, quality management , a degree or level of excellence , service quality , principles of tqm , costs of quality , the cost of poor qualit

1. 9-1
Management of Quality

2. 9-2
Quality
A degree or level of Excellence
The totality of features and characteristics of a
product or service that bears on its ability to
satisfy given needs
 Quality is approached from two perspectives
1. consumer’s perspective
2. producer’s perspective

3. 9-3
Dimensions of Quality:
Consumer Perspective
 “The consumer is the most important part of the
product line. Quality should be aimed at the needs of
the consumer, present and future.”
 Performance - main characteristics of the product/service
 Aesthetics - appearance, feel, smell, taste
 Special Features - extra characteristics
 Conformance - how well product/service conforms to
customer’s expectations
 Reliability - consistency of performance

4. 9-4
Consumer’s Perspective (Cont’d)
 Durability - useful life of the product/service
 Perceived Quality - indirect evaluation of quality (e.g.
reputation)
 Serviceability - service after sale

5. 9-5
Service Quality
 Convenience
 Reliability
 Responsiveness
 Time
 Assurance
 Courtesy

6. 9-6
 Once the product design has been determined, the
producer perceives quality to be how effectively the
production process is able to conform to the
specifications required by the design referred to as
the quality of conformance, which make sure that
the product or service is produced according to
design, depends on technology, production process,
raw materials, training and supervision of
employees and cost.
 . Although product design is customer motivated, it
cannot be achieved with the coordination and
participation of the production process
Producers Perspective

7. Total Quality Management (TQM)
 A philosophy that stresses three principles
for achieving high levels of process
performance and quality: customer
satisfaction, employee involvement and
continuous improvement in performance.
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8. Principles of TQM
1. The customer defines quality, and customer satisfaction is the top
priority.
2. Top management must provide the leadership for quality.
3. Quality is a strategic issue and requires a strategic plan.
4. Quality is the responsibility of all employees at all levels of the
organization.
5. All functions of the company must focus on continuous equally
improvement to achieve strategic goals.
6. Quality problems are solved through cooperation among employees and
management.
7. Problem solving and continuous quality improvement use statistical
quality control methods.
8. Training and education of all employees are basis for continuous quality
improvement.
9-8

9. Cost of Quality
 There are two types of cost involved in
quality management programs
 1.The cost of Poor Quality
 2. Cost of achieving good quality
9-9

10. 9-10
Costs of Quality : Cost of achieving good quality
 There are two types of cost involved in Cost of
achieving good quality, namely prevention and
appraisal cost
 Appraisal Costs
Costs of activities designed to ensure quality or uncover
defects
 Inspection and testing
 Operator costs

11. Costs of Quality (continued)
 Prevention Costs
 All TQ training, TQ planning, customer assessment, process
control, and quality improvement costs to prevent defects
from occurring
 Quality planning costs
 Product design costs
 Process cost
 Training cost
 Information cost
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12. 9-12
Costs of Quality: The cost of Poor Quality
 Failure Costs - costs incurred by defective parts/products or
faulty services. There are two types of failure cost, internal
and external failure cost.
 Internal Failure Costs: Costs incurred to fix problems that
are detected before the product/service is delivered to the
customer.
 Scrap costs
 Rework cost
 Process failure costs
 Process downtime costs

13. Costs of Quality (continued)
 External Failure Costs: All costs incurred to fix problems that
are detected after the product/service is delivered to the
customer.
 Customer complaint costs
 Product return costs
 Warranty claims costs
 Product liability costs
 Lost sales costs
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