Chester M.

Chua
 Ability of a product or service to consistently
meet or exceed customer requirements or
expectations
 Product Quality
 Service Quality
 Performance
 Aesthetics
 Special Features
 Conformance
 Reliability
 Durability
 Perceived Quality
 Serviceability
 Convenience
 Reliability
 Responsiveness
 Time
 Assurance
 Courtesy
 Tangibles
 Consistency
 Design – Decision about the specific
characteristics of a product or service
 Quality of conformance – Degree to which
goods and services conforms to the intent of
the designer
 Ease of use
 Service after delivery
 Enhance reputation
 Ability to command premium prices
 Increased market share
 Greater customer loyalty
 Lower liability costs
 Fewer production or service problems
 Loss of business
 Liability
 Productivity
 Cost
 Cost of Quality is 5x larger than its production
cost
 Production Cost
 Appraisal Cost – Inspection, testing, and
activities to uncover defective products and
services
 Prevention Cost – Reducing the potential for
quality problems
 Internal and External Failure Cost
 Failures discovered during the production
process
 Lost of production time
 Scrap
 Rework
 Investigation cost
 Equipment damage
 Employee injury
 Failures discovered after the delivery to the
customer
 Warranty work
 Handling complaints
 Replacements
 Liability / litigation
 Payments to customers
 Loss of opportunity cost
 Refers to a quest for quality in an
organization
 Key philosophies:
 Continuous improvement
 Involvement of everyone
 Customer satisfaction
 Find out what the customer wants
 Design a product or service that will meet or
exceed the expectations
 Design processes that facilitate doing the job
right the first time
 Keep track of results, as guide for
improvement
 Extend concepts to other departments
 Continuous Improvement
 Competitive Benchmarking – Analyzing how other
companies work to improve or be adopted by the
company
 Employee Empowerment
 Team Approach
 Decision based on Facts than Opinions
 Knowledge of Tools
 Supplier Quality
 TQM Champion – one who promotes the value and
importance of TQM
 Quality at the Source
 Process Suppliers or Partners
 Lack of company-wide definition of quality
 Lack of strategic plan for change
 Lack of customer focus
 Poor intra-organizational communication
 Lack of employee empowerment
 View of quality as “quick-fix” / immediate
remedy
 Emphasis on short-term financial results
 Inordinate presence of internal politics
 Lack of strong motivation of employees
 Lack of time to devote to quality initiatives
 Lack of leadership
 Define the problem and establish an
improvement goal
 Develop performance measures and collect
data
 Analyze the problem
 Generate potential solutions
 Choose a solution
 Implement the solution
 Monitor the solution to see if it accomplishes
the goal
 Conceptual framework of problem solving
activities
 Plan – Studying the current processes, collect and
analyze data formulate the plan
 D0 – Implement the plan
 Study – Assess the implemented plan
 Act – Standardize improvements
 Map the process
 Analyze the process
 Redesign the process
 Flowcharts
 Check Sheets
 Histogram
 Pareto Analysis
 Scatter Diagram
 Control Charts
 Cause-and-Effect Diagrams
 Run Charts – used to track the values of a
variable over time