The Need For Quality

What is quality? According to the Oxford Dictionary (1981), quality is defined as being 'the degree of excellence, relative nature or kind or character; class or grade of thing determined by this; general excellence'

Over the years a large amount of organizations have tried surviving in the market place merely on price, but they have found that this was not enough. Take the example of the UK in the 1970’s, the UK once had a thriving manufacturing industry, in which the products may have been reasonably priced but the quality was found to be somewhat lacking. During the late 1970's came the far eastern imports such as cars, televisions, radios, videos, etc. These products were not only comparatively cheaper but they also had a much higher quality standard, the result was a shift away from home grown products to foreign imports. The economic effects can be seen in the ever-increasing UK trade deficit with the rest of the world, and it's declining manufacturing base.

Wellemindefines the need for quality as stating 'Customers have become more knowledgeable and selective when making their purchasing decisions … The quality of the product or service offered is pre-requisite, an entry requirement for any company that wants to remain successful over the years'

Some of the strategic advantages of having a quality strategy are discussed by Dilworth as 'Imagine the strategic advantage a company can achieve through quality!, the company may have lower costs, but it may be able to sell its products at a higher price than its competitors …. Such a company can earn higher profits even in the face of serious price competition, it might gain market share which often leads to economies of scale and higher profit'

In an ever more competitive market, the importance of quality cannot be overstated. It must not be seen as being merely part of the production function, but instead it should be seen as concept that affects the whole of an organization.

According to the British Standards Institute (Bsi), the principles of quality management lie in 'The quality of an organizations products, services and other outputs as defined by the satisfaction of the customers who use them and efficiency of the processes by which they are supported. Quality improvement is achieved by improving the processes of an organization; it should be a continuous activity aiming forever-higher levels of process effectiveness and efficiency. Efforts should be directed towards constantly seeking opportunities for improvement.'

The best model of a quality strategy is discussed by Wellemin. This model suggests that a quality strategy should contain six stages:

  1. ANALYSIS: An overall view of an organization should take place, using both customer perspectives (send out questionnaire on service, reliability, quality of customer service) as well internal perspectives (how the level of quality is maintained from suppliers, in the build process and communication between internal processes to final dispatch to customer). Analyzing this should give a indication of the level of quality from start to finish.
  2. TARGETS: From analyzing the state of quality within an organization, the next step is to set clearly identifiable targets for the business. These targets should set for a realistic time frame. Do not expect to resolve all quality issues within your business in a one to three year period, developing and harnessing a properly structured quality strategy will take 5-10 years to reap real rewards. Do not go for short-termism, this has been a major problem for UK industry, we must start working towards longer time spans.
  3. SMALLER TARGETS: From using the targets for where you want your business to be, start developing smaller realistic targets, which will be achievable.
  4. PLAN AGAIN: This will involve further breaking down into smaller targets which will again smaller and more manageable steps, as Wellemin states 'For each activity it will be necessary to (a) Identify the gap, (b) Identify the output, (c) Identify and agree customer needs, (d) Translate these needs into product specification, (e) Identify the steps in the work place, (f) Select and agree measurement criteria, (g) Determine the capabilities and resource requirements'
  5. MANAGE THE PROCESS: From setting the targets, it becomes essential that the implementation is carefully managed, and that the business itself focuses on ensuring the quality plans are adhered to. The business also needs to ensure that quality is incorporated into all facets of its activities.
  6. COMMUNICATION: The biggest downfall of implementing any form of strategy has been the lack of communication. There is no point in introducing a new strategy unless all the people who are affected by it are aware of the implications it imposes upon them. Make sure everyone is aware; ensure appropriate feedback loops are in place.
  7. REVIEW: Have constant reviews, make sure the target set are achievable and can be met, if needs be re-arrange the targets, make sure all problems are raised, monitored and corrected. A quality strategy must be an evolutionary process that grows with the business.

Quality is a concept that should be applied to an organization as a whole. Quality should be applied to every process, which the organization carries out, from getting the raw materials from suppliers, through every stage of the production cycle or service provision.

A Quality strategy should be developed in a coherent strategy, where the ideal of employees, sections and departments should be seen as 'internal customers' is present. Because at the end of the day, ever improving internal quality will result in there being reduced cost benefits, and better still higher quality levels in the products and services of an organization, when it reaches the consumer.

Developing Quality Analysis

Investigating quality issues involves the use of lots of numerical data, some simple charts which can be used to aid the decision making process include:

  • FLOW CHARTS
  • RANK ORDER CHARTS
  • CAUSE & EFFECT DIAGRAMS
  • FUTURE STATE

FLOW CHARTS - Mapping the process out is common amongst all quality systems after all, if you do not understand the process, you begin to improve it. Use the data found in process mapping to decide upon areas where to have Kaizen.

Find out in depth information. Look at all your processes from the customer backwards. You need to begin with understanding what the customer wants in terms of product, quality and quantity of need (apply marketing logic).

Find out as much information as possible. How does the product move around your workplace?. Look at batch sizes, machine times, scrap rates, operator training, etc. Analyze which processes are adding value to the product.

Observe product deliveries to customers and raw materials from suppliers. Find out about customer returns, and your business returns to suppliers.

This should give you ideas of what your product flows are. The operations strategy section of this web site suggested that we must aim for as much value adding processes as possible. So identify from your process mapping which areas need improving - machine times, returns, etc.

RANK ORDER CHARTS - The logic behind rank order diagrams is very simple, it is based on Pareto’s law. Pareto suggested that 80% of the effects are generated by 20% of causes, in other words 20% effect 80% of the results.

Using the logic a little further, a rank order chart is a simple chart that shows, a item, or in this instance it could be a quality issue against the number of times the issue has arisen. For example you could use data of customer returns and why they have been sent back to your business. You may find that the reasons could be several, round them up into main categories and see which is the biggest area with problems.

This when plotted in a bar chart will show the areas where you need further investigation, in other words it will graphically bear out the biggest problem areas. Rank order diagrams are a very simple graphical tool, and are only useful to analyze simple problems with a few identifiable solutions.

CAUSE & EFFECT DIAGRAMS - Cause and effect diagrams are very simple. The basic concept of a cause and effect diagram is to generate a fishbone diagram where all the causes of a problem against the effect (the effect is the fishes head with all the scales of the fish being the causes)

Cause and effect diagrams are best generated in brain storming sessions, when you are talking to the operators about making improvements. You can use them to view historical attempts at solving quality issues have worked out, get the operators involved, see if your proposals for improvement will work or not.

Cause and effect diagrams are useful; a lot of organizations do use the diagrams on quality control documents such as concession sheets where a cause and effect diagram must be completed every time there is any defective material. These diagrams would then be analyzed on a regular basis, to bring about improvements in product build.

FUTURE STATE - Develop a future state where you want your business to develop. By mapping the process, we should identify areas for improvement. By looking at rank order we observe further areas for improvements. Using cause and effect diagrams we see what has worked and what has not. The final state is to review and apply all we have learnt to how we get to where we want to be.

There are numerous other methods for analyzing your business for improvement, the above examples are for illustration purposes only, please be sure to read other quality publications.

Understanding Errors

The major underlying principle in all quality management systems, is to understand what causes errors in business and try to rectify and prevent them occurring again.

Errors can be attributed to:

  • Poor training, which leads to mis-understanding and lack of perception.
  • Production cycle based upon the use of time saving measures which result in poor product quality.
  • Incorrect procedures covering the entire production cycle, rather than specific processes.
  • Employee intentional action (as a result of poor labour relations, motivation, etc).

What quality systems aim to achieve by a reduction in errors:

  • Proper identification of production process.
  • Understanding how errors arise, and what could happen.
  • Put measures in place to prevent the errors occurring again.

Having unstable processes in the production cycle leads to high levels of non-conforming material, which in itself leads to greater waste in the work place and lack of teamwork. Extensions to this are that your business will find itself having little or no direction, reduced profits due and lots of angry customers.

Quality Bibliography

TITLE / AUTHOR / PUBLISHER
'Quality is Free' / Philip B Crosby / McGraw-Hill (1979)
'Operations Management - Design, Planning & Control for Manufacturing Services' / James B Dilworth / Mcgraw Hill (1992)
'Total Quality Control' / A V Feigenbaum / Mcgraw Hill 3Rd Edition (1983)
'Customer Satisfaction Through Quality' / John H Wellemin / Chartwell-Bratt (Publishing & Training) Ltd (1990)
'The Chain of Quality' / J M Groocock / John Wiley & Sons Inc (1986)
'Managing Quality - The Strategic Competitive Edge' / David A Garvin / Free Press (1988)
'Becoming the Best' / Barry Popplewell & Alan Wildsmith / 2nd Edition, Gower (1990)
'A Practical Approach to Quality Control' / R H Caplen / 5th Edition Century Hutchinson Limited (1988)
'Commit to Quality' / Patrick L Townsend & Joan E Gebhardt / John Wiley & Sons (1990)
'Total Quality Management - Parts 1+2: BS57850' / The British Standards Institute / Bsi (1992)