Management of Quality or Quality Management

Assessing Service Quality

Quality Audit service to identify strengths and weaknesses (tool: SERVQUAL)
The ability of a product or service to consistently In particular, look for gap/discrepancies between:
meet or exceed customer expectations 1. Customer expectations and management perceptions of those
• Performance - Expectation expectations
• Customer expectations into dimensions 2. Management perceptions, customer expectations, and service-
quality specifications
3. Service quality and service actually delivered
4. Service actually delivered and what is communicated about the
Dimensions of Product Quality service to customers
• Performance – main characteristics of the 5. Customers’ expectations of the service provider and their
product perceptions of provider delivery
• Aesthetics – appearance, feel, smell, taste
Determinants of Quality
• Special features – extra characteristics
Quality of design
• Conformance – how well the product
Intention of designers to include or exclude features in a
conforms to design specifications
product or service
• Reliability – consistency of performance
Quality of conformance
• Durability – the useful life of the product
The degree to which goods or services conform to the intent
• Perceived quality – indirect evaluation of
of the designers
quality
Ease-of-use and user instructions
• Serviceability – handling of complaints or
Increase the likelihood that a product will be used for its intended
repairs
purpose and in such a way that it will continue to function properly
• Consistency – quality doesn’t vary
and safely
After-the-sale service
 Price is not a dimension of quality Taking care of issues and problems that arise after the sale
Responsibility for Quality Benefits of Good Quality
Everyone in the organization has some responsibility for the quality, but • Enhanced reputation for quality
certain areas of the organization are involved in activities that make • Ability to command premium prices
them key areas of responsibility • Increased market share
• Top management (ultimate responsibility) • Greater customer loyalty
• Design (Product & service design( • Lower liability costs
• Procurement (value addition in next steps) • Fewer production or service problems
• Production/operations (shape as per design & needed quantity) • Lower production costs
• Quality assurance (data collection • Higher profits
• Packaging and shipping
• Marketing and sales (to & fro)
• Customer support & service Costs of Quality: 3 category
Appraisal costs
Costs of activities designed to ensure quality or uncover defects.
Inspection, testing.
The Consequences of Poor Quality Prevention costs
All TQ training, TQ planning, customer assessment, process control, and
• Loss of business
quality improvement costs to prevent defects from occurring
• Liability (EPR)
Failure costs - costs incurred by defective parts/products or faulty services
• Productivity (rework)
• Internal failure costs
• Costs (the better the earlier, saves money)
Costs incurred to fix problems that are detected before the
product/service is delivered to the customer
• External failure costs
All costs incurred to fix problems that are detected after the
product/service is delivered to the customer
Q. How quality can be free ?
Ethics and Quality
Awards
Baldrige award
Substandard work European quality award
Baldrige Criteria
Defective products Deming prize
I. Leadership
Substandard service II. Strategic planning
Poor designs III. Customer focus
Shoddy workmanship IV. Measurement, analysis, and knowledge
Substandard parts and materials management
V. Workforce focus
VI. Operations focus
VII. Results
The Baldrige Competition
Award categories
1. Education
2. Healthcare
Having knowledge of
3. Manufacturing
this and failing to
4. Nonprofit/government
correct
5. Service
and report it in a
6. Small Business
timely manner is
Purpose of the award
unethical.
7. Stimulate efforts to improve quality
8. Recognize quality achievements
9. Publicize successful programs
Quality Certification
ISO 9000
International Organization for Standardization Quality principles
• ISO 9000 Principle 1 Customer focus
Set of international standards on quality Principle 2 Leadership
management and quality assurance, critical to Principle 3 Involvement of people
international business Principle 4 Process approach
• ISO 14000 Principle 5 System approach to management
A set of international standards for assessing a Principle 6 Continual improvement
company’s environmental performance Principle 7 Factual approach to decision making
• ISO 24700 Principle 8 Mutually beneficial supplier relationships
Pertains to the quality and performance of office
equipment that contains reused components

Quality and the Supply Chain

• Business leaders are increasingly recognizing the importance of their supply chains in achieving their quality goals
• Requires:
• Measuring customer perceptions of quality
• Identifying problem areas
• Correcting these problems
• Supply chain quality management can benefit from a collaborative relationship with suppliers
• Helping suppliers with quality assurance efforts
• Information sharing on quality-related matters
Total Quality Management
TQM Elements
A philosophy that involves everyone in an organization in 1. Continuous improvement (kaizen)
a continual effort to improve quality and achieve customer 2. Competitive benchmarking
satisfaction 3. Employee empowerment
4. Team approach
5. Decision based on fact, not opinion
T Q M 6. Knowledge of tools
7. Supplier quality (3P & certification)
8. Champion
9. Quality at the source

Kaizen
TQM Approach Japanese word for continuous improvement
1. Find out what the customer wants
2. Design a product or service that meets or exceeds Continuous improvement
customer wants Philosophy that seeks to make never-ending improvements to the
3. Design processes that facilitate doing the job right process of converting inputs into outputs
the first time (fail-safing)
4. Keep track of results
5. Extend these concepts throughout the supply chain Quality at the Source
6. Top management must be involved and committed The philosophy of making each worker responsible for the quality of his
or her work
“Do it right” and “If it isn’t right, fix it” (then and there it self)
Differences between cultures of a TQM organization and a more traditional organization
Obstacles to Implementing TQM
Obstacles include:
• 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 a “quick fix”
• Emphasis on short-term financial results
• Inordinate presence of internal politics and “turf”
issues
• Lack of strong motivation
• Lack of time to devote to quality initiatives Criticisms of TQM
• Lack of leadership • Overzealous advocates may pursue TQM programs
blindly, focusing attention on quality. (other priority)
• Programs may not be linked to the strategies of the
organization in a meaningful way
• Quality-related decisions may not be tied to market
performance
• Failure to carefully plan a program before embarking
on it can lead to false starts, employee confusion,
and meaningless results
• Organizations sometimes pursue continuous
improvement instead of dramatic improvement.
• Quality efforts may not be tied to results
 PDSA Cycle Act Plan

Plan-Do-Study-Act (PDSA) cycle Process Improvement

Study Do
Frame work for problem solving &
improvement activities
• A systematic approach to improving a process
• Map the process
Plan • Collect information about the
• Begin by studying and documenting the current process and identify each step in the
process. process
• Collect data on the process or problem • Prepare a flowchart that accurately
• Analyze the data and develop a plan for improvement depicts the process
• Specify measures for evaluating the plan • Analyze the process
Do • Ask critical questions about the
• Implement the plan, document any changes made, process
collect data for analysis • Ask specific questions about each
Study step in the process
• Evaluate the data collection during the do phase • Redesign the process
• Check results against goals formulated during the plan
phase
Act
• If the results are successful, standardize the new
method and communicate it to the relevant personnel
• Implement training for the new method
• If unsuccessful, revise the plan and repeat the process
PDSA applied to Problem Solving
 Six Sigma

• Six Sigma: A business process for improving DMAIC: A formalized problem-solving process of six sigma.
quality, reducing costs, and increasing Define: Set the context and objectives for improvement
customer satisfaction Measure: Determine the baseline performance and capability of the proces
• Statistically Analyze: Use data and tools to understand the cause-and-effect relationsh
• Having no more than 3.4 defects per of the process
million Improve: Develop the modifications that lead to a validated
• Conceptually improvement of the process
• A program designed to reduce Control: Establish plans and procedures to ensure that
defects improvements are sustained
• Requires the use of certain tools and
techniques

Guiding Principles
• Reduction in variation is an important goal
• The methodology is data-driven; it requires
data validation
• Outputs are determined by inputs
• Only a critical few inputs have a significant
impact on outputs
Pto.
 6 sigma diagrammatic view

https://www.geeksforgeeks.org/six-sigma-in-software-engineering/
 Statistical and fitting tools

• Pick chart/Rolloed throughput yield

• Flowchart • Quality function deployment (QFD)
• Analysis of variance (ANOVA) • Quantitative marketing research via enterprise feedback
• Histogram management (EFM)
• General linear model • Root cause analysis
• Pareto chart
•
• SIPOC analysis
Regression analysis
• Correlation (Suppliers, Inputs, Process, Outputs, Customers)
• Scatter diagram • COPIS analysis (Customer centrix version/perspective of
• Chi-squared test SIPOC)
• Axiomatic design • Taguchi methods/Taguchi loss function
• Business process mapping/check sheet • Value stream mapping
• Cause & effect diagram (fishbone or Ishikawa diagram(
• Control chart/Control plan/Run charts (swimlane map)
• Cost benefit analysis
• CTQ tree
• Design of experiments (Doe)/stratification

https://en.wikipedia.org/wiki/Six_Sigma
Follows 80-20 rule
Different from Pareto front
Fish bone diagram or
Ishikawa diagram
 Brainstorming
Methods for Generating Ideas • It is a technique in which a group of people shares
thoughts and ideas on problems in a relaxed
atmosphere that encourages unrestrained collective
thinking
• Brainstorming • In successful brainstorming, no single member is
• Quality circles allowed to dominate sessions, and all ideas are
welcomed
• Benchmarking • Structured brainstorming is an approach to assure
that everyone participates (including shy people).

Quality circle
• Groups of workers who meet to discuss
Benchmarking Process ways of improving products or processes
1. Identify a critical process that needs improvement • Less structured and more informal
2. Identify an organization that excels in this process than teams involved in continuous
3. Contact that organization improvement
4. Analyze the data • Quality circle teams have
5. Improve the critical process historically had relatively little
authority to make any but the most
minor changes