CHAPTER 2 (FOUNDATION OF QUALITY MANAGEMENT)

ASSIGNMENT #2

INSTRUCTION: Please read Chapter 2 (Foundation of Quality Management) of our

textbook and answer the following:

A. Define the following:

A. System

A system defines as a collection of entities that associate or interrelate, which form a

system as a whole. A system, surrounded and influenced by its environment, is defined
and expressed in its functioning by its limits, structure and purpose. It is used to make a
concrete plan of actions in a one management to serve its purpose. The management
will decide to the system they will use to optimize their employee’s actions and execute
their plans to make a useful decision that will make the company grow.

B. System Thinking

System thinking is a holistic approach to analysis that focuses on the way that a
system's constituent parts interrelate and how systems work over time and within the
context of larger systems. The systems thinking approach contrasts with traditional
analysis, which studies systems by breaking them down into their separate elements.
Systems thinking can be used in any area of research and has been applied to the
study of medical, environmental, political, economic, human resources, and educational
systems, among many others.

C. Quality planning

A quality plan is a document or several documents which together define the quality
standards, procedures, resources, requirements and the series of activities that are
applicable to the product, service, project or contract in discussion. It is a process where
all the necessary materials, manpower and the resources need will be discuss. In
quality planning, they also have to allocate the cost they will use to make the project. It
is an important part of the production system because it helps them to project the
possible income they will earn in the future.

D. Quality control

After planning, the production will eventually start, the quality control process will be
held by the personnel assigned to assure the quality of the products that had been
produce. Quality control (QC) is a procedure by which an organization tries to ensure
the maintenance or enhancement of product quality. Quality management includes
inspecting the units and deciding if they are beyond the final product standards. It helps
the management to assure the quality of the products they are offering in the market.

E. Quality improvement

It is the main reason why company conducting a survey and feedbacks from their
customers to know the enhancements they have to do in order to satisfy their
customer’s needs and wants. Who doesn’t want to provide their clients and customers
with the best products and services? All businesses want to improve the quality of their
offerings, but not everyone has the same idea of what constitutes the best or the
highest quality. Quality improvement defines as Quality improvement a process for
changing standards. It is not a process for maintaining or creating new standards.
Standards are changed through a process of selection, analysis, corrective action on
the standard or process, education and training.

F. Principles

A principle is a proposition or value that is a practice or evaluation guide. In law, it is a

rule that must be followed, or normally must be followed, or can be followed desirably,
or is a necessary product of anything, such as the laws found in nature or the manner in
which a structure is built. In quality management, principle can be defined as the
standards to follow by the management to assure the quality of the products they will
use to meet the expectations of every customer.

G. Practices

For the purpose of improving or mastering it, practice is the act of rehearsing an action
over and again, or engaging in an activity again and again, as in the expression
'practice makes perfect'. It is the way of companies to continuously developing the
product they are producing. Feedback is one of the main reason why they can improve
all the products they can offer.

H. Techniques

A technique is a particular method of doing an activity, usually a method that involves

practical skills. It is a method of doing some task or performing something. We can
define this as a well-skilled employee who really do well in their profession because it is
their routine in their everyday life. A technique can help companies in producing
excellent quality products at a minimal amount of time.

I. Statistical thinking

Statistical thinking is a way of understanding a complex world by describing it in

relatively simple terms that nonetheless capture essential aspects of its structure, and
that also provide us some idea of how uncertain we are about our knowledge. It helps
the company to think and decide the steps they will take to make a useful decision that
the company will benefit in the future.

J. Common causes of variation

Common cause variation is variation resulting from factors that may or may not be
known, but the final impact they have on your output is predictable and controllable, and
you would usually know to expect some variation in specific areas when looking at your
final reports. As we said above, some level of variation is inevitable for most types of
processes, and this is usually the kind you want to have if you want to be sure that
you’re in control of the current situation.
 K. Special causes of variation

On the other hand, special cause variation occurs when something out of the ordinary
happens in a process. This might be a one-time occurrence, or it can develop into a
repeating effect, in which case it might eventually be categorized as common cause
variation depending on the circumstances. It’s important to understand that sometimes
you will simply not be able to avoid special cause variation, either because the nature of
a process is prone to it, or because of external factors in your environment that are
beyond your control.

L. Quality management system (QMS)

A quality management system (QMS) is defined as a formalized system that documents

processes, procedures, and responsibilities for achieving quality policies and objectives.
A QMS helps coordinate and direct an organization’s activities to meet customer and
regulatory requirements and improve its effectiveness and efficiency on a continuous
basis. It can also be defined as a set of internal rules that are defined by a collection of
policies, processes, documented procedures, and records. This system defines how a
company will achieve the creation and delivery of the products and services they
provide to their customers

M. ISO-9000

ISO 9000 is defined as a set of international standards on quality management and

quality assurance developed to help companies effectively document the quality system
elements needed to maintain an efficient quality system. They are not specific to any
one industry and can be applied to organizations of any size. ISO 9000 can help a
company satisfy its customers, meet regulatory requirements, and achieve continual
improvement. It should be considered to be a first step or the base level of a quality
system.
2. Explain the Deming chain reaction

The chain reaction lets you reward workers as the company prospers, instead of seeking to
prosper on the backs of workers. Flipping the means and the ends does not work. Reducing
costs as the result of process improvement is effective management. Deming chain reaction
focuses on continual improvement you are able to remove waste, reduce errors, and
remove delays. Reducing costs through process improvement, and at the same time
improving productivity and product effectiveness, allows a company to benefit from the
positive chain reaction..

3. Relate Deming’s 14 Points to the four components of his Profound Knowledge.

Deming’s ‘System of Profound Knowledge’ works on the principle that every business is
made up of related people and processes who work together, and that the success of
the system depends on the ability to manage those components successfully. He
theorized that there were four elements to understand in order to improve the
effectiveness of a business. To simplify this, we have to think and see problems we
encounter in a positive way to find alternative solution. Just like on how we improve the
quality of the product or service we are offering, we have to see find ways on how to
improve it and how to deals with the problems encountered by the company and to
focus on their self-improvement and growth.

4. Enumerate the breakthrough sequence that Juran advocated for quality

improvement.

Proof of need
Project Identification
Organization for Breakthrough
Diagnostic Journey
Remedial Journey
Holding Gains
5. What are Crosby’s Absolutes of Quality Management?

Quality means conformance to requirements

Problems are functional in nature
There is no optimum level of defects
Cost of quality is the only useful measurement
Zero defects is the only performance standard

6. List down the eight principles of quality management

Customer Focus
Leadership
Involvement of People
Process Approach
System Approach to management
Continual Improvement
Factual Approach to Decision Making
Mutually Beneficial Supplier Relationships

7. What are the operational problems created to excessive variation?

Excessive variation increases unpredictability, reduces capacity utilization, contributes

to a “bullwhip” effect, makes it difficult to find root causes and makes it difficult to detect
potential problems early.

8. What are the three principal benefits of ISO-9000?

It provides discipline.
It contains the basics of a good quality system.
It offers a marketing program.