OM 0016 Quality Management

Contents Unit 1 Quality as Strategy Unit 2 Quality Concepts and Philosophies Unit 3 The Six Sigma Concept Unit 4 Quality Management Systems Unit 5 Strategic Quality Planning and Management Unit 6 Quality Improvement Unit 7 Reliability Unit 8 Quality Cost and Schedule Unit 9 Quality Control and Quality Assurance Audits Unit 10 Developing Quality Culture
Edition: Spring 2010 BKID B1341 20 Dec. 2010
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Unit 11 Designing for Quality Unit 12 Quality in Manufacturing and Service Sectors Unit 13 Quality Analysis and Tools Unit 14 Total Quality Management Unit 15 Quality and Productivity

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Dean Directorate of Distance Education Sikkim Manipal University (SMU DDE) Board of Studies Chairman HOD Management & Commerce SMU DDE Additional Registrar SMU DDE Controller of Examination SMU DDE Dr. T.V. Narasimha Rao Adjunct Faculty & Advisor SMU DDE Prof. K.V. Varambally Director, Manipal Institute of Management Manipal Content Preparation Team Team Triumph Triumph India Software Services Pvt Ltd. Bangalore 560 094 Instructional Designing Team Triumph, Triumph India Software Services Pvt Ltd. Bangalore 560 094 Curriculum Revised Printed : : Spring 2010 December 2010 Mr. Pankaj Khanna Director, HR Fidelity Mutual Fund Mr. Shankar Jagannathan Former Group Treasurer Wipro Technologies Limited Mr. Abraham Mathew Chief Financial Officer Infosys BPO, Bangalore Ms. Sadhna Dash Ex Senior Manager HR Microsoft India Corporation (Pvt.) Ltd. Content Review Mr. Manoj S. G. Lecturer. SMUDDE EduNxt First Floor, Manipal Towers 14 - Airport Road Bangalore 560 008 Language Editing Ms. Neelam Singh

This book is a distance education module comprising a collection of learning materials for our students. All rights reserved. No part of this work may be reproduced in any form by any means without permission in writing from Sikkim Manipal University, Gangtok, Sikkim. Printed and Published on behalf of Sikkim Manipal University, Gangtok, Sikkim by Mr. Rajkumar Mascreen, GM, Manipal Universal Learning Pvt. Ltd. Manipal 576 104. Printed at Manipal Press Limited, Manipal.

SUBJECT INTRODUCTION
Quality Management (OM 0016) Quality management focuses on product and services. There are three major components in quality management: quality control, quality assurance and quality improvement. Suppliers distinguish that quality can be an important differentiator between their own offerings and those of competitors (quality differentiation is also called the quality gap). The quality gap has been reduced partly due to the constricting (outsourcing) of products to countries like India and China, as well internationalisation of business and competition. These countries have raised their own standards of quality in order to meet International standards and customer demands. The ISO 9000 series of standards are the best known International standards for quality management. Six Sigma (Six standard deviations means 3.4 defects per million) was designed for developing but has spread to service enterprises. Total Quality management is a part of quality management; it features the customersupplier relationship. (external and internal customers and suppliers). It is important not to underestimate the human factors, such as culture, in selecting a quality improvement approach. One of the important factors in quality is Quality audit. Quality Management evolved from the work of the quality gurus and their theories: Example American gurus featured in the 1950's Japan: Joseph Juran, W Edwards Deming, and Armand Feigenbum, Kaoru Ishikawa and Genichi Taguchi. Unit 1: Quality as Strategy This unit focuses on the need for quality as a strategy, correlating data quality and strategy. It also describes data quality and data quality standards. It also explains governance and leadership, and policies and procedures in brief that are part of data quality standards. Unit 2: Quality Concepts and Philosophies This unit defines quality and relates quality with productivity, costs, cycle time, and value, which can have positive or negative impact on quality. It also discusses the historical development beginning from guilds of medieval

Europe to World War II, and comprehends quality concepts and philosophies as substantiated by quality gurus. Unit 3: The Six Sigma Concept This unit explains six sigma as a quality framework. It also discusses the historical development of six sigma concept. It describes six sigma as a quality management strategy in five phases, and also, assesses the benefits and drawbacks of six sigma that are important to quality management. Unit 4: Quality Management Systems This unit describes quality management and Quality Management System (QMS). It also interprets the reasons for implementing a quality management system. It also classifies different types of quality management systems that can be implemented to guide an organisation towards improved performance, and explains quality management system design and requirements to achieve more consistent quality. Unit 5: Strategic Quality Planning and Management This unit discusses Strategic Quality Planning and Management, its elements and elucidates the concept of integrating quality into Strategic Management. It also identifies the advantages of Quality Planning and the development stages of strategies and goals. It analyses the specific characteristics and execution of Action Plans. It gives an overview of the role played by Executive Leadership to implement strategies and goals and the obstacles to achieve the planned goals Unit 6: Quality Improvement This unit focuses on Quality Improvement and the methods adopted for the same within an organisation. It gives an overview of the concepts such as Quality Standard and Quality Terms. The unit identifies the problems encountered in the process of Quality Improvement. It also describes Project by Project Approach with example, and the need for frequent improvement. Unit 7: Reliability This unit defines the concept of Reliability, its types and the requirements for the same. It describes Reliability theories on equipment performances, Reliability predictions and estimations. It also identifies the measures of

Reliability and the varying degrees of reliability required for different situations in an organisation. Unit 8: Quality Cost and Schedule This unit explains the concept of Quality Cost and Schedule, its types, and the typical uses of quality cost. It describes the scenario of Initial Cost study and Data collection for the same within an organisation. The unit analyses the Cost Control Problem and the implemented risks. It also gives an overview of Schedule control, budget updates and Cost and schedule information. Unit 9: Quality Control and Quality Assurance Audits This unit covers quality control, quality assurance, quality audits and quality assessments. It describes the seven quality control tools. It identifies control subjects for quality. It describes how to prepare and plan audits. It also explains the basic steps in audit reporting. Unit 10: Developing Quality Culture This unit covers quality culture and corporate culture. It also explains different theories which motivated quality culture. It summarises why quality culture is important. It also categorises five key drivers for quality culture. Unit 11: Designing for Quality This unit describes the quality functional deployment. It generalises the key issues that emerge while viewing design and development as a process. It also explains designing for safety, maintainability, manufacturability and reliability. Unit 12: Quality in Manufacturing and Service Sectors This unit explains the various steps involved in the initial planning for quality. It classifies the three main criteria for self control. It describes overall review of manufacturing planning. It also evaluates measurements in manufacturing operations and service operations. Unit 13: Quality Analysis and Tools This unit introduces the history and concept of quality analysis and tools. It explains the four new tools and techniques for quality analysis. It also describes the different techniques used in an organisation to monitor quality

analysis. It evaluates the concept of benchmarking and Quality Function Deployment (QFD). Unit 14: Total Quality Management This unit defines Total Quality Management (TQM) and its concept. It discusses a modern management framework for total quality and the elements involved in it. It also discusses the starting changes, the six basic stages and profiles of success after implementing Total Quality Management (TQM). Unit 15: Quality and Productivity The unit gives an idea of Quality Control, its significance and the different methods of Quality Control. The unit also defines the concept of Productivity and its significance. It describes the factors that determine the productivity levels. It also analyses the relation between Quality and Productivity within an organisation. Objectives of studying the subject After studying this subject, you should be able to: Assess the need for quality as a strategy Explain six sigma as a quality framework Identify the different theories related to the concept Classify different types of quality management systems Explain the concept of Cost Of Quality (COQ) Recognise control subjects for quality Explain the concept of Strategy Quality Planning and Management Explain different theories which motivated Quality Culture Describe Quality Functional Deployment Describe Overall review of manufacturing planning List out the benefits of incorporating new quality control tools and techniques Define the Six basic stages in Total Quality Management Explain the concept of Quality Control and its methods