Quality Management Quality Introduction What is quality? Quality is important to businesses but hard to define.

e. Customers want quality that is appropriate to the price that they are prepared to pay and the level of competition in the market. Every good or service is consumed to derive some satisfaction. The objective of every businessmen is to maximise profit. Profit can be maximised by creating the greatest satisfaction in customer. Customer satisfaction is thus the ultimate goal. Every good or service has attributes like performance, reliability, appearance, commitment to delivery time etc. Every good or service has attributes like performance, reliability, appearance, commitment to delivery time etc. Quality is a measure of how closely a good or service conforms to specified standard. The attributes, variables and characteristics are various dimensions of quality. Organisations insure quality assurance as built in the good or service by policy, program, procedure are guidelines. What is the need for quality control? 1. To compare quality of goods/services 2. Maintain consistency in quality in output. 3. Increased maintenance and operating cost which create dissatisfaction. 4. To reduce rework cost in mfr. 5. To increase lifetime of the products. 6. To improve flexibility to use std. Spares. Therefore controlling quality is essential. Key aspects of quality for the customer Good design looks and style Good functionality it does the job well Reliable acceptable level of breakdowns or failure Consistency Durable lasts as long as it should Good after sales service Value for money For the firm, good design is fundamental, so that the product can be produced efficiently, reliably and at the lowest possible cost. Why is quality important? Quality helps determine a firms success Customer loyalty they return, make repeat purchases and recommend the product or service to others. Strong brand reputation for quality Retailers want to stock the product Retailers want to stock the product As the product is perceived to be better value for money, it may command a premium price and will become more price inelastic Fewer returns and replacements lead to reduced costs Attracting and retaining good staff These points can each help support the marketing function in a business. How is quality measured?
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Failure or reject rates Level of product returns Customer complaints Customer satisfaction usually measured by a survey Customer loyalty evident from repeat purchases, or renewal rates Quality is subjective. It is a matter of personal opinion What constitutes an acceptable level of quality will vary from one individual to another. Not all aspects of quality are tangible for example the degree of assurance given by a firms name or reputation can be very important even though it is hard to measure. Quality is always evolving because of things like improved technology, better materials, new manufacturing techniques and fresh competitors. No firm can afford to stand still as far as quality is concerned. Whilst controlling quality has benefits to the firm, it can also be costly to do.So it is important that the benefits outweigh the costs in the long term. Inspection is a function to interpret specifications, verify conformance to the specifications and communicate the result to those responsible to make corrections. What is inspection? Inspection involves defining standards and specifications, selection of products, verification of the product against set standards, decide the variance, decide whether such variance is acceptable or not, advise concerned of the result. Inspection 1. It is comparison with standards. 2. It is postmortem operation. After production/process, verification carried out. 4. Defective are segregated, either rectified or scrapped. 5. A phase of QC 6. Provides info. Reqd. By QC 7. Does not add value. Quality Control 1. It is a function contributing to quality of goods. 2. It establishes standards / criteria 3. Aims at investigating root cause for defects to eliminate for future production. 4. Helps reduction of insp. Cost. 5. Adds value Objective of inspection 1. Prevention of defects. 2. Detect defects in time / in process 3. Remove defective parts from further processing.
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Quality Management 4. Inform concerned. 5. Records for evaluation of m/c and man's performance. Definition for quality "degree to which a set of inherent characteristic fulfils requirements" as ISO 9000 Conformance to requirements" Philip B. Crosby. The difficulty with this is that the requirements may not fully represent what the customer wants; Crosby treats this as a separate problem. Fitness for use" (Joseph M Juran). Fitness is defined by the customer. A two-dimensional model of quality (Noriaki Kano and others). The quality has two dimensions: "must-be quality" and "attractive quality". The former is near to the "fitness for use" and the latter is what the customer would love, but has not yet thought about. "Value to some person" (Gerald M Weinberg) 6. W. Edwards Deming defines "Costs go down and productivity goes up, as improvement of quality is accomplished by better management of design, engineering, testing and by improvement of processes. Better quality at lower price has a chance to capture a market. Cutting costs without improvement of quality is futile." "The loss a product imposes on society after it is shipped" (Taguchi). Taguchi's definition of quality is based on a more comprehensive view of the production system. Definition for quality However, the American Society for Quality defines "quality" as "a subjective term for which each person has his or her own definition." Stages of inspection 1. Receiving Inspection Goods inward inspection is carried out when spares / bought out items are received at stores before taking to stock. 2. Pre-production inspection Inspection of materials prior to actual processing. First piece / first off inspection of materials, equipment tools and pilot batch. 3. First piece inspection The first part/ piece produced is inspected to verify set up, tools and equipment and dimensional accuracy. 4. Production Inspection: Inspection after every operation is completed and quality checked. 100% inspection is due to ensure no defective item passes to the next stage. (a) Patrol or Floor inspection (b) Centralised inspection. 5. Product Test: Apart from dimensional verifications, functional tests are performed physical and chemical, performance and endurance tests, destructive and non destructive tests. Role of inspection in QC As the frequency of inspection increases, cost of inspection increases and cost of undetected defects decrease.
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Quality Management There is a trade-off where the cost of total QC is minimum. It would be uneconomical where destructive test are done. 1. After operations that are most likely to produce faulty items. 2. Before costly operations start. 3. Before operations that can cover up defects taken place. 4. Before starting assembly operations that cannot be undone. 5. When finished product is ready for delivery. Cost of Quality Cost of prevention cost to prevent defective goods / services from being produced / delivered. Investment in m/cs, technology, education/trg, To reduce no. of defects, Cost to administer quality programme, Data collection / Analysis. Cost of Quality Cost of detection / Appraisal Costs associated with evaluating quality and performace of products / m/cs; inspection of equipment maintenance. Cost of failure cost of non performing and non conforming products internal and external failure costs internal repair, scrap, retest, downtime, process variability, Cost of failure external with customer cost of returned goods, law suits, loss of sales due to dissatisfaction of customer, loss by concessions. Quality Control Techniques Process capability It is the capability of the process to meet the requirements of the product it produces. Capability therefore depends upon the design tolerances associated with the product. In any production process it is impossible to produce identical products because of a variety of reasons. A range is normally specified by a set of variables like surface finish, length, diameter etc. A process designed to produce a product should consistently produce products, which fall within the defined range. Process capability may be judged by the variations recorded by the output. A manufacturing process is in statistical nature. A process will never produce any identical pieces. Hence it is possible to construct frequency distributions for variations. 2.The width of the distribution shows the process capability. A wide distribution shows, process out of control and shows it has less capability to produce consistent parts. A narrow spread suggests control tunes to be better and
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Quality Management if it is centered around the centre of variance, it is close to the best value required. 3. Centre of variance sampled The centre of variance is where most variance occurs. Variable data are continuous in nature and are measurable on a sliding scare. These data have a range of values and provide more information than attribute data. Dimensions, voltage, weight etc. Attribute data are discrete in nature and can be binary like accept / reject as in Go / No go ranges. What are tolerances? Tolerance are the upper and lower limits within which acceptable quality measurement can be expected to be if the product or process is acceptable. Tolerances are generally design specifications. Example: diameter of a rod 20.00 cm 0.05 The upper measurement is 20.05 and lower is 19.95. All pieces produced where dia. Is anywhere between 19.95 and 20.05 cm is acceptable. Process Capability is the ability of a process to function within the design parameters with respect to both its central tendency ( target value = 20.00 cm) and the inherent variable (tolerance 0.05 cm). Process capability is described by a frequency distribution of the variable under study. Sampling A process is said to be in control so long as the output measured falls within the acceptable limits or tolerance. However, variation in output is typical and could face a problem if the variation falls outside the limits. At the same time, it is impossible or prohibitively costly and time consuming to check or inspect every piece of output. It is not practical. Hence, sample of a lot is inspected or tested as the case may be. Sampling has several advantages:1. Sampling consumes less time and is less costly. 2. Testing of all output may be infeasible as in destructive test. 3. Sampling is a scientific process which may yield highly accurate results at a predictable level of confidence. However, in sampling, sample should truly represent the entire lot/population. Hence sample are randomly selected or computer generated random nos. Random Sample A random sample is one in which each element or combination of elements, in the population or lot has an equal chance of being selected. Control Charts Control charts are simple tools used in SQC to record the performance of a process. They serve two purposes.
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Quality Management 1.They reveal instantly the performance of the process at the movement of data collection. 2.They also show the overall trend of the process, which is more important. The trend shows the out of control status if any which required correction. The observations are recorded in sequence on x axis and the respective values on y axis. The central line, upper and lower control limits are drawn, as these values are known. The area within which the observed coordinates should fall is thus demarcated. Acceptance sampling. Acceptance sampling is accepting or rejecting a production lot based on the number of defects in a sample. It is assumed that the quality of items produced in a lot in same and uniform. Hence any piece of the lot is assumed to reflect the overall quality of the entire lot. Hence, a random sample is chosen and inspected. It is assumed that in choosing a piece at random, every piece in the lot has the same chance of being chosen. This process enables statistical inferences to be made about the lot as a whole. If the sample is acceptance, the lot is accepted, if not the entire lot is rejected. The acceptance sampling is based on attribute plan. It is also performed that the production will contain certain defects. The producer decides as to what percentage of defective items could be allowed as acceptable. This is crucial if the sample has an acceptable number or percentage of defective items, the lot is accepted. This is called Acceptance Sampling. Acceptance sampling is not consistent with the TQM philosophy and zero defects. While acceptance sampling allows certain free determined level of defective items, TQM aims at zero defects to be present in any passed item. AS is after production while TQM is preventive. AS is to identify a lot to throw away or rework, nor to prevent poor quality in production and in future. TQM measured defects as parts per million. Under the AS an acceptance level of 2% defect, would amount to 20,000 defective parts in a million, where as TQM aims at zero defects per million or 3 or 4 . However, AS is still a popular SQC tool in many industries before ultimately moving towards TQM. Thus, for industries AS may be initial steps TQM the destination. In AS however, what is important is how, when and what size the sampling is done. This is called the sampling plan. This provides the guidelines for accepting a lot or not. There are 1.Single Sample attribute plan 2.Average outgoing quality 3.Double and multiple sampling plans. Acceptance sampling. Acceptance Quality Level: Acceptance sampling decision is accept or reject. The crucial factor is the decision of the producer in fixing the acceptance no. of defective items in a sample and sample size.
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Quality Management If the actual no. of defective items exceed the pre determined no. of defective items, the lot is to be rejected entirely. The producer, in the process, incurs a risk. If the results of the sampling did not actually reflect the overall quality of the lot and in fact was acceptable but rejected by sampling , the producer incurs a loss of rejecting the entire lot which was otherwise acceptable. If the predetermined defective no. acceptable in a sample is c and actual is d, when d>c, the risk is rejection of a lot otherwise acceptable and when d<= c, the risk is acceptance of a lot otherwise to be rejected. Hence, the producer has to take a decision as to what should be the Acceptable Quality Level or AQL which is the acceptable proportion of defects in a lot to the customer. The AQL should reflect what the market will accept and will not result in loss of customer. The probability of rejecting a production lot that has an acceptable quality level is called the producer's risk, noted as or Type I error. Just as there is a probability of acceptable lot being rejected, there exists a chance of accepting a rejectable lot. This will reach a customer. The upper limit to the no. of defective items the customer will accept is called the Lot Tolerance percent defective LTPD. Thus, AQL and LTPD are negotiated. As there exists a possibility of rejecting an acceptable lot, the producer's risk, there exists a chance of customer accepting a lot haviing more defective then the LTPD. This called customer's risk, noted as or type II error in general, a customer would prefer to have quality <= AQL no worse than LTPD. How is the Sampling Plan Chosen. Choosing simple or double or multiple sampling plan is an economic decision. When the cost of obtaining a sample is very high compared with the inspection cost, simple sampling plan is chosen. Ex: Soil test for locating oil company. What are the dimensions of quality? From consumer's point of view:1. Performance 2. Features 3. Reliability 4. Conformance 5. Durability 6. Serviceability 7. Aesthetics 8. Safety 9. Other perceptions subjective names. What are the dimensions of quality? In a product and 1.Time and Timeliness 2.Completeness 3.Courtesy 4.Consistency 5.Accessibility and convenience 6.Accuracy 7. Responsiveness. in ease of service.
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Quality Management From producer / Service provider's point of view:Quality of conformance is making sure the product / service is producer as per design. This involves design, materials, equipment and training, supervision and control. TQM Movement: Walter Shewherrt, W.E.Denning, Joseph Jerren and Philip Crosby, A.V.Feigenbaum and / Shikauvav propagated TQM as a philosophy and movement. Shewhart developed statistical control charts and introduced the concept of Quality Assurance a commitment to quality to the organisation. Demings14 point plan W. E. Deming started teaching SQC to Japanese companies. He advocated continuous improvement of production process to achieve conformance to specifications and reduce variability. Deming advocated a 14 point charted to achieve quality:1. Create a constant purpose to product improvement to achieve custom org. goal. 2. To be internationally competitions adopt prevention of poor quality instead of AQL. 3. Eliminate the need for inspection than SQC. 4. Select suppliers who are committed to quality than price. 5. Continuously improve production process by attending to - Quality problems - the system and workers. 6. Train the worker on preventing quality problems. 7. Instill leadership among supervisors to help workers perform better. 8. Encourage employee's involvement by eliminating fear of reprisal. 9. Eliminate barriers between depts. Promote cooperation and team approach. 10. Eliminate slogans and numerical targets. 11. Eliminate numerical quota for employees. 12. Enhance worker pride and self esteem. 13. Institute commitment from top to bottom in implementing 1 to 13 above. Deming developed Deming wheel PDCA cycle.

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