QUALITY MANAGEMENT

Defining Quality In technical usage, quality can have two meanings: the characteristics of a product or service that bear on its ability to satisfy stated or implied needs, and a product or service free of deficiencies

Defining Quality - Gurus Deming - non-faulty systems-Out of the Crisis Juran - fitness for use-Quality Control Handbook Crosby - conformance to requirements-Quality is Free Defining Quality- Different Views Customers view (more subjective) the quality of the design (look, feel, function), product does whats intended and lasts

Producers view conformance to requirements (Crosby), costs of quality (prevention, scrap, warranty), increasing conformance raises profits

Governments view products should be safe, not harmful to environment

Value-based Approach Manufacturing dimensions Performance, Features, Reliability, Conformance, Durability, Serviceability, Aesthetics, Perceived quality

Service dimensions Reliability, Responsiveness, Assurance, Empathy, Tangibles

Textbook Definition Armand Feigenbaum - author: Total Quality Control (1961) quality is a customer determination based on the customers actual experience with the product or service, measured against his or her requirements - stated or unstated, conscious or merely sensed, technically operational or entirely subjective - and always representing a moving target in a competitive market.

History of Quality Paradigms Customer-craft quality paradigm: design and build each product for a particular customer. producer knows the customer directly.

Mass production and inspection quality paradigm:

Focus on designing and building products for mass consumption. Larger volumes will reduce costs and increases profits. Push products on the customer (limit choices). Quality is maintained by inspecting and detecting bad products.

TQM or Customer Driven Quality paradigm: Potential customers determine what to design and build. higher quality will be obtained by preventing problems

Need for a New Strategy

Foreign markets have grown-Import barriers and protections are not the answer. Consumers are offered more choices-They have become more discriminating. Consumers are more sophisticated-They demand new and better products. Why Quality Improvement? Global Competition Economic and political boundaries are slowly vanishing The 1950s slogan Built by Americans for Americans is very far from reality in the 2000s.

On the stroke of midnight on December 31, 1992, the United States will become the second -largest economy in the world for the first time in a century. Quote from a 1990 Xerox quality conference.

More than corporate profits are at risk; the challenge is to the American standard of living. It pays Less rework, fewer mistakes, fewer delays, and better use of time and materials In United States today, 15 to 20% of the production costs are incurred in finding and correcting mistakes.

How Do Organizations Compete? Most common competitive measures:-Quality (both real and perceived), Cost, Delivery (lead time and accuracy) Other measures-safety, employee morale, product development (time-to-market, innovative products)

Quality control is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance. Quality management can be considered to have three main components: quality control, quality assurance and quality improvement. Quality management is focused not only on product quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality. http://tfh.phillipkern.de/Semester2/qm/Quality%20Management.pdf

Total Quality management (TQM)

Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations. Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.

TQM Defined
TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives. TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which include: Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time Manufacturing Quality Circles Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking