CONCEPT OF

QUALITY

Engr. Bingo B. Cueto, MSIEM,PIE

Industrial Engineering
Learning Objectives
After the discussion, the students are able to:
˃ Define quality and quality improvement
˃ Enumerate and discuss briefly the different
dimensions of quality
˃ Describe the quality management philosophies
of W. Edwards Deming, Joseph M. Juran, and
Armand V. Feigenbaum
˃ Discuss the functions of quality planning, quality
assurance and quality control and improvement
How do we define QUALITY?
"Quality" means different things to different
people. We use the term but the concept and
vocabulary of quality is elusive. If you ask
someone to define the word "quality", you may
get a variety of answers.
Quality Defined
The definition of quality often depends on the
stakeholders. Stakeholders are, as the name implies,
people with some stake or concern in the process.
Perceptions about quality differs according to:
1. Background
2. Tastes and preferences
3. Attitudes and Feelings
Quality Defined
» Ratio of the perceptions of
performance to
expectations.
» Quality to different areas of the society:

AREAS EXAMPLES

Communications Clear, faster, cheaper price

Airlines On-time, comfortable, low-cost

service
Food services Good product, fast delivery, good
environment
Consumer Products Properly made, defect free, cost
containment
Automotive Defect free, accessories availability

Academia High quality of education, on time

knowledge delivery, proper
preparation for the future
Health Care Correct diagnosis, minimum wait
time, lower cost, security
Recognizing Different Perspectives on
Quality
1. Transcendent Definition
˃ Quality is something that is intuitively understood
but nearly impossible to communicate such as
beauty or love.

2. Product-Based Definition
˃ Quality is found in the components and attributes
of a product.
Recognizing Different Perspectives on
Quality
3. User-Based Definition
˃ If the customer is satisfied, the product has good
quality.

4. Manufacturing-Based Definition
˃ If the product conforms to design specifications,
it has good quality.

5. Value-Based Definition
˃ If the product is perceived as providing good
value for the price, it has good quality.
Modern Definitions of Quality

 Joseph Juran & Frank Gryna

˃ "Quality is fitness for use."

 Robert Peach, The ISO 9000 Handbook

˃ "...the totality of characteristics of an entity that
bear on its ability to satisfy stated or implied
needs.“
Modern Definitions of Quality

 Armand Feigenbaum
˃ "Quality is a customer determination based
upon a customer's actual experience with a
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.
Modern Definitions of Quality

 American Society for Quality (ASQ)

˃ "Quality denotes an excellence in goods and
services, especially to the degree they conform
to requirements and satisfy customers.“
Modern Definitions of
Quality
» Conformance to specifications
» Conformance to requirements (Philip Crosby)
» Fitness for use or for purpose ( Juran)
» A predictable degree of uniformity and dependability, at low cost
and suited to the market ( Edward Deming)
» Synonymous with customer needs and expectations (R J
Mortiboys)
» Meeting the (stated) requirements of the customer- now and in
the future (Mike Robinson)
» The total composite product and service characteristics of
marketing, engineering, manufacturing and maintenance
through which the product and service in use will meet the
expectations by the customers (Armand Feigenbum)
Definitions
» Quality Control – Use of techniques to achieve
and sustain the quality.

» Quality Improvements – Use of tools and

techniques to continually improve the product,
service or process

» Statistical Quality Control – Use of statistics to

control quality
Definitions
» Quality Assurance – Planned or systematic
actions necessary to provide adequate
confidence that the product or service will
satisfy given requirements.

» Process – Set of interrelated activities that

uses specific inputs to produce specific outputs.
Includes both internal and external customers
and suppliers.
Product Quality Dimensions

1. Performance
2. Features 5. Durability

3. Reliability 6. Serviceability

4. Conformance 7. Aesthetics

8. Perceived Quality
Source: David Garvin’s Product Quality Dimensions
 Product Quality Dimensions
1. Performance
˃ Refers to the efficiency with which a product achieves its intended
purpose.
˃ Will the product do the intended job?
˃ Primary product characteristics
2. Features
˃ Attributes of a product that supplement a product’s basic performance.
˃ What does the product do?
˃ Secondary characteristics
3. Reliability
˃ The tendency for a product to perform consistently over its useful
design life.
˃ How often does the product fail?
 Product Quality Dimensions

4. Conformance (specifications and tolerance)

⁻ Numerical dimensions for a product’s performance,
such as capacity, speed, size, durability, color, or the
like. (easily quantified and difficult for a service to
conform)
⁻ Is the product made exactly as the designer intended?
⁻ Meeting specifications or industry standards
5. Durability
⁻ The degree to which a product tolerates stress or
trauma without failing.
⁻ How long does the product last?- useful life
 Product Quality Dimensions

6. Serviceability
⁻ Ease of repair easily and cheaply. If service is
rapid, courteous, easy to acquire, and competent,
then the product have good serviceability.
⁻ Resolutions of problems and complaints.
7. Aesthetics
⁻ Subjective sensory characteristics such as taste,
feel, sound, look, and smell. We measure quality
as the degree to which product attributes are
matched to consumer preferences.
 Product Quality Dimensions

8. Perceived Quality
⁻ Quality is as the customer perceives it.
Customers instill products and services with their
understanding of their goodness. This is
perceived quality.
⁻ Past performance and other intangibles
⁻ What is the product reputation of the company
and other intangibles.
Service Quality

Service quality is even more difficult to define than

product quality. This often results from wide variation
created by high customer involvement.
Service Quality Dimensions
1. Tangibles 6. Availability
2. Service Reliability 7. Professionalism
3. Responsiveness 8. Timeliness
4. Assurance 9. Completeness
5. Empathy 10. Pleasantness

Source: Parasuraman, Zeithamel, and Berry’s ( PZB) Service Quality Dimensions

 Service Quality Dimensions

1. Tangibles
˃ Include the physical appearance of the service
facility, the equipment, the personnel, and the
communication material.
2. Service Reliability
˃ Differs from product reliability in that it relates
to the ability of the service provider to perform
the promised service dependably and
accurately.
 Service Quality Dimensions
3. Responsiveness
˃ The willingness of the service provider to be
helpful and prompt in providing service.
4. Assurance
˃ The knowledge and courtesy of employees and
their ability to inspire trust and confidence.
5. Empathy
˃ the customer desires caring, individual
attention paid to customers by the service firm.
 Service Quality Dimensions

6. Availability
˃ The condition of being available, especially of
being easily accessible or obtainable.

7. Professionalism
˃ Conforming to professional standards – the
skills, competence or character expected of a
member of a highly trained profession.
 Service Quality Dimensions

8. Timeliness
˃ Occurring at good time – happening or done at
the right time or an appropriate time.
9. Completeness
˃ Having reached the normal or expected end.
10. Pleasantness
˃ Bringing feelings of pleasure, enjoyment, or
satisfaction.
Responsibility for Quality
» Marketing
» Design Engineering
» Procurement
» Process Design
» Production
» Packaging and Storage
» Inspection and Test
» Service
Responsibility for Quality
» MARKETING – Help to evaluate the level of
product quality that a customer wants, needs.
» DESIGN ENGINEERING – Translate the
customers requirements into operating
characteristics, exact specifications and
appropriate tolerances.
» PROCUREMENT – Responsible for procuring
quality materials and coponents.
Responsibility for Quality
» PROCESS DESIGN – Develops processes and
procedures that will produce a quality
product/service.
» PRODUCTION – Produce quality products and
services.
» INSPECTION AND TEST – Appraise the quality of
purchased and manufactured items and to
report the result.
Responsibility for Quality
» PACKAGING AND STORAGE – Preserve and
protect the quality of the product
» SERVICE – Fully realizing the intended function
of the product during its expected life.
 QUALITY AND
QUALITY
IMPROVEMENT

Engr. Bingo B. Cueto, MSIEM

Industrial Engineering
QUALITY
» QUALITY means “fitness for use”.

There are two general aspects of quality:

 Quality of Design
 Quality of Conformance
QUALITY OF DESIGN

» All goods and services are produced in

various grades or levels of quality. These
variations in grades or levels of quality are
intentional and is known as quality of
design.
Example:
All automobiles have as their basic objective of
providing safe transportation for consumer.
However, automobiles differ with respect to size,
appearances, and performance. This differences
are the result of intentional design differences
between types of automobiles.
Quality of
Conformance
» The quality of conformance is how well the
product conforms to the specifications and
tolerances required by the design.
» It is influenced by a number of factors, including
the choice of manufacturing process, the type of
quality-assurance system used (controls, tests,
inspection activities, etc.)
QUALITY
» QUALITY is inversely proportional with
variability.

˃ This definition implies that if variability in the

important characteristics of a product
decreases, the quality of the product increases.
VARIABILITY
Most organizations find it difficult (and expensive)
to provide the customer with products that have
spotless quality characteristics. A major reason for
this difficulty is variability.
There is a certain amount of variability in
every product; consequently, no two products
are ever identical.

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QUALITY IMPROVEMENT
» Quality improvement is the reduction of
variability in processes and products.
» Alternatively, quality improvement is also seen
as “waste reduction”.
8 Wastes of Lean
» T – Transport – Moving people, products & information
I – Inventory – Storing parts, pieces, documentation ahead of
requirements
M – Motion – Bending, turning, reaching, lifting
» W – Waiting – For parts, information, instructions, equipment
O – Over production – Making more than is IMMEDIATELY
required
O – Over processing – Tighter tolerances or higher grade
materials than are necessary
D – Defects – Rework, scrap, incorrect documentation
S – Skills – Under utilizing capabilities, delegating tasks with
inadequate training
Quality Characteristics
Every product possesses a number of elements that
jointly describe its fitness for use. These parameters
are often called quality characteristics. Sometimes
these are called, critical-to-quality (CTQ)
characteristics.
Quality characteristics may be of several types:
» Physical. Length, weight, voltage, viscosity
» Sensory. Taste, appearance, color
» Time Orientation. Reliability, maintainability,
serviceability
Quality Engineering
» Quality engineering is a set of operational,
managerial, and engineering activities that a
company uses to ensure that these quality
characteristics are at the nominal or required
levels and the variability around these desired
levels is minimum.

58
Statistical Methods
Since variability can only be described in statistical
terms, statistical methods play a role in quality
improvement efforts. Data on quality characteristics
are typically classified as:

» Attributes Data - discrete data, often in the form

of counts.
» Variables Data - continuous measurements such
as length, weight.
Specifications
Quality characteristics being measured are often
compared to standards or specifications.
For a manufactured product, the specifications
are the desired measurements for the quality
characteristics of the components and
subassemblies that make up the product, as well as
the desired values for the quality characteristics in
the final product.
» Nominal or Target Value
A value of a measurement that corresponds to
the desired value for that quality characteristic is
called the nominal or target value.
» Upper Specification Limit (USL)
The largest allowable value for a quality
characteristic is called the upper specification
limit.
» Lower Specification Limit (LSL)
The smallest allowable value for a quality
characteristic is called the lower specification
limit.
» When a component or product does not meet
specifications, they are considered to be
nonconforming.

» A nonconforming product is considered

defective if it has one or more defects.

» Defects are nonconformities that may seriously

affect the safe or effective use of the product.
Concurrent Engineering

Concurrent Engineering is a team approach to

design. Specialists from manufacturing, quality
engineering, management, etc. work together
for product or process improvement.
BRIEF HISTORY OF QUALITY CONTROL
AND IMPROVEMENT
» Walter Shewhart (1924) introduced statistical
control chart concepts.
» The American Society for Quality Control formed in
1946 (now known as the American Society for
Quality (ASQ)).
» 1950s and 1960s saw an increase in reliability
engineering, experimental design, and statistical
quality control
» Competition from foreign industries (Japan)
increases during the 1970s and 1980s.
BRIEF HISTORY OF QUALITY CONTROL
AND IMPROVEMENT
» Statistical methods for quality improvement
use increases in the United States during the
1980s
» Total Quality Management (TQM) emerges
during 1970s and into the 1980s as an
important management tool to implement
statistical methods.
» Malcolm Baldridge National Quality Award is
established in 1988.
BRIEF HISTORY OF QUALITY CONTROL
AND IMPROVEMENT
» ISO 9000 certification activities increase in U.S.
industry in the 1990s.
» Motorola’s Six-Sigma initiative begins in the
1990s.
» ISO 9000:2000 standard is issued. Supply-chain
management and supplier quality become even
more critical factors in business success. Quality
improvement activities expand beyond the
traditional industrial setting into many other
areas including financial services, health care,
insurance, and utilities.
Quality Philosophy and
Management Strategies
Three Important Leaders:
» W. Edwards Deming
- Emphasis on statistical methods in quality
improvement
» Joseph Juran
- Emphasis on managerial role in quality
implementation
» Armand V. Feigenbaum
- Emphasis on organizational structure
W. Edwards Deming
» Deming was asked by JUSE
to lecture on statistical
quality control to
management
» Japanese adopted many
aspects of Deming’s
management philosophy
» Deming stressed “continual
never-ending
improvement”
Joseph M. Juran
» Juran Trilogy
 Planning
 Control
 Improvement
» Control versus breakthrough
» Project-by-project
improvement
Armand Feigenbaum
» Author of Total Quality
Control, promoted overall
organizational involvement
in quality
» Three-step approach
emphasized quality
leadership, quality
technology, and
organizational commitment
Other Quality Philosophies and
Management Strategies

» Total Quality Management (TQM)

» Quality Standards and Registration
˃ ISO 9000
» Six Sigma
» Just-In-Time, Lean Manufacturing, Poka- Yoke,
etc.
MANAGEMENT ASPECTS OF
QUALITY IMPROVEMENT
Effective management of quality requires the
execution of three activities:

1. Quality Planning
2. Quality Assurance
3. Quality Control and Improvement
QUALITY PLANNING
» Quality planning involves identifying
customers, both external and those that
operate internal to the business, and
identifying their needs (sometimes called
listening to the voice of the customer).

» Without a strategic quality plan, an enormous

amount of time, money, and effort will be
wasted by the organization dealing with faulty
designs, manufacturing defects, field failures,
and customer complaints.
QUALITY ASSURANCE
» Quality Assurance is a set of activities that
ensures the quality levels of products and
services are properly maintained and that
supplier and customer quality issues are properly
resolved.

» Documentation of the quality system is an

important component. This involves four
components: policy, procedures, work
instructions and specifications, and records.
QUALITY CONTROL AND
IMPROVEMENT
» Quality control and improvement involve the set
of activities used to ensure that the products and
services meet requirements and are improved on
a continuous basis.

» Since variability is often a major source of poor

quality, statistical techniques, including SPC and
designed experiments, are the major tools of
quality control and improvement.
QUALITY COSTS
Quality costs are those categories of costs that are
associated with producing, identifying, avoiding, or
repairing products that do not meet requirements.
Four Categories of Quality Costs:
 Prevention Costs
 Appraisal Costs
 Internal Failure Costs
 External Failure Costs
PREVENTION COSTS
 Prevention Costs are those associated with efforts in
design and manufacturing that are directed toward the
prevention of nonconformance.
 All costs incurred in an effort to “make it right the first
time”
This includes:
 Quality Planning and engineering
 New products review
 Product/Process design
 Process control
 Training
 Quality data acquisition and analysis
APPRAISAL COSTS
Appraisal Costs are those associated with
measuring, evaluating, or auditing products
components, and purchased materials to ensure
conformance to the standards that have been
imposed.
This includes:
 Inspection and test of incoming material
 Product inspection and test
 Materials and services consumed
 Maintaining accuracy of test equipment
INTERNAL FAILURE COSTS
Internal Failure Costs are incurred when products,
components, materials, and services fail to meet quality
requirements, and this failure is discovered prior to
delivery of the product to customer.
This includes:
 Scrap
 Rework
 Retest
 Failure analysis
 Downtime
 Yield Losses
 Down grading/off-specing
EXTERNAL FAILURE COSTS
External Failure Costs occur when product does not
perform satisfactorily after it is supplied to the
customer.

This includes:
 Complaint adjustment
 Returned product/material
 Warranty charges
 Liability costs
 Indirect costs