▪ A formalized system that documents processes, procedures, and responsibilities for achieving quality policies and

objectives.
▪ A collection of business processes focused on consistently meeting customer requirements and enhancing their
satisfaction.
Concept of Quality emphasized the use of scientific methods to analyze
and optimize work processes.
(1) Customer-Based
▪ In the 1920s, Walter Shewhart developed the
▪ Quality is the degree to which a specific concept of Statistical Process Control (SPC), which
product satisfies the wants of a specific enabled manufacturers to monitor and improve the
consumer. quality of their processes.
▪ “Fitness for use” (2) Total Quality Management (TQM)
(2) Manufacturing-Based ▪ In the 1940s, the need for high-quality products for
▪ Quality means conformance to requirements. military use led to the development of Total Quality
▪ “Do it right first time” Management (TQM) principles by W. Edwards
Deming.
(3) Value-Based
(3) Lean Manufacturing
▪ Quality is the degree of excellence at an
acceptable price and the control of variability ▪ The Japanese automotive industry developed their
own quality management philosophy, which
at an acceptable cost.
became known as Lean manufacturing.
(4) Product-Based
(4) ISO 9000 Standards
▪ Quality refers to the amount of the unpriced
▪ In the 1980s and 1990s, the ISO 9000 series of
attributes contained in each unit of the priced
quality management standards were developed,
attribute.
which provided a framework for organizations to
(5) Transcendent implement quality management systems and
▪ Quality is neither mind nor matter, but a third achieve certification.
entity independent of the two, even though ▪ ISO 9000 emphasized the importance of customer
Quality cannot be defined, you know what it satisfaction, continuous improvement, and the
is. involvement of all employees in quality
improvement efforts.
Definition of Quality ▪ ISO 9000 certification became a requirement for
many companies to do business with each other,
Q = P/E leading to widespread adoption of quality
Where: management systems.
Q = Quality
P = Performance (organization) (5) Expansion of Quality Focus
E = Expectation (customers)
▪ In recent years, the focus on quality has expanded
If Q>1, then the customer has a good feeling about beyond manufacturing industries to service
the product or service. industries, healthcare, and other sectors.
▪ The emergence of digital technologies and data
✓ An expression in terms of excellent product/service analytics has enabled organizations to monitor and
that fulfills or exceeds customer’s expectation. improve quality in real-time.
✓ A concept that is used to describe the level of
excellence or superiority of a product or service. Dimensions of Quality

(1) Performance – is a measure of a product’s primary

Evolution of Quality
operating characteristics. (i.e. car performance: speed,
(1) Early Developments in Quality Control acceleration, fuel efficiency, and handling.)
▪ In the early 1900s, Frederick Taylor introduced the (2) Features – are the “bells and whistles” or options that
concept of scientific management, which are offered with a product. (i.e. car advanced safety
 features, software application with additional tools and c. Quality audits
capabilities) d. Supplier evaluations
(3) Reliability – relates to the probability that the product (3) Internal Failure Costs: These are the costs incurred when
will not fail within a specified time. (i.e. software defects are identified before the product/service is
application doesn't crash unexpectedly) delivered to the customer, such as:
(4) Durability - relates to the expected operational life of a a. Product Rework
product and can be measured as the mean time to
replacement. (i.e. durable car: can handle rough roads b. Excessive Scrap
and adverse weather conditions without breaking down c. Downtime
or needing frequent repairs)
d. Reinspection
(5) Conformance – reflects how well the product and its
(4) External Failure Costs: These are the costs associated with
individual component meet the established standards.
quality problems that are discovered after the
(6) Serviceability - is concerned with how readily a product product/service has been delivered to the customer, such
can be repaired and the speed, competence, and as:
courtesy associated with that repair. (i.e. ease cost,
a. Warranty claims
friendliness in service)
b. Product recalls
(7) Aesthetics – is a high degree of individual judgement and
that is also highly subjective. (i.e. appearance and c. Customer complaints
impression) d. Damaged reputation
(8) Perceived Quality – is directly related to the reputation
of the firm that manufactures the product. (i.e. brand
CoQ = CoGQ + CoPQ
image).
Where:
CoQ = Cost of Quality
3 Aspects of Quality CoGQ = Cost of Good Quality
CoPQ = Cost of Poor Quality
(1) Quality of Conformance – implies that the manufactured
product or resource rendered must meet the standards
selected in the design process.

(2) Quality of Design – deals with the stringent conditions

that the product or service must minimally possess to
satisfy the requirements of the customer.

(3) Quality of Performance – connected with the operation

of the product when actually put to use or the service
when performed and measures the degree to which it
satisfies the customer
Cost of Quality

It refers to the total costs incurred by an organization to

ensure that its products or services meet quality standards.

(1) Prevention Costs: These are the proactive investments

made to avoid quality problems, such as:
a. Design reviews
b. Process planning
c. Employee training
d. Quality system maintenance
(2) Appraisal Costs: These are the costs of evaluating and
measuring the quality of products/services to ensure they
meet requirements, such as:
a. Inspection
b. Testing