You are on page 1of 24



I Shaikh Riyaz Abdul Salam, the student of Nirmala Memorial
Foundation College of Commerce and Science, studying in F.Y.B.M.S. A-48,
had a great pleasure in presenting my efforts of developing my complete
project in a very satisfactory and appreciable manner.
My efforts have been a success due to the co-operation of
the college librarian and my family members.
I owe to my professor and the project guide Poonam
Kakkad, debt of gratitude, expert guidance and invaluable co-operation
without whose help this project could not have been possible.

Quality management
Quality is defined as Measure of excellence or state of being
free from defects, deficiencies, and significant variations. ISO 8402-1986 standard
defines quality as "the totality of features and characteristics of a product or service
that bears its ability to satisfy stated or implied needs."
Quality management can be considered to have three main components: quality
control, quality assurance and quality improvement. Quality management is
focused not only on product quality, but also the means to achieve it. Quality
management therefore uses quality assurance and control of processes as well as
products to achieve more consistent quality. Quality management is a recent
phenomenon. Advanced civilizations that supported the arts and crafts allowed
clients to choose goods meeting higher quality standards than normal goods. In
societies where art and craft were valued, one of the responsibilities of a master
craftsman was to lead their studio, train and supervise the work of their craftsmen
and apprentices. The master craftsman set standards, reviewed the work of others
and ordered rework and revision as necessary. One of the limitations of the craft
approach was that relatively few goods could be produced; on the other hand an
advantage was that each item produced could be individually shaped to suit the
client. This craft based approach to quality and the practices used were major
inputs when quality management was created as a management science.

Quality management evolved from many different management practices and
improvement processes. Quality management is not specific to managing people,
but rather is related to improving the quality of goods and services that are
produced in order to satisfy customer demands. Quality management permeates the
entire organization as it is being implemented.
Quality Management has its roots in the quality movement that has made Japan
such a strong force in the world economy. The Japanese philosophy of quality
initially emphasized product and performance and only later shifted concern to
customer satisfaction.
The quality improvement movement began in both the United States and Japan
before World War II. Throughout the war, Americans continued to improve
concepts related to manufacturing productivity. After the war, the Japanese pursued
the idea of quality improvement. It was W. Edwards Deming, an American, who
helped the Japanese focus on their fixation with quality. Rather than trying to
inspect the quality of products and services after they have been completed, Quality
management instills a philosophy of doing the job correctly the first time. It all
sounds simple, but implementing the process requires an organizational culture and
climate that are often alien and intimidating. Changes that must occur in the
organization are so significant that it takes time and patience to complete the
process. Just as the process does not occur overnight, the results may not be seen
for a long period of time. Some experts say that it takes up to ten years to fully
realize the results of implementing quality management. Quality management, also
called total quality management(TQM), evolved from many different management
practices and improvement processes. Quality management is not specific to
managing people, but rather is related to improving the quality of goods and
services that are produced in order to satisfy customer demands. Quality
management permeates the entire organization as it is being implemented.

TQM has its roots in the quality movement that has made Japan such a strong force
in the world economy. The Japanese philosophy of quality initially emphasized
product and performance and only later shifted concern to customer satisfaction.
The quality improvement movement began in both the United States and Japan
before World War II. Throughout the war, Americans continued to improve
concepts related to manufacturing productivity. After the war, the Japanese pursued
the idea of quality improvement. It was W. Edwards Deming, an American, who
helped the Japanese focus on their fixation with quality.
Rather than trying to inspect the quality of products and services after they have
been completed, TQM instills a philosophy of doing the job correctly the first time.
It all sounds simple, but implementing the process requires an organizational
culture and climate that are often alien and intimidating. Changes that must occur
in the organization are so significant that it takes time and patience to complete the
process. Just as the process does not occur overnight, the results may not be seen
for a long period of time. Some experts say that it takes up to ten years to fully
realize the results of implementing quality management.

Quality Management Evolution
During the industrial revolution, the importance of craftsmen was diminished as
mass production and repetitive work practices were instituted. The aim was to
produce large numbers of the same goods. The first proponent in the US for this

approach was Eli Whitney who proposed (interchangeable) parts manufacture for
muskets, hence producing the identical components and creating a musket
assembly line. The next step forward was promoted by several people including
Frederick Winslow Taylor a mechanical engineer who sought to improve industrial
efficiency. He is sometimes called "the father of scientific management." He was
one of the intellectual leaders of the Efficiency Movement and part of his approach
laid a further foundation for quality management, including aspects like
standardization and adopting improved practices. Henry Ford also was important in
bringing process and quality management practices into operation in his assembly
lines. In Germany, Karl Friedrich Benz, often called the inventor of the motor car,
was pursuing similar assembly and production practices, although real mass
production was properly initiated in Volkswagen after world war two. From this
period onwards, North American companies focused predominantly upon
production against lower cost with increased efficiency.

r A. Shewhart made a major step in the evolution towards quality management by
creating a method for quality control for production, using statistical methods, first
proposed in 1924. This became the foundation for his ongoing work on statistical
quality control. W. Edwards Deming later applied statistical process control
methods in the United States during World War II, thereby successfully improving
quality in the manufacture of munitions and other strategically important products.
Quality leadership from a national perspective has changed over the past five to six
decades. After the Second World War, Japan decided to make quality improvement
a national imperative as part of rebuilding their economy, and sought the help of
Shewhart, Deming and Juran, amongst others. W. Edwards Deming championed
Shewhart's ideas in Japan from 1950 onwards. He is probably best known for his
management philosophy establishing quality, productivity, and competitive
position. He has formulated 14 points of attention for managers, which are a high
level abstraction of many of his deep insights. They should be interpreted by
learning and understanding the deeper insights and include:
-Break down barriers between departments

-Management should learn their responsibilities, and take on leadership
-Improve constantly
-Institute a programme of education and self-improvement
In the 1950s and 1960s, Japanese goods were synonymous with cheapness and low
quality, but over time their quality initiatives began to be successful, with Japan
achieving very high levels of quality in products from the 1970s onward. For
example, Japanese cars regularly top the J.D. Power customer satisfaction ratings.
In the 1980s Deming was asked by Ford Motor Company to start a quality initiative
after they realized that they were falling behind Japanese manufacturers. A number
of highly successful quality initiatives have been invented by the Japanese example
Taguchi, QFD, Toyota Production System. Many of the methods not only provide
techniques but also have associated quality culture (i.e. people factors). These
methods are now adopted by the same western countries that decades earlier
derided Japanese methods.

Customers recognize that quality is an important attribute in products and services.
Suppliers recognize that quality can be an important differentiator between their
own offerings and those of competitors (quality differentiation is also called the
quality gap). In the past two decades this quality gap has been greatly reduced
between competitive products and services. This is partly due to the contracting
(also called outsourcing) of manufacture to countries like India and China, as well
internationalization of trade and competition. These countries amongst many others
have raised their own standards of quality in order to meet International standards
and customer demands. The ISO 9000 series of standards are probably the best
known International standards for quality management.
There are a huge number of books available on quality. In recent times some
themes have become more significant including quality culture, the importance of
knowledge management, and the role of leadership in promoting and achieving
high quality. Disciplines like systems thinking are bringing more holistic

approaches to quality so that people, process and products are considered together
rather than independent factors in quality management.
The influence of quality thinking has spread to non-traditional applications outside
of walls of manufacturing, extending into service sectors and into areas such as
sales, marketing and customer service.

The Process
There are several steps that must be taken in the process of shifting to quality
management in an organization:
1. Provide a Quality Management(QM) environment: A QM environment is one
in which the management-driven culture disappears and a participative culture
takes its place. The basic tenets of QM are that employees must be involved and
that there must be teamwork. Managers must be willing to involve workers in the
decision-making process. Workers who function as a team have much more to offer
collectively than do individual workers. Pooled resources are more valuable than
just one person's contribution.
2. Modify reward system: Reward systems need to be overhauled so as to
recognize and encourage teamwork and innovation. The team, not the individual, is
the foundation for TQM companies. If a company continues to use traditional
compensation plans that create competition between workers, the team concept
cannot be implemented. Traditional pay plans are often based on seniority, not on
quality and performance. With QM, pay systems focus on team incentives. Each
person is paid based on the team's performance. If one person on the team doesn't
perform at the level expected, the team members will normally handle the situation.
In some cases, payment is based on the performance of the entire company, which
requires an even greater team effort.

3. Prepare workers for TQM: Workers must constantly be trained with the tools
that are needed to upgrade the company's quality. Workers must understand the
philosophy of QM before the tools can be used effectively. Managers must be
dedicated to transforming their companies into "learning organizations" in which
workers want to upgrade their skills and take advantage of the opportunities and
incentives to do so. Companies that are successful with TQM allocate up to about 5
percent of their employees' time on training. Some of this training time might
include cross-training, that is, schooling workers in the skills to do a different job in
the organization.
4. Prepare employees to measure quality: To ensure gains in quality, the results
must be measured objectively as the company progresses toward its quality
objectives. This requires that employees be trained to use statistical process control
techniques. Without knowledgeable workers using quantitative tools, the
organization cannot achieve the intended TQM results.
5. Identify the appropriate starting place: One of the most difficult tasks in the
beginning phases of implementing QM is to determine where to start. One
approach to this beginning is to assume that 80 percent of all the company's
problems stem from 20 percent of the company's processes (Pareto's Law). By
identifying the problematic processes that fall in this 20 percent category, one can
begin to focus on what needs attention first. Focusing attention on these problems
first will return bigger payoffs and build momentum for the future.
6. Share information with everyone: If a team approach is to be used and if
employees are expected to be involved in the decision-making process, it is
imperative that information be shared with everyone. The decision-making process
requires that workers be fully informed.

7. Include quality as an element of design: From beginning to end, customer
satisfaction should be the focus of the quality management system. That means that
the goal of customer satisfaction must be included in the planning processes and
then maintained day in and day out.
8. Make error prevention the norm: One approach to producing quality products
is to have a group of inspectors who will find the defective items and get rid of
them. This is not the QM approach. With QM, the approach is continuous
improvement of quality to assure that there are no products that are defective. The
quality is built into the manufacturing process, and workers are continually
improving products and processes. This approach is more cost-effective for the
organization because it eliminates the waste of materials and workers' time.
9. Encourage cooperation and teamwork: If mistakes are made, it is the fault of a
team of workers, not just one worker. In many organizations that do not use TQM,
managers are often on the hunt for someone to blame for problems that are found.
This type of environment creates unhealthy stress and discourages innovative
thought and practices by workers. The combination of a team approach and QM
means seeking to improve the system when problems arise.
10. Make continuous improvement the goal: Processes and products should
continually be improved. There is no end to the improvement process. This is true
for even the best of the best companies. Total quality management never ends.

W. Edwards Deming created fourteen points for management.
1. Create constancy of purpose toward improvement of product and service, with
the aim to become competitive, to stay in business, and to provide jobs.
2. Adopt a new philosophy. We are in a new economic age. Western management
must awaken to the challenge, must learn their responsibilities, and must take on
leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for
inspection on a mass basis by building quality into the product in the first place.
4. End the practice of awarding business on the basis of the price tag. Instead,
minimize total cost. Move toward a single supplier for any one item, based on a
long-term relationship of loyalty and trust.
5. Improve constantly and forever the system of production and service, in order to
improve quality and productivity, and thus constantly decrease costs.
6. Institute training on the job.
7. Institute leadership. The aim of supervision should be to help people, machines,
and gadgets to do a better job. Supervision of management is in need of overhaul,
as is supervision of production workers.
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments. People in research, design, sales,
and production must work as a team, in order to foresee problems in production and
in use that may be encountered with the product or service.
10. Eliminate slogans, exhortations, and targets for the work force asking for zero
defects and new levels of productivity. Such exhortations only create adversarial
relationships, since the bulk of the causes of low quality and low productivity
belong to the system and thus lie beyond the power of the work force. Eliminate
work standards (quotas) on the factory floor, substituting leadership. Eliminate
management by objective, by numbers, and by numeric goals, also substituting
11. Remove barriers that rob hourly workers of their right to pride of workmanship.
The goals of supervisors must be changed from sheer numbers to quality.
12. Remove barriers that rob people in management and in engineering of their
right to pride of workmanship. This means abolishment of the annual or merit
rating and of management by objective.
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation. The
transformation is everybody's job.
It is readily apparent that the process of implementing a quality management
system in an organization is closely aligned with the thinking of Deming

The importance of quality is emphasized with the awards that are presented to
companies that achieve high standards of quality. The Malcolm Baldridge National
Quality Award was one of the first given. The 1991 award application identified
several categories that companies must address to receive the award. It must be
noted that very few awards are presented. Companies are rated on leadership,
information and analysis, strategic quality planning, human resources utilization,
quality assurance of products and services, quality results, and customer
satisfaction. It is a very prestigious honor for a company to be recognized with this
Other awards and certifications are also presented. However, they constantly
change and new ones are added regularly, so they will not be discussed here.
Quality management has become an important philosophy in businesses around the
world, and this approach to building better products and services will continue.

Quality improvement
There are many methods for quality improvement. These cover product
improvement, process improvement and people based improvement. In the

following list are methods of quality management and techniques that incorporate
and drive quality improvement—
1. ISO 9004:2000 — guidelines for performance improvement.
2. ISO 15504-4: 2005 — information technology — process assessment — Part 4:
Guidance on use for process improvement and process capability determination.
3. QFD — quality function deployment, also known as the house of quality
4. Kaizen — Japanese for change for the better; the common English term is
continuous improvement.
5. Zero Defect Program — created by NEC Corporation of Japan, based upon
statistical process control and one of the inputs for the inventors of Six Sigma.
6. Six Sigma — 6σ, Six Sigma combines established methods such as statistical
process control, design of experiments and FMEA in an overall framework.

7. PDCA — plan, do, check, act cycle for quality control purposes. (Six Sigma's
DMAIC method (define, measure, analyze, improve, control) may be viewed as a
particular implementation of this.)
8. Quality circle — a group (people oriented) approach to improvement.
9. Taguchi methods — statistical oriented methods including quality robustness,
quality loss function, and target specifications.
10. The Toyota Production System — reworked in the west into lean
11. Kansei Engineering — an approach that focuses on capturing customer
emotional feedback about products to drive improvement.
12. TQM — total quality management is a management strategy aimed at
embedding awareness of quality in all organizational processes. First promoted in
Japan with the Deming prize which was adopted and adapted in USA as the
Malcolm Baldrige National Quality Award and in Europe as the European
Foundation for Quality Management award (each with their own variations).
13. TRIZ — meaning "theory of inventive problem solving"
14. BPR — business process reengineering, a management approach aiming at
'clean slate' improvements (That is, ignoring existing practices).

Quality Improvement: Management Controllable Defects
Sporadic and chronic quality problems
Sporadic problem Chronic problem
1) A sporadic problem is a sudden adverse 1) A chronic problem is a longstanding
change in the status quo, requiring remedy adverse situation, requiring remedy through
through restoring the status quo. changing the status quo
E.g. Changing the worn cutting tool E.g. large amount of scrap is observed
which affect the costs

2) Sporadic problem use (quality)control 2) Chronic problems use thebreakthrough
sequence to solve the problem sequence to solve the problems
3) Sporadic problems are dramatic 3) Chronic problems aren’tdramatic as
e.g a customer reacts to shipment of bad they have been occurring since a long time
parts e.g. large percent of scrap hasbeen typical
since 5 years

4) Chronic problems do not receive
4) Sporadic problems receive immediate immediate attention like scrap amount is
attention like if a customer has received bad more can be only discovered when report
part he will immediately complaint the of last 5 years is submitted and pareto
supplier analysis is done.

5) Chronic problems are often
difficult to solve as to solve these problems
5) Sporadic problems are not difficult to the whole breakthrough sequence needs to
solve as immediate action to solve the be followed.
problem is taken

Breakthrough sequence (for chronic problems)
Step 1 : . Convince the people and prove that breakthrough is needed .Chronic
problems often require a far reaching investigation. Investigation means substantial
time and resources are required.
To convince the management
A) collect information and data in terms of quality, cost and delivery parameters.
E.g. collect dollar value of scrap.
B) data of customer complaints and decrease in sales income and decrease in
market share
The above is the data on defects and failures which is needed to show to
management to convince them that the breakthrough is needed.

Step 3: Form (organize) a team to get the knowledge needed to achieve the
improvement The Investigation of a chronic quality problem can be done
easily by organizing the steering arm and the diagnostic arm.The steering arm-
(managers) is a person or persons from various departments who give direction and
advice on the improvement program. It is the informal team the guide the projects.
They consists of the factory manager, technical manager ,foundry manager,
machine shop manager, quality manager, and an outside consultant. The steering
arm does not have technical knowledge The diagnostic arm:(supervisors and
engineers) is a person or persons brought together to determine the causes and not
the remedies of a problem. They consist of line supervisors, or the quality control
engineers etc. They have technical knowledge
The steering arm provides:-
a) Define the improvement program and how the program should be conducted
b) ideas on possible causes of problem.

c) Authority and permission to experiment
d) Information and advice on overcoming the “resistance to change” in
proposing the new approaches
The diagnostic arm provides:-
a) determines the causes of the problem. E.g. they have been supervising the line
and they find that material is having more friction with the machine part then they
will say that this is one of the causes of the problem.
b) chronic problem requires the investigation time which steering arm don’t have
so the diagnostic arm does it.
c) Investigation requires technical skills which the line managers don’t have and
only the line supervisors have it.
Step 4:- Conduct the analysis of the problem to determine the exact CAUSE and
REMEDY of the problem(i.e to find the solution of the problem)
Diagnosis is the process of studying the symptoms, taking and analyzing data,
conducting experiments to test theories and establishing relationships between the
causes and effects. Hence
determining the exact cause is done by-
~~ studying the symptoms surrounding the defects which tells about causes
~~ Theorizing on the causes of these symptoms
~~ Analysis and experiment to establish true causes
Remedy :- remedy can be brought by changing the technology changes in
processes, instruments, methods, etc and alas by change in standards.
Step 5:- deal with resistance to change
When a new method is introduced which will improve over work and provide us
the benefits the resistance to use this method generally doesn’t come from the
managers but comes from the workforce. The possible reasons could be that
workers might have been the best in using the old methods and also he was
appreciated in past that he is the one who uses the method and tools very nicely but
when new method is introduced the worker will take time to use it and may be
someone else would do much better than him and may be he wont get the
importance and admiration now.
Step 6:- Institute the change
It involves ~ taking permission and approval of management for instituting the
~ Installing the solution in such a way that will make the solution effective
~ installing the solution requires adequate training and evaluating the solution in

step7:- institute controls
Conducting the audits (checking) to see that the solution implemented Is working
effectively or not.
Hence there are 7 steps in breakthrough sequence to solve the chronic quality

All human beings make errors. Yet there is a concept of zero defects which says
that if the workers are motivated properly then they will make no errors or say less
There are 3 types of errors namely
1) Inadvertent errors
2) Technique errors
3) Willful errors
1) Inadvertent errors:
Inadvertent means “”not paying attention””
Inadvertent errors may be
Unintentional- The operator does not want to make errors.
· Unwitting-At the time of making an error operator has no knowledge of having
made an error. · Unpredictable-No one knows before hand just when the worker
will make an error or what type of error will be made and which one is the next
operator to make the error. Remedy to inadvertent errors –
a) Use Foolproofing- reduce the extent of dependence on human attention
b) Provide Psychological tools to human beings – like job rotation, rest
periods and also the technological tools like masks
2) Technique errors;-
These arise due to lack of a proper technique in a worker. Technique like skill,
knowledge etc. which is needed to avoid making an error.
Technique errors may be
· Unintentional:- worker wants to do good work and not bad work but lacks
· Unwitting:- welder may not know at the time of welding that the lack of some
technique will result in future failure of the weld.
· Unavoidable by the unaided worker:-The worker lacking the technique does not
know “ what to do different from what I am doing now” so the error can go on and
Remedy to technique errors is as follows
1) train the workers and give them the proper knowledge of the method and the
2) Change the technology so that the errors due to improper use of technology is
3) Foolproof few operations or say prohibit some technique which is damaging the
3) Willful errors:-
willful errors are those types of errors which workers know they are making and
which they (Usually) intend to keep on making.
Willful errors are: · Witting- at the time the error is made the worker knows that an
error has been made
· Intentional;- the error is the result of a deliberate intention by the worker to
commit an error.
· Consistent;- The workers who cause willful errors usually do so on an continuing
basis. Willful errors are often taking place due to reasons like
 management when under pressure of trying to meet demand in market indirectly
puts pressure on the workers also
 if unnecessarily the worker is blamed for the work which he has not done
 no admiration and credits given to the workers who do good work

Motivation for quality
Motivation may be defined as the process of stimulating behaviour. Why motivation
for workers? Motivation for workers is not merely for the purpose of reducing willful
errors. It also includes workers to
-1) follow the control plan and meet the established standards.
2) accept training and retraining in methods for doing job so that the technique errors
are avoided.
3) Adopt new technology as it is evolved.
Motivation can also help if workers can be included to
1) Provide feedback to management on problems
2) Participate in projects for quality improvement.
Motivation for managers and improvement
All managers want good quality product. but still some managers lacking in quality
mindedness or of not being interested in quality.

Incoming material control
Incoming materials are the raw materials, standard items, subcontracted parts etc.
These include:- direct materials
Raw materials
Semi finished components
Bought out components
Subassemblies, assemblies
Indirect materials,
Once the product design, development is completed , product specifications are
prepared, so now need of incoming material arises and so order is placed after
preparing bills of materials Purchasing
means simply buying. Procurement means obtain something by care and effort.
Procurement of incoming material means to obtain material with care and effort so it is
useful and not purchased unnecessarily. Purchasing is the most imp function involved
with procurement of incoming material.
Four important functions of purchasing department related to procurement
ofincoming material are:-
1. sets policies regarding quality of purchased products
2. Identifies suitable suppliers(vendors)
3. pass relevant product specifications and product information to vendor
4.Monitor vendor performance.

Quality standards
The International Organization for Standardization (ISO) created the Quality
Management System (QMS) standards in 1987. They were the ISO 9000:1987 series
of standards comprising ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987; which
were applicable in different types of industries, based on the type of activity or
process: designing, production or service delivery.
The standards are reviewed every few years by the International Organization for
Standardization. The version in 1994 was called the ISO 9000:1994 series; comprising
of the ISO 9001:1994, 9002:1994 and 9003:1994 versions.
The last major revision was in the year 2000 and the series was called ISO 9000:2000
series. The ISO 9002 and 9003 standards were integrated into one single certifiable
standard: ISO 9001:2000. After December 2003, organizations holding ISO 9002 or
9003 standards had to complete a transition to the new standard.
ISO released a minor revision, ISO 9001:2008 on 14 October 2008. It contains no new
requirements. Many of the changes were to improve consistency in grammar,
facilitating translation of the standard into other languages for use by over 950,000
certified organisations in the 175 countries (as at Dec 2007) that use the standard.
The ISO 9004:2000 document gives guidelines for performance improvement over and
above the basic standard (ISO 9001:2000). This standard provides a measurement
framework for improved quality management, similar to and based upon the
measurement framework for process assessment.
The Quality Management System standards created by ISO are meant to certify the
processes and the system of an organization, not the product or service itself. ISO 9000
standards do not certify the quality of the product or service.
In 2005 the International Organization for Standardization released a standard, ISO
22000, meant for the food industry. This standard covers the values and principles of
ISO 9000 and the HACCP standards. It gives one single integrated standard for the
food industry and is expected to become more popular in the coming years in such
ISO has also released standards for other industries. For example Technical Standard
TS 16949 defines requirements in addition to those in ISO 9001:2008 specifically for
the automotive industry.

ISO has a number of standards that support quality management. One group describes
processes (including ISO 12207 & ISO 15288) and another describes process
assessment and improvement ISO 15504.
The Software Engineering Institute has its own process assessment and improvement
methods, called CMMi (Capability Maturity Model — integrated) and IDEAL

Quality terms
• Quality Improvement can be distinguished from Quality Control in that Quality
Improvement is the purposeful change of a process to improve the reliability of
achieving an outcome.
• Quality Control is the ongoing effort to maintain the integrity of a process to
maintain the reliability of achieving an outcome.

• Quality Assurance is the planned or systematic actions necessary to provide
enough confidence that a product or service will satisfy the given requirements