Quality Management

N Siva Prasad
 Quality
• Meeting the defined standards
• Processes and policies to ensure the defined
standards
• How far is the deviation is measured through
various techniques
• Total Quality Management: Managing the
entire organisation so that it excels in all
dimensions of products and services that are
important to the customer.
 The dimensions of quality
• Product:
– Performance
– Aesthetics
– Special features
– Conformance
– Reliability
– Durability
– Perceived quality
– serviceability
 The dimensions of quality
• Services:
– Convenience
– Reliability
– Responsiveness
– Time
– Assurance
– Courtesy
– Tangibles
– consistency
 The determinants of Quality
• Design
– Quality of design
• Conformance to design
– Quality of conformance
• Ease of use
– Instructions to use( Dos and Don’ts)
• Service after delivery
– After sales service( guarantee)
 Quality Specifications and Quality
Costs
• Developing Quality specifications
– Design quality
– Conformance quality
– Quality at the source
– Cost of quality
• Internal failure cost
• External failure costs
• Appraisal cost
• Prevention costs
 Internal Failure Costs
• Variability of product characteristics
• Unplanned downtime of equipment
• Inventory shrinkage
• Variation of processes from “best practices”
• Non-value added activities
 External Failure Costs
• Warranty charges
• Complaint adjustments
• Returned material
• Allowances(concessions)
• Penalties due to poor quality
• Rework on support operations
• Revenue losses in support operations
• Lost opportunities for sales revenue
 Appraisal Costs
• Incoming inspection and testing
• In-process inspection and testing
• Final inspection and testing
• Document review
• Balancing(auditing numbers/quantity)
• Product quality audits
• Maintaining accuracy of test equipment
• Inspection and test material/equipment and
services
• Evaluation of stocks
 Prevention Costs
• Quality planning
• New-product review
• Process planning
• Process control
• Quality audits
• Supplier quality evaluation
• training
 Hidden quality costs
• Scrap and errors not reported
• Space and inventory charges
• Potential lost sales
• Costs of redesign of products due to poor
quality
• Costs included in standards as obvious
• Cost of errors in support operations
• Cost of poor quality within supplier’s company
 Quality Philosophy
• Different approaches
– Walter Shewhart: “Statistical quality control” (PDCA)
– W. Edwards Deming: “14 points to achieve quality in an
organisation”( PDCA to PDSA)
– Joseph M.Juran: “Quality management through
planning, control and improvement”
– Armand Feigenbaum: “cost of nonconformance”
approach
– Philip B. Crosby: “Do it right the first time”(zero
defects)
– Kaoru Ishikawa: “cause-and-effect diagram”(fish-bone)
– Genichi Taguchi: “Cost of poor quality” ( sampling)
– Taiichi Ohno and Shigeo Shingo: “Kaizen”(continuous
Improvement)( Poka-yoke)
 Six Sigma Quality
• Defects per million opportunities(DPMO)
– Unit
– Defect
– Opportunity
– Statistical measurements and analysis
• Certifications are possible( green belt, black
belt etc.)
 Six Sigma Methodology
• Define
• Measure
• Analyse
• Improve
• Control
 Six Sigma –Roles and Responsibilities
• Executive leaders(management)
• Champions to own process
• Corporate wide training on concepts and tools
• Setting of stretch objectives for improvement
• Continuous reinforcement and rewards
 Standards
• ISO 9000( business to business dealing quality
standards)
– Customer focus
– Leadership
– Involvement of people
– Process approach
– System approach to management
– Continual improvement
– Factual approach to decision making
– Mutually beneficial supplier relationship
 Standards
• ISO 14000( Environmental management)
• TL 9000 ( telecom)
• OHSAS 18000 ( safety)
• ISO24700 ( Office equipment containing
reused components)
 External Benchmarking for Quality
Improvement
• Identify processes needing improvement
• Analyse Data
• Compare with required standard( by internal
team or external experts)
• Plan for improvement
• Implement the plans
• Monitor regularly
• Modify plans, if required
• Go for certification( if decided)
 TQM( Total Quality Management)
• Approach
– Capture customer needs
– Design product/service accordingly
– Design the process to facilitate the
product/service
– Monitor and improve
– Extend to all activities
 TQM( Total Quality Management)
• Other elements
– Continuous improvement
– Competitive benchmarking
– Employee empowerment
– Team approach
– Decisions based on facts rather than opinions
– Knowledge of tools
– Supplier quality
– Champion
– Quality at the source
– Suppliers are partners
 Seven basic Quality Control Tools
• Flow charts
• Check sheets
• Histogram
• Pareto Charts
• Scatter diagram
• Process control charts
• Cause and effect diagram
Flow Chart
 Check Sheet
Defect type Monday Tuesday Wednesday Thursday Friday
Type-A III IIII II I IIII
Type-B II II I I III
Type-C III IIII III II IIII
 Histogram
6

4
Series 1
3
Series 2
Series 3
2

0
Category 1 Category 2 Category 3 Category 4
 Pareto chart
Vital few among many important factors(80-
20rule)
 Reasons for low scoring in NCP-1
1. Time is insufficient for preparation
2. Portion is vast
3. Too many tests on same day
4. Test timing is not good
5. Questions are very tough
6. Most of the questions are very lengthy and confusing
7. All the answers seem to be appropriate
8. System was malfunctioning which effected concentration
9. Lot of disturbance around which effected concentration
10. Relative grading influences the preparation for tests
11. Pattern of marking is the reason( negative marks)
 Pareto chart
Vital few among many important factors(80-20
rule)
reason number Cumulative

tough 32 32
Vast portion 19 51
Insufficient time 12 63
------ 7 70
------- 5 75
others 5 80
 Scatter diagram
Y-Values
25

20

15

Y-Values
10

0
0 0.5 1 1.5 2 2.5 3
 Control Charts
• Define the desired value
• Define the limits( upper and lower)
• Record occurrences on a chart
• Analyse the trend
• Do the correction
Control chart
 Fish-bone Diagram
• Manpower
• Material
• Methods
• Machinery
• Others
Cause-and-effect diagram
 Deming
Deming Philosophy : The quality and the productivity
increases when the process fluctuation Decreases
 Deming
• Deming advocated that all managers need to have
what he called a System of Profound Knowledge,
consisting of four parts:
– Appreciation of a system: understanding the overall
processes involving suppliers, producers, and customers
(or recipients) of goods and services (explained below);
– Knowledge of variation: the range and causes of variation
in quality, and use of statistical sampling in measurements;
– Theory of knowledge: the concepts explaining knowledge
and the limits of what can be known.
– Knowledge of psychology: concepts of human nature.
 Deming’s 14 points
1. Create constancy of purpose toward improvement of product and service, with the aim to become
competitive, to stay in business and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the
challenge, must learn their responsibilities, and take on leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building
quality into the product in the first place.
4. End the practice of awarding business on the basis of a price tag. Instead, minimize total cost. Move
towards a single supplier for any one item, on a long-term relationship of loyalty and trust.
5. Improve constantly and forever the system of production and service, to improve quality and productivity,
and thus constantly decrease costs.
6. Institute training on the job.
7. Institute leadership (see Point 12 and Ch. 8 of "Out of the Crisis"). The aim of supervision should be to help
people and machines and gadgets do a better job. Supervision of management is in need of overhaul, as
well as supervision of production workers.
8. Drive out fear, so that everyone may work effectively for the company. (See Ch. 3 of "Out of the Crisis")
9. Break down barriers between departments. People in research, design, sales, and production must work as
a team, in order to foresee problems of production and usage that may be encountered with the product
or service.
10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of
productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low
quality and low productivity belong to the system and thus lie beyond the power of the work force.
1. Eliminate work standards (quotas) on the factory floor. Substitute with leadership.
2. Eliminate management by objective. Eliminate management by numbers and numerical goals. Instead substitute with leadership.
11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of
supervisors must be changed from sheer numbers to quality.
12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship.
This means, inter alia, abolishment of the annual or merit rating and of management by objectives (See Ch.
3 of "Out of the Crisis").
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation. The transformation is
everybody's job.
 Joseph Juran
Juran Ideas are :

1. Quality definition
2. Breakthrough concept
3. Internal customer
4. Quality Trilogy
5. Pareto analysis
6. Cost of quality
7. Quality council
 Juran
• The Juran trilogy
• Juran was one of the first to write about the cost
of poor quality.[5] This was illustrated by his
"Juran trilogy", an approach to cross-functional
management, which is composed of three
managerial processes: quality planning, quality
control, and quality improvement. Without
change, there will be a constant waste, during
change there will be increased costs, but after the
improvement, margins will be higher and the
increased costs get recouped.
 Philip Crosby
Zero Defects

Do it right the first time

 Crosby
• Crosby's response to the quality crisis was the principle of "doing it
right the first time" (DIRFT). He also included four major
principles:[6]
• The definition of quality is conformance to requirements
(requirements meaning both the product and the customer's
requirements)
• The system of quality is prevention
• The performance standard is zero defects (relative to requirements)
• The measurement of quality is the price of nonconformance
• His belief was that an organization that establishes good quality
management principles will see savings returns that more than pay
for the cost of the quality system: "quality is free". It is less
expensive to do it right the first time than to pay for rework and
repairs.
Kaoru Ishikawa

7 Basic QC Tools
Armand Vallin Feigenbaum

Total Quality Management

 Shigeo Shingo

Fail safe Designs

Poka-Yoke
Gen'ichi Taguchi

Loss Functions