Quality Management .


Quality Management

Quality management refers to systematic policies, methods, and procedures used to ensure that goods and services are produced with appropriate levels of quality to meet the needs of customers.

Quality Management 
What s quality? Different people have different ideas about quality. There is no clear definition on the term of quality.  From customer: quality is often associated with value/usefulness.  From producer: quality is the conformance to design specification.  From salesman: quality is related to features/functions/price

Quality Management

A Brief History of Quality Management Historical uses of quality management include the precision involved in building of Egyptian pyramids, interchangeable parts during Industrial Revolution, and statistical tools used for quality control during World War II. Dr. Joseph Juran and Dr. W. Edwards Deming were pioneers in the field . The Japanese integrated quality ideas and methods throughout their organizations and developed a culture of continuous improvement.

eliminating waste. doing it right the first time.Quality Management Understanding Quality Quality can be a confusing concept. partly because people view quality in relation to differing criteria based on their individual roles in the value chain. delighting or pleasing the customer. such as:      perfection. and/or consistency 5 .

Quality Management Meaning of Quality: Consumer s Perspective  Fitness for use how well product or service does what it is supposed to  Quality of design designing quality characteristics into a product or service 6 .

such as a stereo CD or a leather interior in a car  Reliability  probability that a product will operate properly within an expected time frame. that is.Quality Management Dimensions of Quality: Manufactured Products :  Performance  Features  basic operating characteristics of a product. how well a car is handled or its gas mileage  extra items added to basic features. a TV will work without repair for about seven years  Conformance  Durability  degree to which a product meets pre established standards  how long product lasts before replacement 7 .

Quality Management  Serviceability  ease of getting repairs. courtesy and competence of repair person  Aesthetics  how a product looks. sounds. speed of repairs. an especially important consideration for automobiles  Perceptions  subjective perceptions based on brand name. smells. feels. and the like 8 . or tastes  Safety  assurance that customer will not suffer injury or harm from a product. advertising.

and is it completed on time?  Is an overnight package delivered overnight?  Completeness:  Is everything customer asked for provided?  Is a mail order from a catalogue company complete when delivered?  Courtesy:  How are customers treated by employees?  Are catalogue phone operators nice and are their voices pleasant?  Is the same level of service provided to each customer each time?  Is your newspaper delivered on time every morning? 9  Consistency .Quality Management Dimensions of Quality: Service :  Time and Timeliness  How long must a customer wait for service.

Quality Management  Accessibility and convenience  How easy is it to obtain service?  Does a service representative answer you calls quickly?  Accuracy  Is the service performed right every time?  Is your bank or credit card statement correct every month?  Responsiveness  How well does the company react to unusual situations?  How well is a telephone operator able to respond to a customer·s questions 10 .

the hotel is not functioning according to specifications of its design 11 . they wobble  if a hotel room is not clean when a guest checks in.Quality Management Meaning of Quality: Producer s Perspective  Quality of Conformance Making sure a product or service is produced according to design  if new tires do not conform to specifications.

 Quality of conformance is the extent to which a process is able to deliver output that confirms to design specifications.  Specifications are targets and tolerances determined by designers of goods and services 12 .Quality Management Understanding Quality  Fitness for use is the ability of a good or service to meet customer needs.

13 . quality management needs less documentation and should focus on establishing a quality culture. For smaller systems. complex systems.Quality Management Scope of quality management Quality management is particularly important for large. The quality documentation is a record of progress and supports continuity of development as the development team changes.

 Quality control  Ensure that procedures and standards are followed by the software development team. 14 .  Quality management should be separate from project management to ensure independence.  Quality planning  Select applicable procedures and standards for a particular project and modify these as required.Quality Management Quality management activities  Quality assurance  Establish organisational procedures and standards for quality.

VII. XI. Better utilisation of resources.Quality Management Benefits of Quality Control I. Reduced customer complaints. V. VIII. X. IV. Reduced cost of labour and material as a result of reduced defectives. II. Increased quality consciousness among employees. Reduced variability resulting in-higher quality and reduced production bottle necks. Minimum scrap or rework due to reduced defectives. Better customer satisfaction and employee satisfaction 15 . III. VI.Higher operating efficiency. Uniform quality and reliability of product help in increasing sales turn over. Reduced inspection and reduced inspection costs.

product quality is synonymous with meeting specifications. This definition reflects the belief that through styles and tastes change. Innate excellence: excellence is both absolute and universally recognizable. Different users have different needs. Fitness for use: this approach is more user-oriented. They provide a standard against which other products are judged. and to the extent that a product is designed and manufactured to meet those needs. 3. there is something enduring about works of high quality. it is of high quality. 1.Traditional Definition of Quality Conformance to requirements: according to this view. This critical issue is whether the final product conforms to the design and performance standards that have content or validity of these standards. 2. 16 .

and automatic tuners on a color television set are all secondary to basic product or services being offered. 2. cruising speed. free drinks on a lengthy plane flight. and comfort. permanent press as well as cotton cycles on a washing machine. for a television set. color.Eight dimensions of product quality 1. 17 . these would be traits like acceleration. They would include sound and picture clarity. and ability to receive distant stations. handling. For an automobile. Product Features The bells and whistles that are often added to spice them up. Performance The primary operating characteristics of a product.

or delayed airline flight are often cited as examples or deteriorating quality. Reliability A reliable product is one that can be count on. 18 . Conformance This is a measure of consistency. a reflection on how well a product matches up against pre-established specifications. 4. Two common measures of reliability are the mean time to first failure (MTFF) and the mean time between failures (MTBF).3. the odds of its failing within a specific period is small. Incorrect bank statements. lost mail. This is an especially important element of service business.

Durability thus reflects the economic or physical life of a product. Durability This dimension is a characteristic of physical products alone. caterpillar Tractor s guarantee that replacement parts will be shipped anywhere in the world within 48 hours has undoubtedly enhanced its reputation for quality. For example. Serviceability Serviceability refers to the speed of repair which is therefore an important independent element in maintaining a quality image.5. 6. or miles that a product can be used before replacement is required. it is commonly measured by the number of hours. 19 .

How a product looks.7. For example. sounds. which are critical in assessing an unknown product.initially based on the performance of its laundry equipment. Perception of Quality Not only the most subjective dimension but also based on advertising or on the excellence of other produced by the company. the strong quality image of Maytag s new line of dishwashers. feels. rather than on any solid evidence of superior reliability or durability of this particular product. It shapes first impressions. That these elements affect buying behavior is certain-witness the attention paid to the superior fits and finishes of Japan automobiles 8.is a perfect example (halo effect) 20 . or smells is clearly a matter of personal judgment. Aesthetics This is a subjective dimension. tastes.

Quality Management in Services  Since many services are intangible it is difficult to determine their quality  Customers set their own standards for services  Perceived quality of service affected by the surroundings  Performance of service employees determine in large part the quality of the services 21 .

personnel. and communication material Ability to perform the promised service dependably and accurately Willingness to help customers and provide prompt services Knowledge and courtesy of employees and their ability to convey thrust and confidence Caring.Service Quality Dimensions Tangibles Appearance of physical facilities. equipment. individualized attention the firm provides its customers 22 Reliability Responsiveness Assurance Empathy .

Ph l p B Crosby (USA) 23 . Joseph Juran (USA) Mr. Edward Deming Dr.Modern Quality Management Quality Gurus and their Philosophies Dr. W.

Quality Gurus W. Edwards Deming ‡ W.S. Edwards Deming (USA) [U. statistician & consultant known as father of quality control] ‡ Assisted Japan in improving productivity and quality after World War II ‡ In 1951 Japan established Deming Prize ‡ US was slow in recognizing his contributions ‡ Introduced Japanese companies to the Plan-Do-Check-Act (PDCA) cycle (developed by Shewart) ‡ Deming s Developed 14 Points for managers for Quality Management ‡ Deming s Seven Deadly Diseases and Sins .

His findings are statistical and give powerful insights of excellent quality management.TQM Dr. Edward Deming. statistician & consultant known as father of quality control]  He is regarded as the initiator of quality revolution in Japan.  The Deming 14 points for quality management sounds very converse to the conventional principles of management . however when we shift from quantity to quality we need to make some drastic yet creative changes in production.  It s particularly useful with any enterprise concerned with production and distribution of goods. 25 .  W.S. administration and marketing. W. Edwards Deming (USA) [U. operation .  The points explain principles anyone can follow and implement even among large number of employees.

Cease dependence on inspection to achieve quality . 3. Adopt the new philosophy. End the practice of awarding business on the basis of price tag. 26 .TQM Deming 14 Principles of Quality Management. 2. 6. 5. Institute training on the job. 4. 1. Contd . Improve constantly and forever the system and of production and service. Create constancy of purpose toward improvement of product and service.

12. Break down barriers between departments. Eliminate slogans. 11. Drive out fear. Institute leadership. and targets for the work force Eliminate work standards (quotas) on the factory floor: Remove barriers to pride of workmanship: Institute a vigorous program of education and selfimprovement: Every one must undergo transformation continuously and indefinitely: 27 .TQM 7. 8. exhortations. 9. 13 14. 10.

TQM Deming s Deadly Diseases and Sins . 28 . 2. annual reviews. Mobility of management. merit rating. 7. 6. Performance evaluation. Excessive costs of warrantees. 4. 5. 1. 3. Excessive medical costs for employee health care. Lack of constancy of purpose. Emphasis on short-term profits. Running a company on visible figures alone.

1.Deming Wheel: PDCA Cycle 4. 3. continue cycle. Do Implement plan on a test basis. Plan Identify problem and develop plan for improvement. . Act Institutionalize improvement. is it working? 2. Study/Check Assess plan.

identify problems  Develop an improvement plan. implement new process 30 . performance objectives Do Implement the plan trial basis Study  Collect data and evaluate against objectives Act  Communicate the results from trial  If successful.TQM Deming Wheel: PDCA Cycle Plan  Evaluate current process  Collect procedures. data.

TQM Dr. influenced by Walter Shewhart. 31 . Defined quality as fitness for use . Juran Institute is still an active organization promoting the Juran philosophy and quality improvement practices. Emphasizes a more strategic and planning oriented approach to quality than does Deming. Joseph Juran (USA) Born in Romania (1904). immigrated to the US Worked at Western Electric.

Crosby ‡ Wrote Quality Is Free in 1979 ‡ Company should have the goal of zero defects ‡ Cost of poor quality is greatly underestimated ‡ Traditional trade off between costs of improving quality and costs of poor quality is erroneous .Quality Gurus ‡ Philip B.

Top management commitment b. Quality Habit e. 10 steps for Quality Improvement f.TQM The Philosophy : a. 33 . Universal Breakthrough Sequence. Quality Trilogy d. Costs of quality c.

Process inspection. returned goods. 2. retest. rework. Appraisal cost : Costs of incoming inspection. downtime. Prevention costs : Costs of quality planning. customer complaints. new product review. training. 3. Internal failure costs: Costs of scrap. quality laboratories and calibration of instruments.TQM b ) Costs of Quality: 1. 4. quality data and improvement projects. finished goods inspection. process planning. 34 . down grading(second quality products). External failure costs: Costs of warranty. allowances to customer for substandard quality products.

 Determine the needs of those customers.TQM c) Quality Trilogy 1. Quality planning:  Identify who are the customers. 35 .  Translate those needs into our language.  Develop a product that can respond to those needs.  Optimise the product features so as to meet our needs and customer needs.

 Optimise the process. Quality control  Develop a process which is able to produce the product.TQM 2. 3. 36 .  Transfer the process to operations improvement. Quality Improvement:  Prove that the process can produce the product under operating conditions.

TQM Quality Trilogy: 37 .

2. 4. Base rewards on results. 38 .TQM d) 1. Establish plans for achieving these goals. 3. Assign clear responsibilities to employees. Quality Habit: Establish specific goals.

3. Give recognition. 8. 10. Organize people to reach goals. Maintain momentum by making annual improvement part of the regular system and processes of the company. 1. 4. Provide training throughout the organization. Set goals for improvement. Report progress.TQM e) Juran s 10 steps for Quality Improvement. Build awareness for the need and opportunity for improvement. Keep score. Carryout projects to solve problems. 5. Communicate results. 39 . 6. 7. 2. 9.

Organizing for improvements. Project Identification. Resistance to change. 6.TQM f) Universal Breakthrough Sequence : Break through or major improvements follow the 7 steps given below. 7. 40 . Diagnostic journey. Remedial action. 2. Proof of need. 5. 4. Holding on to gains. 1. 3.

TQM Philip B. Crosby  Wrote Quality Is Free in 1979  Company should have the goal of zero defects  Cost of poor quality is greatly underestimated  Traditional trade off between costs of improving quality and costs of poor quality is erroneous .

42 . Assurance to the requirements which the company itself has established for its products based directly on its customers needs .TQM Ph l p B Crosby (USA)  Crosby s name is best known in relations to the concept Do It Right The First Time and Zero Defects .  He does not believe that workers should take the prime responsibility for the poor quality.  This will not prevent people from making mistakes.  The ultimate goal is to train all the staff and give them the tools for quality imprvement.  He defines quality as.  Zero defects means that the company s objective is doing things right first time . but will encourage everyone to improve continuously. the reality. to apply the basic precept of prevention management in every area. he says is that you have to get the management straight.

TQM Crosby s View of Quality Four Absolutes of Quality Management: 1. Quality measurement is the price of on conformnace. And prevention was a result of training. leadership and more. 4. example. 3. Errors should not be tolerated. Quality means conformance to requirements. discipline. Quality performance standard is zero defects. Requirements needed to be clearly specified so that everyone knew what was expected of them. 2. 43 . Quality comes from prevention.

Take actions to correct problems identified through previous steps. 4. Evaluate the cost of quality and explain its use as a management tool. Raise the quality awareness and personal concern of all employees. 6. 3. Form quality improvement teams with representatives form each department. 2. Establish a committee for the zero defects programme 44 . Determine where current and potential quality problems lie. Make it clear that management is committed to quality.TQM Corsby s 14 Steps to Improvement: 1. 5. 7.

14. Encourage employees to communicate to management the obstacles they face in attaining their improvement goals. Hold a zero defects day to let all employees realize that there has ben a change. Establish quality councils to communicate on a regular basis. 11. 12. Train supervisors to actively carry out their part of the quality improvement programme. 9.TQM 8. 13. . 10. Encourage individuals to establish improvement goals for themselves and their groups. Do it all over again to emphasize that the quality 45 improvement programme never ends. Recognize and appreciate those who participate.

TQM Crosby s Quality Vaccine or Crosby Triangle. 46 .

47 .Thank You.