Operation Management MBA-IUnit-IV

Presented By

Mr.Vinayak Patil( B.Sc , M.B.A, DLL,DIS, M.Phil )

Quality Concept

The quality is desired characteristics present in raw material , semi finished goods and finished goods.In every manufacturing organization some standards are laid down either by producer or customers .These standards can be divided in to two categories quantitative and qualitative .Customer may pay more for higher quality therefore marketing department must be well aware of customer needs.

What exactly quality product is ?If product fits for useIf product is designed as per need of customer If the customer is satisfied with product If the product is offering best characteristics at a price range which is affordable to customer .If the product has good features in terms of appearance ,test, life ..ect

Quality InspectionQuality inspection is measure aimed at checking ,measuring and testing of product characteristics. Here we need to observe given item or product within specified standards .This task is usually performed by specialized personnel and does not fall within the responsibility of production department .

Objectives of Quality InspectionIt maintains quality of final products by comparing raw material , semi finished goods and finished with predetermined standards . It prevents further process on semi finished goods which are defective .Defective items are located and reason for such faulty products are detected .Corrective measures are taken in later stage to prevent occurrence of defects in the product .Properly planned inspection reduces chances of rejection of product by the customer.

Conti.Thus it reduces extra cost required to spend on replacement and reworking of defective products .Some defective items can be reworked to good condition by minor working .

Quality ControlQuality control (QC) is a procedure or set of procedures intended to ensure that a manufactured product adheres to a defined set of quality criteria or meets the requirements of the customers.It is a part of quality management focused on fulfilling quality requirements.It is process through which a business seeks to ensure that product quality is maintained or improved and manufacturing errors are reduced or eliminated.

Steps of quality control ProgrammeFormulate quality policyUnderstand the customers need, taste & preference Design the product according to customers needPrepare the inspection plan and quality standards Find deviation if any Correct the deviation to maintain quality standards

ContiDecide action on defective products Crate quality consciousness

Objective/Purpose of QCTo satisfy the customers by providing the required product at minimum price To increase the sales and profit of company by providing acceptable products to the in terms of price, long life ,quality etcTo recommend the corrective actions if product quality differs from standards To reduce wastages

Conti..To create quality awareness in the organizationTo suggest suitable improvement in the quality (if any)To make operator aware about quality

Quality Policy Of TATA Motors

Mahindra Gears :Quality PolicyWe, at Mahindra Gears, are committed to building and sustaining a globally competitive business by continually improving our quality management system.

ContiWe strive to maintain and achieve global quality standards, and exceed our customer expectations through:Effective utilization of our resourcesAdopting preventive methodology in our processesProviding adequate learning & growth opportunities and requisite toolsAppropriately upgrading the technologyFocusing on waste elimination and cost innovationThis shall be accomplished through complete involvement of all employees, suppliers and other stakeholders, ensuring mutually beneficial partnerships.

Hindustan Unilever :Quality PolicyMeeting quality expectations of our consumers into our products is a priority for us.Our CommitmentTo win consumers confidence and loyalty, we need to consistently deliver branded products of excellent quality.We understand the different needs of our consumers and strive to develop and deliver superior brands to ensure that theyre the preferred choice.

Conti..Minimize waste, reduce costs and drive profitability.

Quality Assurance Definition : Quality Assurance deals with assuring the desired quality ,reliability, service and other functional aspects in the manufacturing product , through scientific techniques . It deals with evaluating companys activities with respect to quality and representing the results of evaluation in all concern departments for information and subsequent action to be taken.

Stages in Quality Assurance Design Stage : Quality of design should be according to the customers needs.Manufacturing Stage : Manufactured products must confirm the design . Field Analysis : By analyzing customer complaints , corrective action must be taken.

Quality Assurance ProgramSetting proper and realistic standards Setting up reliable method of MeasurementMeasuring the actual quality Corrective action to be taken if there is any deviation from standards

Activities in Quality Assurance ProgramQuality rating of outgoing product After sales service or filed complaints analysis Quality level setting Quality audit Executive Reports on quality Inspection planning

Advantages Quality Assurance Suggest management about corrective actions ,if there is any deviation in actual manufacturing process.It reduces wastages Quality assured products helps to minimize field complaints (Reduces reworking and replacement cost & time) Quality product not only increases the sales but also creates loyal customers .And it will helpful to build good customer relationship .

Conti..Quality assurance makes inspection easy and reduces inspection rejection.The quality assurance increases productivity and efficiency .

Quality Practical ExamplesMarket leader in Mosquito coils: Good Night , All Out ,Mortein , STAR .Market leader in Ayurvedic Toothpaste: Dabur Babool ,Meswak ,VICCOMarket leader in tooth paste : Coalgate, Pepsodent, Close Up,Sensodyne ,Oral-BMarket leader in Washing Powder : Nirama, Surf excel ,RIN, Ghadi ,Tide ,Wheel, Ariel..etc

Quality circleQuality circle is a group of 8 to10 members of similar areas who come together Voluntarily to solve work related problems like quality, productivity, safety ,efficiency ,effectiveness etc. and come to solution through discussion to improve effectiveness in their functional areas.Size of quality circle is important ,ideal quality circle consist 8to 10 members.

ContiIncase case of too many participants , more than one quality circle can be formed .E.g. if there are35 production engineers who want to form quality circle , then 4 quality circles of 8-9 members can be formed Participation in QC Voluntary not forceful .Members are not forced to join the group.

Benefits of QC to OrganizationIt improves employee Employer relationship It improves moral and team spirit of employees through their participation in decision making.It improves productivityIt helps to improve quality of the product It saves managerial time

Benefits of QC to EmployeeIt gives opportunity to employees in decision making It improves moral and team spiritIt develops problem solving capacityIt creates loyalty among workers

Working of Quality Circle Formation of the circle Training the members Problem identification Problem analysis Proposed situation (Various Solutions)Management Representation Review by ManagementImplementing the solution Monitoring

Total Quality Management (TQM): Continuous Improvement TQM is a cost effective system for integrating the continuous quality improvement and efforts of people at all levels in the organization to deliver products and services which ensure customer satisfactionIt enables defect prevention leading to maximum customer satisfaction.TQM is organizational activity and it is a way to improve quality of products continuously.

Objectives of TQM system To have specific quality policy and objectivesStrong customer focusPeriodic audit of activities Comparison of performance with actual standards Quality equipment identification Integration of people ,Machine & information

Areas of TQM Pre-Production system (product &process design)Quality planning of product and processPurchasing Quality evaluation of product and processQuality information systems & Equipments Quality training and orientation After sales service quality

ISO Certification ISO is short form of International Organization for Standardization .It is worldwide federation of national standard bodies of 91 countries which include India also .

ISO figure showing quality standards

ContinueISO 8402 defines the basic and fundamental terms used in quality ISO 9000 gives the guidelines for selection an use of standard and clarifies links between various quality concepts ISO 9001 is used to ensure conformance requirement during design and development, production , Installation .

ContinueISO 2002 is used to when only inspection and test requirements .ISO 9004 is used for advance stages which contains guidelines on technical ,administrative and human factors affecting the quality of the products and services

Need of ISO SystemISO standards provide an assurance to customers that the supplier has an adequate quality management systemISO ensures consistent performance It emphasizes on documentation at every stage of production, so documentation procedure brings out system.

Benefits of ISO implementation and Certification It enhance customer satisfaction It focuses on proper maintenance of record It ensures proper house keeping It motivate employee strongly

Elements /Contents of ISO 9000 Management Responsibility Quality systemDesign controlDocument and data controlPurchasingCustomer supplied productProcess controlInspection & Testing

ContinueMeasuring & testing equipmentInspection & test status Corrective & preventive actionsHandling Storage Packaging Preservation Delivery

ContinueQuality recordsInternal quality audits TrainingService Statistical techniques

ISO 9000 Implementation StepsReading of relevant standards by top Management Preparation and announcement of quality policy and objectivesAppointment of Management Representative Selection of core group for implementationTraining of all employees

Continue ..Preparation of relevant department procedures and work instruction Selection and training of internal auditorsInternal quality audit Rectification of an NCsStabilizing systemPublication of final documented system Pre-audit by certifying agencies Rectification of an NCs

Continue ..Final auditIssue of certificate Improving system

Thank You