Chapter 2

A. D. Kulkarni
 Quality Theories & Quality control
Quality Theory is Defined as
There are several theories
a “coherent group of general
on quality improvement in
propositions used as
practice currently.
principles of explanation for
a class of phenomena.”

There is no way to prove the theory. The results of statistical research

either support the theory or fail to support the theory.
 Defining Quality – 5 Ways
• Conformance to specifications
– Does product/service meet targets and tolerances
defined by designers?
• Fitness for use
– Evaluates performance for intended use
• Value for price paid
– Evaluation of usefulness vs. price paid
• Support services
– Quality of support after sale
• Psychological
– e.g. Ambiance, prestige, friendly staff
Manufacturing Quality vs. Service Quality
•Manufacturing quality focuses on tangible product
(A physical item that can be perceived by the sense of touch e.g.
cars, food items, etc.) features
– Conformance, performance, reliability, features,
durability, serviceability
•Service organizations produce intangible products
(that cannot be assessed, felt, measured, or moved because it has
no physical substance.) that must be experienced
– Quality often defined by perceptional factors like
responsiveness, courtesy, friendliness, promptness,
waiting time, consistency
The Goalpost (Traditional) View of Quality
• Traditionally, companies measure quality by the
number of defects or the defect rate.
• In this system, defects are identified through
inspections of the materials and products.
• This view is referred too as the goalpost view
because it can be conformed to the use of goalposts
in football.
• If the extra point goes between the goal posts it is
considered a success.
• It does not matter whether or not it is in the center
or close to the sides. However, if the ball goes wide,
left or right, it is unsuccessful.
 TRADITIONAL LOSS FUNCTION
Upper and lower quality limits are established.

Everything that does not fall within the limits is considered a defect.
 Goal post view (example)
– The desired diameter of stainless steel ball
bearings is 25 mm (the nominal value).
– A tolerance of 5 mm above or below 25 mm
is acceptable to purchasers.
– Thus, if a ball bearing diameter measures
between 20 mm and 30 mm (inclusive), it is
deemed conforming to specifications.
– If a ball bearing diameter measures less
than 20 mm or more than 30 mm, it is
deemed not conforming to specifications,
and is scrapped at a cost of $1.00 per ball
bearing.
Conformance to “valid customer requirements” (as long as an
output fell within acceptable limits) called specification limits,
“around a desired value” called the nominal value (τ) / target
value, it was deemed conforming, good, or acceptable.
Mathematically,
– L(y) = k(y- τ)2 = [A/d2 ][(y- τ)2]
– y is the value of the quality characteristic for a
particular item of product or service
– τ is the nominal value for the quality
characteristic
– k is a constant, =A/d2
– A is the loss (cost) of exceeding specification
limits (e.g., the cost to scrap a unit of output)
– d is the allowable tolerance from “τ” that is
used to determine specification limits.
The Goalpost (Traditional) View of Quality
• Traditionally, companies measure quality by the
number of defects or the defect rate.
• In this system, defects are identified through
inspections of the materials and products.
• This view is referred too as the goalpost view
because it can be conformed to the use of goalposts
in football.
• If the extra point goes between the goal posts it is
considered a success.
• It does not matter whether or not it is in the center
or close to the sides. However, if the ball goes wide,
left or right, it is unsuccessful.
 The Quality Loss Function (QLF)
• The quality loss function is based on the work of
that disagrees with the traditional (goalpost) view.
• The quality loss function recognizes that products
falling between specific limits are not all equal. The
four following statements summarize Taguchi’s
philosophy.
1. We cannot reduce cost without affecting quality.
2. We can improve quality without increasing cost.
3. We can reduce cost by improving quality.
4. We can reduce cost by reducing variation.
• When we do so, performance & quality will
automatically improve.
• Accordingly, quality is not defined by
specific limits, but rather on whether or not
it creates a financial loss to society. An
example given is a defective automobile
exhaust system creating air pollution.
• There are many types of quality loss
functions. Taguchi’s philosophy includes
three general ways to evaluate the
relationship between quality and
variability.
 Continual improvement view
Losses begin to accrue as soon as a quality As with the
characteristic of a product or service “goal post”
deviates from the nominal value. view of quality,
once the
specification
limits are
reached the
loss suddenly
becomes
positive and
constant,
regardless of
the deviation
from the
Quality is a predictable degree of uniformity nominal value
and dependability, at low cost and suited to beyond the
the market. specification
limits.
 Types of quality
• There are three types of quality:
– Quality of design / redesign
– Quality of conformance
– Quality of performance

• The above types of quality create the never

ending spiral of continuous improvement of
products, services or processes.
 Quality of design
– Quality of design / redesign focuses on
determining the quality characteristics of products
that are suited to the needs of a market, at a given
cost.
– That is, quality of design develops products from a
customer orientation.
– Quality of design studies begin with consumer
research, service call analysis, and sales call
analysis, and lead to the determination of a
product concept that meets the consumer’s needs
and requirement.
– Next, specifications are prepared for the product
concept.
 Quality of conformance

– Quality of conformance is the extent to

which a firm and its suppliers can produce
products with a predictable degree of
uniformity and dependability, at a cost that is
in keeping with the quality characteristics
determined in a quality-of-design study.
– The ultimate goal of process improvement
and innovation efforts is to create products
and services whose quality is so high that
consumers (both external and internal) extol
them.
 Quality-of-performance
– Quality of performance studies focus on
performance in the market place and
determining 1. how the quality characteristics
determined in quality-of-design studies, and 2.
improved & innovated in quality-of-
conformance studies.
– The major tools of quality-of-performance studies
are consumer research and sales/service call
analysis.
– These tools are used to study after-sales service,
maintenance, reliability, and logistical support, as
well as to determine why consumers do not
purchase the company’s products.
 Chain reaction of quality
• Several benefits of improving quality are:
– rework decreases
– productivity rises
– cost per good unit is decreased
– price can be cut
– workers’ morale goes up that leads to further
benefits as:
• less employee absenteeism
• less burnout,
• more interest in the job
• increased motivation to improve work.

• This is only called the chain reaction of

quality.
 Quality Management System

• Value adding activities

• Information flow
 Phases of quality control mgmt
• Quality control is a process employed to ensure a
certain level of quality in a product or service.
• The basic goal of quality control is to ensure that the
products, services, or processes provided meet specific
requirements and are dependable, satisfactory, and
fiscally sound.
• Phases of Quality Control Process are
1. Planning for Review
2. Conducting the Review
3. Taking actions on findings
4. Do continuous improvement
5. Identifying Critical Success Factors
6. Results and Benefits of the Project Quality Reviews
 Definition of quality mgmt
• The process that include all the activities of
the performing organization that determines
quality policy, objectives, and responsibilities
so that the product will satisfy the needs for
which it was undertaken.
• The three critical project quality management
processes are
1. Quality planning
2. Quality assurance
3. Quality control
 Juran’s (1904 born, Electrical engineer of Univ. of
Minnestova) contribution in the area of “quality
Management” can be studied under the heads
viz.
1. Internal customer
2. Cost of quality
3. Quality trilogy
4. Juran’s 10 steps
• INTERNAL CUSTOMER: Customer is not the “end
customer” only but each person along the chain
from ‘designer-to-final user’ is a supplier and a
customer.
COST OF QUALITY: Failure cost: scrape, rework,
corrective actions, warranty claims, customer
complaints and loss of customer. Appraisal cost:
inspections, investigations and compliance audits.
Prevention cost: training, preventive auditing,
process improvement implementation.
• JURAN’s Trilogy of quality planning, quality
improvement and quality control shows how an
organization can improve every aspect by better
understanding of relationship between processes
that plan, control and improve quality as well as
business results.
• QUALITY PLANNING: establish quality goals,
identify customers, determine customer needs,
develop products as per customer needs,
develop processes as per product features,
establish processes controls.

• QUALITY CONTROL: evaluate actual

performance, compare it with quality goals,
act on the difference, choose unit of
measurement & control subjects, interpret the
difference between actual V/S standard.
• QUALITY IMPROVEMENT: identify improvement
projects, establish infrastructure and project teams,
provide the teams with resources, training, and
motivation to diagnose the causes, stimulate
remedies & establish controls to hold the gains.
 Juran’s 10 steps of quality improvement
1. Build awareness of the need and opportunity for
improvement
2. Set goals for improvement
3. Organize to reach the goals
4. Provide training
5. Carryout projects to solve problem
6. Report progress
7. Give recognition
8. Communication result
9. Keep score
10.Maintain momentum by making annual
improvement part of the regular systems and
process of the company.
• W. Edward Deming has pioneered the use of
statistics and sampling methods those can be
applied even to non-manufacturing
environments for the sake of quality.
• Encouraged the adoption of systematic
approach to the problem termed as Deming’s
/ PDCA (plan, do, check, act) cycle.
 Deming’s 14 points for management
1. Create constancy of purpose for the
improvement of the product and service.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve
quality.
4. End the practice of awarding business on the
basis of price tag alone. Instead, minimize total
cost by working with a single supplier.
5. Improve constantly and forever every process
for planning, production and service.
6. Institute training and retraining.
7. Adopt and institute leadership.
8. Derive out fear.
9. Breakdown barriers between staff areas.
10.Eliminate slogans, exhortations and targets for
the work force.
11.Eliminate numerical quotas for work force and
numerical goals for management.
12.Remove barriers that rob people for
workmanship.
13.Institute a vigorous program of education and
self-improvement for everyone.
14.Put everybody in the company to work to
accomplish the transformation.
 Quality management
assistance tools:
• Ishikawa diagram,
• Pareto analysis,
• Pokka yoke (mistake proofing),
• Quality circles.
 Ishikawa diagram
• Ishikawa diagrams (also called fishbone diagrams,
herringbone diagrams, cause-and-effect diagrams,
or Fishikawa) are causal diagrams created by Kaoru
Ishikawa(1968).
• They show the causes of a specific event.
• Common uses of the Ishikawa diagram are product
design and quality defect prevention, to identify
potential factors causing an overall effect.
• Each cause / reason for imperfection is a source of
variation.
• Causes are usually grouped into major categories to
identify these sources of variation.
 Machines:
People: Any equipment,
anyone involved with computers, tools, etc.
the process required to accomplish
the job

Methods: Environment:
How the process is performed The conditions, such as
& specific requirements for Categories location, time, temperature,
normally
doing it, such as policies/ and culture in which the
include:
procedures/rules/regulations process operates

Measurements: Materials:
Data generated Raw materials,
from the process parts etc. used to
hat are used to produce the final
evaluate its quality product
• So, Ishikawa diagram, in fishbone shape, showing
factors of Equipment, Process, People, Materials,
Environment and Management, all affecting the overall
problem. Smaller arrows connect the sub-causes to
major causes.
CAUSE EFFECT
Equipment Process People

PROBLEM
Secondary
cause

Primary cause

Materials Environment Management

 The 6 Ms (used in The 7 Ps (used in The 5 Ss (used in
manufacturing marketing service
industry)
industry) industry)
1. Machine
(technology) 1. Product/Service 1. Samples
2. Method (process) 2. Price 2. Scheme
3. Material (Includes 3. Place 3. Synchronous
Raw Material,
Consumables and 4. Promotion 4. Skin.
Information.) 5. People/personnel 5. Search
4. Man Power (physical
work)/Mind Power 6. Positioning
(brain work) 7. Packaging
5. Measurement
(Inspection)
6. Milieu/Mother
Nature
(Environment)
 Pareto analysis
• Pareto analysis is a formal technique useful where
many possible courses of action are competing for
attention
• It is a creative way of looking at cause of problem by
stimulating thinking and organizing thoughts.
However, it is normally combined with other
analytical tools such as failure mode & effects
analysis and fault tree analysis for example.
This technique helps to
identify the top portion of
causes that need to be
addressed to resolve the
majority of problems.
 • Once the predominant causes are identified,
then tools like the Ishikawa diagram or Fish-
bone Analysis can be used to identify the root
causes of the problems.
• It is common to refer to pareto as "80/20"
rule, under the assumption that, in all
situations, 20% of causes determine 80% of
problems.

The application of the Pareto

analysis in risk management allows
management to focus on those risks
that have the most impact on the
project.
 Two Ways to Use the 80/20 Principle
• 80/20 Analysis: precise; quantitative; requires
investigation; provides facts
• 80/20 Thinking: fuzzy; qualitative; requires
thought; provides insight
The 80/20 Principle asserts that there is an inbuilt
imbalance between inputs & outputs, causes &
consequences, and effort & result.
It reflects relationships in nature, which are an
intricate mixture of order & disorder / regularity &
irregularity.
 What is 80/20 Principle?
• A typical pattern shows that
1. 80% of outputs result from 20% of inputs;
2. 80% of consequences flow from 20% of causes;
3. 80% of results come from 20% of effort.
• The 80/20 Principle is extremely versatile. "It can
be profitably applied to any industry
/organization, any function within an
organization /individual job". It gives maximum
power to the most productive forces and stop
the negative influences.
 What is 80/20 thinking?
• 80/20 Thinking, applied to daily life helps to
change behavior and to concentrate on the
most important 20%.
• Action resulting from 80/20 Thinking leads to
achieve ‘much more’ using ‘much less’.
• Never assume that answer is automatically
known! Take some time to think creatively
about it. "For every ounce of insight generated
quantitatively, there must be many pounds of
insight arrived intuitively”.
To engage in 80/20 Thinking, one must constantly ask
himself: What is the 20% that is leading to 80%?
 Steps to identify the important causes using 80/20 rule
• Form an explicit table listing the causes and their
frequency as a percentage.
• Arrange the rows in the decreasing order of importance of
the causes (i.e., the most important cause first)
• Add a cumulative percentage column to the table
• Plot with causes on x- and cumulative percentage on y-axis
• Join the above points to form a curve
• Plot (on the same graph) a bar graph with causes on x- and
percent frequency on y-axis
• Draw line at 80% on y-axis parallel to x-axis. Then drop the
line at the point of intersection with the curve on x-axis.
This point on the x-axis separates the important causes
(on the left) and trivial causes (on the right)
• Explicitly review the chart to ensure that at least 80% of
the causes are captured
Poka Yoke or mistake/error-proofing
•The term poka-yoke comes from the Japanese
words poka (accidental mistake) and yoke
(prevent). Also known as ‘mistake-proofing’ or
“error-proofing”.
•Shigeo Shingo developed poka-yoke while
working at Toyota in the 1960’s.
•It is for eliminating the possibility or
opportunity for passing on errors or making
mistakes in a process.
• Poka Yoke solutions are a simple and low cost
way to reduce rework.
This tool is Used to develop solutions,

1. To prevent mistakes before they

occur
2. To detect errors
3. To make it impossible for errors to be passed
on to the next step of the process.
4. To develop a new process or making the
existing process more effective and efficient.
Common Mistake- 3.5 inch diskettes cannot be inserted unless diskette is
oriented correctly. This is as far as a disk can be inserted
proofing Devices upside-down. The beveled corner of the diskette along
with the fact that the diskette is not square, prohibit
• Guide Pins incorrect orientation.

• Blinking
lights and
alarms
• Limit
switches
• Proximity
switches
• Counters
• Checklists EXAMPLE’s
 Quality circles
History
• Started in 1962 in Japan
• Kaoru Ishikawa is the creator of Quality Circles
• Movement in Japan is coordinated by Japanese
Union of Scientists and Engineers (JUSE)
• In India Quality Circles is promoted by QCFI
(Quality Circle Forum of India)
Three major quality concepts
• Quality circle is a form of participant management.
• Quality circle is a human resource devolvement
technique.
• Quality circle is a problem solving technique.
 Quality Circle definition
Quality Circle is a small group of 6 to 12
employees doing similar work, voluntarily &
regularly meet together to identify
improvements in their respective work areas
using proven techniques for analyzing & solving
work related problems coming in the way of
achieving and sustaining excellence leading to
mutual upliftment of employees as well as the
organization.
 Objectives & Benefits of QC
• Change in attitude • Increased in quality
• Self development consciousness of
• Development of team employees
spirit development
• Improved organizational • Promote individuals
culture self-development
• Help in improving the • Promote team work
productivity and fellowship
• Promote individuals self- • Improve over all
development company performance
• Enhanced interest in and corporate image
jobs.
 Functions of Structure
quality circle Element of
quality circle
• Encourage a team culture and
team environment;
• A steering
• Encourage the flow of new
ideas; committee
• Improve customer relations • Coordinator
and service delivery; • Facilitator
• Improve levels of • Circle leader
communication;
• Improve operational • Circle members
efficiency; and
• Create problem prevention
attitudes.
Launching quality circle Process of operation
• Expose middle level
executives to the • Problem selection
concept. • Problem identification
• Explain the concept to • Problem Analysis
the employees & invite
them to volunteer as • Generate alternative
members of quality solutions
circle.
• Prepare plan of action
• Nominate senior officers
as facilitators. • Implementation of
• From a steering solution
committee. • Select the most
• Arrange the necessary appropriate solution
facilities
 Problem analysis Tools for data Basic quality
• Select most analysis problem Solving
appropriate • Bar Charts
solution • Brain storming
• Histograms
• Generate • Pareto
• Circle
alternative Diagrams
graphs
solutions • Cause & Effect
• Scatter
• Implementation Analysis
grams
of solution • Data Collection
• Control
• Prepare plan for Charts
action
 Total quality management
• TQM (Quality Management tool for operation
/ production management) is an integrative
philosophy of management for continuously
improving the quality of products and
processes.
• TQM functions on the premise that the quality
of product & process is the responsibility of
everyone involved with the creation/
consumption of the products/ services offered
by an organization.
 TOTAL QUALITY MANAGEMENT (TQM)
• Focuses on managing the total organization to deliver
quality to customers.
• Requires a shift from an inspection-oriented approach
to employee involvement in the prevention of quality
problems.
TQM philosophy can be summarized as…
1.Focus on Customer: Identify & meet customer needs, Stay
tuned to changing needs, e.g. fashion styles.
2.Continuous Improvement: Continuous learning & problem
solving, e.g. Kaizen, 6 sigma.
3.Quality at the Source: Prevention & problem solving v/s
inspection.
4.Employee Empowerment: Empower all employees;
external & internal customers.
5.Understanding Quality Tools: Ongoing training on
analysis, assessment, and correction, & implementation
tools.
6.Team Approach: Teams (of 8 to 10 ) formed around
processes, Meet weekly to analyze and solve problems.
7.Benchmarking: Studying practices of best companies.
8.Managing Supplier Quality: Certifying suppliers v/s receiving
inspection.
 Total Quality Management (TQM) is a
management approach that focuses on the
organization as a system, with an emphasis on
1. Teams,
2. Processes,
3. Statistics,
4. Continuous
improvement
5. Delivering products &
services that meet/
exceed customer
expectations.
 Ways of Improving Quality
Plan-Do-Study-Act Repeated Cycle (PDSA)
• Plan: Evaluate current process, Collect procedures, data,
identify problems, Develop an improvement plan,
performance objectives
• Do: Implement the plan – trial basis
• Study: Collect data and evaluate against objectives
• Act: Communicate the results from trial, If successful,
implement new process
• Considering the practices of TQM as discussed in
“six empirical studies” of Cua, McKone, &
Schroeder who have identified the nine common
TQM practices as:
1. Cross-functional (where multiple skills/disciplines
contribute) product design,
2. Process management,
3. Supplier quality management,
4. Customer involvement,
5. Information and feedback,
6. Committed leadership,
7. Strategic planning,
8. Cross-functional training, and,
9. Employee involvement.
 Kaizen
• Kaizen ( Japanese word) for "improvement" /
"change for the best", refers to philosophy or
practices that focus upon continuous
improvement of processes in Manufacturing,
Engineering, and, Business Management.
• When used in the business sense and applied to
the workplace, kaizen refers to activities that
continually improve all functions and involves all
employees from the CEO to the ‘assembly line’
worker.
 The five step Kaizen Movement
Seiri/SORT
Shitsuke/ Seiton/
SUSTAIN SET IN ORDER

Seiketsu /
5S’s
STANDARDISE Seiso/SHINE

Kaizen applies to processes, like purchasing, logistics, waste

management etc in environments even outside the
business and productivity also.
Generally, it is applied in industries like 1. Healthcare, 2.
Psychotherapy, 3. Life-coaching, 4. Government, 5. Banking
etc.
 5 S’
• Sort - Sorting is a step that involves selecting what is needed
to complete the job and removing everything else from work
area.
• Set In Order / Straighten - This step customizes workstation
and surrounding area to meet ‘work area requirement’. And
arranging remaining items such that to select, use, and
return to their proper location.
• Shine / Sweep - Finding the reason why things become dirty.
Emphasis is on the removal of dust, dirt, and grime to reveal
the source and eliminate it.
• Standardize – it creates a work area free of checklists; if
good standards are put in place it will be easier to maintain
& continue improving.
• Sustain - Sustaining is the end result of how well we have
performed the previous four S's. In the sustainability stage,
thinking of ways to eliminate effort in maintaining an area is
carried-out.
 SIX SIGMA
• Sigma (the Greek letter σ) is a term in statistics
that measures standard deviation.
• Six sigma is a statistical concept that measures a
process in terms of defects. Achieving six sigma
means processes are delivering only 3-4 defects
per million opportunities (DPMO)[how far the
process deviates from perfection /working nearly
perfectly].
• The sigma level of a process is calculated in terms
of the number of defects in ratio to the number
of opportunities for defects.
ISO-9001 basically requires…..
I SO 9 0 0 1
System requirements of ‘ISO 9001-2008’ Standard Quality
Management’ meets International Standard requirements
adopted by most Industrialized Nations.
What are ISO 9001:2008 quality management system
standards?

ISO 9001:2008 certification is only achieved after an

independent audit determines that a company’s quality
management system complies with a defined set of
international standards and best practices for quality
management.
Receiving the certification acknowledges that the company
demonstrates an ongoing commitment to quality, continual
improvement, and dedication to its clients’ needs.
• The documentation of ISO9001-2008 requires the
following:
1) Policies and Objectives for each Standard
requirement (Quality Manual).
2) Procedures for each section of the Standard,
including Design and Development (Procedure
Manual).
3) A set of ‘State of the Art’ Control Forms, supporting
records and verification requirements.
4) Instruction Guide “How to Implement”.
5) Quality Policy and Mission Statement.
6) Certificate for first party Self Declaration of
Conformance.
7) CD Rom, in MS Word 7.0, contains all the above
documentation.
• ISO 9001:2008 specifies requirements for a
quality management system where an
organization
 needs to demonstrate its ability to consistently
provide product that meets customer and
applicable statutory and regulatory requirements,
and
 aims to enhance customer satisfaction through
the effective application of the system, including
processes for continual improvement of the
system and the assurance of conformity to
customer and applicable statutory and regulatory
requirements.