Intro To QM

Introduction to Quality
Management
Lecturer In-Charge – Mrs. Naduni Madhavika (CMBE, CLSSB)
PhD(Reading), MBA (PIM-SJP), BBA (SHU-UK)
Email: naduni.m@sliit.lk
The meaning of quality
LECTURE - 1
Learning Outcomes
Student will be able to:
• Describe what is ‘quality’
• Identify the definition of ‘quality’
• Describe the relationship between the ‘quality’ and

‘reliability’
• Describe the importance of quality

EXERCISE
• Which restaurant offers a quality service ?
Why? Write it down
Quality
• Quality is dependent on customer expectations
• Different customers have different needs
• If we are to define quality in a way that is useful in its
management, then we must recognize the need to include in
the assessment of quality the true requirements of the
‘customer’ – the needs and expectations.
• Quality then is simply meeting the customer requirements;
and this has been expressed in many ways……
Quality
Quality therefore applies to:
• Products
• Services
• People
• Processes
• Environments – place / market trends / customer’s
changing needs
Therefore, quality is a DYNAMIC state!

Quality Definitions
There are many different definitions of ‘quality’. But these are
similar in nature having common aspects.
Kaoru Ishikawa’s definition:

“Quality and customer satisfaction are the same thing. Quality is
a broad concept that goes beyond just product quality to also
include the quality of people, processes and every other aspect of
the organization”
Quality Definitions
Nicholas Scheele (President Ford Motor Company):
“Quality is being flawless and having all attributes the
customer wants exactly the way they want them”
Juran:
“Quality is fitness for purpose”
Crosby:
“Quality is conformance to requirements”
Quality Definitions
Oakland:
“Quality is satisfying customer requirements”
Deming:
“Quality is meeting the needs of the consumer, present and
future.”
Design a cellular phone for
Mrs.Amelia
Quality and reliability
• The quality and reliability terms are used synonymously.
• Clearly, part of the acceptability of a product or service

will depend on its ability to function satisfactorily over a
period of time – reliability.
• It is the ability of the product or service to continue to

meet the customer requirements.
• Since it is a key factor in many purchasing decisions,

reliability ranks with quality in importance
Importance of Quality
• Quality and service improvement s can be directly and
logically linked to enhanced revenue.
• Higher quality allows companies to obtain higher margins.
• Organization’s reputation is at stake.
• A poor reputation is difficult to get rid of.
• Therefore, organizations compete on quality, reliability,
price and delivery.

• Today, quality is becoming more important than price.
Importance of Quality
• Quality expectations vary by culture – organization’s and also
geographically
• Organizations and their managers down to the last employee

must understand quality. Stakeholder expectations need to be
managed
Just to read..........................
• If 20 customers are dissatisfied with your service,19 won’t tell you. 14 of the 20
will take their business elsewhere.
• Dissatisfied customers tell an average of 10 other people about their bad
experience; 12% tell up to 20 people.
• Satisfied customers will tell an average of 5 people about their positive
experience.
• It cost five times more money to attract a new customer than to keep an existing
one.
• Up to 90% of dissatisfied customers will not buy from you again, and they won’t
tell you why.
• In many industries quality of service is one of the few variables that can
distinguish a business from its competition.
• Providing high quality service can save your business money. The same skills that
lead to increased employee productivity.
• Customers are willing to pay more to receive service.
• 95% of dissatisfied customers will become loyal customers again if their
complaints are handled well and quickly.
Quality is a serious matter.
We should all start to pay attention to it.
Quality is not achieved automatically; it needs

to be managed
END

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Introduction to Quality

• Describe what is ‘quality’

• Identify the definition of ‘quality’

• Describe the relationship between the ‘quality’ and

• Describe the importance of quality

Therefore, quality is a DYNAMIC state!

Kaoru Ishikawa’s definition:

• Clearly, part of the acceptability of a product or service

• It is the ability of the product or service to continue to

• Since it is a key factor in many purchasing decisions,

price and delivery.

• Organizations and their managers down to the last employee

We should all start to pay attention to it.

Quality is not achieved automatically; it needs

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