EMGT303 : QUALITY MANAGEMENT IN ORGANIZATION

CHAPTER 5
QUALITY CONTROL,
QUALITY ASSURANCE,
QUALITY IMPROVEMENT
Prepared by :
Afizal Azzizan
Masni-Azian Akiah
Siti Rodhiah Abdul Aziz
Umi Kalsom Kamarul Ariffin

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OVERVIEW

quality
:: depends on the stakeholder •MANAGEMENT
wants to see improved production numbers with acceptable
quality

• UNION
wants the best conditions and highest pay for employees

• EMPLOYEES
want consistent work in safe environment

• CUSTOMER
want value for their money

:: quality in manufacturing :
[ product should work as intended with minimum number of faults & failures ]

:: quality in service :
[ customer satisfaction in the primary measure ]
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OVERVIEW
QUALITY CONTROL
:: Planned inspection /
examination of a
PRODUCT or SERVICES for
a certain minimum levels
of quality.
:: Product/service oriented.
Example :
• The manufacture of
products is according to the
outlined specifications.
• The timeline of document
processing is within the
specified timeline.
QUALITY ASSURANCE QUALITY IMPROVEMENT
:: Activity to ensure that :: Effort taken to increase
PROCESS implemented to efficiency of actions and
produce the PRODUCT or procedures with the
SERVICE satisfy customer purpose of achieving
requirement in a additional benefits for the
systematic and reliable organization and its users.
fashion consistently.
:: Process oriented
Example : Example :
• Internal audit • Kaizen
• 3rd party audit (ISO) •5S
• ICC (Innovative and
Creative Circle)
• Hari ‘Q’
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OVERVIEW
EXAMPLE : QC vs. QA vs. QI

ISO 9001
CERTIFIED

Engine
Casting
Painting

Trim Body
& Final Assembly

Kaizen / ICC /
Final
Inspection
Stamping 5S Program
INTERNAL
AUDITORS AUDIT

ORGANISATION

performance
QC
QA CUSTOMER

QI 4
QUALITY CONTROL

concept
• maintenance of standards of quality of manufactured goods
• process of making sure that products or services are made to
consistently high standards.

quality control can cover not just products, services, and processes, but also
people. Employees are an important part of any company. If a company has
employees that don’t have adequate skills or training, have trouble
understanding directions, or are misinformed, quality may be severely
diminished.

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QUALITY CONTROL

goal

• ensures that • identify • take action is

products/services products/services problem is identified
provided meet that do not meet a [QC team have the
specific company’s specified right to stop
requirements and standards of quality production
are dependable, (eliminate non- temporarily is
satisfactory and conformance) problem persist]
fiscally sound
(functioning).
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QUALITY CONTROL
implementation
INSPECTION
Involves the examination of
a product, service or
process for certain
minimum levels of quality.
Example : product
specification, process
specification
MONITORING RECORD
Routinely gather Anything (such as a
information on all aspect document) providing
of the activity permanent evidence of
information about past
Example : Statistical events.
Process Control (SPC)
Example : Employee
training record for year
2003 ~ 2009
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QUALITY CONTROL

implementation
• Traditional QC

PROBLEM
• not a value-added activity
• costly
• too late
• inspection done by the wrong
people.
• not compatible with more
modern production techniques.
• working capital is tied up in stocks
which cannot be sold
• disagreement at to what
constitutes as a “quality product”
inspection of products and services takes
place during and at the end of the
operations process
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QUALITY CONTROL

implementation
Example : Production

Inspection (denoted by symbol ) are performed at three main points in production :

PRODUCTION

Raw material Final product

 QC only is not enough.

Therefore, many businesses focused their efforts on improving quality by

implementing quality management techniques, that is by emphasizing the role of

QUALITY ASSURANCE.
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QUALITY ASSURANCE

concept
• a set of activities designed to ensure the development and
maintenance process is adequate to ensure a system will meet
its objectives.

• the process of verifying or determining whether products or

services meet or exceed customer expectations.

• a process driven approach with specific steps to help define and

attain goals.

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QUALITY ASSURANCE

goal
• “HOW SURE ARE YOU??”
:: focus on the process involves, and make sure you do the right thing.

• To ensure that the products/services meet the customer’s requirements at

the highest standard.
:: customer requirement/needs may change in time.

• Determine if the steps/process implemented to produce the product/service

are appropriate with the time and conditions.

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QUALITY ASSURANCE

implementation
• Internal audit / First party audit
:: a systematic, independent and
documented process inspection conducted
by members within the organization and
obtain evidence and evaluate it to
determine where inspection criteria are
fulfilled.
• NON-CONFORMANCE REPORT (NCR)
Issued to the audited area if non-
compliance are found.
The audited area should reply with the
correction and corrective action to close-
out the NCR.

• CERTIFICATION
• External audit / Second or Third party audit To show that the organization is complying
:: similar to internal audit, but conducted by to the quality standard.
Example : ISO 9001, ISO 14001
members not within the organization.
:: example - customers, independent
organizations / certification body.

‘Auditor’ should be able to tell if the deliverable seems acceptable based on the
process used to create it. That's why project auditors can perform a quality
assurance review on your project, even if they do not know the specifics of what
you are delivering. They don't know your project, but they know what good
processes look like. 12
QUALITY ASSURANCE

implementation
• The most popular tool used to determine quality assurance is the Shewhart Cycle
(developed by Dr. W. Edwards Deming), also known as PDCA.

Act : Apply actions Plan : Establish objectives

A P
necessary for improvement and processes required to
if the results require deliver the desired results.
changes

C D
Check : Monitor and Do : Implement the process
evaluate the implemented developed.
process by testing the
results against the
predetermined objectives

• PDCA analyzes existing conditions and methods used to provide the product or
service to customer.
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QUALITY ASSURANCE

implementation development

production
design

installation documentation

service

• QA covers all activities from design, development, production, installation, servicing

and documentation.

• This introduced the rules: “fit for purpose" and "do it right the first time".

• It includes the regulation of the quality of raw materials, assemblies, products and
components; services related to production; and management, production, and
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inspection processes.
QUALITY ASSURANCE

QC. vs QA.
• Whereas quality control emphasizes testing and
blocking the release of defective products, quality
assurance is about improving and stabilizing
production and associated processes to avoid or at
least minimize issues that led to the defects in the
first place.

• However, QA does not necessarily eliminate the need

for QC: some product parameters are so critical that
testing is still necessary just in case QA fails

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QUALITY IMPROVEMENT

concept
• Keyword : IMPROVEMENT

• The continuous study and improvement of a process, system, or organization.

• A continuous process that identifies problems, examines solutions to those

problems, and regularly monitors the solution implemented for improvement.

• Example in manufacturing / industry : reduce product failures or work related

injuries.

• Example in administration / service : increase efficiency or reducing re-work.

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QUALITY IMPROVEMENT

goal

• It is aimed at improvement - measuring where you are, and figuring out

ways to make things better. It specifically attempts to avoid blame, and to
create systems to prevent errors from happening.

• QI activities can be very helpful in improving how things work. Trying to

find where the “defect” in the system is, and figuring out new ways to do
things can be challenging and fun. It’s a great opportunity to “think
outside the box.”
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QUALITY IMPROVEMENT
implementation
• 5 crucial activities to continual improvement :
1 maintain
communication
All improvement should be planned
improvement. It is important to share
information before, during and after
attempting to make improvements.
4 document problems
and progress
A fundamental rule for any
improvement program is to document
the problems and progress.
2 correct obvious
problems 3 look upstream
Study & research of the problems are
required in order to identify the
Must look for the causes of problems
problems and to find solutions to
and not symptoms to problems.
them.
5 monitor changes
To ensure the right steps were taken
to solve quality problems, or it may
produce unintended consequences. 18
QUALITY IMPROVEMENT

implementation
:: example

KAIZEN •
•
A concept of continual improvement

Making changes for the better on a continual basis

change good
• Improvement aspect involves :

people process products

• Action is taken immediately on the shop floor without hours

of analysis. Results are evident in only days.

• Goal : to identify waste by forcing production problems to

surface so that they become visible for everyone to see.
Once identified, such problems are solved with worker
consensus. 19
QUALITY IMPROVEMENT

implementation
:: example

KAIZEN
E L E M E N T S
customer focus

teamwork

just-in-time

quality circles

automation

labor/management cooperation

total productive maintenance

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QUALITY IMPROVEMENT
implementation
:: example
Kaizen Rules
1) Spend no money
2) Add no people
3) Add no space
This is a continuous process.
As soon as one set of
problems are solved, new
problems surface which must
be overcome. By going
through this process, the
production system becomes
stronger and stronger/
TYPICAL RESULT OF KAIZEN
1) 65% reduction in work-in-process
2) 45% improvement in throughput time (lead-
time)
3) 50% reduction in manufacturing space
In business management, kaizen is now used
internationally, modified by each culture to
best suit their own business environments. A
literal translation of kaizen could be "to
become good through change".
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QUALITY IMPROVEMENT

implementation
:: example

KAIZEN
5 STEP PLAN
(also known as 5S)

1 SEIRI 2 SEITON 3 SEISO 4 SEIKETSU 5 SHITSUKE

straighten-up put things in clean up personal discipline
order cleanliness

Eliminate Specify a location Thoroughly clean Standardize best Learn correct

unnecessary for everything. the work area or practices in the practices and
items from the Put things where work place. work area. make sure you
workplace they belong. use them. 22
QUALITY IMPROVEMENT

KAIZEN PRACTISE

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QUALITY IMPROVEMENT

KAIZEN PRACTISE

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QUALITY IMPROVEMENT

KAIZEN PRACTISE

25
QUALITY IMPROVEMENT

KAIZEN PRACTISE

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QUALITY IMPROVEMENT

KAIZEN PRACTISE

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QUALITY IMPROVEMENT

implementation
An example : FADE MODEL example.
FOCUS: Define and verify the process to be
improved

ANALYZE: Collect and analyze data to

establish baselines, identify root causes and
point toward possible solutions

DEVELOP: Based on the data, develop

action plans for improvement, including
implementation, communication, and
measuring/monitoring

EXECUTE: Implement the action plans, on a

pilot basis as indicated, and

EVALUATE: Install an ongoing

measuring/monitoring (process control)
system to ensure success. 28
QUALITY IMPROVEMENT

implementation
An example : FADE MODEL example.
John is the owner of a motel.
• Using a FADE model John FOCUSED on the linens cycle of
housekeeping.
• He ANALYZED the way linens were handled and found that the
laundering process seemed to be inefficient.
• He DEVELOPED a step-by-step process for washing, drying, folding,
and storing the linens which he expected would speed up the process
and eliminate wasted effort.
• He then EXECUTED the process with his staff and will EVALUATE for
effectiveness on a weekly basis.

This is a cyclic process. Once you’ve made a change, you start all over again:
You evaluate the impact of your change
You focus down further
You analyze the problem to find the root cause(s)
Then develop methods for further improvement
And execute and evaluate again!
Repeat the process until the goal is achieved. 29
QUALITY IMPROVEMENT

implementation
Common problems during implementation of QI activity :

• Total quality activity is only regarded as a program.

• Short term result are not obtained
• Process is not driven by focus on customer connection to
strategic issues and support from senior management.
• Structural elements block change
• Goals are set too low
• Command and control organizational culture
• Training not properly addressed
• Focus more on products, but not processes
• Organization too successful and complacent (self-satisfied)
• Organization fails to address fundamental questions
• Senior management is not committed.

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QUALITY IMPROVEMENT

implementation
Management essential role in ensuring the success of QI:

• As elaborated in slide 18.

• Training, education & awareness should be an ongoing activity to

facilitate QI activity

• Encourage commitment
HOW?
..:: Establish company-wide council on quality improvement activity.
..:: Moral and physical support

• Thorough planning to ensure successful execution.

• Award and recognition (such as promotion, pay increase, and reward

system) 31
EMGT303 : QUALITY MANAGEMENT IN ORGANIZATION

summary
“Inspection with the aim of finding the
bad ones and throwing them out is too
late, ineffective, costly. Quality comes
not from inspection but from
improvement of the process."

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EMGT303 : QUALITY MANAGEMENT IN ORGANIZATION

summary
• QC, QA and QI is an important activity to ensure that the products /
services provided meets the customer expectations.
• Many tools available as a guidance to drive quality related activity.
• Quality should be viewed as a journey
• Therefore, success takes time.
• Progress of any quality activity shall be assessed / monitored and
being used as the input and basis for the next improvement activity.
• Internal best practice shall be shared as internal benchmarking.
• Poor labor management relations must be resolved
• Fear of change must be removed from the organization to ensure
success in the implementation of quality related activity.

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EMGT303 : QUALITY MANAGEMENT IN ORGANIZATION

references
Quality Management in Organization, InEd module
http://www.wisegeek.com/
http://en.wikipedia.org/wiki/Quality_control
http://en.wikipedia.org/wiki/Quality_assurance
http://en.wikipedia.org/wiki/Quality_management
http://www.unizg.hr/tempusprojects/glossary.htm
http://www.eskimo.com/~mighetto/lsbench.htm
http://membres.lycos.fr/hconline/kaizen_us.htm
http://chohmann.free.fr/

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