Chapter1

INTRODUCTION TO QUALITY MANAGEMENT

Books

 Poornima M. Charantimath - Total Quality Management-Pearson Education (2017) Third

Edition.
 John S. Oakland - Total Quality Management and Operational Excellence_ Text with
Cases-Routledge (2014) Fourth Edition
 Bose, Tapan K - Total quality of management-Dorling Kindersley (India), Pearson (2011)
Graeme Knowles - Quality Management. 1-Bookboon (2011)
 Graeme Knowles - Quality Management. 1-Bookboon (2011)
 Quality Natural Foods Ltd

A well-established and reputed food distribution company servicing the ethnic markets of Canada. It is a success
story of its founders, Jar nail Singh and Sheila Singh, who understood the need for a high quality supplier of
traditional ethnic products to the Asian market in Canada.
Over 20 years, the company has acquired institutional knowledge, long-term relationships, and widespread
recognition that continue to drive its growth. As a result, the company is now the leader in products and service
for Asian ethnic population in Canada, serving retailers from coast to coast.
 Quality has been the primary consideration in the origin and policy of the business.
 The commitment to quality required investment in people and equipment, including appropriate facilities for
receiving, handling, and storage under safe and hygienic conditions.
 Strict adherence to, and implementation of, quality measures assured that products procured and distributed
by the company always matched high quality standards.
 Products are sourced from suppliers with international standards accreditation such as ISO and with whom
ongoing contact was maintained. Quality is closely monitored to the point of the end users.
 The commitment to customers was ensured with adequate inventory, reliable distribution networks. and new
product offerings.
 Quality failure

 Quality failures that are appallingly expensive in terms of money lost, opportunities
foregone and grief incurred. Poor quality processes at its Bhopal pesticide plant cost the
Union Carbide Corporation 420 million pounds in compensation claims in March 1989.
More than 3,400 people have died since December 1984 after a cloud of deadly
methyl isocyanate gas leaked out of a storage tank at the Bhopal plant and floated
over a city of 672,000. It was the worst industrial accident in history with over 200,000
people hurt and 15,000–20,000 suffering lasting injuries.
 The pesticide factory simply lacked the quality and safety processes that exist in similar
pesticide plants in Germany and America, which include towers that rain down foam to
neutralize escaping gases.
With the liberalization of Bangladesh economy, the customer has gained in terms of better quality of
products and services offered by both multinationals and domestic companies.
The competition in the market has widened the choice for customers.
Market dynamics have also moved markets from a seller’s to a buyer’s market. Quality, therefore, has
become critical in view of the stiff competition and the need for Bangladeshi manufacturers and
service providers to gain a stronghold in the international arena.
The twenty-first century can be termed as the century of quality.
Quality is a key driver to market share and quality will have to be integrated into all aspects of a
successful organization.
Efficient production of quality goods and services is a challenge for most businesses today.
A mistake is also termed as an error. When found by the tester, it is termed as a defect. A defect
accepted by the development team is called a bug, and when the build does not meet the
requirements, it is termed a failure.
 Producer’s and Customer’s viewpoint

• Producer’s view point

a defect is a product requirement that has not been met.

quality refers to meeting the product requirements. Increasing the quality of conformance usually
results in closing the producer’s gap. Thus, quality also enables meeting product requirements.

•Customer’s point of view,

a defect is anything that causes customer dissatisfaction.

quality is the degree of fitness permitting use. Freedom from deficiencies in manufacturing industries
covers freedom from defects and errors in the product at the time of delivery and during servicing.
Similarly, in service industries, it means freedom from errors during initial and future transactions.
“Quality is not an art, it is a habit.” Aristotle
What is Quality ?
 What is quality?

Quality starts with understanding customer needs and ends when those
needs are satisfied.
‘Is this a quality watch?’
Answers':
‘No, it’s made in Japan.’
‘No, it’s cheap.’
‘No, the face is scratched.’
‘How reliable is it?’ • ‘I wouldn’t wear it.’
 Definitions of Quality
 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 Definitions of Quality:
Edward Deming a. Conformance to
 Quality is the total composite of product and services characteristics of marketing, requirements
engineering, manufacturing and maintenance through which the product and service b. A degree of
in use will meet the expectations of the customer. —Armand V. Feigenbaum excellence
 Definitions of Quality: a. Conformance to requirements b. A degree of excellence c. c. Totality of
Totality of characteristics which act to satisfy a need d. Fitness for use e. Fitness for characteristics which
purpose f. Freedom from defects g.
act to satisfy a need
 Quality is the conformance to requirements/specifications. This is a definition of quality d. Fitness for use
to find out, how well a product or service meets the targets and tolerances determined
by its designers. —Philip Crosby e. Fitness for purpose
 Quality is the loss (from function variation and harmful effects) a product causes to
f. Freedom from defects
society after being shipped, other than any losses caused by its intrinsic functions. —Dr g. Delighting customers
Genichi Taguchi
 Quality is meeting and exceeding the present and future requirements of the customer
on a continuous basis. —Poornima Charantimath
 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.
Psychological criteria: A way of defining quality that focuses on judgmental evaluations
of what constitutes product or service excellence.

Conformance to requirements (Crosby, 1979)

Continual improvement (Deming, 1982) Zero defects (Crosby, 1979)

Fitness for use (Juran, 1979) Loss of Society (Taguchi 1987)

As defined by the customers

(Ford, 1984; 1990) Meeting and exceeding present and future
requirements of customer on a continuous basis
Six Sigma (Harry and Stewart— (Charantimath, 2006)
Motorola, 1988)
Garvin’s Approaches to Defining Quality
I. Transcendent
"Quality is neither mind nor matter, but a third entity
independent of the two…even through Quality
cannot be defined, you know what it is."
II. Product-Based
"Quality refers to the amounts of the unpriced
attributes contained in each unit of the priced
attribute."
III. User-Based
"Quality is fitness for use." (J.M. Juran, ed., Quality
Control Handbook, p2).
IV. Manufacturing-Based
"Quality [means] conformance to requirements."
"Quality is the degree to which a specific product
conforms to a design or specification."
V. Value-Based
"Quality means best for certain customer conditions.
These conditions are (a) the actual use and (b) the
selling price of the product."
 Quality management

Quality management is a method for ensuring that all the activities necessary for the design,
development and implementation of a product or service are effective and efficient with respect
to the system and its performance.
Quality control, quality assurance and quality improvement are the three main components of
quality management.
Quality management focuses not only on product quality, but also on the means to achieve it.
Quality management, therefore, uses quality assurance and the control of processes as well as
products to achieve more consistent quality
TQM

 TQM is the enhancement to the traditional

way of doing business.
 It is a proven technique to guarantee survival
in the world-class competition.
 TQM is for the most part common sense.
 Analyzing three words (TQM), we have:

Total—Made up of the whole

Quality—Degree of excellence a product or
service provides
Management—Act, art, or manner of handling,
controlling, directing, etc.

 Therefore TQM is the art of managing the

whole to achieve the excellence.
 Umbrella of Quality
Quality control is product-oriented and
focuses on defect identification. It refers
to quality-related activities associated
with the creation of project deliverables
and are performed after the product is
developed.
Quality control is used to verify
deliverables are of acceptable quality
and that they are complete and correct.

Quality assurance is process-oriented

and focuses on defect prevention. It
refers to the process used to create the
deliverables, and can be performed by
a manager, client, or even a third party
reviewer.
Quality Control vs. Quality Assurance
Big picture of QM
 Importance of Quality

The quality of goods and services can impart a competitive edge to an organization. The
importance of quality is stated in the sentence—
“No quality, no sales. No sale, no profit. No profit, no jobs.”
The role of quality needs no further emphasis because it is the key to success in business and for the
achievement of customer satisfaction. Today “quality” is the watchword for the survival and
growth of any organization in the global business environment. Quality increases profits in addition
to enhancing the image of the company.
HCL Info systems
 HCL Info systems
India’s premier IT services, solutions, and distribution company enabling organizations to attain and sustain
competitive advantage by leveraging information and communication technologies.
 Deliver defect-free products, services, and solutions to meet the requirements of our external and internal
customers, the first time, and every time.
 Began at HCL Info systems in the late 1980s.
 Total quality management philosophy for continuous improvement and customer satisfaction. Its concept of
quality addresses people, processes, and products.
 High-quality standards, to fulfill their mission to provide world-class information technology solutions and
services, and to enable to serve their customers better.
 Prestigious CMMI (Capability Maturity Model Integration) Maturity Level 5 certification
 At the World Congress, the company won global awards for excellence in quality management and
leadership.
Speaking on the occasion, Anand Prakash, Vice President—Quality commented, ‘We are honored to be
felicitated by the World Quality Congress awards, which recognizes world-class standards of quality attained by
organizations across India. The award recognizes our commitment to create an enabling environment for HCL Info
systems to attain and sustain the highest standards of quality and services levels for our customers and partners.’
Source: www.hcl.com, last accessed in February 2016.
Quality & Profit
 Types & Levels of Quality

Types of Quality Levels of Quality

1. Quality of design 1. Organizational Level
2. Quality of conformance 2. Process Level
3. Quality of performance 3. The performer or job level or
the task design level
Quality of design
 The Five Paradigms of Quality
The Customer-craft Paradigm
The Mass-production Paradigm
The Statistical Quality Control Paradigm
The Total Quality Management Paradigm
The Techno-craft Paradigm

Dimensions of Product Quality

Dimensions of Service Quality
Garvin’s Eight Dimensions of Product Quality
SERVQUAL Dimensions of Service Quality