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Quality Concepts
Quality is not an art, it is a habit Aristotle

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

After studying this chapter, you should be able to:

Understand various definitions and importance of quality Describe different types and levels of quality Explain Five Paradigms of quality

Understand eight dimensions of product quality and determinants of service quality

Describe the difference between old quality and new quality

Understand the cost of poor quality

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Learning Objectives

Conformance to requirements (Crosby 1979) Fitness for use (Juran 1979) Continual improvement (Deming 1982) As defined by the customers (Ford 1984, 1990) Loss to Society (Taguchi 1987)

Six sigma (Harry and Stewart- Motorola) 1988

Zero defects (Crosby 1979) Meeting and Exceeding present and future requirements of customer on a continuous basis (Charantimath)

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Common Definitions of Quality

The Transcendent approach The product based approach The user based approach

The manufacturing based approach

The value based approach

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Five Approaches to Defining Quality

Quality management It is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. Quality management is focused not only on product quality, but also the means to achieve it. Quality management can be considered to have three main components: quality control, quality assurance, quality improvement.

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Quality Management

Quality increases profits in addition to image of the company. Things done right 99.9% of the time means:

One hour of unsafe drinking water per month Two unsafe landings at OHare Airport each day 16,000 lost pieces of mail per hour 20,000 incorrect drug prescriptions per year

500 incorrect surgical operations per week

50 newborn babies dropped each day by doctors 22,000 checks per hour deducted from wrong accounts

32,000 missed heartbeats per person each year

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Importance of Quality

Quality Fitness for use

Quality of design Product features

Quality of conformance Freedom from deficiencies

Quality of performance - Profit

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Quality and Profit

Quality of Design Quality of Conformance Quality of Performance

Classification of Quality:

Indifferent quality Expected quality One-dimensional quality Exciting quality

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Types of Quality

Organizational level Process level

The performer/job level/task design level

Charantimath

Total Quality Management

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Three Levels of Quality

Customer-Craft Paradigm Mass Production Paradigm Statistical Quality Control Paradigm Total Quality Management Paradigm Techno-Craft Paradigm

Charantimath

Total Quality Management

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Five Paradigms of Quality

Performance Features Reliability Conformance Durability Serviceability Aesthetics

Perceived quality.

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Dimensions of Product Quality

Reliability Assurance Tangibles Empathy Responsiveness

Charantimath

Total Quality Management

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Dimensions of Service Quality

Old Quality (Little q) About products Technical Led by experts About control

New Quality (Big Q) About organisation Strategic Led by management About improvement

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Old Quality Vs New Quality

Quality Costs

CONFORMANCE

NON-CONFORMANCE

PREVENTION

APPRAISAL

INTERNAL FAILURE

EXTERNAL FAILURE

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Cost of Quality

Costs

Zone of improvement projects 100% Defective

Zone of indifference Quality of conformance Optimum

Zone of high appraisal costs 100% Good

Total quality cost curve

Prevention & Appraisal costs

Failure costs

ECL ECL= Economic conformance level

Conformance level

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Total Quality Cost Curve

Defect Rate

Sporadic loss

Chronic loss

Optimal

Zero defects

Time

Charantimath

Total Quality Management

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Sporadic and Chronic Quality Problems

Cost bases measured by cost ratio Sales bases measured by sales ratio Labour/Wage bases measured by labour ratio

Unit/ Number bases measured by unit ratio

Charantimath

Total Quality Management

Copyright Dorling Kindersley India Pvt Ltd

Quality Cost Indices