QUALITY MANAGEMENT

QUOTES ON QUALITY

“Defects are not free. Somebody makes them, and gets paid for making
them”.
W. Edwards Deming

“Quality is free. It is not a gift, but it is free. What costs money are the
Unquality things-all the actions that involve not doing jobs right the
first time.”
Philip Crosby

2
 DEFINITION

Quality is the ability of a product or service to

consistently meet or exceed customer expectations

Quality has to be always connected / aligned

with customer expectations

Quality has a lot of quantitative (mathematical

aspects into it), but it also have significant
qualitative aspects into it which is the perceptions
on quality ie. How high the quality you are producing
 TOTAL QUALITY MANAGEMENT
(TQM)

TQM stresses three principles for achieving high

levels of process quality and performance:

- Customer Satisfaction,
-Employee involvement and
-Continuous Improvement
 CONTINUOUS IMPROVEMENT

1. Based on the Japanese concept, Kaizen

2. The philosophy of continually seeking ways to

improve processes: which involves SPC training &
making making SPC a normal aspect of daily operations.

3. Problem solving process: : The Deming Wheel: PDCA

cycle
 THE QUALITY GURUS
Quality Guru Contribution

Walter Shewhart Father of statistical quality control

W. Edwards Deming He taught statistical quality-control techniques to Japanese

companies, initiating their quality movement.
He dismissed the then widely used approach of final product
inspection as a means of ensuring good quality as coming too
late to reduce product defects
He also gave PDCA cycle

Joseph M Juran Quality is fitness for use; Quality Trilogy

Philip B. Crosby Quality is free, with zero defects
Kaoru Ishikawa This Tokyo University professor promoted use of quality
circles and developed the “fishbone” (cause and effect)
diagram to diagnose quality problems
Example:
Plan the process to deliver antibiotics to patients 60 minutes
before surgical incision
Quality control - monitor the process to be sure it is reliably
delivering the outcome
Example: you put the process in place and you monitor the
results and you find:
– Week 1: 100%
– Week 2: 95%
– Week 3: 75%
– Week 4: 72%
 
QUALITY IMPROVEMENT - the process is not delivering the
outcome you intended.
Using the example data, it can be see that the process is less and
less reliable.
• We would now decide that the process is NOT IN CONTROL and
needs improvement.
 THE QUALITY GURUS
Quality Guru Contribution
Taguchi Quality Loss Function
 QUALITY CERTIFICATIONS & AWARDS
No Name of the Awarding Applicable to Remarks
Award/Certification Agency whom

Some well known Quality Awards

1 Deming Prize Union of Japanese No geographical More than one may
Scientists & restrictions for be selected for the
Engineers (JUSE) applicants. prize.
2 Malcom Baldrige National Institute Open only for Only one winner
National Quality of Standards & US corporations selected for each
Award Technology category
(NIST), USA
3 European Quality European Open only for Only one winner
Award Foundation for European selected for each
Quality companies category
Management
(EFQM)
4 CII-EXIM Business Confederation of Any company in Only one winner
Excellence Award Indian Industries India can apply selected for each
(CII) category
5 Rajiv Gandhi National Bureau of Indian Indian Four categories
Quality Award Standards (BIS) companies can (Large scale
apply manufacturing,
small scale
manufacturing,
service sector,
BEST OF ALL).
 DEMING AWARD WINNERS
Year Name of the company
1998 Sundaram-Clayton Limited, Brakes Division
2001 Sundaram Brake Linings Ltd. (India)
2002 TVS Motor Company Ltd. (India)
2003 Brakes India Ltd., Foundry Division (India)
Mahindra and Mahindra Ltd., Farm Equipment Sector (India)
Rane Brake Linings Ltd. (India)
Sona Koyo Steering Systems Ltd. (India)

2004 SRF Ltd - Industrial Synthetics Business Lucas-TVS

Indo-Gulf Fertilisers Limited
2005 Krishna Maruti Limited, Seat Division
(India)
Rane Engine Valves Limited (India)
Rane TRW Steering Systems Limited,
Steering Gear Division (India)

2007 Asahi India Glass Limited, Auto Glass Division (India)

Rane (Madras) Limited (India)
Reliance Industries Limited, Hazira Manufacturing Division

2008 Tata Steels Limited

2010 National Engineering Industries Limited
2011 Sandan Vikas (India) Limited
2012 SRF Limited, Chemicals Business
Mahindra & Mahindra Limited, Farm Equipment Sector, Swaraj Division
2013 RSB Transmissions (India) Limited, Auto Division (Jamshedpur Unit 1, Pune, Pant Nagar Plants)
 Malcolm Baldridge National Quality Award

• Baldrige Award was Established in 1987 and Named for US

Secretary of Commerce Malcolm Baldrige.
• The Baldrige Quality Award is given to US organizations that
have demonstrated outstanding quality in their products and
processes
• Organizations that apply for the Baldrige Award are judged
by an independent board of examiners. Recipients are
selected based on achievement and improvement in seven
areas, known as the Baldrige Criteria for Performance
Excellence:
 Malcolm Baldridge National Quality Award: 7
Criteria

• Leadership: How upper management leads the organization, and how

the organization leads within the community.
• Strategy: How the organization establishes and plans to implement
strategic directions.
• Customers: How the organization builds and maintains strong, lasting
relationships with customers.
• Measurement, analysis, and knowledge management: How the
organization uses data to support key processes and manage
performance.
• Workforce: How the organization empowers and involves its workforce.
• Operations: How the organization designs, manages and improves key
processes.
• Results: How the organization performs in terms of customer
satisfaction, finances, human resources, supplier and partner
performance, operations, governance and social responsibility, and how
the organization compares to its competitors.
 QUALITY SPECIFICATIONS

Dimension Implications Product ( AC / Refrigerator) Service (School)

1. Performance Main characteristics of Main function should be Main function of a school is to
the product cooling provide education.

2. Aesthetics Appearance, feel, AC has different colors, it fits Hygiene is maintained, class
Exterior, Interiors your interiors very well, is rooms are well ventilated,
adaptable to your space etc. buildings and furniture are
good, color codes are
maintained
3. Features Extra Characteristics For an AC features like- Pick & drop facility available,
remote control, temperature extra curricular activities like
regulator ranges, air purifier, swimming, games, horse riding
timer, inbuilt regulator etc.
4. Conformance How well a product or The particular piece should Features told to us in the
service corresponds to match manufacturer’s beginning like – safety,
design specifications specifications like ac cooling security, our teachers are well
capacity, trained should be consistently
available
 Dimension Implications Product ( AC / Refrigerator)
5. Reliability Consistency of Changing of gas for
performance compressor, performance
(Infrequent according to the mentioned
requirement for specifications, wiring not
repairs) good, remote controller not
working properly
6. Durability Useful life of a Useful life in years, resistance
product or service to rust. Normally ac should
last for 10 years with
maximum capacity utilization
7. Serviceability Handling of Good Service after sales, AC
complaints or repairs requires servicing after every
6 months, does the company
provide service contract, how
many services are free, do
service personnel come for
such processes
Service (School)
Child is able to learn and
secure good marks, he could
pass competitive exams after
leaving school
Child was able to
understand the concepts
taught at school well and
use them for lifetime
Frequent parent-teacher
meetings, knowing the child
behaviors pattern, Child’s
physical, social and
psychological issues handled
well
COSTS OF QUALITY
 PREVENTION COSTS
Preventing defects before they happen and it may encompass
following things:
 Training employees in methods of continuous improvement: TQ
training, TQ planning, process control, and quality improvement
costs to prevent defects from occurring
 Working with suppliers to increase quality of purchased items or
contracted services

 Redesign the service or product to make it simpler, easier to

produce
 Redesign the processes to remove causes of poor performance
 APPRAISAL COSTS

Costs incurred to identify and assess performance problems

 Costs of activities designed to ensure quality or uncover

defects
 As prevention measures improve performance, appraisal
costs decrease
 INTERNAL FAILURE COSTS

Costs incurred to fix problems that are detected before the

product/service is delivered to the customer

– Rework—incurred if some aspect of a service or

product must be performed again.
– Scrap—incurred if a defective item is unfit for further
processing
 EXTERNAL FAILURE COSTS

All costs incurred to fix problems that are detected after the
product/service is delivered to the customer
 SIX SIGMA
 Six sigma is a problem solving methodology which is
centered around defect reduction and variation
management; executed in the form of disciplined, data
driven and time bound project, always sponsored by top
management in an organization.

 Seeks to reduce variation in the processes that lead to product

defects

 Six sigma originated at Motorola in 1986 and gained popularity

world over within a decade. General Electric reported tangible
benefits of $2.5 billion per year due to six sigma initiatives and
made it a central organization wide strategy

 Six sigma has been in existence for over a little three decades
now and has remained amongst one of the top most in demand
skills
SIX SIGMA METHODOLOGY
DMAIC Cycle
 STATISTICALLY

 Having no more than 3.4 defects per million

opportunities (DPMO)
 1 million is equivalent to 10 Lakhs

• Conceptually

– Program designed to reduce defects

– Requires the use of certain tools and techniques
 SIX SIGMA TEAM

• Top management
• Master “black belts”
• “Black belts”
• “Green belts”

Teachers have different title depending on

experience and level of achievement
 7 QC TOOLS OF QUALITY

7 QC tools of Quality is a designation given to a

fixed set of graphical techniques identified as
most helpful in troubleshooting issues related to
quality

They are basic tools as they are suitable for

people with little formal training in statistics & they
can be used to solve vast majority of quality
related issues
 7 QC TOOLS (ANALYTICAL TOOLS)

• Cause & Effect Diagram

• Pareto Charts
• Graph
• Check sheet
• Scatter Diagram
• Histogram
• Control Charts
 CAUSE & EFFECT DIAGRAM

The main cause is to identify the root cause of

the problem
 PROBLEM

In an apartment lift is causing problem. Draw a cause

enumeration diagram .suggest measures for each cause and
effect
 SIX SIGMA ROLES AND RESPONSIBILITIES

• Executive leaders must champion the process of

improvement

• Corporation-wide training in Six Sigma concepts and tools

• Set stretch objectives for improvement

• Continuous reinforcement and rewards

 QUALITY CERTIFICATIONS – ISO
International Organisation for Standardization

• ISO 9000
– Set of international standards on quality
management, critical to international business
• ISO 14000
– A set of international standards for assessing a
company’s environmental performance
 ISO 14000

• ISO 14000 - A set of international standards

for assessing a company’s environmental
performance
• Standards in three major areas
– Management systems
– Operations
– Environmental systems
 ISO 14000

• Management systems
– Systems development and integration of
environmental responsibilities into business
planning
• Operations
– Consumption of natural resources and energy
• Environmental systems
– Measuring, assessing and managing emissions,
effluents, and other waste
 STATISTICAL PROCESS CONTROL
(SPC)
 Use statistics and control charts to for
monitoring production process to prevent poor
quality
 Drives process improvement

 4 key steps:
 Measure the process
 When a change is indicated find the assignable
cause
 Eliminate / incorporate the cause
 Resart the revised process