7/23/2015

MODULE - I
QUALITY SYSTEMS
M.SURESH
ASSISTANT PROFESSOR/EEE
KONGU ENGINEERING COLLEGE
PERUNDURAI 638 052
Email id: infostosuresh@gmail.com
Mobile:+91-9578951073

7/23/2015

MODULE - I OUTLINE

Introduction to Total Quality Management

Definition of Quality
Dimensions of Quality
Quality Planning
Quality Costs
Basic concepts of Total Quality Management
Historical Review
Need for ISO 9000 and Other Quality Systems
ISO 9000:2008 Quality System- Elements
Implementation of Quality System
Documentation
Quality Auditing
Introduction to TS 16949, QS 9000
ISO 14000, ISO 18000
ISO 20000, ISO 22000

7/23/2015

7/23/2015

INTRODUCTION TO TOTAL QUALITY

MANAGEMENT
Made up of whole

Degree of excellence a product

or service provides

Act , art or manner of handling,

controlling, directing , etc.
7/23/2015

TQM-Art of managing the whole

to achieve excellence
Definition of TQM:
It is defined as
both a philosophy
and set of guiding
principles that
represent the foundation of a continuously improving
organization.
7/23/2015

7/23/2015

SIX BASIC CONCEPTS OF TQM

1.Commitment and Involvement
2.Focus on customer (internally and externally)
3.Effective involvement and utilization of entire work
force.
4.Continuous improvement (Business and Production)
5.Treating suppliers as partners
6.Establish performance measures for the processes

7/23/2015

6 GURUS OF
1: Deming 2: Juran 3: Feigenbaum

7/23/2015

4 :Ishikawa

5: Crosby

6: Shewhart

7/23/2015

DEFINITION OF QUALITY
QUALITY

Excellent product or service

that fulfills or exceeds our expectations
Quality can be quantified as follows:
If Q>1,Customer
has a good feeling
about the product
or service

Q= Quality

P= Performance

Q=P/E
E= Expectations

7/23/2015

DEFINITION OF QUALITY IN ISO

9000:2000
It is defined as the degree to which a set of
inherent characteristics fulfills requirements.
Degree - poor , good and excellent(quality)
Inherent permanent characteristic
Characteristics qualitative or quantitative
Requirement need or expectation

7/23/2015

7/23/2015

DIMENSIONS OF QUALITY
---------------------------------------------------------------------------------------------------------------- ---------------------------------------------

Dimension
Meaning and Example
---------------------------------------------------------------------------------------------------------------1. Performance
Primary product characteristics, such as the brightness of the
picture
2.Features
Secondary characteristics, added features, such as
remote control
3.Conformance
Meeting specifications or industry standards, workmanship
4.Reliability
Consistency of performance over time, average time of the
unit to fail
5.Durability
Useful life, includes repair
6.Service
Resolution of problems and complaints, ease of repair
7.Response
Human to human interface, such as the courtesy of the
dealer
8.Aesthetics
Sensory characteristics, such as exterior finish
9.Reputation
Past performance and other intangibles, such as being ranked
first
-------------------------------------------------------------------------------------------7/23/2015

QUALITY PLANNING
The following are the important steps for quality
planning.
Establishing quality goals
Identifying customers
Discovering customer needs
Developing product features
Developing process features
Establishing process controls and transferring
to operations
7/23/2015

10

7/23/2015

IMPORTANT POINTS TO BE NOTED

WHILE QUALITY PLANNING
Business, having larger market share and better
quality, earn returns much higher than their
competitors.
Quality and Market share each has a strong separate
relationship to profitably.
Planning for product quality must be based on
meeting customer needs, not just meeting product
specifications.
For same products ,we need to plan for perfection.
For other products, we need to plan for value.

7/23/2015

11

QUALITY PLANNING ROAD MAP

It can be applied to the following:
1. Supervisory and worker level(self-control &
triple role concept)
2. Functional level(marketing)
3. Multifunctional systems(MIS,HR)
4. Major programmes

7/23/2015

12

7/23/2015

JURANS QP ROAD MAP

7/23/2015

13

QP MAPPING

7/23/2015

14

7/23/2015

QUALITY COSTS
QUALITY COSTS

Falls into two categories..

Cost of conformance
(Cost of achieving good quality)

Cost of non - conformance

(Cost associated with poor
quality)

7/23/2015

15

CATEGORIES OF QUALITY COSTS

7/23/2015

16

7/23/2015

COST OF GOOD QUALITY

PREVENTION COSTS:
Planned cost by an organization
to ensure no errors are made at
any of the various stages during the
delivering process of that product or
service to the customer
Delivery process - design,
development, production and shipping
Prevention Costs - training ,
Continuous improvement efforts, quality administration,
process control, market research, field testing and preventive
maintenance.
7/23/2015

17

COST OF GOOD QUALITY

APPRAISAL COSTS:
Cost of verifying , checking or evaluating
a product or service at various stages during the delivery
process of that product or service
to the customer.
Appraisal Costs- receiving or incoming inspection , internal
product audit , inspection activities , inventory counts ,
quality administration salaries , supplier evaluation and audit
reports

7/23/2015

18

7/23/2015

COST OF POOR QUALITY

Cost incurred by the company because
the product or service did
not meet the requirements
the product had to be
fixed or replaced
the service had to be repeated

7/23/2015

19

INTERNAL FAILURES COSTS

-failures that are found before the product or
service reaches the customer
-Internal failure costs include:
Scrap
Rework
Extra inventory
Process failure
Process downtime
Process-downgrading
7/23/2015

20

10

7/23/2015

EXTERNAL FAILURES COSTS

- Occurs when the customer finds the failure
- Do not include any customers personal costs
- External failure costs include:
Customer complaint costs
Customer follow up and field services
Product return costs
Warranty claims

7/23/2015

21

HIDDEN QUALITY OF COSTS(QOC)

Customer dissatisfaction costs
Lost reputation costs
Customer incurred costs

7/23/2015

22

11

7/23/2015

TOTAL COST OF QUALITY

Prevention + Appraisal +
Internal failures + External
failures
Actual cost of a product
or service
What reduced cost would be if
there were no possibility of
service,failures or defects in their
manufacture

7/23/2015

23

ANALYSIS OF QUALITY COSTS

There are three curves
1. Failure costs (FC=0 if product is 100% good or
FC=infinity if product is 100% defective)
2. Costs of appraisal + prevention (100%
defective , cost=0 and rises if perfection is
approached)
3. The sum of curves 1 & 2 (Total cost of quality
per good unit of product)
7/23/2015

24

12

7/23/2015

Economics of Quality of
conformance

7/23/2015

25

ANALYSIS TECHNIQUES FOR

QUALITY COSTS
Two common techniques:
Trend Analysis
Pareto Analysis

7/23/2015

26

13

7/23/2015

TREND ANALYSIS
Present level Vs. Past levels
It provides information for:
-long range planning
-instigation and assessment
of quality improvement
programs
Taken as Quarterly reports

7/23/2015

27

TREND ANALYSIS

7/23/2015

28

14

7/23/2015

PARETO ANALYSIS
Item values are
located as bars in
descending order
Left items
(substantial amount
of the total)-vital few
Right small amount
of total-trivial many
7/23/2015

29

BAR CHARTS AND PIE CHARTS

To compare similar item of a competing
organization

7/23/2015

30

15

7/23/2015

HISTORICAL REVIEW
Stone Age- Man used Sharp
Tools to earn his livelihood
Middle age - Skilled craftsman
built Pyramids in Egypt and the
Craftsman trained family members
as Apprentices.
Industry revolution concept of
specialization of labor was introduced.

7/23/2015

31

HISTORICAL REVIEW
1924 - Statistical quality control
chart developed by
W.A.Shewhart
in Bell Laboratories.
1942 H.F.Dodge and H.G.Romig
Quality of acceptance instead
of 100% inspection
- US industry managers failed to
understand its value
7/23/2015

32

16

7/23/2015

HISTORICAL REVIEW

7/23/2015

1946 American Society for

Quality Council was formed (recent
name - ASQ)
1950 W.Edwards Deming and
Joseph .M.Juran gave lectures on
Statistical methods to Japanese
Engineers
1960s first Quality circle was
formed
In 1970s US industries started
practicing these concepts
33

HISTORICAL REVIEW

7/23/2015

In middle of 1980 Concepts of

TQM were published
In late 1980s Statistical process
control was emphasized
MALCOM BALDRIGE NATIONAL
QUALITY AWARD to measure
TQM First award
Genichi and Taguchi Concept of
parameter and tolerance design
Design of Experiments(DOE) as
important quality tool
34

17

7/23/2015

HISTORICAL REVIEW

Japanese DEMING AWARD HIGHEST at global level

In 1996 Saturn Automobile ranked first in customer
satisfaction
ISO 9000 worldwide model for a quality system
ISO 14000 - worldwide model for environmental
management systems & continues with new
standards.......
7/23/2015

35

NEED FOR ISO 9000 AND

OTHER QUALITY SYSTEMS
What is a standard?
- document that provides requirements,
specifications, guidelines or characteristics that
can be used consistently to ensure that materials,
products, processes and services are fit for their
purpose.

7/23/2015

36

18

7/23/2015

NEED FOR A QUALITY SYSTEM

Customer needs Good

Quality product at a
lower cost

An organisations role
To satisfy the customers
needs proper
utilization of resources
and ideas with cost
reduction in mind

QUALITY MONITORING
SYSTEM
- sets standards of quality

7/23/2015

37

ISO - International Organization

for Standardization

7/23/2015

ISO, is an international standardsetting

body
composed
of
representatives from various national
standards organizations.
Founded on 23 February 1947, the
organization promotes worldwide
proprietary, industrial and commercial
standards.
Head Quarters - Geneva, Switzerland
and as of 2013 works in 164 countries
Over 19 500 International Standards
38
are published

19

7/23/2015

POPULAR STANDARDS

7/23/2015

39

STANDARDS IN ACTION

7/23/2015

40

20

7/23/2015

STANDARDS IN ACTION

7/23/2015

41

ISO 9000 STANDARDS

ISO 9001
Design, Development, Production, Installation &
Servicing
ISO 9002
Production, Installation & Servicing
ISO 9003
Inspection & Testing
ISO 9004
Provides guidelines on the technical, administrative
and human factors affecting the product or services.
7/23/2015

42

21

7/23/2015

OBJECTIVES OF ISO 9000

STANDARDS
Each organization should:
Achieve and sustain the quality of the
product or service produced so as to meet
implied needs continuously.
Provide confidence to its own management
that the intended quality is being achieved.
Provide confidence to the purchasers that the
intended quality is being or will be achieved
in the delivered product or service provided.
7/23/2015

43

BENEFITS OF ISO 9000 STANDARDS

Achievement of international standard of quality.
Value for money.
Customer satisfaction.
Higher productivity.
Increased profitability
Improved corporate image
Access to global market
Growth of the organization
Higher morale of employees

7/23/2015

44

22

7/23/2015

CLAUSES (ELEMENTS) OF ISO 9000 (During the year

1987)

7/23/2015

45

CLAUSES (ELEMENTS) OF ISO 9000:2008 (During the year 2000)

7/23/2015

46

23

7/23/2015

IMPLEMENTATION OF QUALITY
SYSTEM ISO 9000:2008
Requirements:
1.Top management Commitment
2. Appoint a Management Representative
3. Awareness
4. Appoint an Implementation team
5. Training
6. Time Schedule
7. Select Element Owners
7/23/2015

47

IMPLEMENTATION OF QUALITY
SYSTEM ISO 9000:2008
Requirements:
8. Review the Present System
9. Preparation of the Document
10. Install the New system
11. Internal Audit
12. Management Review
13. Pre Registration
14. Registration
7/23/2015

48

24

7/23/2015

MODULE - I OUTLINE

Introduction to Total Quality Management

Definition of Quality
Dimensions of Quality
Quality Planning
Quality Costs
Basic concepts of Total Quality Management
Historical Review
Need for ISO 9000 and Other Quality Systems
ISO 9000:2008 Quality System- Elements
Implementation of Quality System
Documentation
Quality Auditing
Introduction to TS 16949, QS 9000
ISO 14000, ISO 18000
ISO 20000, ISO 22000

7/23/2015

49

Whatever you Do ,
Document it.
Whatever you
Document , Do it.
Demonstrate
7/23/2015

50

25

7/23/2015

DOCUMENT PYRAMID
POLICY

.................Why , What

........Who , When , Where

PROCEDURES
WORK
INSTRUCTIONS
RECORDS
7/23/2015

.........How

....Evidence
51

QUALITY SYSTEM
AUDITING
A systematic and independent
examination to determine whether
quality activities and related results
comply with planned arrangements
and whether these arrangements are
implemented effectively and are
suitable to achieve the objectives

7/23/2015

52

26

7/23/2015

OBJECTIVES OF AUDIT
1. To determine the effectiveness of
the quality system implemented in
achieving quality objectives.
2. To provide an opportunity to
improve the quality systems.
3. To meet
regularity and/or
statutory requirements.
4. To provide an evidence for
effectiveness of the quality system
implementation for certification
7/23/2015

53

STAGES OF AUDIT
1.Planning and Preparation for the audit
2.Execution of the Audit plan

3.Reporting the audit results

4.Corrective actions and follow up

7/23/2015

54

27

7/23/2015

How to conduct an audit?

According to Quality manual,
Opening meeting
Gathering information
Record observations and non conformances
Evaluate the significance of non conformances
Assess the compliance to the requirements
Prepare the document for findings
Closing meeting and review
7/23/2015

55

TYPES OF AUDITS

QUALITY AUDITS
INTERNAL
AUDIT
FIRST PARTY
AUDIT
7/23/2015

EXTERNAL AUDIT
SECOND
PARTY AUDIT

THIRD PARTY
AUDIT
56

28

7/23/2015

TYPES OF AUDITS
FIRST PARTY
AUDIT

Independent self assessment system looking at its

own activities for continuous improvement
Can be carried out within a particular area or function
within an organization

SECOND
PARTY AUDIT

Supplier quality assurance audits

To ensure the purchasing organisations , level of
confidence and suppliers capabilities

THIRD PARTY
AUDIT

Conducted by recognized certifying agency or a

statutory body
Certificate of Quality Assurance will be issued

7/23/2015

57

TYPES OF AUDITS(BASED ON THE

AREA OF COVERAGE OF AUDIT)
System audit to evaluate and ensure the quality of
the supplied products
Process audit to inspect the processes involved
Product audit Conducted before delivery of the
product to check specifications and customer needs
Compliance audit to establish the extent to which
the documented system is implemented and
followed by the employees

7/23/2015

58

29