5.4 Quality Assurance5.4 Quality Assurance

Chapter 33Chapter 33

What is a quality product?What is a quality product?

A good or service that meets A good or service that meets customers’ expectations and is “fit for customers’ expectations and is “fit for purpose”.purpose”.

Quality is Quality is relativerelative Products don’t have to be expensive to be Products don’t have to be expensive to be

of good quality. (shampoo)of good quality. (shampoo) Products may have to perform perfectly to Products may have to perform perfectly to

be considered good quality (airplanes)be considered good quality (airplanes) What other products can you think of?What other products can you think of?

Quality StandardsQuality Standards

The expectations of customers expressed The expectations of customers expressed in terms of the minimum acceptable in terms of the minimum acceptable production or service standards.production or service standards.

What is YOUR quality standard for PIZZA?What is YOUR quality standard for PIZZA? What is YOUR quality standard for CLOTHING?What is YOUR quality standard for CLOTHING? What is YOUR quality standard for PENCILS?What is YOUR quality standard for PENCILS?

Advantages of producing a Advantages of producing a quality productquality product

Easier to create customer loyaltyEasier to create customer loyalty Saves on costs associated with customer Saves on costs associated with customer

complaints (replacement & compensation)complaints (replacement & compensation) Defective products and loss of customer Defective products and loss of customer

goodwillgoodwill Longer life cyclesLonger life cycles Less advertising as the quality image is Less advertising as the quality image is

reinforced by the performance of its productsreinforced by the performance of its products A higher price – premium price – may be A higher price – premium price – may be

charged which can add to profitscharged which can add to profits

Quality ControlQuality Control

Quality control is based upon inspecting Quality control is based upon inspecting the product or a sampling of products.the product or a sampling of products. Traditional approach to achieving qualityTraditional approach to achieving quality Based upon Based upon inspectioninspection and and checkingchecking

ProductionProduction MP3 player is inspected and checked at the end MP3 player is inspected and checked at the end

of the production line to see if the battery will of the production line to see if the battery will charge.charge.

ServiceService A on-line support person will have customer A on-line support person will have customer

phone calls monitored or recorded.phone calls monitored or recorded.

Quality Control TechniquesQuality Control Techniques 1. Prevention1. Prevention Most effectiveMost effective

Quality should be designed into the product.Quality should be designed into the product.

2. Inspection2. Inspection Traditionally the most important phaseTraditionally the most important phase

Costly and the need for inspection can be Costly and the need for inspection can be reduced by “zero-defect” manufacturing.reduced by “zero-defect” manufacturing.

3. Correction and Improvement3. Correction and Improvement Improves future quality Improves future quality effectiveeffective

Not just fixing faulty products, but fixing the what Not just fixing faulty products, but fixing the what caused the problem in the first place. This will caused the problem in the first place. This will improve future quality.improve future quality.

InspectingInspecting

Emphasis is placed on checking for quality Emphasis is placed on checking for quality at the end of the production line.at the end of the production line.

Products can be inspected periodically during Products can be inspected periodically during production.production.

PROBLEMS:PROBLEMS: ExpensiveExpensive Qualified people need to be usedQualified people need to be used Product may be destroyedProduct may be destroyed May need to sample instead – which means all May need to sample instead – which means all

products aren’t checked for qualityproducts aren’t checked for quality

InspectingInspecting

Issues with inspectingIssues with inspecting Quality-control inspectors check the work othersQuality-control inspectors check the work others

Looking for problems; creates negative culture for workersLooking for problems; creates negative culture for workers Inspectors are “successful” when they find “problems” – Inspectors are “successful” when they find “problems” –

which causes issues for workerswhich causes issues for workers Inspecting is tedious work and inspectors may become Inspecting is tedious work and inspectors may become

demotivateddemotivated If checking is done at “points” in the production process, it If checking is done at “points” in the production process, it

can be hard to locate where the quality error occurred.can be hard to locate where the quality error occurred. Workers will not see quality as their responsibility – but Workers will not see quality as their responsibility – but

that of the quality control inspectorsthat of the quality control inspectors

Quality AssuranceQuality Assurance- A departure from Quality - A departure from Quality

InspectingInspecting Puts emphasis on prevention of poor quality by Puts emphasis on prevention of poor quality by

design during manufacturing rather than design during manufacturing rather than inspecting after it is producedinspecting after it is produced

Stress that workers Stress that workers “Get it right the first time”“Get it right the first time” so so errors are unlikely to happenerrors are unlikely to happen

Establish the quality standard for each stage of Establish the quality standard for each stage of the production processthe production process

Check components, materials, & services when Check components, materials, & services when they are delivered – NOT at the end of production they are delivered – NOT at the end of production or time of useor time of use

Quality AssuranceQuality Assurance

Quality Assurance is considered in all Quality Assurance is considered in all areas:areas:

Product designProduct design Will product meet consumer expectationsWill product meet consumer expectations

Quality of inputs (suppliers and bought-in products)Quality of inputs (suppliers and bought-in products) Suppliers will have to accept strict quality standardsSuppliers will have to accept strict quality standards

Production qualityProduction quality Workers ensure quality production occursWorkers ensure quality production occurs

Customer serviceCustomer service Continued customer satisfaction during and after salesContinued customer satisfaction during and after sales

Advantages of Quality Advantages of Quality AssuranceAssurance

EVERYONE is responsible for quality (a EVERYONE is responsible for quality (a type of job enrichment)type of job enrichment)

Self-checking increases motivationSelf-checking increases motivation

Quality problems can be “traced” to originQuality problems can be “traced” to origin

Reduces expensive final inspections, Reduces expensive final inspections, corrections, and faulty productscorrections, and faulty products

ISO 9000ISO 9000

International Standards OrganizationInternational Standards Organization ISO actually means “equal” in GreekISO actually means “equal” in Greek

ISO is an internationally recognized ISO is an internationally recognized certificate that acknowledges the certificate that acknowledges the existence of a quality procedure that existence of a quality procedure that meets certain conditions.meets certain conditions.

ISO 9000ISO 9000

In order to be accredited, you mustIn order to be accredited, you must Staff training on quality and appraisal methodsStaff training on quality and appraisal methods Methods in place to check suppliers qualityMethods in place to check suppliers quality Quality standards in ALL areas of your businessQuality standards in ALL areas of your business Procedures for dealing with defective products and Procedures for dealing with defective products and

quality failuresquality failures After-sales serviceAfter-sales service

ISO companies are internally audited AND ISO companies are internally audited AND externally audited.externally audited.

Can be expensiveCan be expensive Doesn’t guarantee a quality productDoesn’t guarantee a quality product

QS 9000QS 9000

US counter-part to ISO 9000US counter-part to ISO 9000 Established by US automobile Established by US automobile

manufacturers in 1994 and adopted manufacturers in 1994 and adopted for use by the heavy truck for use by the heavy truck manufacturing industry.manufacturing industry.

It was replaced with ISO/TS 16949 It was replaced with ISO/TS 16949 because of the international nature because of the international nature of car manufacturers and suppliers.of car manufacturers and suppliers.

Total Quality Management Total Quality Management (TQM)(TQM)

An approach to quality that involves An approach to quality that involves all employees in the quality process.all employees in the quality process.

It aims to reduce waste and cost of It aims to reduce waste and cost of rejected low-quality products.rejected low-quality products. LEAN PRODUCTION:LEAN PRODUCTION: Producing goods Producing goods

and services with the minimum of wasted and services with the minimum of wasted resources while maintaining high quality.resources while maintaining high quality.

TQM is a PHILOSPHYTQM is a PHILOSPHY

All employees are responsible for quality from the All employees are responsible for quality from the assembly worker to the delivery driver.assembly worker to the delivery driver.

All employees are empowered to check and verify All employees are empowered to check and verify quality.quality.

Provides high level of job enrichment.Provides high level of job enrichment. Encourages staff to “get it right the first time”Encourages staff to “get it right the first time” Achievement of “zero defects” is a goalAchievement of “zero defects” is a goal If quality is improved, than costs fall and demand If quality is improved, than costs fall and demand

for products risefor products rise REQUIRESREQUIRES commitment from management to commitment from management to

give employees flexibility to make quality give employees flexibility to make quality decisionsdecisions

TQMTQM

Internal customers – people within Internal customers – people within the organization who depend upon the organization who depend upon quality work completed by others.quality work completed by others.

Zero Defects – The aim of achieving Zero Defects – The aim of achieving perfect products EVERY time.perfect products EVERY time.

KaizenKaizen

Japanese term meaning “continuous Japanese term meaning “continuous improvement”improvement”

Employees may know more about Employees may know more about factory improvements than factory improvements than managers.managers.

A series of small improvements can A series of small improvements can be more beneficial that “one-off” be more beneficial that “one-off” improvements.improvements.

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Implementing KaizenImplementing Kaizen

Management must recognize Management must recognize experience of workersexperience of workers

Team working from the workers; team Team working from the workers; team meetings to identify problems and meetings to identify problems and discuss improvement strategiesdiscuss improvement strategies

Employee empowerment to make Employee empowerment to make changeschanges

All staff is involvedAll staff is involvedHL

Limitations of KaizenLimitations of Kaizen

Some changes are not small and Some changes are not small and cannot be introduced graduallycannot be introduced gradually

Resistance from senior managementResistance from senior management Staff training and lost output due to Staff training and lost output due to

meetingsmeetings Improvements tend to be made early; Improvements tend to be made early;

later changes tend to be less later changes tend to be less significantsignificant

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BenchmarkingBenchmarking

Comparing the performance – Comparing the performance – including quality – of a business with including quality – of a business with performance standards throughout performance standards throughout the industrythe industry

““How do I compare with others?”How do I compare with others?”

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Stages of BenchmarkingStages of Benchmarking

1. Identify what areas are to be benchmarked (ask 1. Identify what areas are to be benchmarked (ask and survey customers)and survey customers)

2. Measure these areas (quality records, delivery 2. Measure these areas (quality records, delivery records, customer complaints)records, customer complaints)

3. Identify firms in the industry that are “the best”3. Identify firms in the industry that are “the best”

4. Use comparative data to find your weaknesses4. Use comparative data to find your weaknesses

5. Set standards for improvement5. Set standards for improvement

6. Change your processes to achieve your 6. Change your processes to achieve your standardsstandards

7. Re-measurement: Check to see if you are 7. Re-measurement: Check to see if you are reaching your new higher standards.reaching your new higher standards.HL

Quality SummaryQuality Summary

Quality is not an OPTIONQuality is not an OPTION Quality is an issue for ALL firmsQuality is an issue for ALL firms Satisfying customers with quality Satisfying customers with quality

products/services has clear products/services has clear marketing advantagesmarketing advantages

Involving staff can motivate the Involving staff can motivate the workforceworkforce

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