An Introduction to
Total Quality Management - Part 2
What is Quality?
As defined by ISO 8402 (BS 4778) “Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs”.
The Quality of a product is the Loss imparted by the product to the society from the time the product is shipped…Taguchi
Quality is conformance to agreed and fully understood requirements…..Phil Chrosby
Juran defines Quality as Fitness for purpose/use.
Quality Vocabulary:
Quality:
The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
In a contractual environment, needs are specified, where as in other environments, implied needs should be identified and defined.
In many instances, needs can change with time. This implies revision of specifications.
Needs are usually translated into features and characteristics with specified criteria. Needs may include aspects of usability, safety, availability, maintainability, economics and environment.
The term quality is not used to express a degree of excellence in a comparative sense nor is it used in a qualitative sense for technical evaluations. In these cases a qualifying objective shall be used.
- “Relative Quality” where products or services are ranked on a relative basis in the “Degree of Excellence” or “Comparative Sense”
- “Quality Level” and Quality Measure” where precise technical evaluations are carried out in a Quantitative sense.
Grade:
An indicator of category or rank related to features or characteristics that cover different sets of needs for products or services intended for the same functional use.
- Grade reflects a planned, difference in requirements or, if not planned, a recognized difference.
- A high grade article can be inadequate as far as satisfying need and vice-versa.
E.g. a luxurious hotel with poor service or a small guest house with excellent service.
Why is Quality Important?
- Quality is not negotiable.
- Quality is pervasive.
- Quality increases productivity
- Quality leads to better performance in the market place
- Quality means improved business performance.
- The cost of non-quality is high.
- Quality is a way of life.
Quality and Market Share:
Once a product is actively sold in the market place it attains some share of market i.e.; a proportion of all sales by all suppliers of that type of product. The size of the attained market share is of great economic importance. Greater market share means higher sales volume. In turn higher sales volume results in disproportionately higher return on investment due to the nature of the break even chart. For example, an increase of 20% in sales creates an increase of 50% in profit, since no increase in “constant costs” is involved. There is little risk involved in such an increase since the technology, production facilities, market, etc; are already in existence and of proved effectivemness.In contrast, to increase sales by creating a new product line involves much investment in market research, technology facilities and personnel. In this way a $ of sales gained through quality superiority is commonly much more valuable than $ of sales gained through investment in a new venture.
