Chapter 2 : Foundations of

Quality Management

Lecturer: T Mokoena
Department of Quality and Operations Management
Faculty of Engineering and the Built Environment
 1) Summarise the six quality perspectives described in this
chapter.
2) Briefly summarise the history of quality before and since the
industrial revolution. What caused the most significant
changes?
3) Explain what a single quality definition is not sufficient.
4) Why is service quality especially important in today’s business
environment?
5) How does quality support the achievement of competitive
advantage?

Quality Planning and Implementation IV (QPI7X01)

 Unless quality is internalized at the personal level, it will
never become rooted in the culture of an organization.

Thus, quality must begin at a personal level (and that

means you!).

Achieve Outstanding Organizational

Culture

Quality Planning and Implementation IV (QPI7X01)

 Chapter 2 : Foundations of
Quality Management

Lecturer: T Mokoena
Department of Quality and Operations Management
Faculty of Engineering and the Built Environment
 The student should be able to:

❑ Define what is a system? Why is “system thinking”

important to quality management?
❑ Explain Juran’s Quality Trilogy
❑ Summarise the breakthrough sequence that Juran
advocated for quality improvement.
❑ Summarize the rationale behind ISO 9000 and to
outline the objectives of the standards.

Quality Planning and Implementation IV (QPI7X01)

The student should be able to:

❑ Explain the two fundamental mistakes that managers

make when attempting to improve a process. Can you
cite any examples in your personal experience in which
such mistakes were made?
❑ Justify why not all quality management systems are
effective? What can be done to make them effective?
❑ Discuss the five objectives of ISO 9000 standards

Quality Planning and Implementation IV (QPI7X01)

Foundations of Quality Management
Ritz-Carton Hotel Company

Ritz- Carton Hotel in Saudi Arabia Ritz- Carton Hotel in Abu - Dhabi

“Skilled and Empowered Work Force Operating with Pride and Joy”

Quality Planning and Implementation IV (QPI7X01)

Quality Profile – Texas Nameplate Company, Inc.

“Fear is useless; what is needed is trust.”

A continuous learning environment that enables empowered teams of

workers to take charge of processes and to deliver products and
services with a “star quality.”

Reduced its defects from 3.65 percent to about 1 percent in four years.

Customers consistently give the company an “excellent” rating ( 5 to 6

on a scale of 6) in 12 key areas.

Quality Planning and Implementation IV (QPI7X01)

Quality Profile: MEDRAD

A culture of high performance.

Systematic approaches to capture customers’ expectations and
preferences.

The Customer Complaint Process focuses on timely response and

successful resolution of customer issues

MEDRAD’s overall Net Promoter (NP) scores (a loyalty metric defined

by the level of repeat sales and referrals) have been consistently 60
percent or higher, compared to the 50 percent or higher marks for other
organizations over the same time periods.

Quality Planning and Implementation IV (QPI7X01)

Leaders in the Quality Revolution

W. Edwards Deming Joseph M. Juran

Philip B. Crosby
Quality Planning and Implementation IV (QPI7X01)
Deming

The Deming philosophy focuses on continual improvements in product

and service quality by reducing uncertainty and variability in design,
manufacturing, and service processes, driven by the leadership of
top management.

Quality Planning and Implementation IV (QPI7X01)

 Chain Reaction
Improve quality

Costs decrease

Productivity improves

Increase market share with better quality and

lower prices

Stay in business

Provide jobs and more jobs

Quality Planning and Implementation IV (QPI7X01)
Juran

Juran proposed a simple definition of quality: “fitness for use.” This

definition of quality suggests that it should be viewed from both external
and internal perspectives; that is, quality is related to

(1) product performance that results in customer satisfaction;

(2) freedom from product deficiencies, which avoids customer

dissatisfaction.”

Juran’s Quality Trilogy

• Quality planning
• Quality control
• Quality improvement

Quality Planning and Implementation IV (QPI7X01)

 Juran’s Quality Trilogy

Juran proposed a simple definition of quality: “fitness for use.” This

definition of quality suggests that it should be viewed from both external
and internal perspectives; that is, quality is related to

(1) product performance that results in customer satisfaction;

(2) freedom from product deficiencies, which avoids customer

dissatisfaction.”

Quality Planning and Implementation IV (QPI7X01)

 PRINCIPLES, PRACTICES, AND TECHNIQUES OF
QUALITY MANAGEMENT

Principles – foundation of the philosophy ( see table 2.2)

Practices – activities by which principles are implemented

(see table 2.3)

Techniques – tools and approaches to make practices effective

Quality Planning and Implementation IV (QPI7X01)

ISO 9000:2000 Quality Management Principles

1. Customer Focus
2. Leadership
3. Involvement of People
4. Process Approach
5. System Approach to Management
6. Continual Improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier Relationships

Quality Planning and Implementation IV (QPI7X01)

TQ Techniques

• Statistical methods

• Visual aids for problem solving, such as flowcharts

• Techniques specific to quality assurance activities, such as control

• charts, measurement systems analysis, reliability models, and so

on.

Quality Planning and Implementation IV (QPI7X01)

Statistical Thinking
..is a philosophy of learning and action based on these principles:

• All work occurs in a system of interconnected processes

• Variation exists in all processes

• Understanding and reducing variation are the keys to success

Quality Planning and Implementation IV (QPI7X01)

Sources of Variation in Production Processes

Measurement
Operators Methods
Materials Instruments

INPUTS PROCESS OUTPUTS

Tools Human
Machines Environment Inspection
Performance

Quality Planning and Implementation IV (QPI7X01)

Types of Variation
▪ Uncontrollable variation (common causes) are a natural part of a
process
▪ Special (assignable) causes of variation can be recognized and
controlled
Failure to understand these differences can increase variation in a
system

Quality Planning and Implementation IV (QPI7X01)

Quality Management Systems

Quality Management System (QMS) - a mechanism for managing

and continuously improving core processes to "achieve maximum
customer satisfaction at the lowest overall cost to the organization.”

Objectives:

▪ Higher product conformity and less variation.

▪ Fewer defects, waste, rework, and human error.
▪ Improved productivity, efficiency, and effectiveness.

Quality Planning and Implementation IV (QPI7X01)

International Organization for Standardization (ISO)

..focus on developing, documenting, and implementing

procedures to ensure consistency and performance in
production and service delivery processes

With the aim of continual improvement, and supported by

fundamental principles of total quality.

The standards are generic and intended to be apply to any

organization, regardless of type, size, or products provided.

Quality Planning and Implementation IV (QPI7X01)

ISO 9000:2000 Objectives
1) Achieve, maintain, and seek to continuously improve product quality
(including services) in relationship to requirements.

2) Improve the quality of operations to continually meet customers’ and

stakeholders’ stated and implied needs.

3) Provide confidence to internal management and other employees that

quality requirements are being fulfilled and that improvement is taking
place.

4) Provide confidence to customers and other stakeholders that quality

requirements are being achieved in the delivered product.

5) Provide confidence that quality system requirements are fulfilled.

Quality Planning and Implementation IV (QPI7X01)

Principal benefits of ISO 9000

It provides discipline. The ISO 9001 requirement for audits forces an

organization to review its quality system on a routine basis.

It contains the basics of a good quality system. These include

understanding customer requirements, ensuring the ability to meet
them, ensuring people resources capable of doing the work that affects
quality, ensuring physical resources and support services needed to
meet product requirements, and ensuring that problems are identified
and corrected.

It offers a marketing program. ISO certified organizations can use

their status to differentiate themselves in the eyes of customers.

Quality Planning and Implementation IV (QPI7X01)

ISO 9000:2000 Documents
1. ISO 9000:2005—Fundamentals and vocabulary: This document
provides fundamental background information and establishes
definitions of key terms used in the standards.

2. ISO 9001:2015—Requirements: This is the core document that

provides the specific requirements for a quality management
system to help organizations consistently provide products that
meet customer and other regulatory requirements.

1. ISO 9004:2009—Guidelines for Performance Improvements: This

document provides guidelines to assist organizations in improving
and sustaining their quality management systems.

Quality Planning and Implementation IV (QPI7X01)

Other ISO Standards
1. ISO 10015—Quality Management – Guidelines for training: This
document provides guidance that can help to identify and analyze
training needs, design and plan the training, provide for training,
evaluate training outcomes, and monitor and improve the training
process in order to achieve its objectives

2. ISO 22000— Food Management

1. ISO 14001- Environmental Management Systems – Requirements

with guidance for use

Quality Planning and Implementation IV (QPI7X01)

ISO 9001:2015

ISO 9001:2015 specifies requirements for a quality

management system when an organization:
a) needs to demonstrate its ability to consistently provide
products and services that meet customer and
applicable statutory and regulatory requirements, and

b) aims to enhance customer satisfaction through the

effective application of the system, including processes
for improvement of the system and the assurance of
conformity to customer and applicable statutory and
regulatory requirements.

Quality Planning and Implementation IV (QPI7X01)

Quality Planning and Implementation IV (QPI7X01)