Quality Management for Process Excellence – Basic Quality Concepts

Definition of quality

What Do We understand by the word “Quality”? Definition and Example

Most of the time, we get confused when defining the term “quality.” The meaning of the term “quality” varies from place to place. Such as: from the human viewpoint, the term quality refers to the distinctive feature of the individual. In other words, the quality of any individual makes them different compared to other similar things. For example, Fiona’s mother is good at cooking which is a distinctive quality of hers.

Apart from that, we can discuss quality from a business perspective especially manufacturing. It says quality in business refers to being defect-free. In other words, the degree to which a company’s products or services meet or exceed the needs and expectations of its customers. Quality is essential to a company’s operations as it can directly impact the company’s bottom line. High-quality products and services can increase customer satisfaction, repeat business, and positive word-of-mouth advertising, leading to increased revenue and profitability.

From a business perspective, quality can be managed by implementing a quality management system, such as ISO 9001, which provides a framework for establishing and maintaining a quality culture within the organization. This may include implementing processes and procedures for quality planning, control, and improvement, regularly measuring and monitoring the quality of products and services, and taking corrective action when necessary.

Many businesses also measure their quality performance by looking at customer satisfaction, loyalty, and quality-related financial metrics such as warranty costs, returns, and scrap and rework costs.

An example of this would be a retail store that wants to improve customer satisfaction and loyalty; it would focus on providing good quality products and services, customer service, and a pleasant shopping experience. This would lead to repeat customers and positive word-of-mouth advertising.

From the “fitness for use” perspective, quality refers to the degree to which a product or service can meet its intended users’ specific needs and requirements. This includes the product’s ability to perform the functions for which it was designed and its reliability, durability, and ease of use. Fitness for use also provides safety and environmental factors. This perspective emphasizes that quality should be evaluated based on how well the product or service fulfills its intended purpose rather than on arbitrary standards or measurements. Dr. Joseph Juran, considered one of the pioneers of the modern quality movement, is known for his “Juran Trilogy,” which consists of three distinct elements necessary for quality management: quality planning, quality control, and quality improvement.

One of his most famous quotes is, “Quality is fitness for use.” This quote emphasizes the idea that the accurate measurement of a product or service’s quality is its ability to meet the needs and requirements of its intended users. An example of this would be a car manufacturer producing cars that meet safety standards, are reliable and fuel-efficient, and provide a comfortable driving experience for the customers.

Another famous quote from Dr. Juran is, “Quality is everyone’s responsibility.” This quote emphasizes the idea that quality should be a shared responsibility among all members of an organization, from top management to front-line employees. An example of this would be a company’s CEO and leadership team setting the tone for a quality culture while providing the necessary resources and support for all employees to continuously improve the quality of the products and services they produce.

Quality and the bottom line

Quality and the bottom line are closely related. The bottom line refers to a company’s financial performance, typically measured by its net income or profit. High-quality products and services can positively impact a company’s bottom line in several ways:

1. Increased customer satisfaction: High-quality products and services increase customer satisfaction, resulting in repeat business and positive word-of-mouth advertising, ultimately leading to increased revenue.
2. Reduced costs: Implementing a quality management system can help a company identify and eliminate waste, leading to reduced costs and increased efficiency. It can result in improved profitability.
3. Increased competitiveness: High-quality products and services can give a company a competitive advantage in the marketplace, leading to increased market share and revenue.
4. Improved product performance: High-quality products and services tend to perform better, leading to increased customer satisfaction and loyalty and, ultimately, revenue.
5. Compliance: By following standards like ISO 9001, a company can ensure compliance with regulations, avoid penalties and legal action, and maintain its reputation.

An example of this would be a manufacturing company that implements a quality management system, which leads to increased efficiency and reduced costs. This results in increased profitability and competitiveness in the marketplace. This means that quality has a significant impact on the bottom line.

Variation impacts quality

Variation can significantly impact the quality of a product or service. For example, a high degree of variation in the development manufacturing process can lead to inconsistent or defective products. Similarly, in a service setting, taking in the way a task is performed can lead to inconsistent or poor-quality results. To ensure quality, it is essential to minimize variation through standardized procedures, protocols, and training.

Variations in the quality of products or services can significantly impact customer satisfaction and business success. To improve quality, it is essential to understand and reduce variation throughout the value stream. The American Society for Quality (ASQ) categorizes variation into four types: special causes, common causes, tampering, and structural variation. Particular cause variation occurs due to specific circumstances and can be monitored using Statistical Process Control (SPC) charts. Common cause variation is inherent to the process and should not be adjusted. Tampering with the process can increase variation and should be avoided. Structural variation is caused by regular, systematic changes such as seasonal patterns and long-term trends. Common cause variation must be reduced through quality improvement methods such as Six Sigma DMAIC. As former CEO of GE, Jack Welch, stated, “Variation is evil.” Reducing variation is crucial to improving quality.

Error-proofing and quality

Error-proofing, also known as poka-yoke, is a quality control technique that helps to prevent errors from occurring in the first place. It involves designing processes, equipment, and products, so it is easy to make mistakes. By identifying potential sources of error and implementing solutions to prevent them, error-proofing can significantly reduce the number of defects and improve overall quality.

Error-proofing can be applied at various stages in the production process, such as during design, manufacturing, assembly, or testing. It can also be applied to both products and services. Examples of error-proofing techniques include:

• Designing parts or equipment with unique features that prevent them from being assembled incorrectly
• Using colour-coding or other visual cues to help operators correctly identify and select the correct parts
• Using sensors or other technology to detect when a process is about to produce a defect
• Implementing procedures or work instructions to ensure that operators follow the proper steps in a process

Error-proofing is an essential aspect of quality management. It can be used with other quality control techniques, such as Statistical Process Control (SPC) and Six Sigma, to improve overall quality. By preventing errors before they occur, error-proofing can help reduce rework and waste, improve productivity, and increase customer satisfaction.

Quality at the source

“Quality at the source” is a philosophy and approach to quality control in manufacturing and other industries. It emphasizes that quality should be built into a product or process rather than being inspected and tested for defects after production. This approach involves training workers to identify and correct problems as they occur rather than relying on final inspection or testing to catch errors. Organizations can reduce costs, improve efficiency, and increase customer satisfaction by detecting and fixing defects immediately.

For example, in a manufacturing setting, quality at the source might involve training workers to recognize and fix problems as they occur on the production line. This might include teaching them to identify and correct issues with raw materials, machinery, or assembly processes. By catching defects early and fixing them on the spot, the manufacturer can avoid producing large quantities of defective products, which saves time and money.

Another example, in a service-based industry, quality at the source would ensure that the employees are well trained, understand their role and how to handle any situation, and are provided with the necessary tools and information to do their job well.

In both cases, quality at the source aims to build quality into the product or process from the beginning rather than relying on final inspection or testing to catch defects. Organizations can improve overall efficiency and reduce costs by taking a proactive approach to quality control while providing high-quality products and services to their customers.

Cost of quality (COQ)

Cost of quality (COQ) is a term used to refer to the costs associated with ensuring that a product or service meets specific quality standards. These costs can be divided into two main categories: the cost of conformance and the cost of non-conformance.

The cost of conformance refers to the expenses incurred to ensure that a product or service meets the required quality standards. These costs include inspection and testing, employee quality training, and process improvement initiatives.

The cost of non-conformance refers to the expenses incurred when a product or service does not meet the required quality standards. These costs include rework, scrap, warranty claims, and lost customers.

The total COQ for an organization includes the cost of conformance and non-conformance. By understanding and managing these costs, organizations can make informed decisions about improving their processes and products to increase efficiency and reduce costs while maintaining or improving quality.

COQ can be used as a tool to measure the performance of an organization in terms of quality and to assess the effectiveness of the quality management system implemented. It also helps to identify areas where improvements can be made to minimize costs and maximize quality benefits.

Quality planning, control, and improvement

Quality planning, control, and improvement are the three critical components of a quality management system.

Quality planning involves:

• Setting quality goals and objectives.
• Identifying the processes and resources needed to achieve them.
• Developing plans to ensure the goals are met.

This includes identifying customer needs and expectations, establishing quality standards, and determining which processes and resources will be needed to meet those standards.

Quality control involves monitoring and measuring processes and products to ensure that they meet the established quality standards. This includes inspecting and testing products, monitoring process performance, and making necessary adjustments to correct deficiencies.

Quality improvement involves increasing the overall effectiveness and efficiency of the organization’s processes and products. This includes analyzing data from quality control activities, identifying areas for improvement, and implementing changes to improve performance.

Together, these three components form a comprehensive approach to quality management that helps organizations to consistently produce high-quality products and services, meet customer needs and expectations, and continuously improve their performance over time.

Quality planning, control, and improvement are closely related and are implemented in an organization through a quality management system (QMS) such as ISO 9001. These systems provide a framework that helps organizations to plan, establish, implement, review, and improve the processes necessary to meet customer requirements and achieve their quality objectives.

Dr. Joseph M. Juran, an American engineer, management consultant, and author, is known for his contributions to the field of quality management. He is widely recognized as one of the key figures in the development of the quality management field and is known for his work on quality planning, control, and improvement.

Dr. Juran has stated that: “Quality planning, control, and improvement are three distinct and separate functions, each with its own set of processes and activities. However, they are interrelated and dependent upon one another. Quality planning sets the objectives and targets, quality control monitors performance, and quality improvement makes the necessary adjustments to achieve the objectives.” To summarise, quality improvement should not be confused with continuous incremental improvement.