REPUBLIC OF THE PHILIPPINES

RIZAL TECHNOLOGICAL UNIVERSITY

CITIES OF MANDALUYONG AND PASIG

PRODUCTIVITY AND QUALITY TOOLS

SUBMITTED BY:

Bang, Eilla Jane

Tama, Bryld Justine

PCBEA 18-502P | BSBA OPM

Quality
 Quality refers to the degree of excellence or superiority of a product, service, or
process.

Definition of Quality

 Quality is the ability of a product or service to meet a customer's expectations for

a product. It is a measure of how well a product or service meets or exceeds
customer expectations and requirements.

Example Of Quality

 Lazada and Shopee compared on their product quality

 Food that cheap price but quality taste (jollibee)

 Ensuring high quality is a critical aspect of business success, as it enhances

customer loyalty, brand reputation, and market competitiveness.

Total Quality Management

 is a structured system for satisfying internal and external customers and the
business environment, continuous improvement, and breakthroughs with
development, improvement, and maintenance cycles. It aims to satisfy both
internal and external customers as well as suppliers.

Example of Total Quality Management

 Plasto Toys manufactures plastic toys for kids. Parents trusted the company
because of its high-quality goods since it was able to build a solid reputation in
the marketplace. However, the ongoing environmental campaigns on plastic
pollution had a significant negative impact on toy sales, resulting in significant
losses for the business.

 In response, the management and executives of the company decided to apply

the TQM strategy when producing toys out of biodegradable plastics.

 The marketing department began promoting and publicizing how environmentally

safe their toys are. Plasto Toys quickly reclaimed its prior place in the market,
taking only a few months.
  As organizations work to discover and solve possibilities for improvement,
minimize flaws and errors, and innovate to meet shifting customer demands.

COMPONENTS OF QUALITY MANAGEMENT

 Quality Planning -Identifying your quality goals and standards, the requirements
necessary to meet these standards, and what procedures will be used to check
that these criteria are being meet.
 Quality Assurance - Process that consists of establishing standards, guidelines
and procedures to prevent quality issues and maintain the integrity of the product
or service throughout its development.
 Quality Control - The process of physically inspecting and testing what you laid
out in the planning stage to make sure it is obtainable.
 Quality Improvement - A structured approach to evaluating the performance of
systems and processes, then determining needed improvements in both
functional and operational areas.

Quality Specification
 Quality specifications are detailed requirements that define the quality of a
product, service or process. Quality includes tangible elements such as
measurements and intangible elements such as smell and taste.

Example of Quality Specification

 Food - Precise definitions that are used to sort food into quality grades. For
example, apples might be sorted according to size, ripeness, color, symmetry
and condition to offer a premium and non-premium grade.
 Manufacturing - A bicycle manufacturer performs automated quality control
testing on all units before shipping based on specifications such as detailed
measurements designed to ensure that a bicycle's tire is properly aligned to its
assembly.
 Infrastructure - A solar panel manufacturer guarantees the conversion efficiency
of its modules over time. This is based on a specification of rated power output
and percentage of that output that can be expected as the panels approach end-
of-life, often 25 years.
 Formulations - The amount of a high quality ingredient in a product. For
example, a beverage that is 30% organic pineapple juice.
 Materials - Material quality such as the thread count of a fabric.
 Software - Specifications for the performance of a software service such as a
99.99% availability rate.
  Services - A hotel chain defines detailed specifications of what it means for a
room to be clean. This is used to define processes for cleaning services and
quality control checks.

Quality Cost

 Quality cost is essential to any business that wishes to maintain high standards
and meet customer needs and expectations. By investing in quality, companies
can avoid defects, build customer loyalty, and improve profitability.

 Quality costs are the costs associated with preventing, detecting, and
remediating product issues related to quality. Quality costs do not involve simply
upgrading the perceived value of a product to a higher standard.

Example of Quality Cost

Appraisal Cost
 These are the costs associated with evaluating and measuring the quality of
products or services. These costs include inspections, testing, audits, and quality
control checks. Appraisal costs help to identify any deviations from the desired
quality standards, allowing for corrective actions to be taken in a timely manner.

Prevention Cost
 These are the costs incurred to prevent quality issues from occurring in the first
place. They include investment in training programs, quality planning, process
documentation, quality control measures, and implementing quality management
systems. Prevention costs aim to identify and address potential quality problems
before they occur, thereby reducing the likelihood of defects or errors.se are the
costs incurred to prevent quality issues from occurring in the first place.

Internal Failure Cost

 These are costs associated with defective products or services that are identified
before they reach the external customer. Internal failure costs include rework,
scrap, warranty claims, production delays, and potential loss of sales due to
customer dissatisfaction.

External Failure Cost

 These are costs incurred when defective products or services are delivered to the
external customer. External failure costs include customer complaints, product
 recalls, repair or replacement costs, lost business opportunities, damage to
reputation, and potential legal actions.

Philosophy of Continues Improvement

 encourages all employees to constantly grow personally and professionally, to

look for possible improvements and then to initiate positive change in an
organization.
there are continuous efforts to improve which result in small, often imperceptible,
changes over time. The company may also establish a system where employees
can submit improvement ideas on a regular basis. These ideas would be
reviewed and prioritized, and those with the most potential for improvement would
be implemented. This could be done through pilot programs, testing new methods
on a small scale before rolling them out company-wide.

By adopting a philosophy of continuous improvement, the company creates a

culture of innovation and encourages employees to actively seek out
opportunities for growth and development. Over time, this can lead to increased
efficiency, higher quality products, and a more engaged and motivated workforce.

Overall, the philosophy of continuous improvement emphasizes the importance of

ongoing reflection and learning, with the goal of always striving for better results.
It recognizes that there is always room for improvement, and by constantly
seeking out and implementing positive changes, individuals and organizations
can achieve continuous growth and success.

Example of Philosophy of Continues Improvement

KAIZEN PHILOSOPHY
 The basics of the Kaizen philosophy – continuous improvement without any
excuses. Kaizen is both a philosophy and a method. As a philosophy, it
encourages all employees to constantly grow personally and professionally, to
look for possible improvements and then to initiate positive change in an
organization.
 One example of a philosophy of continuous improvement can be found in the
concept of Kaizen, which originated in Japan. Kaizen is a philosophy that
emphasizes making small, incremental improvements in all aspects of life or
work. It is based on the belief that even the smallest positive change can have a
significant impact over time.
 For example, a manufacturing company may adopt the philosophy of continuous
improvement to enhance their production processes. They may implement
regular review sessions where employees at all levels gather to discuss potential
improvements. During these sessions, employees may identify bottlenecks,
suggest changes to the layout of the production line, or propose new ways to
reduce defects or errors.
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