UNIT- IPRINCIPLES OF QUALITY

MANAGEMENT

What you will know… Definitions of Quality Theories of Deming, Moeller and Crosby Service and Product Quality Customer Orientation Evaluation of TQM- Inspection & QC TQM System Human component

Definitions of Quality Conformance to specification Fitness for use Customer satisfaction Delighting the customer Enchanting the customer

Theories of

Deming, Moeller and Crosby

Deming’s Theory Deming's 14 Points

1. Create constancy of purpose to improve product and service.

2. Adopt new philosophy for new economic age by management learning responsibilities and taking leadership for change.

3. Cease dependence on inspection to achieve quality; eliminate the need for mass inspection by building quality into the product.

4. End awarding business on price; instead minimise total cost and move towards single suppliers for items.

Contd…5. Improve constantly and forever the system of

production and service to improve quality and productivity and to decrease costs.

6. Institute training on the job.

7. Institute leadership; supervision should be to help do a better job; overhaul supervision of management and production workers.

8. Drive out fear so that all may work effectively for the organisation.

9. Break down barriers between departments; research, design, sales and production must work together to foresee problems in production and use.

Contd…10. Eliminate slogans, exhortations and numerical targets for the

workforce, such as 'zero defects' or new productivity levels. Such exhortations are diversory as the bulk of the problems belong to the system and are beyond the power of the workforce.

11. Eliminate quotas or work standards, and management by objectives or numerical goals; substitute leadership.

12. Remove barriers that rob people of their right to pride of workmanship; hourly workers, management and engineering; eliminate annual or merit ratings and management by objective.

13. Institute a vigorous education and self-improvement programme.

14. Put everyone in the company to work to accomplish the transformation.

Moeller’s theory Claus Moeller – Concept of personal quality

1. Set personal quality goals2. Establish own personal quality account3. Check how satisfied others are with your efforts4. Regard the next link as a valued customer5. Avoid errors6. Perform tasks more effectively7. Utilize resources well8. Be committed9. Learn to finish what you start10. Control your stress11. Be ethical12. Demand quality

Crosby’s theoryPhilip Crosby- “Quality is free”

Establish management commitment Form quality improvement teams Establish quality measurements Evaluate the cost of quality. Raise quality awareness Take action to correct problems Zero defects planning Train supervisors and managers Hold a zero defects day Encourage the setting of goals for improvement Obstacle reporting Recognition for contributors Establish Quality councils Do it all over again

Service and Product Quality

Customer satisfaction and service quality are related terms

How to we ensure that our customers are having a good experience?

Measuring service quality:

ServiceQuality

ServiceQuality

ReliabilityReliability

ResponsivenessResponsiveness

AssuranceAssurance

EmpathyEmpathy

TangiblesTangibles

Contd…

Reliability dependability delivering on promises accuracy consistency

Responsiveness promptness helpfulness

Get it right the first time!

and on time!

Assurance competence courtesy credibility security

Empathy easy access good communication customer understanding personalised attention

Tangibles physical evidence

I feel safe

They listen to me

People look smart

The Gaps Model of Service Quality

ConsumerPast

experience

Past experience

Expected serviceExpected service

Perceived servicePerceived service

Service delivery (including pre- and post-

contacts)

Service delivery (including pre- and post-

contacts)

External communications

to consumers

External communications

to consumers

Translations of perceptions into service

quality specifications

Translations of perceptions into service

quality specifications

Management perceptions of consumer expectations

Management perceptions of consumer expectations

GAP 5

GAP 3

GAP 2

GAP 1

GAP 4

Personal needsPersonal needs

Word-of-mouth communications

Word-of-mouth communications

Marketer

Closing the gaps

Learn what customers expect Establish the right service quality

standards Ensure that service performance

meets standards Ensure that delivery matches

promises

Learn what customers expect Use research, complaint

analysis, customer panels Increase direct interactions

between managers and customers

Improve upward communications

Act on information and insights

listen to customers

Establish the right service quality standards Top management commitment to providing

service quality Set, communicate, and reinforce customer-

oriented service standards Establish challenging and realistic service

quality goals Train managers to be service quality leaders Be receptive to new ways to deliver service

quality Standardise repetitive tasks

Prioritise tasks Gain employee acceptance of

goals and priorities Measure performance of service

standards and provide regular feedback

Reward managers and employees for achievement of quality goals

Service Quality AwardsService Quality Awards

Ensure that service performance meets standards

Attract the best employees Select the right employees Develop and support

employees train employees provide appropriate technology

& equipment encourage and build teamwork empower employees internal marketing

Can I take your

order?

Retain good employees measure and reward

service quality achievements

develop equitable and simple reward systems

You are a

Star Service

Provider

Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality

Eight Dimensions of Product Quality

Eight Dimensions of Product Quality 1. Performance

the primary operating characteristics of the product or service.

2. Features the characteristics that supplement the basic functioning of

the product or service. 3. Reliability

probability of the product or service failing within a specified period of time.

4. Conformance the degree to which a product or service meets

acknowledged standards

5. Durability a measure of product life (both technical and economic).

6. Serviceability the speed, courtesy, competence, and ease of repair or

recovery. 7. Aesthetics

how a product or service looks, feels, sounds, tastes, or smells.

8. Perceived Quality various tangible and intangible aspects of the product from

which quality is inferred.

Eight Dimensions of Product Quality …

Customer Orientation

Customer focus Org. focus on

Attracting more customers Making them happy Retaining them

Quality begins and ends with customers

Customer types Type – 1

Knows not what he wants, Knows not that he knows

They are insignificant . But be gentle as he is easy to satisfy

Type – II Knows not what he wants, Knows that he knows not what he wants

Humble, teaching and training will make them knowledgeable; easy to satisfy

Contd… Type – III

Knows what he wants Knows not that he knows what he wants

Sleeping customers; few in number; attractive advertisements will awaken them and make them understand reality

Tough to satisfy

Contd…

Type – IV Knows what he wants Knows that he knows what he wants

Masters of themselves; demanding; large percentage; assume position of king; vital few group

Customer satisfaction model

Delighted customers

Dissatisfied customers

Value addition

Not available Value addition available

Type A customer- without expectations

Type B customers- with expectations

Contd… Customer satisfaction model relates to customer satisfaction

and value addition

TYPE – A Expectations on value addition

No comments when expectations are met Dissatisfied when expectations are not met

TYPE- B No expectations

Normal when expectations are not met Delighted when value addition is provided

Quality strategy: provide value addition not expected by customers

contd… Appropriate strategy would be to

Asses and express the unexpressed customer needs

Train people to be quality conscious Go in for system perfection- ISO Monitor them and look for continuous

improvement Thus C Sat is sure to improve

Holistic approach to customer satisfaction model

3 circle model to explain key factors that constitute customer satisfaction

Human component Efficient

EffectiveRubber bondage

Customer needs

Unaccep

table

System component

Contd… C Sat level depends upon extent of integration of the 3

factors1. Human component

2. System component

3. Customer needs

Human component : Quality consciousness Quality culture among employees

System component: Infrastructure Process perfection

Customer retention model Sustained satisfaction alone will retain customers Customer retention is directly proportional to profits This is called “lifetime retention value” Developed by Joel E Ross Human component need to be in order to retain customers Employee satisfaction is the driver Customer retention is dependent on C Sat. C Sat is proportional to quality

Internal ServiceQuality

C sat

Employeesatisfaction

profitCustomerretention

External service quality

Employee retention

Human component

CUSTOMER RETENTION MODEL

DRIVEROUTCOME

Customer satisfaction Measurement

Helps in planning by revealing the status at every point of time

It tells you where exactly you stand Helps take decisions to prevent or solve

customer dissatisfaction CSM is done using surveys- written or oral

Evaluation of TQM- Inspection & QC

Inspection:

The act of determining conformance or non-conformance of the expected performance is the function of inspection. By inspection, a manager seeks to determine the acceptability or non- acceptability of the parts, products or services. The basis for inspection is usually a specification which is called inspection standard. Inspection is made by comparing the quality of the product to the standard.

When to inspect Inspection is desired at

Finished products and parts to know that correct parts are to be assembled or products are right when shipped,

Before an expensive processing, The out put of automatic machine periodically so

that possible errors are confined to small quantities, and

Before an operation that can’t be undone, for example, in mixing paint.

Frequency of inspection

The challenge is to keep inspection costs minimum, yet realise expected quality. In certain cases every part is inspected, in which case, it is called 100 percent inspection. When it is less than 100 percent , it is called partial or sampling inspection. Parts with high value and those having tendency to run in to large number of rejects are normally subject to 100% inspection.

Quality control

Quality control is a management system for initiating and coordinating: Quality development, quality maintenance and

quality improvement in the various departments of design and manufacturing, for achieving the twin objectives of:

Economical production and customer satisfaction

Objectives of Q C

It is to provide products which are dependable, satisfactory and economical

To ensure economic production of products of uniform quality acceptable to the customer

Aims at preventing the defects rather than detecting the defects

Quality control Techniques

JIT Quality at source Inspection SQC QC TQM

Human component Quality management practices are attempted in

many industries The various factors that contribute to success of

quality practices are Involvement or interest of employers Training on quality practices Top management commitment Conducive work culture Facilities for implementing quality practices

Human factor is very important in the implementation of any process

The top management commitment may be reflected in the following ways

The CEO will initiate quality activities in the organization

Funds will be sanctioned for the quality related activities

Training will be provided for all in the organization including the CEO

The CEO himself will follow quality practices first

Leadership for TQM A leader is expected to posses certain leadership qualities

essential for leadership Leadership is considered as doing right things while

management is doing things right Leadership is influencing the people so that all of them do the

right things, the right way at the right time, willingly. Leaders concentrate on people building and train them to

work as a team. The key word in leadership is “influencing”. The employees

look at the leader’s words through patterns and works and are attracted by it.

A leader is said to be special and have qualities such as cool temperament, maturity, endurance, tact, decisiveness, integrity etc.

Change management Change is the only thing that does not

change Change can be externally imposed or self

imposed Change should come from employees

rather than top management Communication plays a very important role Change one at a time and reap benefits

Drivers of change Competition in market Consumer demand Reduction in profit margin Technological advancements Limited time HR problems/scarcity Quality consciousness Others are doing it National agenda Visionary leader wants it

Resistance to change I don’t understand My workload will be more Old is gold As it is everything is ok Against norms This has failed elsewhere Against my ideals He is new and does not know I am fed up I do not get anything

Ways to change Define the change State why it is needed Tell the benefits Tell success stories Prepare schedule Never accept or expect overnight changes Involve everyone Introduce changes one by one Have meetings and training

End of unit….