MODULE 1
UNDERSTANDING
QUALITY
JASMINE L. CADORNIGARA, MPA
Instructor
OBJECTIVES
At the end of the Module, the student can:
• Define quality
• Learn the different approach to quality definition
• Understand the Quality types
• Learn the Quality Paradigms
• Explain the Cost of Quality
MODULE CONTENTS
Lesson 1.1 : Defining Quality
Lesson 1.2 : Approaches to Quality Definition
Lesson 1.3 : Quality types
Lesson 1.4 : Quality paradigm
Lesson 1.5 : Cost of Quality
LESSON 1.1 : DEFINING QUALITY
➢ Quality is currently everyone's task, not just the inspection
department. People are anticipated to seriously weigh up their jobs
and make the first move to improve their part of the process. Open,
objective measurements are necessary.
➢ Quality is a lot more than the nonexistence of defects which allow
companies to meet customer expectations. Quality needs controlled
process improvement, allowing companies to exceed customer's
expectations.
LESSON 1.1 : Defining Quality (cont..)
➢ Quality will let companies to re-establish pride and loyalty in their
organizations. Quality can only be attained by the nonstop
improvement of all systems and processes in the organization, not
simply the production of products and services but also the design,
development, service, purchasing, administration and indeed, all
aspects of the transaction with the customer.
➢ Quality can only be observed through the eyes of the customers. An
understanding of the customer’s expectation (effectiveness) is the first
step. The exceeding those expectation is required.
LESSON 1.2 : APPROACHES TO
QUALITY DEFINITION
In his book Managing Quality, Harvard Professor David Garin
summarized five principal approaches to defining quality
namely:
1) Transcendent
2) Product-based
3) User-based
4) Manufacturing-based
5) Value-based
LESSON 1.2 : Approaches To Quality
Definition (cont..)
1) Transcendent
• Most people would agree that the Mona Lisa or Michaelangelo's David
are works of art which represent quality because people travel from
around the world to view them. But can they define it? Those who
embrace the transcendental outlook would say, “I can't define it, but I
know it when I witness.“
• Television and print media are flooded with such indescribable claims,
and therein lays the problem that quality is not easy to define or
operationalized. It therefore becomes obscure when using the approach
as a source of competitive advantage. Besides, the functions of design,
production and service may discover it complicated to use the definition
as a starting point for quality management.
LESSON 1.2 : Approaches To Quality
Definition (cont..)
2) Product-based
• Quality is observed as a quantifiable or measurable characteristic
or attribute. For instance durability or reliability. can be measured
and the engineer can draw to that yardstick.
• Quality is concluded objectively. Although this approach has
many benefits, it has limitations as well. The yardstick for
measurement may be deceptive where quality is founded on
individual taste or preference.
LESSON 1.2 : Approaches To Quality
Definition (cont..)
3) User-based
This definition is founded on the idea that quality is an individual issue and
products that best please their preferences (perceived quality) are those
with the highest quality. This is an approach based on reason but directs to
two problems.
a) Consumer preferences differ extensively and it is not easy to combine
these preferences into products with broad demand. This leads to the
selection between a niche strategy and a market aggregation approach
which strives to identify those product attributes that support the needs of
the biggest number of customers.
b) The concerns whether quality and customer satisfaction is the same.
Probably not. One may confess a Montero has many quality attributes, but
contentment may be better realized with an Adventure. One has only to
remember the box office success of recent motion pictures that endure from
poor quality but are obviously favored by the largest number of
moviegoers.
LESSON 1.2 : Approaches To Quality
Definition (cont..)
4) Manufacturing-based
• The definition is focused mainly with engineering and manufacturing
practices and use the universal definition of "conformance requirements."
Requirements or specifications are launched by design and any difference
involves a decline in quality. The concept is relevant to services as well as
products. Superiority in quality is not automatically in the eye f the beholder
but rather in the standards set by the organization. Thus, both Fortuner and
Isuzu Max possess quality, as do Adventure and Innova's as long as the
product or service "conformance requirements" are met.
• This approach has a serious weak point. The consumer's perception of
quality is compared with conformance and thus is internally focused. Stress
on the reliability in design and manufacturing is inclined to attend to cost
reduction as the objective. Cost reduction is perceived in a limited way
which is to invest in design and manufacturing improvement until these
incremental costs equal the costs of non-quality like rework and scrap. This
approach goes against Crosby's concept of “quality is free.”
LESSON 1.2 : Approaches To Quality
Definition (cont..)
5) Value-based
• Value-based-It is defined using costs and prices as well as the
number of attributes. Hence, the consumer's purchase decision is
founded on quality at an up to standard price. This approach is
based on two criteria which is quality and value.
• The highest quality product is not typically the best value. That
description is given to the “best-buy” product or service.
LESSON 1.3 : QUALITY TYPES
In general, quality is meeting and exceeding customer
expectations at a price that he is willing to pay to possess the
product or service.
There are three types of quality which are
1) quality of design;
2) quality of conformance; and
3) quality of performance.
LESSON 1.3 : Quality Types (cont..)
1) Quality of design –
• Is all about set characteristics that the product or service must
minimally have to satisfy the requirements of the customer based on
market research. Thus, the product or service must be designed in
such a way so as to meet at least minimally the needs of the consumer
at a given cost.
• However, the design must be simple and also less expensive so as to
meet the customer’s product or service expectations. Quality of
design is influenced by many factors, such as product type cost, profit
policy, demand of the product, availability of parts and materials and
product reliability
LESSON 1.3 : Quality Types (cont..)
2) Quality of conformance
• Is basically meeting the standards or user based characteristics
defined in the design phase after the product is manufactured or
while the services is delivered.
• It refers to the extent in which the firm and uniformity at a
specified cost with quality requirements based on the study made
on quality design.
LESSON 1.3 : Quality Types (cont..)
2) Quality of conformance
• This phase is also concerned about quality control starting from
raw material to the finished product.
• Three broad aspects are covered in this definition, namely:
a) defect detection,
b) defect root cause analysis, and
c) defect prevention.
LESSON 1.3 : Quality Types (cont..)
2) Quality of conformance
Defect prevention deals with the means to deter the occurrence of
defects and is usually achieved using statistical process control
techniques.
a) Detecting defects may be by inspection, testing or statistical data
analysis collected from process.
b) Subsequently, the root causes behind the presence of defects are
investigated, and
c) Finally corrective actions are taken to prevent recurrence of the
defect.
LESSON 1.3 : QUALITY TYPES (cont..)
3) Quality of performance
• Is how sound the product functions or service performs when put
to use. It measures the degree to which the product or service
pleases the customer from the angle of quality of design together
with the quality of conformance. Meeting customer expectation is
the focus of quality of performance.
• Automobile industry performs test drive of vehicles to gather
information concerning mileage and oil consumption. Bulbs are
life tested to be aware of its reliability throughout its useful life.
Customer survey is carried out to discover customer's perception
about sérvice rendered. If product or service does not meet to
customer expectation, then modifications are considered
necessary in the design or conformance phase.
LESSON 1.4 : QUALITY PARADIGM
❖ Quality Paradigms
1) Custom-craft paradigm
2) Mass production and sorting paradigm
3) Statistical quality control paradigm
4) Total quality management paradigm
5) Techno-craft paradigm
LESSON 1.4 : Quality Paradigm (cont..)
1) Custom-craft paradigm
• In this paradigm the focus is on the product or service and
performance should be exactly as what customer demands.
Each product unit is designed and built exactly the way the
customer wants it.
• The requirements include skilled craftsperson, basic hand
tools, and demand for unique product. Some examples of this
pattern are from bank loans, coffee shops, tailor's shops and.
furniture suppliers.
LESSON 1.4 : Quality Paradigm (cont..)
2) Mass production and sorting paradigm
• Here the focus is on production rate without direct involvement of
the customer. Products are designed and built based on how the
customer defined the products.
• Rework and scrap are obvious since product performance is low.
Sales are taken from the stock held which makes delivery time
typically low. Service organizations under this paradigm are labor-
intensive.
• The requirements consist of interchangeable parts, factory power,
unskilled labor pool, large customer pool and hard-selling. Some
examples of this pattern are from automobile parts and
readymade buildings for commercial enterprises
LESSON 1.4 : Quality Paradigm (cont..)
3) Statistical quality control paradigm
• This paradigm is comparable to the mass production and sorting
paradigm except that more emphasis is given to production
processes. The application of this paradigm together with
mechanized production results in low scrap and rework and low
production cost. Products are designed and built, statistical
process control and statistical sampling are used, and then
customers are generated.
• The requirements comprise interchangeable parts, factory power,
unskilled labor pool, large customer pool, hard-selling, statistical
methods. Some examples of this pattern are from automobile parts
and electronic components.
LESSON 1.4 : Quality Paradigm (cont..)
4) Total quality management paradigm
• This paradigm focuses on customers and suppliers in addition to mass
production and statistical methods. Possible customers participate in
product definition, creation and performance evaluation stages to inform
the producer what to design and build. Using employee involvement and
empowerment, customer-focus, continues improvement, top management
commitment, training and teamwork, the producer successfully delivers a
product the customers want. This paradigm results in high quality product,
low-cost, speedy delivery and substantial decrease for rework and scrap.
• The requirements contain interchangeable parts, factory power, statistical
methods, empowered employees, supplier partnerships, and customer
relationships. Some examples of this pattern are from products/services of
TQM companies.
LESSON 1.4 : Quality Paradigm (cont..)
5) Techno-craft paradigm
• This paradigm is the socio-technical complement to the custom-
craft paradigm with the intention of reducing delivery time. Each
unit is designed and builds exactly the way the customer wants it
built using high level of product process flexibility.
• The requirements incorporate interchangeable parts, factory
power, statistical methods, empowered employees, supplier
partnerships, customer relationships, customer aided design,
and customer-aided manufacturing. Some examples of this
pattern are from the software and apparel industries.
LESSON 1.5 : COST OF QUALITY
❖ Cost of quality
• Is a method that permits an organization to decide on the level to
which its resources are used for activities that avoid poor quality,
that assess the quality of the organization's products or services, and
that result from internal and external failures.
• An organization is able to determine the potential savings to be
gained by implementing process improvements having such
information.
• Essentially quality costs are defined as the total costs acquired by
investing in the prevention of non-conformance to requirements and
appraisal of a product or service for conformance to requirements
and failure to meet requirements.
LESSON 1.5 : Cost Of Quality (cont..)
❖There are two main components of cost of quality
1) Cost of conformance is the cost of making available products
or services based on required standards. Simply it is a good
amount spent such as prevention and appraisal costs.
2) Cost of non-conformance means failure costs linked with a
process not functioning based on required standards. Simply
it is a pointless amount spent like internal and external costs.
LESSON 1.5 : Cost Of Quality (cont..)
Quality-related activities that incur costs may be divided into
four:
1) Prevention costs,
2) Appraisal costs, and
3) Internal failure costs.
4) External failure costs.
LESSON 1.5 : Cost Of Quality (cont..)
1) Prevention costs
These are incurred to prevent or avoid failure problems. Prevention
activities lead to reduce of failure and appraisal cost. These costs are
associated with the design, implementation, and maintenance of the
quality management system. They are planned and incurred before
actual operation, and they could include:
a. Product or service requirements - establishment of qualifications for
inward bound materials, processes, finished products, and services
b. Quality planning - drawing of plans for quality, reliability, operations,
production, and inspection
c. Quality assurance - planning and continuance of the quality system
d. Training- development, preparation, and continuance of programs
LESSON 1.5 : Cost Of Quality (cont..)
2) Appraisal costs
These costs are associated with measuring and monitoring activities
related to quality standards and performance requirements. These
costs take place from spotting defects rather than prevention. These
costs are associated with the suppliers' and customers' evaluation of
purchased materials, processes, products, and services to ensure that
they conform to· specifications. They could include:
a. Verification - checking 'of inward bound material, process setup, and
products against contracted specifications
b. Quality audits - confirmation that the quality system is operating
properly .
c. Supplier rating - appraisal and endorsement of suppliers of products
and services.
LESSON 1.5 : Cost Of Quality (cont..)
3) Internal failure costs
These costs are acquired to treat defects revealed earlier when the product or
service is delivered to the customer. These costs happen when the results of
work fail to attain design quality standards and are noticed before they are
transferred to the customer. They could include:
a. Waste - performance of needless work or holding of stock as an
outcome of errors, poor organization, or communication
b. Scrap- faulty product or material that cannot be repaired, used, or sold
c. Rework or rectification-improvement of flawed material or errors
d. Failure analysis - activity necessary to ascertain the reasons of internal
product or service failure
LESSON 1.5 : Cost Of Quality (cont..)
4) External failure costs
These are costs obtained to treat defects exposed by customers. These costs
occur when products or services that fail to attain design quality standards
are not discovered until after transfer to the customer. They could include:
a. Repairs and servicing - of both returned products and those in the
field
b. Warranty claims - failed products that are replaced or services that are
re-performed under a guarantee
c. Complaints - all work and costs connected with handling and
servicing customers' complaints
d. Returns - handling and investigation of discarded or recalled
products, including transport costs
THANK YOU
Reference:
Textbook: Total Quality Management
Prof. Angelita Ong Camelar-Serrano 2016
https://www.businesslist.ph/companies/tqm
https://dictionary.cambridge.org/us/dictionary/english/quality
https://penpoin.com/core-and-support-business-functions/
ACTIVITY 1:
INSTRUCTION: Write your answer in a piece of paper (yellow pad). Take a
clear photo of your answer and send PM in your instructor’s messenger
account.
Name: ______________ Course And Section: _______ Activity #:____
Enumeration: 20 points
- Give at least Fifteen (15) Customized Products
- Five (5) approach to quality definition
