Unit 1 Quality Concepts

Evolution of Quality Management

Quality management has been a part of many different cultures throughout history. It is nothing new and
can be traced as far back as 2000 BC in Babylonia. King Hummurabi of Babylon introduced the concept of
product quality and liability into the building industry of the times. In the time of Egyptian pharaohs, the
burial of the nobility was documented systematically. The manner of carrying out the necessary rituals and
the funerary goods to be buried with the deceased are stated in each Book of the Dead. A systematic
document is one of the fundamentals in quality management to ensure consistency. The same steps will be
followed by different persons performing the same task. In doing so, the deviation from the requirements can
be minimized.

The first Emperor of China, Qin Shi Huangdi, decreed that all goods supplied for use in the imperial
household should carry a mark so that any maker who produced goods with faults could be traced and
punished. During the middle Ages, merchant guilds were established to guarantee the quality of
workmanship and to define the standards to be expected by the buyers. The emergence of mass production in
the twentieth century increased the demand of control of product quality. In addition, the demand of
consistency in ammunition in war times pushed the need for more stringent product quality. If we look back
at this brief history of the development of quality management, it can be seen that we have gone through
various phases from quality control to quality assurance and ultimately to total quality management.

(i) Quality Control

Quality control is basically concerned with complying with requirements by inspecting the products and
eliminating nonconforming items. It does not address the root causes of nonconforming. This type of control was
developed during World War II to ensure the consistency of ammunition being produced.

(ii) Quality Assurance

Similar to quality control, quality assurance originated from the military’s need for consistency of military
hardware. The success of Japanese manufacturers during the 1960s and 1970s shifted the focus from quality
control to quality assurance. In comparison to quality control though, quality assurance focuses on the procedure
of compliance and product conformity to specification through activities such as vendor appraisal, line or shop
floor trouble shooting, laboratory work, field problems and method development in the production process.
However, quality assurance is still basically an inspection process, though it checks more than just the product.

(iii) Total Quality Control

Total quality control is an expansion of quality control from manufacturing to other areas of an
organization. The concept was introduced by the American scholar Dr Armand Feigenbaum in the late
1950s. The Japanese adopted this concept and renamed it as company-wide quality control (CWQC). It tries
to look for long term solutions rather than responding to short term variations. It focuses on pursuit of
quality through elimination of waste and non-value-added process. Also, the concept is to expand quality
control beyond the production department. Quality control should be covered all the other departments of an
organization such as marketing, design, accounting, human resources, logistics and customer services.
Quality is not just the responsibility of production.
(iv) Total Quality Management (TQM)

Total quality management (TQM) evolved from the Japanese after World War II with the inspiration from
quality experts like Juran and Deming. As it evolved, it changed from process driven by external controls to
a customer oriented process. Quality is achieved through prevention rather than inspection. It shifts the main
concept from control to management. No matter how stringent the control there is still a chance to have
mistakes or defectives. The concept of management is to have a strategic plan starting from identifying
customer requirements to after-sales services to producing product meetings or exceeding the customer
requirements.

From the evolution of quality management, we can also identify some key attributes of quality. We start by
producing product in a consistent manner by meeting the necessary requirements. It is important to trace and
isolate defective items preventing further usage. If it is found that a certain batch of products has safety problems
after being sold in the market, it is important that it can be identified and recalled. Means are developed to control
quality at the initial stage.

This is primary achieved through inspection. Later, the scope was shifted to quality assurance. That is,
mechanisms are developed to ensure the production process conforms to the requirements of producing good
products. The concept of control was extended beyond the production department to include all departments of an
organization. To deliver quality product, it requires cooperation and integration of all departments. If the logistics
department does not ship the products on time, the customer will not be happy. At the final stage, quality should
not rely on control only. Quality is built upon by customer focus, defect prevention and so on. This is total quality
management.

Concepts of Product and Service Quality

It is not easy to define the word Quality since it is perceived differently by the different set of individuals. If
experts are asked to define quality, they may give varied responses depending on their individual preferences.
These may be similar to following listed phrases.

According to experts, the word quality can be defined either as;

 Fitness for use or purpose.

 To do a right thing at first time.
 To do a right thing at the right-time.
 Find and know what consumer wants?
 Features that meet consumer needs and give customer satisfaction.
 Freedom from deficiencies or defects.
 Conformance to standards.
 Value or worthiness for money, etc.

Product Quality

“Product quality means to incorporate features that have a capacity to meet consumer needs (wants) and gives
customer satisfaction by improving products (goods) and making them free from any deficiencies or defects.”

Meaning of Product Quality

Product quality mainly depends on important factors like:

 Concepts of Product and Service Quality
It is not easy to define the word Quality since it is perceived differently by the different set of individuals.
If experts are asked to define quality, they may give varied responses depending on their individual
preferences. These may be similar to following listed phrases.

According to experts, the word quality can be defined either as;

 Fitness for use or purpose.

 To do a right thing at first time.
 To do a right thing at the right-time.
 Find and know what consumer wants?
 Features that meet consumer needs and give customer satisfaction.
 Freedom from deficiencies or defects.
 Conformance to standards.
 Value or worthiness for money, etc.

Product Quality

“Product quality means to incorporate features that have a capacity to meet consumer needs (wants)
and gives customer satisfaction by improving products (goods) and making them free from any
deficiencies or defects.”

Meaning of Product Quality

Product quality mainly depends on important factors like:

(i) The type of raw materials used for making a product.

(ii) How well are various production-technologies implemented?

(iii) Skill and experience of manpower that is involved in the production process.

(iv) Availability of production-related overheads like power and water supply, transport, etc.

Product quality has two main characteristics viz; measured and attributes.
1. Measured characteristics

Measured characteristics include features like shape, size, color, strength, appearance, height, weight, thickness,
diameter, volume, fuel consumption, etc. of a product.

2. Attributes characteristics

Attributes characteristics checks and controls defective-pieces per batch, defects per item, number of mistakes per
page, cracks in crockery, double-threading in textile material, discoloring in garments, etc.

Based on this classification, we can divide products into good and bad.

Concepts of Product and Service Quality

It is not easy to define the word Quality since it is perceived differently by the different set of individuals. If
experts are asked to define quality, they may give varied responses depending on their individual preferences.
These may be similar to following listed phrases.

According to experts, the word quality can be defined either as;

 Fitness for use or purpose.

 To do a right thing at first time.
 To do a right thing at the right-time.
 Find and know what consumer wants?
 Features that meet consumer needs and give customer satisfaction.
 Freedom from deficiencies or defects.
 Conformance to standards.
 Value or worthiness for money, etc.

Product Quality

“Product quality means to incorporate features that have a capacity to meet consumer needs (wants) and gives
customer satisfaction satisfaction by improving products (goods) and making them free from any deficiencies or
defects.”

Meaning of Product Quality

Product quality mainly depends on important factors like:

(i) The type of raw materials used for making a product.

(ii) How well are various production-technologies implemented?

(iii) Skill and experience of manpower that is involved in the production process.

(iv) Availability of production-related overheads like power and water supply, transport, etc.
 Product quality has two main characteristics viz; measured and attributes.

1. Measured characteristics

Measured characteristics include features like shape, size, color, strength, appearance, height,
weight, thickness, diameter, volume, fuel consumption, etc. of a product.

2. Attributes characteristics

Attributes characteristics checks and controls defective-pieces per batch, defects per item, number of mistakes
per page, cracks in crockery, double-threading in textile material, discoloring in garments, etc.

Based on this classification, we can divide products into good and bad. So, product quality refers to the total of

the goodness of a product.

The (5) five main aspects of product quality are depicted and listed below:
(i) Quality of design: The product must be designed as per the consumers’ needs and high-
quality standards.

(ii) Quality conformance: The finished products must conform (match) to the product
design specifications.

(iii) Reliability: The products must be reliable or dependable. They must not easily
breakdown or become non-functional. They must also not require frequent repairs. They must
remain operational for a satisfactory longer-time to be called as a reliable one.

(iv) Safety: The finished product must be safe for use and/or handling. It must not harm
consumers in any way.

(v) Proper storage: The product must be packed and stored properly. Its quality must be
maintained until its expiry date.

Company must focus on product quality, before, during and after production:

Importance of Product Quality

Image depicts importance of product quality for company and consumers.

 (i) For Company: Product quality is very important for the company. This is because; bad quality
products will affect the consumer’s confidence, image and sales of the company. It may even affect the survival of
the company. So, it is very important for every company to make better quality products.

(ii) For Consumers: Product quality is also very important for consumers. They are ready to pay
high prices, but in return, they expect best-quality products. If they are not satisfied with the quality of product of
company, they will purchase from the competitors. Nowadays, very good quality international products are
available in the local market. So, if the domestic companies don’t improve their products’ quality, they will
struggle to survive in the market.

Dimensions of Quality
Important Dimensions of Quality formulated by David A. Garvin

David A. Garvin, a specialist in the area of quality control, argues that quality can be used in a strategic way to
compete effectively and an appropriate quality strategy would take into consideration various important
dimensions of quality

Eight dimensions of product quality management can be used at a strategic level to analyze quality
characteristics. The concept was defined by David A. Garvin, formerly C. Roland Christensen Professor of
Business Administration at Harvard Business School (died 30 April 2017). Some of the dimensions are
mutually reinforcing, whereas others are not—improvement in one may be at the expense of others.
Understanding the trade-offs desired by customers among these dimensions can help build a competitive
advantage.

Garvin’s eight dimensions can be summarized as follows:

1. Performance

It involves the various operating characteristics of the product. For a television set, for example, these
characteristics will be the quality of the picture, sound and longevity of the picture tube.

2. Features

These are characteristics that are supplemental to the basic operating characteristics. In an automobile, for
example, a stereo CD player would be an additional feature.

3. Reliability

Reliability of a product is the degree of dependability and trustworthiness of the benefit of the product for a long
period of time.

It addresses the probability that the product will work without interruption or breaking down.

4. Conformance

It is the degree to which the product conforms to pre- established specifications. All quality products are expected
to precisely meet the set standards.
5. Durability

It measures the length of time that a product performs before a replacement becomes necessary. The durability
of home appliances such as a washing machine can range from 10 to 15 years.

6. Serviceability

Serviceability refers to the promptness, courtesy, proficiency and ease in repair when the product breaks down
and is sent for repairs.

7. Aesthetics

Aesthetic aspect of a product is comparatively subjective in nature and refers to its impact on the human senses
such as how it looks, feels, sounds, tastes and so on, depending upon the type of product. Automobile companies
make sure that in addition to functional quality, the automobiles are also artistically attractive.

8. Perceived quality

An equally important dimension of quality is the perception of the quality of the product in the mind of the
consumer. Honda cars, Sony Walkman and Rolex watches are perceived to be high quality items by the
consumers.

Quality Philosophies: Deming’s

Deming’s 14 Points on Quality Management, or the Deming Model of Quality
Management, a core concept on implementing total quality management (TQM), is a set of
management practices to help companies increase their quality and productivity.

As a management consultant, William Edwards Deming is known for the so-called PDCA (Plan-Do- Check-Act)
Circle. Herein he emphasizes the importance of continuous improvement within an organization, as opposed to
making changes after the fact.

Deming’s 14 points for Management were first presented in his book Out of the Crisis. With the 14 important
management principles he offered a way to drastically improve the company’s effectiveness. Many of these
management principles are philosophical in nature, and some are more programmatic.

1. Create constancy of purpose

Strive for constant improvement in products and services, with the aim of becoming competitive and ensuring
consistency in the way business is done, which will ensure retention of employment. Do not just make
adjustments at the end of the production process, but evaluate if improvements are necessary during the process
and get started immediately.

2. The new philosophy

A new (economic) time offers new chances and challenges, and management must take responsibility for being
open to such changes. Without change, a company cannot sustain itself in a time when innovation occurs every
day.
3. Cease dependence on inspection

End the dependence on inspections and final checks to ensure quality. It is better to that quality checks take place
during the process so that improvements can be made earlier. This section links back to the first point, which
promotes the importance of interim improvements.

4. End ‘lowest tender’ contract

Move towards a single supplier for any one item. Stop doing business and negotiate with suppliers based on the
lowest price. It is worthwhile in the long term to build a good and long-standing relationship with suppliers, which
fosters trust and increases loyalty. An organization should be able to rely on their suppliers; they supply the parts
for the production line and are the first link to a high quality product.

5. Continually seek out problems

Improve constantly and forever. Continuous process improvement of production and service results in improved
quality and productivity, which in turn leads to cost reduction. This part also relates to the first and third points.
Improved quality leads to less waste of other raw materials, which subsequently has a cost-effective effect.

6. Institute training on the job

Training and development of employees is necessary for the survival of an organization. By integrating it into the
organization, it will be considered as normal for the employees, as part of their Personal Development Plan.

7. Institute supervision

Adopt and institute leadership. Leadership needs to be stimulated. By leading and supervising, managers are able
to help employees and make machines work better. Their helicopter view ensures that they can see everything that
happens on the workplace. They will also have to delegate more tasks so that they can fully focus on the big
picture.

8. Drive out fear

Fear is paralyzing. Therefore, fear must be eliminated on the work floor so that everyone can work
effectively for the company, feel safe and take risks. Transparent communication, motivation, respect and
interest in each other and each other’s work can contribute to this.

9. Break down barriers

By eliminating the boundaries between departments, cooperation can be better and different expert teams will
understand each other better. This can be done by, for example, the creation of multifunctional teams, each with
an equal share and open to each other’s ideas.

10. Eliminate exhortations

Remove ‘stimulating’ slogans from the workplace. Such slogans, warnings and exhortations are perceived as
being patronizing. Quality and production problems do not arise from the individual
 Employee, but from the system itself.

11. Eliminate targets

No more focus on achieving certain margins; that impedes professionals from performing their work well and
taking the necessary time for it. Rushing through the work can cause production errors. Managers should
therefore focus on quality rather than quantity.

12. Permit pride of workmanship

Let employees be proud of their craftsmanship and expertise again. This relates back to the eleventh point.
Employees feel more satisfaction when they get a chance to execute their work well and professionally, without
feeling the pressure of deadlines.

13. Institute education

Integrate and promote training, self-development and improvement for each employee. This directly connects to the
sixth point. By encouraging employees to work for themselves and to see their studies and training as a self-evident
part of their jobs, they are able to elevate themselves to a higher level.

14. The transformation is everyone’s job

Transformation is the work of everyone. Set forth concrete actions to implement and realize transformation and
change throughout the organization.

Quality Philosophies: Juran’s

Juran was a great Founding Father of quality, and was responsible for the famous Juran Trilogy concept. Juran’s
approach to quality control had Japanese roots. While Japan was price-competitive with the rest of the world, the
quality of product did not measure up. This quality philosophy consists of three steps: Quality Planning, Quality
Control and Quality Improvement.
1. Quality Planning

The quality planning phase is the activity of developing products and processes to meet customers’ needs.
Involves building an awareness of the need to improve, setting goals and planning for ways goals can be
reached. This begins with management’s commitment to planned change. It also requires a highly trained
and qualified staff. It deals with setting goals and establishing the means required to reach the goals. Below
are the steps in the quality planning process?

 Establish quality goals

 Identify the customers: those who will be impacted by the efforts to meet the goals
 Determine the customer’s needs
 Develop processes that can produce the product to satisfy customers’ needs and meet quality goals under
operating conditions.
 Establish process controls, and transfer the resulting plans to the operating forces

(ii) Quality Control

This process deals with the execution of plans and it includes monitoring operations so as
to detect differences between actual performance and goals. Means to develop ways to test products
and services for quality. Any deviation from the standard will require changes and improvements. It
is outlined with three steps:

 Evaluate actual quality performance

 Compare actual performance to quality goals
 Act on the difference

(iii) Quality Improvement

It is a continuous pursuit toward perfection. Management analyses processes and systems and reports back
with praise and recognition when things are done right this is the process is for obtaining breakthrough in
quality performance, and it consists of several steps:

 Establish the infrastructure needed to secure annual quality improvement

 Identify the specific needs for improvement- the improvement projects
 Establish project teams with clear responsibility for bringing the project to a successful conclusion
 Provide the resources, motivation, and training needed by the teams to- diagnose the cause, stimulate
establishment of remedies, and establish controls to hold the gains.

Crosby’s Quality Philosophy

The 14 Steps of Crosby – Philip Crosby, not Bing Crosby – formulate a program for Total Quality
Management efforts. Crosby’s fourteen steps rely on the foundational thought that any money a company
spends upon quality improvement is money that is well-spent. In Crosby’s theory, he cites four absolutes of
quality management:

A company ought to define quality not as something that is “good” or something that is “exquisite” but
instead as something that conforms to company, stakeholder, or end-user requirements.

Quality starts with prevention – defects should be prevented rather than found after the fact. By preventing
defects and other obstacles to quality, companies save money.
 The standard for performance for any company needs to be “zero defects.” Otherwise, it just doesn’t cut it.

In order to measure quality, rather than relying upon intricate indices, companies need to focus on the Price
of Non-conformance. The price of non-conformance, sometimes called the cost of quality, is a measure of the
costs associated with producing a product or service of low quality.

The 14 Steps of Crosby are meant to keep your quality improvement project on track.

1. Commitment of Management

First and foremost, management must be committed to improving the quality in a company. This commitment
must also be transparent to all employees so that proper attitudes towards a Zero Defect product or service
line are modeled.

2. Formulate the Quality Improvement Team

Forming a quality improvement team is the second step to achieving total quality management. Search for
team members who will model quality improvement commitment, and who is not already over- committed to
other projects. The quality improvement team should be able to effectively commit themselves to
improvement of quality.

3. Measure for Quality in Current Practices

Before you can establish a plan for improving quality, you first have to know exactly where your products
and services lie when it comes to conforming to requirements. Thus, the third step on Crosby’s list is to
measure quality. Determine where there is room for improvement and where potential for improvement
exists.

4. What Will the Cost of Quality Be?

How much is your cost of non-conformance to standards? What is the cost for quality? By answering these
questions, you can demonstrate to all company employees that there is a need for a quality improvement
system. Explain how the cost of quality figures into the overall company plan.

5. Quality Awareness is Central to Success

You will need to raise employee awareness to the importance of quality management. By doing this, and
making quality a central concern to employees, you will increase the likelihood that your quality
improvement efforts will be realized.

6. Remember the Quality Problems? Take Corrective Action

By now, you will have determined what your company’s quality problems are. It is now time to
take corrective action to eliminate the defects that have been identified. Be sure that you install a
system, using causal analysis techniques, to ensure that these problems don’t reoccur in the future.

7. Plan for Zero Defects

You need to create a committee to ensure that there are zero defects in your products and services. For
 Crosby, it’s not enough, remember to have “as few as possible” defects. Instead, you really need to have
this number at zero – establish a zero-defect tolerance in your company.

8. Practice Effective Training for Supervisors

Ensure that your supervisors can carry out the tasks required of them for maintaining quality. By practicing
supervisor training, with quality in mind (and the four absolutes), then you will be more likely to achieve
zero-defect status.

9. Happy Zero Defects Day!

Hold a quality event, called a zero defects day, where all employees are made
aware of the change that has taken place. By holding a zero defects day in your company
when implementing a total quality management project, you can be sure that you are
increasing awareness for quality in your workplace.

10. Involve Everyone in Goal Setting

After implementing a change, you will need to ensure that you involve everyone – both employees and
supervisors – in the goal setting process. By bringing everyone in the company in on setting goals for
improvement, you can ensure greater commitment to achieving zero defects.

11. Eliminate Causes of Errors

Error-cause removal is necessary for the successful implementation of any quality improvement effort.
Encourage your employees to come to management with any obstacles or issues that arise in attempting to
meet improvement goals. By having employees communicate obstacles before they become crises, you can
avert many of the dampers for quality improvement efforts.

12. Implement Recognition for Participants

The twelfth step of Crosby’s 14 Steps is the implementation of employee recognition. By regularly
recognizing those who participate in quality improvement efforts, employees will be much more likely to
continue to participate.

13. Create Quality Councils

By bringing together specialists and employees, you can create a focused effort towards creating lasting
quality improvement implementations. Make sure your quality councils meet on a regular basis.

14. Lather…Rinse…REPEATS!!!

Quality improvement doesn’t end because you have run out of the 14 Steps of Crosby! In order to really
make improvements in the quality of your products and services, you will need to do it over again…and
again…and again. Now go get started on your quality improvement projects!
 Quality Cost
Cost of Quality (COQ) is a measure that quantifies the cost of control/conformance and the cost of
failure of control/non-conformance. In other words, it sums up the costs related to prevention and
detection of defects and the costs due to occurrences of defects.

Definition by ISTQB

Cost of quality: The total costs incurred on quality activities and issues and often split into prevention
costs, appraisal costs, internal failure costs and external failure costs.

Definition by QAI

Money spent beyond expected production costs (labor, materials, and equipment) to ensure that the
product the customer receives is a quality (defect free) product. The Cost of Quality includes prevention,
appraisal, and correction or repair costs.

Quality Cost
Cost of Quality (COQ) is a measure that quantifies the cost of control/conformance and the cost of
failure of control/non-conformance. In other words, it sums up the costs related to prevention and
detection of defects and the costs due to occurrences of defects.

Definition by ISTQB

Cost of quality: The total costs incurred on quality activities and issues and often split into prevention
costs, appraisal costs, internal failure costs and external failure costs.

Definition by QAI
Money spent beyond expected production costs (labor, materials, and equipment) to ensure that the
product the customer receives is a quality (defect free) product. The Cost of Quality includes prevention,
appraisal, and correction or repair costs.

Quality costs are categorized into four main types. These are:

 Prevention costs
 Appraisal costs
 Internal failure costs and
 External failure costs.

These four types of quality costs are briefly explained below:

(i) Prevention costs

It is much better to prevent defects rather than finding and removing them from products. The costs
incurred to avoid or minimize the number of defects at first place are known as prevention costs. Some
examples of prevention costs are improvement of manufacturing processes, workers training, quality
engineering, statistical process control etc.
(ii) Appraisal costs

Appraisal costs (also known as inspection costs) are those cost that are incurred to identify defective
products before they are shipped to customers. All costs associated with the activities that are
performed during manufacturing processes to ensure required quality standards are also included in
this category. Identification of defective products involve the maintaining a team of inspectors. It may
be very costly for some organizations.

(iii) Internal failure costs

Internal failure costs are those costs that are incurred to remove defects from the products before shipping
them to customers. Examples of internal failure costs include cost of rework, rejected products, scrap etc.

(iv) External failure costs

Quality Cost
Cost of Quality (COQ) is a measure that quantifies the cost of control/conformance and the cost of failure of
control/non-conformance. In other words, it sums up the costs related to prevention and detection of defects
and the costs due to occurrences of defects.

Definition by ISTQB

Cost of quality: The total costs incurred on quality activities and issues and often split into prevention costs,
appraisal costs, internal failure costs and external failure costs.

Definition by QAI

Money spent beyond expected production costs (labor, materials, and equipment) to ensure that the product
the customer receives is a quality (defect free) product. The Cost of Quality includes prevention, appraisal,
and correction or repair costs.

Quality costs are categorized into four main types. These are:

 Prevention costs
 Appraisal costs
 Internal failure costs and
 External failure costs.

These four types of quality costs are briefly explained below:

(i) Prevention costs

It is much better to prevent defects rather than finding and removing them from products. The costs incurred
to avoid or minimize the number of defects at first place are known as prevention costs. Some examples of
prevention costs are improvement of manufacturing processes, workers training, quality engineering,
statistical process control etc.
(ii) Appraisal costs

Appraisal costs (also known as inspection costs) are those cost that are incurred to identify defective products before they are
shipped to customers. All costs associated with the activities that are performed during manufacturing processes to ensure required
quality standards are also included in this category. Identification of defective products involve the maintaining a team of
inspectors. It may be very costly for some organizations.

iii) Internal failure costs

Internal failure costs are those costs that are incurred to remove defects from the products before shipping them to customers.
Examples of internal failure costs include cost of rework, rejected products, scrap etc.

iv) External failure costs

If defective products have been shipped to customers, external failure costs arise. External failure costs include warranties,
replacements, lost sales because of bad reputation, payment for damages arising from the use of defective products etc. The
shipment of defective products can dissatisfy customers, damage goodwill and reduce sales and profits.

FORMULA / CALCULATION

Cost of Quality (COQ) = Cost of Control + Cost of Failure of Control

Where

Cost of Control = Prevention Cost + Appraisal Cost and

Cost of Failure of Control = Internal Failure Cost + External Failure Cost

NOTES

 In its simplest form, COQ can be calculated in terms of effort (hours/days).

 A better approach will be to calculate COQ in terms of money (converting the effort into money and adding any other tangible costs
like test environment setup).
 The best approach will be to calculate COQ as a percentage of total cost. This allows for comparison of COQ across projects or
companies.
 To ensure impartiality, it is advised that the Cost of Quality of a project/product be calculated and reported by a person external to
the core project/product team (Say, someone from the Accounts Department).
 It is desirable to keep the Cost of Quality as low as possible. However, this requires a fine balancing of costs between Cost of
Control and Cost of Failure of Control. In general, a higher Cost of Control results in a lower Cost of Failure of Control. But, the
law of diminishing returns holds true here as well.
 Quality Leadership
Quality leadership is a precondition for implementing quality management. How organizational leaders
structure and direct an organization as well as how they behave within an organization are critical
elements to the success of an effective quality management process. This article addresses these
leadership issues and presents a plan for quality management implementation. Several behavioral tools
are described that address potential obstacles to the implementation process.

Those following the teachings of quality gurus such as Deming, Juan and Feigenbaum and implementing
quality culture, tools and techniques are following approaches that tend toward leadership traits that
include, empowerment, a focus on people a strong strategic viewpoint and an awareness of integrating
different disciplines. Other traits include strong integrity and an awareness of social responsibilities.

Quality Leadership Characteristics

1. Values: Integrity, Trust and Culture

2. Vision: Strategic Focus
3. Inspiration: Communications Skills, Role Model, Motivational and Mentor
4. Innovative: Change Agent
5. Systems View: Interactive
6. Empowering: Focus on Employees
7. Customer Focus: Society
Business and Quality Knowledge