Quality

Management
Techniques: AEM 6102

By
Dr. Prianka Binte Zaman
Associate Professor
Department of IPE, BUET
Reducing the Cost of Quality
 The aim of Quality management is to minimize the cost of
quality.
 It makes no difference if this is done by reducing all
components or by increasing some and decreasing others
enough to lower the total cost.
 To have a significant impact on the total cost; the cost of
failure must be reduced, and the usual strategy for achieving
this objective is to spend more on prevention.

 “It is always cheaper to do a job right the first time than

to do it over”.
Juran Model-
The Original COQ model

Total
Failure Quality
Cost Per Good Unit of Product

Costs Costs

Minimum
cost

Cost of Appraisal
Plus Prevention

0 100%
(100% defective) Quality Level (100% good)
Definition of COQ model figure
 In this case, the costs of prevention and appraisal are zero with a
100% failure rate.
 The costs of prevention & appraisal rise to infinity as perfection (no
failures) is reached.
 This hypothetical model shows that total quality cost is higher when
quality is low and falls as quality improves.
 According to the model, a company greatly reduce failure costs
by adding relatively low-cost prevention and appraisal
measures.
 As prevention and appraisal expenditures continue to rise, the rate
of improvement begins to diminish until additional expenditures
produce little decrease in failure.
 The model suggests that a relationship exists between
conformance and nonconformance quality costs, with a
minimal total quality cost at the optimal balance.
 Implicit in this model is the trade off of conformance costs for
nonconformance costs to achieve the lowest total quality cost.
Definition of COQ model figure
 According to this model, beyond the point of minimum cost, any
further very small scale improvement will require too high
investment in prevention activities and thus increase in total cost.
Hence, 100 % good quality level may not be of interest to the
company in terms of cost. If this is true, then zero defect concept is
not economically beneficial.

 Nevertheless, other experts of quality do not completely agree with

this explanation. They view that minimum cost is achieved at the
point of “100% good quality”, as shown in the following Figure.

 In this alternative view, prevention and appraisal cost flattens out

after a certain degree of perfectionism is achieved. Hence, total
cost does not increase any more.
Quality Cost-Alternative View

Total
Failure Quality
Cost Per Good Unit of Product

Costs Costs

Minimum
cost

Cost of Appraisal
Plus Prevention

0 100%
(100% defective) Quality Level (100% good)
 Assignment 1:

“Optimum Quality cost and zero

defects: are they contradictory
concept?”

Date of submission:07/08/2023
Evolution of Modern Concept
The complete evolution of Quality may be divided in to four domains:
Stage 3:
Stage 1: Stage 2: Stage 4:
Quality
Inspection- Statistical Total Quality
Stages Assurance
based Quality Management
(QA)
quality Control (SQC) (TQM)

Measurement Developing a Responsibility for all

Statistical
of capable process and continuous
process control
specifications for advance improvement,
Objective for analyzing
for assurance, Internal and
process
conformance documentation external customer
capability
and audit satisfaction
Top management
Quality Quality control leadership with
Responsibility control and and production involvement of all,
All departments
for quality production department including external
department stakeholders( e.g.
supplier)
Quality Assurance
Quality Assurance methodology has a defined cycle called PDCA cycle or Deming
cycle. The phases of this cycle are:
•Plan
•Do
•Check
•Act

These above steps are repeated to ensure that processes followed in the organization
are evaluated and improved on a periodic basis. Let's look into the above QA Process
steps in detail -
Plan - Organization should plan and establish the process related objectives and
determine the processes that are required to deliver a high-Quality end product.
Do - Development and testing of Processes and also "do" changes in the processes
Check - Monitoring of processes, modify the processes, and check whether it meets
the predetermined objectives
Act - A Quality Assurance tester should implement actions that are necessary to
achieve improvements in the processes
An organization must use Quality Assurance to ensure that the product is designed
and implemented with correct procedures. This helps reduce problems and errors, in
the final product.
Quality Control
Quality control popularly abbreviated as QC. It is a process used
to ensure quality in a product or a service. It does not deal
with the processes used to create a product; rather it examines
the quality of the "end products" and the final outcome.

The main aim of Quality control is to check whether the products

meet the specifications and requirements of the customer. If an
issue or problem is identified, it needs to be fixed before delivery
to the customer.

QC also evaluates people on their quality level skill sets and

imparts training and certifications. This evaluation is required for
the service based organization and helps provide "perfect" service
to the customers.
Quality Guru’s
W. Edwards Deming - 14 point prescription for quality
Joseph M. Juran -Quality is fitness for use,
-Quality Trilogy
Quality Planning
Quality Improvement
Quality Control
Walter A. Shewhart – Control charts
Phillip Crosby - quality is free, zero defects
Kaoru Ishikawa - Quality circles,
-Cause-and-effect diagram
Shigeo Shingo – ZQC, TPM, Pokayoke
Dr. Edward Deming
 Dr. Deming is the most widely
recognized quality guru.
 He was a professor of statistics in the
New York University.
 He was invited to Japan after the war II
 He was regarded by the Japanese as the
chief architect of their industrial success
 PDCA cycle
 Continuous improvement (Kaizen)
 14 points of management principle
Deming’s 14 Point Principle
1. Create a constant purpose toward improvement.
 Plan for quality in the long term.
 Resist reacting with short-term solutions
 Don't just do the same things better, find better things to do.
 Predict and prepare for future challenges, and always have the goal
of getting better
2. Adopt the new philosophy.
 Embrace quality throughout the organization.
 Put your customers' needs first, rather than react to competitive
pressure and design products and services to meet those needs
 Be prepared for a major change in the way business is done
 It's about leading not simply managing
 Create your quality vision, and implement it
Deming’s 14 Point Principle(contd…)
3. Switch from defect detection to defect prevention
 Inspections are costly and unreliable and they don't improve
quality, they merely find a lack of quality
 Build quality into the process from start to finish
 Don't just find what you did wrong, eliminate the "wrongs"
altogether
 Use statistical control methods not physical inspections alone to
prove that the process is working.
4. Use a single supplier for any one item.
 Quality relies on consistency the less variation you have in the
input, the less variation you'll have in the output
 Look at suppliers as your partners in quality
 Encourage them to spend time improving their own quality they
shouldn't compete for your business based on price alone
 Use quality statistics to ensure that suppliers meet your quality
standards
Deming’s 14 Point Principle(contd…)
5. Improve constantly and forever.

 Continuously improve your systems and processes.

 Deming promoted the Plan-Do-Check-Act approach to process
analysis and improvement.
 Emphasize training and education so everyone can do their jobs
better.
 Use kaizen as a model to reduce waste and to improve productivity,
effectiveness, and safety.
6. Institute modern methods of training on the job.

 Train for consistency to help reduce variation.

 Build a foundation of common knowledge.
 Allow workers to understand their roles in the "big picture."
 Encourage staff to learn from one another, and provide a culture
and environment for effective teamwork.
Deming’s 14 Point Principle(contd…)
7. Implement leadership.
 Expect your supervisors and managers to understand their workers
and the processes they use.
 Be a coach instead of a policeman.
 Figure out what each person actually needs to do his or her best.
 Find ways to reach full potential, and don't just focus on meeting
targets and quotas.
8. Eliminate fear.
 Allow people to perform at their best by ensuring that they're not
afraid to express ideas or concerns.
 Let everyone know that the goal is to achieve high quality by doing
more things right and that you're not interested in blaming people
when mistakes happen.
 Make workers feel valued, and encourage them to look for better
ways to do things.
Deming’s 14 Point Principle(contd…)
9. Break down barriers between departments.

 Build the "internal customer" concept recognize that each

department or function serves other departments that use their
output.
 Build a shared vision.
 Focus on collaboration and consensus instead of compromise.
10. Get rid of unclear slogans/ Do not have unrealistic targets.

 Do not place people under unnecessary pressure by asking them to

do things which are not achievable.
 Let people know exactly what you want, don't make them guess.
 "Excellence in service" is short and memorable, but what does it
mean? How is it achieved?
 Outline your expectations, and then praise people face-to-face for
doing good work .
Deming’s 14 Point Principle(contd…)
11. Eliminate quotas and numerical targets
 Look at how the process is carried out, not just numerical targets.
 Deming said that production targets encourage high output and low
quality.
 Provide support and resources so that production levels and quality
are high and achievable.
 Measure the process rather than the people behind the process.
12. Remove barriers to pride of workmanship.

 Allow everyone to take pride in their work without being rated or

compared.
 Treat workers the same, and don't make them compete with other
workers for monetary or other rewards.
 Over time, the quality system will naturally raise the level of
everyone's work to an equally high level.
Deming’s 14 Point Principle(contd…)
13. Implement education and self-improvement.

 Improve the current skills of workers.

 Encourage people to learn new skills to prepare for future changes
and challenges.
 Build skills to make your workforce more adaptable to change, and
better able to find and achieve improvements.
14. Make "transformation" everyone's job.

 Improve your overall organization by having each person take a

step towards quality.
 Analyze each small step, and understand how it fits into the larger
picture.
 Use effective change management principles to introduce the new
philosophy and ideas in Deming's 14 points.
Philip Crosby
 Born in West Virginia in 1926.
 After World War II and Korean War, he has worked for Crosley, Martin
Merietta and ITT as Corporate Vice president for 14 yrs.
 Associates, Inc. 1979- his consulting firm- served hundreds of company.
 Career IV, Associates II, Inc., Quality College-1991
 His book- “Quality without Tears”, “Quality is Free”.
 He popularized the idea- “Cost of Poor Quality”
-Figuring out how much it really costs to do things badly.
 “Zero defect”- from his experience on an assembly line.
 Died August 2001-but his legacy will live on in better quality in
thousands of organization.
Philip Crosby: Four absolutes
of quality management
1. Quality is defined as conformance to requirements, not as
goodness or elegance

 The objective of quality improvement program is to get everyone to

do it right the first time.
 To achieve this an organization must get its employees to
understand the requirements clearly.
 The management has to perform three tasks to achieve this:
 Organization should establish the requirements that
employees are to meet.
 Supply the resources needed by the employees to meet
these requirements.
 Encourage and help the employees to meet these
requirements.
Philip Crosby: Four absolutes
of quality management (contd..)
2. The system for causing quality is prevention, not appraisal

 Inspection, testing and checking after the job is over is an

expensive and unreliable way to get quality.
 What is required in prevention of defects.
 The concept of prevention is based on understanding the process
that needs preventive actions.
 The preventive activities are to look at the processes and identify
opportunities for errors
 The errors can be controlled by eliminating the cause of the
problem.
Philip Crosby: Four absolutes
of quality management (contd..)
3. The performance standard must be Zero defects, not that’s
close enough

 Organizations with millions of individual actions cannot afford to

have a percent or two to go astray.
 The concept has to be “zero defect” that is absolute conformance
to the requirement.
 There cannot be a grade or percentage of performance
 The employees should be aware of what they are supposed to do
and do exactly that.
 The employees have to do it right the first time to keep the
organization hassle free.
Philip Crosby: Four absolutes
of quality management (contd..)
4. The measurement of quality is the Price of Nonconformance

 The cost of conformance consists of costs like all prevention

actions, training and education on quality.
 Normally it should not be more than 2% of sales.
 The price of nonconformance consists of faulty handling of a
customer’s enquiry to loss of orders, rejections, delayed delivery,
rework, salvaging etc.
 It can be as high as 20% and it can eat up the organization’s
profit.
 The price of nonconformance is everything that the organization
would not have done if it was done right at the first time.
Joseph Juran
 “Quality is fitness for use”
 The Trilogy consists of three sequential and logical groups of
activities:
1. Quality Planning,
2. Quality Control, and
3. Quality Improvement.

 All three processes are universal

 Applied to a particular process
 Performed by top management or by middle management
Quality Trilogy:
1. Quality Planning
 The role of quality planning is to design a process that will be able to
meet established goals under operating conditions.
 The subject of planning can be anything -- an engineering process for
designing new products, a production process for making goods, or a
service process for responding to customer requests.
 Quality Planning involves:
 To identify who are the customers.
 Discovering needs of those customers.
 Translate those needs into engineering language
 Find out opportunities for reduction of waste and develop a
product that can respond to those needs
 Optimize the product features so as to meet the needs of both the
organization and the customers.
Quality Trilogy:
2. Quality Control
 The role of quality control is to operate and when necessary correct
the process so that it performs with optimal effectiveness.
 The process of managing operations to meet quality goals.
 The process of Quality Control involves:
 Choosing control subjects
 Choosing units of measurement
 Establishing a measurement procedure
 Measuring
 Interpreting differences between measurement and goal.
 Taking action to correct significant differences
Quality Trilogy:
3. Quality Improvement
 The role of quality improvement is to devise ways to take the
process to unprecedented levels of performance.
 Assuming the process is under control, any waste that occurs must be
inherent in the design of the process.
 The object of quality improvement is to reduce chronic waste to a
much lower level.
 The steps in Quality Improvement:
 Prove the need for improvement
 Identify specific projects for improvement
 Organize to guide the projects
 Organize for diagnosis -- discovery of causes
 Diagnose the causes
 Provide remedies
 Prove that the remedies are effective under operating conditions
 Provide for control to maintain the gains.
Walter A. Shewhart
 Born: March 18, 1891, New Canton, Illinois
 Died: March 11, 1967 (aged 75)
 Fields: physics, engineering, statistics
 Institutions: Western Electric
 known as the father of statistical quality control
and also related to the Shewhart cycle.

 Shewhart was concerned that statistical theory serve the needs of

industry.
 He framed the problems in terms of “assignable cause” and
“chance cause” variation and introduced the “Control Chart” as a
tool for distinguishing between the two.
 His monumental work, Economic Control of Quality of
Manufactured Product, published in 1931, is regarded as a complete
and thorough exposition of the basic principles of quality control.
Kaoru Ishikawa
 Born: July 13, 1915,Tokyo, Japan
 Died: April 16, 1989 (aged 73)
 Fields: Quality, Chemical engineering
 Institutions: University of Tokyo, Musashi Institute of
Technology
 Known for: Ishikawa diagram, quality circle
 Books: “Introduction to Quality Control”, “What is Total
Quality Control?”, “How to Operate QC Circle Activities”

“Quality does not only mean

the quality of the product,
but also of after sales service,
quality of management,
the company itself
and human life”
Ishikawa’s Philosophy
 Quality Control Circles (QCC)
 A quality control circle consists of a small group of employees who do
similar work and arrange to meet regularly to identify and analyze
work-related problems, to brainstorm and to recommend and
implement solutions.

 Fish-bone or Cause Effect Diagram

 With the use of this diagram the user can see all the possible causes of
a result.

 Quality throughout product’s life cycle, not just during production.

Shigeo Shingo
 Shigeo Shingo (1909 - 1990), born in Saga City, Japan
 Poka Yoke (meaning mistake proofing)
 This involves identifying potential error sources in the process and
monitoring these sources for errors.
 A variant to this approach is FMEA
 Zero Quality Control
 Total Productive Maintenance
 Single Minute Exchange of Dies
Quality Awards
The Malcom Baldridge Award - The Malcolm
Baldrige National Quality Award is the centerpiece
of the Baldrige National Quality Program. This
award, which since 1988 has been presented
annually by the President to recognize performance
excellence, focuses on an organization‘s overall
performance management system. It does not
certify product or service quality.

The Deming Prize - The Union of Japanese

Scientists and Engineers (JUSE) created a prize to
commemorate Dr. Deming‘s contribution and friendship
and to promote the continued development of quality
control in Japan. The prize was established in 1950 and
annual awards are still given each year.
 NASA
Quality Awards

Institute of Industrial Engineers

Singapore
Quality European
Award Quality
Award