17 quality management

8/8/2019 17 Quality Management

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QUALITY

MANAGEMENT



QUALITY

The totality of features and characteristics of product

/ service that bear on its ability to satisfy stated and

implied needs of the customer

Degree to which requirements are fulfilled



QUALITY

IS

TOTAL CUSTOMER SATISFACTION



QUALITY IS NOT

ABSOLUTE

QUALITY IS A

COMPARATIVE

TERM



QUALITY IS

NONSTATIC

THE PERCEPTION OF

CUSTOMERS TOWARDS

QUALITY

KEEPS ON CHANGING



TOTAL QUALITY

REFERS TO

QUALITY IN PRODUCT

· QUALITY IN PROCESS

· QUALITY IN WORK

QUALITY IN SERVICE



QUALITY CONTROL

Part of quality management focused on fulfilling

quality requirements

QUALITY ASSURANCE

Part of quality management focused on providing

confidence that quality requirements will be met



QUALITY MANAGEMENT

Coordinated activities to direct and control an

organization with respect to quality



PRINCIPLES OF QUALITY MANAGEMENT

• CUSTOMER FOCUS

· LEADERSHIP

· EMPLOYEE INVOLVEMENT

• PROCESS APPROACH

· SYSTEM APPROACH TO MANAGEMENT

· CONTINUAL IMPROVEMENT

· FACTUAL APPROACH TO DECISION MAKING

· SUPPLIER RELATIONSHIP



CUSTOMER FOCUS

Organisations depend on their customers andtherefore should understand current and future

customer needs, meet customer requirements

and strive to exceed customer expectations.



LEADERSHIP

Leaders establish unity of purpose and direction of

the organization. They create the internalenvironment in which people can become fully

involved in achieving the organization’s objectives.



EMPLOYEE INVOLVEMENT

People at all levels are the essence of an

organization and their full involvement enablestheir abilities to be used for the organization’s

benefit.



PROCESS APPROACH

A desired result is achieved more efficiently

when related resources and activities aremanaged as a process.



SYSTEM APPROACH TO MANAGEMENT

Identifying, understanding and managing a

system of interrelated processes for a given

objective contributes to the effectiveness and

efficiency of the organization



CONTINUAL IMPROVEMENT

Continual improvement is a permanent objective

of the organization.



FACTUAL APPROACH TO DECISION

MAKING

Effective decisions are based on the analysis of data and information



SUPPLIER RELATIONSHIP

Mutually beneficial relationships between theorganization and its suppliers enhance the

ability of both organizations to create value.



QUALITY COST

Internal failure costs

Costs related to defective products or services before theyare delivered to customers

External failure costs

Costs related to delivering substandard products or servicesto customers

Appraisal costs

Costs related to measuring, evaluating and auditing

materials, parts, products & services to assess conformancewith quality standards

Prevention costs

Costs related to reducing the potential for quality problems



QUALITY COST

Prevention cost Appraisal cost In-house failurecost External failurecost

Quality planning In cominginspection

Rejection Rejection

Quality audit In process

inspection

Rework Guarantee

Qualitymanagement

Final inspection Value reduction Product liability

Preventive

maintenance

Inspection & test

equipment

Repeat test Penalties

Test planning Problem

investigation

Lost goodwill

Quality system



COST OF QUALITY PROBLEM

C o s

t t o

r e

s o

l v e

When problem identified

Specs design produce install

1000x

100x

10x

x



TOOLS FOR QUALITY CONTROL

•Pareto analysis

•Control charts•Root cause analysis

•Brain storming



Pareto Analysis

80% of theproblems

may be

attributed

to 20% of

the

causes.

80% of theproblems

may be

attributed

to 20% of the

causes.Smeared

print

N

umberof

de

fect s

Off

center

Missing

label

Loose Other



Cause-and-Effect Diagram

Effect

MaterialsMethods

EquipmentPeople

Environment

Cause

Cause

Cause

Cause

Cause

CauseCause

Cause

CauseCause

Cause

Cause



Control Chart

970

980

990

1000

1010

1020

0 1 2 3 4 5 6 7 8 9 10 1112 1314 15

UCL

LCL



Continual Improvement

• Philosophy that seeks to make never-

ending improvements to the process of

converting inputs into outputs.

• Kaizen: Japanese word

for continual

improvement.



TOOLS FOR CONTINUAL IMPROVEMENT

•Quality circle

•PDCA

•Benchmarking

•Quality at source



Basic Steps in Problem Solving

• Define the problem and establish an

improvement goal

• Collect data

• Analyze the problem

• Generate potential solutions

• Choose a solution

• Implement the solution

• Monitor the solution to see if it accomplishes

the goal



The PDCA Cycle

Plan

Do

Check

Act



QUALITY CIRCLE

A voluntary group of employees from the same work

area form a group that meets periodically to analyse,

evaluate and discuss problems and devise solutions to

improve quality



Quality at the Source

• The philosophy of making each

worker responsible for the quality of

his or her work.



STANDARDS

Product process system



ISO 9000

is

a quality management system standard



ISO9000 FAMILY

ISO 9000 vocabulary

ISO 9001 requirements

ISO 9004 guidelines



ISO 9001 REQUIREMENTS

•Quality management system

•Management responsibility

•Resource management

•Product realization

•Measurement, analysis and improvement



DEMING’S PRINCIPLES

Deming compiled a famous list of 14 points, he

believed were the prescription needed to achieve

quality in an organization. His message is that the

cause of inefficiency and poor quality is the system,not the employees. Management’s responsibility is to

correct the system to achieve the desired results.



•Create constancy of purpose toward improvement of product andservice with a plan to become competitive & to stay in business

•Adopt the new philosophy. We can no longer live with commonly

accepted levels of delays, mistakes, defective materials & defective

workmanship.

•Prevent defects rather than detect defects

•Eliminate suppliers that can not qualify with statistical evidence

of quality.

•Find problems. It is management’s job to work continually on the

system.

•Institute modern methods of training on the job.

•The responsibility of foremen must be changed from sheer

numbers to quality.




•Drive out fear, so that every one may work effectively for thecompany.

•Break down barriers between departments. Encourage teamwork.

•Eliminate numerical goals, posters and slogans for the workforce,

asking for new levels of productivity without providing methods.

•Eliminate work standards that prescribe numerical quotas.

•Remove barriers that stand between the hourly worker and his right

to pride of workmanship.

•Institute a program of education and training.•Create a structure in top management that will push every day on the

above points.




JURAN views quality as fitness for use. He also believesthat roughly 80% of quality defects are management

controllable, thus , management has the responsibility to

correct this deficiency. He describes quality management in

terms of a trilogy consisting of quality planning, qualitycontrol and quality improvement. According to Juran,

quality planning is necessary to establish processes that are

capable of meeting quality standards, that quality control is

necessary in order to know when corrective action is

needed, and that quality improvement will help to find

better ways of doing things. A key element of Juran’s

philosophy is the commitment of management to continual

improvement.

JURAN’S PRINCIPLES



•Build awareness for the need and opportunity for improvement.

•Set goals for improvement

•Organize people to reach the goals.

•Provide training throughout the organization.

•Carry out projects to solve problems.

•Report progress.

•Give recognition.

•Communicate results.

•Keep score.

•Maintain momentum by making annual improvement part of the

regular systems and processes of the company.

JURAN’S PRINCIPLES



He developed the concept of zero defects, and popularized

the phrase, “ do it right the first time “. He stressed

prevention and argued against the idea that, there willalways be some level of defectives.

CROSBY’S PRINCIPLES



• Top management must demonstrate its commitment to

quality and its willingness to give support to achieve good

quality.

•Management must be persistent in efforts to achievegood quality.

• Management must spell out clearly what it wants in

terms of quality and what workers must do to achieve that.

• Make it right the first time.




The quality is free concept is that the costs of poor

quality are much greater than traditionally defined.

According to Crosby, these costs are so great that ratherthan viewing quality efforts as costs, organizations

should view them as a way to reduce costs, because the

improvements generated by quality efforts will more

than pay for themselves.




TQM

The term Total Quality Management refers to a quest for

quality that involves every one in an organization. There are

two key philosophies in this approach. One is a never endingpush to improve, which is referred to as continuous

improvement, the other is a goal of customer satisfaction,

which involves meeting or exceeding customer expectations.



•Find out what customers want. Be sure to include theinternal customers as well as the external customers

•Design a product or service that will meet or exceed what

customers want. Make it easy to use & easy to produce.

•Design a production process that facilitates doing the job

right the first time.

•Keep track of results, and use those to guide improvement

in the system. Never stop trying to improve.

•Extend these concepts to suppliers and to distribution.

TQM APPROACH



ELEMENTS OF TQM

•Continual improvement

•Competitive benchmarking

•Employee empowerment

•Team approach

•Decisions based on facts rather than opinions

•Knowledge of quality tools

•Supplier quality

17 quality management

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