Transcript Introduction to Quality

An introduction to Quality
Introduction to Quality
Expanding the quality myth
Author:
Dr Rhys Rowland-Jones
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An introduction to Quality
Session Plan
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Different views of quality
General definitions of quality
Some issues facing the quality profession
Views of quality
Costs of quality
Dimensions of quality
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An introduction to Quality
The first question to ask–
What is Quality?
How would you describe what
“Quality” means?
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An introduction to Quality
QUALITY
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Degree to which a set of inherent
characteristics fulfils requirements
ISO 9000:2000
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Phases of Quality Assurance
Inspection
before/after
production
Acceptance
sampling
The least
progressive
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Inspection and
corrective
action during
production
Process
control
Quality built
into the
process
Continuous
improvement
The most
progressive
An introduction to Quality
QUALITY DOES NOT
OCCUR 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
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The Demming Cycle
W.Edwards Demming
Plan
Act
Control
&
Improvement
Check
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Do
An introduction to Quality
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?
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An introduction to Quality
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.
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Expressing Dissatisfaction
Public action
can be
Takes
action
A dissatisfied
customer
Seeking redress directly from
the firm
Taking legal action
A complaint to business, private,
or governmental agencies
Private action
Stop buying the product or
boycott the seller
Takes
no action
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Warn friends about the product
and/or seller
An introduction to Quality
Customer Feedback and Word-of-Mouth
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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.
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The 4% complainers are more likely to stay with the supplier than are the 96% noncomplainers.
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About 60% of the complainers would stay as customers if their problem was
resolved and 95% would stay if the problem was resolved quickly.
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A dissatisfied customer will tell between 10 and 20 other people about their
problem.
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A customer who has had a problem resolved by a company will tell about 5 people
about the situation.
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An introduction to Quality
An Approach to Viewing Quality.
Slack et al 2004
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The transcendent approach views quality as synonymous with innate excellence
e.g. Rolls Royce, Rolex, The Hilton.
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The manufacturing-based approach assumes quality is all about making or providing error-free
products or services e.g. Audi’s ‘vorsprung durch technik’.
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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!
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The product-based approach views quality as a precise and measurable set of characteristics
e.g. 0-60 in 4.3 seconds.
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The value-based approach defines quality in terms of value’ e.g. supermarket ‘value’ ranges.
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Quality Characteristics of Goods and Services
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.
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Internal and External Benefits of Quality
Internal Benefits
Reduces costs
Increases dependability
Increases speed
Boosts moral
Increases customer retention
Increases profit
External Benefits
Customer gets correct
product or service
Correct specifications
Appropriate intangibles
Customer satisfaction
Customer retention
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The ‘Iceberg’ theory – how much is immediately visible?
Scrap, waste
Loss of
customers
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British Standards on Quality Costs
• BS 6143 Part 1
• BS 6143 Part 2
• Prevention Appraisal Failure Model (PAF)
• Process Cost Model (PCM)
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Costs of Quality Failure
“Defects are not free, someone makes them and gets paid for the privilege”
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COST OF INTERNAL FAILURE
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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
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Warranty and servicing costs
Product liability / Litigation
Complaints and their administration
Loss of customer goodwill
Inconvenience to other customers
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The Economic Costs of Quality
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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
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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
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An introduction to Quality
The Ferdows and DeMayer Sandcone Model of Operational Improvement:
Cost
Flexibility
Speed
Dependability
Quality
Quality
Quality + Dependability
Quality + Dependability + Speed
Quality + Dependability + Speed + Flexibility
Quality + Dependability + Speed + Flexibility + Cost
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(FERDOWS & DeMAYER Adapted from Slack et al 2004)
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An introduction to Quality
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?
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The
Dimensions of Quality.
An introduction to Quality
The meaning of Quality
Producer’s perspective
Quality of conformance
Production
•Conformance to
specifications
•Cost
Consumer’s perspective
Quality of design
•Quality
characteristics
•Price
Fitness for
consumer use
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Marketing
An introduction to Quality
QUALITY MANAGEMENT
SYSTEM
Management system to direct and control an
organisation with regard to quality
ISO 9000:2000
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An introduction to Quality
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.”
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An introduction to Quality
Summary
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Quality has several dimensions
Quality is not only a system
There are costs to poor quality
Quality is a continuous journey
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