You are on page 1of 45

QUALITY

MANAGEMENT
QUALITY

The totality of features and characteristics of product


/ service that bear on its ability to satisfy stated and
implied needs of the customer

Degree to which requirements are fulfilled


QUALITY

IS

TOTAL CUSTOMER SATISFACTION


QUALITY IS NOT

ABSOLUTE

  QUALITY IS A

COMPARATIVE

TERM
 
QUALITY IS
NONSTATIC
 
THE PERCEPTION OF
CUSTOMERS TOWARDS

QUALITY

KEEPS ON CHANGING
 
TOTAL QUALITY
REFERS TO
      QUALITY IN PRODUCT

· QUALITY IN PROCESS

· QUALITY IN WORK

QUALITY IN SERVICE
QUALITY CONTROL
Part of quality management focused on fulfilling
quality requirements

QUALITY ASSURANCE

Part of quality management focused on providing


confidence that quality requirements will be met
QUALITY MANAGEMENT

Coordinated activities to direct and control an


organization with respect to quality
PRINCIPLES OF QUALITY MANAGEMENT

•      CUSTOMER FOCUS

· LEADERSHIP

· EMPLOYEE INVOLVEMENT

• PROCESS APPROACH

· SYSTEM APPROACH TO MANAGEMENT

· CONTINUAL IMPROVEMENT

· FACTUAL APPROACH TO DECISION MAKING

· SUPPLIER RELATIONSHIP
CUSTOMER FOCUS
 
 
Organisations depend on their customers and
therefore should understand current and future
customer needs, meet customer requirements
and strive to exceed customer expectations.
LEADERSHIP
 
 
Leaders establish unity of purpose and direction of
the organization. They create the internal
environment in which people can become fully
involved in achieving the organization’s objectives.
EMPLOYEE INVOLVEMENT
 
 
People at all levels are the essence of an
organization and their full involvement enables
their abilities to be used for the organization’s
benefit.
PROCESS APPROACH
 
 
A desired result is achieved more efficiently
when related resources and activities are
managed as a process.
SYSTEM APPROACH TO MANAGEMENT
 
 
Identifying, understanding and managing a
system of interrelated processes for a given
objective contributes to the effectiveness and
efficiency of the organization 
CONTINUAL IMPROVEMENT

 
Continual improvement is a permanent objective
of the organization.
FACTUAL APPROACH TO DECISION
MAKING
 
 
Effective decisions are based on the analysis of
data and information
SUPPLIER RELATIONSHIP
 
 
Mutually beneficial relationships between the
organization and its suppliers enhance the
ability of both organizations to create value.
QUALITY COST
Internal failure costs
Costs related to defective products or services before they
are delivered to customers
External failure costs
Costs related to delivering substandard products or services
to customers
Appraisal costs
Costs related to measuring, evaluating and auditing
materials, parts, products & services to assess conformance
with quality standards
Prevention costs
Costs related to reducing the potential for quality problems
QUALITY COST

Prevention cost Appraisal cost In-house failure External failure


cost cost
Quality planning In coming Rejection Rejection
inspection
Quality audit In process Rework Guarantee
inspection
Quality Final inspection Value reduction Product liability
management
Preventive Inspection & test Repeat test Penalties
maintenance equipment
Test planning Problem Lost goodwill
investigation
Quality system
COST OF QUALITY PROBLEM
Cost to resolve

1000x
100x
10x
x

Specs design produce install


When problem identified
TOOLS FOR QUALITY CONTROL

•Pareto analysis
•Control charts
•Root cause analysis
•Brain storming
Pareto Analysis

Number of defects
80%
80% ofof the
the
problems
problems
may
may be
be
attributed
attributed
to
to 20%
20% of of
the
the Off Smeared Missing Loose Other
causes.
causes. center print label
Cause-and-Effect Diagram

Methods Materials
Cause
Cause
Cause
Cause
Cause Cause
Environment Effect
Cause Cause

Cause Cause
Cause Cause

People Equipment
Control Chart

1020
UCL
1010
1000
990
980
LCL

970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Continual Improvement
• Philosophy that seeks to make never-
ending improvements to the process of 
converting inputs into outputs.
• Kaizen: Japanese word
for continual 
improvement.
TOOLS FOR CONTINUAL IMPROVEMENT

•Quality circle
•PDCA
•Benchmarking
•Quality at source
Basic Steps in Problem Solving
• Define the problem and establish an 
improvement goal
• Collect data
• Analyze the problem
• Generate potential solutions
• Choose a solution
• Implement the solution
• Monitor the solution to see if it accomplishes 
the goal
The PDCA Cycle

Plan

Act

Do

Check
QUALITY CIRCLE

A voluntary group of employees from the same work


area form a group that meets periodically to analyse,
evaluate and discuss problems and devise solutions to
improve quality
Quality at the Source

• The  philosophy  of  making  each 


worker  responsible  for  the  quality  of 
his or her work.
STANDARDS

Product process system


ISO 9000 

is

a quality management system standard


ISO9000 FAMILY

ISO 9000 vocabulary


ISO 9001 requirements
ISO 9004 guidelines
ISO 9001 REQUIREMENTS

•Quality management system


•Management responsibility
•Resource management
•Product realization
•Measurement, analysis and improvement 
DEMING’S PRINCIPLES

Deming compiled a famous list of 14 points, he


believed were the prescription needed to achieve
quality in an organization. His message is that the
cause of inefficiency and poor quality is the system,
not the employees. Management’s responsibility is to
correct the system to achieve the desired results.
DEMING’S PRINCIPLES

•Create constancy of purpose toward improvement of product and


service with a plan to become competitive & to stay in business
•Adopt the new philosophy. We can no longer live with commonly
accepted levels of delays, mistakes, defective materials & defective
workmanship.
•Prevent defects rather than detect defects
•Eliminate suppliers that can not qualify with statistical evidence
of quality.
•Find problems. It is management’s job to work continually on the
system.
•Institute modern methods of training on the job.
•The responsibility of foremen must be changed from sheer
numbers to quality.
DEMING’S PRINCIPLES

•Drive out fear, so that every one may work effectively for the
company.
•Break down barriers between departments. Encourage teamwork.
•Eliminate numerical goals, posters and slogans for the workforce,
asking for new levels of productivity without providing methods.
•Eliminate work standards that prescribe numerical quotas.
•Remove barriers that stand between the hourly worker and his right
to pride of workmanship.
•Institute a program of education and training.
•Create a structure in top management that will push every day on the
above points.
JURAN’S PRINCIPLES

JURAN views quality as fitness for use. He also believes


that roughly 80% of quality defects are management
controllable, thus , management has the responsibility to
correct this deficiency. He describes quality management in
terms of a trilogy consisting of quality planning, quality
control and quality improvement. According to Juran,
quality planning is necessary to establish processes that are
capable of meeting quality standards, that quality control is
necessary in order to know when corrective action is
needed, and that quality improvement will help to find
better ways of doing things. A key element of Juran’s
philosophy is the commitment of management to continual
improvement.
JURAN’S PRINCIPLES
•Build awareness for the need and opportunity for improvement.
•Set goals for improvement
•Organize people to reach the goals.
•Provide training throughout the organization.
•Carry out projects to solve problems.
•Report progress.
•Give recognition.
•Communicate results.
•Keep score.
•Maintain momentum by making annual improvement part of the
regular systems and processes of the company.
CROSBY’S PRINCIPLES

He developed the concept of zero defects, and popularized


the phrase, “ do it right the first time “. He stressed
prevention and argued against the idea that, there will
always be some level of defectives.
CROSBY’S PRINCIPLES

•        Top management must demonstrate its commitment to


quality and its willingness to give support to achieve good
quality.
• Management must be persistent in efforts to achieve
good quality.
• Management must spell out clearly what it wants in
terms of quality and what workers must do to achieve that.
• Make it right the first time.
CROSBY’S PRINCIPLES

The quality is free concept is that the costs of poor


quality are much greater than traditionally defined.
According to Crosby, these costs are so great that rather
than viewing quality efforts as costs, organizations
should view them as a way to reduce costs, because the
improvements generated by quality efforts will more
than pay for themselves.
TQM
 

The term Total Quality Management refers to a quest for


quality that involves every one in an organization. There are
two key philosophies in this approach. One is a never ending
push to improve, which is referred to as continuous
improvement, the other is a goal of customer satisfaction,
which involves meeting or exceeding customer expectations.
TQM APPROACH

•Find out what customers want. Be sure to include the


internal customers as well as the external customers
•Design a product or service that will meet or exceed what
customers want. Make it easy to use & easy to produce.
•Design a production process that facilitates doing the job
right the first time.
•Keep track of results, and use those to guide improvement
in the system. Never stop trying to improve.
•Extend these concepts to suppliers and to distribution.
ELEMENTS OF TQM
 
•Continual improvement
•Competitive benchmarking
•Employee empowerment
•Team approach
•Decisions based on facts rather than opinions
•Knowledge of quality tools
•Supplier quality