Introduction to Quality Management

Product quality as perceived by the customers

determines sales.

Initial launch
-- Media campaigns can create demand
Repeat and sustained sales
-- on basis of quality
Quality:
Conformance to Specification --- Philip B Crosby
Fitness for use --- J M Juran
Predictable degree of uniformity and dependability at
low cost and suited to market --- W Edward Deming
Degree of excellence at an acceptable price and
control of variability at an acceptable cost --- Broth
Totality of features and characteristics of product/
service that has ability to satisfy stated and implied
needs of customer --- ISO 8402 vocabulary
Quality creates customer satisfaction by its features
and freedom from deficiency.
Features: Defect: quality
Performance characteristics that does not
Reliability meet specification
Durability
Specification: Set of
Ease of use requirements/ conditions of
Serviceability specific application
Esthetics
Standards: Set of
Flexibility
requirements/ conditions of
Reputation
broad/ general application

Product free from defect

Sales, billing free from error
EVOLUTION OF QUALITY MANAGEMENT
Quality in traditional sense (Small q)
Output should conform to specifications
It should pass the test of quality inspectors.
Emphasis on strict inspection of end products
Reject faulty products.
More rejection means more wastage.
This is not the solution to quality problems
What is the solution?
Solution is elimination of rejection
Continuous improvement.

Total Quality (Big Q) focuses not only on the output but

also on the inputs, the processes and environment
 nternal
I

Environment
Raw Material

I
N
Machines PROCESS OUTPUT
P
U
T
S
Human
Resource
External
Environment
 TQM advocates:
If Inputs, Processes & Environment are good
then Output will be good.
(This is common sense)

Implications
Why spend costs & effort
for detecting rejections, scraps and rework
Spend on Improvement Get Quality .
So inspection may become redundant
TQM advocates
Continuous improvement
-- to keep pace changes in external
environment and market conditions
Quality is now accepted as
important stated objective of organisations
Quality Management has evolved over last 60 years

Inspection Quality Control Statistical Quality Control

Total Quality Control Quality

Assurance

TOTAL QUALITY MANAGEMENT

& SIX SIGMA
Inspection: Involves sorting the products
i.e. conforming from the non-conforming products.
Quality Control (QC): Involves inspection but includes
monitoring of processes to identify and eliminate poor quality
at the source. It is based on following stages.

No manufacture without measurement.

No measurement without records.

No records without analysis.

No analysis without feedback and corrective action

 Statistical Quality Control:
Application of statistics to Quality Control
Uses statistics to measure conformance
of Raw Materials, Processes, & Products
to previously laid down specifications.

QC for Raw Materials and Products

is done by Acceptance Sampling.
Process control is done by Control Charts
Quality Assurance (QA):
Quality Control
+ documentation, process analysis and administration
to assure quality
Emphasis on procedures as per set standards
Total Quality Control (TQC):
QA + continuous improvement
This concept is referred to as
Company Wide Quality Control (CWQC) in Japan.

Quality as everyones responsibility

i.e. every employee & even vendors
TQC involves SQC of functional areas
(planning, design, production, service, marketing,
finance, administration etc)
 Total Quality Management (TQM):
Company Wide Quality Assurance
using System Approach
Involves documented sets of procedures
& continuous improvement in every activity
Scope of QM has broadened & called TQM

Quality Management
is aspect management function that
determines and implements quality policy ---
ISO
It responsibility of the top management (ISO8402:
1986)

Quality Management that considers

all aspects of organization
and includes all members of organisations
 Pioneers of Quality
Management
(Quality
Guru)
Edward W Deming
Joseph M Juran
Philip B Crosby
A V Feigenbaum
K Ishikawa
Dr. Deming W Edwards
An American quality expert invited to Japan
Pioneered Quality movement in Japan
Japanese industries recognised Deming
Instituted Deming Prize for Quality in 1951 .
 Demings approach to Quality
Variations ----Assignable causes
----Random (un-assignable) causes
Assignable cause ------Sort out by Control
------Remove by Improvement
(redesign/ change the system)
PDCA Cycle for Improvement
(Plan-Do-Check-Act)
Plans a Check Act
Do it
change Result (Standardize
)
Most problems are due to top management
Worker handicapped by the system

Demings 14 Points for Quality

1.Learn the new philosophy, top management and everybody.
2.Understand the purpose of inspection, for improvement of processes and reduction of
costs.
3.End the practice of awarding business on the basis of price tag alone.
4.Improve constantly and forever the system of production and service.
5.Institute training
6.Teach and institute leadership
7.Drive out fear. Create trust. Create a climate for innovation.
8.Formulate and publish a statement of the aims and purpose of the organisation. The
management must consistently demonstrate their commitment to the statement.
9.Optimise towards the aims and purpose of the company, the efforts of teams, groups,
and staff areas.
10.Eliminate exhortations of the work force.
11.a. Eliminate numerical quotas for production. Instead learn and institute methods for
improvement.
b. Eliminate Management by Objective ( MBO ). Instead learn the capabilities of
processes and how to improve them.
12. Remove barriers that rob people of pride of workmanship.
13. Encourage education and self-improvement for everyone.
14. Take action to accomplish the transformation.
 Dr. Joseph M. Juran
Authored ten books and number of papers
-- Quality Planning and Analysis (co-authored with F. M.
Gryna),
-- Managerial Breakthrough
-- The Quality Control Handbook

Quality Triology ---- Quality control,

---- Quality improvement
---- Quality planning

TWO types of problems ---- Sporadic problem

---- Chronic problem

COST of Quality: Failure, Appraisal, Prevention

Philip B Crosby
Head of Quality in ITT Corporation
Started Zero Defect program
Book Quality is Free

Factory within Factory

About 20% of all resources are involved in reworking.
Do it right the first time and everytime

Quality comes from prevention

Inspection only segregates conforming and non-conforming products.
Errors can be prevented by understanding the process
-- identifying causes & eliminate them
According to Crosby,
--- 25% cost is cost of inspection, cost of scrap and rework
Crosby emphasised on
changing organisational culture and attitude to quality
 Paradigm Shift in Management Concepts
From To
Quality Productivity Trade-off Quality Productivity go hand in hand

If it's not broken, don't fix it Continuous Improvement

Development Innovation

Rigid Org. Structure Flexible Organizational Structure

Tall hierarchical Structure Flat Structure

Competition Co-operation

Control Empowerment

Education for Management Education for all