Unit-1

Total Quality Management

Unit I
1. Define Total Quality?
TQM is an enhancement to the traditional way of doing business. It is the art of managing the
whole to achieve excellence. It is defined both a philosophy and a set of guiding principles
that represent the foundation of a continuously improving organization

2. Define Quality?
Quality = Performance x Expectations
Five definitions of quality : Transcedent definition, product based definition , user
based definition ,manufacturing based definition, value based definition.
Quality characteristics : structural characteristics, sensory characteristics ,time
oriented characteristics ,ethical characteristics.

3. What are the Dimensions of Quality?

Performance , Features, Conformance , Reliability, Durability, Service, Response ,
Aesthetics , Reputation.

4. Give the Basic Concepts of TQM?

A committed and involved management to provide long- term top- to-bottom organizational
support. An unwavering focuses on the customer, both internally and externally. Effective
involvement and utilization of the entire work force. Continuous improvement of the
business and production process. Treating suppliers as partners. Establish performance
measures for the processes.
.QUANITIFICATION OF QUALITY
Q = P/E

P = Performance

E = Expectations

DIMENSION OF QUALITY

1.

Performance

2.

Features

3. Conformance

4.

Reliability

5.

Durability

6. Service

7.

Response

8.

Aesthetics

9. Reputation

TOTAL QUALITY MANAGEMENT

Total - Made up of the whole
Quality- Degree of excellence a product or service provides Management- Act, Art or manner
of handling, controlling, directing, etc...
Why TQM:
1. A question of survival in the intense competitive environment
2. Increasing customer consciousness
DEFINITION:
1 .TQM is the management approach of an organization, centred on quality, based on me
participation of all its members and aiming at long-term success through customer
satisfaction and benefits to all members of me organization and to society.- ISO
2. TQM is an integrated organizational approach in delighting customers (both internal and
external) by meeting their expectations on a continuous basis through everyone involved with
the organization working on continuous improvement in all products, services, and processes
along with proper problem solving methodology - INDIAN STATISTICAL INSTITUTE ( ISI
)
3. TQM is people focussed management system that aims at continual increase in customer
satisfaction at continually lower cost. TQM is a total system approach (not a separate area of
program ) , and an integral part of high level strategy. It works horizontally across functions
and departments, involving all employees, top to bottom, and exceeds backwards and forward
to include the supply chain and the customer chain TOTAL QUALITY FORUM OF USA
CHARACTERISTICS

1. Customer Oriented
2. Long term commitment for continuous improvement of all process
3. Team work
4. Continuous involvement of top management
5. Continuous improving at all levels and all areas of responsibility

Fig: TQM WHEEL IMPORTANT FOR EXAM

BASIC CONCEPTS OF TQM:

1. Top management commitment
2. Focus on the customer Both internal and external
3. Effective involvement and utilization of entire work force
4. Continuous improvement
5. Treating suppliers as partners
6. Establishing performance measures for the processes

PRINCIPLES OF TQM:
1. Customers requirements - ( both internal & external) must be met first time & every time
2. Everybody must be involved
3. Regular two way communication must be promoted I
4. Identify the training needs and supply it to the employees
5. Top management commitment is must

6. Every job must add value

7. Eliminate waste & reduce total cost
8. Promote creativity
9. Focus on team work.

TQM FRAME WORK

BARRIERS IN TQM IMPLEMENTATION

1. Lack of management commitment
2. Lack of faith in and support to TQM activities among management personnel
3. Failure to appreciate TQM as a cultural revolution. In other words, inability to change
organizational culture
4. Misunderstanding about the concept of TQM
5. Improper planning
6. Lack of employees commitment
7. Lack of effective communication
8. Lack of continuous training and education

9. Lack of interest or incompetence of leaders

10 .Ineffective measurement techniques and lack of access to data and results
11. Non-application of proper tools and techniques
12. Inadequate use of empowerment and team work

BENEFITS OF TQM
Tangible Benefits

Intangible Benefits

Improved product quality

Improved employee participation

Improved productivity

Improved team work

Reduced quality costs

Improved working relationships

Increased market and customers

Improved customer satisfaction

Increased profitability

Improved communication

Reduced employee grievances

Enhancement of job interest

Enhanced problem solving capacity
Better company image

6. Give the Principles of TQM?

1. Constancy of purpose: short range and long range objectives aligned
2. Identify the customer(s); Customer orientation
3. Identification of internal and external customers
4. Continuous improvement
5. Workflow as customer transactions
6. Empower front- line worker as leader
7. Quality is everybodys business
8. Customer orientation to child care services, a marketing perspective
9. Barriers that exist to a customer orientation

7. Give the Obstacles associated with TQM

Implementation?
I. Lack of management commitment Inability to change organizational culture
II. Improper planning Lack of continuous training and education
III. Incompatible organizational structure and isolated individuals and
IV. Departments Ineffective measurement techniques and lack of access to data and

V. Results Paying inadequate attention to internal and external customers.

VI. Inadequate use of empowerment and teamwork.

8. Give the Objectives of TQM?

a. To develop a conceptual understanding of the basic principles and methods associated with
TQM;
b. To develop an understanding of how these principles and methods have been put into effect
in a variety of organizations;
c. To develop an understanding of the relationship between TQM principles and the theories
and models studied in traditional management;
d. To do the right things, right the first time, every time.

9. Give the Quality Hierarchy?

1. Inspection
2. Quality Control (QC)
3. Quality Assurance (QA)
4. Total Quality Management Inspect products. Detection Finding & Fixing Mistakes.
Creation of any product involves two major stages intellectual creation and physical
creation. During intellectual creation a product is conceived in the mind and a design is
created and after that it is physically produced.
The term quality involves two complementary aspects, quality of design and quality of
conformance. So, good quality can be attained only when both of them are controlled
satisfactorily. Quality is designed into a product as much as it is built in during its production
or service processes.

Quality of design
Quality of design is the quality which the producer or supplier is intending to offer to the
customer. When the producer is making the quality of design of the product, he should take
into consideration the customer's requirements in order to satisfy them with fitness for use of
the product.
If the quality of design does not reflect the customer's requirements, the product which the
producer offers him would not probably satisfy the customer, even if it does sufficiently
conform to the design. Quality of design is usually indicated by completeness and correctness
of specifications, drawings, catalogues, etc. and is measured with fitness for use.

Quality of conformance(meaning of conformance Conformity is the act of

matching attitudes, beliefs, and behaviors to group norms. [1] Norms are
implicit, unsaid rules shared by a group of individuals, that guide their
interactions with others and among society or social group)
Quality of conformance is the level of the quality of product actually produced and
delivered through the production or service process of the organization as per the
specifications or design. When the quality of a product entirely conforms to the specification
(design), the quality of conformance is deemed excellent.
Specifications are targets and tolerances determined by the designer of a product. Targets are
the ideal values for which production is expected to strive; tolerances are acceptable
deviations from these ideal values recognizing that it is difficult to meet the exact targets all
the time due to variability in material, machine, men and process.
For example, if an engineering component manufacturer specifies the diameter of a steel pin
as 2.525 + 0.005 mm, the value 2.525 is the target value and + 0.005 is the tolerance. In a
similar way, in case of an Airline service, if on time arrival of a flight is specified as within
15 minutes of scheduled time, the target is scheduled time and tolerance is + 15 minutes.
The measure most commonly used for expressing the quality of conformance is fraction
defective. A fraction of defect of 0 % implies that the quality of a product wholly conforms
to the quality of design. Even if the quality of a design is very good and quality of
conformance is poor, the product cannot give the intended service and is classified as poor
quality product.
For example, in case of a service product like maintenance of law and order by governmental
agencies, the quality of design is reflected in the relevant acts and rules, whereas quality of
conformance depends upon the extent to which these acts and rules are complied by the
enforcement agencies. In spite of having excellent rules and regulations, the quality of law
and order of society cannot be rated as good, if these rules and regulations are not adhered to
properly.
Fitness for use (quality of design) and conformance to specification (quality of conformance)
provide the fundamental basis for managing the processes to produce quality products. Good
quality can be attained only when both, quality of design and quality of conformance are
good.

Design function should provide for the translation of customers' needs from the product brief
into technical specifications of products, materials, processes and services.
This should result in a product that provides customer satisfaction at an acceptable price that
enables a satisfactory return on investment for the organization and takes care of other
stakeholders' needs.
The product design and specification should be such that the product (including service) is
easily productable, verifiable and controllable under the proposed production, operational and
capable of being installed.
For translating the customer needs following aspects should be taken into consideration:

Quality requirements of Product

The marketing function should find out and provide the quality requirements for the product
and should;

Determine the need for a product or service.

Accurately define the market demand and sector with details of grade, quantity, price
and time estimate of the product and service.

Accurately determine the customer requirements by review of contract or market

needs.

Communicate all customer requirements to production planning/design functions of

the company.

Product Brief
Product brief is formal statement or outline of the product requirements. It should be prepared
by the marketing function and provided to design function.
Product brief translates customer requirements and expectations to a preliminary set of
specifications as the basis for subsequent design work. Product brief should include:
Performance characteristics (environment and usage conditions, reliability, etc.);

Sensory characteristics such as style , color , taste, smell, etc.;

Installation configuration;

Applicable standards and statutory regulations;

Packaging requirements;

Quality assurance and verification.

10. QUALITY
The word quality is often used indiscriminately for many different meanings. Quality can be defined
as fitness for use, customer satisfaction, doing things right the first time, or zero defects.
These definitions are acceptable because quality can refer to degrees of excellence. Websters
dictionary defines quality as an inherent characteristic, property or attribute. Quality Review will
define quality as a characteristic of a product or process that can be measured. Quality control is the
science of keeping these characteristics or qualities within certain bounds.
In a manufacturing or service environment, there are two major categories of quality: quality of
design and quality of conformance. A poorly designed product will not function properly regardless of
how well it meets its specifications. Conversely, a product that does not conform to excellent design
specifications will not properly perform its intended function.
1 Design Quality
Design quality refers to the level of characteristics that the designers specify for a product. Highgrade materials, tight tolerances, special features and high performance are characteristics associated
with the term, high quality product.
An example of design quality may be shown by the comparison between an expensive automobile and
an economy model. A Ferrari and a Ford Escort are compared. Both cars will perform the same basic
function of getting from point A to point B. Each will generally conform to its design specification.
The owners in both cases may be satisfied with the way their cars are put together. However, that is
where the similarity ends. The Escort owner does not expect his car to go 150 mph, have leather seats
and have twelve coats of paint, or be highly responsive. The Ferrari owner expects these
characteristics or qualities.
The cost of making a product will usually rise as more characteristics are specified to increase
product performance, improve comfort, improve ease of use and make the product look better. Highgrade materials usually command a premium price. However, in many cases, increased competition
creates an atmosphere of finding ways to make better and less expensive designs. This is true for
products such as computers, VCRs and televisions.
The reliability of a product must be considered in the design stage. Reliability is the probability that a
product will perform its intended function, without failure, for a specified length of time. Reliability is
dependent on the basic design, the quality of materials and the quality of components that go into the
final product. To achieve the required reliability, designers may need to specify higher priced
components. This may translate to higher prices but also higher value for the consumer.
Many products command a premium price because they provide value to the consumer. Others may
be expensive because of their role as status symbols. Expensive products do not always contribute to
better product performance or customer satisfaction. This is particularly true in the software industry.
Many low priced applications work just as well and sometimes better than expensive ones.
The designer may receive input from various sources when determining the level of design quality. In
addition to the designers own ideas, input concerning product performance, materials to be used and
various product characteristics may be received from management, marketing, sales, other
engineering organizations or directly from customers. The final design specification may or may not
be what the designer had in mind.
Although some quality engineers and other quality professionals get involved with product design,
their time and effort is usually spent in designing and maintaining systems to measure and control
process and product characteristics after the design is complete. A challenge to quality engineers is to

implement the statistical techniques used in manufacturing during the design stage. The goals would
be to enhance product design by eliminating problems early in the design process to ensure the ease of
manufacturing.

11. Conformance Quality

After the level of design quality has been determined, the product characteristics are formed into
drawings and specifications. The manufacturing engineers will use the drawings and specifications to
develop manufacturing specifications and design the operations necessary to produce the product.
This includes the floor layout, machinery, test sets, tools and other equipment. A plan for the number
of employees required may also be included. The quality engineer works with the manufacturing
engineer to make the quality system and maintenance of conformance quality an integral part of the
manufacturing process. Any product checks, process checks or quality improvement activities should
be an inherent part of the process. Conformance quality may be defined as the degree of adherence of
the product characteristics to the design drawings and specifications. The objective of a quality
program is to have a system that will measure and control the degree of product and process
conformance in the most economical way.
The quality engineer will determine what product or process characteristics are to be checked. The
quality engineer will also determine the type of data to be collected, the corrective actions
required, and the statistical tools or other techniques to be used.
WE MUST ENSURE THERE IS CONFORMANCE AND THIS HAS TO BE MET
IMPROVED TECHNIQUES
12. QUALITY SYSTEMS

A quality system is a mechanism that coordinates and maintains the activities needed to
ensure that the characteristics of products, processes or services are within certain bounds. A
quality system involves every part of an organization that directly or indirectly affects these
activities. Typically, the quality system is documented in a quality manual and in the
associated documents that specify procedures and standards.
3.1 Basic Elements in a Quality System
There are three basic elements in a quality system: Quality Management, Quality Control, and
Quality Assurance.
Quality Management: Quality management is the means of implementing and carrying out
quality policy. They perform goal planning and manage quality control and quality assurance
activities. Quality management is responsible for seeing that all quality goals and objectives are
implemented and that corrective actions have been achieved. They periodically review the quality
system to ensure effectiveness and to identify and review any deficiencies.
Quality Control: The term quality control describes a variety of activities. It encompasses
all techniques and activities of an organization that continuously monitor and improve the
conformance of products, processes or services to specifications. Quality control may also include
the review of processes and specifications and make recommendations for their improvement.
Quality control aims to eliminate causes of unsatisfactory performance by identifying and helping
to eliminate or at least narrow the sources of variation. Quality control has the same meaning as
variation control of product characteristics.
The objective of a quality control program is to define a system in which products meet design

requirements and checks and feedback for corrective actions and process improvements. Quality
control activities should also include the selecting and rating of suppliers to ensure that purchased
products meet quality requirements.
Quality Assurance: The term quality assurance describes all the planned and systematic actions
necessary to assure that a product or service will satisfy the specified requirements. Usually this takes
the form of an independent final inspection. The distinction between quality control and quality
assurance is stated in an ANSI/ASQ standard: Quality control has to do with making quality what it
should be, and quality assurance has to do with making sure quality is what it should be. The quality
assurance function should represent the customer and be independent of the quality control function,
which is an integral part of the manufacturing operation.

Typical process of quality assurance includes :

1. Test of previous articles
2. Plan to improve
3. Design to include improvements and requirements
4. Manufacture with improvement
5. Review new items and improvement
6. Test of new item

Procurement process
The ultimate goal of procurement planning is coordinated and integrated action
to fulfil a need for goods, services or works in a timely manner and at a
reasonable cost. Early and accurate planning is essential to avoid last minute,
emergency or ill-planned procurement, which is contrary to open, efficient and
effective and consequently transparent procurement. In addition, most
potential savings in the procurement process are achieved by improvements in
the planning stages . Even in situations where planning is difficult such as
emergencies , proactive measures can be taken to ensure contingency planning
and be better prepared to address upcoming procurement requests.

Supplier evaluation
Assessment of existing or new suppliers on the basis of their delivery, prices,
production capacity, quality of management, technical capabilities, and service.

Supplier evaluation is not an easy process. Many different formulas and techniques can be
used. One effective method assigns suppliers to four basic categories based upon their level
of performance in key areas, such as delivery, quality and responsiveness.
A supplier is labeled a "full partner" if it meets all expectations. An "associate partner" is a
firm that needs a little work to bring it up to full partner status.
Additional categories include "high risk" and "incapable" suppliers. A high risk source might
continue to be utilized for current production only, based upon an internal risk assessment.
But, you might not want to award this supplier any future business. An incapable supplier
should be dropped as soon as possible.

Quality Management Plan

. A key output of an organizations quality planning process is the QualityManagement Plan(QMP).
The QMP, which is in turn a component of the overall Program Management Plan (PMP), describes
how the program management team will implement the performing organizations quality policy
. The Quality Management Plan must address how the program intends to implement quality control,
quality assurance, and continuousprocess improvement. The other outputs of the quality planning
process are: Quality Metrics; a Quality Checklist(s); a Process Improvement Plan; aQuality Baseline,
and updates to the Program Management Plan.

PROCESS
A process is a unique combination of tools, materials, methods, and people
engaged in producing a measurable output; for example a manufacturing line for
machine parts. All processes have inherent statistical variability which can be
evaluated by statistical methods.

The Process Capability is a measurable property of a process to the specification, expressed

as a process capability index (e.g., Cpk or Cpm) or as a process performance index (e.g., Ppk or
Ppm). The output of this measurement is usually illustrated by a histogram and calculations
that predict how many parts will be produced out of specification (OOS).

MEASURE THE PROCESS

The input of a process usually has at least one or more measurable characteristics that are
used to specify outputs. These can be analyzed statistically; where the output data shows a
normal distribution the process can be described by the process mean (average) and the
standard deviation.

A process needs to be established with appropriate process controls in place. A control chart
analysis is used to determine whether the process is "in statistical control". If the process is
not in statistical control then capability has no meaning. Therefore the process capability
involves only common cause variation and not special cause variation.
Definitions

Process------: Process refers to any system of causes; any combination of conditions which worktogether
to produce a given result.

Process Capability ----Process capability refers to the normal behaviour of a process when operating in a state of
statistical control. It refers to the inherent ability of a process to produce similar parts for a
sustained period of time under a given set of conditions.

Process Capability Indices----Process capability can be expressed as percent nonconformingor in terms of the natural
spread related to the specification spread.

PROCESS CAPABILITY FLOW DIAGRAM

PROCESS CAPABILITY ANALYSIS

Introduction Process capability is an important concept for industrial managers to
understand. The challenge in todays competitive markets is to be on the leading edge of
producing high quality products at minimum costs. This cannot be done without a systematic
approach and this approach is contained within what has been called statistical quality
control or industrial statistics. The segment of statistical quality control (SQC) discussed
here is the process capability study. So why is process capability so important? Because it

allows one to quantify how well a process can produce acceptable product. As a result, a
manager or engineer can prioritize
needed process improvements and identify those processes that do not need immediate
process improvements. Process capability studies indicate if a process is capable of
producing virtually all conforming product. If the process is capable, then statistical process
controls can be used to monitor the process and conventional acceptance efforts can be
reduced or eliminated entirely. This not only yields great cost savings in eliminating nonvalue added inspections but also eliminates scrap, rework and increases customer
satisfaction. The benefits of performing process capability studies are certainly worth the
effort in the long run. After a process capability study has been performed, a process will be
classified as either capable or incapable. When the process is not capable of producing
virtually all conforming product, the process is said to be incapable and acceptance sampling
procedures (or 100%inspection) must remain part of the process.

Example of process capability system

Six sigma (statistical representation of six sigma describes how
process is performing it is used in many organizations simply
means a measure of quality that strives for near perfection).

An example of quality management system which defines a full

quality management system.

PROCESS CONTROL
Process control is a statistics and engineering discipline that deals with
architectures, mechanisms and algorithms for maintaining the output of a
specific process within a desired range.
Process control is the management of inputs to ensure a uniform output, no matter how many
times a process is repeated. This can involve everything from water purification procedures to
landing space shuttles safely and successfully. In process control, principles of statistics and

engineering are applied to a process to ensure regularity and repeatability. Automated systems are
capable of exerting process control and can be programmed for various advanced functions.
Technicians very clearly define an outcome in process control, such as a finished product or a
successful aircraft landing. This process may require batches; only one aircraft lands at once,
for example. It can also be continuous in nature. At an ice cream manufacturing facility, for
example, the facility can keep pumping out ice cream continuously, and does not need to take
a break between batches.
Awareness of an outcome allows the company to put measures in place to control the process,
and to ensure that the outcome will be reliable. The ice cream manufacturer needs controlled
temperatures for food safety and quality reasons, for example. It also needs ingredients,
personnel to operate the equipment, and supplies ready to package the ice cream for sale. All
of these become components of process control.

Fig: Process control Diagram

Figure 2 - Process Based Quality Management

System Model

Statistical process control (SPC) is a method of quality control

which uses statistical methods. SPC is applied in order to monitor and control a
process. Monitoring and controlling the process ensures that it operates at its full
potential. At its full potential, the process can make as much conforming product
as possible with a minimum (if not an elimination) of waste (rework or trash).
SPC can be applied to any process where the "conforming product" (product
meeting specifications) output can be measured. Key tools used in SPC include
control charts; a focus on continuous improvement; and the design of
experiments.

Statistical process control (SPC) is the application of statistical techniques to

determine whether the output of a process conforms to the product or service design. SPC is
implemented via. control charts that are used to monitor the output of the process and
indicate the presence of problems requiring further action.
Characteristics of Control Charts

A control chart is a time-ordered diagram to monitor a quality characteristic, consisting of : A nominal value, or center line The average of several past samples
Two control limits used to judge whether action is require; an upper control limit (UCL)
and a lower control limit (LCL)
Data points, each consisting of the average measurement calculated from a sample taken
from the process, ordered over time. By Central Limit Theorem, regardless of the distribution
of the underlying individual measurements, the distribution of the sample means will follow a

normal distribution .The control limits are set based on the sampling distribution of the
quality measurement.
Steps Involved In Using Statistical Process Control

Proper Statistical Process Control starts with planning and data collection. Statistical
analysis on the wrong or incorrect data is rubbish, the analysis must be appropriate
for the data collected. Be sure to PLAN, then constantly re-evaluate your situation to
make sure the plan is correct. The key to any process improvement program is the
PDSA cycle described by Walter Shewart. Plan Identify the problem and the possible
causes. The QC tools described in this manual
can help organizations identify problems and possible causes, and to prioritize
corrective actions.
Do Make changes designed to correct or improve the situation.
Study the effect of these changes on the situation. This is where control charts are
used they show the effects of changes on a process over time. Evaluate the results
and then replicate the change or abandon it and try something different.
Act If the result is successful, standardize the changes and then work on further
improvements or the next prioritized problem. If the outcome is not yet successful,
look for other ways to change the process or identify different causes for the
problem. Control charting is one of a number of steps involved in Statistical Process
Control. The steps include discovery, analysis,clarification, and then charting. Before
using Statistics QC software, appropriate data must be collected for analysis. Then,
you need to begin again and do it over and over and over. Remember, quality is a
CYCLE of continuous improvement.
1.PLAN
2.DO
3.STUDY
4.ACT

QUALITY AUDIT --Quality audit is the process of systematic examination of a quality system carried out by an internal or external
quality auditor or an audit team. It is an important part of organization's quality management system and is a key
element in the ISO quality system standard, ISO 9001.
Quality audits are typically performed at predefined time intervals and ensure that the institution has clearly
defined internal system monitoring procedures linked to effective action. This can help determine if the
organization complies with the defined quality system processes and can involve procedural or results-based
assessment criteria.
OBJECTIVE OF INTERNAL QUALITY AUDIT SYSTEM

The system of Internal Quality Audits must ensure that:

the Quality System of Company complies with all clauses of the ISO 9001
standard and applicable contractual/legal requirements;

the Quality System is understood and used through all levels of the
organization;

the Quality System is functioning efficiently and has the ability to achieve
defined quality objectives;

it can identify potential problems and resolutions to ensure a more effective

quality management system is operative.

QC DEPARTMENT director arranges yearly internal quality audit plans .Audit is

carried out as internal quality audit control procedure.
The audit time,audit department and audit programmes are carried out
according to the yearly audit plan
Corrective actions should indicate corrective contents ,finish date and person
incharge , and quality control department is responsible for making sure that the
corrective actions have been implemented
Auditors should record audit data and have the responsible department rectified
the deviation
What is a Guarantee?
A guarantee is a promise by a person (the guarantor) to settle a debt or fulfil the
promise of someone else. The person to whom the promise is made is called the
creditor or lender and the person on whose behalf of the promise is made is
called the principal debtor or borrower. Guarantees often state that the
obligation of the guarantor is equivalent to the borrowers obligations. In such a
case the lender may call on the guarantor to pay the debt in full without
requiring payment from the borrower, without exhausting all of their remedies
against the borrower, or without exercising any rights under any securities given
by the borrower.

Various terms of guarantee

1.
2.
3.
4.

Period of validity
Liability of manufacturer
Procedure of submitting guarantee claims
Condition which makes the guarantee invald

What Is Vendor Rating?

Vendor rating refers to the result of a formal vendor evaluation system. Vendors are given a
standing, status, or a title according to their attainment of a performance level, like quality,
delivery, lead time, price, or some combination of variables.

IMPORTANT POINTS OF THE CHAPTER

1. Quality is the conformance to requirement or specification. Quality control

denotes all those activities which are directed for maintaining and improving the
product.

2. Quality implies different level of expectations for different group of customers.

3. Capacity verification is useful for exercising control of over the quality of purchase
product
4. Process control is refers to the control of one or more system parameters,such as
temperature,flow rate or position
5. Quality process is the process of systematic examination of a quality system
carried out by an internal or external quality auditor or an audit team
6. Process capability is in some sense a measure of the uniformity of a quality
characterstics of interest.it is an index of uniformity of the output.

IMPORTANT FOR EXAMS

Deming's Fourteen Points for Management:
1. Create constancy of purpose for improvement of product and services
2. Adopt the new philosophy
3. Cease dependence on mass inspection
4. End the practice of awarding business on price tag alone
5. Constantly and forever improve the systems of production and services
6. Institute modern methods of training on the job
7. Institute modern methods of supervision and leadership
8. Drive out fear
9. Break down barriers between departments
10. Eliminate numerical goals for the work force
11. Eliminate work standards and numerical quotas
12. Remove barriers to pride of workmanship
13. Institute a vigorous programme of education and training for everyone
14 Create a structure in top management that will push every day on the above
13 points.

Unit 2
Definition of quality management:

The act of overseeing all activities and

tasks needed to maintain a desired level of excellence. This includes creating
and implementing quality planning and assurance, as well as quality control and
quality improvement. It is also referred to as total quality management (TQM).
Quality is considered as the most powerful factor to capture retain and enlarge
customer base in modern business scenario.

Need of quality management for a organization like

industries and railway systems :
Planning and achieving higher level of quality is fundamental to the successful
operation of enterprises ,which necessitates understanding
And managing various dynamics in an organization in order to set goals and judiciously
deploy resources .the efficiency and effectiveness with which resources are utilized will
depend upon good management practices that an organization must follow

Definition of organization:
Definition
A social unit of people that is structured and managed to meet a need
or to pursue collective goals. All organizations have a management
structure that determines relationships between the different activities
and the members, and subdivides and assigns roles, responsibilities,
and authority to carry out different tasks. Organizations are open
systems--they affect and are affected by their environment.

Example of an organisational structure

Definition of nature

of organization : A social unit of people ,

systematically structured and managed to meet a need or to pursue

collective goals on continuing basis. All organization have a
Management structure that determines relationship between functions ,
positions and subdivided delegates roles ,responsibilities and authority
to carry out defined task.

TYPES OF ORGANIZATIONAL STRUCTURES :

1.
2.
3.
4.

bureaucratic structures
Functional structures
Divisional structures
Matrix structures

Divisional structures

Bureaucratic structure

Design of an organization
Depends on 1. Hierarchical systems 2. Design process 3. Organization
design decisions

Hierarchical systems:
A human-built system with complex behaviour is often organized as a hierarchy.
For example a command hierarchy has among its notable features the
organizational chart of superiors, subordinates, and lines of organizational
communication. Hierarchical control systems are organized similarly to divide the
decision making responsibility.

Organization design decision:

Given the many choices of structures , how do you go about making organization
design decision for your business. Different organization structures have different
Benefits in different situations
1. Strategy: the organization design must support your strategy.
2. Size: The design must take into account the size of your organization.
3. Environment: If the market environment you work in is unpredictable or
volatile ,then the organization needs to be fixable enough to react this.
4. Controls: What level of control is right in your business .Some activities need
special controls such as (patient services in hospitals ,money handling in banks
and maintenance in air transport.
5. Incentives: incentives and rewards must be aligned with the business strategy
and purpose .

QUALITY FUNCTION :
It is a method to transform user demands into design quality, to deploy the
functions forming quality, and to deploy methods for achieving the design quality
into subsystems and component parts, and ultimately to specific elements of the
manufacturing process. DIVIDED INTO TWO DISTINCT GROUPS

1. Quality engineering : elements of quality engineering

(a)Advice to the management on the quality policy of the company and laying down realistic
quality objective
(b)The analysis of the customers quality requirements and the formulation of
design specifications.
(c) The review and evaluation of product design with a view to improve quality
and reduced quality cost
(d)Defining quality standards and preparation of product specification
(e) Analysis of quality cost
(f) Quality audit of the company
(g) Conducting process capability studies

Different quality functions

Quality control:
It is concerned with the interpretation and implementation of quality plans. It
comprises of in process and postproduction testing which are aimed at ensuring
the quality conformance of products.
Main elements of quality control:

Assistance in establishing quality control at various points of

manufacturing process
Maintenance and calibration of process control equipment
Investigation of defects and assistance in solving quality problems during
production.
Implementation of quality control measures for incoming material and
stores.
Running a test laboratory for carrying out necessary test and analysis
Feedback of defect data and customer complaints to the quality
engineering section.

Fig: EXAMPLE OF DESIGNING OF QUALITY IMPROVEMENT

Fig: another example of designing a organization to achieve quality

management .
Organization for different type products and company :
For the fitting purpose to get easier we discuss few quality organizations:

Single product line at one location (medium sized company)

Multiproduct company at one location (medium sized company)

Single product, multiplant situation

Small scale cottage industry

Large divisionalised corporation with different product divisions.

Product line : A product line refers to a number of products that are related
and developed by the same manufacturer. Product lines are not to be confused
with product bundling, which combines various items into one type of product.
Items within a product line generally share the same basic theme, and with the
help of a successful marketing plan these products can be entirely effective.

Fig: Single product multiplant situation

Fig: single product line at the one location

Fig: multi product company at one location

Fig: small cottage industry

Quality of cost and quality of conformance
A product that meets or exceeds its design specifications and is free of detects that means its
appearance or degrade its performance is said to have high quality of conformance. Note that if
an economy car is free of defects, it can have a quality of conformance that is just as high as
defect-free luxury car. The purchasers of economy cars cannot expect their cars to be as
opuieuth. as luxury cars, but they can and do expect lobe free of defects.
Preventing, detecting and dealing with defects cause costs that are called quality costs or
costs of quality. The use of the term "quality cost" is confusing to some people. It does hot
refer to costs such as using a higher grade leather to make a wallet or using 14K gold
instead of gold plating in jewelry. Instead the term quality cost refers to all of the costs
that are incurred to prevent defects or that result from defects in products.

Quality costs can be broken down into four broad groups. These four groups are also
termed as four (4) types of quality costs. Two of these groups are known as prevention
costs and appraisal costs. These are incurred in an effort to keep defective products from
falling into the hands of customers. The other two groups of costs are known as internal
failure costs and external failure costs. Internal and external failure costs are incurred
because defects are produced despite efforts to prevent them
Four types of quality cost are briefly explained below :-

Prevention Costs: Generally the most effective way to manage quality costs is to avoid
the defects in the first place. It is much less costly to prevent a problem from ever happening
than it is toad and correct the problem after it has occurred. Prevention costs support
activities whose purpose is to reduce the number of defects. Companies emplo y many
techniques to prevent defects for example statistical process control, quality engineering.
training, and a variety of tools from quality TQM .Prevention costs include activities relating
to statistical process control.
PARTS OF PREVENTION COSTS
1. SYSTEMS DEVELOPMENT
2. Qualtiy engineering
3. Quality training
4. Quality circles
5. Statistical process control
6. Supervision of prevention activities
7. Quality data gathering analysis

INTERNAL FALIURE COST:

1.
2.
3.
4.
5.

NET COST OF SCRAP

NET COST OF SPOILAGE
REWORK LABOUR AND OVER HEAD
REINSPECTION REWORKED PRODUCTS
RETESTING OF REWORK

APPRAISAL COST:
1. Test and inspection of incoming materials
2. Test and inspection of inprocess goods
3. Final product testing
4. Supply used in testing and inspection
5. Supervision of testing and inspection activities
EXTERNAL FAILURE COST

1. COST OF FIELD SERVISING AND HANDLING COMPLAINTS

2. WARRANTEE REPAIRS AND REPLACEMENT
3. PRODUCT RECALLS

Fig: motivation for workers few factors in workers motivation and retention.

HOUSE OF QUALITY:
Every successful company has always used data and information to help in its
planning processes. In planning a new product, engineers have always
examined the manufacturing and performance history of the current product.
They look at field test data, comparing their product to that of their
competitor's product. They examine any customer satisfaction information that

might happen Lobe available. Unfortunately, much of this

information is often incomplete. It is frequently examined as individual data, without
comparison to other data that may support or contradict it. By contrast quality function
deployment uses a matrix format to capture a number of issues that are vital to the planning
process .The house of quality matrix is the most recognized and widely used method. It
translates customer requirements, based on marketing research and benchmarking data,
into an appropriate number of engineering targets to be met by a new product design.
Basically, it is the nerve center and the engine that drives the entire QFD process.
According to Hauser and Clausing It is "a kind of conceptual map that provides the
means for inter-functional planning and communication." There are many different forms
of the House of Quality, but its ability to be adapted to the requirements of a particular
problem make it a very strong and reliable system to use. Its general format is made up
of six major components. These include customer requirements. technical requirements. a
planning matrix, an interrelationship matrix, a technical correlation matrix, and a
technical priorities/benchmarks and targets sections.
Every successful company has always used data and information to help in its planning
processes. In planning a new product, engineers have always examined the manufacturing
and performance history of the current product. They look at field test data, comparing their
product to that of their competitors product. They examine any customer satisfaction
information that might happen to be available. Unfortunately, much of this information is
often incomplete. It is frequently examined as individual data, without
comparison to other data that may support or contradict it.

Fig: DIAGRAM FOR HOUSE OF QUALITY

By contrast, Quality Function Deployment (QFD) uses a matrix format to capture a number
of issues that are vital to the planning process. The House of Quality Matrix is the most
recognized and widely used form of this method. It translates customer requirements, based
on marketing research and benchmarking data, into an appropriate number of engineering
targets to be met by a new product design. Basically, it is the nerve center and the engine that
drives the entire QFD process. According to Hauser and Clausing, It is a kind of conceptual
map that provides the means for interfunctional planning and communication.
There are many different forms of the House of Quality, but its ability to be adapted to the
requirements of a
particular problem make it a very strong and reliable system to use. Its general format is
made up of six
major components. These include customer requirements, technical requirements, a planning
matrix, an
interrelationship matrix, a technical correlation matrix, and a technical priorities/benchmarks
and target section.
PLANNING MATRIX
INTERRELATIONSHIP MATRIX
TECHNICAL CORRELATION MATRIX

ALL THE MENTION COMPONENTS DEFINE THE DESIGN TARGETS AND

BENCHMARKS FOR HOUSE OF QUALITY.

Unit -3
What is a control chart?
A control chart is a statistical tool used to distinguish between variation in a process
resulting from common causes and variation resulting from special causes. It
presents a graphic display of process stability or instability over time.
One goal of using a control chart is to achieve and maintain process stability.
Process stability is defined as state in which
A process head displayed a certain degree of consistence in the past and is
expected to continue to do so in the future

This consistencies is characterized by a stream of data falling with in control

limits based on plus or minus 3 standard devations (3 sigma of the centre line ).

Why use control charts?

1.
2.
3.
4.

Monitor process variation overtime

Differentiate between special cause and common cause variation
Assess effectiveness of changes
Communicate process performance

BENEFITS OF CONTROL CHARTS

1.
2.
3.
4.

Help you recognize and understand variability and how to control it

Identify special causes variation and changes in performance
Assist in the diagnosis of process problem
Determine if process improvement effects are having the desired affects.

Unit-5
WHAT IS ISO 9000?
ISO 9000 describes fundamentals of quality management systems and specifies
the terminology for quality management systems.
INTRODUCTION:
Two of the most important objectives in the revision of the ISO 9000 series of
standards have been a) to develop a simplified set of standards that will be
equally applicable to small as well as
medium and large organizations, and b) for the amount and detail of
documentation required to be more relevant to the desired results of the
organizations process activities.
ISO 9001:2008 Quality management systems Requirements has achieved these
objectives, and the purpose of this additional guidance is to explain the intent of
the new standard with specific regard to documentation. ISO 9001:2008 allows
an organization flexibility in the way it chooses to document its quality
management system (QMS). This enables each individual organization to develop
the minimum amount of documentation needed in order to demonstrate the
effective planning, operation and control of its processes and the implementation
and continual improvement of the effectiveness of its QMS.

Fig: ISO 9000 PROCESS APPROACH DIAGRAM

THE 14 ESSENTIAL STEPS ARE TO BE FOLLOWED THROUGH IN ORDER TO

IMPLEMENT ISO 9000 QUALITY MANAGEMENT SYSTEM SUCCESSFULLY
ARE:1. TOP MANAGEMENT COMMITMENT
2. ESTABLISH IMPLEMENTATION TEAM
3. START ISO900O AWARENESS PROGRAMM
4. PROVIDE TRAINING
5. CONDUCT INITIAL STATUS SURVEY
6. CREATE A DOCUMENT IMPLEMENTATION PLAN
7. DEVELOPE MANAGEMENT SYSTEM DOCUMENTATION
8. DOCUMENT CONTROL
9. IMPLEMENTATION
10. INTERNAL QUALITY EDIT
11. MANAGEMENT REVIEW
12. PRE-ASSESMENT AUDIT
13. CERTIFICATION AND REGISTRATION
14. CONTINUAL IMPROVEMENT

REASON FOR THE GLOBAL ADOPTION OF ISO 9001:

The global adoption of ISO 9001 may be attributable to a number of factors. A

number of major purchasers require their suppliers to hold ISO 9001 certification. In
addition to several stakeholders' benefits, a number of studies have identified
significant financial benefits for organizations certified to ISO 9001, with a 2011
survey from the British Assessment Bureau showing 44% of their certified clients had
won new business.[11] Corbett et al. showed that certified organizations achieved
superior return on assets[12] compared to otherwise similar organizations without
certification.[13] Heras et al. found similarly superior performance[14] and demonstrated
that this was statistically significant and not a function of organization size. [15] Naveha
and Marcus claimed that implementing ISO 9001 led to superior operational
performance in the US motor carrier industry.[16] Sharma identified similar
improvements in operating performance and linked this to superior financial
performance.[17] Chow-Chua et al. showed better overall financial performance was
achieved for companies in Denmark.[18] Rajan and Tamimi (2003) showed that ISO
9001 certification resulted in superior stock market performance and suggested that
shareholders were richly rewarded for the investment in an ISO 9001 system.
Summary of ISO 9001:2008 in informal language

The quality policy is a formal statement from management, closely linked to

the business and marketing plan and to customer needs.

The quality policy is understood and followed at all levels and by all
employees. Each employee works towards measurable objectives.

The business makes decisions about the quality system based on recorded
data.

The quality system is regularly audited and evaluated for conformance and
effectiveness.

Records show how and where raw materials and products were processed to
allow products and problems to be traced to the source.

The business determines customer requirements.

The business has created systems for communicating with customers about
product information, inquiries, contracts, orders, feedback, and complaints.

When developing new products, the business plans the stages of

development, with appropriate testing at each stage. It tests and documents
whether the product meets design requirements, regulatory requirements, and
user needs.

The business regularly reviews performance through internal audits and

meetings. The business determines whether the quality system is working and
what improvements can be made. It has a documented procedure for internal
audits.

The business deals with past problems and potential problems. It keeps
records of these activities and the resulting decisions, and monitors their
effectiveness.

The business has documented procedures for dealing with actual and
potential nonconformances (problems involving suppliers, customers, or
internal problems).

The business:
1.

makes sure no one uses a bad product,

2.

determines what to do with a bad product,

3.

deals with the root cause of problems, and

4.

keeps records to use as a tool to improve the system.

1994 version
ISO 9000:1994 emphasized quality assurance via preventive actions, instead of just checking final product, and
continued to require evidence of compliance with documented procedures. As with the first edition, the down-side
was that companies tended to implement its requirements by creating shelf-loads of procedure manuals, and
becoming burdened with an ISO bureaucracy. In some companies, adapting and improving processes could
actually be impeded by the quality system.

2000 version
ISO 9001:2000 replaced all three former standards of 1994 issue, ISO 9001, ISO 9002 and ISO 9003. Design
and development procedures were required only if a company does in fact engage in the creation of new
products. The 2000 version sought to make a radical change in thinking by actually placing the concept
of process management front and center ("Process management" was the monitoring and optimisation of a
company's tasks and activities, instead of just inspection of the final product). The 2000 version also demanded
involvement by upper executives in order to integrate quality into the business system and avoid delegation of
quality functions to junior administrators. Another goal was to improve effectiveness via process performance
metrics: numerical measurement of the effectiveness of tasks and activities. Expectations of continual process
improvement and tracking customer satisfaction were made explicit.

2008 version
ISO 9001:2008 basically renarrates ISO 9001:2000. The 2008 version only introduced clarifications to the
existing requirements of ISO 9001:2000 and some changes intended to improve consistency with ISO
14001:2004. There were no new requirements. For example, in ISO 9001:2008, a quality management system
being upgraded just needs to be checked to see if it is following the clarifications introduced in the amended
version.
ISO 9001 is supplemented directly by two other standards of the family:

ISO 9000:2005 "Quality management systems. Fundamentals and vocabulary"

ISO 9004:2009 "Managing for the sustained success of an organization. A quality management
approach"

Other standards, like ISO 19011 and the ISO 10000 series, may also be used for specific parts of the quality
system.

Certification
ISO does not certify organizations itself. Numerous certification bodies exist, which audit organizations and, upon
success, issue ISO 9001 compliance certificates. Although commonly referred to as 'ISO 9000' certification, the
actual standard to which an organization's quality management system can be certified is ISO 9001:2008. Many
countries have formed accreditation bodies to authorize ("accredit") the certification bodies. Both the
accreditation bodies and the certification bodies charge fees for their services. The various accreditation bodies
have mutual agreements with each other to ensure that certificates issued by one of the Accredited Certification
Bodies (CB) are accepted worldwide. Certification bodies themselves operate under another quality standard,
ISO/IEC 17021,[28] while accreditation bodies operate under ISO/IEC 17011.
An organization applying for ISO 9001 certification is audited based on an extensive sample of its sites,
functions, products, services and processes. The auditor presents a list of problems (defined as
"nonconformities", "observations" or "opportunities for improvement") to management. If there are no major
nonconformities, the certification body will issue a certificate. Where major nonconformities are identified, the
organization will present an improvement plan to the certification body (e.g. corrective action reports showing
how the problems will be resolved); once the certification body is satisfied that the organisation has carried out
sufficient corrective action, it will issue a certificate. The certificate is limited by a certain scope (e.g. production of
golf balls) and will display the addresses to which the certificate refers.

ISO 9000 IS BASED UPON EIGHT QUALITY MANAGEMENT PRINCIPLES :

Principle 1 Customer focus

Principle 2 Leadership
Principle 3 Involvement of people
Principle 4 Process approach
Principle 5 System approach to management
Principle 6 Continual improvement
Principle 7 Factual approach to decision making
Principle 8 Mutually beneficial supplier
Relationships
THE TAGUCHI METHOD:
Taguchi methods are statistical methods developed by Genichi Taguchi to improve the quality of manufactured
goods, and more recently also applied to engineering,[1] biotechnology,[2][3]marketing and advertising.
[4]
Professional statisticians have welcomed the goals and improvements brought about by Taguchi methods,
particularly by Taguchi's development of designs for studying variation, but have criticized the inefficiency of
some of Taguchi's proposals.[5]
Taguchi's work includes three principle contributions to statistics:

A specific loss function see Taguchi loss function;

The philosophy of off-line quality control; and

Innovations in the design of experiments.

THE MAIN OBJECTIVE OF TAGHUCHU PHILOSPHY:

Taguchi's main objectives are to improve process and product

design through the identification of controllable factors and their
settings, which minimise the variation of a product around a
target response. By setting factors to their optimal levels, a
product can be manufactured more robust to changes in
operation and environmental conditions. Taguchi removes the bad
effect of the cause rather than the cause of a bad effect, thus
obtaining a higher quality product.

Taguchi Design of Experiments

Many factors/inputs/variables must be taken into consideration when making a

product especially a brand new one
The Taguchi method is a structured approach for determining the best
combination of inputs to produce a product or service
Based on a Design of Experiments (DOE) methodology for determining
parameter levels
DOE is an important tool for designing processes and products
A method for quantitatively identifying the right inputs and parameter
levels for making a high quality product or service
Taguchi approaches design from a robust design perspective

Taguchi loss function

Taguchi Loss Function is graphical depiction of loss developed by the Japanese
business statistician Genichi Taguchi to describe a phenomenon affecting the value
of products produced by a company. Praised by Dr. W. Edwards Deming (the
business guru of the 1980s American quality movement),[1] it made clear the concept
that quality does not suddenly plummet when, for instance, a machinist exceeds a
rigid blueprint tolerance. Instead "loss" in value progressively increases as variation
increases from the intended condition. This was considered a breakthrough in
describing quality, and helped fuel the continuous improvement movement that since
has become known as lean manufacturing.

DIAGRAM TGHUCHI LOSS FUNCTION GRAPH

Five major points of the Taguchi quality philosophy are :In a competitive market environment, continual quality improvements and cost reductions
are necessary for business survival.
An important measurement of the quality of a manufactured product is the total loss
generated by that product to the society.
Change the pre-production experimental procedure from varying one factor at a time to
varying many factors simultaneously (SDE) , so that quality can be built into the product and
the process.
The customer's loss due to poor quality is approximately proportional to the square of the
deviation of the performance characteristic from its target or nominal value. Taguchi changes
the objectives of the experiments and the definition of quality from "achieving conformance
to specifications" to "achieving the target and minimising the variability.

A product (or service) performance variation can be reduced by examining the non-linear
effects of factors (parameters) on the performance characteristics. Any deviation from a
target leads to poor quality.

JUST IN TIME (JIT)