An introduction-to-quality

An introduction to Quality

Standards in Actionwww.bsieducation.org/standardsinaction

Introduction to Quality

Expanding the quality myth

Author:

Dr Rhys Rowland-Jones



Session Plan

• Different views of quality• General definitions of quality• Some issues facing the quality profession• Views of quality • Costs of quality • Dimensions of quality



The first question to ask–What is Quality?

How would you describe whatHow would you describe what““Quality” means?Quality” means?



QUALITY

• Degree to which a set of inherent characteristics fulfils requirements

ISO 9000:2000ISO 9000:2000



Phases of Quality Assurance

Acceptancesampling

Processcontrol

Continuousimprovement

Inspectionbefore/afterproduction

Inspection andcorrective

action duringproduction

Quality builtinto theprocess

The leastprogressive

The mostprogressive



QUALITY DOES NOTOCCUR BY ACCIDENT

• What does the customer actually want?– Identify, understand and agree

customer requirements

• How are you going to meet those requirements?

– Plan to achieve them



The Demming Cycle W.Edwards Demming

Plan

Control Act & Do

Improvement

Check



Some issues facing the quality profession

How to define quality from the customer’s perspective?

Keeping up with the constant increases in the level of quality of today’s goods and services.

The particular difficulties encountered in managing service quality.

How does the organization identify the quality dimensions that are most important to its customers?



Some issues facing the quality profession

Being able to avoid the costs of poor quality products and services.

Being able to deal with the shift in balance of power to consumers from producers through globalization.

Recognizing that customer loyalty is increasingly based on quality.Getting ‘leaner’ by achieving higher levels of productivity.



Expressing Dissatisfaction

A dissatisfied customer

Takesaction

Takesno action

Public actioncan be

Private action

Seeking redress directly from the firm

Taking legal action

A complaint to business, private,or governmental agencies

Stop buying the product or boycott the seller

Warn friends about the productand/or seller



Customer Feedback and Word-of-Mouth• The average business only hears from 4% of its customers who are dissatisfied with

its products or services. Of the 96% who do not bother to complain, 25% of them have serious problems.

• The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers.

• About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly.

• A dissatisfied customer will tell between 10 and 20 other people about their problem.

• A customer who has had a problem resolved by a company will tell about 5 people about the situation.



An Approach to Viewing Quality. Slack et al 2004

• The transcendent approach views quality as synonymous with innate excellence e.g. Rolls Royce, Rolex, The Hilton.

• The manufacturing-based approach assumes quality is all about making or providing error-free products or services e.g. Audi’s ‘vorsprung durch technik’.

• The user-based approach assumes quality is all about providing products or services that are fit for their purpose e.g. it does what it says on the tin!

• The product-based approach views quality as a precise and measurable set of characteristics e.g. 0-60 in 4.3 seconds.

• The value-based approach defines quality in terms of value’ e.g. supermarket ‘value’ ranges.



Functionality - how well the product or service does the job for which it was intended.

Appearance - aesthetic appeal, look, feel, sound and smell of the product or service.

Reliability - consistency of product or service’s performance over time.

Durability - the total useful life of the product or service.

Recovery - the ease with which problems with the product or service can be rectified or resolved.

Contact - the nature of the person-to-person contacts that take place.

Quality Characteristics of Goods and Services



Internal and External Benefits of Quality

Reduces costsIncreases dependability

Increases speedBoosts moral

Increases customer retention Increases profit

Internal Benefits External Benefits

Customer gets correct product or service

Correct specifications

Appropriate intangibles

Customer satisfaction

Customer retention



The ‘Iceberg’ theory – how much is immediately visible?

Scrap, waste

Reworking

defects

Rescheduling

Increased labour

costs

Reduced

productivity

Delivery failures

Increased stock levels

Customer

complaints

Loss of customers



British Standards on Quality Costs

• BS 6143 Part 1• BS 6143 Part 2

• Prevention Appraisal Failure Model (PAF)• Process Cost Model (PCM)



Costs of Quality Failure“Defects are not free, someone makes them and gets paid for the privilege”

• COST OF INTERNAL FAILURE– Scrapped materials, goods and services– Rework/ retest– Reduced capacity/ yield/ increased downtime– Rescheduling– Service delays– Disruption to the service process.– Focus is on troubleshooting not improvement

• COST OF EXTERNAL FAILURE– Warranty and servicing costs– Product liability / Litigation– Complaints and their administration– Loss of customer goodwill– Inconvenience to other customers



The Economic Costs of Quality• COST OF PREVENTION• Quality planning• Design of quality system• Staff quality training and development• Preventative maintenance• Supplier development training• Administering quality procedures (e.g. ISO 9001)• Time spent problem - solving, improving process• Measurement of customer satisfaction during process

• COST OF APPRAISAL• Testing and Inspection of supplier goods and services• Testing and Inspection of internal service processes• Measurement of customer satisfaction after process• Quality Audits



Quality

Dependability

Speed

Flexibility

Cost

QualityQuality + Dependability

Quality + Dependability + SpeedQuality + Dependability + Speed + Flexibility

Quality + Dependability + Speed + Flexibility + Cost

(FERDOWS & DeMAYER Adapted from Slack et al 2004)

The Ferdows and DeMayer Sandcone Model of Operational Improvement:



Short Exercise: Quality Characteristics

Consider how the quality characteristics (functionality, reliability, appearance, durability, recovery and contact) relate to your organisation’s main products / services?

Note your answers – now ask someone in your organisation the same question and compare your answers.

Are they similar?



The meaning of Quality

Quality of conformance Quality of design

Producer’s perspective Consumer’s perspective

Fitness forconsumer use

Production Marketing•Conformance to specifications•Cost

•Quality characteristics•Price

The Dimensions of Quality.



QUALITY MANAGEMENTSYSTEM

Management system to direct and control an organisation with regard to quality

ISO 9000:2000



PURPOSE OF ISO 9001:2000

“ISO 9001 specifies the requirements for a quality management system that may be used for internal application by organizations, certification, or contractual purposes.”



Summary

• Quality has several dimensions• Quality is not only a system• There are costs to poor quality• Quality is a continuous journey

An introduction-to-quality

Technology

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