Chapter 2 Quality Management EXAM 3 Review Guide WHAT IS QUALITY Quality is in the eye of the beholder Quality can have two meanings 1 The characteristics of a product or service that bear on its ability to satisfy stated or implied needs and 2 A product or service free of de ciencies QUALITY FROM THE CUSTOMER S PERSPECTIVE A rm must consider how the consumer de nes quality The customer can be a manufacturer a store owner or someone who purchases a product or service Since customers have different product needs they will have different quality expectations Fitness for use is how well the product or service does what it is supposed to Quality of design Involves designing quality characteristics into a product or service Example Although designed for the same use the Mercedes and Ford differ in their performance features size and various other quality characteristics DlMENSlONS OF QUALITY FOR MANUFACTURED PRODUCTS 1 Performance The basic operating characteristics of a product Example How well a car handles or its gas mileage 2 Features The extra items added to the basic features Example A stereo CD or a leather interior in a car 3 Reliability The probability that a product will operate properly within an expected time frame Example A TV will work without repair for about 7 years 4 Conformance The degree to which a product meets pre established standards 5 Durability How long the product lasts its life span before replacement Example A pair of L L Bean boots with care might be expected to last a lifetime 6 Serviceability The ease of getting repairs the speed of repairs and the courtesy and competence of the repair person 7 Aesthetics How a product looks feels sounds smells or tastes 8 Safety Assurance that the customer will not suffer injury or harm from a product an especially important consideration for automobiles 9 Other perceptions Subjective perceptions based on brand name advertising and the like DIMENSIONS OF QUALITY FOR SERVICES Service quality is more directly related to time and the interaction between employees and the customer 1 Time and timeliness How long a customer must wait for service and if it is completed on time Example An overnight packaged actually delivered overnight 2 Completeness If everything the customer asked for is provided Example If a mail order from a catalogue company is complete when delivered 3 Courtesy How customers are treated by employees Example If the catalogue phone operators are nice and have pleasant voices 4 Consistency If the same level of service is provided to each customer each time Example If your newspaper is delivered on time every morning 5 Accessibility How easy it is to obtain the service Example When you call a company if the service representative answers quickly 6 Accessibility and convenience If the service is performed right every time Example If your bank or credit card statement is correct every month 7 Responsiveness How well a company reacts to unusual situations which can happen frequently in a service company Example How well a telephone operator is able to respond to a customer s questions QUALITY FROM THE PRODUCER S PERSPECTIVE The way a producer or service provider sees quality is how value is created Quality of conformance Is making sure the product or service is produced according to design Achieving quality of conformance involves design materials and equipment training supervision and control The quality characteristics included in the product design must be balanced against production costs A FINAL PERSPECTIVE ON QUALITY The nal determination of quality is tness for use which is the customer s view of quality It is the consumer who makes the nal judgment regarding quality and so it is the customer s view that must dominate QUALITY MANAGEMENT SYSTEM To make sure that products and services have the quality they have been designed for strategy to achieve quality throughout the organization is required This approach to the management of quality throughout the entire organization has evolved into what is generally referred to as a quality management system QMS THE EVOLUTION OF QUALITY MANAGEMENT Of the quality gurus W Edwards Deming has been the most prominent He is a major gure in the Japanese quality movement and in Japan he is frequently referred to as the father of quality control He introduced statistical quality control Deming s approach to quality management advocated continuous improvement of production process to achieve conformance to speci cations and reduce variability He identi ed two primary sources of process improvement eliminating common causes of quality problems such as poor product design and insufficient employee training and eliminating special causes such as speci c equipment or an operator He claimed that primary responsibility for quality improvement was employee s and management s Deming s overall philosophy for achieving improvement is embodied in his 14 points The Deming wheel is a four stage process for continuous quality improvement that complements Deming s 14 points Plan Do Study Check Act QUALITY TOOLS PROCESS FLOWCHARTS The seven well known tools for identifying quality problems and their causes are sometimes called the magnificent seven Process owchart A diagram of the steps in a job operation or process Help focus on where in a process a quality problem might exist CAUSE AND EFFECT DIAGRAMS Cause and effect diagram or shbone diagram A chart showing the different categories of problem causes Cause and effect diagrams are usually developed as part of brainstorming to help a quality team of employees and managers identify causes of quality problems Cause and effect matrix A grid used to prioritize causes of quality problems CHECKSHEETS AND HISTOGRAMS A check sheet is a list of causes of quality problems with the number of defects resulting from each cause used to develop a bar chart called a histogram A check sheet is a fact nding tool for tallying the number of defects for a list of previously identi ed problem causes A histogram is a diagram showing the frequency of data related to a quality problem PARETO ANALYSIS SCATTER DIAGRAMS Pareto analysis A method of identifying the causes of poor quality Devised by quality expert Joseph Juran Based on the nding that most quality problems and costs result from only a few causes A diagram for tallying the percentage of defects resulting from different causes to identify major quality problems A graph showing the relationship between two