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Chapter 9

GMS401- Chapter 9- Management of Quality.docx

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Global Management Studies
GMS 401
Sam Lampropoulos

GMS401- Chapter 9- Management of Quality Introduction  Quality: the ability of good or service to consistently meet or exceed customer expectations  Prior to the increased level of Japanese competition in the North American marketplace in 1980s, quality was not the uppermost in the minds of the management.  Focus was on cost, quantity and production rather than quality  Quality control: is monitoring, testing and correcting quality problems after they occur  During the 1950s, quality movement started to evolve into quality assurance: is providing confidence in a products quality by prevent defects before they occur  The evolution took a dramatic shift from quality control and assurance to a strategic management approach to quality control and assurance to a strategic management approach to quality in the 1980s, called total quality management (TQM) – emphasis on customer satisfaction, and involves all levels of management as well as workers in continuing effort to increase quality – continuous improvement: never-ending improvements to key processes as part of total quality management Evolution of Quality Control Pre-Industrial Revolution Craftsmanship: each craftsman responsible for quality. Industrial Revolution Division of labour: quality control shifts to full time inspectors 1950s quality assurance 1970s quality management systems 1980s TQM, continuous improvement Today Six Sigma, statistical tools Dimensions of Quality  Dimensions of quality of goods: Performance, aesthetics, special features, safety, reliability, durability, perceived quality, service after, and latent Includes the following: Performance - main characteristics of the product/service Aesthetics - appearance, feel, smell, taste Special Features - extra characteristics Reliability - consistency of performance Durability - useful life of the product/service Perceived Quality - indirect evaluation of quality (e.g. reputation) Serviceability - service after sale Service Quality Tangibles—the physical appearance of facility, equipment, personnel, and communication materials. Convenience—the availability and accessibility of the service. Reliability—the ability to perform a service dependably, consistently, and accurately for certain length of time. Responsiveness—the willingness of service providers to help customers in unusual situations and to deal with problems. Time—the speed with which service is delivered. Assurance—the knowledge exhibited by personnel and their ability to convey trust and confidence. Courtesy—the way employees treat customers. Determinants of Quality 1. Product design: intention of designers to include or exclude features that customers require 2. Process design: Translating product characteristics into process specifications and tolerances 3. Production: The degree to which goods or services conform to design specification 1 GMS401- Chapter 9- Management of Quality  Conformance to design specifications: the degree to which produced goods or services conform to the specifications of the designers Costs of Quality  Failure costs: costs caused by defective parts or products  Internal failures: failures discovered during production  i.e. defective material from vendors, incorrect machine settings  External failures: failures discovered after deliver to customer  Handling of complaints, liability, warranty work  Appraisal (detection) costs: costs of inspection and testing  Cost of inspectors, testing, test equipment  Prevention Costs: costs of preventing defects from occurring  Quality training, planning, customer assessment Quality Gurus W. Edwards Deming  After Second World War went to Japan to assist them in improving their quality and productivity  Won quality prize, and the Deming prize – established in 1951  Deming compiled a list of 14 points he believed were the prescription needed to quality  The cause of inefficiency and poor quality is the system, not the employees.  Managements responsibility to correct the system  Reduce variation in output, which can be accomplished by distinguishing between special causes of variation and common causes of variation  Foundation of statistical process control (SPC)  Deming also promoted the plan-do-study act (PDSA) cycle problem solving  See Tables Joseph M. Juran  Taught Japanese manufacturers how to improve the quality of their goods  Quality Control Handbook (1951)  Juran viewed quality as fitness-for-use  Believed that 8-% of quality defects are controllable  Described quality management in terms of a trilogy consisting of quality, planning, quality control, and quality improvement Armand Feigenbaum  General Electric’s top expert on quality  Recognized that quality was not only a collection of tools and techniques, but also a “total field”  When improvements were made in the process, other areas of the company also achieved improvements  Quality at the source: every employee is responsible for inspecting his own work  See Table Philip B. Crosby  Worked at Martin Marietta Company in the 60’s  Developed the concept of zero defects and popularized the phrase “Do it right the first time”  Zero defects: The philosophy that any level of defects is too high  Among some of his key points are the following: 1. Top management must demonstrate its commitment to quality and its willingness to give support to achieve good quality 2. Management must be persistent in efforts to achieve good quality 3. Management must spell out what it wants in terms of
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