An introduction-to-quality

An introduction to Quality
Standards in Action
www.bsieducation.org/standardsinactio
n
Introduction to Quality
Expanding the quality myth
Author:
Dr Rhys Rowland-Jones

Standards in Action
n
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

Standards in Action
n
The first question to ask–
What is Quality?
How would you describe whatHow would you describe what
““Quality” means?Quality” means?

Standards in Action
n
QUALITY
• Degree to which a set of inherent
characteristics fulfils requirements
ISO 9000:2000ISO 9000:2000

Standards in Action
n
Phases of Quality Assurance
Acceptance
sampling
Process
control
Continuous
improvement
Inspection
before/after
production
Inspection and
corrective
action during
production
Quality built
into the
process
The least
progressive
The most
progressive

Standards in Action
n
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

Standards in Action
n
The Demming Cycle W.Edwards Demming
Plan
Control
Act & Do
Improvement
Check

Standards in Action
n
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?

Standards in Action
n
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.

Standards in Action
n
Expressing Dissatisfaction
A dissatisfied
customer
Takes
action
Takes
no action
Public action
can 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 product
and/or seller

Standards in Action
n
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.

Standards in Action
n
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.

Standards in Action
n
nality - how well the product or service does the job for which
it was intended.
ance - 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.
overy - 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

Standards in Action
n
Internal and External Benefits of Quality
Reduces costs
Increases dependability
Increases speed
Boosts moral
Increases customer retention
Increases profit
Internal Benefits External Benefits
Customer gets correct
product or service
Correct specifications
Appropriate intangibles
Customer satisfaction
Customer retention

Standards in Action
n
The ‘Iceberg’ theory – how much is immediately visible?
Scrap, waste
Reworking
defects
Rescheduling
Increased labour
costs
Reduced
productivity
Delivery failures
Increasedstock levels
Customer
complaints
Loss of
customers

Standards in Action
n
British Standards on Quality Costs
• BS 6143 Part 1
• BS 6143 Part 2
• Prevention Appraisal Failure Model (PAF)
• Process Cost Model (PCM)

Standards in Action
n
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

Standards in Action
n
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

Standards in Action
n
Quality
Dependability
Speed
Flexibility
Cost
Quality
Quality + Dependability
Quality + Dependability + Speed
Quality + 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:

Standards in Action
n
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?

Standards in Action
n
The meaning of Quality
Quality of conformance Quality of design
Producer’s perspective Consumer’s perspective
Fitness for
consumer use
Production Marketing•Conformance to
specifications
•Cost
•Quality
characteristics
•Price
The Dimensions of Quality.

Standards in Action
n
QUALITY MANAGEMENT
SYSTEM
Management system to direct and control an
organisation with regard to quality
ISO 9000:2000

Standards in Action
n
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.”

Standards in Action
n
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

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