unhappy .

19. Stated Needs 19 Demanded by Customer Delivery causes Satisfaction Lack of delivery causes Dissatisfaction Example – More mileage performance in a car Less waiting time in airport.

20. Unstated Needs 20 Not usually thought of by Customer Delivery causes high Satisfaction Lack of delivery does not cause dissatisfaction Noticed only by its presence / delivery A Sat i sfier Example – Internet access on a plane is not expected so will not upset if not present but will delight if it is.

21. 38 Shifting Needs 21 Del i ghters Stated Needs Implied Needs T i m e Over a period of time, Delighters become Stated Needs Over a period of time, Stated Needs become Implied Need

22. 22 Evolution of Company Integration Sales Support Market Research Design/Planning Production Market Totalize Fitness to Latent Requirement: Total Integration of Company Functions

23. 23 Continuing Evolution Production Issues . Two New Fitnesses Market Issues Fitness to Standard Fitness to Use Fitness of Cost Fitness to Latent Requirement Fitness of Corporate Culture Fitness for Social and Global Environment

24. Quality characteristics A physical or chemical property, a dimension, temperature, pressure, taste, smell or any other requirements used to define the nature of product is a quality characteristics 1 technological- length, diameter, viscosity 2 physiological- taste, odour, beauty 3 time oriented- reliability, maintainability, life 4 contractual- guarantee, safety 24

25. David A. Garvin Dimensions of Quality- Break Down the word Quality into Manageable parts to define quality niches to compete 25

26. Dimensions of quality for Product Meaning and Example Performance Primary Product characteristics, such as the brightness of the picture for TV, number and size of rooms in a house, number of rings before phone is answered etc. Features Secondary characteristics, added features, such as remote control, light on hand set of a phone. Conformance Meeting specifications or industry standards, workmanship. Greater the deviation from the intended value, the less satisfied the customer. Reliability Consistency of performance over time, average time for the unit to fail Durability Useful life, includes repair Service Resolution of problems and complaints, ease to repair ( Mean Time to Repair MTTR) Response Human – to-human interface, such as the courtesy of the dealer Aesthetics Sensory characteristics, such as exterior finish-most subjective Reputation/ Perceived Quality Past performance and other intangible, such as being ranked first-subjective 26

27. Examples of Quality Dimensions 9- 27

28. Examples of Quality Dimensions (Cont’d) 9- 28

29. Examples of Service Quality Dimension Examples 1. Convenience Was the service center conveniently located? 2. Reliability Was the problem fixed? 3. Responsiveness Were customer service personnel willing and able to answer questions? 4. Time How long did the customer wait? 5. Assurance Did the customer service personnel seem knowledgeable about the repair? 6. Courtesy Were customer service personnel and the cashier friendly and courteous? 7. Tangibles Were the facilities clean, personnel neat? 9- 29

30. Challenges with Service Quality Customer expectations often change Different customers have different expectations Each customer contact is a “moment of truth” Customer participation can affect perception of quality Fail-safe must be designed into the system 30

31. Three Aspects Associated with Quality 31

32. Evolution of Quality Management 32

33. Quality be Produced or Inspected ? 33

34. Detection means the confirmation (Inspection) of the results or sorting of Good or Bad parts after the event has taken place or after the defectives are produced . It results in losses of resources like Man, Material, Machine & Method. Option –’I’ 34

35. Is 100 % inspection of the parts a solution to the problem ? 35

36. Lets Examine…..by Counting ‘e’ in the paragraph. 36

37. “ The learning is understood as the relation between humans and work tasks and not just the once acquired knowledge and set of skills that are required to perform a specific task.In this era of tough competition, training is a means by which we can excel in specific are as to have an edge over our competitors. Therefore each individual attending the training program should share the learning with others so that the huge capital invested by the company on the employees for their growth does not become an overhead.” Exercise of 100 % Inspection 37

38. “Th e l e arning is und e rstood as th e r e lation b e tw ee n humans and work tasks and not just th e onc e acquir e d knowl e dg e and s e t of skills that ar e r e quir e d to p e rform a sp e cific task.In this e ra of tough comp e tition, training is a m e ans by which w e can e xc e l in sp e cific ar e as to hav e an e dg e ov e r our comp e titors. Th e r e for e e ach individual att e nding th e training program should shar e th e l e arning with oth e rs so that th e hug e capital inv e st e d by th e company on the e mploy ee s for th e ir growth do e s not b e com e an ov e rh e ad.” Exercise of 100 % Inspection 38

39. What shall be done * Focus Input and Thru – put and not on OUT PUT * Change paradigm Inspection Orientation Process Orientation to OPTION-II -IITION II 39

40. Four levels of evolution of Quality Management Level One Inspection – characteristics of a product are inspected, measured or tested and compared with specified requirements to assess its conformity. This is done mainly by staff employed to carry out this task, and it does not involve the production workers . Non-conforming parts are scrapped or returned for reworking . 40

41. Separation of Production & Quality departments led to indifference to quality concluding that quality was the responsibility of quality department only . 41

42. Level Two Quality Control The same emphasis on inspection but involving the production workers & feedback systems to the production line so that the production process can be modified to produce conforming goods Ownership of responsibility 42

43. Level Three Quality Assurance Systematic and planned actions to produce conforming articles, internal audit and external evaluation to ensure continued quality. Systems of quality assurance would be specified and followed, and their implementation monitored QA still restricted to product line only 43

44. Level Four Total Quality Management The application of quality management procedures to all aspects of the business, including policy setting, strategy, organizational structure and culture. Involvement of all 44

45. TOTAL QUALITY MANAGEMENT TOTAL : For all Functions : For all Levels : For all Business Processes QUALITY : Of Systems : Of Procedures : Of Products / Services MANAGEMENT : By all Employees : By Process Ownership : By Measuring / Analyzing : By Improving / Controlling 45

46. Need for quality Increased productivity Reduced cost of repairs Increases loyal customer base Better profits 46

47. Key Contributors to Quality Management 9- 47