TOTAL QUALITY MANAGEMENT

ADDITIONAL NOTES:

Evolution of Quality Based on Philosophies:

1. 1930’s – Stewart Cycle2. 1950’s – Deming in Japan3. 1980 – Productivity/Quality Circles4. 1985 – Deming/Crosby/Juran5. Late 1980s – Total Quality Management6. 1990- Current – Baldrige Criteria

Attractive Quality Element

When new products are developed, just making them different from the existing product doesn’t mean they will sell well. For new products to sell well, they must be attractive to customers. For this to happen, it is necessary to develop new products that have attractive quality elements. For this purpose, you have to either improve customer satisfaction by significantly producing latent customer dissatisfaction or attract customer by providing totally new quality elements with which the customers are currently neither satisfied nor dissatisfied.

Examples: Digital cameras In the automobile industry, the navigation system GPS (Global Positioning System) for car driving is another example of attractive quality.

Must-be Quality Element

Must be requirements are minimum requirements that cause dissatisfaction if not fulfilled but does not lead to customer dissatisfaction if fulfilled or exceeded. Negative performance on his attributes has a greater impact on overall satisfaction than satisfied performance. The fulfillment

of basic requirements is necessary not a sufficient condition for satisfaction. Basic requirements are entirely expected. The customers regard them as pre-requisites, they are taken for granted.

Example: Cellular phonesService: Customers expect 99.9% system up-time. Their level of satisfaction does not improve when up-time is increased, but downtime decreased leads to severe dissatisfaction.

Cost of Quality

External Failure Cost – occur after delivery or shipment of the product, or during or after furnishing of a service to the customer. Examples include cost of processing customer complaints including necessary field service, customer returns, warranty claims and product recalls.

Internal Failure Cost – occur prior to delivery or shipment of the product, or the furnishing of service to the customer. Examples include reinspection, retesting, material review and downgrading.

Appraisal Cost – cost associated with measuring, evaluating, or auditing products or services to assure conformance to quality standards and performance requirements. This include the costs of incoming and source inspection/test or purchased materials, validation, verification and checking activities; in-process and final inspection tests, product process or service audits, calibration of measuring and test equipments and the costs of associated supplies and materials.

Prevention Cost – the costs of activities specifically designed to prevent poor quality in products or services. Examples include the costs of new product review, quality planning, supplier capability surveys, process capability evaluations, quality improvement team meetings, quality improvement projects quality education and training.