BBA – IV SEMESTER

QUALITY MANAGEMENT

UNIT – I
Introduction to Quality Management
and
Cost of Quality
Quality Management: Meaning, Concept and Importance, Evolution
of Quality Management, Cost of Quality
 QUALITY MANAGEMENT

WHAT IS QUALITY?

Meaning – Quality is the performance of the product as per the commitment made by the
producer to the consumer. The commitment may be explicit such as written contract or it may
be implicit in terms of the expectations of the average consumer of the product.

Definition –
 “The composite product characteristics of engineering and manufacturing that
determines the degree to which the product in use will meet the expectations of the
customers”
 “Quality refers to meeting specifications and performance standards”
 “Quality is the totality of features and characteristics of a product or source that bears
on its ability to satisfy stated or implied needs".

DIMENSIONS OF QUALITY:- Garvin (1984) offers one of the most known

multidimensional models used to define the quality of a product, which consists of a
theoretical framework, based on eight dimensions of quality, before that the “author describes
five approaches" to define the quality:

1. The Transcendent Approach: According to the transcendent approach quality

means innate excellence; it is an absolute concept and universally recognized, but it cannot be
defined precisely and, like other concepts that philosophers consider primitive, it can be
recognized only through experience.

2. The Product-Based Approach: The product-based approach considers the quality as

a precise and measurable variable. The differences in the amount of attributes possessed and
in the level of these attributes are reflected in differences in the relative quality of each
product. Consequently, the quality of different products can be measured, and they can be
ranked from the best to the worst, based on the “quantity possessed” of the attributes desired,
provided that such attributes are considered desirable by virtually all consumers.
3. The User-Based Approach: The user-based approach is common to those who deal
with economics, marketing, and operations management and is based on the idea that each
person has their own preferences and must therefore be considered better-quality products
that best meet those needs.

4. The Manufacturing-Based Approach: This quality as conformance to

specifications, any deviation from these specifications implies a reduction in quality. The
main focus of this approach is internal. It results in an emphasis on product reliability and on
process control. The purpose is to reduce the costs: indeed, a quality improvement, which
means a reduction of the number of deviations from the standard, allows it to carry the
product at a lower cost, given that preventing faults or defects that costs less than repair or
rework the product.

5. The Value- Based Approach: This defines quality in terms of cost and price: a
quality product is a product that guarantees certain performance at an acceptable price for the
purchaser or some standards compliance at an acceptable cost to the producer.

The features that characterize the quality should be first identified through market
research (user-based approach) and then converted into product attributes (product-based
approach), and finally the process of production should be organized so as to make the
products in accordance with the specifications fixed (manufacturing-based approach); this
should be done in order to create value for the whole economic system (value-based
approach); a process that ignores one of these steps does not allow to obtain quality products.

After describing the five approaches, Garvin proposes a theoretical framework that
includes eight dimensions of quality:

(1) Performance: It refers to the operational characteristics of a primary product and

involves attributes objectively measurable, which allow us to classify the products of
different brands in a unique way on the basis of at least one of these characteristics. In some
cases, however, the relationship between quality and performance can be ambiguous: The
fact that different performances do perceive different quality depends on individual
preferences and the relative weight that each gives to each of the primary characteristics of
the product.
(2) Features: It includes all the secondary features that integrate the basic functionality of the
product, even if often the line between the primary characteristics from the secondary is
difficult to sign.

(3) Reliability: It reflects the probability that the product presents zero defects in a specific
time interval, since this definition requires that the product is used for a certain period, this
dimension is significant only for durable products.

(4) Conformance: It measures the degree of conformity of the product features to predefined
specifications involving both internal and external elements in the production process, it
usually measures the incidence of defects, as the number of customer service calls or the
number of warranty repairs, but they are not able to capture noncompliance, for which the
customer is directed to the manufacturer.

(5) Durability: It measures the life of the product and can be defined as the “use of a product
before it fails and the repair is impossible or less effective than replacement”; such dimension
appears closely linked to the reliability, since a product that fails often will probably be
replaced first with respect to a more reliable product.

(6) Serviceability: It refers to the service level, in terms of speed, courtesy, and competence
by the offer side. The customer is bothered by the time it takes for the product to be repaired,
by the discomfort due to inability to use, by the relationships with the staff, and by the
frequency with which customer service cannot solve the problem; some of these variables can
be measured objectively, others reflect individual preferences.

(7) Aesthetics: The aesthetics dimension is totally subjective, since it concerns the sensations
associated to visual characteristics of a product—for example, to the design, form, color,
consistency, which are clearly a matter of personal judgment.

(8) Perceived Quality: The dimension of perceived quality is also subjective; consumers do
not always have complete information about the characteristics of a product. Consequently,
the quality is evaluated through indirect measures such as the image or the name of the brand,
rather than comparing the objective characteristics, leading in turn to different assessments by
different persons.
 WHAT IS QUALITY CONTROL?
Dr. William R. Sprigal, “The Quality of a product is the sum of its shape, design, outline,
durability, craftsmanship, assembly and the final look etc. and Control refers to ensuring that
the work has been accomplished are to the pre-decided norms and if not then why?
Ballibuay, “QC refers to orderly control of those changeable factors which can affect the
goodness of the final product.

AIMS AND OBJECTIVES OF QUALITY CONTROL: -

1. To establish quality related norms.
2. Stop production of defective quality/variety.
3. To take corrective measures related to Quality.
4. Not to let poor quality product reach the consumer
5. To bring economy
6. Increase sales {Good Quality, Reasonable Rates, Good service}
7. To publicize the product
8. To remove the faults from the product
9. Increase Profits
10. To bring consistency in products
11. To reduce scraps
12. To increase foreign exchange
13. To improve the relation between the manufacturer and the consumer.
 WHAT IS QUALITY MANAGEMENT?
Quality Management refers to the co-ordinate activities to direct & control an organization.
Management Activities and functions involved in determination of quality policy and its
implementation through means such as Quality Planning & Quality Assurance.
It is the act of overseeing all activities and tasks that must be accomplished to
maintain a desired level of excellence. This includes the determination of a quality policy,
creating and implementing quality planning and assurance, and quality control and quality
improvement. Generally, it focuses on long-term goals through the implementation of short-
term initiatives.

QUALITY MANAGEMENT SYSTEM: A Quality Management System is 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.

QUALITY MANAGEMENT PRINCIPLES:

1. Customer Focus: The customer focus is the foundation of improving customer
satisfaction. In order to provide products and services that meet customer needs, firstly focus
should be on what these needs are.
2. Leadership: Top management needs to provide resources and adequate ongoing
review of the system.
3. Engagement of People: The people who work at organization are the most important
asset, and their knowledge and experience need to be understood in the QMS.
4. Process Approach: Everything we do in an organization is a process, and a system is
created when we understand that the inputs for one process come from a different process,
and it is in these interactions that we need to take particular care.
5. Improvement: QMS needs to focus on finding ways to do things better to survive in
the competitive environment.
6. Evidence-based Decision Making: Proper management cannot be done if we don’t
know how a process is actually working. By taking decision on the basis of facts, we can
better manage and improve the QMS.
7. Relationship Management: Sometimes the only way to improve our products and
services is to have our suppliers improve their products and services. In order to make this
work, we need to manage the relationship between ourselves and our suppliers.
 TOTAL QUALITY CONCEPT: -
According to Atkinson, “Total Quality is a strategic approach to produce the best
product/service possible through constant innovation.
It includes full attention on product as well on service. Quality has to be in all functions &
everyone has to put in efforts to achieve it. Thus, it includes maximum utilization of
resources. Total Quality Management/Total Quality Concept is concerned with the
following: -
1. Customer’s satisfaction as the objective.
2. Totality of functions i.e. all functions in an organization.
3. Total range of product and services offered by the organization.
4. Addressing all aspects & dimensions of quality.
5. Addressing the quality aspects in everything i.e. products, services, processes, people,
resources, and interaction etc.
6. Satisfying all customers: Internal and External.
7. Addressing the total organizational issues of retaining customers and improving profits, as
well as generating new business for future.
8. Involving everyone in the organization in the attainment of the set objectives
9. Demanding total commitment from all in the organization towards the achievement of
organizations objectives.

BASIC QUALITY CONCEPTS ARE: -

A. Quality: Quality is the totality of features and characteristics of a product or source
that bears on its ability to satisfy stated or implied needs
B. Quality Control: Quality control (QC) is a process through which a business seeks to
ensure that product quality is maintained or improved. Quality control requires the business
to create an environment in which both management and employees strive for perfection.
This is done by training personnel, creating benchmarks for product quality and testing
products to check for statistically significant variations.
C. Quality Assurance: Quality Assurance is defined in 150-8402 as: “All the planned
and systematic activities implemented within the quality systems and demonstrated as needed
to provide adequate confidence that an entity will fulfill given requirement of quality. Quality
Assurance is the part of quality management system focused on providing confidence that
quality requirements will be fulfilled.
 ELEMENTS OF QUALITY ASSURANCE: -
a. Quality System – Set of documented procedures & rules of management aimed at the
assurance of performance of a product, process or service to specified requirements.
b. Quality Evaluation – Checking whether the quality system and the execution of the
quality control activities confirm with the management directives & the demonstration
thereof.
c. Quality Control: - The operation techniques and activities necessary for maintaining
the required quality of product, process or service.

In practice if quality is to be assured and the job done properly, then everyone in the
organization should be able to answer the following questions:
 What do I do? – Specification, Drawings, Purchase, Requests, Contracts.
 How do I do it? – Procedure, Instruction, Experience, Qualifications, Training.
 Am I able to do it? – Resources, Materials, Equipment, Information, Experience,
Attributes.
 How well has it been done? – Measurement & Comparison
 Can I affect it? – Feedback, Involvement, Corrective action.
 Do I want to do it? – Motivation
 Can I prove the job has been done properly? – Records, Certifications, Audits.

D. Quality Management
E. Total Quality Management: As per British Quality Association (1989), TQM is “a
corporate business management philosophy which recognizes that customer needs & business
goals are inseparable. It is appropriate with both industry & commerce.
TQM ensures maximum effectiveness & efficiency within a business and secures
commercial leadership putting in place all processes and all systems which will promote
excellence & prevent errors.

CHARACTERISTIC OF TQM: -
i. Total Customer Satisfaction: -
 Quality – as a value
 Value maximize
 Customer requirements, preference, expectations
ii. Totality of function: -
All function of an organization like marketing, production planning, purchase, research &
development process, quality assurance etc have to achieve their performance in totality &
continually improve their performance.
iii. Total range of products/service: -
TQM Philosophy ensures the desired quality of output of all the products/service being
offered by the organization and achieves the objectives of an organization.
iv. All aspects and dimensions of quality: -
The product/service has to spell excellence on all the dimensions of quality. TQM includes
intensive & extensive probe into the market behavior & customer’s behavior.
v. Quality instilled into everything: -
All factors like products, services, processes, people, resources & interactions has
tremendous significance and should be of desired quality suiting to the customer’s needs and
expectations
vi. Retain present customers, improve profit, and generate new business.
vii. Total involvement of every employee.

ROAD MAP FOR TQM: -TQM which involve huge information in an organization
and is an initiative about the entire organizations quality which refers to organizational
excellence. A general roadmap for a TQM initiative may be outlined as under.
 ELEMENTS OF TQM:-

1. Customer Orientation & Satisfaction: Customer orientation is essential for

achieving customer satisfaction. Insight into the expectations and satisfaction of customers
enables an organization to improve customer orientation. Monitoring customer satisfaction
produces important information that makes it possible to keep an eye on and improve
process.
2. Do it right at first time: Do It Right The First Time (DRIFT) is a managerial
accounting technique or practice that centers around decreasing waste and increasing
efficiency in the production process.

3. Employee Involvement: The direct participation of staff to help an organization

fulfill its mission and meet its objectives by applying their own ideas, expertise, and efforts
towards solving problems and making decisions. It is a participative process that uses the
input of employees to increase their commitment to the organization’s success.
4. Continual improvement: Continual improvement is a process that includes ongoing
and continuous effort to improve the standard of processes, services, or products, always
striving to identify opportunities for improvement and making necessary changes that will
result in a better outcome.
5. Empowering the staff: Employees typically look to their managers to make
decisions that will positively impact them. Likewise, it is important that employees feel
empowered to also make those important business decisions. Autonomy in the workplace
fosters a more efficient and inspired company culture.
6. Benchmarking: Benchmarking is the practice of comparing business processes and
performance metrics to industry bests and best practices from other companies. Dimensions
typically measured are quality, time and cost under benchmarking.
7. Feedback mechanism: The customer feedback and employee feedback mechanisms
are the essential requirements to create customer oriented quality culture. These feedback
mechanism perspectives are the accurate evaluation of the operations of the company from
both internal and external perspectives. This evaluation indicates how the operations affect
internal and external customers and provide a measurement of customer satisfaction.
 BENEFITS OF TQM:-
A. General
 Makes leader
 Effective team-work
 Goal oriented
 Sensitive to customers' needs
 Adopt more rapidly to changes
B. To customers:
 Fewer quality problems
 Better customer care
 Greater specification
C. To company
 Better product quality and Improved Productivity
 Increased market share/growth
 Enhanced problem solving skill
 Improved profitability
D. To employees
 Empowerment
 More recognition
 Job interest and Job Security
 Reduced grievances

LIMITATIONS OF TQM: -
 Lack of Management Commitment
 Inability to Change Organizational Culture
 Improper Planning
 Lack of Continuous Training & Education
 Incompatible Organizational Structure
 Ineffective Measurement Techniques & Lack Of Access To Data & Results
 Paying Inadequate Attention to Internal & External Customers
 Inadequate Use of Empowerment & Teamwork
 Failure to Continually Improve
 6 C’S OF TQM: -
 Commitment
 Culture
 Continuous improvement
 Co-operation
 Customer focus – perfect service with zero defaults
 Control

SCOPE OF QUALITY MANAGEMENT/CONTRACT

Quality has propounded influence on marketing functions such as creating demand,
getting an edge over competitors, fixing competitive prices, securing market leadership etc.
R&D whose main function is to give shape to an idea, design product for a desired quality
level commensurate with wants and needs of customers, conditioned by value and worth.
Therefore, quality is really built into the system, at the design stage itself. The scope of total
quality concept is extensive. Quality management engineering built up on this concept,
concerns the following: -
1. Staff – Quality Management in staffing involves the selection and deployment, co-
ordination, role (advisory or control) inter-personal and interdepartmental relationship, co-
operation, co-ordination etc.
2. Function – As a process of quality management, various function are conducted such
as new product function, vendor, process control measurement, consumer relations &quality
& audit.
3. Assignment of Quality Function – Assignment of quality management function is
not confined to quality control staff alone. The success of organization depends on its ability
to get co-operation of all concerned, VIZ R&D production, sales & marketing including
finance staff in order to enhance quality.
4. Organization – A quality control organization is concerned with command and
control structure, authority, relationship, decision making & de-centralization.
5. Job Evaluation – An important quality control function is to define job description as
well as job specification and evaluation of the job done through various techniques.
6. Inspection of Raw Material – The inspection is carried out with the belief that if the
RM is good the manufactured goods will also be good.
7. Quality Consciousness – Good quality of a product or service ensures higher
profitability creates goodwill and makes the employment of highly skilled labour with better
wages possible and therefore to maintain as well as to improve the quality standards. Each
and every manufacturer spends a certain amount of money. Moreover, a quality conscious
unit gives technical assistance to the suppliers and also sends its official to the supplier’s
factories frequently to ensure that the facilities are adequate for the production of quality
products required by them.
8. Supervision – Production and before it reaches the hand of the customers, is a way
totally segregates the flawless product from a faulty one and only the product of an approved
quality reaches the hands of the customers.
9. Quality Control in manufacturing process – Quality Management is done at
manufacturing level with the objective of detecting flaw or defect in the machinery or plant
and whether the entire manufacturing process is being run as per the decided schedule. Any
defect in the manufacturing process immediately comes into notice with this check.
10. Introduction of corrections in the rejected product – The area of quality control is
not only to prevention but improvement in the rejected and faulty product is also included in
its sphere.

IMPORTANCE OF QUALITY MANAGEMENT:-

1. Decrease in production costs
 Reduction in amount of waste material
 Unnecessary wastage & damages
 No extra expenditure to sell inferior quality goods at lower rates
2. High morale of the workers: Due to quality control measures the workers know
clearly the standards of goods require & thus they work single mindedly towards producing a
superior product. This keeps their morale high.
3. Maximum use of available sources: Quality Control establishes control over all
machines, materials, human and physical source available and puts a stop to misuse of
facilities and inferior quality production
4. Increase in sales: A consumer gets good quality products only when quality control
is exercised in production. (Good quality product leads to consumer satisfaction and increases
in the demand of the product which leads to increase in sale & goodwill among other
consumers
5. Consumer satisfaction & loyalty: Proper implementation of quality control only
good quality products reach the consumer and make a place for themselves in the consumer’s
hearts. Good quality products lead to consumer satisfaction.
6. Survival of the company
7. Co-ordination among the workers & work teams.
8. Organize the work place in better manner and makes employees deliver more
work in less time

EVOLUTION OF QUALITY MANAGEMENT: -

The concept of quality can be traced back to the late 13 th century. We can trace the
development of TQM into 5 phrases as propounded by A.V. Feigenbaum:
1. Operative Quality Control
2. Foreman Quality Control
3. Inspection Quality Control
4. Statistical Quality Control (SQC)
5. Statistical Process Control (SPC)
6. Total Quality Control

1. Operative Quality Control: - .

Prevalent during the medieval era, but became prominent after the industrial
revolution.
 Number of products was less and individually made
 Quality is judged by the workman ship & aesthetic appearance.
 Dimensional accuracy not given importance as there is hardly any mating or
interchangeable components.
 Workers were trained in craftsman. Ship to achieve higher quality.

2. Foreman Quality Control:-

 Until the 17th century as business increased, the foreman supervised the quality
function mere as a person controlling the work of several operatives. Quality
conformance became one of his responsibilities.
 The concept of quality remained mere more or less the same as before.
 There again the dimensional accuracy is less critical than the functional quality, the
workmanship or the aesthetic appearance.
3. Inspection Quality Control: -
 During the industrial revolution, manufacturing operation was being broken down to
produce small components & then assembling them. Hence, a need arose to maintain
dimensioned accuracy leading to product inspection procedures. This led to
deployment of highly skilled, trained operations as inspectors for better quality
standards, initially as a decentralized function of product.
 FW Taylor (Father of Scientific Management), put forward the principles of
functional specialization for affective performance, which gave birth to the centralized
inspection departments who generally were performing 100% Inspections at least for
high value items.

4. Statistical Quality Control:-

 In view of the small size of the components and the high volume of product by each
quarter. This inspection for each & every component and its operation became very
expensive, more than the cost of manufacture. This led to development of SQC.
 A study of these records revealed the statistical conformance of these values.
 During World War II, due to very high demand of output 9in short duration, the
managers started applying statistical principles in developing random inspection
procedures based on the theory of probability to save inspection time and to enhance
the productivity.

5. Statistical Process Control (SPC):-

 Statistical process control is a statistical method of quality control for monitoring and
controlling a process to ensure that it operates at its full potential. It determines the
stability and predictability of a process. It can be applied to any process where the
output of the product conforming to specifications can be measured.

6. Total Quality Control: -

 After the US bombing of Japan, the quality consciousness was developed as a national
spirit among the Japanese workforce to achieve the above goals.
 Several principles were developed, mostly adopted from traditional management
principle & explained them in simple language, and the terms were easily understood
& remembered by Japanese workforce, helping to convert their quality consciousness
to Quality Commitments as a national fervor.
 The history of TQM began initially as a term coined by the Novel Air System
Command to describe its Japanese Style Management Approach to Quality Improvement. An
umbrella Methodology for continually improving the quality of all process, it draws on
knowledge of the principles and practices of:
o The Behavioral Sciences
o The Analysis of Quantitative and Non – quantitative Data
o Economic Theories
o Process Analysis
EVOLUTION OF QUALITY OVER THE YEARS:

 Some of the first seeds of Quality Management were planted as the principles of
scientific management swept through US industry. (1920s)
 Business clearly separated the processes of planning & carrying out the plan and
union opposition arose as workers were deprived of a voice in the conditions and
functions of their work.
 The Hawthorne experiments in the late 1920s showed how worker productivity could
be impacted by participation.
 Walter Shewhart developed the methods for statistical analysis and control of quality.
(1930s)
 W. Edwards Deming taught methods for statistical analysis & control of quality to
Japanese engineers & executives. This can be considered the origin of TQM.
 Joseph M Juran taught the concepts of controlling quality & managerial breakthrough.
 Armand V. Geigenbaum’s book TQC, a forerunner for the present understanding of
TQM, was published.
 Philip B Crosby’s promotion of zero defects paved the way for quality management in
many companies
 The Japanese named their approach to total quality, companyride quality control. It is
around this time that the term quality management systems arises. (1968)
 Kaoru Ishikawn’s sysnthesis of the philosophy contributed to Japan’s ascendency as a
quality leader.
 Today, TQM is the name for the philosophy of a broad and systemic approach to
managing organizational quality. Quality standards such as the 150 9000 series and
quality award programs such as the Deming Prize and the Malcolm Baldrige National
Quality Award specify principles and processes that comprise TQM.

QUALITY COST – There are significant cost benefits to be gained from

implementing a quality assurance system. If we are to calculate the cost saving we first must
determine the cost of quality.
The most common format for categorizing quality costs is the Prevention-Appraisal –
Failure (PAF) model. The categories in the model are:-
1. Prevention costs: - The cost of all activities specifically designed to prevent poor
quality in products or services. E.g. cost of new product review, quality planning, supplier
capability, surveys, process, capability evaluation, quality improvement team meetings,
quality improvement projects, quality education & training.
2. Appraisal Costs: - Cost associated with measuring evaluating, or auditing, products
or services to assure conformance to quality standards & requirements.
e.g. Cost of incoming and source inspection/test, product or service audits, calibration of
measuring and test equipment, and the cost associated supplies and materials.
3. Failure Costs: - Costs result from products or services not conforming to
requirements or customer/user needs. Failure costs fall into internal and external categories.

Internal Failure Cost – Failure cost occurring prior to delivery or shipment of the
product or the furnishing of a service to the customer. e.g. costs of scrap, rework, re-
inspection, retesting, material, review or downgrading.

External Failure Costs – Failure costs occurring after delivery or shipment of the
product and during or after furnishing of a service to the customer e.g. Costs of
processing customer complaints, customer returns, warranty claims & product recalls.
 TOTAL QUALITY COSTS – The sum of the above costs, representing the
difference between the actual costs of a product or service and what the reduced cost would
be if there was no possibility of substandard service, product failure, or manufacturing
defects.

By changing the emphasis away from costs associated with non-conform once, then
the cost of quality can be reduced and the saving go straight into the bottom line of the profit
accent.

To obtain all the cost benefits in an organizations management need to maintain a

highly visible approach to the reporting and monitoring of quality costs and wherever
possible should relate them to other cost measures; e.g. sales, turnover in order to: -
a. Evaluate the adequacy & effectiveness of the quality management system.
b. Identify additional areas requiring attention
c. Establish quality & cost objectives.

When quality costs are collected for the first time typically –
Failure = 65% of total
Appraisal = 30% of total
Prevention = 5% of total
After it is found that the cost of quality is about 20% of sales.

CLASSIFICATION OF QUALITY CONTROL

1) HISTORICAL OR FEEDBACK QUALITY MANAGEMENT
 It is also known as Post Action Quality Control system.
 Under this system the causes of deviation or historical quality control from standards
are determined and corrective steps are taken so that such deviation does not occur
again.
 Any good management system, control quality by information feedback which
discloses errors in accomplishing goals and initiates corrective actions
 Feedback information may be received formally and informally which may include
written info, actual performance reports, finance statement etc. informal feedback is
through personal contracts and informal discussion.
2) CONCURRENT QUALITY CONTROL SYSTEM
 It is also known as “Real Time” or ‘Steering Quality Control System”.
 It is concerned with the adjustment of performance before any damage is done (e.g.
As in case of navigator of a ship adjusts it movement continuously depending upon
the direction of destination, obstacles & other factors)
 E.g. in quality control chart, QC occurs while on activity is still taking place. Safety
check is another example of QC.
 Under the type of quality control performance is analyzed as it takes place and instant
corrective action is taken where ever necessary.
 Modern high speed electronic computers have made real time quality control possible,
in some organizations; operational quality control such as inventory QC, production
QC, etc are run as real time quality controls.

3) PREDICTIVE OR FEED FORWARDS QUALITY CONTROL SYSTEM

 This system is also known as pre-quality control system and preventive quality
control.
 It involves evaluation of input and taking corrective measure before a particular
sequence of operation is completed.
 It is based on timely and accurate information about changes in environment in this
system forecasting is being done to detect likely deviation & advance action is taken
to prevent the system’s performance from deviating beyond the permissible limit,
therefore, it is also known as preventive QC.
 Eg. Formulation of policies on absenteeism may be communicated to new employees
to help potential problems caused gy absenteeism.

CAUSES OF QUALITY FAILURES

1. Manpower Related – Humans error can happen due to fatigue, poor eyesight,
hearing & movement, inadequate training and re-training, poor knowledge, lack of
supervision, frequent changes, transfer, absenteeism and top management lesser attention to
quality.
2. Facilities Related – Quality of machines tools and fixtures measuring instrument
should have the accuracies. Obsolete/old tools, deteriorating machines are to be re-
conditioned periodically.
3. Process related – process of operations selected for different jobs should be easy to
operate, accurate and consistent. A process should be chosen after trials so that once bulk
production there should be no need to make changes. Along with process tooling, inspection
stages, measuring instruments are to be decided.
4. Material Related – incoming material not as per the specification, wrong
dimensions, damage in handling, and transportation will cause problems. Various items
should be separately packed for easy identification.
5. Environment Related – due to effects of rains, moisture, heat, cold, storm
conditions, some material get deteriorated or change shape eg. Wood looses shape due to
moisture, steel gets rusted etc.

HOW QUALITY CONTROL SHOULD BE IMPLEMENTED

To manufacture the commodities of the pre-decided variety, the quality control department
should adopt the following ways to maintain effective control:
 Control of the Raw Material
 Determination of norms & specialties
 Control on production activities
 Evaluation of quality of decorative & other features
 Arrangement for supervision
 The amount of supervision
 Appointment of effective supervisors
 To adopt statistical means of quality control
 To create an environment of quality control
 Quality control of exports
 Standardization of products
 Evaluation of goods by loading them onto the ship.
 Action against corrupt officials
 To maintain an account about the supervisory and controlling actions that are taken.

METHODS & TECHNIQUES OF QUALITY CONTROL

In any business concern many types of techniques & methods are used to implement
the quality control system. The modern techniques or methods include control techniques of
the account types. These methods or techniques are as follows:
 Loss compensation method
 Bonus plan technique
 Repeat task order technique
 Variety in-charge technique
 Control techniques of the accounts types
 Control chart method
 Approved choice/sampling method
 Supervision techniques.

1. LCM – Under this system of QC system is put in place in the organization so that the
employees who spoil the type or the quality of the product are made to compensate for the
loss incurred by the institution from their salaries.
2. Bonus plan technique – in this method of QC those supervisors where department
produce superior quality of goods are paid bonus at a higher rate.
3. Repeat task orders technique – the number and cost incurred on those activities are
revealed which have to be re-done in order to make the produce flawless.
4. Variety in-charge technique – A person is appointed to monitor the quality of a
product & that person keeps checking the quality of the procedures & product at the
production site so that the flaws from the products can be easily removed.
5. Control technique of account types – Also known as modern types of techniques
for QC. accounting qc has two major methods: -
A. CCM – in this method criterions are set & the main qualities are monitored with the
help of the production control charts. The main aim is to the monitor the quality.
B. Sampling method - QC instead of a complete check only a few heads or units are
checked which is termed as sampling
6. Supervision Technique – under this technique it is decided whether the production
being alone is of desired quality or not.

LEVELS OF QUALITY MANAGEMENT:

1. Organizational Level Quality Management

2. Process Level Quality Control
3. Job Level Quality Control
 IMPLICATIONS OF QUALITY MANAGEMENT:

POSITIVE IMPLICATIONS:
1. Decrease in production costs
2. Morale of the workers
3. Maximum use of available sources
4. Increase in Sales
5. Consumer satisfaction & loyalty
6. Survival of the company.
7. Co-ordination among the workers & work teams.
8. Organize the work place in better manner and makes employees deliver more
work in less time

NEGATIVE IMPLICATION:
1. Constraints imposed by quality culture
2. Autocratic style of leadership
3. Lack of employee commitment
4. Improper Channel of communication
5. Quality certifications-viewed as bureaucratic exercise
6. Problems in identifying customer needs

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