Quality Management and Customer Relations

1. Quality Management and Customer
Relations
Chapter 1

2. Text: Quality Management 5th edition
Authors: David Goetsch & Stanley Davis

3. Chapter One:
The Total Quality Approach
to Quality Management
MAJOR TOPICS
 What is Quality?
 The Total Quality Approach Defined
 Two Views of Quality
 Key Elements of Total Quality
 Total Quality Pioneers
 Keys to Total Quality Success
 Six Sigma Concept
 How is Six Sigma Achieved?
 The Future of Quality Management

4. What is Quality?
 Quality has been defined in a number of ways by a
number of different people and organizations.
 Fred Smith,defines quality as”performance to the
standard expected by the customer.”
 GSA defines quality as”meeting the customer’s
needs the first time and every time.

5. What is Quality?
 Boeing defines quality as”providing our
customers with products and services that
consistently meet their needs and
expectations.
 DOD defines quality as”doing the right thing
right the first time,always striving for
improvement,and always satisfying the
customer .

6. What is Quality?
 Quality applies to products ,services ,
people , processes and environments .
 Qualityis an ever- changing state( What is
considered quality today may not be good
enough to be considered tomorrow.
 Qualityis a dynamic state associated with
products,services,people,processes,and
environments that meets or exceeds
expectations.

7. What is Quality?
 The product,services, people,processes,and
environments element is critical. It makes the
point that quality applies not just to products and
sevices provided but to the people and
processes that provide them and the
environments in which they are provided .

8. What is Total Quality?
 Total quality is an approach to doing business that
attempts to maximize an organization’s
competitiveness through the continual
improvement of the quality of its products, services,
people, processes, and environments.
 TQ consists of continuous improvement activities
involving everyone in the organization – managers
and workers – in a totally integrated effort toward
satisfying such cross-functional goals as quality
,cost,schedule ,mission need ,and suitability .TQ
integrates fundamental management techniques,
existing improvement efforts,and techical tools
under a disciplined approach focused on continued
process improvement . The activities are ultimately
focused on increased customer satisfaction .

9. Two Views of Quality
Traditiona Total
 Defective parts per hundred  Quality parts per million
Defective
l
 Detection of problems  Prevention of problems
 Finished product inspection  Continual improvement
 Passive employees who (blindly)
follow orders  Employees empowered to think
and recommend improvements
 Short term profits
 Long term profits
 Productivity & quality in conflict  Productivity gains are made as a
result of Quality improvements
 Meeting customerspecifications  Exceeding customer
expectations
 Establishing acceptable levels of  Establishing benchmarks for
nonconformance
customer satisfaction &
continually improving
Page
11

10. Two Views of Quality
Traditiona Total
l Quality
 Quality is inspected in  Quality is achieved by product
& process design & effective
control techniques
 Defects are to be expected  Defects are to be prevented
 Quality is a separate function  Quality should be fully
or department
intergrated – it’s everybody’s
responsibility
 Employees blamed for poor
quality
 85% of quality problems are
management’s fault
 Supplier relationships are
short lived & cost driven  Supplier relationships are long
term and quality driven
Page
11

11. Key Elements of Total Quality
 Key characteristics of the total quality approach are as
follows: strategically based, customer focus, obsession
with quality, scientific approach, long-term commitment,
teamwork, employee involvement and empowerment,
continual process improvement, bottom-up education
and training, freedom through control, and unity of
purpose.
 The rationale for total quality can be found in the need
to compete in the global marketplace. Countries that
are competing successfully in the global marketplace
are seeing their quality of living improve. Those that
cannot are seeing theirs decline.
Page
12

12. Key Elements of Total Quality
 Strategically based
– Comprehensive strategic plan based on
customer focus and continual improvement
 Customer focus
– The customer is the driver
 Obsession with quality
– All personnel at all levels must constantly be
asking “how can we do this better?”
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12

13. Key Elements of Total Quality
 Scientific Approach
– Data is used in decision making and problem
solving
 Long-Term Commitment
– Long term commitment to change
 Teamwork
– Breaking down of barriers, rivalries & distrust
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12

14. Key Elements of Total Quality
 Continual process improvement
– To exceed customer expectations, the systems
and processes must be continually assessed
and improved
 Education and training
– It is through education & training that
employees who already know how to work
hard, learn how to work smart
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12

15. Key Elements of Total Quality
 Freedom through control
– The more control there is over a process, the
more the employees can be empowered and
free to spend time eliminating problems.
 Unity of purpose.
– Eliminate/reduce the adversarial relationship
between labor and management
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12

16. Total Quality Pioneers
 W. Edward Deming is best known for his Fourteen
Points, the Deming Cycle, and the Seven Deadly
Diseases.
 Joseph M. Juran is best known for Juran’s Three
Basic Steps to Progress, Juran’s Ten Steps to
Quality Improvement, the Pareto Principle, and the
Juran Trilogy.
 Philip Crosby is best known for his Four Absolutes
of Quality Management
Page
17

17. Deming Cycle
 W. Edwards Deming in the 1950's proposed that business
processes should be analyzed and measured to identify sources of
variations that cause products to deviate from customer
requirements. He recommended that business processes be placed
in a continuous feedback loop so that managers can identify and
change the parts of the process that need improvements. Deming
created a diagram to illustrate this continuous process, commonly
known as the PDCA cycle for Plan, Do, Check, Act*:
 PLAN: Design or revise business process components to improve
results
 DO: Implement the plan and measure its performance
 CHECK: Assess the measurements and report the results to
decision makers
 ACT: Decide on changes needed to improve the process
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19

18. W. Edward Deming Fourteen Points
 The 14 points may at first seem to be a collection of
radical ideas, but the key to understanding most of
them lies in Deming's focus on variation. Variation
was seen by Deming as the disease that
threatened US manufacturing. The more variation -
in part dimensions, delivery times, prices, work
practices, etc. - the more waste.

19. W. Edward Deming Fourteen Points
1."Create constancy of purpose
towards improvement".
Replace short-term reaction with
long-term planning.
2."Adopt the new philosophy".
The implication is that management
should actually adopt his philosophy,
rather than merely expect the
workforce to do so.
Page
20

20. W. Edward Deming Fourteen Points
3."Cease dependence on inspection".
If variation is reduced, there is no
need to inspect manufactured items
for defects, because there won't be
any.
4."Move towards a single supplier for
any one item."
Multiple suppliers mean variation
between feedstocks.
Page
20

21. W. Edward Deming Fourteen Points
5."Improve constantly and forever".
Constantly strive to reduce
variation.
6."Institute training on the job".
If people are inadequately trained,
they will not all work the same way,
and this will introduce variation.
Page
20

22. W. Edward Deming Fourteen Points
7."Institute leadership".
Deming makes a distinction
between leadership and mere
supervision. The latter is quota- and
target-based.
Page
20

23. W. Edward Deming Fourteen Points
8."Drive out fear".
Deming sees management by fear as
counter- productive in the long term,
because it prevents workers from acting in
the organization's best interests.
9."Break down barriers between
departments".
Another idea central to TQM is the
concept of the 'internal customer', that
each department serves not the
management, but the other
departments that use its outputs.
Page
20

24. W. Edward Deming Fourteen Points
10."Eliminate slogans".
Another central TQM idea is that
it's not people who make most
mistakes - it's the process they are
working within. Harassing the
workforce without improving the
processes they use is counter-
productive.
Page
20

25. W. Edward Deming Fourteen Points
11."Eliminate management by
objectives".
Deming saw production targets as
encouraging the delivery of poor-quality
goods.
12."Remove barriers to pride of
workmanship".
Many of the other problems outlined
reduce worker satisfaction.
Page
20

26. W. Edward Deming Fourteen Points
13."Institute education and self-
improvement".
14."The transformation is everyone's
job".
Page
20

27. DEMING'S SEVEN DEADLY DISEASES
 1. Lack of constancy of purpose to plan product
and service that will have a market and keep
the company in business, and provide jobs.
 2. Emphasis on short-term profits: short-term
thinking (just the opposite of constancy of
purpose to stay in business), fed by fear of
unfriendly takeover, and by push from bankers
and owners for dividends.
Page
21

28. DEMING'S SEVEN DEADLY DISEASES
 3. Personal review systems, or evaluation
of performance, merit rating, annual
review, or annual appraisal, by whatever
name, for people in management, the
effects of which are devastating.
Management by objective, on a go, no-go
basis, without a method for
accomplishment of the objective, is the
same thing by another name.
Management by fear would still be better.
Page
21

29. DEMING'S SEVEN DEADLY DISEASES
 4. Mobility of management; job hopping.
 5. Use of visible figures only for management,
with little or no consideration of figures that are
unknown or unknowable.
 6. Excessive medical costs.
 7. Excessive costs of liability.
Page
21

30. Juran
Joseph M. Juran ranks close to Deming in
terms of significant contributions to the
quality movement. Juran has been most
recognized as the person who added the
human dimension to quality, broadening it
from its statistical origins.

31. Juran’s Three Basic Steps to
Progress
The Three Basic Steps to Progress
are broad steps that Juran feels
companies must take if they are to
achieve world-class quality. The
Three Basic Steps are as follows:
Page
22

32. Juran’s Three Basic Steps to
Progress
1. Achieve structured improvements on
a continual basis with dedication and
a sense of urgency.
2. Establish an extensive training
program.
3. Establish commitment and leadership
on the part of higher management.
Page
22

33. Juran’s Ten Steps to Quality
Improvement
1. Build awareness of both the need for
improvement and opportunities for
improvement.
2. Set goals for improvement.
3. Organize to meet the goals that have been
set.
4. Provide training.
5. Implement projects aimed at solving
problems.
Page
23

34. Juran’s Ten Steps to Quality
Improvement
6. Report progress.
7. Give recognition.
8. Communicate results.
9. Keep score.
10. Maintain momentum by building
improvement into the company’s regular
systems.
Page
23

35. Juran Trilogy
 The Juran Trilogy summarizes the
three primary functions of
managers: quality planning, quality
control, and quality improvement.
Each primary function has several
steps.
Page
23

36. Juran Trilogy
1. Quality planning:
– Determine who the customers are.
– Identity customer needs.
– Develop products with features that
respond to customer needs.
– Develop systems and processes that
allow the organization to produce these
features.
– Deploy the plans to operational levels.

37. Juran Trilogy
2. Quality control:
– Assess actual quality performance.
– Compare performance with goals.
– Act on differences between
performance and goals.

38. Juran Trilogy
3. Quality improvement: The improvement of
quality should be ongoing and continual.
– Develop the infrastructure necessary to
make annual quality improvements.
– Identify specific areas in need of
improvement, and implement improvement
projects.
– Establish a project team with responsibility
for completing each improvement project.
– Provide teams with what they need to be
able to diagnose problems to determine root
causes, develop solutions, and establish
controls that will maintain gains made.

39. Philip Crosby’s Four Absolutes of
Quality Management
Phillip Crosby, PhD, former president of
the American Society for Quality
established four absolutes for quality
performance.
1. Definition
of quality is conformance to
requirements, not goodness
2. System for causing quality is
prevention, not appraisal

40. Philip Crosby’s Four Absolutes of
Quality Management
3. Performance standard is zero defects, not
“that’s close enough”
4. Measurement of quality is the cost of
nonconformance, not indexes
Although "zero defects" may seem animpractical
goal, it worthy ideal parameter. The broader
point is to know what you are measuring and
what the proper standard of measurement
should be.

41. Philip Crosby’s Fourteen steps to
Quality management
1."Create constancy of purpose towards improvement".
Replace short-term reaction with long-term planning.
2."Adopt the new philosophy".
The implication is that management should actually adopt his philosophy, rather than
merely expect the workforce to do so.
3."Cease dependence on inspection".
If variation is reduced, there is no need to inspect manufactured items for defects,
because there won't be any.
4."Move towards a single supplier for any one item."
Multiple suppliers mean variation between feedstocks.
5."Improve constantly and forever".
Constantly strive to reduce variation.
6."Institute training on the job".
If people are inadequately trained, they will not all work the same way, and this will
introduce variation.
7."Institute leadership".
Deming makes a distinction between leadership and mere supervision. The latter is
quota- and target-based.

42. Philip Crosby’s Fourteen steps to
Quality management
1."Create constancy of purpose towards improvement".
Replace short-term reaction with long-term planning.
2."Adopt the new philosophy".
The implication is that management should actually adopt his philosophy, rather than
merely expect the workforce to do so.
3."Cease dependence on inspection".
If variation is reduced, there is no need to inspect manufactured items for defects,
because there won't be any.
4."Move towards a single supplier for any one item."
Multiple suppliers mean variation between feedstocks.
5."Improve constantly and forever".
Constantly strive to reduce variation.
6."Institute training on the job".
If people are inadequately trained, they will not all work the same way, and this will
introduce variation.
7."Institute leadership".
Deming makes a distinction between leadership and mere supervision. The latter is
quota- and target-based.

43. Philip Crosby’s Fourteen steps to
Quality management
1."Create constancy of purpose towards improvement".
Replace short-term reaction with long-term planning.
2."Adopt the new philosophy".
The implication is that management should actually adopt his philosophy, rather than
merely expect the workforce to do so.
3."Cease dependence on inspection".
If variation is reduced, there is no need to inspect manufactured items for defects,
because there won't be any.
4."Move towards a single supplier for any one item."
Multiple suppliers mean variation between feedstocks.
5."Improve constantly and forever".
Constantly strive to reduce variation.
6."Institute training on the job".
If people are inadequately trained, they will not all work the same way, and this will
introduce variation.
7."Institute leadership".
Deming makes a distinction between leadership and mere supervision. The latter is
quota- and target-based.

44. Philip Crosby’s Fourteen steps to
Quality management
1."Create constancy of purpose towards improvement".
Replace short-term reaction with long-term planning.
2."Adopt the new philosophy".
The implication is that management should actually adopt his philosophy, rather than
merely expect the workforce to do so.
3."Cease dependence on inspection".
If variation is reduced, there is no need to inspect manufactured items for defects,
because there won't be any.
4."Move towards a single supplier for any one item."
Multiple suppliers mean variation between feedstocks.
5."Improve constantly and forever".
Constantly strive to reduce variation.
6."Institute training on the job".
If people are inadequately trained, they will not all work the same way, and this will
introduce variation.
7."Institute leadership".
Deming makes a distinction between leadership and mere supervision. The latter is
quota- and target-based.

45. Philip Crosby’s Fourteen steps to
Quality management
8."Drive out fear"Deming sees management by fear as counter- productive in the long
term, because it prevents workers from acting in the organization's best interests.
9."Break down barriers between departments".
Another idea central to TQM is the concept of the 'internal customer', that each
department serves not the management, but the other departments that use its outputs.
10."Eliminate slogans".
Another central TQM idea is that it's not people who make most mistakes - it's the process
they are working within. Harassing the workforce without improving the processes they use
is counter- productive.
11."Eliminate management by objectives".
Deming saw production targets as encouraging the delivery of poor- quality
goods.
12."Remove barriers to pride of workmanship".
Many of the other problems outlined reduce worker satisfaction.
13."Institute education and self-improvement".
14."The transformation is everyone's job".

46. Philip Crosby’s Fourteen steps to
Quality management
8."Drive out fear"Deming sees management by fear as counter- productive in the long
term, because it prevents workers from acting in the organization's best interests.
9."Break down barriers between departments".
Another idea central to TQM is the concept of the 'internal customer', that each
department serves not the management, but the other departments that use its outputs.
10."Eliminate slogans".
Another central TQM idea is that it's not people who make most mistakes - it's the process
they are working within. Harassing the workforce without improving the processes they use
is counter- productive.
11."Eliminate management by objectives".
Deming saw production targets as encouraging the delivery of poor- quality
goods.
12."Remove barriers to pride of workmanship".
Many of the other problems outlined reduce worker satisfaction.
13."Institute education and self-improvement".
14."The transformation is everyone's job".

47. Philip Crosby’s Fourteen steps to
Quality management
8."Drive out fear"Deming sees management by fear as counter- productive in the long
term, because it prevents workers from acting in the organization's best interests.
9."Break down barriers between departments".
Another idea central to TQM is the concept of the 'internal customer', that each
department serves not the management, but the other departments that use its outputs.
10."Eliminate slogans".
Another central TQM idea is that it's not people who make most mistakes - it's the process
they are working within. Harassing the workforce without improving the processes they use
is counter- productive.
11."Eliminate management by objectives".
Deming saw production targets as encouraging the delivery of poor- quality
goods.
12."Remove barriers to pride of workmanship".
Many of the other problems outlined reduce worker satisfaction.
13."Institute education and self-improvement".
14."The transformation is everyone's job".

48. Philip Crosby’s Fourteen steps to
Quality management
8."Drive out fear"Deming sees management by fear as counter- productive in the long
term, because it prevents workers from acting in the organization's best interests.
9."Break down barriers between departments".
Another idea central to TQM is the concept of the 'internal customer', that each
department serves not the management, but the other departments that use its outputs.
10."Eliminate slogans".
Another central TQM idea is that it's not people who make most mistakes - it's the process
they are working within. Harassing the workforce without improving the processes they use
is counter- productive.
11."Eliminate management by objectives".
Deming saw production targets as encouraging the delivery of poor- quality
goods.
12."Remove barriers to pride of workmanship".
Many of the other problems outlined reduce worker satisfaction.
13."Institute education and self-improvement".
14."The transformation is everyone's job".

49. Keys to Total Quality Success
 Theorganization has to view Total
Quality as a new way of doing
business, and facilitate the cultural
change which is necessary.
 Never view it as a current or new
management innovation, or a “quick
fix” to production woes.

50. Common errors made when starting
quality initiatives
 Senior management delegation & poor
leadership
– Can not delegate leadership to the Quality
department or an outside consultant.
 Team mania
– Teams will need to be established, but the
approach needs to be learned. Teams will
only be effective when a cultural change
takes place

51. Common errors made when starting
quality initiatives
 The deployment process
– It can not be a directive from “the top”.
Plan must be made for integration of the
TQ principals into the organization and for
the necessary cultural change.
 A narrow, dogmatic approach
– Organizations need to tailor TQ to their
individual needs. They can not simply take
the Demming approach or the Juran
approach, they need to take from all the
models and get the best fit for their
organization.

52. Common errors made when starting
quality initiatives
 Confusion about the differences among
education, awareness, inspiration, and
skill building
– Training and skill building are two
different things. Training can be done
over a short period of time; skill
building takes not only time but a
cultural change to foster that growth.

53. Six Sigma Concept
 Six Sigma is a concept introduced by
Motorola in the mid-1980s that seeks
to improve processes to the point that
the defect rate is just 3.4 per million or
less.

54. Six Sigma Concept
 It involves a 6 step protocol
1. Identify characteristics wanted by
customers
2. Classify the characteristics in terms
of criticality

55. Six Sigma Concept
3. Determine if the characteristics are
controlled
4. Determine the max allowable
tolerances for each

56. Six Sigma Concept
5. Determine the process variation for
each.
6. Change the product design or
process to achieve a 6 sigma
output.

57. Six Sigma Concept
 The Six Sigma Concept is a subset of the broader
concept of Total Quality
 It is a strategy within the context of TQ that moves
the target to a much higher level.
 It is not a concept that replaces TQ, rather it is an
innovative way to pursue a higher level of Quality
under the TQ umbrella.

58. Page
29

59. Page
29

60. How is Six Sigma Achieved?
 Improve process performance
 Robust Design
– Design products that maintain their reliability & performance
even when the component parts of the whole product of
great variability of critical characteristics.
 Design for Manufacture
– Eliminate the possibility of manufacturing errors by
simplifying and “error-proofing” the steps required to
manufacture the product.
Improving processes and rendering the process more
efficient & foolproof are essential elements of TQM.
Motorola set and achieved a previously thought
impossible target.

61. The Future of Quality Management
 Trends affecting the future of quality management
include demanding global customers, shifting
customer expectations, opposing economic
pressures, and new approaches to management.
 To succeed in the global market for now and in the
future, organizations need to operate according to
TQM principals.