Quality management I

Module 7

CONCEPTS OF QUALITY
Q- Quest for excellence U- Understanding customers needs A- Action to achieve customers appreciation L- Leadership-determination to be a leader I- Involving all people T- Team spirit to work for a common goal Y- Yardstick to measure progress

Quality -Definitions
The ability of a product or service to meet customer needs The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs-American Society for Quality Meeting or exceeding customer requirements now and in the future. This means that the product/service is fit for customers use, Fitness for use is related to benefits received by the customer and to ensure customer satisfaction

Dimensions of Quality wrt a product

Quality expected from a product (Tangible) Eg: TV, Computers, Bikes

1.
2. 3. 4. 5. 6. 7. 8.

Performance: how well the product performs customers use eg: speed of a laser printer Features: special characteristics that attracts a customer eg: power steering and central locking system of an automobile Reliability: frequency of malfunction, breakdown or repairs eg: cartridge of a xerox machine Serviceability: speed , cost and convenience of repairs and maintenance eg: service of washing machines Durability: length of time of use before repairs/replacement eg: a car can be used for 5-10 years Appearances: look, feel, taste , smell or sound of a product eg: look of a bike, smell of a perfume, sound of a music system Customer service: treatment received by customers before, during and after the product sale eg: credit card Safety: how well the product protects users during use eg: helmets

Quality concepts wrt Service

Quality expected from service sectors (Intangible) Eg: Hotel, Hospitals, Banks

1. 2. 3. 4. 5. 6. 7. 8. 9.

Reliability: consistency and dependability Responsiveness: willingness to provide service Competence: possession of skills and knowledge to perform Access: approachability and ease of contact Courtesy: politeness, respect, neatness and appearance Communication: talking to customers in their language Credibility: trust and belief Security: freedom from danger, risk Understanding the customer needs: learning customer requirement, providing individual attention 10. Tangibles: physical evidence of service (facilities, tools and equipment) eg: a cinema theatre with good seating arrangement

Quality and productivity

Quality drives the productivity machineproved by Japanese manufactures. Right quantity produced at right time Reduction in Defect free products Cost and productivity Elimination of waste improved poor quality-adversely affects productivity Poor quality can lead to rework, injury, scarpthus reducing output

Quality and cost

Traditional view-quality cost Modern view improve in quality reduction in cost Cost of raw materials Cost of production Cost of maintenance Cost of breakage Cost of rework, breakdown, testing and inspection.

Quality and cycle time

cycle time
Period required to complete one cycle of an operation; or to complete a function, job, or task from start to finish. Cycle time is used in differentiating total duration of a process from its run time.

Reduction in cycle time Less wastage Faster production

Quality and value

Many customers regard quality as a source of value Value includes
Improved reputation Easier selling Legal implication Reduced lead time(reduced inspection) Improved productivity Reduced cost Employer pride

Customer response

New thinking about Quality

Old Quality was 1. About products 2. Technical 3. For Inspectors 4. Led by Experts 5. High grade 6. About control 7. Little q

New Quality is 1. About organizations 2. Strategic 3. For every one 4. Led by Management 5. The appropriate grade 6. About improvement 7. Big Q

Small q and Big Q

Small q 1. Focus on product quality 2. Focus on segregating good products and bad products 3. Focus on repairing/replacing products Big Q 1. Focus on product, process and customer 2. Focus on the process to produce only good products 3. Focus on the concept of prevention is better than cure

Benefits of quality
Producing superior quality products / service is vital to the continued growth success of a company, therefore benefits of quality are given below. 1. It gives a positive company image 2. It improves competitive ability both nationally and internationally 3. It increases market share, which translates into improved profits 4. Overall it reduces costs which also results in profits 5. It reduces problems & avoids unnecessary costs 6. It creates an atmosphere for high employee morale, which improves productivity

Juran Philosophy

Joseph M. Juran
Dr. Joseph M. Juran has also contributed a lot to the movement of total quality. Raised pertinent questions on the contribution of quality in reducing costs and improving standards in his book titled: Quality Control Handbook in 1951 which has subsequently become an essential reference book on quality.

Jurans Quality trilogy

Quality planning

Quality improvement

Quality control

Jurans Quality Trilogy

Planning
Preparing to meet quality goals Ensure that process capable of meeting goals

Control
Process for meeting goals Ensure that operations conducted according to plan

Improvement
Process of breaking through to new levels Ensure that operations at superior performance

Cost of quality

These are certain costs which are associated with product and service quality. 4 major categories of quality costs are
Prevention costs Appraisal costs Costs of internal failures Costs of external failures

Prevention costs
Are associated with preventing defects before they happen. Include costs of
Redesigning the product to make it simple, Training the employees for continuous improvement Working with suppliers to increase quality of raw materials Performance checking methods

Appraisal costs
Are incurred in assessing the level of quality attained by the operating the system. Include inspection costs, testing and other quality control activities. As preventive costs increases, appraisal costs decreases.

Internal failure costs

Results from defects that are discovered during production of a product Defective parts need to be repaired or scrapped This costs includes repairing costs , replacement costs or new part costs

External failure costs

Arise when a defect is discovered by the customer after the dispatch of the product This include warranty costs, product liability costs or settlement costs or replacement costs.

DEMINGS 14 PRINCIPLES
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Create constancy of purpose for improvement of product and service. Adopt the new philosophy for economic stability Cease dependence on inspection to achieve quality End the practice of awarding business on the basis of price tag alone. Improve constantly and forever every process for planning, production , and service, Institute training on the job. Adopt and institute leadership Drive out fear Break down barriers between departments and individuals. Eliminate the use of slogans, exhortations for the work force. Eliminate work standards and numerical quotas Remove barriers that rob people of pride of workmanship. Institute a vigorous program of education and retraining Define top managements permanent commitment to ever improving quality

 An organisation must define its values, mission and vision of the future to provide long term direction for its management and employees Deming believed that businesses are social entities whose basic purpose is to serve their customers and employees. To do this, they must take a long term view and invest in innovation, training and research

1.Create constancy of purpose for continual improvement of product and service

2.Adopt the new philosophy for economic stability

Old methods of management built on F.W.Taylors principles, such as quota driven production and adversarial work relationships will not work in todays global environment. Companies must take a customer driven approach based on mutual cooperation between labor and management and a never ending cycle of improvement Everyone from CEO to the lowest level employee of the organisation must recognise the need for a new philosophy to keep the firm and its functions alive and growing in todays competitive environment and must learn the new philosophy

3. Cease dependency on inspection to achieve quality

Routine inspection acknowledges that defects are present , but does not add value to the product. Defects are inherent to any product or process, and we can hope to prevent those defects from reaching customers only by inspecting them .this is the traditional view of operations managers Workers must take responsibility for their work rather than leave the problems for the quality inspectors. Statistical tools can be used to help control processes and eliminate mass inspection as the principal activity in controlling activity.

4.End the practice of awarding business on the basis of price tag alone..
Purchase department have been driven by cost minimisation, without regard to quality There is a need for total cost assessment of any purchase. Low prices are often associated with low quality, which can actually rise overall costs through increased expenses for inspection, scrap and rework , inventory to replace defective items and employee frustration Managers must identify and assess all of the effects and costs created by every purchase from the supplier that offers the lowest total cost

5.Improve constantly and forever every process for planning, production , and service,
Western management has viewed improvement in the context of large, expensive technological innovations such as robotics and computer integrated manufacturing, whereas Japanese manufacturers success is primarily due to incremental improvements. Improvements are necessary in both design and production. Improved design comes from understanding customer needs through continual market surveys and other sources of feedback Also understanding the manufacturing process and developing designs having producibility (economic manufacture) are essential to achieve improved design Improved production is achieved by reducing the causes of variation and establishing stable, predictable processes.

6.Institute training on the job

For continuous improvement ,both employees and management require the proper tools and knowledge. People are an organisations most valuable resource and the management must take the responsibility of training them on their jobs so that they do a good job. However, most firms view training as a requirement of newly hired employees only. Later they implicitly and wrongly assume that the employees no longer need any training. The critical need to learn never ends. All employees should be trained in statistical tools for solving quality problems. Training result in improvement in quality and productivity, but it adds to workers morale. Training removes barriers between workers and supervisors, giving both more incentives to improve further.

7.Adopt and institute modern methods of supervision and leadership

The job of managers is leadership, not supervision. Supervision is simply overseeing and directing work, whereas means providing guidance to help employees do their job better with less effort. Supervisors and managers must see themselves as teachers, coaches and facilitators who support the activities of workers in immediate contact with process problems. They must encourage and promote team work and reward innovation and initiative. Leadership qualities in supervisors and managers can help to eliminate the element of fear from the job and encourage team work.

8. Drive out fear

Deming identified fear as a major obstacle to improve efficiency and effectiveness and a major barrier to change and survival. Fear is manifested in many ways fear of reprisal, fear of failure, fear of the unknown, fear of losing control and fear of change. Fear affects an operating system, organisation in many ways. Some people are afraid to ask questions to reveal their weaknesses in their knowledge ,fear of poor performance, fear of termination prevents employees from taking up new challenges To drive out fear , managers must create an environment that encourages people to ask questions, report problems and try new ideas. Employees must know that the firm will not punish , if the idea fails. Managers must demonstrate the importance of trying something new that offers a change for a major leap in effectiveness rather than sticking with safe methods that offer only stable or declining results.

9.Breakdown barriers between departments and individuals

Interdisciplinary teams can enhance quality and effectiveness of efforts to design and build products as compared with a strictly functionally oriented process. Team work helps to break down the barrier between departments and individuals In Japan, firms emphasise that the next department or individual in the production process is actually the customer (internal customer) and train those workers to manage such customer relationships. To overcome the barriers between individuals , managers must encourage team work by making changes such as moving work stations closer together, assigning people to teams and changing the performance measurement system to reward group performance rather than individual results.

10.Eliminate the use of slogans, exhortations for the work force.

Posters, slogans and motivational programs calling for zero defects, Do it right first time, improve productivity and quality and so on are directed at the wrong people. These slick messages assume that all quality problems are due to human behavior

11. Eliminate work standards and numerical quotas

Standards and quotas are short term perspectives and they create fear of penalty actions They do not encourage improvement, particularly if rewards and performance appraisals are based on numerical quotas Workers may short cut quality to reach the target of numerical quotas

12.Remove the barriers that treat the workers as commodity

Employers treat/feel that workers and managers are commodity which can be used as per the wishes of the employers Employees are not recognized as valuable human resources Workers are given monotonous tasks, provided with inferior machines, tools or materials and are asked work at odd hours

13. Institute a vigorous program of education and retraining

Continual training keeps the workforce uptodate with the latest developments, changes in the machines, design, new tools and innovative techniques Organisation must invest in training all the workers to sharpen their skills

14. Define top managements permanent commitment to ever-improving quality and productivity

Top managers actions communicate the true importance of quality and TQM throughout the firm The commitment of Top Managers to quality encourages many managers and employees to follow top managers towards organizational and personal success

PDCA (PLAN-DO-CHECK-ACT) CYCLE

Plan-Do-Check-Act ( PDCA Cycle ):- A four step process for quality improvement. In the first step (PLAN), A plan to effect improvement is developed. In the Second step (DO), the plan is carried out. In the third step ( CHECK), the effects of the plan are observed. In the last step (ACT) ,Action is taken to carry out the plan after making necessary corrections. This is repeated till the original plan is achieved.

Plan-Do-Check-Act (PDCA) Circle

Plan Act
(As Needed)

Do

Check
(Analyze)

Plan
A plan can be to initiate a new process or improve an existing one it should be based upon customer needs, and resolve to more effectively fulfill the organizations mission

Do
Carry out the process /activities as per the plan

Check
Review the gathered data to determine if the planned and implemented change has created the quality improvement intended.

Act
Take action, either to implement the change or change variables to see if the process can be made more effective, or Standardize the new, successful process.

PDCA-Never Ending Process

A never-ending process Shouldnt be considered a constant burden but rather an indication that the organization is still breathing, still transforming to meet the ever-changing needs of the customer.

Quality circle

QUALITY CIRCLE
Members come from same work area doing similar work. So that the problems they identify, will be similar to all the members for effective participation. The optimum size of a circle is 7 to 8 members. Decision is made by the members voluntarily.

Organisations practicing quality control

Q.C. Concept can be practiced in diverse areas as manufacturing, hospitals, financial and educational institutions, insurance corporations, travel agencies , hotels etc. Q.C. Is practiced successfully in companies like general electric co., Ford., Toyota motor co., Q.C. Is in force in India in Bharat Heavy Electricals Ltd., Hindustan Machine Tools ltd., Tata Engineering and Locomotive co. Ltd., Larsen and Toubro ltd.,

Highlights of quality circle

The organisation gets the total man. Quality of work life is emphasized & improved. Brings out extra -ordinary qualities from ordinary people. To display the human capabilities Prepares the employer & employees to meet the changing time & conditions.

What quality circles are not?

It is a mistaken impression that quality circles are meant to solve only quality problems. The American society for quality control in their book quality control circles applications tools & theory shows the following: 22% problems are related to quality. Japanese automobile industry shows that 33% of the problems are related to Reduction of defects i.e. Quality. BHEL ,only 26% of the problems are solved by quality circles on quality.

Importance of quality in quality control

Prime objective of Q.C. Is to improve quality of work life and environment. Quality through Q.C. Helps getting satisfied customer, repeated business, improve profitability, job security & harmony of enterprise.

Quality Function Deployment (QFD)

QFD
Products are- designed by cross-functional teams, translating customer requirements into detailed technical product specifications can be very difficult Japanese developed an approach called Quality function deployment (QFD) to meet customer requirements throughout the design process and also in the design of production systems QFD is a method by which cross-sectional teams translate customer requirements into appropriate design requirements at each stage of the product development process

Benefits of Quality Function Deployment

Customer driven: The focus is on customers wants, not what the company thinks the customer wants. The "Voice of the Customer" drives the development process. Competitive analysis: Other products in the marketplace are examined, and the company product is rated against the competition. Reduced development time: The likelihood of design changes is reduced as the QFD process focuses on improvements to be made to satisfy key customer requirements. Careful attention to customer requirements reduces the risk that changes will be required late in the project life cycle. Time is not spent developing insignificant functions and features. Reduced development costs: The identification of required changes occurs early in the project life cycle. Minimizing changes following production reduces warranty costs and product support costs. Documentation: A knowledge base is built as the QFD process is implemented. A historical record of the decision-making process is developed.

Elementary Statistical Methods

Dr K. Ishikawa considers them as seven indispensable(vital) tools to be used by everyone i.e. Company Managing Directors, Company Directors, Middle Management, Foreman and line workers.

Elementary Statistical Methods

It can be used anywhere. According to him 95% of all the problems in a company can be solved by these tools.

In Japan these tools are used effectively by top management to line workers.

7 QC TOOLS

7 QC tools-USE
Used to identify, analyze and resolve problems Simple but very powerful tools to solve day to day work related problems Find solutions in a systematic manner Widely used by Quality Circle members world over

Elementary Statistical Methods (7 QC-tools)

1. Check-sheet (for data collection) 2. Graph 3. Control Chart 4. Pareto Chart

5. Cause and Effect Diagram

6. Histogram 7. Scatter Diagram

Purpose of QC tools
1. Control charts
Highlighting problems

2. Histogram, Check sheets, Pareto diagrams, Scatter diagram, Graphs

Identifying specific improvement opportunities

3. Cause and effect diagram(fish diagram)Ishikawa

Analysing problems and their root causes

Check sheet
Check sheets are formats used to collect and organize data Data can be collected easily and concisely Data is collected on the characteristic of interest. The right data could be captured with all necessary facts included e.g.:
as when it happened ? how many ? what customer ?

CHECK SHEETS Component name : ABC Date of Production:22-Aug-03

Type of defects Scratch

Dent Flow mark Short Shot Total

Check

Sub-Total
3 7 11 2 23

60

Data collection
SOLDER BATH TEMPERATURE
CHECKED BY Bajrang: DATE :14.8.98

TAKE READING OF TEMPERATURE NEAREST TO DEGREE.

TIME

TEMP (deg cen ) TIME . .

TEMP ( deg cen ) . .

0800 0900 1000 1100 1200

60 62 59 58 59

1300 1400 1500 1600 1700

61 58 63 63 59

Data collection : To understand the magnitude of the problem and understand the problem. It is the foundation for statistical analysis.

Histogram
Histogram is the Frequency data obtained from measurements displaying a peak around a certain value and represented in form of polls The variation of quality characteristics is called Distribution For study of process variation and assess process capability.

Histogram
30 142 144 20 146 148 15 150 152 10

25

FREQUENCY

154
156

158

WEIGHT OF SOAP (GMS)

Graphs
BUDGET PROPOSAL

Graphs : Presentation of large amount of data in a

cohesive manner in the pictorial form to enable better understanding of the data and the problem and also to comprehend the trend at a glance.

Control Chart

Quality control charts, are graphs on which the quality of the product is plotted as manufacturing or servicing is actually proceeding. It graphically, represents the output of the process and uses statistical limits and patterns of plot, for decision making Enables corrective actions to be taken at the earliest possible moment and avoiding unnecessary corrections. The charts help to ensure the manufacture of uniform product or providing consistent services which complies with the specification.

Overview of the 7 Tools

UPPER CONTROL LIMIT CENTRAL LINE LOWER CONTROL LIMIT

Control Charts :A continuous monitoring system using statistical principles to identify when the process is likely to go out of control An out of control situations points deteriorating quality in the process and triggers closer observation and further analysis

PARETO CHART Based on 80/20 rule (or ABC analysis) Pareto(V.Pareto,an Italian economist) discovered this universal law-80% of anything is attributed to 20% of its causes 80% of the wealth is held by 20% of the population. 80% of our income goes into 20% of our needs. 80% of road accidents occur on 20% of the road. 80% of the absenteeism in a company is due to 20% of workmen

Significant few & in-significant many

Pareto chart
Cumulative hours spent by warehouse

workers on different jobs

1800 1600 1400
80 100

Receival

Dispatching

Inspecting

1200 1000 800

40

%
60

Tending warehouse Status reports

HOURS

600 400 200 0

0

Inventory
20

taking Dead stock disposal

Nature of job

Pareto Chart : For identification/selection of major problem or area for improvement or control, to differentiate between vital and trivial problems.

PARETO CHART Pareto analysis begins by ranking problems from highest to lowest in order to fix priority The cumulative number of problems is plotted on the vertical axis of the graph against the cause/phenomenon Pareto by Causes e.g. Man,Machine,Method etc Pareto by Phenomenon e.g.Quality,Cost,Delivery

Tells about the relative sizes of problems indicates an important message about biggest few problems, if corrected, a large % of total problems will be solved

CAUSE n EFFECT (FISH BONE) DIAGRAM

This diagram (resembles skeleton of a fish) helps to separate out causes from effects and to see problem in its totality Its a systematic arrangement of all possible causes, generated thru brain storming This can be used to : Assist individual / group to see full picture.

Serve as a recording device for ideas generated.

Reveal undetected relationships between causes. Discover the origin/root cause of a problem Create a document or a map of a problem which can be posted in the work area.

70

Cause and effect diagram

CAUSE
CAUSE EFFECT

CAUSE

CAUSE

Cause & Effect Diagram : To map out all probable causes and relate the logical linking of causes to the problem to help narrow down to the cause or causes.

CAUSE n EFFECT (FISH BONE) DIAGRAM

MAN MATERIAL EQUIPMENT

EFFECT

MACHINE

METHOD

ENVIRONMENT

The problem categories considered are : Man, Machine, Method, Materials, Equipments & Environmental.

72

SCATTER DIAGRAM

The scatter diagram is used for identifying the relationships and performing preliminary analysis of relationship between any two quality characteristics. Clustering of points indicate that the two characteristics may be related

Scatter diagram
Scatter Diagram : For examining relationship between two variables, nature and strength of relationship between process factors and product quality. In a way it is also a cause and effect approach between two variables.

DEFECT LEVEL

LEVEL OF RESIN

What are the New Seven Q.C. Tools ?

Affinity Diagrams

Relations Diagrams

Tree Diagrams
Matrix Diagrams

Aim was to develop more QC techniques with design approach

Arrow Diagrams Process Decision Program Charts Matrix Data Analysis

Relation Between New Seven Q.C. Tools and Basic Seven Tools
FACTS
Data Numerical Data
Define problem after collecting numerical data

Verbal Data
Define problem before collecting numerical data

The Basic Seven Tools

Analytical approach

The Seven New Tools

Generate Ideas

Organize Information

Formulate plans

New Seven Q.C. Tools

Affinity Diagrams

For Pinpointing the Problem in a Confused Situation and Generating Solution Strategies

Gathers large amounts of intertwined verbal data (ideas, opinions, issues) Organizes the data into groups based on natural relationship

Makes it feasible for further analysis and to find a solution to the problem.

New Seven Q.C. Tools

Affinity Diagrams

Advantages of Affinity Diagrams

Facilitates breakthrough thinking and stimulate fresh ideas

Permits the problem to be pinned down accurately

Ensures everyone clearly recognizes the problem Incorporates opinions of entire group

New Seven Q.C. Tools

Relations Diagrams

For Finding Solutions Strategies by Clarifying Relationships with Complex Interrelated Causes

Resolves twisted issues by sorting out the logical connection Allows for Multi-directional thinking rather than linear

Also known as Interrelationship diagrams

New Seven Q.C. Tools

Relations Diagrams

Advantages of Relations Diagrams Useful at planning stage for obtaining outlook on overall situation

Facilitates harmony among team

Assists to develop and change peoples thinking Enables priorities to be identified accurately

New Seven Q.C. Tools

Tree Diagrams

For Systematically Pursuing the Best Strategies for Attaining an Objective

Develops a sequence of strategies for achieving objectives Reveals methods to achieve the results.

Also known as Systematic diagrams or Dendrograms

New Seven Q.C. Tools

Tree Diagrams

Advantages of Tree Diagrams Systematic and logical approach is less likely that items are omitted Facilitates agreement among team Are extremely convincing with strategies

New Seven Q.C. Tools

Matrix Diagrams

For Clarifying Problems by Thinking Multidimensionally

Consists of a two-dimensional array to determine location and nature of problem

Discovers key ideas by relationships represented by the cells in matrix.

New Seven Q.C. Tools

Matrix Diagrams

Advantages of Matrix Diagrams Enable data on ideas based on extensive experience Clarifies relationships among different elements Makes overall structure of problem immediately clear Combined from two to four types of diagrams, location of problem is clearer.

New Seven Q.C. Tools

Arrow Diagrams

For Working Out Optimal Schedules and Controlling Them Effectively

Shows relationships among tasks needed to implement a plan Network technique using nodes for events and arrows for activities Used in PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method)

New Seven Q.C. Tools

Arrow Diagrams

Advantages of Arrow Diagrams Allows overall task to viewed and potential snags to be identified before work starts

Leads to discovery of possible improvements

Makes it easy to monitor progress of work Deals quickly with changes to plan Improves communication among team

New Seven Q.C. Tools

Process Decisions Program Charts

For Producing the Desired Result from Many Possible Outcomes

Used to plan various unforeseen events Used for getting activities back on track Steers events in required direction if unanticipated problems occur Finds feasible counter measures to overcome problems

New Seven Q.C. Tools

Process Decisions Program Charts

Advantages of Process Decisions Program Charts (PDPCs) Facilitates forecasting Uses past to anticipate unforeseen events Enables problems to pinpointed Illustrates how events will be directed to successful conclusion Enables those involved to understand decision-makers intentions

New Seven Q.C. Tools

Matrix Data Analysis

Principal Component Analysis

Technique quantifies and arranges data presented in Matrix

Based solely on numerical data

Finds indicators that differentiate and attempt to clarify large amount of information

New Seven Q.C. Tools

Matrix Data Analysis

Advantages of Principal Component Analysis

Can be used in various fields (market surveys,

new product planning, process analysis)

Can be when used when Matrix diagram does not give sufficient information

Useful as Prioritization Grid

Deming Prize
Instituted 1951 by Union of Japanese Scientists and Engineers (JUSE) Several categories including prizes for individuals, factories, small companies, and Deming application prize American company winners include: Florida Power & Light, and AT&T Power Systems Division

Malcolm Baldrige National Quality Award (MBNQA)

Helped to improve quality in U.S. companies To Recognize achievements of excellent firms and provide examples to others To Establish criteria for evaluating quality efforts Malcolm Baldrige, To Provide guidance for other former U.S. Secretary companies of Commerce

Criteria for Performance Excellence

Leadership Strategic Planning Customer and Market Focus Information and Analysis Human Resource Focus Process Management Business Results

Baldrige Award trophy

Quality system
American national standards institute(ANSI) defines quality system as the collective plans, activities and events that are provided to ensure that a product, process or service will satisfy given needs The quality management system is the management system that enables the organization to fulfill its purpose and mission.

Need for quality system

Organisational goals are met through coordination of goals of individual units Effective quality control
Requires integration of quality actions of the people, the machines and the information into strong total quality systems

Customer quality satisfaction Economical cost of quality Prevention oriented control

Benefits of quality system

Production quality control Timely Corrective action Control of material and component parts User safety Product design assurance, specification development and control Guidelines for specific jobs and for recruiting people

ISO 9000:2000

International Standards Organisation (ISO)

Objectives of ISO 9000

1. Achieve, maintain and seek to continuously improve product quality 2. Improve the quality of operations to continually meet customers and stakeholders stated and implied needs 3. Provide confidence to internal management and other employees that quality requirements are being fulfilled and that improvement is taking place 4. Provide confidence to customers and other stakeholders that quality requirements are being achieved in the delivered product and 5. Provide confidence that quality system requirements are fulfilled

Structure of ISO Quality standards ISO 9000

Definition of concepts ISO 8402

Selection and use of the standards ISO 9000 Non-Contractual situations

Contractual situations

Quality Management and Quality system Elements ISO 9004

06.03.2008

3 models for Quality Assurance

ISO 9001 ISO 9002 ISO 9003

ISO 9000 series

ISO 8402: Terminology standard, provides definitions of all terms , is a comprehensive glossary ISO 9000: Helps companies determine which standard of ISO 9001, 9002 and 9003 applies 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 applying the elements of the Quality Management system

5 objectives of ISO 9000

1. Achieve, maintain and seek to continuously improve product quality including service relationships 2. Improve the quality of operations to continuously meet customers and stake holders stated and implied needs 3. Provide confidence to internal management and other employees that quality requirements are being fulfilled and that improvement is taking place 4. Provide confidence to customers and other stake holders that quality requirements are being achieved in the delivered product 5. Provide confidence that quality system requirements are fulfilled

ISO 9000
ISO 9000 is a starting point for understanding the standards, as it defines the fundamental terms used in the ISO 9000 family, or set of standards relating to quality management. ISO 9001 specifies requirements for a quality management system whereby you can demonstrate ability to provide products that fulfill customer requirements as well as applicable regulatory requirements; it also aims to enhance customer satisfaction.

Important clauses in ISO 9000-2000(customer related process)

1. Clause 5.1 requires top management to demonstrate its commitment to creating awareness of the importance of fulfilling customer requirements. Clause 5.2 requires top management to ensure that customer needs and expectations are determined and converted into specific requirements. Clause 5.6.3 requires that the management representative ensure awareness of customer requirements throughout the organization. Clause 7.2.1 requires the organization to implement a process for identifying customer requirements. The process is to include requirements that are not specified but are necessary for fitness of purpose; requirements dictated by laws and regulations; and requirements for availability, delivery and support. Clause 7.2.3 requires the organization to define and implement arrangements for communication with customers. Clause 8.2.1.1 requires the organization to establish a system for obtaining and using information on customer satisfaction and dissatisfaction.

2.
3. 4.

5. 6.

Important clauses in ISO 9000-2000(Continual improvement)

Clause 5.4 requires the quality policy to include commitments to meeting requirements and to continual improvement, provide a framework for establishing and reviewing quality objectives, and be periodically reviewed for continuing suitability. Clause 5.5.1 requires the organization to establish quality objectives supporting the quality policy and the commitment to meet requirements and pursue continual improvement. Clause 5.5.2 requires the organization to identify and plan activities and resources needed to achieve quality objectives. Clause 5.7 requires the management review to evaluate the need for changes to the quality system, policy and objectives and include review of performance and improvement opportunities. It also requires the outputs from the management review to include actions related to improvement of the quality system, audits and resource needs. Clause 8.4 requires the organization to collect and analyze data to determine the effectiveness of the quality system and to identify where improvements can be made. Clause 8.5.1 requires the organization to establish a procedure for the use of quality policy, objectives, and quality-related data and information to facilitate continual improvement.

Important clauses in ISO 9000-2000(Process control)

Clause 7.1 requires organizations to determine and implement the criteria and methods to control processes to the extent necessary to achieve product conformity and consistent operation; to monitor processes, including measurement and follow-up actions, to ensure that processes continue to operate satisfactorily; and to maintain records of the results of process control measures. Clause 8.2.2 requires application of suitable methods for measurement and monitoring of processes.

ISO requirements
1.Management responsibility 2.Quality system 3.Contract review 4.Design control 5.Document and data control 6.Purchasing 7.Control of supplied products 8.Product identification and traceability 9.Process control 10.Inspection and testing

ISO requirements contd..

11. Control of inspection, measuring and test equipment 12. Inspection and test status 13. Control of nonperforming products 14. Corrective and preventive action 15. Handling, storage , packaging, preservation and delivery 16. Control of quality records 17. Internal quality audits 18. Training 19. Servicing 20. Statistical techniques

Basic requirements for ISO 9000 certification

Documentation: develop documentation of procedures for activities Performance : use documentation as a working tool for doing activities Verification: verify that all activities meet the requirements of Documentation procedures Filing: maintenance of files

Advantages of ISO 9000 certification

Marketing muscle: ISO company offers a better product and service which gives the marketing strength to a company Contractor selection : ISO certification helps in the Selection of contractors in abroad which otherwise becomes difficult to search for a contractor Supplier : Selecting a new supplier can be time consuming and costly. If a supplier is ISO certified , it is easy to select the supplier Benefits for all the parties like companies, suppliers, contractors and customers Continual improvements

Criticism (Disadvantages ) of ISO

Bureaucratic Costly No guarantee that a company that is certified provides a quality service or product Quality certification only provides a book of procedures and not necessarily better quality Many companies such a s Hewlett-Packard , Marc and Spencer enjoyed a reputation for quality before certification of ISO People are demotivated because certification puts a block on individual initiative Systematic controls and written procedures are considered as being unnecessary policing of activities of workers. Demands more work from employees and hence more human resources are required

Enter QS 9000
ISO
A tool for any type of business Non-Specific: Any Industry Any Product

QS
Specific to: 3 Companies Automotive Focus developed in September 1984 A tool for doing business with: Ford GM Chrysler

The Basics
Say What You Do
This means document your systems so you will consistently do the job the same way every time. We must make sure we have appropriate documentation.

Do What You Say

This is what the auditors want to see. Objective evidence that what you say you are doing in your documentation is what you are doing in practice.

QS 9000
QS 9000 not only states what to do , it also says how to do it? QS 9000 includes all the requirements of ISO 9000, but it goes beyond ISO 9000 by adding more quality requirements. They are 1. Common requirements as of ISO 9001 and the addition of automotive/heavy trucking requirements 2. Additional requirements covering production part approval process, continuous improvement and manufacturing capabilities 3. Customer specific requirements that are unique to FORD,CHRYSLER, and GENERAL MOTORS Companies registered under QS 9000 will receive ISO 9000 certificates, but ISO 9000 Companies should go for QS 9000 audit separately to receive QS 9000 certificate

What is Documentation?
Documentation is much talked about. There is process documentation in the manufacturing areas. Everyone uses documentation outside of work. If you buy something (like a clock), there are instructions in the box. That is documentation. Think of documentation as instructions. Documentation explains how to do things. The auditors job is to make sure everyone is Following Instructions.

QS 9000 clauses
The QS-9000 standard was developed by Chrysler, Ford, General Motors and numerous major truck manufacturers in 1994. QS-9000 is sometimes thought of as identical to ISO 9000. However, even though each element of ISO 9000 is an element of QS9000, the OS-9000 requirements contain added clauses.

QS 9000 clauses
Clause 4.2.3 Control of Documents
Documents required by the quality management system shall be controlled in terms of review/update, changes/revisions, distribution, approval, etc.

Clause 6.2.2.2 Training

The organization shall establish and maintain documented procedures for identifying training needs and achieving competence of all personnel performing activities affecting product quality.

Clause 7.1.4 Change Control

The organization shall have a process to control and react to changes that impact product realization.

QS 9000 clauses contd..

Clause 7.2.3 Customer Communication
The organization shall determine and implement effective arrangements for communicating with customers in relation to product information-customer feedback, including customer complaints.

Clause 8.2.2 Internal Audit

The organization shall conduct internal audits at planned intervals to determine whether the quality management system conforms to the planned arrangement-and is effectively implemented and maintained.

QS 9000 clauses contd..

Clause 8.5.2.1 Problem Solving
The organization shall have a defined process for problem solving leading to root case identification and elimination.

Clause 8.5.3 Preventive Action

The organization shall determine action to eliminate the causes of potential nonconformities in order to prevent their occurrence.

QS 9000 Reminders
Does NOT define quality Is NOT a one-time process Is NOT easy Requires commitment Requires resources

Six Sigma - What is Six Sigma?

Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects in any process -from manufacturing to transactional and from product to service. The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma defect is defined as anything outside of customer specifications.

 The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement.

3.4 ppm 233 ppm 6210 ppm 66810 ppm 308,700 ppm

69.13%
-2 3 4 5

+2

93.32% 99.3790% 99.97670% 99.999660%

122

+3 +4
Meera Uday,GAT

+5

SIX SIGMA - Rating

Yield
99.9997% 99.976% 99.4% 93% 65% 50%

PPMO
3.4 233 6,210 66,807 308,537 500,000

COPQ
<10% 10-15% 15-20% 20-30% 30-40% >40%

Sigma
6 5 4 3 2 1
PPM 1000000 100000 10000 1000 100 10 1 3

World Class Benchmarks

Industry Average

Non Competitive The Basic Objective

Source: Journal for Quality and Participation, Strategy and Planning Analysis

Average Company

Best-in-Class
4 5 6

Sigma Scale of Measure

SIX SIGMA Indias SIX SIGMA strategists

- Wipro - MOTOROLA - Allied Signal - Bajaj Auto - GE Motors

- Hero Motors - Maruthi Udyog - Modi Xerox - Godrej

Kaizen (Continuous Improvement)

Punctuality in all aspects delivery, supply, manufacture, etc.

Great attention paid to customer requirements and needs

Kaizen (Continuous Improvement)

Japanese concept not made redundant by the decline of the Japanese economy which may be due to other institutional factors! Focus on gradual and continuous improvement A whole business philosophy Importance of EVERYONE buying into the concept and the vision

kanban

Materials requirement planning technique developed by Toyota Corporation (as a part of just-in-time inventory system) in which work-centers signal with a card when they wish to withdraw parts from feeding operations or the supply bins. Kanban means a visible record (such as a billboard, card, label, or sign) in Japanese.

Why top management is a key to implement a QMS?

Changeover dynamics:
Implement a QMS is a changeover for the organisation. The team in charge of the implementation of the QMS needs the support of the very top of the management.

One of the demands of the ISO standard:

The ISO standard describes the specific role of the management in the QMS. It is the first chapter of the ISO 9001 standard (ISO 9001,1994).

A strategic decision:
Implementing a QMS involves investments and resources over a long time. So this decision depends on top management

Role of management in implementing quality systems

Integrating quality and operational aims
Top management has to be judged on the impact of quality management on commercial and production objectives.

Setting an example
Personal commitment of the top management has to be demonstrated with concrete actions. For example, they can ask an internal quality audit on their sector of activity to show the transparency they demand to their staff.

Management reviews
The quality policy has to be clear and has to live. At the level of top management, management reviews are the elements of quality policy's life.