Introduction to the Quality System
The term “quality” has a lot of definitions. And in the actual sense, “quality” is a difficult concept to define with any precision. A very fundamental definition of quality is the ability of a product or service to meet the expectations of the customer. This definition is still not all-encompassing.
The term ‘Quality’ can be described in many different ways. These include:
- The degree of excellence of a product or service.
- It is a state of being free from defects, deficiencies and significant variations.
- It is brought about by strict and consistent commitment to certain standards that achieve uniformity of a product in order to satisfy specific customer or user requirements.
- ISO 8402:1986 standard refers to quality as "the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs."
All of the definitions have something in common: Customer. The degree of excellence of a product or service can only be through the eyes of the customers, by understanding what the customer calls “excellence”. Defects in a product or service are unwanted part of the product or service as defined by the customer. For quality to be achieved, consistent adherence to product or service requirements must be ensured. These requirements dictate the features and characteristics of the products or service.
Differences between Quality and Grade
The two terms, Quality and Grade are often confused. Although they imply establishing and/or meeting certain specified standards but they are not interchangeable.
- Quality
Quality refers to the degree to which the product or outcome meets the customer or end-user specified requirements. It is the assessment on how well the output aligns with their needs and expectations. We can rightly say that quality is “in the eye of the beholder”. That means that even if a product or service seem to be of high quality in the eyes of the producer or service-provider, that does not necessarily equate high quality on the part of the customer or end-user.
- Grade
Grade is simply a classification assigned to a product or service that has the same functional use but different technical characteristics. Grade is often determined by means of some set of pre-determined measurements and demonstration of compliance to those measurements.
For instance, chairs are graded based on their technical characteristics. Regardless of their grade, they all can be used for the same function: sitting.
This shows same functional use but different characteristics. One may purchase high grade chairs, however, if one of the chairs is damaged, it would considered low in quality because it has become useless, since the requirements have not been met.
The 8 Dimensions of Quality
To achieve true quality, the following 8 dimensions have to be considered.
- Dimension 1: Performance
This is when the product or service performs according to expectations and design, within its defined tolerance. When a product or service is not performing according to specification, it usually results in contention between customers and suppliers. The performance of product or service often contributes to the profitability level and/or reputation of an organization.
- Dimension 2: Features
In this case, the question of whether the product or services possess all of the features specified, or required for its intended purpose is considered. It should be noted that performance specifications doesn’t always define the features required in a product. In order to ensure high quality, suppliers designing product or services from performance specifications needs to be familiar with its intended uses, and maintain close relationships with the end-users.
- Dimension 3: Reliability
This dimension answers the question of whether the products or services consistently perform within specifications. This dimension may be closely related to performance. Reliability is a key contributor to brand or company image. It is among the key dimensions of quality.
- Dimension 4: Conformance
In this, does the product or service meet specification? If it’s designed on the basis of performance, does it perform as specified? If it’s developed on the basis of design specification, does it possess all of the features specified?
- Dimension 5: Durability
This is determines how long a product will perform or last, and under specified conditions. This is closely related to warranty. Requirements for product durability need to be clearly stated within procurement contracts and specifications.
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- Dimension 6: Serviceability
How easy is the product to maintain and repair? As the final users become more focused on Total Cost of Ownership than simple procurement costs, serviceability become progressively an important dimension of quality and criteria for product selection.
- Dimension 7: Aesthetics
The look of a product is very important to end-users. The aesthetic properties of a product influence the identity of a company or its brand. Defect in a product that reduces its aesthetic characteristics including those that do not reduce or alter the other dimensions of quality, are often a cause for complaint or outright rejection.
- Dimension 8: Perception
Perception as often said, is reality. The product or service may possess the right proportion of the dimensions of quality, but may still have negative customer or poor public perceptions. An example is a high quality product having the reputation for being low quality because of poor service by installation or field technicians. If the product is not properly installed or maintained, and fails as a result, the failure is often associated with the product’s quality rather than the quality of the service it receives.
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Understanding the Cost of Quality (COQ)
One aim of quality management is doing things right the first time. The cost of doing things right the first time is far less than the potential cost of re-working things.
Costs of Quality are costs that are generated in the process of managing the quality of a product, which include cost incurred due to product defect prevention and/or as a result of producing defective material.
There are four primary cost categories:
- Appraisal Cost
- Prevention Cost
- Internal Failure Cost
- External Failure Cost
- Appraisal Costs
This cost covers inspection and testing throughout the cycle of production from inspection of raw materials received from the supplier ensuring that they meet specifications to in-process inspection (i.e ensuring that products are acceptable at each stage of production), and finished products inspection ensuring that finished products are acceptable.
Appraisal costs are costs incurred to determine the degree of conformance to quality requirements. They are costs that are associated with the suppliers’ and customers’ evaluation of incoming materials, processes, products, and services to ensure that they conform to standard specifications. Techniques used in assessing appraisal costs include:
- Inspection: This requires checking of raw materials, in-process setup, and products against agreed specifications or reference standards.
- Quality Audits: This requires confirming that the quality system is functioning correctly.
- Supplier Rating: This is simply evaluating suppliers based on the results of the assessment and approval of their products and/or services.
- Prevention Costs
Prevention costs are costs incurred as a result of proper training, planning, setting up of work areas for efficiency and safety. This cost also includes conducting periodic reviews to ensure optimal efficiencies. It is encouraged that prevention-related activities receive the tangible allocation of a company’s monetary resources. Prevention costs are incurred from preventing or avoiding quality problems. These costs are associated with the design, evaluation, implementation, and maintenance of the quality management system. These costs are planned and incurred before actual operation. Example of prevention costs include:
- Product or service requirements: Establishment of specifications for incoming raw materials, processes, finished products, and services.
- Quality Planning: Creation of plans for quality, reliability, operations, production, and inspection.
- Quality Assurance: This is the creation and maintenance of the quality system.
- Training: Development, preparation, and maintenance of programs.
- Internal Failure Costs
Internal failures are the costs of solving an issue regarding a product before reaching the customers. Internal failure costs are incurred to correct defects discovered before the product or service gets to the customer. These costs occur when the results of work fail to reach design quality standards and are detected before they are delivered to the customer. They could include:
- Waste: Performance of unnecessary work or holding of stock as a result of errors, poor materials, faulty machines which could cause delay and downtime, poor communication.
- Scrap: Defective product or material that cannot be repaired, used, or sold. E.g. crapped product runs.
- Rework or rectification: They are correction of defective material or errors. These are designs that require rework.
- Failure analysis: These are activities that require the establishment of the causes of internal product or service failure.
- External Failure Costs
This category concerns the cost of issues resulting from the release of a defective product into the market. These may include warranty issues, product recalls, returns, and repairs. External failure costs are incurred to correct defects that have been discovered by customers as a result of the products or services failing to reach design quality standards not detected until after transfer to the customer. These could include:
- Repairs and Servicing: These apply to both returned products and those in the field.
- Warranty Claims: These apply to products that failed products and are replaced or services that are re-performed under a guarantee.
- Complaints: These are work and costs related with handling and servicing customers’ complaints.
- Returns: This involves handling and investigating rejected or recalled products, including transport costs.
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About the Author
Olanrewaju, Adebayo Bamidele is a Lead Auditor of ISO 9001, FSSC 22000 / ISO 22000, 14001 & 45001 Management Systems, Certified Six Sigma Master Black Belt (CSSMBB), process engineer, and quality management professional with strong working experience and proven skills in manufacturing excellence, ISO management systems implementation, lean / digital manufacturing, and project management.
Adebayo is a Corporate Member of American Institute of Chemical Engineers (AIChE), Associate Member, the Institution of Chemical Engineers (IChemE), Corporate Member, Nigerian Society of Engineers (NSE), Corporate Member, Nigerian Society of Chemical Engineers (NSChE), Associate Member, Nigerian Institute of Management (NIM), and Associate Member, Institute of Strategic Management of Nigeria (ISMN).
He is an author of over 15 books and has published over 45 online courses on various e-learning platforms including Udemy, Alison, Learnformula & Study Plex.
You can reach him, here.
