QUALITY CONTROL &

QUALITY ASSURANCE
 What is Quality?
 The concept of quality is subjective and difficult
to define

 Certain aspects of quality can be identified

 Ultimately, the judgement of quality rests with

the customer
 CUSTOMER-DRIVEN QUALITY

 A simpler, more powerful definition came

up….

“ Quality is meeting or exceeding

customer expectations ”
 What is Quality?
The International Organization for Standardization
(ISO) defines quality as the totality of characteristics
of an entity that bear on its ability to satisfy stated
(confirmed) or Implied (indirect) needs.

Other experts define quality based on:

• conformance to requirements: meeting written specifications

• fitness for use: ensuring a product can be used as it was intended

 Quality
means
pleasing consumers

not
just protecting them
from annoyances
 Quality
is an ever-changing state
(i.e., what is considered
quality today may not be good
enough to be considered
quality tomorrow!)
 Quality
is a dynamic state associated
with products, services,
people, processes and
environments that meets or
exceeds customer
expectations.
 DEFINING QUALITY
 Quality can be confusing concept, partly
because people view quality in relation to
differing criteria

 The meaning of quality continues to evolve as

the quality profession grows and matures

 A study that asked managers of 86 firms in

the eastern U.S. to define quality produced
several dozen different responses:
 DEFINING QUALITY
 Perfection
 Consistency
 Eliminating waste
 Speed of delivery
 Compliance with policies & procedures
 Providing good, usable products
 Doing it right the first time
 Delighting or pleasing customers
 Total customer service & satisfaction
 Elements of Quality
 Basic elements of quality include
1. Quality characteristics
2. Quality of design
3. Quality of conformance
 Elements of Quality
 Quality characteristics:-
The term quality characteristics is used for
one or more properties that define the
nature of a product for quality-control
purpose. Quality characteristics include
dimension, color, strength, temperature, etc.
For example concrete, quality characteristics
of commonly specify and control concrete
include compressive strength after a fixed
curing time.
 Elements of Quality
 Quality of design:-
It is often specified not only the desired
standard for the characteristics that
define a product such as a dimension or
strength, but also tolerance or ranges
for acceptable variation from the
standards.
For example, reinforcing bar spacing
might be specified as 12cm or a
concrete specification requesting a
compressing strength of 200 kg/cm sq.
 Elements of Quality
 Quality of Conformance:-
The degree to which the physical work
produced conforms to this standard.
For example, a journeyman welder
producing pipe welds with a reject rate of
only 3 per 100 has a much higher quality of
conformance than an apprentice with a
reject rate of 17 per 100.
 Economics of Quality
Economics of quality must be considered in
both design and construction. Economic
concept applicable to each will be introduced
here,
 Quality economics in design
 Economics of quality of conformance
 Economics of Quality
 Quality economics in design:-
In the simplest form, figure illustrates the
relationship between the cost value of quality.
The horizontal axis relates to the quality of
design as reflected by quality characteristics
chosen for the item concerned. As quality
increases, the vertical shows that both the cost
and the value of the quality increases as well,
but in a different manner.
Quality economics in design
 Economics of Quality
 Economics of quality of conformance:-
Simply stated, quality control costs money.
There are two main ingredients to this cost
1. the cost of skilled labor, equipment,
material, methods and supervision to
produce quality outputs.
2. The cost of monitoring and verifying the
quality of output and of correcting or
replacing defective work.
Economics of Quality of
Conformance
Cost of Poor Quality
 Cost of Poor Quality

 Prevention costs
 build it right the first time
 Appraisal costs
 inspection and testing
 Internal failure costs
 scrap and rework
 External failure costs
 warranty claims, recalls, lost business
 Cost of Poor Quality
 Prevention costs:
 These are planned costs an organization incurs to ensure that
errors are not made at any stage during the delivery process of
that product or service to a customer.

 The delivery process may include design, development, production

and shipping.

 Examples: Quality planning costs, Information system costs,

education and training costs, quality administration staff costs,
process control costs, market research costs, field testing costs
and preventive maintenance costs.
 The costs of preventing mistakes are always much lesser than the
costs of inspection and correction.
 Cost of Poor Quality
 Appraisal costs:
 These include the costs of verifying, checking or
evaluating a product or service during the delivery
process.

 Examples: internal production audit costs, test and

inspection costs, instrument maintenance costs,
supplier evaluation costs, and audit report costs.
 Cost of Poor Quality
 Failure costs:
 A company incurs these costs because the product or
service did not meet the requirements and had to be fixed
or replaced, or the service had to be repeated.
 These failure costs can be further subdivided into two
groups:

 Internal Failures:
 Internal failures include all costs resulting from the
failures found before the product or service reaches the
customer.
 Examples: scrap and rework costs, repair costs, and
corrective action costs from nonconforming product or
service.
 Cost of Poor Quality
 External failures:
 External failures occur when the customer finds the
failure.

 Examples: warranty claim costs, customer complaint

costs, shipping costs, and customer follow-up costs.
 Cost of Poor Quality

 Total Quality cost, is a combination of prevention,

appraisal & failure. Reducing any of these reduces total.

 Key to minimum cost, is striking correct balance b/w

three.

 Clearly prevention reduces both appraisal and failure

costs, -eventually cost of prevention itself starts to
increase total cost & so must be controlled & set at an
effective level.
Cost of Quality
 Example
 Trying to save a few project dollars by reducing conformance costs
could prove disastrous.
For example, an American company won a contract as a supplier of
Japanese parts. The initial contract called for the delivery of 10,000
parts. During inspection and testing at the customer’s (i.e., Japanese)
facility, two rejects were discovered. The Japanese returned all
10,000 components to the American supplier stating that this batch
was not acceptable. In this example, the nonconformance cost could
easily be an order of magnitude greater than the conformance cost.
The moral is clear:
Build it right the first time.
Total Quality Cost
 Basic Quality Function
1. DEFECTS / REJECTS

2. COMPLAINTS

3. CONSISTENCY

4. PRECISION

5. ACCURACY

6. VARIATION
 Precision and Accuracy
In the fields of science, engineering, industry
and statistics, the accuracy of a measurement
system is the degree of closeness of
measurements of a quantity to that quantity's
actual (true) value. The precision of a
measurement system, also called reproducibility
or repeatability, is the degree to which repeated
measurements under unchanged conditions
show the same results. Although the two words
reproducibility and repeatability can be
synonymous in colloquial use, they are
deliberately contrasted in the context of the
scientific method.
 Hierarchy of Quality

Hierarchy of Quality follows the evolution of Quality

management from

Simple inspection
To
Total Quality Management system
 Development of Quality
 Four Level model

1. Inspection
 After-event-screening - Detection based
2. Quality Control
 Introduction of basic systems - still Detection Based
3. Quality Assurance
 Development of complex systems - Prevention based
4. Total Quality Management
 Development of culture - People based
 Inspection
 (ISO8402)
 “Activity such as measuring, examining, testing,
or gauging one or more characteristics of an
entity and comparing the results with specified
requirements in order to establish whether
conformity is achieved for each characteristic”
 Inspection
 Lowest level of quality development
 Key product characteristics examined
 Compared to known standard
 After the event

 Inspection will not provide any basis for process

improvement
 Quality Control

 Defined as (ISO8402)
 “Operational techniques and activities that are used
to fulfill requirements for quality”

 Developed from inspection of methods, systems

and tools & techniques
 More emphasis on feedback
 Main mechanism still inspection based
 Physical characteristics of product
 Quality Control

 The second level of quality development

 It will not improve quality, just highlight when it is not

present

 In many cases QC does not identify the root cause of

the non-conformance
 Quality Control
 The second level of quality development

 Development of inspection procedures

 Calibration, limited quality audits
 Use of basic QC tools
 Defect recording and analysis
 Quality costs still unknown
 Use of operator self inspection
 Still largely based on goods inspection
 Reliance on inspection to catch non-conforming work
 It will not improve quality, just highlight when it is not
present
 In many cases QC does not identify the root cause of the
non-conformance
 Quality Assurance
“Quality assurance includes “all
planned & systematic activities
implemented within the quality
system, & demonstrated as
needed, to provide adequate
confidence that an entity will
fulfill requirements for quality”.
 Quality Assurance
“Quality Assurance covers all activities from
design, development, production,
installation, servicing and documentation,
this introduced the rule “Fit for purpose”
and “do it right first time”. It includes the
regulation of the quality of raw materials,
assemblies, products and components;
services related to production; and
management, production, and inspection
processes.“
 Quality Assurance
 Defined as (ISO8402)
 “All the planned and systematic activities
implemented within the quality system,
and demonstrated as needed to provide
adequate confidence that an entity will
fulfil requirements for quality”

 Issues of progression from QC to QA

 Change in emphasis from product to process
 Diff b/w QA and QC
Quality Assurance
Meant for developing,
organizing the best quality
process.
Is the process related.
Focuses on building in
quality....and hence
preventing defects.
Deals with process
Quality Control
Meant for implementing the
process developed by former
team.
Is the actual testing of the
system.
Focuses on testing for
quality...and hence detecting
defects.
Deals with product
 Diff b/w QA and QC
Quality Assurance Quality Control
Makes sure you are Makes sure the results
doing the right things, of what you've done are
the right way. what you expected.

Is preventive process. Is corrective process.

Activities ensure that Activities focus on

the process is defined finding defects in
and appropriate. specific deliverables -
e.g., are the defined
requirements the right
requirements
 What is Total Quality
Total Quality means quality of work,
quality of service, quality of information,
quality of process, quality of organization,
quality of people, quality of company and
quality of objectives.
 Total Quality Management
TQM a philosophy set of guiding principals
that represent the foundation of a
continuously improving organization. TQM is
the application of quantitative methods and
human resources to improve the material
and services supplied to an organization,
and all the processes within an organization,
and degree to which needs of the customer
are met, now and in the future.
 Total Quality Management
 Represents the most advanced stage of quality
development
 A Management philosophy
 Application of QM to all aspects of business
 Focused on the requirements of the customer
 Recognizes the importance of suppliers
 Company wide approach
 Continual improvement
 Integration of all quality systems & procedures

 Development of organizational culture

 DEFINITION OF TOTAL QUALITY

Total Quality describes the state of an

organization in which all the activities of all
functions are designed and carried out in such
a way that
 all external customer requirements are met
 while reducing internal time and cost,
 and enhancing the workplace climate.
 The Profile of TQM

TQM is a:
• Scientific
• Systematic
• Company – Wide

Activity in which
A company is devoted to customers through
its products and services.
 A TQM Approach To Management
A unique blending of :
 (a) Objective, practical, & quantitative aspects of
management, e.g. Focus on processes & reliance on
quantitative data & statistical analysis for decision-
making:
 (b) “soft” aspects of mgt, e.g. providing visionary
leadership, promoting a spirit of cooperation teamwork,
and practicing participative management.
 Many organizations when deciding to undertake a TQM
effort focus on one or other of these general approaches.
 A fully successful effort requires balanced attention to
both.
 Quality Management
 All activities of the overall
management function that
determine the quality policy,
objectives and responsibilities and
implement planning, quality
control, quality assurance and
quality improvement within the
quality system” (ISO 840)
 Quality policy sample 1
 Company XYZ provides quality management, co-ordination,
manufacture and installation services throughout the UK and
sometimes abroad. The Company has developed its expertise since its
establishment and its aim is to achieve a high standard of construction
and service to its customers.
 It is the policy of Company XYZ to provide the customer with goods
and services to the agreed requirement in accordance with the details
and price.
 The Directors, Management and Staff are responsible for Quality
Control through the Quality Management System seeking
improvement by constant review, with suppliers and sub-contractors
being encouraged to co-operate. The Company is committed to
achieving customer satisfaction by the use of quality procedures which
will be operated to meet or exceed the requirements of ISO 9001.
 Quality policy sample 2
 Our Quality Policy is defined and strongly driven by the following
management principles and behaviors:
• Build a mutually profitable relationship with our customers, ensuring their
long-term success, through the understanding of their needs and the needs
of their customers as well
• Achieve our commitments for quality, cost, and schedule
• Enhance the systematic research and use of best preventive practices at
all levels and ensure reliable risk management
• Drive continual improvement and innovation based upon efficient
business processes, well-defined measurements, best practices, and
customer surveys
• Develop staff competencies, creativity, empowerment and accountability
through appropriate development programs and show strong management
involvement and commitment
 Company XYZ strives to be the best provider of inspection services in the
industry. Through the use of these guiding principles, everyone in Company
XYZ is accountable for fully satisfying our customers by meeting or
exceeding their needs and expectations with best-in-class solutions and
services. Our goal is 100% customer satisfaction 100% of the time.
 Change of
The Name of Quality Activities
 QC : Quality Control
At the beginning of 1910-20s
 SQC: Statistical Quality Control
At the beginning of 1950s
 TQC : Total Quality Control
At the beginning of 1960s
 TQM : Total Quality Management
In the middle of
1960s in Japan
1980s in NA
1990s in others
 Quality Evolution in Japan
Determining the customer’s
needs before the customer Fitness to Latent
becomes aware of them Requirements

Fitness to
Cost

To build a product Obtain high quality & low cost

Fitness to by effective designing of both
that meets the needs of
Use the product & processes.
customer.

Fitness to
Standards
To build a product that meets
the specifications set by the
designer.
 THE QUALITY
CHALLENGE
THE EVOLUTION OF QUALITY MANAGEMENT

ORGANIZATION
WIDE
TOTAL QUALITY
MANAGEMENT

TOTAL QUALITY
CONTROL

STATISTICAL CONTROL
QUALITY ASSURANCE

INSPECTION

FOREMAN

INDIVIDUAL
CRAFTSMAN

1900 1920 1940 1960 1980

 PRINCIPAL QUALITY
DIMENSIONS
1. Performance
2. Features
3. Reliability
4. Conformance
5. Durability
6. Serviceability
7. Aesthetics
8. Perceived quality
 PRINCIPAL QUALITY DIMENSIONS

• Performance:
• a product’s primary operating
characteristics. Example: A car’s
acceleration, braking distance,
steering and handling
 PRINCIPAL QUALITY
DIMENSIONS
• Features:
• the “bells and whistles” of a product.
A car may have power options, a tape
or CD deck, antilock brakes, and
reclining seats
 PRINCIPAL QUALITY DIMENSIONS

• Reliability:
• the probability of a product’s surviving
over a specified period of time under
stated conditions of use. A car’s ability
to start on cold days and frequency of
failures are reliability factors
 PRINCIPAL QUALITY DIMENSIONS

• Conformance:
• the degree to which physical and
performance characteristics of a
product match pre-established
standards.
• car’s fit/finish, freedom from noises
can reflect this.
 PRINCIPAL QUALITY DIMENSIONS

• Durability:
• the amount of use one gets from a
product before it physically
deteriorates or until replacement is
preferable.
• For car - corrosion resistance & long
wear of upholstery fabric
 PRINCIPAL QUALITY DIMENSIONS

• Serviceability:
• speed, courtesy, competence of
repair work.
• auto owner -access to spare parts.
 PRINCIPAL QUALITY DIMENSIONS

• Aesthetics:
• how a product looks, feels, sounds,
tastes, or smells.
• car’s color, instrument panel design
and “feel of road” –
• make aesthetically pleasing
 PRINCIPAL QUALITY DIMENSIONS

• Perceived Quality:
• Subjective assessment of quality
resulting from image, advertising, or
brand names.
• car, - shaped by magazine reviews-
manufacturers’ brochures
 COMPETITIVE ADVANTAGE

 Denotes firm’s ability to achieve market

superiority
 Driven by customer needs & wants
 Provides value to customers that competitors
do not
 Makes significant contribution to business
success
 Allows a firm to use its resources effectively
 COMPETITIVE ADVANTAGE
cont….

 Durability & dependability – difficult for

others to copy
 Provides basis for further improvement
 Provides direction & motivation to the
organization
 CUSTOMER-DRIVEN
QUALITY IN THE 1980s
 Quality was defined as…

“ The totality of features and

characteristics of a product or service
that bears on its ability to satisfy
given needs ”
 CUSTOMER-DRIVEN
QUALITY IN THE 1990s
 A simpler, more powerful definition came
up….

“ Quality is meeting or exceeding

customer expectations ”
 WHAT GOOD CAN
QUALITY DO ?
 Provides competitive advantage
 Reduces costs
 Lesser returns, rework & scrap
 Increases productivity & profits
 Generates satisfied customers
 “ No Quality, no sales. No sales, no
profit. No profits, no jobs.”
 QUALITY ASSURANCE
Cont….

PLAN

WHAT IS NEEDED?

ACTION DO

WHAT HAVE YOU CARRY OUT SMALL CHANGES

LEARNED?
CHECK

AUDIT WHAT HAS OCCURED

DEMING’S PDCA CYCLE

 Deming’s Dreadful Diseases
1. Looking elsewhere for 4. That employees (or
examples, or concluding unions)cause all the
that “our problems are problems.
different”. 5. Quality can be assured by
2. Creative accounting inspection.
rather than commitment. 6. False starts: no
3. Management’s failure to organization-wide
delegate responsibility. commitment.
 Conventional Wisdom Deming’s Approach
Quality is meeting conformance Quality is meeting & exceeding
standards. customer expectation.
Quality is an intangible good. Quality is defined by the customer.

Finding and Fixing problems Making changes to the system to

results in improvements, which prevent problems results in
may or may not be sustainable. sustainable improvements.
Effectiveness & efficiency are Effectiveness & efficiency are
achieved by meeting acceptable achieved by continually improving.
defect levels.
Crisis management is the Preventative management.
dominant management mode.
Performance standards & Changes in the process improve
quotas improve productivity. productivity.
Decisions are made by Decisions are made through
“superiors.” collaboration between staff &
management.
Top management evaluates the
organization on financial
performance.
Process improvement is expensive.
Only managers are capable of
identifying & making
Managers command functions & are
concerned with directing &
controlling.
Employees receive instruction &
information from above, as deemed
appropriate by management.
Leadership for an improvement
effort can be delegated to outside
expert.
Reviews are necessary only when
things go wrong.
Top management focuses on
process performance & customer
satisfaction as well as on financial
performance.
Process improvement leads to lower
costs.
Workers know the process best &
will suggest excellent ways to
improve it when given a chance.
Team leaders guide cross-functional
improvement teams & are
concerned with planning &
prevention.
Management shares information
with employees on a routine basis &
on request.
Leadership for an improvement
effort is provided by executives
within the org, who are accountable
for results.
Regularly scheduled performance-
improvement reviews are a key to
improved processes.
 A Manager Who Fails To Provide
Resources And Time For Prevention
Activities Is Practicing False Economy
Concentrate on Prevention, Not Correction

Prevention
Correction

Quality

Prevention has more leverage when improving quality

 QUALITY IS FREE !
According to Crosby:

 Quality is not only free, it is profit maker

 Increase of 5% -10% in profitability by
concentrating on quality
 Quality provides a lot of money for free
“Quality is never an
accident, it is always
the result of an
intelligent effort”
John Ruskin