Professional Documents
Culture Documents
Bba303 M
Bba303 M
SEMESTER 3
Q. No 1 Define the term Quality management. What are the dimensions of quality?
Differentiate between Quality Control and Quality Assurance.
(Definition of Quality management, Dimensions of quality, Difference between Quality Control and
Quality Assurance) 2+4+4=10
Dimensions of quality:
Research work has suggested that customers are heavily influenced by different dimensions in
determining quality level of a product or services. In fact, quality symbolises many aspects of what a
customer perceives and wants. The definition of quality often becomes a debatable issue. The most
fundamental definition of a quality product is one that fulfills or exceeds expectation of the customer.
But it proves to be a bit inadequate to be considered all the time. Thus, to frame a comprehensive
meaning of quality, we may consider few significant dimensions as mentioned below.
Difference between Quality Control and Quality Assurance:
Product-oriented Process-oriented
Makes sure that the results of Makes sure that you are doing the
what right
you have done are what you thing, the right way
expected
Appraisal cost is very high as we Appraisal cost does not increase too
approach high level of quality high even at high level of quality
Q.2:Differentiate between Mission and Vision Statements. Write a brief note on “quality
objectives”
a) Difference between Mission and Vision Statements
b) Quality Objectives
ANS:
a) Difference between Mission and Vision Statements:
Vision defines the way an organisation or enterprise looks into its future. Vision is a long-term outlook
that describes how the organisation would like to view itself in the competitive world in which it
operates. A vision statement outlines what the organisation wants to be in the future. It is a major
source of inspiration for the organisation. Mission defines the fundamental purpose of an organisation
or an enterprise, describing why it exists and what it does to achieve its vision. A mission statement
tells us the fundamental purpose of the organisation. It also defines the critical processes of the
organisation and informs us of the expected level of performance. An example of vision and mission is
that of World Health Organisation (WHO). WHO can adopt the vision of “having a healthy world”.
Many people mistake the vision statement for the mission statement. A vision statement defines the
purpose or broader goal for being in existence or for being in the business. A mission statement is
more specific to how the enterprise can achieve the objectives of organisation.
b) Quality Objectives:
Quality objectives are the practical outline of the quality policy. It is a quality oriented goal. A quality
objective is something that an organisation aims for or tries to achieve. Quality objectives are an
expression of meeting certain requirements like zero defects for a certain product or a response-time
below a specified limit for a certain service. ISO 9000:2000 defines quality objectives as “something
sought or aimed for, related to quality”. Quality objectives are generally derived from an organization's
quality policy. The objectives must be consistent with the quality policy. They are usually formulated
at all relevant levels for all relevant functions within the organisation.ISO 9001:2008 requires that
quality objectives should be established at each relevant function and level within the organisation
(i.e., everywhere in the organisation). The manner in which quality objectives are established and
managed will have an enormous impact on the organization's overall performance. The quality
objectives will either drive strategic improvements throughout the organisation or they will simply
become a meaningless exercise in data collection. Thus, it all depends on how the task is carried out in
the organisation.
a) Kaizen
Answer: a) ‘Kaizen:
Kaizen is a Japanese word meaning improvement or change for the better. It, refers to the beliefs or
practices that focus on the continuous improvement of various processes. The word ‘Kai’ refers to
change, and the word ‘Zen’ means good. Kaizen, also sometimes referred to as continuous
improvement process, is defined as a guiding principle that introduces small and minute changes in
an operating business in order to enhance the importance and competence of the process. This
approach assumes that human resources are paramount for organizational enhancement and
improvement because they visualize the processes in action all the time. Few salient features of Kaizen
philosophy:
Kaizen focuses on identifying problems at their source, solving them at their source, and
changing standards to ensure the problems stay solved.
Improvements are based on many small changes, rather than a radical change that might arise
from research and development.
Kaizen is highly team based and cross functional.
As a few ideas originate from workers as well, they are less likely to be radically different, and
therefore easier to implement.
Small improvements are less likely to require major capital investment than major process
changes.
All employees will continue to seek ways to improve their own performance.
b) Benchmarking
A benchmark is a point of reference against which something is measured. Benchmarking is defined
as “measuring performance against that of best-in class companies, determining how the best-in-
class achieve those performance levels and using the information as a basis for our own company’s
targets, strategies and implementation”. Benchmarking is the search for industries’ best practices
that lead to superior performance.
(Meaning of Customer Focus, Concept of Customer satisfaction and Customer delight) 4+6
Company employees who serve/deliver the product play a vital role in ensuring customer
satisfaction. None of us would like to be served an excellent meal of KFC chicken by a nasty, rude,
and quarrelsome employee. KFC, therefore, ensures a very definite behavioural pattern from its
employees through scientific recruitment and precise training programmes. Customer expectations
may be high or low. This has a strong bearing on customer satisfaction. If expectations are low, it is
rather easy to achieve customer satisfaction through modest products and modest services. But for a
customer with high expectations, the serving organisations need to put in the best possible.
Customer expectations are important because an organisation’s failure in meeting them means a
dissatisfied customer. The only option the organisation has is to provide consistent satisfaction to the
customer through optimum-level performance.
It is important to meet customer expectations and to ensure customer satisfaction because: (i)
satisfied customers bring more business directly or indirectly and (ii) a dissatisfied customer not
only stops buying an organisation’s product, but also dissuades others from buying the same.
This is particularly detrimental to the organisation because customers’ voice has been identified as
the most credible and convincing communication for other customers. If a company says something
and a customer says the opposite, prospective customers will act according to the opinion of the
customer.
Customer delight, as has been already mentioned, is an outcome of a situation when product
performance exceeds customer expectations. This is linked to the type of customer. Type ’A’
customers have expectations of added value. When expectations are met, they achieve normal
expectations. If expectations are not met, they are dissatisfied. Type ‘B’ customers, on other hand,
have no expectation of value addition. If value addition is not made, they are satisfied, but if value
addition is made, they are delighted.
a) Cost of Quality
b) Productivity 5+5=10
Answer: a) ‘cost of quality’:
Cost of quality is defined as the expenditure incurred by the producer to achieve a particular level of
quality. It has been modified, and today it is defined as the expenditure incurred by the producer, user,
and community to achieve a particular level of quality. It is an important concept because managers,
before making any decision related to quality, must have clear understanding of the implications of
the decisions on cost. Quality cost details are also important for the following reasons:
It is an important input while making capital budgeting and other investment decisions.
It helps in identifying outmoded systems.
It facilitates evaluation of profit-making opportunities.
It assists in establishing budgetary and profit planning objectives.
It ascertains overhead wastes related to activities not needed by the customer.
It supports objectivity of performance appraisal mechanisms.
Categories of Cost of Quality
The costs of quality include:
Failure costs
Appraisal costs
Prevention costs
Hidden costs
A) Failure costs
These costs are an outcome of the manufacturing and usage of products, which fail on quality
requirements. There are two types of failure costs: internal and external.
B) Appraisal costs
These are costs associated with routine quality control and information systems designed to provide
managerial control through measurement, evaluation, and audits of existing levels of quality of
manufactured components, products, and purchased raw material. Thus, the appraisal costs of quality
are defined to include all costs incurred in the planned conduct of product or service appraisals to
determine compliance to requirements.
C) Prevention costs
These costs arise while preventing bad quality in goods or services. Thus, prevention cost includes the
cost of all activities designed for the purpose of preventing occurrence or re-occurrence of failures in
products and services.
b) Meaning of productivity:
Productivity is the key survival component for any organisation. Productivity is perhaps the most
important variable in a national economy. It is the primary controllable feature in wealth production.
Since other economic variables are derived from it, enhancing productivity has a favorable multiplying
effect on other economic variables. Productivity has increased in the long run almost all over the world.
In rich countries, GDP went up mainly through productivity increase. Countries having a low
productivity increase are the poorest too. Productivity is measured as follows:
4. Process Approach
The ISO standard stresses that organisations should adopt process approach to management.
Process centric approach ensures the following on the part of the organisation.
Organisations will develop activities to attain objectives
These activities will be delegated to individuals and groups. It ensures clear responsibility and
delegation of activities.
These activities must be monitored and measured by the respective individuals.
Organisations will gradually come to adopt practices to ensure optimal performance of these
activities. They will improve methods, resource allocation and materials in carrying out these
processes.
Organisations will assess the impact of these processes or activities on other stakeholders. They
will start adopting an enterprise wide view and assessment of processes resulting in improved value
chain of the organisation.
6. Continuous improvement
The essence of quality management is continuous improvement of its processes, products and
services, ultimately resulting in higher business and customer value. The ISO standard stresses that
organisations must be committed to continuous improvement and must develop and initiate
continuous improvement programs within the organisation.
Quality management requires that organisations extend quality management concepts and ideas to
include the external stakeholders i.e., suppliers, vendors, contractors, customers etc. Some of the
benefits resulting from such practices are lower costs, better product design, improved use of raw
materials, less wastage, reduced cycle time etc. This is viewed as critical to the success of the quality
management system as a whole.