Module 5

Quality management: Introduction; Quality characteristics of goods and services; Tools and
techniques for quality improvement: check sheets, histogram, scatter diagram, cause and effect
diagram, Pareto chart, process diagram, statistical process control charts; Quality assurance;
Total quality management (TQM) model; Service quality, Concept of Six Sigma and its
application. Juran’s quality trilogy, Deming’s 14 principles, PDCA cycle, Quality circles,
Quality improvement and cost reduction – QC tools, Introduction to the current ISO for
Production Management. Contribution of Quality Gurus.
Introduction
 Quality management refers to the process of overseeing different activities and tasks
within an organization to ensure that products and services offered, as well as the means
used to achieve them, are consistent.
 Operations Managers are concerned with the quality of the output of their operations
system. This quality may be associated with the reliability of the product or service, the
he level of after sales service provided, the design of the product, and the consistency
of delivery of the product or service
Quality benchmarks may be achieved by using one or more of the following strategies
 Quality control (where the quality is monitored during the production or the service
provision process).
 Quality assurance (where the organization achieves certification that is dependent upon
them achieving specified levels of quality in the actual production of the good or
service).
 Total quality management (where the organization applies both quality control and
quality assurance to their production or provision processes)
Types of Quality Management Approaches
There are two predominant types of quality management approaches
 Statistical Process Control (SPC)
 Total Quality Management (TQM)
Statistical Process Control (SPC)
SPC is the application of statistical techniques to control work processes in order to detect
production of defective items. The steps involved in SPC include:
 Define the characteristics of a high quality output.
 Break down the various work activities into individual activities required to produce a
high quality output.
 Develop a standard for each work activity.
 Communicate specific performance expectations for each task with employees.
 Establish check sheets and collect data for each task activity.
 Evaluate employee progress against standards at frequent intervals.
This process relies upon the Plan, Do, Check, Act (PDCA) approach to production. This
involves planning to achieve set standards of performance and identifying areas to be
improved, implementing these strategies, measuring performance and carrying out
corrective action
Total Quality Management (TQM)
 TQM aims to improve quality and productivity by striving to perfect the entire
production process. TQM stresses coordination between departments, especially
product design, purchasing, sales and service so that all groups are working together. It
is based on promoting continuous improvement in the quality of all the processes
involved.
WHAT IS QUALITY?

characteristics of quality
 Performance
 Features
 Reliability
 compatibility.
 Durability
 Serviceability
 Attractiveness
 Perceived quality
Tools and techniques for quality improvement
 Cause and effect diagram or the Fishbone diagram
 Control chart
 Pareto chart
 Check sheet
 Histogram
 Scatter diagram
Cause and effect diagram or the Fishbone diagram
 Developed by Kaoru Ishikawa of Japan. To find out probable or potential that
contributes to problem/effect. The brainstorming technique is used to identify potential
causes.
 4M or 6M factors analysis done in brainstorming (Man, Machine, Method, Material,
Measurement, and Mother nature ).
 Helps to identify the root cause of the problem.

Control Chart
 A control chart is used to maintain the quality assurance of a product or service. It takes
all historical data into account to find an average or mean line of quality, which is drawn
out on a graph. Other limits are added to the chart (both upper and lower) using data to
see what type of variations are taking place. Once the variations have been listed out on
 the graph, quality management professionals or quality assurance professionals can find
the causes of what is affecting the process, both positively and negatively.
Pareto Chart
 A Pareto chart is a graphical representation of data that highlights the most significant
factors contributing to a particular problem or situation. Its also known as the 80/20
rule.
 The chart consists of a bar graph and a line graph. The bar graph shows the frequency
or count of each factor, arranged in descending order from left to right. The line graph
represents the cumulative percentage of the total count. The vertical axis on the left side
of the chart represents the frequency or count, while the vertical axis on the right side
represents the cumulative percentage.
Check Sheet
 A check sheet is a quality management and assurance tool used to find the frequency
of an error or problem or a specific value.
 Check sheets are a simple and effective tool used to collect data and track performance
over time. They are also known as tally sheets, scorecards, or tick sheets. Check sheets
are designed to help organizations identify problems and opportunities for improvement
by collecting data on specific processes or activities
Histogram
 A histogram is a graphical representation of the distribution of a dataset. It is a type of
bar graph that represents the frequency of data values in intervals called bins. The x-
axis represents the range of values for the variable being measured, while the y-axis
represents the frequency or count of observations falling within each bin.
Scatter Diagram
A scatter diagram, also known as a scatter plot, is a graphical representation of the
relationship between two variables. It is used to analyze the correlation or association
between the variables. The horizontal axis represents one variable, while the vertical axis
represents the other variable. Each point on the graph represents a pair of values for the two
variables being plotted
Quality assurance
 Quality assurance (QA) is any systematic process of determining whether a product or
service meets specified requirements.
 QA establishes and maintains set requirements for developing or manufacturing reliable
products. A quality assurance system is meant to increase customer confidence and a
company's credibility, while also improving work processes and efficiency, and it
enables a company to better compete with others.
TOTAL QUALITY MANAGEMENT
 TQM is defined as both philosophy and a set of guiding principles that represent the
foundation of continuously improving organization. It is the application of quantitative
methods and human resources to improve all the process within the organization and
exceed customer needs now and in the future.
 Total Quality Management is an effective system for integrating the quality
development, quality maintenance and quality improvement efforts of various groups
in an organization continuously, so as to enable marketing, engineering, production and
service at the most economic levels which allow for full customer satisfaction.
TQM Basic Concepts
Management Involvement – Participate in quality program, develop quality council, direct
participation
2. Focus on customer – who is the customer – internal and external, voice of the customer,
do it right first time and every time.
3. Involvement and utilization of entire work force – All levels of management
4. Continuous improvement – Quality never stops, placing orders, bill errors, delivery,
minimize wastage and scrap etc.
5. Treating suppliers as partners – no business exists without suppliers.
6. Performance measures – creating accountability in all levels
Barriers in TQM Implementation
1. Lack of commitment from top management – avoiding training for self and employees,
meetings
2. Lack of employee involvement – particularly at managerial level, supportive attitude,
trust
3. Lack of team work – Co-operation and co-ordination within workers.
4. Lack of customer oriented approach – Know the customer need, demand, taste,
shortcomings
5. Lack of attention to feedback and complaints –
6. Supplier control – in terms of materials, cost, quality, delivery etc
7. Review quality procedures – up gradation, correct past errors. Learn from experience.

Five Pillars of TQM

1. Product
2. Process
3. System
4. People
5. Leadership

Benefits of TQM
Customer satisfaction oriented benefits :
1. Improvement in product quality
2. Improvement in product design
3. Improvement in production flow
4. Improvement in employee morale and quality consciousness
5. Improvement in product service
6. Improvement in market place acceptance
Economic improvement oriented benefits
1. Reduction in operating costs
2. Reduction in operating losses
3. Reduction in field service costs
4. Reduction in liability exposure
Service quality
 Service quality refers to the degree of excellence or superiority of service provided by
a business or organization. It is a measure of how well an organization meets or exceeds
customer expectations and requirements. Service quality is a critical factor in the
success of any business, as it directly impacts customer satisfaction, loyalty, and
retention.
Characteristics of service quality
 Reliability: This refers to the ability of a business to provide consistent and dependable
service. For example, a restaurant that always serves hot and fresh food on time, or an
airline that consistently runs flights on schedule.
 Responsiveness: This refers to the promptness and willingness of a business to address
customer needs and concerns. For example, a hotel that quickly responds to guest
requests for extra towels or pillows.
 Assurance: This refers to the knowledge, competence, and professionalism of the
employees providing the service. For example, a bank with knowledgeable and friendly
tellers who can answer customers' questions about their accounts.
 Empathy: This refers to the ability of a business to understand and relate to its
customers' needs and feelings. For example, a healthcare provider that shows
compassion and understanding towards patients who are going through difficult times.
  Tangibles: This refers to the physical aspects of the service environment that contribute
to its quality. For example, a spa with comfortable massage tables and relaxing music.

Overall, service quality is essential for businesses that want to build strong relationships
with their customers and achieve long-term success.
Six Sigma
 Six Sigma is a methodology that provides businesses with the tools to improve the
capability of their business processes. This increase in performance and decrease in
process variation leads to defect reduction and vast improvement in profits, employee
morale and quality of product
 Other words
 Six Sigma is a well-structured, data-driven methodology for eliminating defects, waste,
or quality control problems of all kinds in manufacturing, service delivery,
management, and other business activities. Six Sigma methodology is based on the
combination of well established statistical quality control techniques, simple and
advanced data analysis methods, and the systematic training of all personnel at every
level in the organization involved in the activity or process targeted by Six Sigma.
Objectives of six sigma
1. To give good performance and reliability.
2. To provide value to the end customer.
3. Reducing or minimizing defects in any type of process (reducing defects to less than 3.4
million operations).
4. To eliminate wasteful practices i.e. the practices which do not provide any value to the
process, should be eliminated.
5. Providing after sales service quality.
6. Improving the quality of the product.
7. Satisfying both internal and external customers.
Principles of six sigma
1. The use of pro active thinking to achieve perfection.
2. Top priority should always be service towards customer, stress towards understanding their
needs and expectations and trying to fulfill them.
3. Boundary less collaboration, supported by data and fact driven management.
4. Failure is allowed but through risk management techniques.
six sigma methodology
 The main function of the six sigma methodology involves, following the measurement
based strategy for checking process improvement and variation reduction. This is done
by using six sigma sub methodologies: DMAIC (define, measure, analyze, improve,
control) and DMADV (define, measure, analyze, design, verify).
Six sigma organizational architecture
1. Quality leader or quality manager (QL/QM) – The main responsibilities of a quality
manager/leader are :-
• Representing the needs of the customers.
• Aiming to improve the operational working of the organization.
• Maintaining high quality standards.
2. Process Owner (PO) – As the name suggests, process owners are the individuals who are
responsible for the working of a certain specific process.
3. Master Black Belt (MBB) –
• Work with the owners of the process and are assigned to a specific area or a function of a
business or an organization.
• Responsible for setting up quality objectives and targets, determining plans, tracking progress
and providing education.
• In good six sigma organizations, process owners and the master black belts work in
combination with each other, sharing information daily.
4. Black Belt (BB) –
• Are referred to as the back – bone of a good six sigma organization.
• Play a key role in six sigma quality initiative.
• Lead quality projects.
• Work full time until the project is completed.
• Capable of completing about four to six projects per year.
• Also coach green belts.
5. Green Belt (GB) –
• Employees trained in six sigma, spend some time completing projects.
• Can spend 10% to 15% of their time anywhere on their projects – depending on the work
load.

Benefits of Six sigma

1. Transaction involving six sigma provides services and products, free from defects.
2. Lower production, inspection and warranty costs, with tension free conditions for working.
3. Greater satisfaction of the customer, resulting in better place and better reputation in the
market.
4. Moving to zero defect (Zero variation), which automatically results in achievement of
excellence in the process.
The Six Sigma Process of the DMAIC method has five phases:
 Each of the above phases of business transformation has several steps:
 DEFINE
The Six Sigma process begins with a customer-centric approach.

Step 1: The business problem is defined from the customer perspective.

Step 2: Goals are set. What do you want to achieve? What are the resources you will use to
achieve the goals?
Step 3: Map the process. Verify with the stakeholders that you are on the right track.
 MEASURE
The second phase is focused on the metrics of the project and the tools used in the
measurement. How can you improve? How can you quantify this?

Step 1: Measure your problem in numbers or with supporting data.

Step 2: Define performance yardstick. Fix the limits for "Y."
Step 3: Evaluate the measurement system to be used. Can it help you achieve your
outcome?
 ANALYZE
The third phase analyzes the process to discover the influencing variables.

Step 1: Determine if your process is efficient and effective. Does the process help achieve
what you need?
Step 2: Quantify your goals in numbers. For instance, reduce defective goods by 20%.
Step 3: Identify variations using historical data.
IMPROVE
 This process investigates how the changes in "X" impact "Y." This phase is where you
identify how you can improve the process implementation.
 Step 1: Identify possible reasons. Test to identify which of the "X" variables identified
in Process III influence "Y."

Step2: Discover relationships between the variables.

Step 3: Establish process tolerance, defined as the precise values that certain variables
can have, and still fall within acceptable boundaries, for instance, the quality of any
given product. Which boundaries need X to hold Y within specifications? What
operating conditions can impact the outcome? Process tolerances can be achieved by
using tools like robust optimization and validation set.
CONTROL
 In this final phase, you determine that the performance objective identified in the
previous phase is well implemented and that the designed improvements are
sustainable.

Step 1: Validate the measurement system to be used.

Step 2: Establish process capability. Is the goal being met? For instance, will the goal
of reducing defective goods by 20 percent be achieved?

Step 3: Once the previous step is satisfied, implement the process.

Top 7 Six Sigma Companies
The top companies that implemented six sigma are as follows: -
 3M
 McKesson Business
 Abbot
 Textron
 Chevron
 Xerox
 BAE Systems
Major Benefits of Six Sigma Methods in Companies
 You'll cut down on waste
 Your effectiveness will rise.
 You'll make fewer mistakes
 You'll lower the legal risk for your business.
  It may be used in any sector.
 You'll generate more income
Juran’s quality trilogy

Dr. Joseph Juran was one of the foremost experts in the area of quality. Juran believed that to
achieve quality, you must start with organizational goals, policies, and vision. Converting
organizational goals into results is accomplished through three managerial processes called the
JURAN TRILOGY: Quality Planning, Quality Control, and Quality Improvement
Juran's 'Quality into following key elements
Quality Planning
 Identify who are the customers
 Determine the needs of those customers.
 Translate those needs into our language.
 Develop a product that can respond to those needs.
 Optimize the product features so as to meet our needs and customers needs.
Quality Improvement
 Develop a process which is able to produce the product.
 Optimize the process
Quality Control
 Prove that the process can produce the product under operating conditions.
 Transfer the process to operations.
Deming’s 14 Points with Examples

Create Constancy of Purpose: Constancy of purpose is about prioritizing continuous

improvement over the long term. Improvement isn’t just something you should do ad-hoc when
it suits you; it should be core to everything you do and one of your highest priorities.

Adopt the New Philosophy: Adopting the new philosophy is about striving for perfect
quality. You must no longer tolerate commonly accepted levels of mistakes, people who don’t
know what they’re doing, defects, and inadequate supervision.
Stop Depending on Inspections

Stop depending on inspections to improve quality and build quality into your processes instead.
An inspection doesn’t improve quality because it happens too late. At the point of inspection,
the quality of the product already exists, good or bad, so all an inspection does is find an
existing lack of quality.

Focus on Total Cost, Not Price Tag

Many companies purchase goods and services based solely on price alone. Similarly, many
organizations will source identical items from different suppliers and pit those suppliers against
each other to drive down the price.
Improve Constantly and Forever

Continuous improvement isn’t something you should do when it’s convenient. You should
commit to continuous improvement always and forever.

Institute On The Job Training

Without adequate training, you are wasting the abilities of your employees. Not only that, you
are holding them back from taking more pride in their work. People can do amazing things if
given the opportunity.

Institute Leadership

Institute leadership is one of the most controversial of Deming’s 14 Points as it is the opposite
of what most managers do today. Most managers today look for their employees to hit targets,
react to problems as they happen, and then hold them accountable when things go wrong. Their
idea of continuous improvement is simply to set higher targets each year.

Drive Out Fear

A culture of fear is not conducive to great work. Employees should not be scared of:

 Expressing a different opinion to the CEO.

 Ridicule.
 Relaying bad news or mistakes.
 Taking action on long-term goals, even if it means a hit to short-term goals.

Creating a fearless and blameless culture will increase product quality and employee retention.

Break Down Barriers

This concerns breaking down the barriers between departments. Instead of just improving
processes within each department, also focus on improving processes across departments.

Ways to achieve this include:

 Create internal customers by recognizing that each department has each other
department as its customer.
 Build a shared vision.
 Use cross-functional teams\

Eliminate Unclear Slogans

You have probably encountered slogans such as:

 “Take pride in what you do.”

 “Always go the extra mile.”
Deming says that you should get rid of these types of slogans as they can be detrimental to
performance and quality. Why? Because quality is being held back by the system, not
employees, and the system is the responsibility of management.

Eliminate Management by Objective

This principle is similar to principle 7, Institute Leadership, and also controversial. Your aim
should be to replace management by objective with leadership.

All too often, management sets numerical targets, frequently based on the average output of
employees. This creates a twofold problem. Half your team won’t be able to hit the target, and
the other half will find it too easy. Overall, this has the effect of reducing morale.
Remove Barriers to Work Pride

Remove the barriers that stop your team from taking pride in their work. You can do this by
switching your focus from volume to quality of output and process.

Build into your processes the ability for workers and management to improve the quality of the
processes they use.

Implement Education and Self-Improvement

Implement a vigorous program of training and self-improvement to improve the skills of all
workers and managers.

Building your team’s skills will increase employee retention, make them better able to improve
processes, and make them more adaptable to future change.

Make Transformation Everyone’s Job

The final point of Deming’s 14 Points is that transformation should be the job of everyone in
the organization.

Although your team can’t produce quality better than the constraints the management system
places on them, it is everyone’s job to work together to transform, not just managers.

What Does the PDCA Cycle Mean?

Explained briefly, the Plan-Do-Check-Act cycle is a model for carrying out change. It is an
essential part of the Lean manufacturing philosophy and a key prerequisite for continuous
improvement of people and processes.
First proposed by Walter Shewhart and later developed by William Deming, the PDCA cycle
became a widespread framework for constant improvements in manufacturing, management,
and other areas.
PDCA is a simple four-stage method that enables teams to avoid recurring mistakes and
improve processes.
As we've explained the PDCA's meaning, let’s get deeper into the topic and learn more about
the cycle.
Brief History of PDCA
The American statistician and physicist Walter Shewhart is considered the father of PDCA. He
was passionate about statistical analysis and quality improvement, and he built the foundation
of PDCA recorded in numerous publications.
At first, he developed a 3-step repeating cycle for process improvement also known as "the
Shewhart cycle". The three phases of this cycle were:

1. specify
2. Produce
3. Inspect

Years later, inspired by Shewhart’s ideas, William Deming expanded the model into a learning
and improvement cycle consisting of the following steps:

1. Design
2. Make
3. Sell
4. Test

PLAN
At this stage, you will literally plan what needs to be done. Depending on the project's size,
planning can take a major part of your team’s efforts. It will usually consist of smaller steps so
that you can build a proper plan with fewer possibilities of failure.
Before you move to the next stage, you need to be sure that you answered some basic concerns:

 What is the core problem we need to solve?

  What resources do we need?
 What resources do we have?
 What is the best solution for fixing the problem with the available resources?
 In what conditions will the plan be considered successful? What are the goals?
DO
After you have agreed on the plan, it is time to take action. At this stage, you will apply
everything that has been considered during the previous stage.
Be aware that unpredicted problems may occur at this phase. This is why, in a perfect situation,
you may first try to incorporate your plan on a small scale and in a controlled environment.
Standardization is something that will definitely help your team apply the plan smoothly. Make
sure that everybody knows their roles and responsibilities.

CHECK
This is probably the most important stage of the PDCA cycle. If you want to clarify your plan,
avoid recurring mistakes, and apply continuous improvement successfully, you need to pay
enough attention to the CHECK phase.
This is the time to audit your plan’s execution and see if your initial plan actually worked.
Moreover, your team will be able to identify problematic parts of the current process and
eliminate them in the future. If something goes wrong during the process, you need to analyze
it and find the root cause of the problems.

ACT
Finally, you arrive at the last stage of the Plan-Do-Check-Act cycle. Previously, you developed,
applied, and checked your plan. Now, you need to act.
If everything seems perfect and your team managed to achieve the original goals, then you can
proceed and apply your initial plan.
It can be appropriate to adopt the whole plan if objectives are met. Respectively, your PDCA
model will become the new standard baseline. However, every time you repeat a standardized
plan, remind your team to go through all steps again and try to improve carefully.