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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
An essential quality management resource for students and practitioners alike--now in its sixth edition This popular and highly successful text on Quality Management has been fully revised and updated to reflect recent developments in the field. New to the Sixth Edition is timely coverage of agile development, emerging markets, product research, evidence based decision-making, and quality control. Some of the material has been re-ordered and changes to terminology have been made to bring the book completely up to date. Contributions from new co-author David Bamford offer insights from a veteran teacher and practitioner. * A popular resource for students, academics, and business practitioners alike * Combines the latest information on quality management system series standards with up-to-date tools, techniques and quality systems * Includes insights on quality, operations management, and strategic process improvement * Highly relevant for professionals, particularly those involved with reacting to rapid developments in the global market The word "quality" has many definitions, dependent on context and situation. It is often over-used but always in-demand, and it can make or break a business. Quality management is becoming an increasingly vital factor in the success of a product or service, and it requires constant attention and a continuous drive to do better. Managing Quality is a comprehensive resource that helps you ensure - and sustain - high quality standards.
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Veröffentlichungsjahr: 2016
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‘Barrie and David are among the leading researchers and the best teachers in total quality management. Their teaching in quality management and performance improvement at Manchester Business School was very well liked by their students for many years. In this sixth edition of the book, they have chosen to cover a broad range of topics in TQM in great depth. While different companies may take different approaches to achieve their strategic goals, no company could afford not to commit itself to improving the quality of its products and services for ultimate customer satisfaction. This book introduces all important areas of TQM to students and provides a rich knowledgebase for both study and practice in quality management.’
Professor Jian-Bo Yang, Chair of Decision and System Sciences, Alliance Manchester Business School, The University of Manchester
‘Previous editions of this excellent text have provided the basis for student reading and class reflection on current issues in quality management, but I am particularly pleased to see an excellent set of online resources to accompany the new book. The presentation material, exercise questions and video/web links provide an invaluable resource both for lecturers teaching the subject for the first time, but also for experienced teachers wishing to compare, contrast and update their material when adopting the book and planning future course delivery. I will certainly adopt and adapt the resources provided in my teaching of quality management from now on.’
Dr Paul Forrester, Senior Teaching Fellow, Keele Management School, Keele University
‘A sustained focus on Quality Management is arguably the most important attribute of a competitive organization. An essential read for students, scholars and practitioners, the textbook provides an extensive examination of contemporary Quality Management that is timely, informed and accessible. The online resources are invaluable for educators and students alike, bringing a blended learning dimension to each chapter through multi-media videos, case studies and interactive teaching materials.’
Dr Claire Moxham, Senior Lecturer in Operations Management, Management School, University of Liverpool
Managing Quality
An Essential Guide and Resource Gateway
Sixth Edition
EDITED BY
Barrie G. Dale, David Bamford and Ton van der Wiele
This edition first published 2016
© 2016 John Wiley & Sons Ltd
Previously published 2007, 2003, 1999
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Library of Congress Cataloging-in-Publication Data
Names: Dale, B. G., editor. | Bamford, David R., editor. | Wiele, Anthony van der, editor.
Title: Managing quality : an essential guide and resource gateway / [edited by]
Barrie G. Dale, David Bamford, and Ton van der Wiele.
Description: Sixth edition. | Chichester, West Sussex, United Kingdom :
John Wiley & Sons, Inc., 2016. | Includes bibliographical references and index.
Identifiers: LCCN 2016009718 (print) | LCCN 2016021901 (ebook) |
ISBN 9781119130925 (paperback) | ISBN 9781119130918 (pdf) | ISBN 9781119130932
(epub)
Subjects: LCSH: Engineering—Management. | Total quality management. | BISAC:
BUSINESS & ECONOMICS / Management. | BUSINESS & ECONOMICS / General.
Classification: LCC TA190 .M38 2016 (print) | LCC TA190 (ebook) | DDC
658.5/62—dc23
LC record available at https://lccn.loc.gov/2016009718
A catalogue record for this book is available from the British Library.
ISBN 978-1-119-13092-5 (paperback) ISBN 978-1-119-13091-8 (ebk)
ISBN 978-1-119-13093-2 (ebk) ISBN 978-1-119-30273-5 (obk)
Cover design: Wiley
Cover image: © MSSA/Shutterstock
Contents
List of Boxes
Acknowledgements
Preface
About the Authors
The Editors
Contributors
Part One The Development and Introduction of Total Quality Management (TQM)
Chapter 1 TQM: An Overview and the Role of Management
Introduction
What is Quality?
Why is Quality Important?
The Evolution of Quality Management
The Key Elements of TQM
The Need for Senior Managers to Get Involved in TQM
What Senior Managers Need to Know about TQM
What Senior Managers Need to Do about TQM
Summary
References
Chapter 2 The Received Wisdom on TQM
Introduction
Crosby (1926–2001)
Deming (1900–1993)
Feigenbaum (1922–2014)
Juran (1904–2008)
Are the Approaches of these Gurus Different?
Imai (b. 1930)
Ishikawa (1915–1989)
Shingo (1909–1990)
Taguchi (1924–2012)
Japanese-Style Total Quality
Summary
References
Chapter 3 The Introduction and a Framework for TQM
Introduction
Change and Continuous Improvement
Forces for Change
How Do Companies Get Started?
Approaches to TQM
A Framework for the Introduction of TQM
Organizing
Systems and Techniques
Measurement and Feedback
Changing the Culture
Use of the Framework
Outcomes
Summary
Notes
References
Part Two The Business Context of TQM
Chapter 4 Poli Deployment
Introduction
Definitions: Poli Deployment
What is Poli Deployment?
What Policy Deployment is Not
The Policy Deployment Process
A Check-Reflect-Improve-Scrutinize-Pass (CRISP) Approach to Poli Deployment
Summary
References
Chapter 5 Quality Costing
Introduction
Definition and Categorization of Quality Costs
Collecting Quality Costs
Some Cost Aspects in Business
Reporting Quality Costs
Uses of Quality Costs
Summary
References
Chapter 6 Managing Service Quality
Introduction
The Service Environment
Defining Service Quality
The Role of Personnel in Service Delivery
Service Delivery
Summary
References
Chapter 7 Supplier Development
Introduction
Long-Term Issues of Partnership
Barriers to Developing Partnerships
Conditions of Partnership
The Issues to be Considered in Partnership
The Process of Partnership
Potential Difficulties of Operating Partnerships
Summary
References
Part Three Quality Management Systems, Tools and Techniques
Chapter 8 Quality Management Systems and the ISO 9000 series
Introduction
What is Quality Assurance?
What is a Quality Management System?
The Development of Quality Management System Standards
The ISO 9000 Series of Standards: An Overview
Implementation Guidelines for ISO 9001
Quality Management System Assessment and Registration
ISO 9000 Series Registration: A Model for Small Companies
Benefits and Limitations of the ISO 9000 Series of Standards
Summary
References
Chapter 9 Quality Management Tools
Introduction
Selecting Tools and Techniques
Difficulties and Issues Relating to the Use of Tools and Techniques
Problem-Solving Methodology
Checklists
Flowcharts
Checksheets
Tally Charts and Histograms
Graphs
Pareto Analysis
Cause-and-Effect Diagrams
Scatter Diagrams and Regression Analysis
The Seven Management Tools
Summary
References
Chapter 10 Quality Management Techniques
Introduction
Quality Function Deployment
Design of Experiments
Failure Mode and Effects Analysis
Statistical Process Control
Benchmarking
Business Process Re-engineering and Value Stream Mapping
Six Sigma
References
Part Four TQM through Continuous Improvement
Chapter 11 Teams and Teamwork
Introduction
The Role of Teams in Continuous Improvement
Types of Teams
Evaluation of Teams
Team Competition
Guidelines for Developing Effective Teams
Summary
References
Chapter 12 Self-Assessment, Models and Quality Awards
Introduction
Quality, TQM, Strategic Process Improvement and Excellence
Award Models
The Self-Assessment Process
Success Factors for Self-Assessment
Difficulties with Self-Assessment
Summary
References
Chapter 13 Managing Quality: New Challenges
Introduction
Developments
‘Old’ Quality Management
‘New’ Quality Management
TQM and Strategic Process Improvement in the BRIC Economies
Summary
References
Chapter 14 Managing Quality: The Future
Introduction
The Importance of Quality
Quality Management: A Continuous Process
Measuring Progress towards Quality Management
Quality Management Issues which Need to be Considered in the Future
Summary
References
Index
EULA
List of Tables
Chapter 3
Table 3.1
Chapter 4
Table 4.1
Chapter 6
Table 6.1
Chapter 9
Table 9.1
Table 9.2
Chapter 10
Table 10.1
Chapter 11
Table 11.1
Chapter 12
Table 12.1
Table 12.2
List of Illustrations
Chapter f_05
Figure 0.1
A conceptual model of management quality
Chapter 1
Figure 1.1
The inside/outside specification dilemma
Figure 1.2
Design tolerance and process variation relationship
Figure 1.3
Quality improvement: a continuous process
Figure 1.4
The four levels in the evolution of TQM
Figure 1.5
A detection-based quality system
Figure 1.6
A prevention-based quality system
Figure 1.7
The quality improvement process
Chapter 3
Figure 3.1
Market-led paradigm of TQI
Figure 3.2
The TQM framework
Figure 3.3
TQM training matrix
Figure 3.4
Culture change grid
Figure 3.5
TQM grid
Figure 3.6
TQM framework: feature assessment
Figure 3.7
TQM framework: organizing section
Chapter 4
Figure 4.1
An example of the policy management system
Figure 4.2
NSK–RHP top-level policy deployment annual plan
Figure 4.3
NSK–RHP environmental policy
Figure 4.4
The plan-do-check-act cycle
Figure 4.5
Key points of the visual display of policy deployment for a section
Figure 4.6
The policy deployment wheel
Figure 4.7
A CRISP approach to policy deployment
Chapter 5
Figure 5.1
Increasing quality awareness and improvement activities
Chapter 8
Figure 8.1
Quality system development
Figure 8.2
An active quality management system regime
Figure 8.3
Quality improvement and the ISO 9000 series
Chapter 9
Figure 9.1
The use of quality management tools and techniques
Figure 9.2
Incremental improvement through the use of quality management tools and techniques
Figure 9.3
The effects of influences on continuous improvement
Figure 9.4
Flowchart: non-conformance identification and preventative action process
Figure 9.6
Tally chart: effluent analysis – pH
Figure 9.7
Histogram: effluent analysis – pH
Figure 9.8
Line graph: right-first-time production
Figure 9.9
Bar chart: right-first-time production
Figure 9.10
Pareto analysis: reasons for returned goods
Figure 9.11
Cause-and-effect analysis: purchasing department non-value-added work analysis
Figure 9.12
Scatter plot: effluent analysis: solids/chemical oxygen demand
Chapter 10
Figure 10.1
The house of quality
Figure 10.2
Gathering the voice of the customer and interpreting it into customer needs
Figure 10.3
Potential failure mode and effects analysis (process FMEA)
Figure 10.4
Sample SPC chart
Figure 10.5
SPC Chart after limit change
Figure 10.6
The United Utilities benchmarking process
Figure 10.7
VSM current state map
Figure 10.8
VSM future state map
Chapter 12
Figure 12.1
The EFQM excellence model
Guide
Cover
Table of Contents
Preface
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List of Boxes
Boxes
2.1 Crosby's 14-Step quality improvement programme
2.2 Deming's 14 points for management
2.3 Feigenbaum's 10 benchmarks for total quality success
2.4 The Juran method
11.1 Team mentors
11.2 Annual team competition at RHP Bearings
12.1 Difficulties experienced with the self-assessment process
Acknowledgements
In our role as editors we have attempted to ensure that each topic is adequately covered in breadth and depth and is presented simply and clearly. Subject to these constraints we have tried not to interfere with our contributors' styles because we believe an author's style is an integral part of getting his or her message across to the reader.
The brief given to the contributors was to keep the level of technical detail to a minimum and to write in a focused, non-specialist language. This is much easier in some subjects than others, but we believe that this objective has been achieved, and hope the reader will find that the structure of the book is logical and the content is clear and free from confusing jargon.
Finally, we wish to thank all the contributors for making this book possible. We have learned much from them. We hope the readers will too.
Preface
The subject of Quality Management is vast. There are many issues and interfaces to consider, and there are a considerable number of tools, techniques and systems which an organization can use to assist it in the introduction and development of the concept. The text covers the main aspects and functions of Quality Management, from identifying customer needs and requirements through to quality planning, supply and production/operations. This sixth edition of Managing Quality builds on the success of the previous publications. The book covers the main concepts and issues currently being debated and considered by business leaders throughout the world. It is a very comprehensive text and has developed a track record and following amongst students, academics and practitioners. Its purpose is to provide the reader with an appreciation of the concepts and principles of Quality Management. It has proved to be a wide-ranging source of reference for the many tools, techniques and systems which are associated with the concept.
In the book the term ‘total quality management’ (TQM) is used to describe the process of transformation by which all parts of the organization have a focus on quality with the ultimate objective of customer satisfaction and delight. Some people argue that the term TQM has fallen out of use, with directors and managers regarding it as a fallen star and a jaded concept. They moved on to what are perceived as newer concepts (e.g. Six Sigma, lean mapping, etc.). There is little doubt that in many companies and industries the issue of improvement in the quality of products and services remains urgent. Therefore in this book we are sticking to the term TQM and, when appropriate, coupling it to ‘Strategic Process Improvement’.
The feedback on previous editions indicates that the book has been useful to industrialists, management consultants, academics, and undergraduate and postgraduate students from a variety of disciplines; TQM is not the special province of one group of people or one discipline. People studying for professional examinations that involve considerations of quality have also benefited from the use of the book. We hope readers will read the whole book to gain an understanding of the breadth and depth of Quality Management. However, most of the chapters do stand alone and readers may choose to dip into the book in order to learn more about a particular subject.
In the spirit of continuous improvement, and a move into providing electronic support materials, a major revision of the book has been undertaken this time around. All chapters were fully reviewed and, to provide greater focus for the reader, some were extensively revised/combined, and some removed. In addition, appropriate support materials are now provided online (e.g. Instructor Resources, teaching slides, additional cases, key questions for each chapter, etc.). Please visit the book page on www.wiley.com for additional information/access.
The text is still arranged around four main areas; however, these have been refined and are presented as a conceptual model within Figure 0.1.
Figure 0.1 A conceptual model of management quality
These interlinking parts serve to communicate the applied breadth and depth of aspects of relevant Quality Management application of tools, techniques and systems. Specifically the parts cover: Part One: Development Quality – overview and management, received wisdom, framework for TQM; Part Two: Business Context – policy deployment, quality costing, managing service quality, supplier development; Part Three: Quality systems, tools and techniques – quality systems, quality management tools, quality management techniques; Part Four: Sustaining Quality – teams, self-assessment and awards, New challenges, The future. We present the conceptual model of this.
The academic contributors have also outlined some of their recent research findings. We do hope that readers will find some new ideas and angles on subjects which have been brought to their attention. It is to be hoped that, through study of the text, readers will be encouraged to take up the challenge of strengthening their commitment and dedication to TQM and continuous improvement.
Barrie G. Dale
Professor Emeritus
Alliance Manchester Business School
David Bamford
Professor of Operations Management
The Business School, University of Huddersfield
Ton van der Wiele
Associate Professor Quality Management and Performance Improvement
Rotterdam School of Management, Erasmus University
About the Authors
The Editors
Barrie G. Dale is Professor Emeritus at Alliance Manchester Business School. Founder of the International Journal of Quality and Reliability Management, he was its co-editor for over 25 years. He has authored several other books including, The Road to Quality (1993), Quality Improvement through Standards (2nd edition, 1994), Managing Quality and Human Resources (2nd edition, 1997), Working in Partnership (1998), Managing Business Improvement and Quality (1998), Total Quality Management Blueprint (1999) and Quality Costing (3rd edition, 1999).
David Bamford is Professor of Operations Management at the Business School, University of Huddersfield. He is an experienced industrialist/academic with numerous publications to his name. Knowledge transfer projects, across many sectors, have been central to his academic career and his research interests are focused towards operations improvement strategies in the application of Operations Management theories, strategic organizational change, leadership and quality management, and sports operations management.
Ton van der Wiele was Associate Professor of Quality Management and Performance Improvement at RSM Erasmus University, Rotterdam. He has published many papers in various international journals on Quality Management, Performance Improvement, Management Consultancy and E-business. Quality-editor of the International Journal of Quality and Reliability Management, van der Wiele has worked in the Quality field for more than twenty-five years.
Contributors
Chapter Authors
Jim Bamford is Senior Lecturer in Operations Management at the Business School, University of Huddersfield, UK.
Bernard Burnes is Professor of Organizational Change at the Stirling Management School, University of Stirling, UK.
Benjamin Dehe is Senior Lecturer in Operations Management at the Business School, University of Huddersfield, UK.
Roy Lee was Squadron Leader, Support Management Group, Royal Air Force, Wyton, UK.
Barbara Lewis is Professor Emeritus of Marketing, Alliance Manchester Business School, University of Manchester, UK.
Marina Papalexi is the Research Assistant in Operations Management at the Business School, University of Huddersfield, UK.
Iain Reid is Senior Lecturer in Operations Management at the Business School, University of Huddersfield, UK.
Chapter Contributors
John Aldridge is Quality Manager at Survitec Survival Products, Shewsbury, UK.
Ian Ferguson is Managing Director of Ferguson Associates, Birmingham, UK.
Rory Love was Quality Engineer, Alexanders Ltd, Falkirk, UK.
John Macdonald was Managing Director of John Macdonald Associates, Surrey, UK.
Peter Shaw was TQM Project Officer, Manchester School of Management, UMIST, UK.
Jos van Iwaarden is a Senior Consultant at A.T. Kearney, Utrecht Area, The Netherlands.
Roger Williams is Professor Emeritus of Business and Management, Erasmus University, Rotterdam School of Management, Rotterdam, The Netherlands.
Part OneThe Development and Introduction of Total Quality Management (TQM)
The purpose of Part One is to introduce the reader to some of the fundamentals of TQM. It deals with how to introduce TQM into an organization and its subsequent development. Sustaining TQM is far from easy, and the chapters examine issues to which attention needs to be given. It contains the following three chapters:
Chapter 1 – TQM: An Overview and the Role of Management
Chapter 2 – The Received Wisdom on TQM
Chapter 3 – The Introduction and a Framework for TQM
Chapter 1 examines the evolution of quality management (‘coordinated activities to direct and control an organization with regard to quality’) from inspection (‘conformity evaluation by observation and adjustment accompanied as appropriate by measurement, testing or gauging’) to quality control (‘part of quality management focused on fulfilling quality requirements’) to quality assurance (‘part of quality management focused on providing confidence that quality requirements will be fulfilled’ (ISO 9001: (2015)) and finally to Total Quality Management (TQM). This chapter outlines the main reasons why senior management should become personally involved in TQM. It examines what they need to know about TQM and what they need to do in terms of actions. The role of middle and first-line management is also key to putting in place the principles of TQM, and the activities that they need to get involved with are discussed.
Chapter 2 deals with the received wisdom on TQM. Quality management experts such as Crosby, Deming, Feigenbaum and Juran have had a considerable influence on the development of TQM throughout the world and their views and teachings are summarized in this chapter. The Japanese have had a profound influence on the understanding and development of TQM. Therefore, no book on TQM would be complete without some discussion of the way in which Japanese companies develop and manage the concept. The views of the four influential Japanese experts (Imai, Ishikawa, Shingo and Taguchi) are explored and summarized.
Chapter 3 deals with the introduction of TQM. It sets out by examining change and continuous improvement and deals with how the improvement process is triggered, which is usually in combination: the Chief Executive, competition, demanding customers and fresh-start situations. Following this, the chapter goes on to examine a range of approaches that can be followed in the introduction of TQM. A framework to assist with the introduction of TQM is presented. The structure of the framework consists of four main sections: organizing, using systems and techniques, measurement and feedback, and changing the culture. The framework has been used by a number of organizations in both the public and private sectors and in manufacturing and service industries to introduce the basic elements and practices of TQM and Strategic Process Improvement.
Chapter OneTQM: An Overview and the Role of Management
B. G. Dale, M. Papalexi, D. Bamford A. van der Wiele
Introduction
In today's global competitive marketplace the demands of customers are gradually increasing as they require improved quality of services and products. Also, in some markets there is an increasing supply of competitively priced products and services from low labour cost countries such as those in the Far East, the former Eastern bloc, China, Vietnam and India. TQM and Strategic Process Improvement does not appear to have reached maturity in many BRIC (Brazil, Russia, India, China) economies (Moosa and Cardak 2006). This presents an opportunity, as well as a challenge, for TQM practitioners. Continuous improvement in total business activities with a focus on the customer throughout the entire organization and an emphasis on flexibility and quality is one of the main means by which companies face up to these competitive threats. For this reason, many organizations are looking for quality management and strategic process improvement in order to survive in increasingly aggressive markets and maintain a competitive edge over their rivals (Bamford et al. 2015). As a result of the efforts made by organizations to respond to these marketplace demands the quality of products, services and processes has increased considerably during the last two decades. Oakland (2014) states that:
Total Quality has always been a key strategic factor for business success but it is now more than ever required to compete successfully in the global markets of the twenty-first century.
Having said this, it should be pointed out that in many markets today, quality is narrowly defined as the reliability of products and services. It is not considered as a competitive weapon any more but as a given requirement; and is considered an entry-level characteristic in the marketplace.
These days, many organizations have had experiences with working on the transformation towards total quality management (TQM) and/or strategic process improvement and this is coupled with its spread, from the manufacturing to the service sector and on to public services. In addition, new domains present themselves. For example, according to Bamford et al. (2016) achieving and maintaining a quality culture is complex across all industrial sectors but amplified in off-field sporting operations due to particular industry characteristics (Smith and Stewart 2010). For example, operating rules and regulations are often imposed on sporting venues by external parties, the outcome of a sporting tournament is uncertain, fans are both producers and consumers of the sporting experience and sporting rivals must collaborate to organize competitive events (Chadwick 2009, 2011; Stewart and Smith 1999). It is these industry characteristics that provide a backdrop of environmental uncertainty for off-field sporting operations and make quality management in this context a particularly interesting focus for further examination (Bamford et al. ).
But what is TQM? In simple terms, it is the mutual co-operation of everyone in an organization and associated business processes to produce value-for-money products and services which meet and, hopefully, exceed the needs and expectations of customers. TQM and strategic process improvement are ever-evolving practices of doing business in a bid to develop methods and processes that cannot be imitated by competitors. This chapter provides an overview of TQM and introduces the reader to the subject. It opens by examining the different interpretations that are placed on the term ‘quality’. It then examines why quality has grown in importance during the last decades. The evolution of quality management (‘Co-ordinated activities to direct and control an organization with regard to quality’: ISO 9001 2015) is described through the stages of inspection, quality control, quality assurance and onwards to TQM. In presenting the details of this evolution, the drawbacks of a detection-based approach to quality are compared to the recommended approach of prevention. Having described these stages the chapter examines the key elements of TQM – commitment and leadership of the chief executive officer (CEO), planning and organization, using tools and techniques, education and training, employee involvement, teamwork, measurement and feedback, and cultural change.
The chapter concludes by presenting a summary of the points which organizations need to keep in mind when developing and advancing TQM. This is done under the broad groupings of organizing, systems and techniques, measurement and feedback, and changing the culture.
What is Quality?
‘Quality’ has a variety of definitions, interpretations and uses. Today, in a variety of situations, it is perhaps an over-used word. For example, when a case is being made for extra funding and resources, to prevent a reduction in funding, or to keep a unit in operation and in trying to emphasize excellence, just count the number of times the word ‘quality’ is used in the argument or presentation.
Quality as a concept is quite difficult for many people to understand, and much confusion and myth surround it.
In a linguistic sense, quality originates from the Latin word ‘qualis’ which means ‘such as the thing really is’. There is an international definition of quality: ‘the degree to which a set of inherent characteristics fulfils requirements’ (ISO 9001 2015). However, in today's business world there is no single accepted definition of quality. Irrespective of the context in which it is used, it is usually meant to distinguish one organization, event, product, service, process, person, result, action, or communication from another.
Preventing confusion and ensuring that everyone in an organization is focused on the same objectives, there should be an agreed definition of quality. For example, BetzDearborn Inc. defines quality as: ‘That which gives complete customer satisfaction’, and Rank Xerox (UK) as ‘Providing our customers, internal and external, with products and services that fully satisfy their negotiated requirements’. North West Water Ltd use the term ‘business quality’ and define this as:
Understanding and then satisfying customer requirements in order to improve our business results.
Continuously improving our behaviour and attitudes as well as our processes, products and services.
Ensuring that a customer focus is visible in all that we do.
There are a number of ways or senses in which quality may be defined, some being broader than others but they all can be boiled down to either meeting requirements and specifications or satisfying and delighting the customer.
Qualitative
When the word quality is used in a qualitative way, it is usually in a non-technical situation. ISO 9001(2015) says that ‘the term “quality” can be used with adjectives such as poor, good or excellent'. Some examples related to this are:
In advertising slogans to assist in building an image and persuade buyers that its production and services are the best: Esso – Quality at Work; Hayfield Textiles – Committed to Quality; Kenco – Superior Quality; Philips Whirlpool – Brings Quality to Life; Thompson Tour Operations – Thompson Quality Makes the World of Difference.
By television and radio commentators (a quality player, a quality goal, a quality try).
By directors and managers (quality performance, quality of communications).
By people, in general (quality product, top quality, high quality, original quality, quality time, quality of communications, quality person, loss of quality, German quality, 100 per cent quality).
It is frequently found that in such cases of ‘quality speak’ the context in which the word quality is used is highly subjective and in its strictest sense is being misused. For example, there is more than one high street shop which trades under the name of ‘Quality Seconds’, and some even advertise under the banner of ‘Top Quality Seconds’. There is even a company with the advertising slogan ‘Quality Part-Worn Tyres’ on the side of its vans.
Quantitative
The traditional quantitative term which is still used in some situations is acceptable quality level (AQL). This is defined in ISO/NWIP 3951-2 (2010) as: ‘the quality level that is the worst tolerable process fraction nonconforming when a continuing series of lots is submitted for acceptance sampling’. This is when quality is paradoxically defined in terms of non-conforming parts per hundred (i.e. some defined degree of imperfection).
An AQL is often imposed by a customer on its supplier in relation to a particular contract. In this type of situation the customer will inspect the incoming batch according to the appropriate sampling scheme. If more than the allowed number of defects is found in the sample the entire batch is returned to the supplier or the supplier can, at the request of the customer, sort out the conforming from non-conforming product on the customer's site. The employment of an AQL is also used by some companies under the mistaken belief that trying to eliminate all defects is too costly.
The setting of an AQL by a company can work against a ‘right first time’ mentality in its people as it appears to condone the production and delivery of nonconforming parts or services, suggesting that errors are acceptable to the organization. It is tantamount to planning for failure. For example, take a final product which is made up of 3,000 parts: if the standard set is a 1 per cent AQL, this would mean that the product is planned to contain 30 non-conforming parts. In reality there are likely to be many more because of the vagaries of the sampling used in the plan or scheme, whereby acceptance or rejection of the batch of product is decided.
Another example of a quantitative measure is to measure processes using sigmas (a sigma is a statistical indication of variation) and defects per million opportunities (DPMO). A sigma is essentially a measuring device that is an indication of how good a product or service is. The higher the sigma value the lower the number of defects. For example, 3 sigma equals 66,807 DPMO, while 6 sigma equals 3.4 DPMO (these values assume a normal distribution with a process shift of 1.5 sigma). The sigma level is a means of calibrating performance in relation to customer needs. Six Sigma (a quality improvement framework) has used sigmas to improve productivity and quality and reducing costs. Six Sigma is the pursuit of perfection and represents a complete way of tackling process improvement from a quantitative approach, involving many of the concepts, systems, tools and techniques described in this book. The Six Sigma concept is currently very popular as a business improvement approach. The key features include a significant training commitment in statistics and statistical tools; problem-solving methodology and framework; project management; a team-based project environment; people who can successfully carry out improvement projects (these are known as black belts and green belts, based on the martial arts hierarchy); leaders (master black belts); and project champions.
Uniformity of the product or service characteristics around a nominal or target value
Figure 1.1 presents the inside/outside specification dilemma; only the product or service dimensions that are within the design specification or tolerance limits can be considered acceptable. The difference between what is considered to be just inside or just outside the specification is marginal. It may also be questioned whether this step change between pass and fail has any scientific basis and validity.
Figure 1.1 The inside/outside specification dilemma
Designers often establish specification limits without sufficient knowledge of the process by which the product and/or service is to be produced/delivered and its capability. It is often the case that designers cannot agree amongst themselves about the tolerances/specification to be allocated, and they tend to establish a tighter tolerance than is justified to provide safeguards and protect themselves. In many situations there is inadequate communication on this matter between the design and operation functions. Fortunately, this is changing with the increasing use of simultaneous or concurrent engineering.
The main issue of working to the specification limits is that it frequently leads to tolerance stack-up; for example, in a manufacturing situation parts may not fit together correctly at the assembly stage. This is especially the case when one part that is just inside the lower specification limit is assembled to one that is just inside the upper specification. If the process is controlled such that a part is produced around the nominal or a target dimension with limited variation (see Figure 1.2), this problem does not occur and the correctness of fit and smooth operation of the final assembly and/or end product are enhanced.
Figure 1.2 Design tolerance and process variation relationship
The idea of reducing the variation of part characteristics and process parameters so that they are centred around a target value can be attributed to Taguchi (1986). He writes that the quality of a product is the (minimum) loss imparted by the product to the society from the time the product is shipped. Among the losses he includes time and money spent by customers; consumers' dissatisfaction; warranty costs; repair costs; wasted natural resources; loss of reputation; and, ultimately, loss of market share.
The relationship of design specification and variation of the process can be quantified by a capability index, for example, Cp, which is a process potential capability index:
Conformance to agreed and fully understood requirements
This definition is attributed to Crosby (1979). He believed that quality is not comparative and that there is no such thing as high quality or low quality, or quality in terms of goodness, feel, excellence and luxury. In other words, quality is an attribute (a characteristic which by comparison to a standard or reference point, is judged to be correct or incorrect) not a variable (a characteristic which is measurable). Crosby made the point that the requirements are all the actions required to produce a product and/or deliver a service that meets the customer's expectations, and that it is management's responsibility to ensure that adequate requirements are created and specified within the organization.
Fitness for purpose/use
Juran (1988) was the first to use this definition of quality. He classifies ‘fitness for purpose/use’ into the categories of: quality of design, quality of conformance, abilities and field service. Focusing on fitness for use helps to prevent the over-specification of products and services. Overspecification can add greatly to costs and tends to militate against a right-first-time performance.
Satisfying customer expectations and understanding their needs and future requirements
Satisfying customers and creating customer enthusiasm through understanding their needs and future requirements is the crux of TQM and strategic process improvement. TQM is all about customer orientation and many company missions are based entirely on satisfying customer perceptions. Customer requirements for quality are increasing and becoming stricter. There are increasing levels of intolerance of poor quality goods and services and low levels of customer service and care. In most situations customers have a choice: they are not willing to jeopardize their own business interest out of loyalty to a supplier who does not perform as they expected; they will simply go to a competitor. In the public sector the customer may not have this choice; however, they can go to litigation, write letters of complaint, cause disruption, and use elections to vote officials out of office.
Superior-performing organizations go beyond satisfying their customers: they emphasize the need to delight them by giving them more than what is required in the contract. These organizations create a total experience for their customers, which is unique in relation to the offerings of competitors (which is called ‘the experience economy’, see Pine and Gilmore 2011). The wisdom of this can be clearly understood considering the situation where a supplier has given more than the customer expected (for example, an extra glass of wine on an aircraft; a sales assistant going out of their way to be courteous and helpful and providing very detailed information) and the warm feelings generated by this type of action.
A customer-focused organization also puts considerable effort into anticipating the future expectations of its customers (i.e. surprising quality), by working with them in long-term relationships, helping them to define their future needs and expectations. They aim to build quality into the product, service, system and/or process as upstream as is practicable. Excitement and loyalty are the words used to describe this situation.
A mechanism for facilitating a continuous two-way flow of information between themselves and their customers is considered necessary. There is also a variety of means available to companies for them to assess issues such as:
How well the brand is respected
How well they are meeting customer expectations
What customers' chief causes of concern are
What the main complaints are
What suggestions for improvements customers might have
How well they act on what the customer says
How they might add value to the product and/or service
What the best means of differentiating themselves in the marketplace are.
Organizations tend to focus on increasing the level of contact with the customer. These ‘moments of truth’ (Carlzon 1987; also see Fatma 2014) occur far more frequently in commerce, public organizations, the Civil Service and service-type situations than in manufacturing organizations. They use the following practices to increase the level of customer contact:
Customer workshops
Panels and clinics
Using ‘test’ consumers and mystery shoppers
Focus groups
Customer interviews
Market research
Dealer information
Questionnaire surveys
Product reports
Trailing the service and/or product
Trade shows.
Customer complaints are one indication of customer satisfaction, and many organizations have a number of metrics measuring such complaints. BS ISO 10002 (2014) provides guidance on how to develop an effective complaints management system in order to analyse and use complaints effectively. The rationale is that managing complaints in a positive manner can enhance customer perceptions of an organization, increase lifetime sales and values and provide valuable market intelligence.
Why is Quality Important?
To answer this question, just consider the unsatisfactory examples of product and/or quality service that you, the reader, have experienced, the bad feelings it gave, the resulting actions taken and the people you told about the experience and the outcome. Sargeant et al. (2012), based on a range of studies carried out by TARP (Technical Assistance Research Programs), outline two arguments that are effective in selling quality to senior management.
First, quality and service improvements can be directly and logically linked to enhanced revenue within one's own company; and secondly, higher quality allows companies to obtain higher margins.
The following extracts some quantitative evidence in relation to these arguments:
‘Problems decrease customer loyalty by 15 per cent to 30 per cent’
‘50 per cent of individual consumers and 25 per cent of business customers who have problems never complain to anyone at the company’
‘If the call centre can resolve a customer's problem using quality service, thus changing a dissatisfied customer to a satisfied one, the company usually gets an increase in loyalty of 50 percentage points’
‘One potential customer will be lost for every 50 who hear someone complain about a product or service’
‘Market leaders can charge between 5 per cent and 10 per cent premiums for outstanding quality and service’.
In the 30-plus pages of ‘Discoveries 2013’, the American Society for Quality (ASQ) presented a report on the current use of core quality practices. The report included aspects of quality governance and management, outcomes and measures, competencies/training and culture. A selection of results, as highlighted by Hill (2014), is outlined below:
81% of all respondents indicate that quality goals exist for business/functional units
89% of all respondents indicate that standardized quality management processes are in place
86% communicate with customers to address their needs and complaints
68% share information on quality and performance with customers
81% of respondents seek to understand product performance through their customers' eyes.
It is difficult to determine the value of these results without having understood the customers' perception on quality.
Quality is not negotiable
An order, contract or customer which is lost on the grounds of non-conforming product and/or service quality is much harder to regain than one lost on price or delivery terms. In a number of cases the customer could be lost for ever; in simple terms the organization has been outsold by the competition.
If you have any doubt about the truth of this statement just consider the number of organizations that have gone out of business or lost a significant share of a market, and consider the reported reasons for them getting into that position. Quality is one of the factors that is not negotiable and in today's business world the penalties for unsatisfactory product quality and poor service are likely to be punitive.
Quality is all-pervasive
There are a number of single-focus business initiatives that an organization may deploy to increase profit. TQM and strategic process improvement encompass not only product, service and process improvements but also those relating to costs and productivity and to people involvement and development. A number of surveys show that customers are willing to pay more for improved quality of products and services. For example, in 2015, according to a survey by Hot Telecom, 56 per cent of respondents in Asia Pacific would pay extra for better coverage and faster downloads, 83 per cent of them seeking tailored offers based on their usage patterns (Waring 2015). In a similar vein, a study conducted by American Express on Australian consumers found that 73% of respondents were willing to pay more for good products and services (Philp 2011).
Managers sometimes say that they do not have the time and resources to ensure that product and/or service quality is done right the first time. They go on to argue that if their people concentrate on planning for quality then they will be losing valuable operational time, and as a consequence output will be lost and costs will rise. Despite this argument, management and their staff will make the time to rework the product and service a second or even a third time, and spend considerable time and organizational resources on corrective action and placating customers who have been affected by the non-conformances.
Remember ‘Murphy's Law’ – ‘There is never time to do it right but always time to do it once more.’
Quality means improved business performance
Kano et al. (1983) carried out an examination of 26 companies which won the Deming Application Prize (this is a prize awarded to companies for their effective implementation of company-wide quality control; for details see Chapter 12). Between 1961 and 1980 they found that the financial performance of these companies in terms of earning rate, productivity, growth rate, liquidity, and net worth was above the average for their industries. According to Lee and Lee (2013), 223 companies have won the Deming Application Prize as of 2011.
There are 95 award winners of the Malcolm Baldrige National Quality Award (MBNQA) from 1988 to 2011 in different industry sectors, such as manufacturing, health care, service, education and small business. This programme was established to enhance the competitiveness of US businesses based on the seven criteria: leadership; strategic planning; customer focus; measurement, analysis and knowledge management; workforce focus; operations focus; and results (NIST 2011).
Similarly, the European Foundation Quality Management (EFQM) Excellence Model, which was developed based on MBNQA, has been used by over 20,000 organizations across Europe (Lee and Lee 2013). The Canada Awards for Excellence, which was developed based on the National Quality Institute's Framework for Organizational Excellence, has been designed to support continuous quality improvement for non-profit organizations, such as government, education, and health care (Evans and Lindsay 2009).
Lee and Lee (2013) concluded that there are many organizations award winners in the manufacturing and service sectors. In particular, they found that the most commonly used quality awards in the world, based on number of quality awards given, are as follows: EFQM (42.1%); MBNQA (25.2%); the Deming Award (7.5%); and other quality awards (25.2%).
The cost of non-quality is high
Based on a variety of companies, industries and situations, the cost of quality (or to be more precise the cost of not getting it right the first time) ranges from 5 to 25 per cent of an organization's annual sales turnover in manufacturing or annual operating costs in service-type situations; see Dale and Plunkett (1999) for details. An organization should compare its profit-to-sales turnover ratio to that of its quality costs-to-sales turnover ratio in order to gain an indication of the importance of product and service quality to corporate profitability.
Chiarini (2015) examined the impact of the ISO 9001 non-conformity process on the cost of poor quality in different sectors, including chemical, pharmaceutical, mechanical, food, ceramic and steel. He found that the ISO 9001 non-conformity process has the same impact on these six different sectors, highlighting that the reduction in cost of poor quality was no more than 27.14 per cent. He suggested that other important factors could reduce the total cost of poor quality, including the adoption of improvement techniques such as: Six Sigma and TQM.
Customer is king
In today's markets, customer requirements are becoming increasingly more rigorous and their expectations of the product and/or service in terms of conformance, reliability, dependability, durability, interchangeability, performance, features, appearance, serviceability, user-friendliness, safety, and environmental friendliness, is also increasing. These days many superior-performing companies talk in terms of being ‘customer-obsessed’. At the same time, it is likely that the competition will also be improving and, in addition, new and low-cost competitors may emerge in the marketplace. Consequently there is a need for continuous improvement in all operations of a business, involving everyone in the company. The organization that claims that it has achieved TQM and strategic process improvement will be overtaken by the competition. Once the process of continuous improvement has been halted, under the mistaken belief that TQM has been achieved, it is much harder to restart and gain the initiative on the competition (see Figure 1.3). This is why TQM should always be referred to as a process and not a programme.
Figure 1.3 Quality improvement: a continuous process
Quality is a way of life
Quality is a way of organizational and everyday life. It is a way of doing business, living and conducting one's personal affairs. Quality is driven by a person's own internal mechanisms – ‘heart and soul’, ‘personal beliefs’. Belief in it can be likened to that of people who follow a religious faith. Companies like Toyota emphasize strongly the need for the commitment of all employees to managing and improving quality, which is an essential part of the famous Toyota Production System (Kull et al. 2014).
An organization committed to quality needs quality of working life of its people in terms of participation, involvement and development and quality of its systems, processes and products.
The Evolution of Quality Management
Systems for improving and managing quality have evolved rapidly in recent years. During the last two decades or so simple inspection activities have been replaced or supplemented by quality control, quality assurance has been developed and refined, and now many companies, using a process of continuous and company-wide improvement, are working towards TQM and strategic process improvement. In this progression, four fairly discrete stages can be identified: inspection, quality control, quality assurance and total quality management; it should be noted that the terms are used here to indicate levels in a hierarchical progression of quality management (Figure 1.4). British and International Standards definitions of these terms are given to provide the reader with some understanding, but the discussion and examination are not restricted by these definitions.
Figure 1.4 The four levels in the evolution of TQM
Inspection
Conformity evaluation by observation and judgement accompanied as appropriate by measurement, testing or gauging. (ISO 9000 2015).
At one time inspection was thought to be the only way of ensuring quality, the ‘degree to which a set of inherent characteristics fulfils requirements’ (ISO 9000 2015). Under a simple inspection-based system, one or more characteristics of a product, service or activity are examined, measured, tested, or assessed and compared with specified requirements to assess conformity with a specification or performance standard. In a manufacturing environment the system is applied to incoming goods and materials, manufactured components and assemblies at appropriate points in the process and before finished goods are passed into the warehouse. In service, commercial and public service-type situations the system is also applied at key points, sometimes called appraisal points, in the production and delivery processes. The inspection activity is, in the main, carried out by dedicated staff employed specifically for the purpose, or by self-inspection of those responsible for a process. Materials, components, paperwork, forms, products and goods which do not conform to specification may be scrapped, reworked, modified or passed on concession. In some cases inspection is used to grade the finished product as, for example, in the production of cultured pearls. The system is an after-the-event screening process with no prevention content other than, perhaps, identification of suppliers, operations, or workers, who are producing non-conforming products/services. There is an emphasis on reactive quick-fix corrective actions and the thinking is department-based. Simple inspection-based systems are usually wholly in-house and do not directly involve suppliers or customers in any integrated way.
Quality control
Part of quality management focused on fulfilling quality requirements. (ISO 9000 2015)
Under a system of quality control one might expect, for example, to find in place detailed product and performance specifications, a paperwork and procedures control system, raw material and intermediate-stage product-testing and reporting activities, logging of elementary process performance data, and feedback of process information to appropriate personnel and suppliers. With quality control there will have been some development from the basic inspection activity in terms of sophistication of methods and systems, self-inspection by approved operators, use of information and the tools and techniques which are employed. While the main mechanism for preventing off-specification products and services from being delivered to customers is screening inspection, quality control measures lead to greater process control and a lower incidence of non-conformance.
Those organizations whose approach to the management of quality is based on inspection and quality control are operating in a detection-type mode (i.e. finding and fixing mistakes).
What is detection?
In a detection or ‘firefighting’ environment, the emphasis is on the product, procedures and/or service deliverables and the downstream producing and delivery processes; it is about getting rid of the bad things after they have taken place. Considerable effort is expended on after-the-event inspecting, troubleshooting, checking, and testing of the product and/or service and providing reactive ‘quick fixes’ in a bid to ensure that only conforming products and services are delivered to the customer. In this approach, there is a lack of creative and systematic work activity, with planning and improvements being neglected and defects being identified late in the process, with all the financial implications of this in terms of the working capital employed. Detection will not improve quality but only highlight when it is not present, and sometimes it does not even manage to do this. Problems in the process are not removed but contained, and are likely to come back. It also leads to the belief that non-conformances are due to the product/service not being inspected enough and also that operators, not the system, are the sole cause of the problem.
With a detection approach to quality, non-conforming ‘products’ (products are considered in their widest sense) are culled, sorted and graded, and decisions made on concessions, rework, reblending, repair, downgrading, scrap, and disposal. It is not unusual to find products going through this cycle more than once. While a detection-type system may prevent non-conforming product, services and paperwork from being delivered to the customer (internal or external), it does not prevent them being made. Indeed, it is questionable whether such a system does in fact find and remove all non-conforming products and services. Physical and mental fatigue decreases the efficiency of inspection and it is commonly claimed that, at best, 100 per cent inspection is only 80 per cent effective. It is often found that with a detection approach the customer also inspects the incoming product/service; thus the customer becomes a part of the organization's quality control system.
In this type of approach a non-conforming product must be made and a service delivered before the process can be adjusted; this is inherently inefficient in that it creates waste in all its various forms: all the action is ‘after the event’ and backward-looking. The emphasis is on ‘today's events’, with little attempt to learn from the lessons of the current problem or crisis. It should not be forgotten that the scrap, rework, retesting, reblending, and so on, are extra efforts, and represent costs over and above what has been budgeted and which ultimately will result in a reduction of bottom-line profit. Figure 1.5, taken from the Ford Motor Company (1985) three-day statistical process control course notes, is a schematic illustration of a detection-type system.
Figure 1.5 A detection-based quality system
Source: Ford Motor Company (1985)
An environment in which the emphasis is on making good non-conformance rather than preventing it from arising in the first place is not ideal for engendering team spirit, co-operation and a good climate for work. The focus tends to be on switching the blame to others, people making themselves ‘fireproof ’, not being prepared to accept responsibility and ownership, and taking disciplinary action against people who make mistakes. In general, this behaviour and attitude emanate from middle management and quickly spread downwards through all levels of the organizational hierarchy.
Organizations operating in a detection manner are often preoccupied with the survival of their business and little concerned with making improvements.
Quality assurance
Finding and solving a problem after a non-conformance has been created is not an effective route towards eliminating the root cause of a problem. A lasting and continuous improvement in quality can only be achieved by directing organizational efforts towards planning and preventing problems from occurring at source. This concept leads to the third stage of quality management development, which is quality assurance:
Part of quality management focused on providing confidence that quality requirements will be fulfilled. (ISO 9000 2015)
