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Q.

1 Write short notes on the following: Integrating Quality into Strategic Management Six Sigma as a quality framework Reliability Types Jurans Trilogy

1. Integrating Quality into Strategic Management: The foundation of quality management is an overriding focus on customer satisfaction. Deming states in his book Out of Crises, The consumer is the most important part of the production line. Quality should be aimed at the needs of the consumer, present and future." He explains that through research, we can comprehend the customer requirements and needs and advance to feed their reactions back into the design of service. 2. Six Sigma as a quality framework Six Sigma is now according to many business development and quality improvement experts, the most popular management methodology in history. Six Sigma is certainly a very big industry in its own right, and Six Sigma is now an enormous 'brand' in the world of corporate development. Six Sigma began in 1986 as a statistically-based method to reduce variation in electronic manufacturing processes in Motorola Inc in the USA. Today, twenty-something years on, Six Sigma is used as an allencompassing business performance methodology, all over the world, in organizations as diverse as local government departments, prisons, hospitals, the armed forces, banks, and multi-nationals corporations. While Six Sigma implementation continues apace in many of the world's largest corporations, many organizations and suppliers in the consulting and training communities have also seized on the Six Sigma concept, to package and provide all sorts of Six Sigma 'branded' training products and consultancy and services. Six Sigma has also spawned manay and various business books on the subject. Six Sigma, it might seem, is taking over the world.

3. Reliability Types Inter-Rater or Inter-Observer Reliability Used to assess the degree to which different raters/observers give consistent estimates of the same phenomenon. Test-Retest Reliability Used to assess the consistency of a measure from one time to another. Parallel-Forms Reliability Used to assess the consistency of the results of two tests constructed in the same way from the same content domain. Internal Consistency Reliability Used to assess the consistency of results across items within a test. 4. Jurans Trilogy Juran's Trilogy is possibly the most simple, complete, and pure representation of managing for Quality ever devised. The trilogy exemplifies the essence of Quality. It completely meets its objective in the most efficient and effective manner possible.

Quality Planning The process for designing products, services, and processes to meet new breakthrough goals; Quality Control The process for meeting goals during operations; Quality Improvement The process for creating breakthroughs to unprecedented levels of performance.

Q.2 Elucidate different types of Quality Management Systems (QMS). What are the benefits of implementing a QMS? Ans: Types of Quality Management Systems: A quality management system (QMS) is a collection of business processes focused on achieving your quality policy and quality objectives i.e. what your customer wants and needs.[ It is expressed as the organizational structure, policies, procedures, processes and resources needed to implement quality management. Early systems emphasized predictable outcomes of an industrial product production line, using simple statistics and random sampling. By the 20th century, labour inputs were typically the most costly inputs in most industrialized societies, so focus shifted to team cooperation and dynamics, especially the early signalling of problems via a continuous improvement cycle. In the 21st century, QMS has tended to converge with sustainability and transparency initiatives, as both investor and customer satisfaction and perceived quality is increasingly tied to these factors. There are different types of QMS; industry and product specific, for examples, TL 9000 for telecommunications, QS 9000 for the automotive industry and API-Q1 (American Petroleum Institute), specifically for the petroleum, petrochemical and natural gas industry. Another industryspecific QMS is ASME NQA-l, (which is specific to the nuclear industry). Benefits of Quality Management Systems The trend of implementing a quality management procedure is gaining popularity in all organizations, since there are tremendous benefits in using a quality management system. Some of the benefits are explained below: Achievement Of Project Scope This system facilitates a business, to attain the objectives that have been defined in the organization strategy. It ensures the achievement of stability and reliability regarding the techniques, equipment, and resources being used in a project. All project activities are integrated and aligned towards the achievement of quality products. These efforts commence by identifying the customer needs and expectations, and culminate in their contentment.

Customer Satisfaction A fully recognized and implemented quality management system, will ensure that the customer is satisfied by meeting their requirements, and will thus enhance the confidence of the customer. Attaining customer satisfaction is a great achievement for the organization, that will assist in capturing the market, or increase the market share. Consistent Products Implementing a quality management system can assist to attain more consistency in the project activities, and enhance the effectiveness by improvement in the resources and time usage. Implementation Of Best Practices & Process Improvement The discipline of quality includes the efforts directed towards the improvement of processes, being used to maintain consistency, reduce expenditures, and ensure production within the schedule baseline. The systems, products, and processes are continually improved by the implementation of best practices, like modern manufacture techniques, use of primavera project management software including Primavera P6, and the use of proper quality control techniques. Increase In Production Improved production is achieved due to proper evaluation techniques being applied, and better training of the employees. A strict process control is directed towards performance consistency, and less scrap. Supervisors experience less late night problematic phone calls, since the employees are trained on troubleshooting. Less Rework Quality is measured continuously due to the appropriate procedures that ensure immediate corrective actions on occurrence of defects. Since efforts are directed towards quality products, rework due to warranty claims is minimized. This reduction increases customer confidence, and increase in business. Increased Financial Performance Investment in quality management systems are rewarded by improved financial performance. UCLA conducted a research on the companies being traded on the New York Stock Exchange, and observed that the financial performance of the companies that obtained ISO 9000 Quality

Standard certification was improved significantly, compared to the other companies. Increase In Market Share Other quality management system benefits include proper management of project risks and costs, and identification of development prospects. This results in an increase in market share and reputation, and capability to react to industry opportunities. Improvement In Internal Communications The quality management system emphasizes the issues related to operations management. This encourages frequent interaction between project departments or groups, and promotes harmony. All these factors contribute to improved quality, and customer satisfaction.

Q.3 ABC is an organisation. The organisation is at the stage of lack of Quality products and services to meet the customer requirements. The organisation decides to develop a strategy and hire people to enhance the quality of its products and services. Being the quality head of the organisation what are the approaches you will consider for initial cost data collection.

Ans : Data collection is a term used to describe a process of gathering (or obtaining) specific information about a phenomenon or an activity. Once collected, data can be stored in records or data- bases, analysed and used for purposes of monitoring or evaluation. The quality of data collected has a direct impact upon the quality of analysis that can be performed using the data, which ultimately impacts upon the quality of decisions that can be made. Conventional accounts: For examples are appraisal activities conducted by an Inspection department and assure operating cost to counter to customer problems. Analysis of ingredients of conventional accounts: For example, suppose a report called customer returns tracks the cost of all goods returned. Some of the goods are returned because they are imperfect. Costs associated with these are categorised as cost of poor quality.

Q.4 Write short notes on the following: (Quality standards, Significance of Quality Control, Automated manufacturing, Applications of Design of Experiments (DOE) to product and process design) (2.5 marks each) Quality Standards The International Organisation for Standardisation (ISO) developed the Quality Management System (QMS) standards in 1987. They were the ISO 9000:1987 series of standards combining ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987. These standards were applicable in different types of industries, based on the type of activity undertaken: planning, production or service delivery. The standards are revised every few years by the International Organisation for Standardisation. Significance of Quality Control Quality management is centered around the management and control of producing fantastic products, and a business environment that will facilitate their production. Customer satisfaction is a very important part of quality control and this is an aspect of business that should definitely receive due consideration. Quality management is used in all areas of a company from the products that are manufactured to the customer services provided by the employees. Team members often work on projects designed to improve the overall companys value. It is an ongoing process, and is important to the success of a company. It can be implemented on several different levels. Applications of Design of Experiments (DOE) to product and process design In general usage, design of experiments (DOE) or experimental design is the design of any information-gathering exercises where variation is present, whether under the full control of the experimenter or not. However, in statistics, these terms are usually used for controlled experiments. Formal planned experimentation is often used in evaluating physical objects, chemical formulations, structures, components, and materials. Other types of study, and their design, are discussed in the articles on computer experiments, opinion polls and statistical surveys (which are types of observational study), natural experiments and quasiexperiments

Q.5 This is a case study about an airline. It states that how at the initial stages the airline was not functioning properly and could not achieve customer satisfaction but however after the implementation of Total Quality Management (TQM), the company prospered. Bryan air airlines started in year 1988 with only 67 employees and with one 18 seater turboprop plane from the south of east of Chelsea to London-Gatwick which carried 5000 passengers on one route (Harrison, 2002). In 1990-1991, the company had 700,000 passengers. However, in spite of the raise of passengers, the company could not manage cost that the company had lost its money during the expansion of the business. The management decided to bring a brand new management team which suggested a re-launch of the airlines as a low fares or no frills airline, closely modelling the Southwest Airlines model in the U.S. In addition, there was another problem related to quality service. Since it was a low fares or no frills airline it could not cater to the customer needs. So the company decided to use TQM and a strategic plan where both the internal and external customers will be given importance and all the main focus will be customer satisfaction. Hence the strategic option that was used by the company for satisfying both internal and external customers and marketing environment was used to attain total quality management. Hence by implementing TQM and strategic planning the company could satisfy both the clients and the customer. Now Bryan air is one of the leading airlines in the world. Identify the steps taken by the airline company which made them one of the leading airlines in the world. Identification of the quality initiatives with evidence from the case, Analysis of these initiatives along the benefits, Conclusion

The quality initiative taken by the airline was the use of total quality management system. As it is clear from the above case study that the initial stages the airline was not functioning properly and could not achieve customer satisfaction but however after the implementation of Total Quality Management (TQM), the company prospered. Bryan air airlines started in year 1988 with only 67 employees and with one 18 seater turboprop plane from the south of east of Chelsea to LondonGatwick which carried 5000 passengers. An Identification of the quality

initiatives with evidence from the case: This is a case study about an airline. It states that how at the initial stages the airline was not functioning properly and could not achieve customer satisfaction but however after the implementation of Total Quality Management (TQM), the company prospered. Bryan air airlines started in year 1988 with only 67 employees and with one 18 seater turboprop plane from the south of east of Chelsea to London-Gatwick which carried 5000 passengers on one route (Harrison, 2002). In 1990-1991, the company had 700,000 passengers. However, in spite of the raise of passengers, the company could not manage cost that the company had lost its money during the expansion of the business. The management decided to bring a brand new management team which suggested a re-launch of the airlines as a low fares or no frills airline, closely modelling the Southwest Airlines model

Q.6 Summarise why corporate culture is important. Corporate Culture: Corporate culture is the personality of the organisation, the shared beliefs, values and behaviours of the group and it is symbolic, holistic, unifying, stable and difficult to change. We should never forget that the corporate culture is not the ethics, vision and mission in the corporate marketing materials. It is expressed in the dayto- day practice, communication and belief. In contrast, corporate culture is the method by which things get done in an organisation. It is the one which drives action in the organization. It s the behavior of humans who are part of an organization and the meanings that the people attach to their actions. Culture includes the organization values, visions, norms, working language, systems, symbols, beliefs and habits. It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving, and even thinking and feeling. Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. Research suggests that numerous outcomes have been associated either directly or indirectly with organizational culture. A healthy and robust organizational culture may provide various benefits, including the following: Competitive edge derived from innovation and customer service Consistent, efficient employee performance Team cohesiveness High employee morale Strong company alignment towards goal achievement Although little empirical research exists to support the link between organizational culture and organizational performance, there is little doubt among experts that this relationship exists. Organizational culture can be a factor in the survival or failure of an organization - although this is difficult to prove considering the necessary longitudinal analyses are hardly feasible. The sustained superior performance of firms like IBM, Hewlett-Packard, Procter & Gamble, and McDonald's may be, at least partly, a reflection of their organizational cultures.

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