FUNDAMENTALS of FUNDAMENTALS of

QUALITY MANAGEMENT QUALITY MANAGEMENT

Chapter Chapter 1. 1.
Meaning of Quality Meaning of Quality Meaning of Quality Meaning of Quality
By
Prof. Dr. Istvn Prof. Dr. Istvn Husti Husti
Learning Objectives Learning Objectives
Define quality and explain its impact on
organizations
Describe the differences between the
different definitions different definitions
The main issue:
customers requirements
vs. vs.
characteristics of a product, process or
system
Meaning of Quality Meaning of Quality (A1/6)
QUALITY: ability of a set of inherent characteristics of a
product
11
, process
22
or system
33
to fulfil requirements
44
of
customers
55
and other interested parties
66
. (ISO 9000:2000)
1. PRODUCT: result of a process.
2. PROCESS: system of activities which uses resources to transform
inputs into outputs
3. SYSTEM: set of interrelated or interacting elements.
4. REQUIREMENT: need or expectation that is stated customarily 4. REQUIREMENT: need or expectation that is stated customarily
implied or obligatory.
QUALITY REQUIREMENT: requirement for inherent
characteristics of a product, process or system.
GRADE: category or rank given to different quality
requirements for products, process or systems having the
same functional use.
5. CUSTOMER: organization or person that receives a product (e.g.:
consumer, client, end-user, retailer, beneficiary and purchaser).
6. INTERESTED PARTY: person or group having an interest in the
performance or success of an organization (e.g.: customers,
owners, employees, suppliers, bankers, unions, partners or society).
Meaning of Quality Meaning of Quality (A2/6)
Quality
1 1
: degree to which a set of inherent
2 2
characteristics
3 3
fulfils requirements
4 4
.
(ISO
5 5
9000)
1 1
Quality: The term quality can be used with adjectives such
as poor, good or excellent.
2 2
Inherent: opposite to assigned, means existing in
something, especially as a permanent characteristic.
Meaning of Quality Meaning of Quality (A3/6)
3 3
characteristic: distinguishing feature.
Note 1 A characteristic can be inherent or assigned.
Note 2 A characteristic can be qualitative or quantitative.
Note 3 There are various classes of characteristic, such as the following:
- physical (e.g. mechanical, electrical, chemical, biological);
- sensory (e.g. related to smell, touch, taste, sight, hearing);
- behavioural (e.g. courtesy, honesty, veracity);
- temporal (e.g. punctuality, reliability, availability);
- ergonomic (e.g. psychological or related human safety);
- functional (e.g. maximum speed or an aircraft).
Quality characteristic: inherent characteristic of a
process, product or system related to a requirement.
Meaning of Quality Meaning of Quality (A4/6)
Process: set of interrelated or interacting activities which
transforms inputs into outputs
Note: Processes in an organization are generally planned and carried
out under controlled conditions to add value.
Product: Product: result of a process.
Note: There are 4 generic product categories, as follows
- services (e.g. transport);
- software (e.g. computer program, dictionary);
- hardware (e.g. engine mechanical part);
- processed materials (e.g. lubricant).
System: set of interrelated or interacting elements.
Meaning of Quality Meaning of Quality (A5/6)
44
Requirement: need or expectation that is stated, generally
implied or obligatory.
Note 1: Generally implied means that it is custom or common
practice for the organization, its customer and other interested
parties, that the need or expectation under consideration is
implied.
Note 2: Requirements can be generated by different interested
parties.
Customer Customers: are that the product: Customer Customers: are that the product:
- meets specified requirements,
- gives complete satisfaction
Manufacturer Manufacturers: are that product:
- meets specified requirements (to eliminate scrap & rework)
- gives complete customer satisfaction (to retain or increase
market share)
- is cost effective and efficient (to reduce cost and increase
profit)
Meaning of Quality Meaning of Quality (A6/6)
55
ISO: IInternational OOrganization for S Standardization
A standard standard is a document that provides requirements,
specifications, guidelines or characteristics that can be used
consistently to ensure that materials, products, processes
and services are fit for their purpose. ISO publishes over
19 500 International Standards.
What are the benefits of ISO International Standards?
ISO International Standards ensure that products and services
are safe, reliable and of good quality. For business, they are
ISO International Standards ensure that products and services
are safe, reliable and of good quality. For business, they are
strategic tools that reduce costs by minimizing waste and
errors, and increasing productivity. They help companies to
access new markets.
Popular standards
ISO 9000 Quality management, ISO 14000 Environmental
management, ISO 31000 Risk management, ISO 22000 Food
safety management, ISO 27001 Information security management
Meaning of Quality Meaning of Quality (B1/2)
Websters Dictionary Websters Dictionary: :
degree of excellence of a thing
American Society for Quality American Society for Quality: :
The totality of features and characteristics of a product
or service that bears on its ability to satisfy stated or
implied needs
Consumers (aa) and Producers (bb) Perspective
aa) Consumers Perspective Consumers Perspective
Fitness for use
how well product or
service does what it is
supposed to
Quality of design Quality of design
designing quality
characteristics into a
product or service
A Mercedes and a Ford
are equally fit for use,
but with different design
dimensions.
bb) Producers Perspective Producers Perspective
Quality of Conformance
Making sure a product or service is produced
according to design
e.g.:
- if new tires do not conform to specifications, they
wobble
- if a hotel room is not clean when a guest checks in, the
hotel is not functioning according to specifications of
its design
A Final Perspective A Final Perspective
Consumers and producers perspectives
depend on each other
Consumers perspective: PRICE Consumers perspective: PRICE
Producers perspective: COST
Consumers view must dominate
Producers
Perspective
Consumers
Perspective
Meaning of
Quality
Meaning of Quality Meaning of Quality (B2/2)
Fitness for
Consumer Use
Quality of
Conformance
Conformance to
specifications
Cost
Quality of
Design
Quality
characteristics
Price
Marketing Production
QQ : qquest for excellence
U U : uunderstanding customer
AA : aaction to achive customer satisfaction
LL : better lleadership
II : iinvolvement of all people II : iinvolvement of all people
TT : t team spirit to work for common goal
YY : yyardstick to measure progress
Different Views Different Views
User User- -based based: better performance, more
features
Manufacturing Manufacturing- -based based: conformance to
standards, making it right the first time standards, making it right the first time
Product Product- -based based: specific and
measurable attributes of the product
Defining Quality Defining Quality 5 Ways 5 Ways
Conformance to specifications
Does product/service meet targets and tolerances
defined by designers?
Fitness for use
Evaluates performance for intended use Evaluates performance for intended use
Value for price paid
Evaluation of usefulness vs. price paid
Support services
Quality of support after sale
Psychological
e.g. Ambiance, prestige, friendly staff
Implications of Quality Implications of Quality
1. Company reputation
Perception of new products
Employment practices
Supplier relations Supplier relations
2. Product liability
Reduce risk
3. Global implications
Improved ability to compete
Quality is ballet, not hockey.
Ballet is prevention,
hockey is detection.
Chapter 3 Highlights Chapter 3 Highlights
Customers everywhwere are becoming
intolerant of poor goods and services
Quality is a competitive weapon
Quality is a dynamic, complex category,
depending on time and place depending on time and place