TUM School of Management

Production and Supply Chain Management

Prof Martin Grunow

Technische Universitt Mnchen

Quality Engineering & Management

Session 1.1: Defining Quality

Dr. Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott

Quality Engineering & Management Module 1.1

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Defining Quality
Defining Quality

DEFINE
R
MEASU
E

Holly Ott

Understanding
Customer
Expectations

Quality Engineering & Management Module 1.1

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Learning Objectives
Define quality as relative to a set of requirements and in terms of
customer expectations.
Compare the concept of quality management today to the past.
List major milestones in the development of Quality Management.

Holly Ott

Quality Engineering & Management Module 1.1

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Defining Quality
Fitness for use Dr. Juran
Fitness for use and meeting or exceeding customer
expectations.
The most fundamental truth is that quality is relative:
The customer focuses simply on value, seeing it as a
ratio of quality over priceOnly when we offer more
value than our competitor do we really succeed.
- Professor Godfrey, A. Blanton (2002), "What is Quality?" Quality
Digest, January, pp. 12.
2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

Quality Engineering & Management Module 1.1

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Defining Quality
Quality has several dimensions:
Performance - Features - Reliability Conformance
Durability - Serviceability - Aesthetics Perceived Quality

Quality must be defined for each product based on what the

customer wants in the product through measurable characteristics
and their limits of variability

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

Quality Engineering & Management Module 1.1

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Defining Quality
Quality is always relative to a set of requirements.
Functional (breakdown)
Subjective (optical, aesthetic)

Quality meets or exceeds customer expectations.

What is Non-Quality?
2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

Quality Engineering & Management Module 1.1

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Defining Quality
"It takes 20 years to build a reputation and five minutes
to ruin it. If you think about that, you'll do things
differently. (Warren Buffett)

Holly Ott

Quality Engineering & Management Module 1.1

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Past View of Quality Management

Preconception: Quality is
Testing
Costly
Re-active

Holly Ott

Quality Engineering & Management Module 1.1

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Historical Overview

1920s: Bell Laboratories

Dr. Walter A. Shewhart: Statistical control
charts / Drs. Harold Dodge & Harry Romig:
Sampling plans

1920s: Sir Ronald Fisher / 1950s: Dr. Genechi

Taguchi: product and process D.O.E. for
engineers.

1940s: WWII: Statistical methods used in the

production of goods and ammunition for the
U.S. military

Post-War 1950s: development of the science of

reliability

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

Quality Engineering & Management Module 1.1

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Historical Overview

1950: Edward Deming Toyota Production

System (Lean Manufacturing)

1980s: Motorola Six-Sigma Process :

systematic, problem-solving approach

1987: Creation of Standards for Quality

Assurance by the International Organization for
Standardization (ISO 9000)

Today: acceptance of Quality as a strategic

parameter for business planning

Consumer awareness of quality

2012 from "A First Course in Quality Engineering: Integrating Statistical

and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

Quality Engineering & Management Module 1.1

10

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Statistics in Quality Six Sigma

Source of Graph: Automotive News Europe (Supplement), March 2008

Example: Assume a car consists of 10,000 parts and production processes.

Scenario A: Failure rate per part of 6,210 ppm (4 sigma)
Would be 100% faulty vehicles.
Scenario B: Stable processes with 3.4 ppm per part (6 sigma)
Roughly
Holly Ott
Quality Engineering & Management
Module 1.1 97% fault-free vehicles.
11

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Today's View of Quality Management

Source: Manfred Seika own image (orange icons are examples only)

Holly Ott

Quality Engineering & Management Module 1.1

12

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

QM is Interdisciplinary
Communication

CSR

Sociology
Communication
Design

Marketing

Ethics
Organisational

Statistics
Engineering

Finance

Production
Law

Business
Supply Chain

Source: Manfred Seika own image (orange icons are examples only)

Holly Ott

Quality Engineering & Management Module 1.1

13

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Coming Up
Lecture 1.2 Understanding Customer
Expectations

Holly Ott

Quality Engineering & Management Module 1.1

14