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Introduction Introduction
Introduction Introduction
CUSTOMER SATISFACTION
Quantified Definition
Q=P/E
Q = Quality
P = Performance
E = Expectation
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Quality !
What is Quality? In the 21st Century. “Quality” has become a common norm for success in
business.
• Quality refers to the characteristics of a product or
service that defines its ability to consistently meet or After World War II, the Japanese targeted two things:
exceed customers expectation. Quality and Price
• Quality revolution started in Japan after World War II
Their views about “Quality” differs from the views of the North Americans.
• Increased quality means decreased cost.
• Honda and Toyota accounts for 20% of the automotive They define - “Level of customer satisfaction determines level of quality”.
sales in USA.
While many U.S. companies measure poor quality in terms of
defectives per hundred,
many Japanese firms have achieved such a high level of quality that they measure
poor quality in terms of defectives per million units produced.
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Quality: Consumers perspective
Introduction
What does a consumer expect from a product (or service) ?
Or, alternatively, what are the “customer requirements” ?
Dimensions of Quality
1. Performance – technical excellence
• Functionality – core features and characteristics 2. Conformance – as per specification
• Reliability – durability 3. Reliability – can be relied upon
4. Durability
• Usability – user friendly
5. Innovative and essential functions
• Maintainability – ease with which a product can be 6. After-sales service – technical help when ever required,
maintained in original condition – availability of spare parts
• Efficiency – output to input ratio – proximity and easy access to maintenance
• Aesthetics – attractive 7. Ease of use – Windows against Linux
8. Aesthetics –especially important for consumer goods
• Serviceability – how well the customer is treated
9. Others – e.g. safety, health issues, green product, etc.
Note: keeping “price/cost” aside, as a separate function
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Introduction Cost of Quality
Quality – Expensive???
Prevention
Cost of control
• Prevention cost (Conformance)
• Appraisal cost
Appraisal
Cost of
• Internal Failure cost Quality Internal
• External Failure cost
Cost of failure to failure
control
(Nonconformance) External
Failure
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Cost of Quality Cost of Quality
Conformance: This cost incurs for ‘achieving quality’.
• Non- Conformance: This cost is ‘for loosing Planning- well structured plan for prevention of defects, in order
quality’. to do the right things the first time. It includes continues
improvement plan as well.
Rework- Doing the job over again, because it Documentation- A paperwork, which includes written
wasn’t right the first time instructions. Standard operating procedures (SOP), technical
records, etc.
Scrap- Throwing away outputs of production
Training- Continuous training to keep the workforce up to date on
process, because it is not up to the required recent developments on quality, interpret and follow basic
standard. operating procedures, etc.
Auditing- Internal and external audit to ensure conformance to
Down time-Not being able to do the job, requirements and any improvements required.
because a machine is out of order. Inspection: Regular invigilation to sort out conforming and
nonconforming items.
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Optimum Quality Cost Old or Traditional quality control system emphasizes on inspection
activity, which aims at –
“finding bad parts and segregating those
1st Image: Juran Model of Quality such that the products can not pass”
Costs (zone of perfection, zone of
indifference, zone of whereas
improvement projects).
2nd Image: Alternative view The TQM approach is
(prevention and appraisal cost “Try to build a system which leads to defect-free environment”.
curve flattens out after a certain
degree of perfection is achieved)
Emphasis should be on defect prevention,
rather than on correction,
so that routine inspection will not be
needed to a large extent.
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Introduction Evolution of Modern Concepts
• Early stage: Inspection based Quality. Inspection aimed at sorting and
Inspection grading the output. Corrective action took place at the end of the
Pre World War 2 production line, when wastes are already created.
• The next stage: Statistical Quality Control (Sample based inspection
QUALITY Control system instead of heavy inspection- random samples are taken to test
the level of quality of a process). Necessary actions used to be taken
when the system goes out of the limits.
QUALITY Assurance • The third stage: Quality Assurance phase- stress was on providing
some advance assurance of quality of the service/products.
• Last and current stage:
Post World War 2 QUALITY Management Total Quality Management(TQM)- quality is not
the responsibility of two departments only rather
TQM than the entire organizations.
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Evolution of modern concepts of quality
Introduction
Criterion Stage 1 Stage 2 Stage 3 Stage 4
Inspection based SPC/SQC QA TQM
Objective Measurement of Statistical Developing a Responsibility for all,
specifications for Process Control capable process for and continuous
conformance for analyzing advance assurance, improvement, Internal
process documentation and and external customer
capability audit satisfaction
Responsibility Quality control Quality control All departments Top management
for quality and production and production leadership with
departments departments involvement of all,
including external
stakeholders (e.g.
suppliers, etc.)
Difference Between Quality Assurance & Contributions of the different quality experts:
Quality Control
Contributor Known for
Criteria Quality Assurance (QA) Quality Control (QC)
Dr. Edward Deming - SPC/SQC; 14 points for improvement;
- Systematized ideas on many TQM techniques,
Definition QA is a set of activities for QC is a set of activities for
ensuring quality in the ensuring quality in products. such as Deming wheel
processes by which The activities focus on Joseph Juran - Quality trilogy (3 major points for quality);
products are developed. identifying defects in the - Demonstrated some ideas in Western Electric, USA
actual products produced.
Philip Crosby - Zero defects;
- Economics of quality
Type of action Proactive Reactive Kaoru Ishikawa - Cause-and-effect diagrams;
- Quality circles
Responsibility Everyone on the team Quality control is usually the
involved in developing the responsibility of a specific Walter Shewhart - Shewhart PDCA cycle (Deming wheel later on) -
product is responsible for team that tests the product Control charts
quality assurance. for defects.
Dr. Shigeo Shingo Zero Quality Control (ZQC), TPM (Total Productive
Maintenance), Pokayoke (Mistake-proof system),
As a tool QA is a managerial tool QC is a corrective tool
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SMED (Single Minute Exchange of Die), etc.