MODULE VII

QUALITY MANAGEMENT

WHAT IS QUALITY?
In any competitive economy, continuous cost reduction and quality improvements are essential for survival. Competitiveness is measured by three parameters;
Quality, the excellence of the product or service Price Delivery

Quality is the degree of excellence at an acceptable price and control of variability at an acceptable cost Quality is fitness for purpose or use.

DIMENSIONS OF QUALITY
1. 2. 3. Performance: Primary operating characteristics Features: Secondary characteristics Reliability: Probability of a product failing within specified period of time

4.

Conformance: The degree to which product design match pre-established standards

5.

Durability: Period of use before it physically deteriorates Serviceability: Speed, competency and efficiency

6.

7.
8.

Aesthetics: How a product looks, feels, sounds, etc.

Perceived quality: consumers do not always possess complete information of the product

JOSEPH M. JURAN
Juran proposed a simple definition of quality as fitness for use Jurans Trilogy
Quality Planning Quality control Quality improvement

Jurans Categories of Quality costs

Internal failure costs

Scrap Rework Retest Downtime Yield losses Disposition

Complaint adjustment Returned material Warranty charges allowances

External failure costs

 Appraisal costs
Incoming materials inspection Inspection and test Maintaining accuracy of test equipment Materials and services consumed Evaluation of stocks Quality planning New products review Training Process control Quality data acquisition and analysis Quality reporting and improvement projects

Prevention costs

Demings 14 Principles
1. Create and publish, a statement of the gains and purposes of the organisation Learn and adopt the new philosophy Understand the purpose of inspection End the practice of awarding business on price tag alone Constantly improve the system of production and service Introduce training in the system Adopt and introduce modern method of supervision and leadership

2. 3. 4.
5. 6. 7.

Contd; 8. Drive out fear, create trust, create a climate for innovation Optimize toward the aims and purposes of the company Eliminate use of slogans, posters etc. Eliminate numerical quotas for production and work standards Remove barriers that rob people of pride of workmanship Encourage education and self-improvement for every one Take action to accomplish the transformation

9.
10. 11. 12. 13. 14.

PDCA Cycle
Plan the improvement Do implement the plan Check - How closely result meets goals

Act Use the improved process as standard practice

Deming Wheel: PDCA Cycle

ISO 9000
ISO is a nickname to International Organization for Standardization. An international standard more than 100 countries ISO is a non-governmental organization established in 1947 by International Standard Agency headquartered in Geneva. Principles are applicable to all organizations

WHAT IS ISO 9000

ISO 9000 is a written set of standard which describe and define the basic elements/clauses of the quality system needed to ensure that an organizations products/or services meet or exceed customer needs and expectations

Principles of ISO 9000

ISO 9000 is a standard for a quality system, not product. ISO 9000 is based on documentation and is premised on the following:- Document what you do; - Do what your document; - Prove it and improve it ISO 9000 emphasizes prevention.

ISO 9000 is a universal standard; the focus is on what needs to be done and not on how it is to be carried out

WHY QUALITY SYSTEM - ISO 9000

To satisfy customers through a quality product To gain self confidence we get what we planned

To achieve competitiveness in both the local and overseas markets.

As a blueprint for efforts to improve the quality system of the organization.

BENEFITS OF ISO 9000 IMPLEMENTATION For the company:-

- Well defined organization and responsibilities, i.e., minimize grey areas and possible resources wastage.
- Standardize practice and establishment of proper communication channel, i.e. maximize productivity and communication efficiency.

BENEFITS OF ISO 9000 IMPLEMENTATION For the company:-

- A greater degree of internal control.

- Ultimately, increase profitability and market share, improve competitive position. For the customer:-

- Increase satisfaction and growth in confidence.

Quality Awards and Standards

Malcolm Baldrige National Quality Award (MBNQA) The Deming Prize ISO 9000 Certification ISO 14000 Standards

MBNQA
Award named after the former Secretary of Commerce Reagan Administration Intended to reward and stimulate quality initiatives Given to no more that two companies in each of three categories; manufacturing, service, and small business Past winners; FedEx, 3M, IBM, Ritz-Carlton Typical winners have scored around 700 points

The Deming Prize

Given by the Union of Japanese Scientists and

Engineers since 1951

Named after W. Edwards Deming who worked

to improve Japanese quality after WWII

Not open to foreign companies until 1984 Florida P & L was first US company winner

Quality Circles and QITs

Organization

Quality circle
group of workers and supervisors from same area who address quality problems
Presentation
Implementation Monitoring

8-10 members Same area Supervisor/moderator

Training
Group processes Data collection Problem analysis

Solution
Problem results

Problem Identification
List alternatives Consensus Brainstorming

Problem Analysis
Cause and effect Data collection and analysis