MODULE FOUNDATIONS OF QUALITY MANAGEMENT

3:
CBM 121
 The DEMING Philosophy:
The Deming Philosophy, known as Dr. Deming's “theory of management”
and later his “System of Profound Knowledge,” represents a holistic
approach to leadership and management. The philosophy brings together an
understanding of variation, theory of knowledge, psychology and
appreciation for a system.

The Deming System of Profound Knowledge® promotes transformation

through an essential “lens” which will benefit anyone and any organization.
In short, the System of Profound Knowledge is a way for people and
organizations to continually improve. As the leading proponent of Dr.
Deming’s theories and teachings, The Deming Institute is helping people
bring quality, joy and success to their work and their lives through the
Deming philosophy.

William Edwards Deming (October 14, 1900 – December 20, 1993) was an
American engineer, statistician, professor, author, lecturer, and management
consultant. Educated initially as an electrical engineer and later specializing
in mathematical physics, he helped develop the sampling techniques still
used by the U.S. Department of the Census and the Bureau of Labor
Statistics. He is also known as the father of the quality movement and was
hugely influential in post-WWII Japan. He is most well-known for his theories
of management.
The JURAN Philosophy:

Joseph Moses Juran (December 24, 1904 –

February 28, 2008) was a Romanian-born
American engineer and management consultant.
He was an evangelist for quality and quality
management, having written several books on
those subjects.
 Quality Management :
Quality Management is used by organizations to
ensure a product or service is consistent and meets certain
standards. It is made up of four segments: quality
planning, quality control, quality assurance, and quality
improvements.

Quality management includes everything we do to make

sure we produce and deliver our company’s products and
services to spec and at the appropriate cost. Quality
management also includes making sure goods arrive on
time. It ensures that a company’s goods or services are
consistent.

Quality management focuses both on product and service

quality and on the means to achieve it. It has four main
components: quality planning, quality control, quality
assurance, and quality
Importance of Quality Management:
Why is quality management important?

Product quality is one of the biggest differences between failing

and successful companies, as winning firms will always have a
Quality Management System (QMS) in place to ensure that all of
their products meet the standards their consumers expect. If a
company fails to guarantee the quality of their products and/or
services, they risk losing paying customers to competitors who’re
able to guarantee those standards with an effective Quality
Management System.

Consistently meeting the expectations of your customers is a very

important part of any successful business, however the benefits
of guaranteeing quality within your product range extends wide
beyond the business-consumer relationship. If your company is
able to deliver these consistent standards and qualities it will be
eligible to receive an IS09001 certification.
Dimensions of Quality:
 The CROSBY Philosophy:
Philip Bayard "Phil" Crosby, (June 18, 1926 – August 18, 2001) was a
businessman and author who contributed to management theory and quality
management practices.[4]

Crosby initiated the Zero Defects program at the Martin Company.[5] As the quality control
manager of the Pershing missile program, Crosby was credited with a 25 percent reduction in the
overall rejection rate and a 30 percent reduction in scrap costs.

Crosby published his first business book, Quality Is Free, sub-titled The Art of Making Quality
Certain. This book would become popular at the time because of the crisis in North American
quality. During the late 1970s and into the 1980s, North American manufacturers were losing
market share to Japanese products largely due to the superior quality of the Japanese goods.

Crosby's response to the quality crisis was the principle of "doing it right the first time" (DIRFT).

• 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.
 Total Quality Management:
Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in
manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that
employees are up to speed with training.

TQM Approach:
 TQM Elements:
1.) Continual Improvement

2.) Competitive Benchmarking

3.) Employee Empowerment

4.) Team approach

5.) Knowledge of tools

 ISO 9000:
ISO is an independent, non-governmental international
organization with a membership of 165 national standards
bodies. Through its members, it brings together experts to
share knowledge and develop voluntary, consensus-based,
market relevant International Standards that support
innovation and provide solutions to global challenges.

The acronym ISO stands for “International

Organization for Standardization”.
 ISO 9000 Series:
ISO 9000 Series
- is defined as a set of international standards on quality management and quality assurance
developed to help companies effectively document the quality system elements needed to maintain
an efficient quality system. They are not specific to any one industry and can be applied to
organizations of any size.

ISO 9000 can help a company satisfy its customers, meet regulatory requirements, and achieve
continual improvement. It should be considered to be a first step or the base level of a quality
system.
Key Requirements for Registration:

1.) Inspection
2.) Purchasing
3.) Training
4.) Packaging
5.) Delivery
 ISO 9000 Series:
ISO 9000 Series
• ISO 9000 – Helps companies determine which standard of ISO 9001, 9002, and
9003 applies.

• ISO 9001 – Outlines guidelines for companies that engage in design,

development, production, installation, and servicing of product and service.

• ISO 9002 – Similar to ISO 9001, but excludes companies – engaged in design
and development.

• ISO 9003 – Covers companies engaged in final inspection and testing.

• ISO 9004 – The guidelines for the application of the elements of the Quality
Management System.
 Quality Management System :
A quality management system (QMS) is defined as a formalized system that documents processes, procedures,
and responsibilities for achieving quality policies and objectives. A QMS helps coordinate and direct an
organization’s activities to meet customer and regulatory requirements and improve its effectiveness and
efficiency on a continuous basis.

Eight Principles of QMS:

 Consequences of Poor Quality:
Poor quality can have several business-related consequences. The most common are
lost customers, lower productivity, and increased costs. In some cases, poor quality
can also lead to product liability claims. In some cases, poor quality can also lead to
legal action against the manufacturer or supplier.

Some other consequences of poor quality include:

• Increased legal fees

• Decreased reputation
• Loss of goodwill
• Increased product liability claims
• Increased product recalls
• Increased warranty costs
 Quality Circles Committee:
Conceptually, quality circle can be described as a small group of employees from the same work area who meet equally and
regularly and work to identify, analyze and solve work related problems.

This small group participates with each member of the circle, fully carry out the activities, uses problem solving techniques to
achieve control or improvement in the work area and helps in the process itself and mutual development .
 Quality Circles Committee:
What are the objectives of quality circle?
-- To improve quality, productivity, safety and cost reduction.

-- To give employees a chance to use their intelligence and creativity.

-- Encouraging team spirit, a harmonious culture among different levels and

classes of employees.

-- To promote self and mutual development including quality of leadership.

-- To meet the self-esteem and motivational needs of employees.

-- To improve the quality of work-life of employees.

Any Questions