Quality for me is the basis of how much the value of someone’s work. It is the fundamental measurement where people look at in every way. From the product that has been sold up to the service that the company provide. It is also use to compare two things that has almost the same characteristics. Most of the people look at it rather than the price; because the quality of the product will reflect how much satisfaction it can give to the customer. I see quality also as the measurement of how unique the products are, the satisfactory level of the consumer will be manifested through the quality of the service that has been provided. For example, sports wear like basketball shoes have their own prices relatively to the quality of the shoe has. The basketball shoe has 3 types, the original, class A, and class B. Class B are the product that has substandard quality, it means that the price of this kind of shoe are quite cheaper. Next one is Class A, this type of shoe is quite expensive. This type of shoe has high quality materials that give more comfortable feeling compared to class B. Lastly, the originals. This type of shoe has very high quality; it only means that it has more expensive among all the type of shoe. The price of the product will depend on the quality of the product. Therefore higher quality product will give higher satisfaction, it will also reflect to the price of the product.
Quality is so important because it gives the satisfaction that the customer needed. If the quality of the product will not be considered, you will not give assurance that you give the satisfaction for your customer. A marketer once said that quality over quantity. Hiring 3 outstanding employees is better than hiring 6 lazy ones. This means that quality is very important in everyday life because without it, there will be no satisfaction. It will always have substandard work that can lead to failure and loss. In the business world, loss is inevitable. We must avoid having it, so we must to check all the quality, from the performance of the staff, product and services. If we try to disregard the quality of these 3 you need to repeat of the processes from the very beginning. For example, in a construction site, you need to check if all the materials is in high quality, the building that is being establish needs to be check its quality to avoid hazard and for the safety of the environment. If you failed to achieve the standard quality, the building should be reconstructed again. It is a waste of time for the worker, waste of money for the contractor, and waste of materials that is being used. There are a lot of losses that might happen without securing the quality of the product. We must set the standard on providing high quality output to avoid harm and losses.
Expound the meaning of “Price of Non-Conformance (Phil Crosby) in relation to the cost of quality.
Phil Crosby said that most of the company pays for the low quality and that is the “Price of Non-conformance” most company only pays and wait for the output they didn’t observe the process. They leave the flow of the production in the hands of their employee. They will just give their action if they see the result or output of the said project. For example, the manufacturing of clothes, they only letting their workers do their job and wait for the output before they will be going to give their verdict about the product. There are 2 types of cost. The cost that the company pays for the high quality performance and the cost that they have to pay for the low quality.
First is the prevention cost, this is a type of cost that is meant to prevent or avoid quality problems. This cost is associated in the maintenance and implementation of high quality management system. Next one is the appraisal cost, it is also known as inspection cost. This cost is use to inspect the output of the product to check if the product meets quality standards. This will be an additional cost for the company just to secure the quality standards and avoid on repeating the process from the beginning. Next one is internal failure cost, this cost happens when the product didn’t meet quality standards, it will lead to rework just to repair the product it will cost additional payment to the workers. And some products are not applicable for rework so it is results to disposing the product or dumping the product. next one is the external failure cost, this cost happens in the store, this will lead to disappointment of customers that results to difficult on regaining their loyalty to the business venture.
There are 4 types of cost happen on a business operation, first is the prevention cost, this cost is an additional cost for the company. It will secure the quality of the product that is need to be produce they are the one who implements or checks the quality of the product during work. From the materials of the product up to the production, the performance of the staff, the skills, etc. it focuses on the quality of the production to avoid future loss or unexpected expenses.
Appraisal cost is the type of cost that checks the quality of the output of the business. This cost is use to check whether the product is on high quality. This includes inspection; product testing just to make sure the quality standards is met. If they didn’t meet the standard the product will be return to the production requirement to repair the damage in the product. This appraisal cost aims to prevent the leakage of the substandard product and to maintain the production of high quality materials.
Internal failure cost – this cost happens when the product has damage and needs to be repair before the shipping comes. The failure in the production will results to low quality materials, it will cost you another bunch of money above your specific budget. Because you need to repair all the damage products, and some products are too damage to repair, it may results to waste of the materials, time and product.
External Failure cost – this cost is when the damage product reaches the market. it may results to disappointed customers that can create a hole between the relationship between you and your customer. It will be hard to regain their trust on that matter. The damage material will be sold in a very cheap price or maybe dump. The additional expense that incurred in this one plus the amount of money that has been waste for disposed product will be considered cost to your business.
Total quality management is very important to know and monitor that the products and services that we provide to our customers are on the highest quality with this we can satisfy our customer and can establish our strong brand. As a marketer we tend to interpret what are the needs and wants of our prospect customers’ base on their attitude and the trend. If we tend to use this data we can survive the competition, but if the product that has been produce is in low quality all the research interpretation will be useless. We are here to give what they need and what they want. The quality of the product will project what is the value on its own. Without the need quality we provide food without taste. The buying behavior of the customer can be manipulated through different strategies, you can convince to enter your store, roam around and look for possible product they can buy. Selling low quality product will results to complain, a loss, and a big trust issue against your customers. We need to study total quality management to correct our perception when it comes to producing a product. Yes, it is very important to sell your product and earn revenue. But it ends with what does the customer gets from you? Do you satisfy her needs? Do you give him delight? You can’t do that without producing and giving them high quality products. And high quality products starts from within from how the product being produce, who produce the product? it all begins with the inside if we focus on demanding our workers to produce good quality products they must have quality pay also. Satisfying your customer is your objective, and giving to your customer what they deserve must be your responsibility.
Discuss the evolution of total quality management TQM.
The total quality management has been created many times ago. In early 20’s quality management is all about inspecting the product, checking, and testing it to ensure that they met the said expectation.
In 1940, during worldwide II. The quality management improves into more statistical, they use statistical tools in order to check the progress and process of production. The statistical tools also use to evaluate the quality of production.
In 1960, the concept of the quality management evolves. It is not focus only on production because the entire organization is responsible for the quality of the product that’s why, from focusing on production they see it as something that can affect the organization. That’s why the loss in poor production means it is a loss as a whole organization.
In 1970-1980, US Company lost on competition when it comes to car or auto industry the Honda and Toyota as well as Toshiba they led the competition by producing high quality motors while selling it on the cheaper price, with this they can attract customers. Due to this event, American companies adapt the new concept of producing high quality materials, they start to hire consultant when in terms of quality of the product. From this era a new concept of producing quality products emerge in the market and who ever did not meet this standard will be left behind in the competition.
From now on producing high quality products will literally attracts customers. Who ever being left behind in this concept will also be left behind in the competition. Those who can adapt easily will be strongly left hanging around, enjoying their place as competitive business with a strong brand.
Describe the important contribution of all the Gurus being mentioned in this lesson in the development of total quality management.
Walter A. Shewhart – this Guru tells us about the variability. This means that adding or decreasing variable will affect the quality of the product. it is still use now a days, it is very important in the field of quality management because variable plays a lot of role in controlling. If you see that the quality of the product is quite low, see if the worker is sufficient to do this job. Or does the material is exact or less. Controlling variable may improve the quality of your product.
W. Edwards Deming – this Guru pinpoint that the problem with quality control is not in the workers only, or in the workers it self only. He says that producing low quality products is the problem of the management. They are the one who controls everything, improving the quality of work as well as product will depend on the management. 15% of the quality problems is because of the workers while the other 85% is on the management. Therefore Deming says that poor quality product means poor management.
Joseph M. Juran – this Guru define that the quality is a fitness for use, meaning you have to maintain to be healthy. Do what you got regularly and start to improve yourself into step by step basis. You need to satisfy your customer, but you need to prepare yourself on doing that. He also means that the quality of product reflects your own self. He also invented the cost of quality, using this you can see how many dollars you have in order to get what type of quality product you want.
Armand V. felgenbaum – He introduce the concept of total quality control. It is very important in the field of quality management because this concept merge the quality management to the whole organization. Where everyone wants to improve the quality of the product. it says that the work environment itself are set to improve quality products not for the organization but for the customer.
Philip Crosby – he says that quality is free, this only means that you can do high quality on your first try, there is no room for defects. Does it right, right now because there are no rooms for defects. This concept is very useful, if every organization has this mindset there we’re no products in the market consider as low quality.
Kaoru Ishikawa – he creates the cause and effect diagram or the fishbone diagram. This concept is use in early age as of today, in order to solve simple problems and hard problems. he believed that everyone in the company shared the same vision and has the common goal. The improvement of quality management will be applicable to any level of management.
Genichi Taguchi – he believes that 80% of all the defects in the product are cause by the poor product design. He believes that is easy to design a product that can perform in a wide range of environment that changes the environment to be adaptable by the product. He is known for his concept called design of experiment to product design. This method is an engineering approach that is based on developing robust design that results to a product that can perform wide range of condition.
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