Management of Quality

Management of Quality An Overview (to be

delivered as a roadmap and no details):
A)Quality System (Introduction, Quality in Production
and Service Systems, Economics of Quality);
B)Technical System (Quality in Product and Process
Design)
C)Management Systems (QM Philosophies, Role of
the Customer; TQM, Quality Assurance Planning,
Organising, Controlling, Quality Improvement and
Problem Solving, Employee Involvement and
Participative Management)
D)International Quality Standards
 Management of Quality
(A) Quality System (Introduction, Quality in Production and
Service Systems, Economics of Quality);

1) Introduction to Quality: Understanding Quality; Historical

Evolution of Quality; Garvins 5 Approaches to, and 8
dimensions of quality (for Manufacturing and Service);
Importance of Quality;

2) Quality Differences in Production and Service Systems;

Quality and Productivity;

3) Economics of Quality Quality related to Price and Market

Share; Cost of Quality; Quality and Profitability; The Taguchi
Loss Function view of Quality
 Management of Quality

B) Technical System (Quality in Product and Process

Design)

4) Quality in Product and Process Design Quality

Issues in Design (Cost, Manufacturability,
Disassembly, Product Liability), Designing Tolerance;
Quality Improvement approaches Value Analysis,
Value Engineering, Concurrent Engineering
 Management of Quality
C) Management Systems (QM Philosophies, Role of the
Customer; Quality Assurance Planning, Organising,
Controlling, Quality Improvement, Employee Involvement
and Participative Management)

5) Quality Gurus; Quality Management Philosophies:

Deming, Juran, Crosby, Feigenbaum; Ishikawa. The
philosophy of Total Quality and TQM

6) Role of Customer - Effect of customer dominated quality

on: Product Design, Services, Optimisation of User's Cost,
Life Cycle Costing, Customer Involvement and Feedback,
Quality Index; Complaint Indices and Redressal, Product
Liability, Customer Relations.
 Management of Quality
7) Quality Assurance Planning, Control, Review; QFD
principles; Integrating Quality Management in Strategic
Management

8) Quality Improvement: Deming Cysle, Jurans

Improvement Program; Crosby Program; Harrington
Approach; Japanese Approach of Kaizen

9) Employee Involvement (EI) and Participative Quality

Management: Importance of Employee Participation;
Foundations of EI Industrial Engineering, SQC, QC,
Self Managed Teams. Evaluating EI HR Perspective,
Quality Perspective, Cost Perspective
 Management of Quality

D) International Quality Standards

10) Reaching International Quality Standards:

Developing Quality Culture, Productivity through
People, Quality Circles, CWQC, TQM, Quality Grids,
ISO 9000.
 A - Quality System

1)Introduction to Quality:
Understanding Quality
Historical Evolution of Qualit
Garvins 5 Approaches to, and 8 dimensions of,
quality (for Manufacturing and Service);
Importance of Quality;
 UNDERSTANDING QUALITY

Degree to which a set of inherent characteristics

fulfill requirements - ISO
The totality of features and characteristics of a
product or service that bears on its ability to
satisfy stated or implied needs American
Society for Quality

Quality required in - Products, Services,

Processes, Environment & People
Quality expressed as: design, conformance,
abilities (availability, reliability and
maintainability); field service
HISTORICAL PROGRESSION
INSPECTION

QUALITY CONTROL (STATISTICAL METHODS)

QUALITY ASSURANCE

QUALITY MANAGEMENT

TOTAL QUALITY MANAGEMENT

HISTORICAL PROGRESSION DETAILS
INSPECTION: Post-facto ascertaining of quality

QUALITY CONTROL: The operational techniques

and activities that are used to fulfill the
requirements for quality

QUALITY ASSURANCE: systematic and planned

actions which are necessary to provide adequate
confidence that a product or service will satisfy the
given requirement for quality
HISTORICAL PROGRESSION DETAILS

QUALITY MANAGEMENT: systematic set of

operating procedures which is company wide,
documented, implemented and maintained while
ensuring the growth of business in a consistent
manner

TOTAL QUALITY MANAGEMENT: THE PROCESS OF

INDIVIDUAL & ORG. DEVELOPMENT THE PURPOSE OF
WHICH IS TO INCREASE THE LEVEL OF
SATISFACTION OF ALL THE STAKEHOLDERS
QM Vs QA
The Prime Focus of
Quality Management
Achieving results that satisfy the
requirements for quality.
Motivated by stakeholders internal
to the organization, especially the
organizations management
Goal is to satisfy all stakeholders
Effective, efficient, and continually Confidence in the organizations
improving, overall quality-related
performance is the intended result.
Scope covers all activities that
affect the total quality-related
business results of the
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Quality Assurance
Demonstrating that the
requirements for quality have been
(and can be) achieved.
Motivated by stakeholders,
especially customers, external to
the organization
Goal is to satisfy all customers.
products is the intended result
Scope of demonstration coves
activities that directly affect quality-
related process and product
results
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 CONTEMPORARY FOCUS

SIX SIGMA

DEMING AWARD

MALCOLM BALDRIDGE NATIONAL

QUALITY AWARD (MBNQA)
 GARVINS 5 APPROACHES TO DEFINING QUALITY

Manufacturing-based

Product-based

User-based

Value-based

Transcendent

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 GARVINS 5 APPROACHES TO DEFINING QUALITY

Manufacturing Right first time processes.

-based Conformance to specifications
and ins measured in the process

Gives rise to Product-based

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 GARVINS 5 APPROACHES TO DEFINING QUALITY

Product-based Quantifying a product attribute

length, composition, etc Precise
Measurement.

It is objective and independent

of experience
 GARVINS 5 APPROACHES TO DEFINING QUALITY

User-based In the eye of the beholder.

Fitness for intended use as
defined by customer. Seen as
customer satisfaction and
hyped as exceeding customer
expectations

Combines Product with

experience
 GARVINS 5 APPROACHES TO DEFINING QUALITY

Value-based Acceptable performance at a

given price

Quality = P/E (Performance / Expectations)

P/E = 1 meets expectations.
> 1 exceeds expectations

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 GARVINS 5 APPROACHES TO DEFINING QUALITY

Transcendent Absolute, relative superiority

universally recognizable. E.g.
Mercedes, IIMs

Based on customer experience

of the Product. Normally it is
ranking relative to other similar
products, based on average of
user experience (e.g EXIM,
Crisil, B-School Rankings)

Includes Product, User-base and

Value for Money
 GARVINS 8 DIMENSIONS OF QUALITY
Performance Products Operating Characteristics

Features Number of Bells and Whistles.

Reliability Performance over time under stated conditions

Conformance Matching physical and performance characteristics to

pre-established standards

Durability Period of use till deterioration/ replacement

Serviceability Speed of repair

Aesthetics 5 senses look, feel, sound, taste, smell

Perceived quality Subjective based on image, brand, advertising

 Garvins Eight Dimensions of Quality

Performance
basic operating characteristics of a
product; how well a car is handled or its
gas mileage
Features
extra items added to basic features,
such as a stereo CD or a leather interior
in a car
Reliability
probability that a product will operate
properly within an expected time frame;
that is, a TV will work without repair for
about seven years
Copyright
2006 John
Wiley &
Sons, Inc. 3-21
 Garvins Eight Dimensions of Quality

Conformance
degree to which a product meets pre
established standards
Durability
how long product lasts before replacement
Serviceability
ease of getting repairs, speed of repairs,
courtesy and competence of repair person

Copyright
2006 John
Wiley &
Sons, Inc. 3-22
 Garvins Eight Dimensions of Quality

Aesthetics
how a product looks, feels, sounds,
smells, or tastes
Perceptions (Perceived quality)
subjective perceptions based on
brand name, advertising, and the
like
Safety (9th, beyond Garvin)
assurance that customer will not
suffer injury or harm from a
product; an especially important
consideration for automobiles

Copyright
2006 John
Wiley &
Sons, Inc. 3-23
Garvins Eight Dimensions of SERVICE Quality

Consistency
Courtesy
Completeness
Accessibility
Accuracy
Responsiveness
Time and Timeliness
Quality of Conformance

Copyright
2006 John
Wiley &
Sons, Inc. 3-24
 Dimensions of Quality Service

Time and Timeliness

How long must a customer wait for service,
and is it completed on time?
Is an overnight package delivered overnight?
Completeness:
Is everything customer asked for provided?
Is a mail order from a catalogue company
complete when delivered?

3-25
 Dimensions of Quality Service

Courtesy:
How are customers treated by
employees?
Are catalogue phone operators nice and
are their voices pleasant?
Consistency
Is the same level of service provided to
each customer each time?
Is your newspaper delivered on time
every morning?

3-26
 Dimensions of Quality Service
Accessibility and convenience
How easy is it to obtain service?
Does a service representative answer you calls
quickly?
Accuracy
Is the service performed right every time?
Is your bank or credit card statement correct
every month?
Responsiveness
How well does the company react to unusual
situations?
How well is a telephone operator able to respond
to a customers questions?
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 Dimensions of Quality Service

Quality of Conformance
Making sure a product or service is
produced according to design
if new tires do not conform to
specifications, they wobble
if a hotel room is not clean when a guest
checks in, the hotel is not functioning
according to specifications of its design

3-28
 Exercise - Garvins Eight Dimensions

Compare Garvins 8 (9) dimensions of

quality in Products and Services

Copyright
2006 John
Wiley &
Sons, Inc. 3-29
Exercise - Garvins Aproach v Dimension (Product) Matrix

Perf Feat Relia Conf Dura Serv Aesth Perc Safet

b b Q y

Mfg
based

Produ
ct
Base
d
User
Base
d
Value
based

Trans
cende
nt
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Exercise - Garvins Aproach v Dimension (Service) Matrix

Consi Court Com Acce Accu Resp Timel Conf Safet

stent esy plete ss racy onse iness orm y

Mfg
based

Produ
ct
Base
d
User
Base
d
Value
based

Trans
cende
nt
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 Importance of Quality

Lower costs (less labor, rework, scrap)

Motivated employees
Market Share
Reputation
International competitiveness
Revenues generation increased (ultimate
goal)

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 A Quality Systems

2)
Quality Differences in Production and Service
Systems;
Quality and Productivity;
The Production System

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 Quality Differences in Production
and Service Systems;

Production Systems Areas of Quality

1) Product Development and Design (Product
based)
2) Production Process (Manufacturing based)
3) Product Use (User based)
Value based is function of the three
Transcendent is a mix of all four
 Quality Differences in Production
and Service Systems;

Service Systems Areas of Quality

1) Service Development and Design (Product
based)
2) Production Process (Manufacturing based) -
inconsequential
3) Product Use (User based Point of
Interaction) Behaviour, Customer
involvement
Value based is function of the three
Transcendent is a mix of all four. Image is
important
 Quality and Productivity;

Productivity = Output/ Input

Output is Product based and User based

Input is Manufacturing based
Value based is synonymous with higher
productivity ratio
Transcendent includes all the above
 Quality and Productivity
2) Productivity decrease the number of defects, reduce rework,
eliminate inspectors as employees responsible for quality. Two
Ways Quality Improves Profitability
Sales Gains via
Improved response
Flexible pricing
Improved reputation
Improved Increased
Quality Profits
Reduced Costs via
Increased productivity
Lower rework and scrap costs
Lower warranty costs
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 A Quality Systems

3) Economics of Quality
Quality related to Price and Market Share;
Cost of Quality;
Quality and Profitability;
The Taguchi Loss Function view of Quality
 IMPORTANCE OF QUALITY - Costs
1) Costs - Reduces costs from customer returns, warranty, and
lawsuits for faulty products, and lost sales to future customers.
Two types of Costs associated with Quality
COST OF ACHIEVING GOOD QUALITY
Prevention costs - reducing the potential for defects.
Incurred in design. Process control.
Appraisal costs - evaluating products, parts, and
services. Measuring, Testing, Analysing

FAILURE COSTS COST OF POOR QUALITY

Internal failure - producing defective parts or service
before delivery. Scrap, re-work, downtime, process
failure
External costs - defects discovered after delivery.
Warranty, complaints, recall, liability, lost sales
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Prevention Costs
Quality planning costs Training costs
costs of developing costs of developing
and implementing and putting on
quality management quality training
program
programs for
Product-design costs employees and
costs of designing management
products with quality
characteristics Information costs
Process costs costs of acquiring
costs expended to and maintaining data
make sure related to quality,
productive process and development of
conforms to quality reports on quality
specifications performance
Appraisal Costs
Inspection and testing
costs of testing and inspecting
materials, parts, and product at
various stages and at the end of a
process
Test equipment costs
costs of maintaining equipment used
in testing quality characteristics of
products
Operator costs
costs of time spent by operators to
gar data for testing product quality,
to make equipment adjustments to
maintain quality, and to stop work to
assess quality
Internal Failure Costs
Scrap costs Process downtime costs
costs of poor-quality
products that must be costs of shutting
discarded, including down productive
labor, material, and process to fix
indirect costs
problem
Rework costs
costs of fixing Price-downgrading costs
defective products to costs of discounting
conform to quality
specifications poor-quality
Process failure costs productsthat is,
costs of determining selling products as
why production seconds
process is producing
poor-quality products
External Failure Costs
Customer complaint costs Product liability costs
costs of investigating litigation costs
and satisfactorily resulting from
responding to a product liability
customer complaint and customer
resulting from a poor- injury
quality product
Lost sales costs
Product return costs
costs incurred
costs of handling and because
replacing poor-quality customers are
products returned by dissatisfied with
customer
poor quality
Warranty claims costs products and do
costs of complying not make
with product additional
warranties purchases
 Cost of Quality Matrix

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 Costs of Quality

Total Total Cost

Cost
External Failure

Internal Failure

Prevention

2011 Appraisal
Pearson
Education
, Inc. Quality Improvement
publishin
g as
Prentice
Hall
Taguchi Quality Loss Function

Shows that costs increase as the

product moves away from what
the customer wants

Costs include customer

dissatisfaction, warranty
and service, internal
scrap and repair, and costs to
society

Traditional conformance
specifications are too simplistic
6 Sigma Mindset

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Zero defect Mindset

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 QualityCost Relationship

Cost of quality
Difference between price of
nonconformance and conformance
Cost of doing things wrong
20 to 35% of revenues
Cost of doing things right
3 to 4% of revenues
Profitability
In the long run, quality is free
 IMPORTANCE OF QUALITY - Competition

3) Competition
Quality has become one of the most important
competitive points in business today (DEALT IN
DETAIL IN MOD 2)

4) Award Malcolm Baldridge

Named after a former secretary of commerce, this
prestigious award is given to firms that achieve
major quality improvements.
.

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 Malcolm Baldrige Award

Created in 1987 to stimulate growth of

quality management in the United States
Categories
Leadership
Information and analysis
Strategic planning
Human resource
Focus
Process management
Business results
Customer and market focus
Other Awards for Quality
National individual International awards
awards European Quality
Armand V. Award
Feigenbaum Medal Canadian Quality
Deming Medal Award
E. Jack Lancaster Australian Business
Medal Excellence Award
Edwards Medal Deming Prize from
Shewart Medal Japan
Ishikawa Medal
Quality Gurus

Walter Shewart
In 1920s, developed control charts
Introduced the term quality assurance

W. Edwards Deming 1950

Developed courses during World War II to
teach statistical quality-control techniques
to engineers and executives of companies
that were military suppliers
After the war, began teaching statistical
quality control to Japanese companies

Copyright
2006 John
Wiley &
Sons, Inc. 3-55
Demings 14 Points

1. Create constancy of purpose

2. Adopt philosophy of prevention
3. Cease mass inspection
4. Select a few suppliers based on quality
5. Constantly improve system and
workers
6. Institute worker training
7. Instill leadership among supervisors

3-56
Demings 14 Points
8. Eliminate fear among employees
9. Eliminate barriers between
departments
10. Eliminate slogans
11. Remove numerical quotas
12. Enhance worker pride
13. Institute vigorous training and
education programs
14. Develop commitment from top
management to implement above 13
points
3-57
Quality Gurus (cont.)

Armand V. Feigenbaum
In 1951, introduced concepts of total quality
control and continuous quality improvement

Kaoru Ishikawa - 1950

Promoted use of quality circles
Developed fishbone diagram
Emphasized importance of internal customer
Quality Gurus (cont.)

Joseph M. Juran
Followed Deming to Japan in 1954
Focused on strategic quality planning

Philip Crosby
In 1979, emphasized that costs of poor quality
far outweigh the cost of preventing poor
quality
In 1984, defined absolutes of quality
managementconformance to requirements,
prevention, and zero defects

Copyright
2006 John
Wiley &
Sons, Inc. 3-59
 Deming Wheel: PDCA Cycle

4. Act 1. Plan
Institutionalize Identify
improvement; problem and
continue develop plan
cycle. for
improvement.

3. Study/Check 2. Do
Assess plan; is it Implement
working? plan on a test
basis.

Copyright
2006 John
Wiley &
Sons, Inc. 3-60
Quality Standards

Standards are the key to effective quality

management.
They may be international, national,
organizational or project standards.
Product standards define characteristics that
all components should exhibit
Process standards define how the process
should be enacted.
Importance of standards
Encapsulation of best practice- avoids
repetition of past mistakes.
They are a framework for quality assurance
processes - they involve checking
compliance to standards.
They provide continuity - new staff can
understand the organisation by
understanding the standards that are used.
Problems with standards
They may not be seen as relevant and up-to-
date
They often involve too much bureaucratic form
filling.
If they are unsupported by software tools,
tedious manual work is often involved to
maintain the documentation associated with
the standards.
ISO 9000
An international set of standards for quality
management and documentation
Applicable to a range of organisations from
manufacturing to service industries.
ISO 9001 applicable to organisations which
design, develop and maintain products.
ISO 9001 is a generic model of the quality
process that must be instantiated for each
organisation using the standard.

(Covered again in Mod 4)

Imanagement Responsibility Mapped to ISO systems

Management responsibility Quality system

Control of non-conforming products Design control
Handling, storage, packaging and Purchasing
delivery
Purchaser-supplied products Product identification and traceability
Process control Inspection and testing
Inspection and test equipment Inspection and test status
Contract review Corrective action
Document control Quality records
Internal quality audits Training
Servicing Statistical techniques
TQM Vs ISO SYSTEM
ISO 9000 TQM
TECHNICAL SYSTEM & PHILOSPHY, CONCEPTS,
PROCEDURES FOCUSED TOOLS &TECHNIQUES
FOCUSED
EMPLOYEE EMPLOYEE INVOLVEMENT
INVOLVEMENT NOT NECESSARY
NECESSARY
DEPATMENTALLY ORGANIZATION WIDE
FOCUSED QUALITY EVERYONE RESPONSIBLE
DEPT RESPONSIBLE FOR QUALITY
PRESERVES STATUS IMPROVES CULTURE,
QUO BRINGS PROCESS
CHANGE
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Quality Management

Quality Planning

Quality Control

Quality Review

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Quality planning
A quality plan sets out the desired product
qualities and how these are assessed and
defines the most significant quality attributes.
The quality plan should define the quality
assessment process.
It should set out which organisational
standards should be applied and, where
necessary, define new standards to be used.
Quality plans
Quality plan structure
Product introduction;
Product plans;
Process descriptions;
Quality goals;
Risks and risk management.
Quality plans should be short, succinct
documents
If they are too long, no-one will read them.
Quality control
This involves checking the development
process to ensure that procedures and
standards are being followed.
They are applied more to process than
outcome
Deviations are corrected while in process
Reviews are carried out to correct the root
cause for the deviations
Quality reviews
This is the principal method of validating the
quality of a process or of a product.
A group examines part or all of a process or
system and its documentation to find
potential problems.
There are different types of review with
different objectives
Inspections for defect removal (product);
Reviews for progress assessment (product
and process);
Quality reviews (product and standards).
Review results
Comments made during the review should be
classified
No action. - no change to specifications or
processes
Refer for repair - correct an identified fault;
Reconsider overall design. The problem
identified in the review impacts other parts
of the design. Some overall judgement
must be made about solving the problem;
Integrating Quality Mgt in Strategic Mgt
Market
CSFs
Market Entry (Hygiene) and Order Winning
Segments
Garvins Dimensions
Garvins Approaches
Constructing the Value Chain
Targets
SWOT (Resource vs. Competitive)
TOWS
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