Introduction

to
Quality

1-1
 What are the
Car A
differences?

1. Price
2. Quality Car B
3. Specification
4. Comfortable

Value for money

What is Quality ?
Sales Dept Marketing Dept Design Dept

Production Dept Production Engineering Customers

1-3
Cont…

Services

Product

1-4
Cont…
Product

1-5
Cont…
Services

1-6
Cont…
If You Ask 10 People to Define Quality, You Probably Will Get
10 Definitions – Foster (2010) – pg 29

According to Summers, Donna C. S. :

The American Society for Quality defines quality as a subjective term for which
each person had his or her own definition. In technical usage, quality can have two
meanings : (a) the characteristics of a product or service that bear on its ability to
satisfy stated or implied needs; (b) a product or service free of deficiencies.

Dr. W. Edwards Deming describes quality as ‘nonfaulty systems’ – are error-free

systems that have ability to provide the consumer with a product or service as
specified.

Dr. Joseph M. Juran describes quality as fitness for use.

Philip Crosby describes quality as conformance to requirements (nonquality as

nonconformance).

1-7
Cont…
Summers, Donna C. S. (2010) concluded that the above
definitions stated three types of quality:
Quality of Design – means that the product has been designed to successfully fill a
consumer need, real or perceived.

Quality of Conformance – means conformance to requirements, refers to the

manufacture of the product or the provision of the service that meets the specific
requirements say by consumer.

Quality of Performance – means that the product or service performs its intended
function as identified by the consumer.

Summers, Donna C. S. (2010) stressed -- that clearly

communicating the needs, requirements, and expectations of
the consumer requires a more complete definition of quality.

1-8
Cont…
But … Summers, Donna C. S. (2010) believes that perhaps most
complete definition of quality is as defined by Armand Feigenbaum :
Quality is a customer determination which is based on the customer’s actual experience with the
product or service, measured against his or her requirements – stated or unstated, conscious or merely
sensed, technically operational or entirely subjective – and always representing a moving target in a
competitive market.

Some key words stand out from this definition are :

a. Customer Determination – only a customer can decide if and how well a product or service meets his or
her needs, requirements, and expectations.
b. Actual Experience – the customer will judge the quality of a product or service not only at the time of
purchase but throughout usage of the product or service.
c. Requirements – necessary aspects of a product or service called for or demanded by the customer may be
stated or unstated, conscious or merely sensed.
d. Technically Operational – aspects of a product or service may be clearly identified in words by the
consumer.
e. Entirely Subjective - aspects of a product or service may only be conjured in a consumer’s personal
feelings.

1-9
Recognizing Different Perspectives on Quality.

a. Product Quality Dimensions

b. Service Quality (SQ) Dimensions

1 - 10
Cont..
a. Product Quality Dimensions

Foster (2010) – David Garvin found that most definitions of quality were either (a) transcendent, (b)
product-based, (c) user-based, (d) manufacturing-based, or (e) value-based.

Transcendent – Quality is something that is intuitively understood but nearly impossible to

communicate, such as beauty or love.

Product-based – Quality is found in the components and attributes of a product.

User-based – If the customer is satisfied, the product has good quality.

Manufacturing-based – If the product conforms to design specifications, it has good quality.

Value-based – If the product is perceived as providing good value for the prove, it has good
quality.

1 - 11
GARVIN’S PRODUCT QUALITY DIMENSIONS

Performance

Features Durability
Name a
Reliability PRODUCT Serviceability

Conformance Aesthetics

Perceived Quality

1 - 12
From these five definitions of quality, Garvin developed a list of eight quality dimensions:

i. Performance – refers to the efficiency with which a product achieves its

intended purpose. This might be the return on a mutual fund investment, the
fuel efficiency of an automobile, or the acoustic range of a pair of stereo
speakers. Generally, better performance is synonymous with better quality.

ii. Features – are attributes of a product that supplement the product’s basic
performance. These include many of the ‘bells and whistles’ contained in
products. For example Electronic shop / store will reveal some features such
as HDTC capability, plasma, and size.

iii. Reliability – refers to the propensity for a product to perform

consistently over its useful design life. A product considered reliable if the
chance that it will fail during its designed life is long. For example if a
computer has a 2% chance of failure in useful life of 5 years, we say that it is
98% reliable.

1 - 13
Cont…
iv. Conformance – when a product is designed, certain numeric dimensions for the product’s performance
are established, such as capacity, speed, size, durability, or the like. These numeric product dimensions are
referred to as specifications. Specifications typically are allowed to vary small amount called a tolerance. If a
particular dimension of a product is within the allowable range of tolerance of the specification, it conforms.
For example video camera.
v. Durability – is the degree to which a product tolerates or trauma without
failing. For example car battery.
vi. Serviceability – a product is very serviceable if it can be repaired easily and
cheaply. For example personal computer.
vii. Aesthetics – are subjective sensory characteristics such as taste, feel, sound,
look, and smell. In terms of aesthetics, we measure quality as the degree to
which product attributes are matched to consumer preferences. For example cell
phone color.
viii. Perceived Quality – is based on customer opinion. Customer imbue
products and services with their understanding of their goodness. This is
perceived quality.

1 - 14
 SERVICE QUALITY DIMENSIONS
Parasuraman, Zeithamel, and Berry’s Service Quality Dimensions

Tangibles Responsiveness

Service Assurance
Reliability

Empathy

1 - 15
Cont..
b. Service Quality (SQ) Dimensions
Foster (2010), SQ is even more difficult to define than product quality. Although
services and production share many attributes, services have more diverse quality
attributes than products.

Parasuraman, Zeithaml, and Berry (1985), published a

widely recognized set of service quality dimensions.

Reliability : Delivering on Promises:

•is defined as the ability to perform the promised service dependably and
accurately.
•means that the company delivers on its promises – promises about delivery,
service provision, problem solution and pricing.

1 - 16
1 - 16
Cont..
Responsiveness:
•is the willingness to help customers and to provide prompt services.
•emphasizes attentiveness and promptness in dealing with customer requests, questions,
complaints, and problems.
•is communicated to customers by the length of time they have to wait for assistance, answers to
questions or attention to problems.
•also captures the notion of flexibility and ability to customize the service to customer needs .
•to excel the dimension of responsiveness, a company must be certain to view the process of
delivery and handling request.

Assurance : Inspiring Trust and Confidence:

•is defined as employees’ knowledge and courtesy and ability of the firm and
its employees to inspire trust and confidence.

1 - 17
1 - 17
Cont..
Empathy : Treating Customers as Individual –
•is defined as the caring, individualized attention the firm
provides its customers.
•essence of empathy is conveying, through personalized or
customized service, that customers are unique and special.
Customers want to feel understood by and important to firms
that provide service to them.

Tangibles : Representing the Service Physically –

•are defined as the appearance of physical facilities, equipment,
personnel, and communication materials.
•All these provide physical representations or images of the
service that customers, particularly new customers, will use to
evaluate quality.

1 - 18
1 - 18
 WHY DOES IT MATTER THAT DIFFERENCE
DEFINITIONS OF QUALITY EXIST?

Understanding that definitions and dimensions of

quality exist allows measures to be taken to provide a
better basis for communication and planning in a
firm.

1 - 19
1.3. Differing Functional Perspectives on
Quality.
 One of the important determinants of how we perceive
quality is the functional role we fulfill organizationally.

 Functional Perspectives include:

 Supply Chain Perspective
 Engineering Perspective
 Operations Perspective
 Strategic Management Perspective
 Marketing Perspective
 Financial Perspective
 Human Resource Perspective

1 - 20
1 - 20
Cont…
A. Supply Chain Perspectives
 The value chain includes inbound logistics, core
processes, and outbound logistics, human
resources, information systems, and purchasing.
 Operations, logistics, and marketing are the
primary participants in supply chain.

1 - 21
1 - 21
Cont…

B. Engineering Perspective
 The major emphasis of engineering perspective are:

 Product Design Engineering

 Concurrent Engineering

 SPC

1 - 22
1 - 22
Cont…
Product Design Engineering (PDE)

 The PDE involves

all those activities associated
with developing a product from
concept development to final design and
and implementation.
• Product design is the key because quality is assured
at design stage.

1 - 23
1 - 23
Cont…

Concurrent engineering
 Concurrent engineering involves the
formation of cross-functional team.
 This allows engineers and managers
of differing disciplines to work
together simultaneously in developing
product and process designs.
 Concurrent design has been improved
quality and faster speed to market for
news products.

1 - 24
1 - 24
Cont…
 SPC
 Is concerned with monitoring process capability and process
stability.

1 - 25
1 - 25
Cont…

C. Operations Perspective
 Operation management view of quality is rooted in the engineering approach but grown beyond the
technical engineering perspective.

 Uses the Systems View that underlies modern Quality management thinking.

 Systems view involves the understanding that product

quality is the result of the interactions of several variables,
such as machines, labors, procedures, planning, and
management.

1 - 26
1 - 26
Cont…
 Operation management uses the system view which is involves the understanding that product quality is the result of the
interactions of several variables, such as machine, labor, procedures, planning, and management.

Planning Organizing

Input Process Output Customer

Process Feedback
Control
Controlling

1 - 27
1 - 27
Cont…

D. Strategic Management Perspective

 Strategic refers to the planning, processes used by an organization to achieve a set of

long-term goals.

 The keys are planning processes and a

long-term orientation
 This plan must be cohesive and coherent with goals, policies,
plans, and sequence to achieve quality improvement.

1 - 28
1 - 28
 Mission/Vision/Goals

External Analysis Internal Analysis

Strategic Options

Business-Level Strategy
…………………………
Corporate-Level Strategy
………………………….
Operational Subplans

Organizational Design Change Management Organizational

Reward System

Strategic Alignment
between Structure and
Goals
1 - 29
1 - 29
Cont…
E. A Marketing Perspective
 Traditionally, the term marketing has referred to activities involves with
directing the flows of products and services from the producer to the
consumer.

 More recently, in a trend known as customer

relationship management, marketing has directed
its attention toward satisfying the customer and
delivering value to the customer.

 The marketers focus on perceived quality

(means that quality as the customer views it) of
product and services.
 The primary marketing tools for influencing
customer perceptions of quality are price and
advertising.

1 - 30
1 - 30
Cont…

 Marketing also concerned about systems.

Marketing System

Organization

Offering Payment

Offering Intermediary Payment

Offering
Payment

Customer

1 - 31
1 - 31
Cont…

 Another important contribution of the marketing

perspective are :

 Time of the transaction

 After-sales support

1 - 32
1 - 32
Cont…
F. A Financial Perspective
The finance function is primarily interested in the
relationships between the risks of investments
and the potential rewards resulting from those
investments.
 Deming: Quality Improvement is linked to reduction of defects and
improved organizational performance.

Juran: Quality related costs can result in

lost sales because of a poor reputation for
reliability.

1 - 33
1 - 33
Improve Quality Deming Value Chain
Cost Decrease (Less
rework, fewer
mistakes, fewer delays,
snags, better use of
machine time and
materials)

Productivity Improves

Capture the Market

Stay in Business

Provide Jobs and More

Jobs

1 - 34
1 - 34
Cont…
G. Human Resources
 It is impossible to implement quality without the
commitment and action of the employees.

1 - 35
1 - 35
1.4. Other Perspectives on Quality.
H. Value-Added Perspective on Quality
 A Value-Added Perspective on Quality
involves a subjective assessment of the
efficacy of every step of the process for the
customer.

1 - 36
1 - 36
Cont…
I. Cultural Perspective on Quality

 National / International marketers have long

noted differences in taste and preferences
between cultures and nations.

1 - 37
1 - 37
1.5. Quality Concepts.
 Garvin (1988) – quality is an unusually slippery
concept, easy to visualize and yet exasperatingly
difficult to define. It remains a source of great
confusion to manager.

 The concept derived or inferred from specific instances

or occurrences or a thought or notion.

 The concept of Quality is very similar to the concept

of beautiful or good.

 It is very difficult to define and one definition can be

the opposite of another.

 We must deal with reason and attempt to define

clearly what we are hoping to achieve in the study of
this topic.

1 - 38
1 - 38
Cont..

Sinha and Willborn (1985)--- an abstract explanation of

quality concept as follows :

 Quality is what people think it is, perceive it to be, or

experience it to be.
 Quality perceived as high, low, or negative, describes its value
in utility and useful.

 Quality is not always what the consumer buys and expects as

fair and adequate.

 Quality is also understood as ‘excellence,’ which is better than

a minimum standard.

1 - 39
1 - 39
Cont..
 Quality means not just fitness for use but, in more specific
terms, reliability, safety, maintainability, status etcetera.

 Quality in business is expressed as specified standards against

which actual performance and conformance can be measured.
 Quality, understood as product and service characteristics that
are specified, standardized, and contracted, has a relationship
to quantity, time, and space..
 Quality also is an expression of the people who contribute to
produce. Attaining quality is thus everybody’s responsibility.
 Quality is totality of all attributes and characteristics of a
product or service as specified, required, and expected.

1 - 40
1 - 40
Cont..

Four quality concepts

 Zero Defects

Implies that there is no tolerance for errors within the

system.

The goal of all processes is to avoid defects in the

product or service.

Similar to six sigma: almost zero defects

1 - 41
1 - 41
Cont..
 The Customer is the Next Person in the Process

 The internal organization has a system that ensures the product

or service is transferred to the next person in the process in a
complete and correct manner.

 The product or service being built is transferred to another

internal party only after it meets all the specifications and all
actions at the current work station.

 Avoids incorrectly assembled components and poor

workmanship.

1 - 42
Cont..

 Do the Right Thing Right the First Time

 Implies that it is easier and less costly to do the work right the
first time than it is to do it the second time.

 Entails the training of personnel to ensure sufficient skills and

tools to correctly complete the work.

1 - 43
Cont..
 Continuous Improvement Process (CIP)/ Kaizen

 A sustained, gradual change to improve the situation.

 Differs from innovation -- does not make a sudden jump to a plateau

where it matures over time.

 Focuses on 11 principles: constancy of purpose, commitment to

quality, customer focus and involvement, process orientation,
continuous improvement, system-centered management, investment
in knowledge, teamwork, conservation of human resources, total
involvement, and perpetual commitment.

1 - 44
Cont.. – Quality Concepts in Education

 There are four main issues: Johnson and Golomskiss (1999)

 Incorporation of quality concepts in the curriculum.

 Using quality concepts to improve educational administration.
 Using quality concepts to improve the teaching of any subject
 Quality concepts in doing research

1 - 45
Cont.. – Quality Concepts
 Garvin, D.A. (1988) in his book ‘Managing Quality : The
Strategic and Competitive Edge.’ … Five principle
approaches to defining quality are (as being discussed
earlier):

 Transcendent (Luar Biasa)

 Product-based
 User-based
 Manufacturing-based
 Value-based

1 - 46
Cont.. – Quality Concepts

QM

QA
QC

1 - 47
QC QA QM
Monitoring process capability FMEA Planning for Quality
and stability Improvement
Measuring process Concurrent engineering Creating a quality
performance organizational culture
Reducing process variability Experimental design Providing leadership and
support
Optimizing processes to Process improvement Providing training and
normal measures retraining
Performing acceptance Design team formation and Designing an organizational
sampling management system that reinforce quality
ides
Developing and maintaining Off-line experimentation Providing employee
control charts. recognition
Reliability / durability product Facilitating organizational
testing communication

1 - 48
1.6. Quality and Competitiveness Concepts.

Operation Management

Product &
Quality Mgt
Services

Global Operations
Process,
Technology, Project Mgt
Quality

and Capacity
SPC

Facilities

Designing the System

Human
Resources

Competitiveness
Sumber : Russell, R.S and Taylor III, B.W. (2006). Operations Management : Quality and
Competitiveness in a Global Environment. 1 - 49
Cont…

 Quality Management – management is a process involving

certain functions and work activities that managers must
perform to achieve an enterprise’s goals.

 Products and Services – the design process converts customer

requirements into technical product or service characteristics.

 Processes, Technology, and Capacity – once the product/service has

been designed, the physical process for producing the product/service
must be prepared. Process planning involves deciding what tasks
need to be done, what labor and equipment resources are needed, and
how they are to be coordinated.

1 - 50
Cont…

 Facilities – to be effective, processes must be physically

housed in facilities that are laid out in an efficient fashion.

 Human Resources – a primary component of production

(product/service) is the work performed by people, alone, together, or
with machines and equipment.

 Project Management – is a technique at breaks down complex

processes, schedules activities, and ensures that the project is
completed on time and on budget.

1 - 51
Summarizing
What is
quality

Quality and
Recognizing
Competitiveness Different
Perspectives
on Quality

Quality
Concepts
End Differing
Functional
Perspectives
Other on Quality
Perspectives
on Quality

1 - 52