MGT1116E QUALITY

MANAGEMENT
U NIVERSITY OF EC ON OMICS & FINANCE

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 UNIVERSITY OF ECONOMICS &
QUALITY
FINANCE

MANAGEMENT
Lecturer: Phạm Quốc Luyến, PhD.M, PhD.EdM., DBA.

Phone: 091 931 6865 093 899 6865

[email protected]
Email: m Colin Phạm
FB:

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 UNIVERSITY OF ECONOMICS &
QUALITY
FINANCE
MANAGEMENT

Course ID: MGT1116E

Course tittle: Quality Management
Credits: 3
Pre-requisite: None

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 Materials

Main:
Oakland S.J. (2014). Total Quality Management and Operational
Excellence Text with Cases, 4th Edition. London: Routledge.
eBook ISBN 9781315815725
Other:
Goetsch, D.L., & Davis, S.B. (2016). Quality Management for organizational
excellence - Introduction to Total Quality, 8th Edition. NJ: Pearson Education.
ISBN 10: 0-13-379185-8; ISBN 13: 978-0-13-379185-3
Arnold J.R.T, Chapman S.M., & Clive L.M. (2012). Introduction to Materials
Management, 7th Edition, Prentice Hall.

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 Content

Lecture 1. Introduction to Quality Concepts (Chapter 1)

Lecture 2. Total Quality Management (chapter 2)
Lecture 3. Leadership and Commitment (Chapter 3)
Lecture 4. Policy, Strategy and Goal Deployment (Chapter 4)
Lecture 5. Quality Assessment (Chapter 7+9)
Lecture 6. Continuous Improvement (Chapter 13+15)

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 Requirements

Before going to class, students must read corresponding

chapters in the textbook at home.
Complete individual/group exercises and assignments.
Participate in group activities to solve problems, write reports
and deliver presentations on each topic (if any).

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 Group activities

Each group consists of 5-7 students, led by a group leader

(maximum 6 groups).
Members must follow the direction/lead of the leader. If the
leader notices that any member of the group is not
contributing, the lecturer must be informed so that it can be
resolved in the following week.
Each member in the group will evaluate the other members’
participation in group activities (a form will be provided) at
the end of the term.

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 Course Evaluation

Participation 10%
Class activities, Group assignment/presentation (class 20%
sessions: 5 - 11)
Midterm test – Case study presentation (class session 13 20%
or 15)
Final course examination 50%

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 Group Assignments
Class
Topic Group
session
5 William Edwards Deming and his philosophy of quality management 1
6 Joseph Moses Juran and his philosophy of quality management 2
7 Philip Bayard Crosby and his philosophy of quality management 3
8 The TQM Model 4
9 The Malcolm Baldrige National Quality Award (MBNQA) 5
10 The European Foundation for Quality Management (EFQM) model 6
11 ISO quality management standards 7
(res.)

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 Total Quality Management
and Operational Excellence
Today there is a plethora of performance improvement frameworks
including Baldrige, EFQM (European Foundation for Quality
Management), Lean, Six Sigma and ISO 9001,
John Oakland’s famous TQM model, in many ways a precursor to
above frameworks, has evolved to become the ultimate holistic
overview of performance improvement strategy.
Oakland’s famous TQM model redefines Quality by:
1. accelerating change
2. reducing cost
3. protecting reputation.

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 Cases
Case 1 TQM objectives management process in Nissan
Case 2 Sustainable business improvement in a global corporation – Shell
Services
Case 3 Lloyd’s Register improvement program – group business
Case 4 TQM implementation and policy deployment at STMicroelectronics
Case 5 Business process management within TNT Express
Case 6 Process management and improvement at the heart of Fujitsu UK &
Ireland BMS
Case 7 Simplifying business processes to secure competitive advantage for Car
Care Plan (not use)
Case 8 Building quality and operational excellence across ABB
Case 9 The EADS (Airbus Group) Lean Six Sigma approach to performance
improvement
Case 10 Establishing a capability for continuous quality improvement in the
NHS
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 Part One
The Foundations of
TQM
CHAPTER 1. UNDERSTANDING QUALITY

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 Chapter
Outline

1. Quality, competitiveness and customers

2. Understanding and building the quality chains
3. Managing Quality
4. Quality Starts with Understanding the Needs
5. Quality in all functions

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 1.1 Quality, competitiveness and customers

Reputation
for quality, reliability, price, and delivery – all things we compete on
Lessons to be learned about reputation from this story:
1. Competitive elements of quality, reliability, delivery, and price
(Reputation is built upon the competitive elements of
being ‘On-Quality; On-Time; On-Cost’).
2. It takes a long time to change the poor reputation for quality.
3. Reputations, good or bad, can quickly become national
reputations
4. The management of the competitive weapons can be learned
and used to turn round a poor reputation.

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 1.1 Quality, competitiveness and customers

What is quality?
 Dictionary has many definitions: “Essential characteristic,”
“Superior,” etc.
 Some definitions that are accepted in various organizations:
 “Quality is customer satisfaction,”
 Quality is excellence that is better than a minimum standard. It is
conformance to standards and ‘fitness of purpose’
 ISO 9000:2000 definition of quality - It is the degree to which a set of
inherent characteristics fulfills requirements (meeting the customer
requirements).
 Quality is ‘fitness for use’ of the product – Joseph Juran.

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 Quality - Definitions

What is reliability?
 “It is the ability of product and service to continue to meet the
customer requirements”
 Quality is meeting the customer requirements, and this is not
restricted to the functional characteristics of the product or
services.

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 Quality and customer
expectations

Quality is also defined as excellence in the product or service

that fulfills or exceeds the expectations of the customer.
There are 9 dimensions of quality that may be found in
products that produce customer-satisfaction.
Though quality is an abstract perception, it has a quantitative
measure:
𝑄=𝑃
𝐸

where Q = quality, P = performance (as measured by the

Mfgr.), and E = expectations (of the customer).

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 The 9 Dimensions of Quality
 Performance
 Features
 Conformance Performance
-----------------------------
 Reliability
 Durability
 Service
-----------------------------
 Response - of Dealer/ Mfgr. Cost
to Customer
 Aesthetics – of product
Service Features
 Reputation- of Mfgr./Dealer

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 Quality

Quality is not fine-tuning your product at the final stage of

manufacturing, before packaging and shipping.
Quality is in-built into the product at every stage from
conceiving – specification & design stages to prototyping –
testing and manufacturing stages.
TQM philosophy and guiding principles continuously
improve the Organization processes and result in customer
satisfaction.

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 Concepts
How is customer satisfaction achieved?
Two dimensions: Product features and Freedom from deficiencies.
 Product features – Refers to quality of design.
Examples in manufacturing industry: Performance, Reliability, Durability,
Ease of use, Esthetics etc.
Examples in service industry: Accuracy, Timeliness, Friendliness and
courtesy, Knowledge of server etc.
 Freedom from deficiencies – Refers to quality of
conformance.
Higher conformance means fewer complaints and increased customer
satisfaction. (This is related to free from defects.)

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 Why Quality?
Reasons for quality becoming a cardinal priority for most
organizations:
 Competition – Today’s market demand high quality
products at
low cost. Having ‘high quality’ reputation is not enough! Internal
cost of maintaining the reputation should be less.
 Changing customer – The new customer is not only commanding
priority based on volume but is more demanding about the
“quality system.”
 Changing product mix – The shift from low volume, high price
to high volume, low price have resulted in a need to reduce the
internal cost of poor quality.

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 Why Quality?
 Product complexity – As systems have become more complex,
the reliability requirements for suppliers of components have
become more stringent.
 Higher levels of customer satisfaction – Higher customers
expectations are getting spawned by increasing competition.

Relatively simpler approaches to quality viz. product inspection for

quality control and incorporation of internal cost of poor quality into
the selling price, might not work for today’s complex market
environment.

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 1.1 Quality, competitiveness and customers

Research shows that focus on customer loyalty can provide

several commercial advantages:
 Customers cost less to retain than acquire.
 The longer the relationship with the customer, the higher the
profitability.
 A loyal customer will commit more spend to its chosen
supplier.
 About half of new customers come through referrals from existing
clients (indirectly reducing acquisition costs).
Many companies use measures of customer loyalty to
identify customers which are ‘completely satisfied’,
would
‘definitely recommend’ and would ‘definitely
repurchase’
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 Quality perspectives
Everyone defines Quality based on their own perspective of it.
Typical responses about the definition of quality would
include:
1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service

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 Quality levels
At organizational level, we need to ask following questions:
 Which products and services meet your expectations?
 Which products and services you need that you are not
currently receiving?

At process level, we need to ask:

 What products and services are most important to the
external customer?
 What processes produce those products and services?
 What are the key inputs to those processes?
 Which processes have most significant effects on the
organization’s
performance standards?

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