02.04.

08 - 010

Quality

Quality management
What is quality?
Everyone has their own understanding of quality, a term which is often
incorrectly interpreted. Frequently, quality assessment is based on a comparison
of prices, without the fact being taken into account that quality is a relative
concept and that this difference is the result of the requirements made. Thus,
low-fat margarine cannot be compared with butter. There is a large difference in
price, but then the requirements made of the products are different. The quality
of low-fat margarine may even be better than that of butter.
Often, quality means something different for the customer than it does for the
manufacturer.
It is obvious that quality is of great importance for the consumer, and companies
realise that quality is one of the pillars that justify their existence.

Contents of the lesson

1

Quality

Product quality

History of quality management

Quality policy

Quality control

Integral quality management

The copyright in this material is vested in Shell Global Solutions International B.V., The Hague, The Netherlands and Shell Netherlands Raffinaderij B.V. All rights
reserved. Neither the whole or any part of this document may be reproduced, stored in any retrieval system or transmitted in any form by any means (electronic,
mechanical, reprographic, recording or otherwise) without the prior written consent of the copyright owner.

Quality / 02.04.08 - 010

Lesson
1. Quality
Have you ever seen anyone check tap water before drinking it? Of course not
would be your answer, we all assume that the quality of our drinking water is
good. Your answer to the question is logical. Something would be very wrong
if we could not rely on the quality of our drinking water.
However, it is not always logical that we can rely on the quality of a product.
Companies are not always able to supply products of high quality. As a result,
users are sometimes confronted with poor products, which can cause delays and
results in dissatisfied customers.
The time is past when poor products were acceptable. There is even a tendency
for quality to be the only requirement. Companies realise that quality is one of
the pillars justifying their existence.
Health and technology require products to operate safely and flawlessly and this
also applies the materials and components of the products. Quality may be of
vital importance for food but also for cars, aeroplanes and ships.
- products
- services

In order to stay in business, companies must be able to supply their products and
their services without faults, thus enabling them to remain competitive.

- planning
- production

Quality is an important argument for obtaining orders. Also in relation to

environmental issues and the consumption of raw materials. The company
reputations are themselves very dependent on the products and services that they
supply. To achieve a level of quality, the following items are important:
- a thorough and regulated planning;
- the manufacturing of products and the provision of services must both be
monitored and controlled;
- a well thought-out after-sales service which covers transport, distribution,
service, information and customer service.

- after-sales service

- requirement

Quality literally means: a condition or property. In economic terms it means

more than that: the degree of fitness of a product or a service. The fitness in its
turn is dependent on the fulfilment of functions or the satisfaction of
requirements. The requirements are determined by factors such as climate,
tradition, status and taste. Even usability, good after-sales service, rapid
implementation, reliability and expansion of export are important factors.

- relative

Quality is a relative term. It is difficult to give a definition of the term quality.

There are several known definitions. One that is often used is given below:

- properties

Quality is the degree to which the properties of a product or service correspond

to the requirements made of the proper functioning of that particular product or
service provision.
In short, quality is defined as conformance to requirements.
2

Quality / 02.04.08 - 010

- fitness for use

- cost price

Another term often used is fitness for use. For the customer, quality roughly
means: the extent to which the customer receives what he / she wants, taking
into account the price that he / she must pay.

- saleability

For the manufacturer, quality means something else, namely the degree to which
the customers requirements are satisfied, i.e. the saleability of the product.

2. Product quality

- design

- product
specification

It is obvious that it is not only the manufacturing divisions that can be made
responsible for the quality of a product. The properties that will determine the
usefulness at a later stage are also determined to a significant extent by the
designers.
The basic principle of quality management is that use is made of a product.
Quality management is based on the demands and requirements of the customer.
The desired quality is set out in a product specification: a collection of
requirements, conditions and standards that the product must satisfy. A product
specification often contains more, , like measurement procedures, raw and
auxiliary materials to be used, packaging and means of transport. The
specification is more extensive if the product is composed of several
components. A passenger aeroplane cannot be compared with a clothes hanger.
Usually the specification is set out by the manufacturer and customer together. A
definitive product specification is the starting point for the quality assessment of
a product. For this assessment, only the opinion of the customer or person
commissioning the work is of importance.

- customer

- quality cycle

The product quality is the quality experienced by the customer of the product
supplied. The customer is the person or organisation that makes use of the
product or service. Within a company or organisation there are both suppliers
and customers.
Only when the customer begins to make use of a product does it become clear
whether or not it is suitable for the customers purpose. Only then can the
customer form an opinion on the quality. However, before it gets this far, a long
path has been travelled; this is known as the quality cycle (see figure 1).
The following have to be considered in this context:
- in each successive phase of the cycle, the quality does not automatically
improve. A good design can be undone by using the wrong raw materials;
- a good production method can be spoilt by an incorrect storage method;
- it is impossible to use a good method of manufacture to improve a poor
design.

Quality / 02.04.08 - 010

5549-010-001-P

Figure 1
Quality cycle

In short: in each phase the quality of the preceding phase can be reduced or
improved.

2.1 Requirements for use

- price tag

- competition

- technical
developments

Customer's wishes and requirements of a product are determined, among other

things, by:
- The price category in which the product is sold.
The qualifications for a product in a higher price category must be better
than those for a cheaper product;
- The properties of competitive products.
The requirements made, in cases when comparisons are possible, are heavily
influenced by the properties of products or services offered by the
competition. It is increasingly easier to make such comparisons, even on an
international level, with the growing communication options.
Consumer associations are in particular interested in thorough comparisons
and provide this information to the consumer;
- The state of technological developments.
Defects that were previously accepted by the user in view of limited
technological development are no longer allowable;

Quality / 02.04.08 - 010

- standardisation

- constancy

General and specific regulations and agreements.

Safety regulations, environmental requirements and standardisation
stipulations have a considerable effect on the quality requirements of a
product. Agreements are made on certain properties of the product even
before the product is manufactured;
the user will assess the quality of a product to be better if it appears to
satisfy the requirements for use to a greater extent. The quality of the
product is determined by the degree to which and the constancy with which
it is possible to implement the design requirements during production. By
making regular inspections during the production process it is possible to
establish and monitor the properties of a product.
The quality of a product can be determined by comparing the properties of
the finished product with the demands and requirements of the customer.
Therefore, the end use and the valuation of certain properties are of great
importance.

Question 1
What does quality mean to the manufacturer and what does this term mean to
the consumer?

2.2 Quality properties

The appreciation of certain properties is understood to be the degree to which
the designed or purchased product fulfils its purpose. This appreciation is, as
mentioned previously, affected by factors such as fashion, taste, time, tradition
and status. Quality is also a dynamic term because many of these factors are
variable.

- functional
- aesthetic
- processing

The different product properties can be categorised into:

- functional properties. These are directly concerned with the usefulness and
suitability of the product;
- aesthetic properties. These relate to the appearance of the products, such as
shape and colour;
- processing properties. This is a specific type of functional property which is
not directly required for the operation or the application of the product, but
plays an important role during manufacturing
A product may possess incredible properties but if the user cannot use them or
did not ask for them, then the appreciation will be low. No-one pays a high price
for a product with such properties. A poor product that is useless or even
hazardous would not even fetch a low price.
The right quality means:
- no less than it must be;
- no more than is necessary;
- a reasonable price;
- satisfying expectations.
Question 2
Why is quality a relative and a dynamic term at the same time?
5

Quality / 02.04.08 - 010

3. History of quality management

Striving for greater efficiency in our busy lives is as old as man. The pursuit of
greater efficiency increased considerably particularly in the last two hundred
years as a result of the development in industrialisation. It has become more and
more apparent that theory (the thinking that precedes the doing) must assume an
important position. Inventions have become less of a coincidence and ever more
varied as a result of study and research. The advance of industrial activity has
become a reality as a result.
The need for reliability, in other words quality, is instilled in people. The history
of quality management therefore goes back a long way.

- self-production

- skilled craftsmen
and specialists

- guilds

- mass production

- industrialisation

Initially, man made everything himself that he thought he needed. Sticks were
made into spears and stones were shaped into knives and axes.
He produced his products so that they would meet his own demands (selfinspection). If the product did not completely meet the requirements in practice,
then he tried to make it better the next time. It was later realised that some
people excelled at certain skills: they could do something more quickly and
better than others. They were the first manufacturers. They produced certain
products for their fellow tribe members and were paid by their customers with
other objects: this led to bartering.
There was direct contact between the manufacturer and the consumer. The
manufacturer was able to assess the quality of his products by the quantity and
value of the bartered objects.
The first problems only arose when the craftsmen could no longer meet the
demand for their products. These craftsmen became masters and they employed
personnel (assistants and apprentices). To maintain the level of quality of the
products, the personnel had to be trained and the masters had to inspect the
products made by their assistants and apprentices. The masters, assistants and
apprentices formed guilds with strict laws and their own examinations for a
particular skill. The people that were not eligible to become masters secretly
began producing in the attic or at night. These moonlighters caused quality to
deteriorate.
The moonlighters tried to compensate for the lack of quality by working more
quickly and cheaply than the real artisans. This resulted in the first primitive
machines which enabled the extent of production to be increased. The quality of
these products was not the same as that of the artisans products, but it was
acceptable for those who could not afford the expensive artisan product. In
retrospect, this was the foundation of prosperity for all.
Many aspects played an important role in the further industrialisation:
- the increase in the level of mechanisation;
- the formation of trade unions;
- competitiveness;
- specialisation;
- standardisation;
- and so on.

Quality / 02.04.08 - 010

- supply companies

- mature consumers

Another influence was the system of supply of half products, which also
underwent development. Specialised factories manufactured components which
others assembled to end products. Controlling accuracy and reliability became
necessary as a result. Industrialisation meant that contact between the
manufacturer and the consumer was lost. The fate of the workers improved due
to increasing productivity. They were also consumers. The manufacturers
experienced that the customers had become more powerful, more critical and
more demanding: the poor call for more, the wealthy call for better.
The manufacturer had to try to keep the number of complaints from his
customers to a minimum by improving the quality with the aim of maintaining
competitiveness and increasing sales. The consumer could generally only
complain indirectly by buying the product from the competition. This became a
considerable influence on the development of quality management.
The fact that the products were becoming more and more complicated made it
increasingly more difficult for the consumer. The quality of the product was not
directly obvious. The only source of information was the manufacturer (slogans
and advertisements) and the experiences of others.

- inspectors

Therefore, there were significant reasons for the manufacturer to give greater
consideration to the quality and the reliability of his products. The first
consequence was the employment of inspectors who had to inspect the end
products. All the products had to be inspected one by one for the (main)
properties and features.

- final inspection

A complete final inspection proved to be a costly matter, particularly because

even the rejected products had cost a lot of money.
Moreover, there were other drawbacks associated with this. Each inspector had
his own standards and there was also still a possibility of a certain degree of
blindness to errors in the day-in-day-out inspection of the same products.

- sampling

In order to combat the high costs involved in such inspections, sampling was
introduced in about 1920. Sampling is a systematic way, that follows a particular
plan, of removing a number of products from the production process in order to
determine their quality. The consequences associated with the results of this
inspection had to be established in advance.
Statistics made its entry into industry with sample inspection in order to
determine the required size of the sample and the value to be attached.
In the final inspection attempts were made to prevent products of poor quality
from being supplied. Sampling tried to create a better insight into the quality and
properties of the products.
The results of the samples were collected on inspection cards and were used
when making changes to the production process. The outcome of an operation
could be established and the machine, the equipment or the operator could be
adjusted or corrected. This allowed interventions to be made at an earlier stage
in the process. Errors that were made at an early stage in the production process
and that led to the rejection of an expensive end product could be discovered and
rectified earlier. Improvements in measurement and control methods had a
beneficial effect, too.

- sample inspection

- inspection cards

Quality / 02.04.08 - 010

The disadvantage was that the manufacturing process was frequently too strictly
controlled and this in turn had an effect on the production rate and the inspection
costs.
- integral quality
management

- efficiency

- motivation

Integral quality management was introduced (approximately in 1950)

particularly as a result of the Second World War, which had made high rates of
production of all types of materials necessary. The use of statistics had made it
possible to use a machine to maximum capacity, but in many cases, there was a
large difference between the performance of the machine and the requirements
of the properties or accuracy of the product.
It was concluded that the outcomes from the inspections had to be fed back to
the phase before production, i.e. the design phase. The designer was now
confronted with the problems of the production divisions: reasons for rejection,
(excessively high) accuracy requirements, and so on.
The design was therefore adapted to the facilities of the production process.
Quality management was no longer limited to the production phase, but
extended to include planning and auxiliary materials. Designing a production
means in relation to the production and to the production facilities often made it
possible to avoid a complete final inspection. Obviously, this was providing that
the sample inspection after all the important operations was well organised and
the information obtained was used to optimise and speed up the adjustment of
the production process.
As a result of a slack period in the economy (approximately 1960), consideration
was given to the costs and benefits of quality management. Higher profits were
needed (higher efficiency) in order to get out of the economic crisis.
Economists were employed to demonstrate that quality management paid for
itself. The costs of quality could be optimised by working on prevention and by
reducing the costs of inspection; these would lead to a drop in the total costs of
quality: fewer complaints, better results, and so on. Reliable quality was pursued
in return for acceptable quality costs. No better than necessary and no more
expensive than necessary. It was also discovered that reliable quality could be
achieved in return for low costs by motivating the employees.
Errors were to be prevented by providing the employees with more motivation.
The zero defects and flawless production campaigns originated from this
time.
If people did not want to co-operate in manufacturing a product of good quality
then it would not succeed. The reverse was also true in that the pursuit of quality
created a motivating incentive to make the work more interesting and to give the
work a creative content which would enable the employees to gain more
satisfaction from their work.
Sociologists got the employees more involved in their work by expanding the
tasks of the employees and by transferring responsibilities and power to the
skilled worker.

Quality / 02.04.08 - 010

- consumer
associations

It became increasingly difficult for the consumer to make a good choice from
the many products that came onto the market. The consumer could no longer
determine on his own whether a particular product from a large number of
products would fulfil his requirements. If he used the information from the
manufacturer as a measure then he would get the impression that: cheap is
expensive. The counterbalance came in the form of consumer associations and
organisations. The consumers joined together and performed comparative
studies to determine which product from which manufacturer fulfilled the
requirements the best. This was an additional incentive for the manufacturer to
give more consideration to the requirements and demands of the consumers.

- NATO

In as early as 1967, agreements were made within NATO (North Atlantic Treaty
Organisation) to set requirements for the suppliers of goods and services in the
area of defence. A supplier was required to devise, introduce and maintain a
quality control system. As a result, quality management was integrated into the
entire production process, from design to the after-sales service.
Managing quality became a task for the entire company. Even subcontractors
and suppliers were involved. The agreements and publications by NATO were
the first multinational standards in the area of quality control and were a
considerable influence on the quality of both military and civilian goods and
services. The agreements provided the purchaser and the retailer of a material or
service with a systematic method to prevent inadequate quality; the basis was:
supplying or receiving a product or service with a previously agreed quality for
a relatively low price.

- product liability

- damage claims

- legislation

The most recent development that is of significance for quality management is

product liability. In other words: someone who supplies a product or provides a
service is liable for the damage that is caused by that product or service. This
applies even if the manufacturer or service provider could not have anticipated
that the product or service would present a hazard to people or property (for
example, an exploding bottle or an error in the operating instructions). Even if
the consumer is to blame for the damage as a result of unfamiliarity with the
product or due to improper or incorrect use of the product the manufacturer or
service provider may still be held liable.
The manufacturer can try to defend himself against damage claims by cautioning
against the incorrect use of the product by means of a warning on the packaging,
in the user instructions or by means of advertising channels. The manufacturer
can also build in additional safety features for risks that can be predicted. He can
try to find a way around product liability by warranty stipulations and delivery
conditions. However, he will not always succeed.
Until recently, the consumer had to prove that the damage was caused by the
defects of the product or by a shortcoming in the service provided.
This evidence was difficult to provide and this can be supported by the low
number of damage claims that were awarded in Europe. This allegation has been
reversed now as a result of legislation concerning product liability. Those who
put the product onto the market or provide the service have to exonerate
themselves and prove that the damage was not caused by their own failing.

Quality / 02.04.08 - 010

This general legal ruling on product liability applies in many countries,

including Japan, the USA and in most European countries. Export companies
have already been confronted with the consequences of this legislation.
Most European suppliers will have to demonstrate that the product or service is
good in order to avoid high damage claims and to keep insurance premiums for
liability at an affordable rate.
Three phases can be distinguished in the history of quality management:

- product

- production
process

- organisation

Phase 1
Until the 1950s, quality management was only associated with industrial
production. The emphasis was on quality inspections after production.
Samples were usually taken and the selected products were inspected. The
manufacturer established his own product specifications.
Quality or quality management was understood to be the question whether the
finished product met the required specifications. A rejected object was primarily
the problem of a quality division and not of production. This way of thinking no
longer exists.
Phase 2
Except for quality inspections, the emphasis until the beginning of the 1980s
was placed on quality control during production. Attempts were made to change
the production process so that production could be carried out according to the
specifications of the customer. The central idea was changing the production
process. Quality or quality management encompassed the quality of the
production process and the end product. A quality problem was more of a
production problem.
Phase 3
In the 1980s, the idea was developed that the quality of the end product
depended on the quality of the entire organisation. Everyone in a company is
involved in the quality of a product or service.
Consideration had to be given to the quality in all areas, from market analysis to
the delivery of the product to the customer and the associated service. Even the
required materials and tools had to be of a good quality. Quality management
actually begins with the supplier of the required materials.
A quality problem has now become a problem for the entire organisation. This
idea is based on the fact that all the operations and all the employees in a
company can have an effect on the quality of the product to be supplied.

- IQM

For this, an integral (all-encompassing) approach is necessary. This is called

Integral Quality Management (IQM).
Each company manages its own quality. Obviously, a one-man organisation will
approach quality management in a different way to a large company. In a large
company, use will be made of methods, auxiliary means, procedures and
regulations. In a one-man company, the boss knows the desires of all the
customers as a result of the large amount of contact with the customers; very
little is established in writing.
10

Quality / 02.04.08 - 010

Some companies will direct themselves to controlling the production process.

Others will pay more attention to inspection operations and quality stipulations.
Integral Quality Management is being applied more and more because many
companies realise that the final quality depends on the corporate process, or
business process.
Question 3
What is meant by the term product liability?
Question 4
In your opinion, has industrialisation contributed to an increase in the quality of
products?

4. Quality policy
The objective of every company is to supply products that have the desired
quality. The measures taken and the plans made to achieve this fall under the
quality policy. The necessary product quality must be obtained from operations
in all departments of a company. The operations must be performed in such a
way that optimum product quality is achieved. It must be possible to inspect and
test the results of such operations in every workplace and in every division. This
is known as a system of quality control or a quality management system (see
figure 2).

5549-010-002-P

Figure 2
A quality management system

11

Quality / 02.04.08 - 010

- quality
management
system

A quality management system is a system of established managerial procedures

and regulations. The aim of the system is to guarantee that a product or service
meets the set requirements. It can be seen from the diagram that quality control
in a quality management system is of great importance.
More and more companies want a quality mark for their quality management
system (certification). Such quality marks / standards have been devised for each
branch of industry. A quality mark attracts new and demanding customers. To a
greater extent, it determines the quality policy.

5. Quality control
The most important components of quality control are (see figure 3):
a. setting of standards;
b. implementation of operations;
c. testing;
d. establishing deviations;
e. taking measures.
Setting of Standards
Standards include: the requirements of a product or service to obtain the desired
quality. The standards not only relate to the end product but also to the
components that form this product. In principle, the standards relate to all
technical data for the product.
The customer may additionally demand that operations are performed on a
product by specifically trained personnel. Standards can be set to incorporate the
entire organisation.

5549-010-003-P

Figure 3
Quality control
12

Quality / 02.04.08 - 010

- skill

Implementation of operations
The intended quality is only brought about with the implementation of
operations. It should be obvious that the employees must inspect their own work
and they must also be responsible for quality. The employees must be familiar
with the standards and must also be able to assess them. All employees in a
company must know what is expected of them. They must also have access to
the right (auxiliary) means and they must have the right skill.

- quality division
- constant
conditions
- representative

Testing
Testing or inspecting means investigating whether the desired quality has in fact
been achieved. Testing can be carried out by production personnel as well as by
employees of a quality division. It can be performed by measuring, examining or
inspecting. Testing does not improve the quality. Testing must fulfil two
prerequisites: it must take place under constant conditions and the samples must
be representative.

- responsibility

Recording deviations
Deviations from the established standards must be recorded so that decisions can
be made quickly as to which measures need to be taken.

- training

Taking measures
Eliminating deviations can be achieved, for example, by improving tools and
operating methods, making use of improved raw materials and auxiliaries,
changing design data and, last but not least, by training employees.
Question 5
What is meant by a quality management system?
Question 6
What are the most important components of quality control?

13

Quality / 02.04.08 - 010

6. Integral quality management

All the quality related activities combined constitute quality management. The
aim of quality management is to strive towards the required quality and to
achieve and maintain this at a minimum cost. Quality management primarily
comprises the daily tasks of:
- supervising and planning;
- inspecting and testing;
- implementing and advising.
The implementation falls into three different phases:
- analysing quality;
- changing quality;
- maintaining quality.
Analysing quality
This may relate to an analysis of the quality of a product and the production
processes.
The product is tested against the applicable regulations concerning structure,
model and drawing regulations, general impression and set standards.
The production process is tested for efficiency and possible sources of
systematic errors.
Quality analysis must not only remain limited to current products or services and
materials, but must extend to include those that will have to be dealt with in
future.
Changing quality
This can be achieved in the following manners:
- organisational steps: co-ordination of different operations, training
personnel, providing good instructions and procedures;
- technical measures: choice of the right methods for reproducing and
producing; correct regulations;
- attitude: motivation of all employees:
- economical steps: good insight into costs of reprocessing; waste; complaints
from users.
Maintaining quality
Maintaining quality once it has reached a particular level is more difficult than
improving quality. Everyone must be motivated and remain motivated in order
to preserve the achieved degree of quality. The following means are available:
-

Process monitoring
Are operations being carried out according to the right regulations; is good
advice being given; are good auxiliaries and the right materials available; is
there good supervision?

Efficiency monitoring
Comparison of the results obtained with the set standards; efficiency of the
total process and checking of, among other things, the feedback of
information to all parties concerned.
14

Quality / 02.04.08 - 010

The results of these activities must be applied to adapt or improve the various
requirements, procedures, instructions or regulations.
A large number of quality operations relate to inspection. This is particularly the
case when the quality level is to be maintained.
- quality standards

The starting point for inspections is formed by the quality standards. These
standards always consist of two parts, these being:
-

The nominal value

This is the value which is regarded as standard. A slight deviation from this
will not impair the functioning or other properties of the product, but in fact
makes it possible to produce economically. Therefore, a tolerance range
must be assigned to every nominal value.

The tolerance
In terms of function, the tolerance must be as small as possible.
In terms of economics, the tolerance must be as large as possible.

The standard therefore must be an optimum. Functional and economic

requirements must be weighed up against each other.
In many cases, the standard is not set out and exists only in the form of a
tradition or the opinion of one particular person:
- different employees have different standards;
- it is difficult to break in new employees;
- cases of doubt may continually arise;
- the production level may influence the assessment.
- quality standard

Standards have to be clearly set out (quality standard).

Quantity and quality
It is obvious that quantity and quality are closely connected to one another.
- If all consideration is directed at the production rate, then the quality will
decrease.
- If all consideration is directed at quality, then the production rate will
decrease.
- Reasonable quality is therefore also an optimum combination of production
rate and quality.
Integral quality management is a new look at quality and it is being introduced
to a growing number of companies. The basic principle is that every aspect of
the entire company must satisfy quality standards.
Even the management-support divisions play a role; consider the administration
and the personnel department, for example.
Known research has shown that 80 % of all errors and problems are caused by
the system of a company.

15

Quality / 02.04.08 - 010

5549-010-004-P

Figure 4
Control model for quality management

- organisational
errors

An error in the organisation (organisational errors) is often only noticeable on

the shop floor. Errors in the system must be prevented and the system must be
made manageable. An integral approach to the company process has become
necessary. Employees must use their knowledge and experience to detect weak
spots in the system. Then they themselves must make improvements or this is
done via the supervisors. An advantage here is that in this way the employees
are or become more motivated.
There are three important reasons supporting integral quality management.
1 An important basic principle is the idea that every employee wants to do
his / her work well and provide a product of good quality. All employees
have a direct or indirect influence on the quality of the product sold. The
central issue in the company is the prevention of errors.
Despite the necessary investments, preventing errors is in fact much cheaper
than a complete final inspection, rejecting products (loss of production time
and material) and resolving the complaints afterwards (damage to the
company reputation as well as the necessary return costs).
Everyone should be vigilant for deviations.
Events that may have an effect on the production process must be spotted in
good time.
It is also of great importance that the employees know what happens to the
work they do and how they can prevent their colleagues from having
problems.

16

Quality / 02.04.08 - 010

- quality campaigns

The answer to the question who ultimately pays the salaries of the
employees is: a satisfied customer.
A study at a number of service-providing companies of the reasons for
quality campaigns provided the following conclusions: in service-providing
companies there is an immense internal force that compels people to provide
quality work. Work supplied that lacks quality causes distress. Supplying
quality gives a great deal of pleasure to the work. What is more, this actually
applies to any company.
The production costs are lower in companies that apply integral quality
management. Preventing errors is therefore better than rectifying errors.

The first reason is aimed at the internal organisation. The central theme is
supporting and supervising employees so that they will perform well in terms of
quality.
The second reason clearly indicates that the customer judges the product quality.
Finally, the third is an economic reason.
Integral means that quality begins with the supplier. Moreover, integral quality
management is far from over after a product is delivered to the customer.
Question 7
What is the meaning of the statement that 80 % of all errors that occur are
caused by the organisation of a company? Give some examples of areas in
which these errors may occur.
Question 8
Why do quality standards have to be clearly recorded?

17

Quality / 02.04.08 - 010

Summary
The quality of most products (particularly foodstuffs, medicines and clothing) is
good. People rely on this fact.
It may sometimes be heard that: the quality of Japanese cars is no good or
French wine is of exquisite quality. The question as to what quality means
arises immediately.
It is necessary for the term quality to be clearly described and recorded. A
frequently used definition is: quality is the degree to which the properties of a
product or service correspond to the requirements made of the proper
functioning of the particular product or service.
Product quality depends on a number of factors such as design, raw materials,
manufacturing methods, manner of packaging and the after-sales service.
The collection of requirements, conditions and standards is set out in a product
specification. Before a product meets the product specification it should pass
through the quality cycle.
Quality properties are divided into functional, aesthetic and processing
properties.
In terms of time, quality management has come a long way. The pursuit of
efficiency is as old as man. Industrialisation and recent automation have
contributed greatly to improving product quality.
In order to be able to supply good products a quality policy and quality control
are necessary. Integral quality management is a new look at quality, which is
being introduced with a growing number of companies, often with success.
Quality begins with the supplier and concerns everyone who calls himself a
consumer.

18

Quality / 02.04.08 - 010

Test
Exercises
Do not send in answers for correction
1. A significant number of the properties of a product is set out in a product
specification. Who determines these properties?
2. A product specification is a list of requirements, conditions and standards
that a product must satisfy. Who compiles this product specification?
3. What happens to the quality of a product in each successive phase of a
quality cycle?
4. Give a classification of product properties with respect to quality.
5. What is a sample?
6. Consider the statements below.
I
It is almost impossible to manufacture a quality product using
unmotivated and untrained people.
II Anyone who provides a product or service is not liable for the damage
that is caused by that product or service.
In your opinion which statement(s) is (are) (in)correct?
7. Which means are necessary in order to maintain a level of quality that has
already been reached?

Answers to the questions in the lesson

1. For the manufacturer, quality means the extent to which his product satisfies
the customers requirements, i.e. also the saleability. The consumer will find
the quality to be good if the product corresponds to what he wants, taking
into account the price he has to pay.
2. The term quality is relative because it can be interpreted differently by
everyone, depending on the application or requirements. Because quality is
heavily influenced by changing factors such as fashion, time and status, the
term is at the same time dynamic.
3. Product liability means that the manufacturer of a product or the service
provider is liable for the damage that is caused or may result from that
product or service.
4. Industrialisation has contributed a great deal to quality improvement. It
brought with it prosperity for all. Competition, specialisation and
standardisation have particularly contributed to increasing quality.
19

Quality / 02.04.08 - 010

5. A quality management system is the organisational interaction between

departments, procedures and measures which, by means of the use of
standards and inspections in all areas, in and out of the company, where the
quality of the product can be changed, guarantees that the desired quality
can be delivered.
6. The most important components of quality control are: standards,
implementation of operations, testing, recording deviations and taking
measures.
7. 80 % of all errors that occur are caused by the organisation of a company.
This means that certain systems within the organisation are not correct or are
applied incorrectly. Examples are: planning, communications, personnel
policy, training of personnel, reward systems, delegation of responsibilities
and service provision.
8. Quality standards have to be clearly laid down in order to weigh up the
functional and economic requirements against each other. Everyone would
apply different standards if no agreements were made. Cases of doubt may
arise, with the chance that different assessments are made.

Answers to the exercises

1. The properties are set out in a product specification by the designer after an
analysis of market research.
2. The customer, together with the designer (manufacturer), compiles the
requirements, standards and conditions that a product must satisfy.
3. In a quality cycle, the quality of a product does not automatically improve in
each successive phase. The quality must in no way be negatively affected.
4. Product properties are categorised into functional, aesthetic and processing
properties.
5. We have to do with a sample when a systematic and planned inspection is
performed on a number of products from the production process.
6. I
II

It is almost impossible for unmotivated and untrained people to

manufacture a quality product.
A supplier of a product or service is definitely liable for the damage
caused by that product or service.

7. In order to guarantee quality the following are available: process monitoring

and efficiency monitoring.

20

Quality / 02.04.08 - 010

Problems and assignments

Answer and send in for correction
1. What is meant by a product specification in the context of quality
management?
2. If the quality of a product is to be controlled, then strict standards have to be
established. Explain why this is so important.
3. Give several reasons why complete final inspection is so expensive.
4. For your own organisation, indicate what constitutes the after-sales service
for an end product.
5. In your own words, explain the difference between the terms quality policy
and quality control.
6. Indicate what is meant by integral quality management (IQM).

21