Quality Assurance and Quality Control

QUALITY CONTROL &QUALITY CONTROL &
QUALITY ASSURANCEQUALITY ASSURANCE

What is Quality?What is Quality?
 The concept of quality is subjective and difficultThe concept of quality is subjective and difficult
to defineto define
 Certain aspects of quality can be identifiedCertain aspects of quality can be identified
 Ultimately, the judgement of quality rests withUltimately, the judgement of quality rests with
the customerthe customer

CUSTOMER-DRIVEN QUALITYCUSTOMER-DRIVEN QUALITY
 A simpler, more powerful definition cameA simpler, more powerful definition came
up….up….
““ Quality is meeting or exceedingQuality is meeting or exceeding
customer expectations ”customer expectations ”

What is Quality?What is Quality?
The International Organization for StandardizationThe International Organization for Standardization
(ISO) defines quality as the totality of characteristics(ISO) defines quality as the totality of characteristics
of an entity that bear on its ability to satisfyof an entity that bear on its ability to satisfy statedstated
(confirmed) or(confirmed) or ImpliedImplied (indirect) needs.(indirect) needs.
Other experts define quality based on:Other experts define quality based on:
• conformance to requirements: meeting written specificationsconformance to requirements: meeting written specifications
• fitness for use: ensuring a product can be used as it was intendedfitness for use: ensuring a product can be used as it was intended

QualityQuality
meansmeans
pleasing consumerspleasing consumers
notnot
just protecting themjust protecting them
from annoyancesfrom annoyances

QualityQuality
is an ever-changing stateis an ever-changing state
(i.e., what is considered(i.e., what is considered
quality today may not be goodquality today may not be good
enough to be consideredenough to be considered
quality tomorrow!)quality tomorrow!)

QualityQuality
is a dynamic state associatedis a dynamic state associated
with products, services,with products, services,
people, processes andpeople, processes and
environments that meets orenvironments that meets or
exceeds customerexceeds customer
expectations.expectations.

DEFINING QUALITYDEFINING QUALITY
 Quality can be confusing concept, partlyQuality can be confusing concept, partly
because people view quality in relation tobecause people view quality in relation to
differing criteriadiffering criteria
 The meaning of quality continues to evolveThe meaning of quality continues to evolve
as the quality profession grows and maturesas the quality profession grows and matures
 A study that asked managers of 86 firms inA study that asked managers of 86 firms in
the eastern U.S. to define quality producedthe eastern U.S. to define quality produced
several dozen different responses:several dozen different responses:

DEFINING QUALITYDEFINING QUALITY
 PerfectionPerfection
 ConsistencyConsistency
 Eliminating wasteEliminating waste
 Speed of deliverySpeed of delivery
 Compliance with policies & proceduresCompliance with policies & procedures
 Providing good, usable productsProviding good, usable products
 Doing it right the first timeDoing it right the first time
 Delighting or pleasing customersDelighting or pleasing customers
 Total customer service & satisfactionTotal customer service & satisfaction

Elements of QualityElements of Quality
 Basic elements of quality includeBasic elements of quality include
1.1. Quality characteristicsQuality characteristics
2.2. Quality of designQuality of design
3.3. Quality of conformanceQuality of conformance

 Quality characteristicsQuality characteristics:-:-
The term quality characteristics is usedThe term quality characteristics is used
for one or more properties that define thefor one or more properties that define the
nature of a product for quality-controlnature of a product for quality-control
purpose. Quality characteristics includepurpose. Quality characteristics include
dimension, color, strength, temperature,dimension, color, strength, temperature,
etc.etc.
For example concrete, qualityFor example concrete, quality
characteristics of commonly specify andcharacteristics of commonly specify and
control concrete include compressivecontrol concrete include compressive
strength after a fixed curing time.strength after a fixed curing time.

 Quality of design:-Quality of design:-
It is often specified not only theIt is often specified not only the
desired standard for thedesired standard for the
characteristics that define a productcharacteristics that define a product
such as a dimension or strength, butsuch as a dimension or strength, but
also tolerance or ranges foralso tolerance or ranges for
acceptable variation from theacceptable variation from the
standards.standards.
For example, reinforcing bar spacingFor example, reinforcing bar spacing
might be specified as 12cm or amight be specified as 12cm or a
concrete specification requesting aconcrete specification requesting a
compressing strength of 200 kg/cmcompressing strength of 200 kg/cm
sq.sq.

 Quality of Conformance:-Quality of Conformance:-
The degree to which the physical workThe degree to which the physical work
produced conforms to this standard.produced conforms to this standard.
For example, a journeyman welderFor example, a journeyman welder
producing pipe welds with a reject rate ofproducing pipe welds with a reject rate of
only 3 per 100 has a much higher qualityonly 3 per 100 has a much higher quality
of conformance than an apprentice with aof conformance than an apprentice with a
reject rate of 17 per 100reject rate of 17 per 100 ..

Economics of QualityEconomics of Quality
Economics of quality must be consideredEconomics of quality must be considered
in both design and construction. Economicin both design and construction. Economic
concept applicable to each will beconcept applicable to each will be
introduced here,introduced here,
 Quality economics in designQuality economics in design
 Economics of quality of conformanceEconomics of quality of conformance


Quality economics in design:-Quality economics in design:-
In the simplest form, figure illustrates theIn the simplest form, figure illustrates the
relationship between the cost value of quality.relationship between the cost value of quality.
The horizontal axis relates to the quality ofThe horizontal axis relates to the quality of
design as reflected by quality characteristicsdesign as reflected by quality characteristics
chosen for the item concerned. As qualitychosen for the item concerned. As quality
increases, the vertical shows that both theincreases, the vertical shows that both the
cost and the value of the quality increases ascost and the value of the quality increases as
well, but in a different manner.well, but in a different manner.

Quality economics inQuality economics in
designdesign

 Economics of quality of conformance:-Economics of quality of conformance:-
Simply stated, quality control costs money.Simply stated, quality control costs money.
There are two main ingredients to this costThere are two main ingredients to this cost
1.1. the cost of skilled labor, equipment, material,the cost of skilled labor, equipment, material,
methods and supervision to produce qualitymethods and supervision to produce quality
outputs.outputs.
2.2. The cost of monitoring and verifying theThe cost of monitoring and verifying the
quality of output and of correcting orquality of output and of correcting or
replacing defective work.replacing defective work.

Economics of Quality ofEconomics of Quality of
ConformanceConformance

Cost of Poor QualityCost of Poor Quality

 Prevention costsPrevention costs
 build it right the first timebuild it right the first time
 Appraisal costsAppraisal costs
 inspection and testinginspection and testing
 Internal failure costsInternal failure costs
 scrap and reworkscrap and rework
 External failure costsExternal failure costs
 warranty claims, recalls, lost businesswarranty claims, recalls, lost business
Cost of Poor Quality

 Prevention costs:Prevention costs:
 These are planned costs an organization incurs to ensure thatThese are planned costs an organization incurs to ensure that
errors are not made at any stage during theerrors are not made at any stage during the delivery processdelivery process ofof
that product orthat product or service to a customerservice to a customer ..
 TheThe delivery processdelivery process may includemay include designdesign,, developmentdevelopment,,
productionproduction andand shippingshipping..
 Examples: Quality planning costs, Information system costs,Examples: Quality planning costs, Information system costs,
education and training costs, quality administration staff costs,education and training costs, quality administration staff costs,
process control costs, market research costs, field testing costsprocess control costs, market research costs, field testing costs
and preventive maintenance costs.and preventive maintenance costs.
 The costs of preventing mistakes are always much lesser thanThe costs of preventing mistakes are always much lesser than
the costs of inspection and correction.the costs of inspection and correction.

 Appraisal costs:Appraisal costs:
 These include the costs of verifying, checking orThese include the costs of verifying, checking or
evaluating a product or service during the deliveryevaluating a product or service during the delivery
process.process.
 Examples: internal production audit costs, test andExamples: internal production audit costs, test and
inspection costs, instrument maintenance costs,inspection costs, instrument maintenance costs,
supplier evaluation costs, and audit report costs.supplier evaluation costs, and audit report costs.

 Failure costs:Failure costs:
 A company incurs these costs because the product orA company incurs these costs because the product or
service did not meet the requirements and had to beservice did not meet the requirements and had to be
fixed or replaced, or the service had to be repeated.fixed or replaced, or the service had to be repeated.
 These failure costs can be further subdivided into twoThese failure costs can be further subdivided into two
groups:groups:
 Internal Failures:Internal Failures:
 Internal failures include all costs resulting from theInternal failures include all costs resulting from the
failures found before the product or service reachesfailures found before the product or service reaches
the customer.the customer.
 Examples: scrap and rework costs, repair costs, andExamples: scrap and rework costs, repair costs, and
corrective action costs from nonconforming productcorrective action costs from nonconforming product
or service.or service.

 External failures:External failures:
 External failures occur when the customer finds theExternal failures occur when the customer finds the
failure.failure.
 Examples: warranty claim costs, customer complaintExamples: warranty claim costs, customer complaint
costs, shipping costs, and customer follow-up costs.costs, shipping costs, and customer follow-up costs.

 Total Quality cost, is a combination ofTotal Quality cost, is a combination of prevention,prevention,
appraisal & failureappraisal & failure. Reducing any of these reduces total.. Reducing any of these reduces total.
 Key to minimum cost, is striking correct balance b/wKey to minimum cost, is striking correct balance b/w
three.three.
 ClearlyClearly prevention reduces both appraisal and failureprevention reduces both appraisal and failure
costscosts, -eventually cost of prevention itself starts to, -eventually cost of prevention itself starts to
increase total cost & so must be controlled & set at anincrease total cost & so must be controlled & set at an
effective level.effective level.

Cost of QualityCost of Quality

ExampleExample
 Trying to save a few project dollars by reducing
conformance costs could prove disastrous.
For example, an American company won a contract as
a supplier of Japanese parts. The initial contract called
for the delivery of 10,000 parts. During inspection and
testing at the customer’s (i.e., Japanese) facility, two
rejects were discovered. The Japanese returned all
10,000 components to the American supplier stating
that this batch was not acceptable. In this example, the
nonconformance cost could easily be an order of
magnitude greater than the conformance cost.
The moral is clear:
Build it right the first time.

Total Quality CostTotal Quality Cost

Basic Quality FunctionBasic Quality Function
1. DEFECTS / REJECTS
2. COMPLAINTS
3. CONSISTENCY
4. PRECISION
5. ACCURACY
6. VARIATION

Precision and AccuracyPrecision and Accuracy
In the fields of science, engineering, industry
and statistics, the accuracy of a measurement
system is the degree of closeness of
measurements of a quantity to that quantity's
actual (true) value. The precision of a
measurement system, also called reproducibility
or repeatability, is the degree to which repeated
measurements under unchanged conditions
show the same results. Although the two words
reproducibility and repeatability can be
synonymous in colloquial use, they are
deliberately contrasted in the context of the
scientific method.

Hierarchy of QualityHierarchy of Quality
Hierarchy of Quality follows the evolution of Quality
management from
Simple inspection
To
Total Quality Management system

Development of QualityDevelopment of Quality
 Four Level modelFour Level model
1. Inspection1. Inspection
 After-event-screening -After-event-screening - DetectionDetection basedbased
2. Quality Control2. Quality Control
 Introduction of basic systems - stillIntroduction of basic systems - still DetectionDetection BasedBased
3. Quality Assurance3. Quality Assurance
 Development of complex systems -Development of complex systems - PreventionPrevention basedbased
4. Total Quality Management4. Total Quality Management
 Development of culture -Development of culture - PeoplePeople basedbased

InspectionInspection
 (ISO8402)(ISO8402)
 ““Activity such as measuring, examining, testing,Activity such as measuring, examining, testing,
or gauging one or more characteristics of anor gauging one or more characteristics of an
entity and comparing the results with specifiedentity and comparing the results with specified
requirements in order to establish whetherrequirements in order to establish whether
conformity is achieved for each characteristic”conformity is achieved for each characteristic”

InspectionInspection
 Lowest level of quality developmentLowest level of quality development
 Key product characteristics examinedKey product characteristics examined
 Compared to known standardCompared to known standard
 After the eventAfter the event
 Inspection will not provide any basis for processInspection will not provide any basis for process
improvementimprovement

Quality ControlQuality Control
 Defined as (ISO8402)Defined as (ISO8402)
 ““Operational techniques and activities that are usedOperational techniques and activities that are used
to fulfill requirements for quality”to fulfill requirements for quality”
 Developed from inspection of methods, systemsDeveloped from inspection of methods, systems
and tools & techniquesand tools & techniques
 More emphasis on feedbackMore emphasis on feedback
 Main mechanism still inspection basedMain mechanism still inspection based
 Physical characteristics of productPhysical characteristics of product

 The second level of quality developmentThe second level of quality development
 It will not improve quality, just highlight when it is notIt will not improve quality, just highlight when it is not
presentpresent
 In many cases QC does not identify the root cause ofIn many cases QC does not identify the root cause of
the non-conformancethe non-conformance

 The second level of quality developmentThe second level of quality development
 Development of inspection proceduresDevelopment of inspection procedures
 Calibration, limited quality auditsCalibration, limited quality audits
 Use of basic QC toolsUse of basic QC tools
 Defect recording and analysisDefect recording and analysis
 Quality costs still unknownQuality costs still unknown
 Use of operator self inspectionUse of operator self inspection
 Still largely based on goods inspectionStill largely based on goods inspection
 Reliance on inspection to catch non-conforming workReliance on inspection to catch non-conforming work
 It will not improve quality, just highlight when it is notIt will not improve quality, just highlight when it is not
presentpresent
 In many cases QC does not identify the root cause ofIn many cases QC does not identify the root cause of
the non-conformancethe non-conformance

Quality AssuranceQuality Assurance
““Quality assurance includes “allQuality assurance includes “all
planned & systematic activitiesplanned & systematic activities
implemented within the qualityimplemented within the quality
system, & demonstrated assystem, & demonstrated as
needed, to provide adequateneeded, to provide adequate
confidence that an entity willconfidence that an entity will
fulfill requirements for quality”.fulfill requirements for quality”.

““Quality Assurance covers all activitiesQuality Assurance covers all activities
from design, development, production,from design, development, production,
installation, servicing andinstallation, servicing and
documentation, this introduced thedocumentation, this introduced the
rule “Fit for purpose” and “do it rightrule “Fit for purpose” and “do it right
first time”. It includes the regulation offirst time”. It includes the regulation of
the quality of raw materials,the quality of raw materials,
assemblies, products and components;assemblies, products and components;
services related to production; andservices related to production; and
management, production, andmanagement, production, and
inspection processes.“inspection processes.“

 Defined as (ISO8402)Defined as (ISO8402)
 ““All the planned and systematic activitiesAll the planned and systematic activities
implemented within the quality system,implemented within the quality system,
and demonstrated as needed to provideand demonstrated as needed to provide
adequate confidence that an entity willadequate confidence that an entity will
fulfil requirements for qualityfulfil requirements for quality ””
 Issues of progression from QC to QAIssues of progression from QC to QA
 Change in emphasis from product to processChange in emphasis from product to process

Diff b/w QA and QCDiff b/w QA and QC
Quality AssuranceQuality Assurance Quality ControlQuality Control
Meant for developing,Meant for developing,
organizing the best qualityorganizing the best quality
process.process.
Meant for implementing theMeant for implementing the
process developed by formerprocess developed by former
team.team.
Is the process related.Is the process related. Is the actual testing of theIs the actual testing of the
system.system.
Focuses on building inFocuses on building in
quality....and hencequality....and hence
preventing defects.preventing defects.
Focuses on testing forFocuses on testing for
quality...and hence detectingquality...and hence detecting
defects.defects.
Deals with processDeals with process Deals with productDeals with product

Diff b/w QA and QCDiff b/w QA and QC
QualityQuality AssuranceAssurance Quality ControlQuality Control
Makes sure you areMakes sure you are
doing the right things,doing the right things,
the right way.the right way.
Makes sure the resultsMakes sure the results
of what you've done areof what you've done are
what you expected.what you expected.
Is preventive process.Is preventive process. Is corrective process.Is corrective process.
Activities ensure thatActivities ensure that
the process is definedthe process is defined
and appropriate.and appropriate.
Activities focus onActivities focus on
finding defects infinding defects in
specific deliverables -specific deliverables -
e.g., are the definede.g., are the defined
requirements the rightrequirements the right

What is Total QualityWhat is Total Quality
Total Quality means quality of work,
quality of service, quality of information,
quality of process, quality of organization,
quality of people, quality of company and
quality of objectives.

Total Quality ManagementTotal Quality Management
TQM a philosophy set of guidingTQM a philosophy set of guiding
principals that represent the foundation ofprincipals that represent the foundation of
a continuously improving organization.a continuously improving organization.
TQM is the application of quantitativeTQM is the application of quantitative
methods and human resources tomethods and human resources to
improve the material and servicesimprove the material and services
supplied to an organization, and all thesupplied to an organization, and all the
processes within an organization, andprocesses within an organization, and
degree to which needs of the customerdegree to which needs of the customer
are met, now and in the future.are met, now and in the future.

Total Quality ManagementTotal Quality Management
 Represents the most advanced stage of qualityRepresents the most advanced stage of quality
developmentdevelopment
 A Management philosophyA Management philosophy
 Application of QM to all aspects of businessApplication of QM to all aspects of business
 Focused on the requirements of the customerFocused on the requirements of the customer
 Recognizes the importance of suppliersRecognizes the importance of suppliers
 Company wide approachCompany wide approach
 Continual improvementContinual improvement
 Integration of all quality systems & proceduresIntegration of all quality systems & procedures
 Development of organizational cultureDevelopment of organizational culture

DEFINITION OF TOTAL QUALITYDEFINITION OF TOTAL QUALITY
Total Quality describes the state of anTotal Quality describes the state of an
organization in which all the activities of allorganization in which all the activities of all
functions are designed and carried out infunctions are designed and carried out in
such a way thatsuch a way that
 all external customer requirements are metall external customer requirements are met
 while reducing internal time and cost,while reducing internal time and cost,
 and enhancing the workplace climate.and enhancing the workplace climate.

The Profile of TQMThe Profile of TQM
TQM is a:TQM is a:
• ScientificScientific
• SystematicSystematic
• Company – WideCompany – Wide
Activity in whichActivity in which
A company is devoted to customers throughA company is devoted to customers through
its products and services.its products and services.

A TQM Approach To ManagementA TQM Approach To Management
A unique blending of :A unique blending of :
 (a) Objective, practical, & quantitative aspects(a) Objective, practical, & quantitative aspects
of management, e.g. Focus on processes &of management, e.g. Focus on processes &
reliance on quantitative data & statisticalreliance on quantitative data & statistical
analysis for decision-making:analysis for decision-making:
 (b) “soft” aspects of mgt, e.g. providing(b) “soft” aspects of mgt, e.g. providing
visionary leadership, promoting a spirit ofvisionary leadership, promoting a spirit of
cooperation teamwork, and practicingcooperation teamwork, and practicing
participative management.participative management.
 Many organizations when deciding to undertakeMany organizations when deciding to undertake
a TQM effort focus on one or other of thesea TQM effort focus on one or other of these
general approaches.general approaches.
 A fully successful effort requires balancedA fully successful effort requires balanced
attention to both.attention to both.

Quality ManagementQuality Management
 All activities of the overallAll activities of the overall
management function thatmanagement function that
determine the quality policy,determine the quality policy,
objectives and responsibilities andobjectives and responsibilities and
implement planning, quality control,implement planning, quality control,
quality assurance and qualityquality assurance and quality
improvement within the qualityimprovement within the quality
system” (ISO 840)system” (ISO 840)

Quality policy sample 1Quality policy sample 1
 Company XYZ provides quality management, co-Company XYZ provides quality management, co-
ordination, manufacture and installation servicesordination, manufacture and installation services
throughout the UK and sometimes abroad. The Companythroughout the UK and sometimes abroad. The Company
has developed its expertise since its establishment andhas developed its expertise since its establishment and
its aim is to achieve a high standard of construction andits aim is to achieve a high standard of construction and
service to its customers.service to its customers.
 It is the policy of Company XYZ to provide the customerIt is the policy of Company XYZ to provide the customer
with goods and services to the agreed requirement inwith goods and services to the agreed requirement in
accordance with the details and price.accordance with the details and price.
 The Directors, Management and Staff are responsible forThe Directors, Management and Staff are responsible for
Quality Control through the Quality Management SystemQuality Control through the Quality Management System
seeking improvement by constant review, with suppliersseeking improvement by constant review, with suppliers
and sub-contractors being encouraged to co-operate. Theand sub-contractors being encouraged to co-operate. The
Company is committed to achieving customer satisfactionCompany is committed to achieving customer satisfaction
by the use of quality procedures which will be operatedby the use of quality procedures which will be operated
to meet or exceed the requirements of ISO 9001.to meet or exceed the requirements of ISO 9001.

Quality policy sample 2Quality policy sample 2
 Our Quality Policy is defined and strongly driven by the followingOur Quality Policy is defined and strongly driven by the following
management principles and behaviors:management principles and behaviors:
• Build a mutually profitable relationship with our customers, ensuring their• Build a mutually profitable relationship with our customers, ensuring their
long-term success, through the understanding of their needs and thelong-term success, through the understanding of their needs and the
needs of their customers as wellneeds of their customers as well
• Achieve our commitments for quality, cost, and schedule• Achieve our commitments for quality, cost, and schedule
• Enhance the systematic research and use of best preventive practices at• Enhance the systematic research and use of best preventive practices at
all levels and ensure reliable risk managementall levels and ensure reliable risk management
• Drive continual improvement and innovation based upon efficient• Drive continual improvement and innovation based upon efficient
business processes, well-defined measurements, best practices, andbusiness processes, well-defined measurements, best practices, and
customer surveyscustomer surveys
• Develop staff competencies, creativity, empowerment and accountability• Develop staff competencies, creativity, empowerment and accountability
through appropriate development programs and show strong managementthrough appropriate development programs and show strong management
involvement and commitmentinvolvement and commitment
 Company XYZ strives to be the best provider of inspection services in theCompany XYZ strives to be the best provider of inspection services in the
industry. Through the use of these guiding principles, everyone inindustry. Through the use of these guiding principles, everyone in
Company XYZ is accountable for fully satisfying our customers by meetingCompany XYZ is accountable for fully satisfying our customers by meeting
or exceeding their needs and expectations with best-in-class solutions andor exceeding their needs and expectations with best-in-class solutions and
services. Our goal is 100% customer satisfaction 100% of the time.services. Our goal is 100% customer satisfaction 100% of the time.

Change ofChange of
The Name of QualityThe Name of Quality
ActivitiesActivities
 QCQC :: Quality ControlQuality Control
At the beginning of 1910-20sAt the beginning of 1910-20s
 SQCSQC :: Statistical Quality ControlStatistical Quality Control
At the beginning of 1950sAt the beginning of 1950s
 TQCTQC :: Total Quality ControlTotal Quality Control
At the beginning of 1960sAt the beginning of 1960s
 TQMTQM :: Total Quality ManagementTotal Quality Management
In the middle ofIn the middle of
1960s in Japan1960s in Japan
1980s in NA1980s in NA
1990s in others1990s in others

Quality Evolution in JapanQuality Evolution in Japan
Fitness to
Use
Fitness to
Cost
Fitness to Latent
Requirements
Fitness to
Standards
Determining the customer’s
needs before the customer
becomes aware of them
Obtain high quality & low cost
by effective designing of both
the product & processes.
To build a product
that meets the needs of
customer.
To build a product that meets
the specifications set by the
designer.

THE QUALITYTHE QUALITY
CHALLENGECHALLENGE
INDIVIDUAL
CRAFTSMAN
FOREMAN
INSPECTION
STATISTICAL CONTROL
QUALITY ASSURANCE
TOTAL QUALITY
CONTROL
ORGANIZATION
WIDE
TOTAL QUALITY
MANAGEMENT
1900 1920 1940 1960 1980
THEEVOLUTIONOFQUALITYMANAGEMENT

PRINCIPAL QUALITYPRINCIPAL QUALITY
DIMENSIONSDIMENSIONS
1.1. PerformancePerformance
2.2. FeaturesFeatures
3.3. ReliabilityReliability
4.4. ConformanceConformance
5.5. DurabilityDurability
6.6. ServiceabilityServiceability
7.7. AestheticsAesthetics
8.8. Perceived qualityPerceived quality

• Performance:Performance:
• a product’s primary operatinga product’s primary operating
characteristics. Example: A car’scharacteristics. Example: A car’s
acceleration, braking distance,acceleration, braking distance,
steering and handlingsteering and handling

• FeaturesFeatures::
• the “bells and whistles” of a product. Athe “bells and whistles” of a product. A
car may have power options, a tape orcar may have power options, a tape or
CD deck, antilock brakes, andCD deck, antilock brakes, and
reclining seatsreclining seats

• Reliability:Reliability:
• the probability of a product’s survivingthe probability of a product’s surviving
over a specified period of time underover a specified period of time under
stated conditions of use. A car’s abilitystated conditions of use. A car’s ability
to start on cold days and frequency ofto start on cold days and frequency of
failures are reliability factorsfailures are reliability factors

• ConformanceConformance::
• the degree to which physical andthe degree to which physical and
performance characteristics of aperformance characteristics of a
product match pre-establishedproduct match pre-established
standards.standards.
• car’s fit/finish, freedom from noisescar’s fit/finish, freedom from noises
can reflect this.can reflect this.

• Durability:Durability:
• the amount of use one gets from athe amount of use one gets from a
product before it physicallyproduct before it physically
deteriorates or until replacement isdeteriorates or until replacement is
preferable.preferable.
• For car - corrosion resistance & longFor car - corrosion resistance & long
wear of upholstery fabricwear of upholstery fabric

• Serviceability:Serviceability:
• speed, courtesy, competence ofspeed, courtesy, competence of
repair work.repair work.
• auto owner -access to spare parts.auto owner -access to spare parts.

• Aesthetics:Aesthetics:
• how a product looks, feels, sounds,how a product looks, feels, sounds,
tastes, or smells.tastes, or smells.
• car’s color, instrument panel designcar’s color, instrument panel design
and “feel of road” –and “feel of road” –
• make aesthetically pleasingmake aesthetically pleasing

• Perceived Quality:Perceived Quality:
• Subjective assessment of qualitySubjective assessment of quality
resulting from image, advertising, orresulting from image, advertising, or
brand names.brand names.
• car, - shaped by magazine reviews-car, - shaped by magazine reviews-
manufacturers’ brochuresmanufacturers’ brochures

COMPETITIVE ADVANTAGECOMPETITIVE ADVANTAGE
 Denotes firm’s ability to achieve marketDenotes firm’s ability to achieve market
superioritysuperiority
 Driven by customer needs & wantsDriven by customer needs & wants
 ProvidesProvides valuevalue to customers that competitorsto customers that competitors
do notdo not
 Makes significant contribution to businessMakes significant contribution to business
successsuccess
 Allows a firm to use its resources effectivelyAllows a firm to use its resources effectively

COMPETITIVE ADVANTAGECOMPETITIVE ADVANTAGE
cont….cont….
 Durability & dependability – difficult forDurability & dependability – difficult for
others to copyothers to copy
 Provides basis for further improvementProvides basis for further improvement
 Provides direction &Provides direction & motivationmotivation to theto the
organizationorganization

CUSTOMER-DRIVENCUSTOMER-DRIVEN
QUALITY IN THE 1980sQUALITY IN THE 1980s
 Quality was defined as…Quality was defined as…
““ The totality of features andThe totality of features and
characteristics of a product orcharacteristics of a product or
service that bears on its ability toservice that bears on its ability to
satisfy given needs ”satisfy given needs ”

CUSTOMER-DRIVENCUSTOMER-DRIVEN
QUALITY IN THE 1990sQUALITY IN THE 1990s
 A simpler, more powerful definition cameA simpler, more powerful definition came
up….up….
““ Quality is meeting or exceedingQuality is meeting or exceeding
customer expectations ”customer expectations ”

WHAT GOOD CANWHAT GOOD CAN
QUALITY DO ?QUALITY DO ?
 Provides competitive advantageProvides competitive advantage
 Reduces costsReduces costs
 Lesser returns, rework & scrapLesser returns, rework & scrap
 Increases productivity & profitsIncreases productivity & profits
 Generates satisfied customersGenerates satisfied customers
 ““ No Quality, no sales. No sales,No Quality, no sales. No sales,
no profit. No profits, no jobs.”no profit. No profits, no jobs.”

QUALITY ASSURANCEQUALITY ASSURANCE
Cont….Cont….
DEMING’S PDCA CYCLE
PLAN
ACTION DO
CHECK
WHAT IS NEEDED?
WHAT HAVE YOU
LEARNED?
CARRY OUT SMALL CHANGES
AUDIT WHAT HAS OCCURED

Deming’s Dreadful DiseasesDeming’s Dreadful Diseases
1.1. Looking elsewhere forLooking elsewhere for
examples, or concludingexamples, or concluding
that “our problems arethat “our problems are
different”.different”.
2.2. Creative accountingCreative accounting
rather than commitment.rather than commitment.
3.3. Management’s failure toManagement’s failure to
delegate responsibility.delegate responsibility.
4.4. That employees (orThat employees (or
unions)cause all theunions)cause all the
problems.problems.
5.5. Quality can be assured byQuality can be assured by
inspection.inspection.
6.6. False starts: noFalse starts: no
organization-wideorganization-wide
commitment.commitment.

Conventional WisdomConventional Wisdom
Quality is meetingQuality is meeting
conformance standards.conformance standards.
Quality is an intangible good.Quality is an intangible good.
Quality is meeting & exceedingQuality is meeting & exceeding
customer expectation.customer expectation.
Quality is defined by theQuality is defined by the
customer.customer.
Finding and Fixing problemsFinding and Fixing problems
results in improvements,results in improvements,
which may or may not bewhich may or may not be
sustainable.sustainable.
Making changes to the system toMaking changes to the system to
prevent problems results inprevent problems results in
sustainable improvements.sustainable improvements.
Effectiveness & efficiency areEffectiveness & efficiency are
achieved by meetingachieved by meeting
acceptable defect levels.acceptable defect levels.
Effectiveness & efficiency areEffectiveness & efficiency are
achieved by continuallyachieved by continually
improving.improving.
Crisis management is theCrisis management is the
dominant management mode.dominant management mode.
Preventative management.Preventative management.
Performance standards &Performance standards &
quotas improve productivity.quotas improve productivity.
Changes in the process improveChanges in the process improve
productivity.productivity.
Decisions are made byDecisions are made by
“superiors.”“superiors.”
Decisions are made throughDecisions are made through
collaboration between staff &collaboration between staff &
management.management.
Deming’s Approach

Top management evaluates theTop management evaluates the
organization on financialorganization on financial
performance.performance.
Top management focuses onTop management focuses on
process performance & customerprocess performance & customer
satisfaction as well as on financialsatisfaction as well as on financial
performance.performance.
Process improvement isProcess improvement is
expensive.expensive.
Process improvement leads toProcess improvement leads to
lower costs.lower costs.
Only managers are capable ofOnly managers are capable of
identifying & makingidentifying & making
Workers know the process best &Workers know the process best &
will suggest excellent ways towill suggest excellent ways to
improve it when given a chance.improve it when given a chance.
Managers command functions &Managers command functions &
are concerned with directing &are concerned with directing &
controlling.controlling.
Team leaders guide cross-Team leaders guide cross-
functional improvement teams &functional improvement teams &
are concerned with planning &are concerned with planning &
prevention.prevention.
Employees receive instruction &Employees receive instruction &
information from above, asinformation from above, as
deemed appropriate bydeemed appropriate by
management.management.
Management shares informationManagement shares information
with employees on a routine basiswith employees on a routine basis
& on request.& on request.
Leadership for an improvementLeadership for an improvement
effort can be delegated to outsideeffort can be delegated to outside
expert.expert.
Leadership for an improvementLeadership for an improvement
effort is provided by executiveseffort is provided by executives
within the org, who arewithin the org, who are
accountable for results.accountable for results.
Reviews are necessary only whenReviews are necessary only when
things go wrong.things go wrong.
Regularly scheduled performance-Regularly scheduled performance-
improvement reviews are a key toimprovement reviews are a key to
improved processes.

A Manager Who Fails To ProvideA Manager Who Fails To Provide
Resources And Time For PreventionResources And Time For Prevention
Activities Is Practicing FalseActivities Is Practicing False
EconomyEconomy
Concentrate on Prevention, Not CorrectionConcentrate on Prevention, Not Correction
Prevention has more leverage when improving quality
Prevention
Correction
Quality

QUALITY IS FREE !QUALITY IS FREE !
According to Crosby:According to Crosby:
 Quality is not only free, it is profit makerQuality is not only free, it is profit maker
 Increase of 5% -10% in profitability byIncrease of 5% -10% in profitability by
concentrating on qualityconcentrating on quality
 Quality provides a lot of money for freeQuality provides a lot of money for free

““Quality is never anQuality is never an
accident, it is alwaysaccident, it is always
the result of anthe result of an
intelligent effort”intelligent effort”
John RuskinJohn Ruskin

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