1. ADDIS ABABA MEDICAL AND
BUSINESS COLLEGE
DEPARTMENT OF INFORMATION
TECHNOLOGY
LEVEL IV
UC:- ESTABLISH QUALITY STANDARDS.
COMPILED BY: JALETO SUNKEMO
HNS Level IV
1
2. Establish Quality Standards
Level-IV
Contents
1. Establish Quality Specifications for Service
2. Identify Hazards & Critical Control Points
3. Assist in Planning of Quality Assurance
Procedure
4. Implement of Quality Assurance Procedure
5. Monitor quality of work outcomes
6. Participate in maintaining & improving quality at
work
7. Report problems that affect quality
2
3. Defining Quality
The British Standard Institution (BSI) defines quali
ty as “
the totality of features and characteristics of
products or service that bear on its ability to
satisfy stated or implied needs. (BSI, 1991).
The standard of something as measured against
other things of a similar kind.
A distinguishing characteristic or property.
Degree of excellence, especially a high standard
of a thing.
Having or showing excellence or superiority.
3
4. Cont…
“The degree to which a system, component, or process
meets
(1) specified requirements, and
(2) customer or users needs or expectations” – IEEE
The totality of features and characteristics of a product
or service that bears on its ability to satisfy stated or
implied needs” – ISO 8402
Degree to which a set of inherent characteristics fulfils
requirements – ISO 9000:2000
4
5. Quality in IT and Manufacturing
Sectors
In an information technology product
or service, quality is sometimes
defined as ‘Meeting the requirements
of the customer.’
In Manufacturing, Quality is a
measure of excellence or a state of
being free from defects.
5
6. Approaches to Defining
Quality
Green & Harvey (1993) identified five
approaches to defining quality:
1. In terms of exceptional (exceeding high standards and p
assing a required standard);
2. In terms of consistency (exhibited through “
zero defect
s” and “
getting right the first time, making quality a
culture);
3. As fitness for purpose (meaning the product or service mee
ts the stated purpose, customer specification & satisfaction);
4. As value for money (through efficiency and effectiveness);
&
5. as transformative (in term of qualitative change).
6
7. Various Definitions of Quality
These different notions of quality have led Reeves
and Bender (1994) to conclude “
…
the search for a
universal definition of quality and a statement of
law like relationship has been unsuccessful.
Garvin (1988) classified them into five major
groups:
1. Transcendent (Inspiring) definitions.
These definitions are subjective and personal.
They are eternal but beyond measurement
and logical description. They are related to
concepts such as beauty and love.
7
8. Cont…
2.Product-based definitions
Quality is seen as a measurable variable.
The basis for measurement is objective
attributes of the product.
3.User-based definitions
Quality is a means for customer satisfactio
n. This makes these definitions individual and
partly subjective.
8
9. Cont…
4. Manufacturing-Based Definitions
Quality is seen as conformance to require
ments and specifications.
5. Value-Based Definitions
These definitions define quality in relation to c
osts. Quality is seen as providing good value
for costs (Largosen et al, 2004).
9
10. Central Ideas of Quality
Quality has a few central ideas aro
und which
the whole concept revolves:
Quality as Absolute,
Quality as Relative,
Quality as a Process, and
Quality as Culture.
10
11. Quality as Absolute
When we consider quality as absolute, it is given
and considered as the highest possible standard.
For example the picture of ‘
Mona Lisa”
by Da Vinc
i, the Egyptian Pyramids and the Taj Mahal are
works of high standards and quality.
In product terms, they are attached with high ‘
bra
nd’ values,
status and positional advantages.
Educational institutions such as Oxford, Cambrid
ge & Stanford in the west have this absolute
quality standard, though in the case of education
it might still be perceptual.
11
13. Quality as Relative
Quality as relative suggests that the quality of
a product or service can be described in
relative terms.
Quality here can be measured in terms of
certain specifications.
According to Kupper (2005) the observance to
product specification is actually the minimum
condition for quality, but not the sufficient
condition. The sufficient condition is customer
satisfaction and beyond.
13
14. Quality as a Process
Quality as a process’ suggests tha
t in order to achieve quality of a p
roduct or service, it must undergo
certain processes and conform to the
procedural requirements.
Thus, quality is the outcome of
systems and procedures laid down
for the purpose.
14
15. Quality as Culture
Quality as a culture recognizes the
importance of the organizational view of
quality as a process of transformation, where
each entity is concerned and acknowledges
the importance of quality.
15
16. Why Worry about Quality?
In 1887 William CooperProcter noted that the
profitability of an organization is determined by
three critical factors, i.e.
i. Productivity,
ii. Cost of operations, &
iii. Quality of Products or Services.
Therefore, to be profitable we need to produce
Quality products and services.
16
17. Some of the reasons are:
1. Competition(ውድድር)
We are entering a new system, where competi
tion among industries and service providing
organizations are high, with globalization the
manufacturing and service providing
environment will be seized by increased
competition.
In order to survive in such a situation, we
need to worry about the quality of the product
we produce and the service we provide.
17
18. Cont…
2. Customer Satisfaction(የደንበኛ እርካታ)
Customers are now highly conscious of their
rights or getting value for their
money and time spent.
They are now demanding good quality product
s and services.
3. Maintaining Standards(ደረጃዎችን መጠበቅ)
Any organization are always concerned about
setting its own standard and maintaining it
continuously years after years.
In order to maintain the standards, they should
consciously make efforts to improve quality of
their product and service.
18
19. Cont…
4. Accountability(ተጠያቂነት)
Every institution is accountable to its stakehol
ders in terms of the funds (public or Private)
used on it.
Concern for quality will ensure accountability
of the funds utilized and inform the
stakeholders about taking appropriate
decisions.
Thus, quality can be considered as a
monitoring mechanism.
19
20. Cont…
5.
Improve Employee Morale & Motivation(የሰራተ
ኛ ሞራል እና ተነሳሽነት ያሻሽሉ)
Your concern for quality as an institution will
improve the morale and motivation of the staff in
performing their duties and responsibilities.
If a quality system is in place, the internal
processes would be systematic making every
department complementing each others service
domain and helping in developing internal
customer satisfaction leading to high morale
and motivation.
20
21. Cont…
6. Credibility and Status(ተዓማኒነት እና ሁኔታ)
If you are concerned about quality, continuously
& not once in a while, it will bring in credibility to
individuals and your institution because of
consistency leading to practice, status and brand
value.
7. Image and Visibility(ምስል እና ታይነት)
Quality institutions have the capacity to attract bett
er stakeholder support, like getting increased
donations/ grants from funding agencies.
Helps to get qualified and competent employees
easily.
21
22. Quality In different Sectors
Manufacturing Organization
The branch of manufacture and trade based on the
fabrication, processing, or preparation of products
from raw materials and commodities.
This includes all foods, chemicals, textiles,
machines, Electronic Manufacturers and Computer
Manufacturing equipment.
Service Providing organization
A service is something that the public needs, such
as transport, communications facilities, hospitals, or
energy supplies, which is provided in a planned and
organized way by the government or an official
body.
22
23. Quality in Different
Organizations
Area Examples
Airlines On-time, comfortable, low-cost service
Health Care
Correct diagnosis, minimum wait time, lower
cost, security
Food Services Good product, fast delivery, good environment
Postal Services fast delivery, correct delivery, cost containment
Academia
Proper preparation for future, on-time
knowledge delivery
Consumer Products Properly made, defect-free, cost effective
Insurance Payoff on time, reasonable cost
Military Rapid deployment, decreased wages, no graft
Automotive Defect-free
Communications Clearer, faster, cheaper service 23
24. Quality Perspectives
The meaning of quality can be seen
from different perspectives
Consumer’s Perspective &
Producer’s Perspective
24
25. Consumer’s Perspective of a
Product
1. Fitness for use: How well product or service
does what it is supposed to.
2. Quality of design: Designing quality
characteristics into a product or service. A
Mercedes and a Ford are equally “fit for use,”
but with different design dimensions.
3. Performance: Basic operating characteristics of
a product; how well a car is handled or its gas
Usage.
4. Features: “Extra” items added to basic features,
such as a stereo CD or a leather interior in a
car.
25
26. Cont…
5. 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.
6. Conformance: Degree to which a product meets
pre–established standards.
7. Durability: How long product lasts before
replacement.
8. Serviceability: Ease of getting repairs, speed of
repairs, courtesy and competence of repair person.
9. Aesthetics: How a product looks, feels, sounds,
smells, or tastes.
26
27. Cont…
10. Safety: Assurance that customer will not suffer
injury or harm from a product; an especially
important consideration for automobiles.
11. Perceptions: Subjective perceptions based on
brand name, advertising, and the like.
27
28. The Eight Dimensions of Product
Quality
No DIMENSION DEFINITION
1. Performance
The primary operating characteristics of a
product.
2. Features
The “bells and whistles” of a product (i.e.,
those characteristics that supplement the
basic functions).
3. Reliability
The probability that a product will fail within a
specified period of time.
4. Conformance
The degree to which the design or operating
characteristics of a product meet pre-
established standards.
5. Durability
The amount of use a product can sustain
before it physically deteriorates to the point
where replacement is preferable to repair.
6. Serviceability
The speed, courtesy, competence, and ease
of repair.
7. Aesthetics
The look, feel, taste, smell, and sound of a
product.
8. Perceived Quality
The impact of brand name, company image,
and advertising.
28
29. Producer’s Perspective of a Product
Quality of Conformance: Making sure
a product or service is produced
according to design.
If new tires do not conform to specifications,
they wobble.
If a hotel room is not clean when a guest
checks in, the hotel is not functioning
according to specifications of its design.
29
30. A Final Perspective
Consumer’s and producer’s Perspectives
depend on each other.
Consumer’s perspective: Price vs.
Quality
Producer’s perspective: Cost vs.
Quality
Consumer’s view must dominate
30
31. Service Quality
Service Quality(SQ): is a comparison of
perceived expectations (PE) of a service with
perceived performance (PP), giving rise to the
equation SQ=PP-PE.
A business with high service quality will meet
or exceed customer expectations whilst
remaining economically competitive.
31
32. Dimensions of Service Quality
1. Time
How long must a customer wait for service, and is it completed on
time?
Is an overnight package delivered overnight?
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?
4. Consistency
Is the same level of service provided to each customer each time?
Is your newspaper delivered on time every morning?
32
33. Cont…
5. Accessibility and Convenience
How easy is it to obtain service?
Does a service representative answer you calls quickly?
6. Accuracy
Is the service performed right every time?
Is your bank or credit card statement correct every month?
7. Responsiveness
How well does the company react to unusual situations?
How well is a telephone operator able to respond to a
customer’s questions?
Asking the right questions, suggesting only what is right for
the customer, and not promising what you can't deliver.
33
34. The Seven Dimensions of Service
Quality
No DIMENSION DEFINITION
1. Time & Timeliness Customer waiting time. On-time completion.
2. Completeness Customers get all they ask for.
3. Courtesy Treatment by employees.
4. Consistency Same level of service for all customers.
5.
Accessibility &
Convenience
Ease of obtaining service.
6. Accuracy Performed correctly every time.
7. Responsiveness Reaction to special circumstances or requests.
34
35. Service Recovery
Each customer contact is called a moment of
truth. You have the ability to either satisfy or
dissatisfy them when you contact them.
A Service Recovery is satisfying a previously
dissatisfied customer and making them a loyal
customer.
There are four types of service recovery
Approaches.
35
36. Approaches to Service Recovery
1. Case-by-Case: addresses each customer’s
complaint individually but could lead to
perception of unfairness.
2. Systematic Response: uses a protocol to
handle complaints but needs prior identification
of critical failure points and continuous
updating.
3. Early Intervention: attempts to fix problem
before the customer is affected.
4. Substitute Service: allows rival firm to provide
service but could lead to loss of customer.
36
37. Service Quality Assessment
Word of
mouth
Personal
needs
Past
experience
Expected
service
Perceived
service
Service Quality
Dimensions
Time & Timeliness
Completeness
Courtesy
Consistency
Accessibility &
Convenience
Accuracy
Responsiveness
Service Quality Assessment
1. Expectations exceeded
ES<PS (Quality surprise)
2. Expectations met
ES~PS (Satisfactory quality)
3. Expectations not met
ES>PS (Unacceptable quality)
37
38. Server(Service Provider) Vs Customer
Errors
Server Errors Customer Errors
Task:
Doing work incorrectly
Preparation:
Failure to bring necessary
materials
Treatment:
Failure to listen to
customer
Encounter:
Failure to follow instructions
Tangible:
Failure to clean
Resolution:
Failure to learn from experience
38
39. Expressing Dissatisfaction
Dissatisfaction
occurs
Action
No Action
Public Action
Private Action
Seek redress directly from
the firm
Take legal action
Complaint to business, private,
or governmental agencies
Stop buying the product or
boycott the seller
Warn friends about the product
and /or seller
39
40. Studying Causes of Quality Deviations
Deviation
Deviation is a departure from approved procedure or
specification.
Associated with limits vs. specifications.
GMP (Good manufacturing practice) mistakes
or errors
Reprocessing or Rework
Unapproved changes
Performing an activity without proper training
Outside of operating parameters or in-process
control limits
Failure to follow instructions
40
41. Cont…
Documenting all attempts to identify,
determine, confirm, or rule out potential
root cause(s)
Why and how did it occur
Detailed descriptions (what, where, when,
and who) of the deviation vs. root cause
investigation or assessments
Definitive or Potential Root Cause(s)
41
43. Topics for Discussion
How do the dimensions of service quality differ
from those of product quality?
Why is measuring service quality so difficult?
Illustrate the four components in the cost of
quality for a service of your choice.
Why do service firms hesitate to offer a service
guarantee?
How can recovery from a service failure be a
blessing in disguise?
43
44. Cost of Quality
Cost of quality is a methodology that allows
an organization to determine the extent to
which its resources are used for activities that
prevent poor quality, that appraise the quality
of the organization's products or services, and
that result from internal and external failures.
A quality cost is considered to be any cost
that the company would not have incurred if
the quality of the product or service were
perfect.
44
45. Cont…
Cost of Quality refers to the sum of costs
incurred to prevent non- conformance from
happening and the costs incurred when non-
conformance in products and service system
occurs.
These Quality Costs fall into two main categories:
1. Cost of Achieving Good Quality
2. Cost of Poor Quality
Cost of Good Quality refers to the costs
associated with providing good quality products or
service, doing things right.
Cost of Poor Quality is actually the cost of doing
things wrong.
45
46. Cont…
1. Cost of Achieving Good Quality
A. Prevention costs:
costs incurred during product or service design
B. Appraisal costs
costs of measuring, testing, and analyzing
2. Cost of Poor Quality
A. Internal failure costs
include scrap, rework, process failure, downtime, and
price reductions
B. External failure costs
include complaints, returns, warranty claims,
liability(Charge), and lost sales
46
47. B. Appraisal Costs
Inspection and Testing
costs of testing and inspecting materials, parts, and
product at various stages and at the end of a process
Test Equipment Costs
costs of maintaining equipment used in testing quality
characteristics of products
Operator Costs
costs of time spent by operators to gather data for testing
product quality, to make equipment adjustments to
maintain quality, and to stop work to assess quality
47
48. 2. Cost of Poor Quality
A. Internal Failure Costs
i. Scrap costs
costs of poor-quality products that must be discarded,
including labor, material, and indirect costs
ii. Rework costs
costs of fixing defective products to conform to quality
specifications
iii. Process failure costs
costs of determining why production process is producing
poor-quality products
iv. Process downtime costs
costs of shutting down productive process to fix problem
v. Price-downgrading costs
costs of discounting poor-quality products—that is, selling
products as “seconds”
48
49. B. External Failure Costs
i. Customer complaint costs
costs of investigating and satisfactorily responding to a customer
complaint resulting from a poor-quality product
ii. Product return costs
costs of handling and replacing poor-quality products returned by
customer
iii. Warranty claims costs
costs of complying with product warranties
iv. Product liability costs
litigation costs resulting from product liability and customer injury
v. Lost sales costs
costs incurred because customers are dissatisfied with poor
quality products and do not make additional purchases
49
50. Quality–Cost Relationship
Cost of Quality
Difference between price of
nonconformance and conformance
Cost of doing things wrong
20 to 35% of revenues
Cost of doing things right
3 to 4% of revenues
Profitability
In the long run, quality is free.
50
51. Benefits of using quality
costs
Quantify the size of the quality problem.
Identify major opportunities for cost reduction
It helps in identification of opportunities for
reducing customer dissatisfaction and
associated threats to product stability
Measures the results of quality improvement
activities
Align quality goals with organizational goals.
Set cost reduction targets
51
52. 2. Assess Own Work
Workplace Procedure is a set of written instructions that
identifies the health and safety issues that may arise from
the jobs and tasks that make up a system of work.
A safe working procedure should be written
when:
Designing a new job or task.
Changing a job or task.
Introducing new equipment.
Reviewing a procedure when problems have
been identified, example from an accident or
incident investigation.
52
53. The safe working procedure should
identify:
The tasks that are to be undertaken that cause
risks.
The equipment to be used in these tasks.
The control measures that have been formulated
for these tasks.
Any training or qualification needed to undertake
the task.
The personal protective equipment to be worn.
Action to be undertaken to address safety issues
that may arise while undertaking the task.
53
54. Types and Work-Related Errors
A. Quantity of work (untimely completion, limited
production)
Poor prioritizing, timing, scheduling
Lost time
Tardiness, absenteeism, leaving without permission
Excessive visiting, phone use, break time, use of the Internet
Misuse of sick leave
Slow response to work requests, untimely completion
of assignments
Preventable accidents
54
55. B. Quality of work (Failure to meet quality
standards)
Inaccuracies and errors
Failure to meet expectations for product quality,
cost or service.
Customer/Client dissatisfaction.
Spoilage and/or waste of materials.
Inappropriate or poor work methods.
55
56. Work Behavior Which Result in Performance
Problems
A. Inappropriate behavior ("poor attitude")
Negativism, lack of cooperation, hostility
Failure or refusal to follow instructions
Unwillingness to take responsibility.
Insubordination
56
57. B. Resistance to Change
Unwillingness, refusal or inability to update
skills.
Resistance to policy, procedure, work method
changes.
Lack of flexibility in response to problems.
57
59. D. Inappropriate Physical Behavior
Smoking, eating, drinking in inappropriate
places.
Sleeping on the job.
Alcohol or drug use.
Problems with personal hygiene.
Threatening, hostile, or intimidating behavior.
59
60. Fault Identification and Reporting
These are the things to be considered when:
A. Receiving Materials:
1. Match the packing slip to the items received.
2. That you are receiving the materials indicated
on the purchase order with regard to quantity
and Price.
3. That the materials are in acceptable condition.
4. That terms regarding installation and/or set-up
of equipment are met.
60
61. B. Receiving Reports
Whenever goods are received:
The person receiving the goods must document,
using the administrative software, that all goods
were received for each requisition before any
payment can be made to the vendor.
Any exceptions must be noted so that partial
payments can be processed or defective goods can
be returned.
61
62. Cont…
C. Return of Merchandise
When merchandise is received which is incomplete or
defective, the supervisor will return the materials to the
supplier or to the store where it was bought and make
arrangements with the vendor for replacement.
D. Make an Inventory Report of the Materials
All materials received must be listed and be reported to monitor how
many materials are already on hand, purchased or damaged.
Effective management checks are an important means of providing
assurance of the integrity and security of the benefit processes.
They are also useful in identifying training needs; indicating
possible weaknesses in procedure and ensuring the section meets
its accuracy target set for Best Value Performance Indicators
purposes.
62
63. Quality Performance Measures
1. Customer Satisfaction. .
If customers are not happy, then everyone is
wasting at least a portion of their time.
Measure how your customer judges the
outcome of your product or service, through
surveys or at the end of each transaction with
the customer.
2. Product/Service Defects
Defects is a measure of quality, and a translation
of what the customer expects your product or
service to do, into something you can count to
assess how often the product or service actually
does what is expected.
63
64. Cont…
3. Production/Delivery Time
The time it takes to produce / deliver your product
or service for your customer is a very useful thing
to measure.
4. Productivity
Productivity is a measure of your process efficiency, and
is essentially the rate at which you can produce outputs,
relative to the inputs it takes to do so.
A great measure to focus on eliminating waste and
rework, wasted time and wasted actions.
Productivity can measure many things i.e. :
• what is product output compared to time taken
• what is the product output versus cost
64
65. Cont…
5. Innovation (or Improvement) Ideas
This is about making active suggestions
about how to improve performance.
A good workplace will share and discuss
about customer satisfaction, product/delivery
time, productivity and their outcomes among
the work team.
This sharing will actively encourage
improvement ideas and suggestions.
This process encourages everyone to
deepen their understanding about
performance, and how they can influence it.
65
66. Quality Assurance
Quality Assurance refers to a procedure for the
systematic monitoring and evaluation of individual
aspects of a production line, process, service, or
facility to ensure that standards of quality are being
met.
• Two key principles characterize QA:
“Fit for Purpose”
(the product should be suitable for the
intended purpose) and
“Right First Time”
66
67. Cont…
Quality Assurance includes regulation
of the quality of:
Raw Materials
Assemblies
Products and Components
Services Related to Production &
Mgt
Production and Inspection
67
68. Advantages of Quality Assurance
Less defects.
Less scrap.
Less complaint from customers.
Better quality.
Higher productivity.
Less inspection rejects.
Good customer relation.
Increased good will of the company.
Increased profits and etc.
68
69. Quality Control
Quality control is the testing of completed
products to uncover defects, and reporting to
management who make the decision to allow or
deny the release of the product within the broader
Quality Management System.
Quality control describes the directed use of
testing to measure the achievement of a specified
standard.
Quality control is a superset of testing, although
it often used synonymously with testing.
Roughly, you test to see if something is broken,
and with quality control you set limits that say, in
effect, if this particular stuff is broken then
69
70. Quality Control Vs Quality
Assurance
Quality Control: the operational techniques
and activities that are used to fulfill
requirements for quality.
For quality control to be effective, you must
test the same things the same way every time
you test.
Quality Assurance: all those planned and
systematic activities implemented to provide
adequate confidence that an entity will fulfill
requirements for quality.
70
72. SELF-CHECK
I. Write Quantity if the statement affects the quantity of work and
Quality if the statement affects the quality of work. Write your
answer on the space provided before each number.
______ 1. Poor scheduling of work.
______ 2. Failure to meet expectations for product quality, cost or
service.
______ 3. Customer/client dissatisfaction.
______ 4. Preventable accidents.
______ 5. Misuse of sick leave.
______ 6. Tardiness
______ 7. Inaccuracies and errors .
______ 8. Break time.
______ 9. Excessive visiting.
______ 10. Spoilage and/or waste of materials.
72
73. II. Write TRUE if the statement is correct and FALSE if the
otherwise is wrong.
__________ 1. Poor attitude results in performance
problem.
__________ 2. A safe working procedure should be written
when retrieving old tasks.
__________ 3. Preventable accidents may affect the
quantity of work.
__________ 4. Following certain procedure is very important
in performing given operation or to a given
event.
__________ 5. Safe working procedure should not identify
the tasks that are to be undertaken that pose
risks.
73
74. iv. Write True if the statement is correct and False if the
otherwise.
_____1. Standards are set of rules that describe quality
of materials, product or system.
_____2. Quality assurance does not cover all the
activities from design, development, up to
documentation.
_____3. Customer service is a series of activities
designed to enhance the level of customer
satisfaction.
_____4. Customer service is not important in the
company’s customer value proposition.
_____5. The durability of the work do not depend on the
skills of those who install it.
74
75. Assignment
iii. Give short answer
1. Define quality ?
2. What is workplace procedure ?
3. Write the eight dimensions of product quality
4. Write the seven dimensions of service quality.
5. Give five examples of behavior that may affect the
quantity of work.
6. Give five examples of behavior that may affect the
quality of work.
7. What is the importance of standards?
8. Define cost of quality and list the type of quality costs.
75