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17/04/2015

QUALITY MANAGEMENT
(CODE: QTKD4093)

Prepared by Ngoc Liem LE
Semester 2, AY 2014-2015

Instructor’s profile







Ngoc Liem LE, MAPE
General Business Administration Major, Faculty of Business
Administration, College of Economics, Hue University
Address: 3rd Floor, Building C, 99 Ho Dac Di St, Hue City, Vietnam
Telephone: (84-54) 3 691 130; Facsimile: (84-54) 3 529 491
Website: www.fba.hce.edu.vn
E-mail:

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Credits, Prerequisite Conditions, and
Grading Policy


Credits:





Prerequisite conditions:






For regular students and students with the second degree: 3 credits;
For the others: 30 periods = 2 units
For regular students and students with the second degree: attended basic course of this majorGeneral Business Administration such as management, human resource management, financial
management, basic marketing and the like.
For the others: participated the aforementioned courses and NOT be absent from the course with
a rate of NO more 20% periods of the course.


Grading Policy:



For regular students and students with the second degree: class attendance: 10%; class
contribution: 30%, final exam: 60%.
For the others: class attendance: 0%, Final exam: 100%

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Other Rules














Customers are NOT always right.

Being FUNCTUAL.
Being HONEST and FAITHFUL, and NO PLAGIARISM
Reading the materials given by the instructor before the class starts.
You can do anything you like at the class as long as you keep QUIET and DO NOT DISTURB the others.
Even, if you don’t like studying or feel it bored or something like that at the class, please feel free to tell the
instructor and leave the class freely. The instructor ASSURES that you will NOT be discriminated.
If you have personal affairs and cannot attend the class, please feel free to do it without submitting a
permission paper to the instructor. However, please bear in mind that you are still in control of regulations of
the course.
For those who have exceptional and inevitable reasons such as sickness, accidents and injuries, and urgent
circumstances (i.e. funeral and the like). Similarly, please feel free to do it without submitting a permission
paper to the instructor. Nonetheless, if you don’t want your subgrade of class attendance deducted, YOU
MUST DEMONSTRATE the state you were in before.
Please DO NOT EAT, SMOKE and KEEP YOUR PHONE SILENTLY at the class.
Questions are exhibited at the class or through appointment, or via e-mail. The other means unaccepted.
After all, thank you very much for your understanding and kind corporation.

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Textbooks and Preferences














John S. Oakland (2004), 3rd_JOHN S. OAKLAND ON QUALITY MANAGEMENT
John S. Oakland (2008), 6th_STATISTICAL PROCESS CONTROL
ISO 9000 (2005)_QUALITY MANAEMENT SYSTEMS- Fundamentals and Vocabulary
ISO 9001 (2008)_QUALITY MANAGEMENT SYSTEMS- Requirements
ISO 19011 (2002)_GUIDELINES FOR QUALITY AND (OR) ENVIRONMENTAL MANAGEMENT SYSTEMS
AUDITING
David Hoyle (2007), 1st_QUALITY MANAGEMENT ESSENTIALS
P. B. Crosby (1979)_QUALITY IS FREE
W. Edwards Deming (2000)_OUT OF THE CRISIS
Gopal K Kanji et al. (1996)_100 METHODS FOR TOTAL QUALITY MANAGEMENT
Jay Kandampully et al. (2001) 1st Ed_SERIVCE QUALITY in HOSPITALITY, TOURISM, and LEISURE
K. Douglas Hoffman et al. (2011), 4th Ed_SERVICES MARKETING- Concepts, Strategies, & Cases
Others: journal papers, internet, and etcetera.

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Access the course on Moodle (E-Learning)


Please follow the below instructions for accessing the
course on Moodle (E-Learning):
1.
2.

3.

4.

Go to: />Log in with your account given by HCE administrator. If you
have not got a HCE account, you are advised to contact to the
website administer to have it as soon as possible.
Go to the course: “QUALITY MANAGEMENT_Ngoc Liem LE”
(short name: QTKD4093 (N01, N02, N03, N04)-SEMESTER 2,
2014-2015).
Insert password for the course: qtkd409322015

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Objectives
Applying and
practising well
some tools,
techniques,
methods of
quality
management in
reality.

Understanding
comprehensivel
y basic concepts
relating to
quality such as
product quality,
service quality,
work quality,
management
quality and so
forth.


Understanding
how to build
and apply some
quality
management
systems
following
standards (e.g.
ISO
9001:2008)

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Contents
CHAPTER I: SOME CONCEPTS RELATING TO QUALITY
CHAPTER II: QUALITY MANAGEMENT
CHAPTER III: SERVICE QUALITY MANAGEMENT
CHAPTER IV: TOTAL QUALITY MANAGEMENT (TQM)
CHAPTER V: QUALITY ASSESSMENT
CHAPTER VI: METHODS, TOOLS, AND TECHNIQUES OF QUALITY MANAGEMENT

CHAPTER VII: QUALITY MANAGEMENT SYSTEMS FOLLOWING STANDARDS
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CHAPTER I:

SOME CONCEPTS
RELATING TO QUALITY

Key points





Product quality
Optimal quality
Quality costs
Five erroneous assumptions on quality
through Philip Bayard Crosby (1926- 2001)
(Crosby, 1979, pp. 16- 21).

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Product Quality







What is a product?
Who are our customers?
Two views on product quality
Juran spiral of progress in quality
Features of product quality
Factors affecting product quality

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What is a product?


TCVN ISO 9000: 2007:

“Product is defined as “result of a process”” (p. 20).





Process: “set of interrelated or interacting activities
which transforms inputs into outputs” (TCVN ISO 9000:
2007, p. 20)
“Product is result of a set of interrelated or interacting
activities which transforms inputs into outputs”.
Also, “wherever the term “product” occurs, it can also
mean “service”” (TCVN ISO 9001: 2008, p.14).

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Instance
Vulcanzation Inner Tube
(Nung xăm)

Material
(NVL thô)

Compound Section
(Trộn cao su)

Extrude Inner Tube
(Ra xăm)

Packing Tube
(Đóng gói)

Warehouse Tube
(Nhập kho)

A procedure of inner tube production
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Attentive notes






A product is not meant the product of a process of
production but also maybe of a service.
Any substance or an activity created by an organization to
meet its internal and external requirements is also viewed
a product.
Every organization taking part in activities of national
economy produces and supplies its “product” to its
society.

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Attentive notes (cont’d)



Taking standpoint of quality management, products are regarded as
not only goods that we daily see in markets or at commercial stores,
shops, supermarket and the like; or services are perceived by
customers when they use the services; but results of a process.



A product maybe a “product” (result) derived from the previous
process as demonstrated from the above example.



You can only “do quality” if you can understand comprehensively
the concept of product taken by this approach of quality
management.

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Who are our customers?


They are…..






Ultimate users
Partners
Suppliers
And who else…?

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Who are our customers? (cont’d)
…“Every activity, every job is a part of a process. A flow
diagram of any process will divide the work into stages. The
stages as a whole form a process. The stages are not individual
entities, each running at maximum profit. A flow diagram,
simple or complex, is an example of a theory- an idea.
Stage 1

Stage 2

Stage 3


Work comes into any stage, changes state, and moves on into
the next stage. Any stage has a customer, the next stage.
The final stage will send product or service to the ultimate
W. E. Deming (1900-1993)
customer, he that buys the product or the service (Deming,
(Source:
2000, p. 87)
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Who are our customers? (cont’d)


According to Robert E. Cole (1987, p.16):

”It is Ishikawa himself who began to use this phrase (“make
the next process downstream your customer”) after visiting a
steel plant in 1950. When examining scratch defects on steel
sheets, he discovered strong sectionalism was preventing
employees in connecting processes from cooperating to
eliminate defects. In trying to explain the need for cooperation,
he developed the idea “You must image that the next
process is the customer” (JUSE, 1983, p.76)”.
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Instance
Material
(NVL thô)

Cut Nylon Section
(Cắt vải)
Vulcanize Section
(Nung)

Compound Section
(Trộn cao su)

Assembly Section
(Dán bố)
Beadwire Section
(Niền)

Nylon Topping Section
(Ra vải)


Extrude Section
(Ra cao su)

A procedure of outer tube production
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Packing Section
(Đóng gói)
Warehouse Tube
(Nhập kho)

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Attentive notes
Customers are not only people those who buy or expend our
products or services, or partners, suppliers and so forth in the
market but also the people who are working in the next stage
continuing the work of the previous stage.
 Thereby, every member in a organization is both “supplier”
and “customer” of the others in the organization.
 TREAT THE PERSON WHO IS WORKING IN THE NEXT
STAGE AS YOUR CUSTOMER.


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Two types of customers

Internal customers

External customers

A product viewed as “quality” not only meet external customers’
requirements but meet internal customers’ requirements.
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Two views on product quality
1. Approach from self-product


“Chất lượng là một hệ thống đặc trưng nội




“Quality means goodness, or luxury, or
shininess, or weight. The word “quality” is
used to signify the relative worth of things
in such phrases as “good quality”..” (Phillip
B. Crosby, 1979, p.17).

tại của sản phẩm được xác định bằng
những thông số có thể đo được hoặc so
sánh được, những thông số này lấy ngay
trong sản phẩm đó hoặc giá trị của nó”.

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Is this product in quality?

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Two views on product quality (cont’d)
2. Approach from market


Philip B. Crosby (1979): “That is precisely the reason
we must define quality as “conformance to

requirements” if we are to manage it” (p.17).




Theo ISO 8402:
“Quality: The totality of characteristics of an
entity that bear on its ability to satisfy
stated and implied needs”.
TCVN ISO 9000 : 2007:

Quality: “Degree to which a set of inherent
characteristics fulfils requirements” (p. 21).
Requirement: “Need or expectation that is stated,
generally implied or obligatory” (p.21).

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(Source: />philipcrosby/PhilipCrosby.jpg)

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What is a quality work?
Based on
the outputs
gained from
the work?

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What is a quality work? (cont’d)

“Quality: Do the right
thing, and do things
right all the time.”
(Yang & EI-Haik, 2008, p. xv)


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What is a quality work? (cont’d)

Nhung hon da cuoi.avi

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What is a quality work? (cont’d)

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Juran spiral of progress in quality

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Juran spiral of progress in quality (cont’d)


Market research & Design phase: Role?
Case study: The Y2K and role of design stage on quality



Production phase: Role?



Delivery and Usage phase: Role?


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Case study

The Y2K and role of design stage on quality


Three points:
Storing dates of years with two digits
 Calculating leap years, and
 Specifically implications toward dates.


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Storing dates of years with two digits




Some store or control softwares of dates only used two
digits so as to indicate the years of the 20th century.
Calculations based on these dates did not perform exactly
because they did not regard the dates of the 21th century
are those ones greater the dates of the 20th century. For
instance, 2000 – 1999 = 1, but 00 – 99 = - 99. As a
result, accounting applications or softwares could view all
receivables obsolete because no customer paid in the
year of 98.
Routine for calculating years with two digits supposed
that the two digits denoted the 19th century. This routine
was seen necessary in the first days of commercial
computers as costs for storing and memory are quite
dear.

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Calculating leap years


Leap years are calculated by following some simple principles.
Nevertheless, some systems and applications did not view the year
of 2000 a leap year. This, leaded to the all dates behind the day of
February 29, 2000 would be wrongly made one day up.



Principles for calculating leap years?
“A year, occurring once every four years, which has 366 days including 29
February as an intercalary day.” (Oxford Dictionaries,
/>).
 “In the Gregorian calendar: any year divisible by 4 except centenary years not
divisible by 400.” (Concsise English Dictionary).


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Specifically implications toward dates.





Troubles often happened for old custom codes. In order to write
custom codes more efficient but still expend less volume of
memory. Date fields sometimes were used in particular functions.
For some applications, using in particular functions meant “store
these data forever” or “automatically ease these data after
30 days”, or “filter these data on the top of report” and so
forth. At some organizations, these date codes could be used in
particularly different ways. These were key reasons why there was
no way that enabled to determine all the ways of usage or wrong
usage of data of dates.

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Why the Y2K?
Three causes




Cause 1:…
 Cause 2:…
 Cause 3:…


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What did we have to pay for this
non-quality?


The impact of Y2K is extremely difficult
to evaluate. Considering two the
following situations may happen:
Completely Broken System (CBS)
It was comprehensively easy to identify
the problem because CBS was easy to
see, and, therefore it was also easy to be
found. In this case, we could plan the
solutions against the problem as well as
urgent circumstances.

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Examples of CBS
Command function could not permit to input any commands
after the year of 2000 if the error treatment function of the
application viewed the number 00 ineligible. For this case, it
was straightforwardly obvious that the application was broken
as it stopped working.
 Internal systems accompanied accessories such as air
condition remote could break down if date function was put in
maintenance systems. It was very easy to see if this device
was completely broken down because no cold air was
generated.


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What did we have to pay for this

non-quality?
Partly broken system (PBS)
Hỏng hóc một phần là dạng khó nhận
thấy hơn và sẽ gây ra nhiều hậu quả
khó lường hơn so với dạng hỏng hoàn
toàn. Nếu một hệ thống chỉ bị hỏng
một phần, người sử dụng có thể
không nhận ra điều đó. Trong trường
hợp các giao dịch tài chính, một tính
toán sai có thể đưa ra các kết quả lại
được coi là chính xác. Kết quả của sự
hỏng hóc một phần sẽ là việc mất
niềm tin vào khả năng chuyển giao
thông tin tin cậy, chính xác của môi
trường máy tính.
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Examples of PBS





Các khoản thanh toán nợ có thể đưa ra một kết quả sai. Nếu ứng
dụng đó ngừng hoạt động thì rất dễ thấy là có trục trặc. Nhưng nếu
ứng dụng đó vẫn cho ra kết quả thì người vận hành ứng dụng đó
phải có trách nhiệm nhận ra lỗi trong tính toán.
Điện thoại có thể bị hỏng một phần trong một số tập con của các
chức năng. Có thể ấn gọi số vẫn nghe thấy và nó có vẻ như đang
hoạt động bình thường. Trục trặc có thể xảy ra với các bản báo cáo
về thời gian của các cuộc gọi. Đối với các công ty sử dụng thông
tin này để tính tiền và/ hoặc theo dõi, các bản báo cáo sai có thể sẽ
không phát hiện được ngay và các hệ thống tính tiền tự động sẽ
cho ra các hoá đơn tính tiền không đúng.
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Features of product quality
Quality

Safety

Price

Meeting customer’s requirements

Service


Time

The factors of total quality
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Features of product quality (cont’d)

Performance,
Perfectibility

Price

Quy tắc 3P

Punctuality

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Features of product quality (cont’d)

Quy tắc
QCDSS

Cost
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Factors affecting product quality


Factors outside organizations
Need of economy
 Technology
 Law system



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Factors affecting product quality (cont’d)


Factors inside organizations








Materials
Machines
Men
Methods
Information
Environment
…etc.

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Men
Quy tắc
4M

Methods

Machines

Material
s

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Optimal quality

“Biểu thị khả năng thỏa mãn toàn diện nhu cầu của
thị trường trong những điều kiện xác định với chi phí
thỏa mãn nhu cầu thấp nhất”.

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Optimal quality (cont’d)


Of which:







a: price curve.
b: cost curve.

Cost

Principle for determining optimal
quality: (a – b) or (a/ b)
- From Q1 => Q2:
- From Q2 => Q3:
Meanings of studying optimal
quality:
- …..
- …..

b


B2

B1
A1
Q1

Q2

a

A2
Q3 Quality

Sacata Siro figure
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Quality costs




Quality costs- a definition
Categories of quality costs

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Quality costs- a definition
“Chi phí chất lượng là
toàn bộ chi phí nảy sinh
để tin chắc và đảm bảo
chất lượng thỏa mãn
cũng như những thiệt
hại nảy sinh khi chất
lượng không thỏa mãn.”
TCVN ISO 8402 : 1999
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Categories of quality costs




Prevention costs
Appraisal costs
Failure costs



Internal failure costs
External failure costs

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Preventions costsDefinition
“These are costs incurred to keep
failure and appraisal costs to a
minimum.”
(Juran & Godfrey, 2000; p. 8.7)

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×