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Lecture notes

Quality Management

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A look at what is quality, how quality is measured and the various standards including: EFQM, ISO 9000 and benchmarking.

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Quality Management

Definition: Quality is a measure of excellence or the extent to which something is fit for its purpose. In its
narrowest sense, quality is simply a measure of how free a product is from defects or fault.

It is the degree to which a good or service fulfils its requirements. Quality includes aspects such as reliability,
safety, durability, usability, after sales service and customer care. A quality product or service is one which
delights customers by fully meeting all of their needs and expectations.

How is quality measured:

 Quantity of goods returned.
 Number of customer complaints.
 Customer satisfaction – usually measured by a survey.
 Customer loyalty – evident from repeat purchases, or renewal rates.

EFQM:

Is an non-prescriptive framework based on nine criteria. It can also be used as a diagnostic tool.




 Five of these are "enablers" and four are "results". The "enabler" criteria cover what an organisation
does and how it does it. The "results" criteria cover what an organisation achieves.

 The EFQM Model provides a framework allowing organisations to determine their current “level of
excellence” and where they need to focus improvement efforts.

 Moreover, the Model helps to ensure that business decisions incorporate the needs of all
stakeholders and are aligned with the organisation’s objectives.

 The EFQM Model acts as a common reference tool helping organisations move towards Excellence .
Thus, the Model provides its users with a set of performance improvement tools in order for them to
achieve and sustain results and Excellence .

Advantages Disadvantages
It focuses the firm's attention on its quality Critics of the EFQM model argue that the system is
processes and provides a comprehensive framework costly in terms of management time and money and
on which to judge its current performance and that it offers very little in the way of actual solutions
improve its quality system. to the problems or area of concern which the self-
assessment exercise might h highlight.

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