UNIT SIX

QUALITY MANAGEMENT AND CONTROL

WHAT IS QUALITY AND WHY IS IT SO IMPORTANT?
•Quality :-Totality of features and characteristics of a product or
service that bears on its ability to satisfy the customer.
•there is no clear or agreed definition of what ‘quality’ means

Definitions of Quality can be seen from five approaches

 the transcendent approach.

 the manufacturing-based approach.

 the user-based approach.

 the product-based approach and

 the value-based approach.

1
 Cont…
• Transcendent definition: views quality as synonymous with
innate /inborn excellence .
• defined quality as the absolute – the best possible, in terms
of the product’s or service’s specification.
For example A ‘quality’ car is a Rolls-Royce.
• The manufacturing-based approach :products or services that
are free of errors and that conform precisely to their design
specification.
• quality’ product is that has been built or delivered precisely to
its design specification.

2
 Cont…
• The user-based approach:- – is concerned with making sure
that the product or service is fit for its purpose.
• appropriateness of specification for the customer.
• The product-based approach:- views quality as a precise (and
measurable) set of the characteristics which will satisfy
customers.
• The value-based approach: defines quality in terms of cost
and price.
 quality should be perceived in relation to price.
 A customer may well be willing to accept something of a
lower specification quality, if the price is low.

3
 Why Quality Is Important
 Higher quality minimises processing time.

 Reduce inventory, rework and scrap costs.

 Reduce inspection and test costs.

 Reduce complaint and warranty, and service costs.

 costs can be brought down by improved efficiencies,

productivity and the use of capital.

4
 Dimensions of Quality
The concepts of dimensions of quality represent the fact that
customers value/ perceptions a product keeping in mind different
dimensions. such as:
1. Performance - main characteristics of the product/service: for what
purpose the product is made.
2. Special Features - extra characteristics; e.g. Aesthetics -
appearance, feel, smell, taste..
3. Conformance - how well product/service conforms to customer’s
expectations.
4. Reliability - consistency of performance without breakage.
5. Durability - useful life of the product/service.
6. Perceived Quality - indirect evaluation of quality (e.g. reputation).
7. Serviceability - service after sale/maintainbility.

5
 Achievement of Quality
The two distinct but interrelated aspects of quality are:
– Quality of design &
– Quality of conformance

6
 Achievement of Quality…

I. Quality of Design:- is
 identification of the right product.
 selection of the appropriate features for the selected product.
 preparation of detailed specifications (performance, durability, easy of
maintenance, easy of operation, etc.)
 to ensure that product renders satisfactory service to the customer at
the optimal cost.
• The starting point in the product design is an assessment of customer's
expectations from the product.
• b/c customer satisfaction has to be central theme of the product design.

7
 Achievement of Quality….
II.Quality of Conformance

• refers to the extent the product manufactured conform to the

laid-down design (i.e. design specifications and tolerances).

 Such as: performance, looks, ease of maintenance, ease of

operation, durability, reliability, cost of operation, etc.)

• The more closely the product meets the requirements of the

design, the higher is said to be its quality of conformance.

8
 II. Quality of Conformance…

• It is the good design coupled / attached with a good

execution (conformance) which results in good
quality of product.

9
 Quality Standards
o Material specifications :
o pertain to aspects of the product and they form a vital part of
engineering function.
o Dimensional specifications :
o refer to the size aspects of the product and incorporated into the
component drawings.
o Performance specifications :
o refer to the actual performance of the product.
o Environmental specifications :
o pertain to the climatic conditions, which the component/ product
/material/ should withstand.
o Two basic requirements of quality standards are:
o Quality standards must be definite and understandable.
o Quality standards should also be reasonable and achievable.
10
 Costs of Quality

• Costs of quality can be classified into four

categories:
– Internal failure costs Quality Failure Costs

– External failure costs

– Appraisal costs Quality Control Costs

– Prevention costs

11
 Costs of Quality
• Internal failure costs:
– Costs that result from production of defective parts or services before
delivery to customers.
– Example: rework costs, scrap, and downtime.
• Variety of reasons:
– defective material from vendors,
– Incorrect machine settings,
– faulty equipment,
– carelessness, and
– faulty or improper material handling procedures.

12
 Costs of Quality
• External failure costs :
– Costs that occur after delivery of defective products or
services.
– Examples are customer warranty replacements, loss of
customers or goodwill, handling of complaints, and
rework repair costs.

13
 Costs of Quality
• Appraisal costs (inspection costs)
– Includes cost of quality inspections, product testing, and
performing audits to make sure that quality standards are
being met.

14
 Costs of Quality
• Prevention costs
– are costs related to reducing the potential for quality
problems.
– Prevention costs relate to attempts to prevent defects from
occurring.
– Examples are planning and administration systems, working
with vendors, training, quality control procedures, and extra
attention in both the design and production phases.

15
 Quality Control

To ensure quality, scientific quality control recognizes three

distinct functions:
 Acceptance function:- inspection of goods to ensure that
they are up to the specifications. Acceptance function of
quality is called "Inspection”.
 Preventive function: refers to the identification of defects in
materials, components, machining processes, or men to fix
responsibility of defectives thereby avoiding or minimizing
occurrence of defectives.
 Preventive function of quality is called "Quality Control”.

16
 Quality Control…
• Assurance function :refers to verification that every quality
characteristic or product is assured to meet a pre-determined
performance standard at each stage in the manufacturing
cycle.
– The assurance function includes elements like customer complaints,
quality audit, quality determination, accuracy of inspection, executive
reports on quality, etc.

17
 Inspection versus Quality Control
closely related yet they differ in respect of the following;
 Quality Control
 aims to produce better quality products at the least cost to the
company and
 inspection is one of the tool to achieve it.
 Quality Control
 determines the causes of variations ,while
– Inspection tests and measures ,compare products and their
performance with specified standards.
– Inspection determines the acceptability.
 Quality Control
 determines what, when and how much to inspect while
 inspection actually conducts examination of goods for the quality
characteristics called for by the Quality Control.
18
 Benefits of Inspection and Quality Control
• To satisfy customers and to meet competition of rival
producers.
• To ensures that parts are within the specified limits.
• Reduces defective work and increase utilization of facilities
and labour.
• Prevents labour and machine time from being spent on work
already identified as defective.

19
 STATISTICAL QUALITY CONTROL (SQC)

• Statistical quality control (SQC): the term used to describe the set of
statistical tools used by quality professionals.
• is a type of inspection based on probability and mathematical techniques.

Source of Variation
Variation exists in all processes & can be categorized as either:
– Common or Random causes of variation
• Random causes that we cannot identify
• Unavoidable, e.g. slight differences in process variables like diameter, weight,
service time, temperature.
– Assignable causes of variation
• Causes can be identified and eliminated: poor employee training, worn tool,
machine needing repair.

20
 SPC Methods-Developing Control
Charts
 Control Charts: show sample data plotted on a graph with CL, UCL, and LCL.
 Control chart for variables are used to monitor characteristics that can be measured, e.g.
length, weight, diameter, time.
 Control charts for attributes are used to monitor characteristics that have discrete values and
can be counted, e.g. % defective, # of flaws in a shirt, etc.

21
 Control Charts for Variables

Mean (x-Bar) Charts

• A mean control chart is often referred
to as an x-bar chart.
– Use to monitor the changes in the mean
of a process (central tendencies).
• To construct a mean chart, we first need to construct
the center line of the chart. The center line of the
chart is then computed as the mean of all k sample
means, where k is the number of samples:

22
 e.g. : Constructing an X-bar Chart: A quality control inspector at the Cocoa Fizz soft drink
company has taken three samples with four observations each of the volume of bottles
filled. If the standard deviation of the bottling operation is .2 ounces, use the below data to
develop control charts with limits of 3 standard deviations for the 16 oz. bottling operation.

Center line and control limit

Time 1 Time 2 Time 3
formulas
Observation 1 15.8 16.1 16.0
Observation 2 16.0 16.0 15.9 x 1  x 2  ...x n σ
x , σx 
Observation 3 15.8 15.8 15.9 k n
Observation 4 15.9 15.9 15.8 where ( k) is the # of sample means and (n)
Sample 15.875 15.975 15.9 is the # of observatio ns w/in each sample
means (X-bar)
UCLx  x  zσ x
Sample 0.2 0.3 0.2
ranges (R) LCL x  x  zσ x

23
 Solution

• Center line (x-double bar):

15.875  15.975  15.9

x  15.92
3
• Control limits for±3σ limits:
 .2 
UCLx  x  zσ x  15.92  3   16.22
 4
 .2 
LCL x  x  zσ x  15.92  3   15.62
 4

24
X-Bar Control Chart

25
 Control Charts for Attributes
…
P-Charts & C-Charts
p-chart: A chart used for controlling the
proportion of defective services or products
generated by the process.
# Defectives
CL  p 
Total Inspected
p(1  p )
σp 
Where n

n = sample size, p = central line on the chart, which can be either the
historical average population proportion defective or a target value, p

Control limits are: UCLp = p+zp and LCLp = p−zp

z = normal deviate (number of standard deviations from the average)
 Hometown Bank
Example
The operations manager of the booking services department of Hometown Bank is
concerned about the number of wrong customer account numbers recorded by
Hometown personnel.
Each week a random sample of 2,500 deposits is taken, and the number of incorrect
account numbers is recorded. The results for the past 12 weeks are shown in the
following table.

Is the booking process out of statistical control? Use three-sigma control limits.
 Hometown Bank
Using a p-Chart to monitor a process
n = 2500 Sample Wrong Proportion
147 Number Account # Defective
p= = 0.0049
12(2500) 1 15 0.006
2 12 0.0048
p = p(1 – p)/n 3 19 0.0076
4 2 0.0008
p = 0.0049(1 – 0.0049)/2500 5 19 0.0076
6 4 0.0016
7 24 0.0096
p = 0.0014
8 7 0.0028
UCLp = 0.0049 + 3(0.0014) 9 10 0.004
= 0.0091 10 17 0.0068
11 15 0.006
LCLp = 0.0049 – 3(0.0014)
12 3 0.0012
= 0.0007
Total 147
 Hometown Bank
Using a p-Chart to monitor a process

Example
e.g. 2: A production manager for a tire company has inspected the number of defective tires in five random
samples with 20 tires in each sample. The table below shows the number of defective tires in each sample
of 20 tires. Calculate the control limits, proportion of defective, construct a P-chart and check if the process
is with in control.

Sample Number of Number of Tires Proportion

Defective in each Sample Defective
Tires
1 3 20
2 2 20
3 1 20
4 2 20
5 2 20
Total 9 100

30
 Solution:

# Defectives 9
CL  p    .09
Total Inspected 100
p(1  p ) (.09)(.91)
σp    0.64
n 20
UCLp  p  z  σ   .09  3(.064)  .282
LCLp  p  z  σ   .09  3(.064)  .102  0

31
P- Control Chart

32
 In Class Work (Quiz)
A production manager at a light bulb plant has inspected the number of defective light bulbs in 10
random samples with 30 observations each. Calculate the control limits, construct a P-chart,
calculate proportion of defective, and check if the process is with in control. Following are the
numbers of defective light bulbs found:
Sample Defectives Number of Observation in Sample
1 1 30
2 3 30
3 3 30
4 1 30
5 0 30
6 5 30
7 1 30
8 1 30
9 1 30
10 1 30
Total 17 300
Construct a 3-sigma control chart (z 3) with this information.

33
 Cont’d…
• C-charts:
– are used to monitor the number of defects per unit.
– The average number of defects, c, is the center line of the control
chart.
– The upper and lower control limits are computed as follows:
UCL = c + z√c
LCL = c - z √c

34
 C-Chart Example: The number of weekly customer complaints
are monitored in a large hotel using a c-chart. Develop three
sigma control limits using the data table below.

Week Number of Solution:

Complaints
1 3
2 2 # complaints 22
3 3
CL    2.2
# of samples 10
4 1
5 3 UCLc  c  z c  2.2  3 2.2  6.65
6 3
LCLc  c  z c  2.2  3 2.2  2.25  0
7 2
8 1
9 3
10 1
Total 22 35
C- Control Chart

36
 Total Quality Management (TQM)
 It is a way of managing business processes at every stage,
internally and externally.
 TQM is a method by which management and employees can
become involved in the continuous improvement of the production of
goods and services.
 A system of continuous improvement employing participative
management and cantered/run on the needs of customers.
 TQM is a management philosophy that seeks to integrate all
organizational functions.

37
 Concepts of the TQM Philosophy
 Customer focus: Goal is to identify and meet customer needs.
 TQM recognizes that a perfectly produced product has little value if it
is not what the customer wants.
 Continuous improvement : A philosophy of never-ending
improvement. E.g.
 Kaizen: A Japanese term that describes the notion of a company
continually striving to be better through learning and problem solving.
 Plan–do–study–act (PDSA) cycle: A diagram that describes the
activities that need to be performed to incorporate continuous
improvement into the operation.
 Benchmarking: Studying the business practices of other companies for
purposes of comparison.

38
 Concepts of the TQM Philosophy
 Employee empowerment: Employees are expected to seek out,
identify, and correct quality problems. E.g.
 Quality Circle: A team of volunteer production employees and their
supervisors who meet regularly to solve quality problems.
 Use of quality tools: Use of quality tools Ongoing employee training in
the use of quality tools. E.g.
 Cause-and-effect diagram: A chart that identifies potential causes of particular
quality problems.
 Flowchart: A schematic of the sequence of steps involved in an operation or
process.
 Checklist: A list of common defects and the number of observed occurrences
of these defects.
 Control charts: Charts used to evaluate whether a process is operating within
set expectations.

39
 Concepts of the TQM Philosophy
 Product design: Products need to be designed to meet
customer expectations. E.g.
 Quality Function Deployment(QFD): A tool used to translate the
preferences of the customer into specific technical requirements.
 Process management: Quality should be built into the process;
sources of quality problems should be identified and corrected.
E.g.
 Quality at the source: The belief that it is best to uncover the source of quality
problems and eliminate it.

 Managing supplier quality : Quality concepts must extend

to a company’s suppliers.

40
 Quality Awards & Standards
 Malcolm Baldrige National Quality Award: An award given
annually to companies that demonstrate quality excellence
and establish best practice standards in industry.
Malcolm Baldrige National Quality Award criteria
Categories Points
Leadership 120

Strategic Planning 85

Customer & market focus 85

Information & Analysis 90

Human Resource Focus 85

Process Management 85

Business Results 450

Total 1000

41
 Quality Awards & Standards
 Deming Prize: A Japanese award given to companies
to recognize efforts in quality improvement.
 ISO 9000:A set of international quality standards and
a certification demonstrating that companies have
met all the standards specified.
– The purpose of the International Organization for Standardization
(ISO) is to establish agreement on international quality standards.
– To receive ISO certification, a company must provide extensive
documentation of its quality processes.
– This includes methods used to monitor quality, methods and
frequency of worker training, job descriptions, inspection programs,
and statistical process control tools used.

42
 Quality Awards & Standards
 ISO 14000: A set of international standards and a
certification focusing on a company’s environmental
responsibility. It focus on three major areas:
– Management systems- standards measure systems
development and integration of environmental
responsibility into the overall business.
– Operations- standards include the measurement of
consumption of natural resources and energy.
– Environmental systems- standards measure emissions,
effluents, and other waste systems.

43
 CHAPTER END!

THANK YOU!
44