UNIT – I

INTRODUCTION
 1. INTRODUCTION TO QUALITY
 Focused on in the last 20 – 30 years
 Market is more competitive
 Key ingredient for success in today’s business
 Becomes prime focus of business attention
 Sustained perfrmnce. & customer satisfaction

 Growing throughout the world

 Quality is the need of the hour; crux of time;
present Dharma of all
2 MEANING OF / NEED FOR QUALITY

• Relative term
• Used with refrnc. to the end use of product
• Considered of good quality if they perform
satisfactorily the intended functions
• Fitness for use/purpose at the most economical
level

• Customer determination, not an engineer’s or

manager’s determination
2 MEANING OF / NEED FOR QUALITY (Contd…)

• Extent to which the customers or users believe

the product or service surpasses their needs
and expectations

• Does not mean an expensive product; it is

fitness for use of customer

• Quality improvement results in improved

productivity by eliminating defects, non-value
adding services and rework.
3 EVOLUTION OF QUALITY
 3. DEFINITION OF QUALITY
 Quality is customer satisfaction
 Quality is fitness for use
 Refers to the ability of a product or service to
consistently meet/exceed customer expectations
 Quality means getting what you pay for
 Common both to products and services
 Essentially satisfying the customers’ stated and
unstated needs
 P
Q
E
Q = Quality P = Performance E = Expectations
 3. DEFINITION OF QUALITY (Contd…)
Quality is a subjective term for which each person has his or
her own definition. In technical usage, quality can have two
meanings: (1) the characteristics of a product or service that
bear on its ability to satisfy stated or implied needs and
(2) a product or service free of deficiencies.
— American Society for Quality
Quality should be aimed at the needs of the customer,
present and future.
— Dr Edward Deming
Quality is the total composite of product and services
characteristics of marketing, engineering, manufacturing and
maintenance through which the product and service in use
will meet the expectations of the customer.
—Armand V. Feigenbaum
 3. DEFINITION OF QUALITY (Contd…)
Quality is the degree of excellence at an acceptable price and
control of variability at an acceptable cost.
— Robert A. Broh
The totality of features and characteristics of a product or
service that bear on its ability to satisfy stated or implied
needs.
—ISO 8402: Quality Vocabulary
The totality of features and characteristics of a product or
service that bear on its ability to satisfy a given need.
—The European Organization for Quality Control Glossary

Quality is meeting the requirements of customers, both

internal and external, for defect-free products services and
business processes.
—IBM
 3. DEFINITION OF QUALITY (Contd…)
Fitness for use or purpose is a definition of quality that
evaluates how well the product performs for its intended use.
—Joseph Juran
Quality is the conformance to requirements/specification.
This is a definition of quality to find out, how well a product
or service meets the targets and tolerances determined by its
designers. —Philip Crosby
Quality is the loss (from function variation and harmful
effects) a product causes to society after being shipped,
other than any losses caused by its intrinsic functions.
—Dr Genichi Taguchi
Quality is meeting and exceeding the present and future
requirements of the customer on a continuous basis.
—Poornima Charantimath
 3. DEFINITION OF QUALITY (Contd…)
Customer-driven Definitions of Quality
Value for price paid: Quality is defined in terms of the utility of the product or service for
the price paid.
Support services: Quality is defined in terms of the support provided after the product
or service is purchased.
Psychological criteria: A way of defining quality that focuses on judgemental
evaluations of what constitutes product or service excellence.
The common definitions of quality are summarized below:

1. Conformance to requirements (Crosby, 1979)

2. Fitness for use (Juran, 1979)
3. Continual improvement (Deming, 1982)
4. As defined by the customers (Ford, 1984; 1990)
5. Loss to society (Taguchi, 1987)
6. Six Sigma (Harry and Stewart—Motorola, 1988)
7. Zero defects (Crosby, 1979)
8. Meeting and exceeding present and future requirements of customer on a
continuous basis (Charantimath, 2006)
OLD QUALITY Vs NEW QUALITY
 Important Quality Terms
 Quality improvement
 Quality control
 Quality assurance

• Quality improvement can be distinguished from quality control in that quality

improvement refers to purposeful change of a process to improve the
reliability of achieving an outcome.

• Quality control is the ongoing effort to maintain the integrity of a process to

maintain the reliability of achieving an outcome.

• Quality assurance is the planned or systematic action necessary to provide

enough confidence that a product or service will satisfy the given
requirements of quality.
3.1 D I F F E R E N T VIEWS OF QUALITY
 User’s view – products / services usefulness in meeting the
needs and expectations and its reliability, safety, durability…

 Producer’s point of view – performance which depends on the

quality of design and the quality of conformance

4. D I M E N S I O N S O F QUALITY
Dimensions are independent

 A product can be excellent in one dimension and average or

poor in another dimension

 Quality products can be identified by using few dimensions

4.1 DIMENSIONS OF PRODUCT QUALITY
Sl. Dimension Meaning of Example
No.
1 Performance Primary operating characteristics
2 Features Secondary characteristics
3 Conformance Meeting specifications or industry
standards
4 Reliability Probability of a product’s failing within a
specified period of time
5 Durability Measure of product’s life having both
economical and technical dimensions
6 Service Resolution of problem and complaints,
ease of repair
7 Response Human to human interface, such as the
courtesy of the dealer
8 Aesthetics Sensory characteristics, such as exterior
finish
4.2 DIMENSIONS OF SERVICE QUALITY
 Definitions of Product

Product
A product is the output of any process
Goods : Goods are physical things such as cellphone, etc.
Service: Service is work performed for someone else. Banking,
Insurance
Product Features
A product feature is a property that is possessed by a product and
that is intended to meet certain customer’s needs and there by
Customer
A customer who receives or affected by the product or service
Internal customer : inside the company
External customer : outside the company
Stated and Implied needs:
Needs which the customer specifies for procurement of goods and service
Implied Needs:
These are the associated functions the product is supposed to perform
irrespective of whether they are stated or Not
Customer Satisfaction
Is a state of affairs in which customer feels that their expectation have
been met by product features

Customer Dissatisfaction
Is a state of affairs in which deficiencies results in customer annoying,
complaints and claims

Deficiencies
A product failure that results in product dissatisfaction
 Different Views of Quality

• From Customer point of view

– Quality is an expression of the products / service
usefulness in meeting the needs and expectation and
its reliability, safety, durability

• From Production Point of View

– Quality of product measured by quality performance
which depends on the quality of its performance
which depends on the quality of design and the
quality of conformance
 Total Quality Management

TQM is the management approach of an

organization centered on quality based on the
participation of all its members and aiming at long
term success through customer satisfaction and
benefits to all members of the organization and to
society.
 Characteristics of TQM

TQM is a management philosophy to guide a

process of change.
TQM is a customer oriented management
system.
TQM starts at the top , it requires leadership, and
continuous involvement.
TQM calls for planning.
TQM is about achieving results by products
based approach.
TQM emphasizes the importance of
 Basic concepts of TQM

 Top Management commitment

 Focus on the customer
 Effective involvement and utilization of the entire
work force
 Continuous improvement
 Treating suppliers as partners
 Establishing performance measures for the
 TQM Frame Work / Elements of TQM

TQM principles and practices TQM Tools and Techniques

A People and Relationships 1. Seven tools of quality

1. Leadership 2. New seven Management tools
2. Customer focus
3. Employee involvement 3. Six sigma
4. Supplier partnership 4. Bench marking
B. Approach 5. Failure effective mode analysis
1. Continuous process improvement 6. Quality circle
2. Innovation
3. Management by fact 7. Quality Function Deployment
8. Total preventive Maintenance
C. Performance Measures
4. Quality costs
9. Taguchi Methods
5. Quality awards 10.Sampling Plans
11.Experimental Design
12.Quality management system
 Pillars of TQM

• Problem Solving discipline

• Interpersonal Skills

• Team Work

• Quality improvement process

 Principles of TQM

 Customer’s requirements must be met the first time every time

 There must be agreed requirements for both internal and
external customers
 Everybody must be involved from all levers and across all
functions
 Identifying training needs and relating them with individual
capabilities and requirement is must
 Top Management’s Participation and commitment is must
 A culture of continuous improvement must be established
 Emphasis should be placed on purchasing and supplier
management
 Every job must add value
 Quality improvement must eliminate waste and reduce costs
 Barriers to TQM Implementation

• Lack of Management Commitment

• Lack of faith in and support to TQM activities
among management personnel
• Failure to appreciate TQM as a cultural
revolution.
• Misunderstanding about the concept of TQM
• Improper Planning
• Lack of employees commitment
• Lack of effective communications
• Lack of continuous training and education
• Non application of proper tools and techniques
 Benefits of TQM
Tangible Benefits In tangible Benefits

• Improved Product quality  Improved employee

• Improved Productivity participation
• Reduced quality costs  Improved team work
• Increased profitability  Improved working
• Reduced employee relationships
grievances  Improved Customer
Satisfaction
 Improved Communications
 Walter A Shewhart

Shewahart’s Contributions

Statistical Control Charts :

Idea of reducing variability in Manufacturing
process and Products

PDSA Cycle
 W Edwards Deming
Deming ‘s 14 Points
1. Create constancy of purpose toward improvement of product and service
2. Adopt the new philosophy
3. Cease dependence on inspection to achieve quality
4. End the practice of awarding business on the basis of price tag
5. Improve constantly and forever the system of production and service
6. Institute training
7. Institute leadership
8. Break down barriers between departments
9. Eliminate slogans, exhortations and targets for the work force
10. Drive out fear
11. Eliminate work standards on the factory floor
12. Remove barriers to pride of workmanship
13. Institute a vigorous program of education and self improvement
14. The transformation is everyone’s Job
 Deming Cycle or PDCA Cycle

• PLAN – What is needed

• Do – it

Plan Do
• CHECK – That it works
Check Act
• ACT – to correct problems or improve
performance
Seven Deadly Diseases of Western Management

1. Lack of Consistency of Purpose

2. Emphasis on short term Profits

3. Reliance on performance appraisal and merits

4. Staff mobility

5. Reliance on financial figures

6. Excessive Medical Costs

7. Excessive legal costs

 Juran ’s Contributions
Juran ‘s Contribution can be studied
• Internal customer
Three role Model
1. Supplier
2. Process
3. Customer
• Cost of quality
1. Failure Costs – Scrap, rework,
2. Appraisal Costs
3. Prevention Costs
 Juran ’s Quality trilogy
1. Quality Planning
3. Quality Improvement
1. Identify the customer
1. Prove need for improvement
2. Determine the customer’s
needs 2. Identify specific projects for
3. Develop product features improvement
4. Establish quality goods 3. Organize to guide the projects
5. Develop a process 4. Diagnose to find the causes
6. Prove process capability 5. Provide remedies
6. Prove that remedies are
2. Quality Control effective under the operating
1. Choose control subjects conditions
2. Choose units of Measurement 7. Provide for control to hold
3. Establish measurements gains
4. Establish standards of
performance
5. Interpret the difference
6. Take actin on the difference
 Juran ‘s 10 Steps for quality improvement

1. Build Awareness of the need and opportunity for

improvement
2. Set goals for improvement
3. Organize to reach the goals
4. Provide training
5. Carry out projects to solve problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep Score
10. Maintain momentum by making annual improvement
part of the regular systems and processes of the
 Philip Crosby

Crosby contributions
1. Four absolutes of quality
2. Fourteen steps to quality management
3. Crosby’s quality vaccine
 Four Absolutes of Quality

First Absolute
The definition of quality is conformance to
requirements not goodness
Second Absolute
The system for causing quality is preventive not
appraisal
Third Absolute
The performance standard must be zero defect, not
that’s close enough
Fourth Absolute
The measurement of quality is the price of non –
conformance not indexes
 Crosby’s 14 steps for Quality improvement
Step 1: Establish and ensure management commitment
Step 2: Form quality improvement teams for QIPP and administration
Step 3: Establish quality measurements
Step 4: Evaluate the cost of quality and explain its uses
Step 5: Raise quality awareness among all employees
Step 6: Take action to correct problems identified
Step 7: Establish a zero defects committee
Step 8: Train supervisors and managers on their role and responsibility
Step 9: Hold a zero defects day to reaffirm management commitment
Step 10: Encourage individuals and groups to set goals
Step 11: Obstacle reporting
Step 12: Recognize and appreciate all participants
Step 13: Establish quality council to discuss quality matters
Step 14: Do it all over again to demonstrate that the improvement process
never ends
 Crosby’s Quality Vaccine

Integrity : Treat quality seriously throughout the whole business

organization from top to bottom.

Systems : Appropriate measures and systems should be put in

place for quality costs, education, quality, performance, review,
improvement and customer satisfaction.

Communication: Communicate requirements and specifications

and improvement opportunities around the organization.

Operations: Work with and develop suppliers, Process should be

capable and improvement culture.

Policies : Must be clear and consistent throughout the business

 Feigenbaum’s Elements of Total Quality

1. Quality is the customer perception of what quality is, not what a company
thinks it is
2. Quality and cost are the same, not different
3. Quality is an individual and team commitment
4. Quality and innovation are interrelated and mutually beneficial
5. Managing quality is managing the business
6. Quality is a principal
7. Quality is not a temporary or quick fix but a continuous process
improvement
8. Productivity gained by cost effective demonstrably beneficial quality
investment
9. Implement quality by encompassing supplier and customer in the system
 Taguchi’s Contributions
1. Quality loss function
2. Product development stages
Quality loss functions
The loss imparted to society from the time the
product is produced till shipped.
Product development stages
– System Design stage
– Parameter Design Stage
– Tolerance design stage
 Shingeo Shingo’s Contribution

Zero quality control (ZQC)

Poke – yoke

JIT related concepts

CUSTOMER CENTRIC Approach
1. Orientation (Awareness)
2. Focus
3. Satisfaction (Meeting his / her requirements)
4. Complaints (Service / after sales marketing)
5. Retention (Retaining loyal customers)

But, we are following process centric approach ,a standard TS-16949 is widely

followed in automotive industries. In this approach, the process is designed
with in-built quality / sustainability / eco-friendly---------

ASQ(American Society for Quality) : End-user perception ranking

6. Performance
7. Features
8. Service
9. Warranty
10. Price
11. Reputation (Brand)
I
 1. C U S T O M E R SATISFACTION

What it is?
[

 Customer satisfaction – Primary goal of any organization

 Customer is the king

 Quality is what customer wants

 Quality is a measure of customer satisfaction

 Business can not survive without satisfied customers

 Every employee understands importance of customers

 TQM’s purpose is meeting or exceeding customer

expectations – Customer delighted.
 1.1. C U S T O M E R SATISFACTION MODEL

 Teboul’s model of customer satisfaction

 Circle - Customer needs, Square - product or service offered

 Intersection portion is perceived as customer satisfaction

 Strive for increasing intersection portion i.e, customer satisfaction.

 2. WHO ARE CUSTOMERS?

 Most important people

 Not depend on the organization

 Organization depends on them

 Not an interruption to work but are the purpose of it

 Doing a favour when they seek business and not vice-versa

 A part of business, not outsiders

 Life blood of the business

 People who come with their needs and jobs

 Deserve the most courteous and attentive treatment

 2.1. T Y P E S O F C U S T O M E R S

(a) Internal customers

 Customer inside the company

 Each department dependent of the other

 Each quality management unit is considered as a

customer by previous department

 As a supplier for the next department

 Every person in a process is considered as a

customer of preceding operation
(b) E x t e r n a l customers

Customers out side of the company

 Who uses the product or service

 Who purchases the product or service

 Who influences the sale of the product of

service
 2.2 C U S T O M E R – S U P P L I E R C H A I N

 Better customer relationship

 Model of customer – supplier chain
 All processes require inputs Provide by the internl/externl customers
 All processes deliver outputs used by internal/external customers
 Every one inside the company as a supplier and customer@same time
 Each unit is considered as a customer by the previous unit and
as a supplier for the next unit
3. C U S T O M E R PERECEPTION OF QUALITY

 Quality - customer perceives it to be

 Customer go on changing their needs

 Quality level needs are to be improved continuously

 TQM philosophy - continuous process improvement

 American Society foe Quality ranked the customer

perception as below

1. Performance 4. Warranty

2. Features 5. Price

3. Service 6. Reputation
 3.1. PERFORMANCE
 Fitness for use

 Other considerations includes

Availability : Probability that a product will operate when needed

Reliability : Freedom from failure overtime

Maintainability : It is the ease of keeping the product operable

3.2. F E A T U R E S

 Secondary characteristics of the product of service

 Primary function of a cell phone is for communication

 Such as calculator and alarm are features of the cell phone

 3.3. SERVICE

 Customer service intangible in nature

 Traits that are not quantifiable

 It contributes greatly to customer satisfaction

 To provide good quality of the product to the customer

right time

 Even though the customers are not complaining about

their service
 3.4. W A R R A N T Y

 Represents organization’s public promise of quality product

 Represents public commitment to guarantee a level of

service sufficient to satisfy the customer

 A warranty forces the organization to focus on the

customer’s definition of product and service quality

 Warranty attracts and builds the market.

 Encourages customers to buy a service

 Generates more sales from existing customers

 3.5. P R I C E
 Customer is willing to pay a higher price to obtain value.

 Expect high quality products at the lower price

 Providing the greatest value for their money

 Organizations should identify, verify & update customer’s

perception of value in relation to each product

3.6 R E P U T A T I O N
 Willing to buy products or service from a known, trusted
and reputed organization.

 Customer satisfaction is based

 Entire experience with the organization

 Reputation of a firm brings the market to them

 4. C U S T O M E R C O M P L A I N T S / F E E D B A C K

 Totally satisfied customer contributes 2.6 times as much

revenue as a somewhat satisfied

 Totally satisfied customer contributes 17 times as much

revenue as a somewhat dissatisfied customer

 Totally dissatisfied customer decreases revenue 1.8 times of

totally satisfied customer

 Number of dissatisfied customers should be reduced

 Customer feedback - continuously solicited and monitored

4.1. I S C U S T O M E R F E E D B A C K / C O M P L A I N T N E C E S S A R Y?

 Discover customer dissatisfaction

 Identify customer needs

 Discover relative priorities of quality

 Compare performance with the competition

 Determine opportunities for improvement

 4.2. TOOLS USED FOR COLLECTING CUSTOMER COMPLAINTS

1. COMMENT CARD
Card, normally attached to the warranty card, issued with product at the time of sales

2. CUSTOMER QUESTIONNAIRE
Surveys through mail, E-mail and telephone

3. FOCUS GROUPS
Includes customer meetings, word associations, discussions, relaxation techniqs. etc.

4. Toll – free telephone numbers

5. Customer visits, i.e, visits to a customer’s place

6. Report cards,

7. INTERNET AND COMPUTER

 Includes newsgroups, electronic bulletin boards, mailing lists, etc

 Employee feedback
4.3. C U S T O M E R C O M P L A I N T S F L O W C H A R T

 Complaints can be collected from all sources

 Data should be collected via a customer C C F form & C A R form may be used

 Complaints – resolved quickly and customer – contacted & informed

 Customers should be given a response (‘thank you’ / solution) with in 15 days

 Local issues should be resolved locally, preferably on the complaint site

 Issues beyond the control of local entity must be resolved at the central
coordinator or analyst level (further analyse the issue and propose solution)

 Data - analysed and systematic issues - identified, resolved & eliminated

 Performance measures should be identified and monitored

 Regular promotion and facilitation system for constant nurturing of complaints

 5. S E R V I C E Q U A L I T Y O R C U S T O M E R S E RV I C E

 Set of activities an organisation uses to satisfy customers & their needs

Provided at
 before sale of the product
 during the sale of the product
 Aftersale of the product

 Service quality may be misleading sometimes, because ser

represents the quality efforts in service sectors / industries

 Our text focuses more on customer service

 5.1. E L E M E N T S O F CUSTOMER SERVICE

Twenty Five Elements of customer service

I ORGANIZATION II CUSTOMER CARE

1. Identyfy each market segment 1. Meet customer’s expectations

2. Write dopwn the requirements 2. Get customer’s point of view
3. Communicate the requirements 3. Deliver what is promised
4. Organize processes 4. Make the customer feel valued
5. Organize physical spaces 5. Respond to all complaints
6. Over-respond to the customer
7. Provide a clean & comfortable
customer reception area
 III COMMUNICATION IV FRONT-LINE PEOPLE

1. Optimize trade-off between time and 1. Hire people who like people
personal attention 2. Challenge them to develop better
2. Minimize number of contacts methods
3. Provide pleasant, knowledgeable & 3. Given them the authority to solve
enthusiastic employees problems
4. Write documents in customer friendly 4. Serve them as internal customers
language 5. Be sure they are adequately trained
6. Recognize and reward performance

V LEADERSHIP
1. Lead by example
2. Listen to the front-line people
3. Strive for continues process improvement
 6. C U S T O M E R RETENTION
 Process of retaining existing customers - more powerful & effective
than customer satisfaction

 Customer care - every activity which occurs within an organization

that ensures that a customer is not only satisfied but also retained

 Represents the activities that produce the necessary customer

satisfaction that creates customer loyalty

 Can be improved by obtaining customer feedback and by measuring

customer satisfaction surveys, focus groups, interviews &
observations

 Customer satisfaction – measured by using the hard measures of cash

register receipts, market share, the level of customer retention
and the number of referrals from customers.

 Moves customer satisfaction to the next level called customer delight

 IMPORTANT REASERCH FINDINGS

 Over 60% of organization’s future revenue - from existing customers

 2% increase in customer retention has an equivalent impact upon
profitability as a 10% reduction in operating costs
 Upto 96% of unhappy customers don’t infact complain. But they are
3 times more likely to communicate a bad experience than a good
 91% of unhappy customers - never purchase goods/ services again
 If you make an effort to remedy customers complaints 82 to 95% of
them stay on with you
 It costs 5 times as much to attract a new customers
What is quality assurance?
a. Quality assurance deals with activities which prove
that products and services meet the required quality
standard
b. Quality assurance deals with activities which aim at
customers satisfaction
c. Quality assurance deals with controlling the quality of
products by inspection
d. All of the above
Where was Total Quality Management first
developed?
a) USA
b) UK
c) Japan
d) Korea
Which of the following are key components of a Total Quality Management
system?
a) Individual responsibility, incremental improvement, use of raw data
b) Collective responsibility, continual improvement, use of raw data
c) Group responsibility, staged improvement, knowledge
d) Involves everyone, continual improvement, use of data and knowledge
Control chart is a
a. Process monitoring tool
b. Process control tool
c. Both (a) and (b)
d. None of the above
Total Quality Management (TQM) focuses on
a. Employee
b. Customer
c. Both (a) and (b)
d. None of the above
Which of the following is responsible for quality objective?
a. Top level management
b. Middle level management
c. Frontline management
d. All of the above
TQM & ISO both focuses on
a. Customer
b. Employee
c. Supplier
d. All of the above
While setting Quality objective, ________ to be considered.
a. Material quality
b. Customer need
c. Market demand
d. All of the above
TQM expands on earlier approaches to quality management. Which of the
following is ordered correctly from earlier to later ideas?

a. Quality Assurance, Inspection, Quality Control, Total Quality Management

b. Quality Control, Inspection, Quality Assurance, Total Quality Management
c. Quality Assurance, Quality Control, Inspection, Total Quality Management
d. Inspection, Quality Control, Quality Assurance, Total Quality Management
“Quality is defined by the customer” is?
a)An unrealistic definition of quality
b) A user based definition of quality
c) A manufacturing definition of quality
d) A product based definition of quality