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A Case Study of Total Quality Management in a

Manufacturing and Construction Firm


by

Ammar Al-Saket

dissertation submitted in partial fulfilment of the requirements for the degree

Magister Ingeneriae

in

Engineering Management

in the

FACULTY OF ENGINEERING

at the

RAND AFRIKAANS UNIVERSITY

SUPERVISOR: PROF. LEON PRETORIUS


CO-SUPERVISOR: PROF. JHC PRETORIUS
January 2003
Johannesburg

TABLE OF CONTENTS

CHAPTER 1
INTRODUCTION AND PROBLEM STATEMENT
1.1 Prologue

1.2 Total Quality Management

1.3 Problem Statement and Research Objectives

1.4 The Research Approach

1.5 The Organisation of the Dissertation

1
2
4
4
4

CHAPTER 2
THE CONCEPT OF TQM
2.1 History and Evolution of TQM
2.2 The Meaning of Quality
2.3 TQM Principles

2.4 TQM System Approach


2.5 Quality Standards

2.6 Conclusion

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10
17
21
30
33

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40
41
45
51
59

CHAPTER 4
CASE STUDY OF PROCESS CONTROL
4.1 Introduction

4.2 ABC Steels Process Control Approach

4.3 Areas for Improvement in the ABC Steels Process Control Approach
4.4 Recommendations to Improve ABC Steel Process Control

4.5 Conclusion

..

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61
65
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75

CHAPTER 5
CONCLUSION AND RECOMMENDATION
5.1 Conclusion

5.2 Recommendations for Future Research

CHAPTER 3
QUALITY CONTROL
3.1 The Meaning of Quality Control
3.2 Quality Control and Quality Assurance
3.3 Quality Control System Approach
3.4 Process Control

3.5 Quality Control Tools

3.6 Conclusion

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79

BIBLIOGRAPHY

80

APPENDICES

83

ABSTRACT

Total Quality Management (TQM) is a managerial approach that views quality to be a


result of integrating all organisational activities e.g. engineering, manufacturing,
marketing and administration work. It aims broadly at maintaining and improving quality
standards and to achieve customer satisfaction. TQMs major components are quality
planning, quality control and quality improvement.

Quality control is responsible for transforming quality planning and quality improvement
outcomes into daily routine work. However, quality control can be implemented by
systematically going around the Plan, Do, Check, Act (PDCA) control cycle, with which
organisation may achieve continuous small steps of improvement.

An entire enterprise can be better controlled when it is regarded as a set of processes.


Process is controlled by the same systematic way of implementing PDCA cycle. Some
tools are suggested in this dissertation to control processes. These are statistical process
control (SPC), root cause analysis (RCA) and the Feedback Loop.

Beyond information gleaned from literature on quality control a case study of a steel
manufacturing and construction firm is also presented. Some areas for improvement in
the quality arena of this firm are identified based on the results of quality management
gained from literature.

ACRONYMS

AQL = Acceptable Quality Level


CWQC = Company-Wide Quality Control
ISO = International Organisation for Standards
MBNQP = Malcolm Baldridge National Quality Programme
NCR = Non-Conformance Report
OHSAS = Occupation Health and Safety Management Standards
PDCA = Plan Do Check Act
PPM = Part Per Million
QA = Quality Assurance
QC = Quality Control
RCA = Root Cause Analysis
SA = Situation Appraisal
SAEF = South African Excellence Foundation
SPC = Statistical Process Control
SQC = Statistical/Strategic Quality Control
TAT = Turn-around-time
TQC = Total Quality Control
TQM = Total Quality Management
ZD = Zero Defect

LIST OF TABLES

Table 2.1: Examples for Categories of Quality

11

Table 2.2: Quality Definition and Quality Factors

14

Table 1.1: The Six Steps of PDCA Cycle

23

36

Table 3.2: Elementary Statistical Methods

52

Table 2.3: Definitions of TQM

Table 3.1: Control Cycle

LIST OF DIAGRAMS

Fig. 2.1: Evolution and Development of Quality Control


Fig 2.2: A Comprehensive Approach to Quality

17

24

Fig.2.3: Road-Map for Generalised Quality Planning Process

25

Fig. 2.5: Kaizen and Kairyo Improvements

27

Fig. 2.6: An Integrated TQM Model

29

Fig. 3.1: Interrelationship of the Three Major Quality Management Activities

38

Fig. 2.4: PDCA Control Cycle

39

Fig. 3.3: Quality Control Cycles in Management Activities

40

Fig. 3.2: Stages of Major Management Activities

41

43

Fig. 3.6: Repeated Application of the PDCA Control Cycle

44

Fig. 3.7: Baldridges Steps toward a Mature Process Approach

47

48

Fig. 3.9: Data Collection (Check) Sheet for Measurable Quantities

53

Fig. 3.4: Company-wide Quality Control


Fig. 3.5: Aspects to be Controlled

Fig. 3.8: Process Context

Fig. 3.10: An Example of a Histogram

53

Fig. 3.11: The Pareto Diagram

54

Fig. 3.12: Cause and Effect Diagram

55

56

Fig. 3.13: Using Histograms to Direct Quality Control Activities

57

Fig. 3.15: A Typical Control Chart

57

58

Fig. 4.1: Integrated Management System Flowchart

61

Fig. 4.2: QA/QC Progress Flowchart

61

Fig. 4.3: Non-Conformance / Corrective Action (NCR) Report

66

Fig. 4.4: Weld Reject Rates in Percentages for 2002

68

Fig. 3.14: Scatter Diagram


Fig. 3.16: Feedback Loop

Fig. 4.5: General Flowchart Depicting the Sequence of Work Instruction

69

69

Fig 4.7: Monthly Rework Costs (Rands) for September and October 2002

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Processes of ABC Steel

Fig. 4.6: Work Instruction Inspection of Painted Steel

ACKNOWLEDGEMENTS

The idea of writing on the subject of Total Quality Management started from an indirect
suggestion when Prof. L Pretorius proposed to a group of students a number of topics one
of which is now the title of this dissertation which he encouraged me to write.

Several people have made invaluable contributions towards this dissertation. Firstly, I
would like to thank Prof. L Pretorius for the leadership, hints and insightful notes he has
provided which have gone a long way in shaping the dissertation in the manner it is. My
thanks and appreciation also goes to Prof. JH Pretorius for the invaluable comments and
suggestions he offered.

The quality manager for ABC Steel Engineering Company (the case study) facilitated this
research to give it a practical flavour by investing his time, support and full access to the
companys literature for which I am very grateful.

DECLARATION

I hereby declare that all the research work, except wherever it has been appropriately
acknowledged by relevant references, is my own work.

DEDICATION

To my wife Leenah who strove to ensure a suitable environment for me to write this
research. Thank you Leenah for your prayer and support.

Introduction and
CHAPTER 1
Problem Statement

1.1 Prologue

t Ford Motor Company, in 1974, Paul Hartman reported that more than 80 percent
of the automobiles had to go to a rework facility immediately after the assembly
line (Jablonski, 1994:11). Deming (1994:22) mentions that 23 percent of the cost

of running a hospital in the US goes towards administration against a comparable 5 percent in


other places. These two and many other examples urge questions like: how are we doing our
business? What is the right approach of doing business? And how can we achieve a quality
product?

Deming is well-known in his contribution to the Japanese quality movement. He reports


(1994:57) that in 1950, he was invited to deliver lectures about quality management in Japan.
Japan, he claims, has been turned around through his presentations to top management and
engineers on system of production. They had great knowledge but what has ignited Japan is
the change in the managerial approach, which has resulted in the production of quality
products.

The word quality is rather an attractive term for both organisations and customers. It became
like a slogan that forms new international business trends at all levels.

Many organisations claim having a quality programme in some way or another. On the other
hand, libraries and electronic information retrieval systems are flooded with literature on the
subject. The above-mentioned observations may be due to the following reasons:

Todays business environment, which is characterised by rapid advances in technology,


global competition and rising customer expectations. (Wolking, 1996:1)

The term quality itself maybe subjective i.e. having different meanings to different
people under varying circumstances (Ceronio, 1996:15), which implies having different
approaches in order to achieve quality.

Todays business environment and the nature of the term quality itself imply that the quality
concept is an ever-changing one, hence, continuous attention must be paid in order to catch
up with the ever-changing quality standards to control moving targets in an internationally
competitive market. (Feigenbaum, 1983:7)

1.2 Total Quality Management


Total Quality Management is a managerial approach aiming at achieving quality in a broad
sense. Todays environment urges Total Quality Management (TQM) to be a managerial
approach and style so as to achieve customer satisfaction and global competitiveness. TQM is
based on the following principles: quality integration, quality first, customer satisfaction,
continuous improvement, prevention rather than inspection, factual-based decision and
workforce involvement.

Quality management aims at conducting the inherent managerial elements of planning,


control and improvement (Juran, 1992:14) based on the total quality principles. The expected
results of TQM are better organisation performance, increased productivity, more effective
and efficient processes and more competitive products. However, the ultimate results of
implementing TQM are achieving customer satisfaction and global competitiveness. For
these outcomes to be achieved, management is required to invest in a quality programme by
training people, establishing new infrastructure, delegating managerial duties to others and
the implementation of quality concepts broadly, throughout the organisation, whereas
planning, process and products are included as well as suppliers, employees and customers
are considered in the whole quality programme. In the current research the focus is on TQM
principles in broad terms and quality control in particular.

Quality Control
Quality control is a managerial activity of evaluating and implementing the outcomes of
quality planning and quality improvement programmes. Several approaches may be followed
to conduct quality control. Juran (1989:145) suggests a three-step approach to quality control
namely: evaluating actual performance; comparing actual performance to goal, and taking
action on the difference.

To evaluate the performance, information is needed and all stakeholders should participate in
getting the information. Customers too can efficiently give information regarding
product/service performance. However the workforce often gives information that adequately
reflects operation process quality. Management can measure the performance relevant to their
level as well.

Another approach to quality control is known as the Plan, Do, Check, Act Cycle. This
approach considers planning for quality control as part of quality control stage. Ishikawa
(1985:59) breaks down PDCA cycle into six steps presented in Table 1.1.

Determination of Goals and Targets

Determining Methods of reaching Goals

Engaging in Education and Training

Implementing Work

Checking the Effects of Implementation

Taking Appropriate Action

Table 1.1: The Six Steps of PDCA Cycle (Ishikawa, 1985:59)

For the manufacturing field, Zairi (1991:37) advocates concepts that are mainly statisticallybased techniques for achieving, maintaining and improving on quality control of products and
services. These concepts are based on typically the following stages:

Measuring with manufacturing,

Recording of measurement.

Analysing the records,

using the analysis for feedback and corrective action.

In summary, the concept of control includes all activities and arrangements which empower
the organisation to be able to achieve their objectives effectively and economically.

1.3 Problem Statement and Research Objectives


This research aims at presenting aspects of TQM and generally how it can be integrated into
the organisation. Other matters related to quality such as quality standards will be briefly
presented as well. More attention will be given to quality control, its essence, where it fits in
within the whole TQM framework and what its mechanisms are. A case study of ABC Steel
Engineering Company (ABC Steel) is employed to present and examine practicalities of a
managerial process control system. Suggestions and broadly formulated recommendations on
how to improve the process control are also given.

1.4 The Research Approach


The nature of the study is a descriptive one. Therefore, an exploration is done in order to
describe the concepts and mechanism of TQM and quality control. More attention is given to
identifying the meanings of concepts under discussion, and that, in turn, forms a well-defined
basis for evaluation of other related aspects afterwards. This implies that the research work is
mainly based on widely accepted pioneering TQM ideas and established quality standards. A
discussion on the process control system of the case study based on ABC Steels managerial
approach based on the firms literature is presented. A case study on process control is
examined against the theoretical outcomes of quality process control.

1.5 The Organisation of the Dissertation


This chapter has highlighted some concepts of TQM as well as the objectives and approach
of this research. The rest of the research is organised in the following manner: Chapter 2

discusses TQM, its principles and system approach. In addition, it traces the historical
development of the quality concept as well as quality standards.

Chapter 3 expands on the concept of quality control and where it fits in the TQM framework.
A more detailed discussion is presented on examination of the process as an essential part of
quality control covering issues such as the nature of the process, characteristics of and how
the process is controlled. Some tools used in quality control are briefly presented before
concluding the chapter.
Chapter 4 presents the ABC Steels managerial process control case study by evaluating it
using the tools and framework presented in Chapter 3. Recommendations for improving the
companys control process are accordingly given.

The research concludes in chapter five with a summary and recommendations on the work
presented in chapters preceding it.

CHAPTER 2

The Concept of
TQM

2.1 History and Evolution of TQM

uality control as it is known today did not exist in the eighteenth and nineteenth
century. However some quality control activities would be performed informally by
individuals at workshop level (Garvin, 1988:3). The development and evolution of

Quality Control started during and spanned the entire twentieth century (Feigenbaum,
1983:15). In 1913, JC Penney became one of the earliest people who presented the
fundamentals of Total Quality Management philosophy when he suggested concepts such as
customer satisfaction, fairness, quality, value, associate training, and rewards for
performance to be managerial bases for the business (Jablonski, 1994:29-30). Furthermore,
Fredrick W. Taylor who is known as the father of scientific management presented other
quality concepts in the early 1900s as well (Garvin, 1988:5).

Anyone tracing the development of TQM throughout the twentieth century, may easily notice
the gap between TQM development as a theory in literature as opposed to TQM development
in practice and implementation particularly in the USA notwithstanding that is where it
originated (Kinlaw, 1992:viii). For example, it took more than fifty years for Walter A.
Shewharts (a physicist with Bell Telephone Laboratories, the birth place of the American
quality), teachings in the book The Economic Control of Quality of Manufactured Product
published in 1931 to be recognised and implemented in the USA (Kinlaw, 1992:vii).
Nevertheless, the development of the approach to quality control in the USA went through

four broad stages: operator quality control, inspection quality control, statistical quality
control and total quality control (see Fig. 2.1 adapted from Feigenbaum, (1983:16) below).
Evolution and
Development

TQM
USA
Quality Assurance
USA
TQM
Japan
Statistical
QC
Inspection
QC
Operator
QC

1900

1920

1940

1960

1980

Years

Fig. 2.1: Evolution and Development of Quality Control [Feigenbaum, (1983:16), Adapted]
2.1.1 Operator Quality Control
Up to 1900 when goods were produced in small volumes, quality control activities were
performed by artisans and skilled craftsmen (Garvin, 1988:3). That period of time in the
quality control movement is termed the Operator Quality Control Era (Feigenbaum,
1983:15). Some features of this era were that quality control was performed mainly in the
product-manufacturing field and was not a responsibility assigned to an independent person.
However, the operator performed quality control as part of his job.

When one goes back, however, to the early 1800s, a breakthrough in this field may be
acknowledged when a rational gauging system was put in place. Under the set up, a model of
a product is kept from use as it serves as a standard for measuring the degree of conformity of
subsequent output (Garvin, 1988:4). Another innovative idea in the field of quality was the
1819 proposal of introducing the inspection concept to control product quality, though not
formally adopted and recognised immediately.

2.1.2 Inspection Quality Control


Inspection quality control may be the first directly linked concept to TQM that ever was
formally introduced. In the early 1900s Fredrick W Taylor gave this concept more acceptance
by singling it out as a task for bosses to manage their businesses effectively (Garvin, 1988:5).
Enhancing Taylors idea in 1922, G.S. Radford published the book The Control of Quality in
Manufacturing in which he clearly stated the direct link between inspection activity and
quality control. All these efforts have pushed inspection concept to become formally linked to
quality control and to be part of management where as it is performed on an independent
basis, to the extent that by 1924, for example, a department for inspection engineering was
established at Western Electric (Garvin, 1988:6). However, products during this stage was
not yet produced in huge volumes, therefore, 100% inspection i.e. inspection for all units of
production was conceivable (Feigenbaum, 1983:16).

2.1.3 Statistical Quality Control


A statistical theory was originated over 80 years ago by Sir Ronald Fisher. (Jablonski,
1994:29). Shewhard pioneered a breakthrough of statistical quality control (SQC) through his
publication in 1931 based on statistical principles (Garvin, 1988:6). He realised in a single
volume that in any work process there would be natural variation such that limits should be
specified to distinguish acceptable product fluctuating within these two limits (Kinlaw,
1992:vii). Then, Shewhard was working within a team at Bell Telephone Laboratories at
Western Electric, where they had a programme for nationwide telephone network
standardisation and uniformity, the challenge they faced was how to extract big amounts of
information regarding units quality from a section of inspection data. Consequently, some
statistical techniques such as sampling, control charts and using prediction and probability
rules were adopted and developed (Garvin, 1988:8).

Another challenge that prompted the use of SQC was the mass production that was required
for World War II (Feigenbaum, 1983:15) when the ordnance department of the USA Army
faced a problem of getting large quantities of arms from different suppliers at an acceptable
level of quality (Garvin, 1988:9). Another contributor to this field was E.W. Deming. He
added to Shewhards work and developed his own version of SQC. All in all, by the late
1940s, inspection that was based on statistical techniques had become the primary method of
control quality (Garvin, 1988:12)

2.1.4 Total Quality Control


The concept of TQC grew rather slowly in the USA (Kinlaw, 1992:vii) although many TQC
aspects were developed in the USA in the 1950s. Quality was implemented in the American
and European industries only in the 1980s (Kinlaw, 1992:viii). The reason for this according
to Feigenbaums opinion was that prior to that, there was no willingness or the ability of
business and governmental organisations to take adequate steps concerning the findings of
technical and statistical work (Feigenbaum, 1983:16). He continues by saying that the
quality problem could not be handled by existing decision making structures. In other words,
quality control still was seen as a duty for inspection group or statistical quality control
coordinator at the shop-floor level. However, this level of the decision-making structures
could not comprehend the quality problem broadly and this excluded the involvement of the
management system and the administration work in the quality problem.

On the other hand, Japanese quality before the 1940s was limited to inspection quality. Even
the SQC approach was limited to a small group of experts (Garvin, 1988:179). However, the
post-war era saw dramatic progress in the Japanese quality, and that happened over a
relatively very short period of time. (Kinlaw, 1992:vii). In fact, quality control was
introduced to Japanese by some American experts (Garvin, 1988:180)

The most well known expert who contributed to Japanese quality is W. Edward Deming
(Garvin, 1988:180). He was invited to Japan in 1950 to deliver a series of lectures on SQC
(and the system of production) to the leaders of Japan industry (Deming, 1994:57). Other
experts such as Joseph M. Juran followed Demings footsteps in 1954 and presented seminars
on the system of total quality management in organisations (Garvin, 1988:182-3). Their
contributions influenced the Japanese dramatically (Deming, 1994:57). Basically, the 1950s
became a watershed era in the Japanese transformation from copier to quality leaders.
(Jablonski, 1994:29).

The Japanese realised the special need for an own approach to quality. In this regard, they
initiated an effort in 1956. In 1962 the Japanese had innovated the concept of quality control
circle. (Ishikawa, 1984:6) By 1968 they had developed their own version of TQM, and
presented it as Company Wide Quality Control (CWQC) (Ishikawa, 1985:45) and the most
prime aspects of TQM were perfected in Japan between 1950-1965 (Galgano, 1994:xiii)

Quality control progress in the USA took a different route and initially less momentum than
the Japanese one. The 1950s had seen invaluable theoretical contribution. For instance, the
publication Quality Control Handbook by J.M Juran in 1951, tackled the economics of
quality (Garvin, 1988:12). In addition, during 1956 A.V Feigenbaum proposed a
comprehensive

approach to

quality in

his

publication

Total

Quality Control

(Garvin,1988:13)

On the quality concepts implementation side, in 1961-62 Martin Company took a new step by
adopting a programme called Zero Defect (ZD) rather than the concept of Acceptable
Quality Levels (AQL) that had been proposed by the war department in the 1942. The
program ZD was based on quality principles such as: workers motivation and training, as
well as the idea of being the ZD becoming an achievable objective. (Garvin, 1988:17) In fact,
some authors termed the period of the two decades of 1950s and 1960s of quality control
movement as Quality Assurance (Garvin, 1988:18).

In the early 1980s, the Americans felt the gap between quality of their products and the
Japanese ones (Jablonski, 1994:12). They realised that quality is a crucial factor for business
success in the modern international business environment (Feigenbaum, 1983:17).
Subsequently, the TQM approach begun to be adopted in the 1980s, as part of managerial
strategies in the USA and European industries as well as in the service sector and government
(Galgano, 1994:xiv). In the late 1980s major aspects of TQM had been integrated (Jablonski,
1994:12). A later dimension added to TQM related to emerging environmental and health
issues. Today, it is noticeable that most leading companies have adopted TQM programme
(Galgano, 1994:xiv).

2.2 The Meaning of Quality


The dictionary gives a long list of the meanings of the word quality many of which are
subjective. (Peach, 1997:36) However, some of the meanings of quality as applied in the field
of management in general and manufacturing in particular are examined in this section.

David A Garvin (1988) discusses the term quality where he dedicates three chapters of his
book in an attempt to offer a comprehensive meaning for quality. He begins the third chapter
of his book with a conceptualisation of the term quality by raising questions of whether
quality can be a subjective term or an objective one; absolute or relative; and what its
10

relationship with variables such as price, cost, productivity and market share is. He then
categorises most of the definitions into five principal groups namely: the transcendent,
product-based, user-based, manufacturing-based and value-based. (Garvin, 1988:39-40)
Table 2.1 presents some examples for each one of the mentioned categories.
Group

Examples of Definitions

I. Transcendent

II. Product-based

III. User-based

IV. Manufacturing-based

V. Value-based

"Quality is neither mind nor matter, but a third entity independent of


the two ... even though Quality cannot be defined, you know what it is.
" (Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance [New
York: Bantam Books, 1974], pp. 185, 213)

" . . . a condition of excellence implying fine quality as distinct


from poor quality.... Quality is achieving or reaching for the highest
standard as against being satisfied with the sloppy or fraudulent."
(Barbara W. Tuchman, "The Decline of Quality," New York Times
Magazine, November 2, 1980, p. 38)
"Differences in quality amount to differences in the quantity of some
desired ingredient or attribute." (Lawrence Abbott, Quality and
Competition [New York: Columbia University Press, 1955, pp. 126-27)
"Quality refers to the amounts of the unpriced attributes contained in
each unit of the priced attribute." (Keith B. Leffier, "Ambiguous
Changes in Product Quality," American Economic Review, December
1982, p. 956)
"Quality consists of the capacity to satisfy wants . (Corwin D. Edwards,
"The Meaning of Quality," Quality Progress, October 1968, p. 37)
"In the final analysis of the marketplace, the quality of a product
depends on how well it fits patterns of consumer preferences." (Alfred
A. Kuelm and Ralph L. Day, "Strategy of Product Quality, "Harvard
Business Review, November-December 1962, p. 101)
"Quality is fitness for use. (J. M. Juran, ed., Quality Control Handbook,
Third Edition [New York: McGraw-Hill, 1974, p. 22)
"Quality [means] conformance to requirements. " (Philip B. Crosby,
Quality Is Free [New York: New American Library, 1979], p. 15)
"Quality is the degree to which a specific product conforms to a design
or specification." (Harold L. Gilmore, "Product Conformance Cost,"
Quality Progress, June 1974, p. 16)
"Quality is the degree of excellence at an acceptable price and the
control of variability at an acceptable cost." (Robert A. Broh, Managing
Quality for Higher Profits [New York. McGraw-Hill, 1982], p. 3)
"Quality means best for certain customer conditions. These conditions
are (a) the actual use and (b) the selling price of the product." (Armand
V. Feigenbaum, Total Quality Control [New York: McGraw-Hill,
1961], p.1)

Table 2.1: Examples for Categories of Quality (Garvin, 1988:40)


For more convenience, out of these five approaches for defining quality, an elaboration will
be made on two of them, namely: manufacturing-based and user-based definitions.

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2.2.1 Manufacturing-Based Definitions of Quality


Manufacturing-based definitions of quality look at quality from a manufacturing viewpoint,
where pre-determined requirements, design activities and manufacturing practices are the
bases of quality product and accordingly, the quality definition will be conformance to
requirement (Crosby, 1990:40)

Crosby argues that this definition offers practical meaning for quality. In addition, it
considers that zero-defect product is the only acceptable quality level since 100 percent
conformance to requirements is the only acceptable quality measure. However, it is
managements prime responsibility to create the right requirements in order to meet customer
real needs. (Crosby, 1990:40-1)
On the other, hand Juran (1992:11) finds the definition of quality to be conformance to
specifications or conformance to standards. This is a problematic definition when applied
at managerial levels as a product is meant to meet customer needs while a conformance to
specifications is just one of many means for achieving that objective on the part of the
manufacturer. Furthermore, standards and specifications are static while quality is a moving
target. Lawton (1993:80) supports Jurans observation by mentioning that requirements are
often specified by the producer who may have only a partial relationship to customer
desires.
Gavin (1988:45) realises this criticism when he says that the definition conformance to
specifications considers that the product, which is of customers interest and deviates from
specifications is likely to be described as poor quality product, as such, this would be a
serious problem in that definition of quality.

All in all, as ISO 9000-1 notes that specification, in itself might not guarantee that a
customers requirements are met (Peach, 1997:37)

2.2.2 User-Based Definitions of Quality


User-based definitions of quality view quality from the customer side. The quality of the
product is determined by the user or by the customer (Feigenbaum, 1983:7). Hence, the
product which is regarded as having the highest quality is the one, which best satisfies
customers preferences (Garvin, 1988:43). A popular definition underlying this approach is
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the one by Juran (1989:1) where he defines quality as fitness for use. He then identifies two
dimensions of quality namely: product features that meet customer needs and freedom from
deficiencies. However, Garvin points out basic problems with the user-based approach is that
it equates quality with maximum customer satisfaction: though related, they are not identical.

In addition, in order to achieve satisfaction from wide range of customers, it would be


practically difficult to comprehend varying individual preferences and to transform those into
a meaningful definition of quality at the market level. Besides, by considering quality to be
exclusively customer determined, the products impact on the environment, health, safety and
social concerns are not explicitly addressed. In the case where these concerns are considered,
it would be at individual level only.

2.2.3 Comprehensive Approach for a Definition of Quality


Juran (1992:9) reports that to date, there is no consensus on the adoption of a simple
comprehensive phrase to describe quality. Garvin (1988:46-7) goes further in pointing out the
potential conflict that exists between members of marketing, engineering and manufacturing
departments within an organisation due to them holding different views of what constitutes
quality. Marketers tend to see quality from the customers viewpoint; hence, their concern is
what happens to the product outside the factory. Engineers in general, focus mainly on
specifications and how to translate product performance into precise measurements while
manufacturing departments would look at the meaning of quality from a different standpoint
altogether. They would tend to prefer the practical meaning of quality i.e. conformance to
specifications and doing things right the first time while reducing waste.

These three approaches are not unified. Therefore, a serious problem in communication may
exist within an organisation. However, an organisation can take advantage of these dissimilar
perspectives of quality in order to enhance its position, as this would be an adoption of a
comprehensive meaning of quality rather than the pursuit of satisfying a particular definition
of quality. In supporting Garvins findings, Galgano (1994:3) states that quality becomes a
comprehensive and unifying concept. He goes further by relating the internal structure of the
organisation to the quality concept itself. Moreover, he considers quality to be a changing
concept increasing constantly over time.

13

Most of the definitions that are based on the comprehensive approach for quality consider
that there are several dimensions for quality. However, it must be customer-oriented. In
addition, each definition specifies a set of factors and conditions that correlate with quality.
Table 2.2 presents several selected definitions of quality that are based on the comprehensive
approach. It also gives a set of quality factors correlating with each one of the definitions.

Quality Definition

Quality Factors

The total composite product and service


characteristics of marketing, engineering,
manufacturing and maintenance through
which the product and service in use will
meet the expectations of customer
(Feigenbaum, 1983:7)

1.
2.
3.

According to ISO 8404 (1994), quality is


the totality of characteristics of an entity
that bear on its ability to satisfy stated and
implied needs. (Peach, 1997:36)

Clause 4.5 of ISO 9000-1 looks at the following four


facets:

Quality due to the definition of needs for the


product

Quality due to product design

Quality due to conformance to product design

Quality due to product support (Peach, 1997:36)

The effect of the product or service on society

Quality characteristics which maybe unique for


each product or service. (Ozeki and Asaka, 1990:4)

Japanese Industrial Standard JIS Z8101


(1981) defines quality as a totality of the
characteristics or performance that can be
used to determine whether or not a product
or service fulfils its intended applications.
(Ozeki and Asaka, 1990:4)
Quality becomes both a reference point and
a goal for all activities undertaken within a
company. Quality embraces and unifies
every element contributing to excellence
(Galgano, 1994:4)
The eight dimensions of quality together,
cover a broad range of concepts. Several of
the dimensions involve measurable product
attributes; others reflect individual
preferences. Some are objective and
timeless other shift with changing fashions.
Some are inherent characteristics of goods
while others are ascribed characteristics.
(Garvin, 1988:60)

The actual use


The selling price
The specification of dimensions and operating
characteristics
4. The life and reliability objectives
5. The safety requirements
6. The relevant standards
7. The engineering, manufacturing, and quality costs
8. The production conditions under which the article
is manufactured
9. The field installation and maintenance and service
objectives
10. The energy-utilization and material conservation
factors
11. The environmental and other "side" effects
considerations
12. The costs of customer operation and use and
product service (Feigenbaum, 1983:9)

Competitiveness, delivery cost, moral, productivity,


profit, product quality, or volume performance, service,
safety, concern for the environment, the stockholders
interest.
Performance, features, reliability, conformance,
durability, serviceability, aesthetics, perceived quality.
(Garvin, 1988:45-50)

Table 2.2: Quality Definition and Quality Factors

14

By looking at quality definitions and factors in Table 2.2, it may be useful to categorise them
into broader quality dimensions.

2.2.4 Quality Dimensions


The comprehensive approach sets the quality concept as a base and a goal for all operational
and organisational activities undertaken. (Galgano, 1994:4) Therefore, quality should be a
multi-dimensional concept with keeping customer satisfaction as the focal point.
Nevertheless, the main quality dimensions are briefly presented below:

Operational Dimension: Operational dimension of quality deals, mainly, with


engineering, manufacturing and quality of outputs such as: specifications, conformance,
product features, delivery service and product quality.

Reliability Dimension: Reliability dimension may include durability, serviceability,


maintainability.

Economical Dimension: Economical dimension of quality is concerned with balancing


between quality value and quality cost for each quality characteristic (Juran, Sedar and
Gryna, 1962:10). Factors such as cost, productivity, profit and competitiveness fall into
this dimension.

Organisational Dimension: The organisational dimension deals mainly with quality of


organisational structure and performance.

Social and Environmental Dimensions: Social and environmental dimensions are


quality characteristics regarding these dimensions within and outside the organisation
such as moral, safety, internal customers interest, waste, pollution and so on.

While considering the meaning of quality to be customer satisfaction-oriented, the following


notes should be taken into account:

Both the internal and external customers should be satisfied and the stockholders
interest should be recognised.

When specifying customer needs, those needs may be expressly stated by customer or
implied (latent) needs that a customer expects to be fulfilled (Peach, 1997:36).

15

Quality activity may constitute one of two broad efforts. Firstly, it may involve the
elimination of negative features of quality such as non-conformance to requirements.
This is sometimes called negative quality or reactive quality because the organisation
responds to a negative situation. The aim of reactive quality is to reduce customer
dissatisfaction. The other category of quality activities basically aims at increasing
customer satisfaction by as an example, improving a product or service. This kind of
quality is also termed positive quality (Galgano, 1994:6-7)

Quality is customer-oriented. However, other quality factors are essentials to the quality
concept as well. Each product might have its own array of quality factors (Ozeki and
Asaka, 1990:4). What is fundamental is the right combination of factors in a balanced
manner in order to achieve customer satisfaction as well as producing a quality product.
(Galgano, 1994:5)

All in all, quality in the management field has been broadened to cover other meanings of
product quality. Basically, it embodies all aspects of excellence that ensure the production of
a quality product and achieving customer satisfaction. Furthermore, quality aspects may be
grouped into three broader fields (see Fig. 2.2 below) namely, quality of output, quality to
satisfy customer and organisational and operational quality.

Quality output looks at process output and results measured against pre-specified
quality characteristics, requirements and standards.

Quality to satisfy internal and external customers and, lastly,

Organisational operational quality, which mainly is concerned with an organisational


structure and culture as well as conducting managerial functions that achieve quality.
Included under this field are engineering, manufacturing, marketing and administration
activities.

16

Product Quality

Quality
Output

Process
Output
Quality

Impact on
Environment or
Society

Quality

Quality to
Satisfy
Customer

Internal
Customer

External Customer

Quality of
Organisational
Structures and
Operations

Work Environment

Interests of all
Stockholders

Implicit Needs

Explicit Needs

Organisational Structure
and Culture.
Managerial Activities.
Organisational
Performance.
Engineering,
Manufacturing, Marketing
and Administration.

Product
Quality.
Delivery.
Cost.
Service.

Fig 2.2: A Comprehensive Approach to Quality


2.3 TQM Principles
Before going further in describing TQM, it is important to discuss the philosophical
principles of TQM. TQM is a managerial methodology. Therefore, it is a framework of
principles as well as a systems approach. It is a philosophy trying to analyse what factors
influence business quality, as well as tools with which quality can be controlled and assured.
There are different approaches that can be adopted to achieve quality, but all these
approaches lie under one methodology. The following concepts form part of the principles of
TQM and its philosophy:

a) Quality Integration
Organisation starts its business by identifying customer needs, passes through design
to manufacturing then inspection. The last step will be marketing and selling. This is
the traditional way of doing business. At the end of the day, management wishes to
present a quality product and to enhance its competitive position. Questions that arise
about this sequence are: how can management assure quality and where does quality
fit in the sequence.

17

TQM philosophy is that quality cannot be achieved only by applying inspection at the
end of the process, rather it is a quality of conducting all these processes, and
integrating all interdependent components to accomplish the goal of the whole
organisation. Ishikawa captures the spirit of TQM by saying: Quality means quality
of work, quality of service, quality of information, quality of process, quality of
divisions, quality of people including workers, engineers, managers and executives,
quality of system, quality of company, quality of objectives, briefly speaking, it is
Total Quality, or as the Japanese call it, Company-wide Quality (1985:45).

b) Quality First
Management, continuously, wants organisations to produce good products at low cost,
that is, to be competitive and to increase the market share, or at least, to survive and
maintain the same level of market share. TQM aims at serving this purpose. However,
management, sometimes has the tendency to rather get short-run profit than long-run
holistic organisation advancement. Management that adopts quality-first strategy
will increasingly gain customer confidence. Sales increase gradually as a result and
hence profit ultimately winning on the international market in the long-run (Ishikawa,
1985:104). In fact, Deming (1982:1) puts it clear by making a statement that:
productivity increases with improvement of quality.

c) Customer Orientation
Customer satisfaction is the top priority for business and basic condition for success.
Basically, there would be no business without the customer (Galgano, 1994:15).
Therefore, quality management considers the customer as a basic value that guides an
organisations activities.

In addition, a customer need should form an essential input for the designing and
production process and influences the decision-making process to the extent that
Kottler (2000:23) turns the organisation chart up-side-down by putting the customer
at the top of the pyramid.
So TQM directs that an organisations objectives, structure and managerial process
should be established in such a way that it serves the customer.
18

The customer can be outside the organisation or within the organisation. The
customers outside the organisation are the clientele while those within are the
employees. Since an organisation accomplishes a particular job in a network of
interdependencies, an employee who receives an input, naturally, it is an output of the
preceding process. In this case, the employee is a customer of the predecessor
(Jablonski, 1994:44-5). Both inside and outside customers play a major role to the
organisations success. Therefore, Ishikawa (1985:45) proposes that manufacturers
must study the requirements of consumers and to consider their opinions when they
design and develop a product.

d) Continuous Improvement
Organisations are living in a dynamic environment. Products are designed to satisfy
customer needs, which are ever increasing. Three factors that shape todays business
environment, are rising customer expectations; continuous advances in technology
and competition. These force management to adopt a continuous improvement
strategy as a normal way of managing a business.

On the other hand, with organisations confronting challenges continuously,


immediately responding to action is a real need. A plan for prevention of these
problems from occurring in the first place is rather important. Moreover, a programme
for upgrading machines, processes and tools as well as inventing new opportunities
and developing products are essentials for achieving competitiveness. Therefore,
continuous improvement must be viewed as a regular part of the organisations
performance. (Kinlow, 1992:13-15)

e) Prevention rather than Inspection


The traditional way of management is to do inspection at the end of the production
process. This approach, as Ishikawa (1985:77) notes, was abandoned at a relatively
early period in Japan. Some of the criticisms on this approach are listed below:

Inspection is costly. Ishikawa reports that the ratio of inspectors to line workers in
the West is up to an average of 15%.

19

Inspection approach does not ensure product and process improvement. On the
contrary, an inspection approach is an implicit suggestion of having a mistake
somewhere in the process, and accordingly, the inspector must pick out defective
products.

The same problem will be continuously committed. By the 1980s, about a third of
the work in the US economy consisted of redoing prior work because products
and processes were not perfect. (Juran, 1989:199)

Deming (1982:22) summarises this idea by saying inspection is too late, ineffective
and costly. The TQM approach is to do it right the first time rather than to react
after the problem happened. Problem prevention can be assured by controlling all
processes, discovering problems, identifying their root causes then improving the
process in order to avoid the problems.

f) Factual-Based Decisions
Management needs continuously to make decisions. In organisations not based on
quality, decision-making is based on opinion or personal experience of designers,
manufacturing engineers, inspectors, etc. in the absence of data (Juran, 1980:8). Then,
blaming and finger pointing start to shift responsibility for any mistake.

Ishikawa (1985:109) proposes the following steps for conducting factual-based


decision in order to ensure that any analysis has the right basis for decision-making:

Clearly recognising facts, then

Expressing those facts with accurate data, and finally,

Utilising statistical methods to analyse the data

Facts can be properly identified by recognising everyone involved in the process,


within and outside the organisation including: management, supervisors, workforce,
suppliers and customers. All these individuals can contribute to a mutually benefiting
solution. Of particular importance is the fact that their contribution relates to their
field of concern (Jablonski, 1994:48).

20

g) Workforce Involvement
Juran (1989:261) defines workforce as all employees except the managerial hierarchy
and professional specialists. Traditional management tends to ignore workforce
ability of participating in managerial activities. Galgano (1994:68) observes that
workforce involvement is important when he writes human beings have unlimited
resources and immense capabilities. Galgano goes further in putting forward a
condition for organisations ultimate success defined in terms of its management of
human resources.

TQM requires that management must provide the workforce with knowledge and
training, the workforce must understand the organisations objectives and processes as
well as where their role fits in the organisation so that they contribute efficiently in
the improvement of the organisation. Ishikawa (1985:90) explains one of the aspects
of the Japanese approach to TQM as their insistence on having all divisions and
employees involved in promoting quality control in addition to quality control
specialist. Moreover, Juran (1989:261-2) suggests that in order to achieve a quality
workforce contribution, management should:

motivate the workforce to make a contribution

provide them with required training to enable them to make a contribution.

Juran goes on to say that the workforce can contribute in the following managerial
aspects:

Quality Control: This comes first because controlling is the dominant form of
quality related responsibility assigned to the workforce.

Quality Improvement: This comes after the contributions emanating from


quality control.

Quality Planning: This becomes the least the workforce can participate in.

2.4 TQM System Approach


The battle of quality management to invade the business field is already over. Quality has
now become an important factor for achieving economic success and organisations
continuity (Lawton, 1993:xi) Before proceeding in discussing the TQM system approach it
may be useful to define what TQM is.

21

2.4.1 Definition of Total Quality Management (TQM)


After an elaboration of the meaning of the term quality has been made, it becomes relatively
easy to define total quality management. TQM is a managerial approach that achieves the
broad meaning of quality. Firstly, however the meaning of the term management is
addressed. Crosby (1979:21) defines management as the function responsible for establishing
the purpose of an operation, determining measurable objectives and taking the action
necessary to accomplish those objectives. Crosby mentions two specific responsibilities of
management as establishing operations purpose and measurable objectives as well as
ranking necessary actions to accomplish those objectives.
Ozeki and Asaka (1990:6) define management as planning and implementing controls for
organised activities in a rational and efficient manner. It therefore follows from these
definitions that planning and control are central to management. However, Ozeki and Asaka
break controlling into a four-step cycle of plan-do-check-act, which is known as PDCA
cycle. The postulation of Ozeki and Asaka is that repeated use of the PDCA cycle results in
improvement (1990:46). In other words, managements responsibilities according to the view
of the two include three main aspects viz. planning, controlling and improvement. In fact,
Juran (1992:14) puts it clearer by mentioning that management covers three areas of process
of planning, control and improvement in what he termed Jurans Trilogy.

Perhaps the plausible way in proceeding to define TQM at this stage is to define the term
quality management. Juran (1989:82) defines quality management as the totality of ways
through which quality planning, quality control and quality improvement are achieved. For a
broader understanding, other definitions for TQM are presented in Table 2.3 below:

22

According to ISO 8402: 1994, Quality management is all activities of the overall
management function that determine the quality policy, objectives and responsibilities and
implement them by means such as quality planning, quality control, quality assurance and
quality improvement within the quality system. (Peach, 1997:37 )

Japanese Industrial Standard (JIS 8101- 1981), defines Quality Control (QC) as a system
of techniques for economically producing goods and services that meet the customers
requirements. (Ozeki and Asaka, 1990:1)

Total quality control is an effective system for integrating the quality- development, quality
maintenance, and quality- improvement efforts of the various groups in an organization so
as to enable marketing, engineering, production and service at the most economical levels
which allow for full customer satisfaction. (Feigenbaum, 1983: 6)

To practice quality control is to develop, design, produce and service a quality product
which is most economical, most useful and always satisfactory to the consumer. (Ishikawa,
1985:44).

A cooperative form of doing business that relies on the talents and capabilities of both
labor an management to continually improve quality and productivity using teams.
(Jablonski, 1994:41)

Table 2.3: Definitions of TQM


It is also worthwhile to mention that quality management should not be seen in isolation from
the general responsibilities of management. Rather, it should be seen as an integral part of the
organisations overall system. (Peach, 1997:37-8)

Once management adopts TQM as a strategy, however, certain arrangements should be done.
Such arrangements are the subject of strategic quality.

2.4.2 Strategic Quality Management


Strategic quality management SQM is defined as a systematic approach for setting and
meeting quality goals throughout the company (Juran, 1989:176). Once management decides
to implement TQM, it is essential to make changes in certain arrangements within the
organisations structure and culture. Juran (1989:179) suggests six major changes to apply in
order to adopt managing for quality approach which are listed below:

The establishment of broad quality goals as part of the companys business plan.

The adoption of cultural change that is aligned with TQM philosophy.

23

The rearrangement of priorities knowing that Quality first, customer satisfaction,


employee participation and continuous improvement form part of the core of the
foundation of TQM.

Creating a new infrastructure to accommodate TQM requirements such as instituting a


quality council and training facilities.

Extensive training for the entire hierarchy.

Upper-management participation in managing for quality.

Strategic quality management, basically, is concerned with setting an organisations quality


objectives, mapping out the route and the means for reaching these objectives. It is about
making necessary arrangements and TQM programme requirements and the practising of
overall control.
As mentioned above, the main components of quality management are quality planning,
quality control and quality improvement. Those components are briefly explained in the
sections that follow.
2.4.3 Quality Planning
Quality planning is conducted to map out a route towards TQM. Jurans definition (1989:82)
for quality planning is that it is the activity of (a) determining customer needs, and (b)
developing the product features and processes required to meet those needs (see Fig. 2.3
below).

Fig.2.3: Road-Map for Generalised Quality Planning Process (Juran, 1989:88)

24

Quality planning is therefore concerned with the organisations goals, product features as
well as processes. It has been mentioned above that all levels within the organisation should
participate in quality planning. Suppliers and customers are also expected to participate
somehow in the planning. For example, customers can participate effectively in identifying
client needs and factors of customer satisfaction.
The quality-planning route should end with simple specific tasks and directions for operating
workforces to satisfy particular definite customer needs. The plan should identify the
processes for transforming customer needs into product specifications. These processes
should be established carefully focussing on meeting the following goals of a product:

meeting customer needs

meeting specifications

most economical

In a nutshell, the processes must assure a quality product.


2.4.4 Quality Control
Quality control is a fundamental part of quality management, it is a managerial process
conducted throughout the organisation to achieve organisations objectives. Juran (1989:145)
defines control as a managerial process during which we:

Evaluate actual performance

Compare actual performance to goals

Take action on the difference

Similarly, another methodology for conducting control is known as PDCA Control Cycle.
The PDCA Control Cycle is shown in the diagram (Fig. 2.4) below.

Fig. 2.4: PDCA Control Cycle (Ozeki and Asaka, 1990:7)

25

The PDCA Control Cycle as shown in the diagram (Fig.2.4), according to Ozeki and Asaka
(1990:7) consists of:

Plan: Determine your goals and develop a process for achieving these goals

Do: Implement your plan

Check: Evaluate the results of your plan and its implementation

Action: Take the necessary action constituting quality control.

More details on quality control are discussed in the chapter that follows.

2.4.5 Quality Improvement


Quality improvement acts as wheels on which the whole organisation is driven forwards.
Basically, quality improvement is a necessity for the organisations management because of
the following reasons:

To survive in the competitive environment

To catch up with rising customer satisfaction levels

To keep abreast with continuously changing quality criteria

To overcome the shortcomings of new technology

With improvement is implied the organised creation of beneficial change; the attainment of
unprecedented level of performance. (Juran, 1989:28) It therefore follows that quality
improvement is a beneficial change in the organisations objectives, structure, process and
product to increase performance as well as to eliminate deficiencies.

Improvement may be either small yet constant steps of progress or one drastic step taken
periodically. The former is termed Kaizen (Japanese for small improvements) and the latter
Kairyo (Japanese for one great improvement). The diagram (Fig. 2.5) depicts these two
concepts, which constitute quality improvement.

26

Fig. 2.5: Kaizen and Kairyo Improvements (Galgano, 1994:123)


Kaizen improvement is a systematic approach directed at organisations routine processes
and could be conducted by everyone. On the other hand, Kairyo is conducted mainly by
adopting improvements on a project-by-project basis and usually, it is undertaken by a
specific group of people expected to produce a breakthrough result (Galgano, 1994:123-4)

Both these kinds of improvements can take the form of a specific improvement strategy.
Kinlaw (1992:15) suggests five different improvement strategies. They are listed hereunder:

Responding to an immediate problem.

Preventing the occurrence or recurrence of a problem

Upgrading machines, methods and techniques

Experimenting to improve an operation or work process

Creating a new opportunity to anticipate the developing needs of a customer

27

An organisation, may basically adopt one or more improvement strategies. However, several
approaches are suggested in order to carry out an improvement programme. These are usually
step-by-step approaches. Five stages are common to a number of quality improvement
approaches. These stages are:

Adoption of a programme for improvement

Setting standards for improvement

Preparation for programme implementation such as the establishment of a quality


council

Remove obstacles and delays which may prevent implementation

Conduct improvement and check results

Quality improvement should be a continuous activity in the organisation. Improvement


should be the organisations culture and the basis for rewarding and recognition system.
So far the main features of the TQM framework have been presented. However, the matter of
how this whole framework works requires much more discussion. It is to this that the focus of
this research turns.
2.4.6 TQM Mechanism
TQM is a managerial approach that deals with the dynamic business environment which
consists of complex interdependencies of relationships aimed at producing quality output.
The TQM mechanism relies on the premises of considering TQM as an integral part of the
business plan and quality is a function of all the managerial aspects throughout the
organisation. In order to achieve quality, all activities of engineering, manufacturing,
marketing and administration should be considered within the quality system. Therefore,
achieving quality, implies integrating all factors that affect it.

The author of this research suggests the following TQM model presented in Fig. 2.6 where it
is believed that the model explains the mechanism and the framework of TQM within the
organisation.

28

Fig. 2.6: An Integrated TQM Model

The following points are explanatory comments on the TQM Model as presented in Fig. 2.6

Quality standards and customer (internal and external) satisfaction are the two top
priorities and they must guide and influence the organisations objectives and
business process.

The main inputs that form quality standards are:


-

Customer satisfaction requirement

Business environmental factors such as technology, environmental issues,


health concerns, social aspects, legal issues, market issues and competitiveness

Feedback loop of supplier-customer chain outputs

All these aspects interact with quality standards which themselves go through a
process of adjustment and change over time (see diagram Fig. 2.6).

29

The whole supplier-customer chain basically affects quality. Therefore, supplier,


business process as well as business process output must be directly influenced by
requirements of quality standard and customer satisfaction.

Management uses a process approach to accomplish business objectives. These


processes are managed by the implementation of PDCA management cycle.

At the practical level, management should be participatory and committed to the


quality programme consequences. In addition, management needs to use TQM
techniques and tools such as Statistical Quality Control (SQC), adopting team
approach, providing quality leadership, conducting training programmes and
establishing a quality council. However, business process (macro- and micro-process)
must continuously go around the PDCA cycle.

2.5 Quality Standards


The term standards as it is used in this context implies documented agreements containing
technical specifications or other precise criteria to be used consistently as rules, guidelines or
definitions of characteristics, to ensure that materials, products, processes and services are fit
for their purpose (ISO, 2002).

From the 1950s, many organisations developed quality standards that suit their own
businesses since their activities were restricted, mainly, to the local economy. By the 1970s,
the expansion of an organisations activities at national level, resulted in replacing many
firm-specific standards by national standards. However, in the 1990s, international
competition and the globalised marketplace made it imperative for international standards to
play a role to facilitate international trade and to unify the international quality language
particularly for the international contractual agreements (Peach, 1997:10-11)

In this section, an overview of four quality standards is presented.

30

2.5.1 ISO 9000


The International Organisation for Standards (ISO) is a worldwide federation of one national
standard body from each one of the more than 140 member countries. ISO 9000 is one of a
series of the ISO standards. ISO 9000 series of standards was first issued in 1987 and it
qualifies organisations quality management system and it comprises of two basic kinds of
standards (Peach, 1997:11), which are:

Product standards (quality assurance)

Quality system (management system)

However, ISO 9000: 2000 family consists of four primary standards (ISO, 2002), namely:

ISO 9000: Quality management system; fundamentals and vocabulary

ISO 9001: Quality management system requirements that demonstrate its capability to
meet customer requirements and enhance customer satisfaction

ISO 9004: Quality management systems; guidance for performance improvement to


enhance satisfaction for interested parties

ISO 19011: Guidelines on quality and/or environmental management systems


auditing.

Details of the ISO 9000 family are listed in Appendix A.

2.5.2 The Malcolm Baldridge National Quality Programme (MBNQP)


The Malcolm Baldridge National Quality Programme is an award/recognition system. It was
established in 1988 to recognise American organisations that excel in the quality management
field (Arcaro, 1995:1). The criteria are designed to help organisations use an integrated
managerial approach to improve organisational management performance system which
results in:

Delivery of ever-improving value to customer, contributing to market success.

Improvement of overall organisational effectiveness and capabilities.

Organisational and personal learning (NIST, 2001).

The award is given in categories of manufacturing, service and small business in addition to
education and health care fields which were a latter inclusion in 1999 (NIST, 2002).

31

The applicants quality management is reviewed based on a seven point criteria namely:
leadership. Strategic planning, customer and market focus, information and analysis, human
resource focus, process management and business results. However, each one of these criteria
are broken down into several clusters.

Appendix B presents the areas considered for performance excellence.

2.5.3 Deming Prize


The Deming Prize is another award/recognition system. It was established in 1951 by the
Union of Japanese Scientists and Engineers (JUSE) in honour of W.E. Deming who has
introduced basic concepts of TQM to the Japanese in the 1950s and thereafter.

Deming Prize concentrates mainly on effective planning of organisational and operational


aspects. (Su, 2003).

The Prize is an annual award given to individuals and groups that demonstrate successful
company wide quality control. Assessment is made in ten categories viz.: policies,
organisation, information, standardisation, human resources, quality assurance, maintenance,
improvement, effects and future plans.

Appendix C shows details of categories of the Deming Prize.

2.5.4 The South African Excellence Foundation


The South African Excellence Foundation (SAEF) is a not-for-gain company established by a
grouping of South African organisations in 1997 to support other organisations, large and
small, private and public, service and manufacturing throughout South Africa in order to
enhance their management systems through:

Promoting awareness and the importance of quality

Recognising organisations which achieve excellence

Increasing the understanding of the requirements for performance excellence (SAEF,


2002)

32

SAEFs quality model is based on the American and European quality foundations with
different emphasis in a way that it suits South African national priorities.
The South Africa Excellence Model (SAEM) provides organisations with an integrated,
result-oriented framework for implementing and assessing process for managing all
operations. The model criteria addresses the following areas: leadership; policy and strategy;
customer and market focus; people management; resources and information management;
process; impact on society; customer satisfaction; people satisfaction; supplier and
partnership programme and business results (SAEF, 2002).

Appendix D shows areas considered for excellence under the SAEM.

2.6 Conclusion
During the eighteenth and nineteenth century there was no quality control as it is known
today. However, in the twentieth century, quality control development has gone through three
broad stages, each stage took about 20 years, the stages are:

Inspection quality control

Statistical quality control

Total quality control

In the early 1990s all total quality control concepts have emerged as an integrated managerial
approach, and most of the leading companies adopt Total Quality Management (TQM)
programme. While in Japan TQM had been perfected more than 20 years before that.

The meaning of quality in the manufacturing field has been broadened to contain several
dimensions of engineering, manufacturing and marketing activities. In addition, product
reliability aspects are part of quality concept as well, Moreover, economical issues and
organizational arrangements as well as production impact on society and environment are
essential components that are contained in the quality concept. All these quality factors that
comprise quality should be composed in a balanced way while keeping customer satisfaction
as the focal point.

33

TQM is a managerial methodology, therefore it is a principles and system approach. Some of


TQM principles are: quality integration; quality first; customer orientation; continuous
improvement strategy; prevention rather than inspection and factual-based decisions and
work force involvement.
TQM can be defined as: the totality of ways through which we achieve quality planning,
quality control, and quality improvement (Juran, 1989:82). Planning, control and
improvement comprises the main components of organisation quality system. Quality
planning aims, basically, at determining customer needs, translate those needs into products
features then develop process required to meet those needs. Quality control is a managerial
activity with which an organisation achieves its objectives, and it can be carried out by
going around Plan-Do-Check-Act control cycle.
Finally, quality improvement is a necessity for todays organisations, mainly directed at
raising the quality level or eliminate deficiencies. Improvement programme can be carried
out on a project-by-project basis. Improvement can also be within routine work on a
continuous basis. However overall organisational quality objectives, organisational structure,
culture as well as quality programme requirements are the bases for the whole TQM system
and strategic quality management.

The TQM mechanism is based on the premises quality standards and customer satisfaction
being the top priorities. In addition, the whole supplier-customer chain affects quality.
Therefore, the TQM approach is to maintain and improve customer satisfaction as well as
quality standards by integrating and interacting all factors that form the business
environment.

Quality control is an essential component of the TQM system. More detail on quality control
is presented in chapter 3.

34

CHAPTER 3

Quality
Control

3.1 The Meaning of Quality Control

ictionary meanings of the word control are many but some of them are:

to exercise directing, restraining or governing influence over

to regulate, verify as an experiment by comparison with a parallel

experiment or other relevant standard.


To check. (Webster, 1992:284)

Three ideas of the word control are implied by the above-listed meanings. These are: to
direct; to regulate, and to check results against relevant standards. All these definitions are
relevant to how the word control is used in the field of management.

Quality control (QC) is the practice of control activities in order to achieve quality goals.
Therefore, quality control in the manufacturing field can be defined as to direct (regulate and
check) work activities in order to achieve manufacturing quality objectives. However, several
writers suggest more detailed definitions for quality control. In fact, they deal with this term
as a system that consists of interrelated components so as to fulfil a particular objective(s).
Most of these control components, basically, revolve around the components of Plan- DoCheck-Act (PDCA) management cycle.

35

Ozeki and Asaka (1990:45) define the term quality control as defining the objective of the
job, developing and carrying out a plan to meet that objective, and checking to determine if
the anticipated results are achieved. If the anticipated results are not achieved, modifications
are made in the work procedure to fulfil the plan.
Feigenbaums (1983:10) definition is not far from Ozeki and Asakas. He reasons that quality
control is the procedure for meeting the quality goal. He then specifies, almost the same
PDCA cycle components to be used as steps in such a control. The point of departure for
Feigenbaum is the concept of planning for improvement.

For Ishikawa (1985:59), the emphasis is on the economical dimension. He postulates that
quality control has to be economical. He further points out that satisfaction of the customer is
the reason why a firm has to be engaged in quality control (1985:55). Ishikawas PDCA cycle
is a redefined one presented with six steps as shown in Table 3.1:

Determination of Goals and Targets

Determining Methods of reaching Goals

Engaging in Education and Training

Implementing Work

Checking the Effects of Implementation

Taking Appropriate Action

Table 3.1: Control Cycle (Ishikawa, 1985:59)


As shown in Table 3.1, Ishikawa breaks down the plan step in PDCA cycle into two,
namely, Determination of Goals and Targets and Determination of Methods of Reaching
those Goals. In addition, Ishikawa considers engaging in education and training as part of the
implementation step of the control cycle.

More dimensions of the quality control concept are given by Galgano (1994:108). He sees
quality control to be a revolution in attitude that influences the whole organisation movement

36

as well as a means of empowering the organisations constitution. According to Galganos


view, quality control is basically prevention, whereby, work continuity and performance
level are maintained. In addition, QC is carried out by applying the PDCA cycle repeatedly
basing it on statistical methods. He asserts that the ultimate objective of QC is customer
satisfaction.
All in all, the above-mentioned definitions view QC as a continuous procedure aimed at
planning and implementing all activities throughout the organisation, appraising conformance
and checking results against the planned and then taking corrective action accordingly. QC is
basically prevention. Its objective is to achieve the organisations goals. However, the
ultimate objective is to fulfil customer needs.

By looking at the definition of quality control, it is obvious that quality control is a basic
condition for successful management, since it improves the organisations performance and
eliminates product deficiencies (Feigenbaum, 1983:10). A noteworthy remark of particular
importance at this stage is one made by Feigenbaum (1983:11) and Galgano (1994:107) that
although QC may be discussed in separation from other management activities such as
quality planning and quality improvement, in practice, it does not have a specific stage,
hence, cannot be isolated in the whole organisations operations. It starts from identification
of customer needs and ends only when customer needs have been satisfactorily met
(Feigenbaum, 1983:11). It is evident that ISO 9000:2000 (ISO:2001) adopts a process
approach to establish a quality management system and the PDCA cycle, is deployed
throughout the entire quality management system process.

Consequently, a legitimate question that arises is that what is the difference between quality
control on one hand and quality planning as well as quality improvement on the other. Where
does quality control fit in, in the whole quality management framework? In an attempt to
answer all such questions, Peach (1997:23) considers that the four of quality management
activities namely: quality planning, quality control, quality assurance and quality
improvement are correlated to the classic PDCA management cycle, where, each activity is
managed by the application of the whole PDCA cycle. However, quality planning focuses on
the Plan Step; quality control focuses on the Do Step; quality assurance focuses on the
Check Step, and quality improvement focuses on the Act Step. Therefore, quality control
is basically, an essential part of both management activities of quality planning and quality
improvement. In other words, there is an inherent step of control, which in turn implements
37

the plans and checks the results against the planned. The diagram (Fig. 3.1) depicts the
interrelationship of the three major quality management activities of planning, control and
improvement.

Fig. 3.1: Interrelationship of the Three Major Quality Management Activities

The diagram (Fig. 3.1) shows Jurans Road Map of the planning process in the quality
planning section, column (B), (Juran, 1989:88). Column (C) shows Crosbys 14 steps for
continuous improvement. The quality control column (B) includes the PDCA Control Cycle
of daily routine work as well as overlapping on the control aspects of both quality planning
and quality improvement.
Apart from Peachs approach presented above, Juran (1992:16-17) presents another view for
the relationships of the three major management activities. He sees that management
activities pass through four distinct stages. See diagram Fig. 3.2:

38

Fig. 3.2: Stages of Major Management Activities (Juran, 1992:17)

The first stage is quality planning whereby customer needs are determined, in effect, product
features specified, then, the development process that fulfils the requirements of product
features that meet customer needs. The next stage starts when the plan is given to the
operating forces to produce the product.

Operations are expected to experience problems of not achieving hundred per cent good
work. In this instance, quality control constitutes evaluating the actual performance by
comparing it with quality goals then acting on the deficiencies. Two kinds of deficiencies are
expected to occur namely, sporadic problems, which result from special causes such as a
specific machine, specific material or a particular employee, and chronic problems which
originate from the plan itself, so, basically, it was planned that way. Quality control
activities can overcome sporadic problems and prevent things from getting worse. In
addition, it is expected that small steps of improvement will result from the implementation
of quality control. The third stage of a dramatic quality improvement is needed to overcome
the chronic problems. In the fourth stage, quality control is carried out again with less
deficiencies and variations in products and process.

Nevertheless, there seems no clash of the views of the relationship of management activities.
To the contrary, while accepting the three distinct stages of planning, control and
improvement, there is still control step within both quality planning and quality development.

39

The author presents the diagram (in Fig. 3.3) which embodies the role of quality control in
the whole TQM framework which shows that:

There are three major quality management activities namely: quality planning, quality
control and quality improvement.

These three components interact and functionally integrated.

Each management activity is controlled by carrying out the PDCA control cycle.

Quality control activity is responsible for implementing and translating quality planning
and quality improvement outcomes into daily routine work, which in turn, is controlled
by carrying out the PDCA cycle continuously.

Fig. 3.3: Quality Control Cycles in Management Activities

3.2 Quality Control and Quality Assurance


Quality assurance is based on the principle of quality first, and it is part of the broad concept
of quality control. Fig. 3.4 shows that quality assurance is within and at the core of the quality
control area. Quality assurance is concerned mainly with product quality and customer
satisfaction. At the end of the day, the customer needs a quality product and not, for instance,
quality documentation.

40

Fig. 3.4: Company-wide Quality Control (Ishikawa, 1985:93)

Ishikawa (1985) presents the diagram shown in Fig. 3.4 illustrates the assurance of quality in
a product so that a customer can buy with confidence and use it for a relatively long period of
time with confidence and satisfaction. Not far from this view, ISO 8402 defines quality
assurance as all the planned and systematic activities implemented within the quality system
and demonstrated as needed to provide adequate confidence that an entity will fulfil
requirements for quality (Peach, 1997:39). Moreover, the Japanese Industrial Standard JIS
Z8101 of 1981 defines quality assurance as an activity undertaken by manufacturers and
the definition mentions the same objective of carrying out assurance activities that are to
satisfy the requirements of the customer (Ozeki and Asaka, 1990:23-4).

3.3 Quality Control System Approach


3.3.1 Quality Control System Objective
While keeping the broad meaning of quality in mind, a quality control system is the work
structure that contains, organises and directs all quality control activities so as to achieve
quality product and customer satisfaction. Control, in this context, refers to the broad
administrative and technical area of developing, maintaining and improving product and
service quality (Feigenbaum, 1983:64). In fact, the scope of a quality control system must be
widened like that because quality cannot be expected or inspected into the product. But
quality must be designed and built into it throughout the organisations activities including
market research, inspection of incoming materials, administrative work and the training
system (Feigenbaum, 1983:77). On the other hand, the objectives of a quality control system
within the organisation are:

41

Carrying out plans and improvement programme

Developing plans of daily routine work

Comparing results against quality objectives

Acting on the difference between actual performance and quality objectives

Two broad objectives of quality control system are:

All organisational activities can be grouped into processes; the output of each process
forms part of inputs of the next process and the person(s) who receive process output is
a customer for the preceding process. In this case, quality control system ensures that all
arrangements achieve a quality output that is most satisfactory for its intended
customer.

Cost control for activities and process

3.3.2 Quality Control System Organisation


The objective of the system mentioned previously is quite broad, since the quality control
system forms the heart of the organisation, ensuring its survival and progress. Therefore, a
well-integrated system should be set up with developing clear performance measurements
and establishing infrastructure. The quality control system covers all management and
workforce levels, since quality is the job of everyone in the organisation and each person is
responsible for the quality of his or her own work (Galgano, 1994:23) This entails providing
top management, supervisors as well as workforce with training to enable them to carry out
control activities and use control tools. In fact, the quality control system is an integral part of
business management, and not separate from it. However, some structures such as a quality
council at top management level and a quality circle at workforce level may be established
to pay particular attention to the quality programme. A quality supervisor maybe needed to
coordinate quality activities throughout the organisation and outside. In addition, more
responsibility is given to management and engineering to provide the organisation with
leadership in order to assure quality and quality cost (Feigenbaum, 1983:160). The important
factor in quality control organisation is to consider that quality is a mandate of each and every
person. As such, authority relevant to each persons position and responsibility should be
given. Naturally, this implies providing individuals with adequate training and establishing a
motivational and recognition system.

42

3.3.3 Aspects to be Controlled


Quality control is a fairly broad concept. It basically comprises all that affects the wide
meaning of the quality concept. Therefore, any attempt to gather and group all aspects that
should be controlled may end up with excluding some important aspects. However, the
following categories of aspects to be controlled are believed to be fairly comprehensive.
These categories are: activities, management of organisation as a whole (Galgano, 1994:1137), and technology (Feigenbaum, 1983:43), and are briefly discussed below:
a) Activities
Activities that can be controlled are divided into two groups. See diagram
(Fig. 3.5):

Activities directly connected with a product in different fields such as activities


of marketing and market research, engineering, manufacturing, purchasing,
supervision, installation and resource utilisation.

Activities not directly connected with a product such as the information system
and documentation, budgeting, investment planning, marketing planning and
planning for resource utilisation. However, all plans are developed, in this
category, starting with potential problems involved, where the root cause of
those problems are identified and eliminated. Subsequently, a new plan is
developed and implemented.

Fig. 3.5: Aspects to be Controlled

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b) The Management of the Organisation as a Whole


It is managements responsibility to provide the organisation with strategy and policies
to provide people with leadership so as to make optimal use of human capabilities.
Nevertheless, management should look at two broad organisational problems
problems of today that prevent organisations from maintaining quality levels, and
problems of the future which affect organisations continuity and competitive position
(Deming, 1982:8). Therefore, management activities concerning quality control at
organisational level are: maintenance and improvement.

Maintenance:
To maintain the level of performance achieved in daily routine work. Galgano
(1994:116-17) suggests three fundamental conditions to maintain the level of
performance:

Maintaining minimal variations within process parameters

Doing things right the first time.

Delegating managerial activities and increasing employee involvement.

Improvement:
Improvement, mainly, is a management responsibility. Two approaches can be
adopted in order to carry out the improvement activity:
-

Small-step improvements by going around the PDCA cycle repeatedly. See


diagram (Fig. 3.6).

One big-step periodic improvement. It may sometimes be called innovation


or breakthrough.

Fig. 3.6: Repeated Application of the PDCA Control Cycle


(Ozeki and Asaka, 1990:46)

44

c) Technology
Technology has an increasing impact on business trends and, in part, also on the quality
control system. Technology in this context comprises material and energy, machinery
and processes (Feigenbaum, 1983:43). Material characteristics determine how it should
be manufactured and controlled. On the other hand, machines and tools are of direct
impact on quality production as well as level of accuracy and inspection. Computers
and software have a major impact on documentation systems and facilitate
implementation of statistical quality control. Lastly, the whole business work may be
broken down into processes in order to accomplish the organisations final goal.
However, developing effective and efficient processes is crucial for quality control
systems success. More elaboration will be provided on how to control process in the
section that follows.

While developing a quality control system, management should realise two things that
are of extreme importance:

Management members alone cannot implement quality control system,


therefore, management should involve all individuals and delegate control
activities to each person within the organisation as well as suppliers.

Control should be directed towards results as well as the cause in order to


influence the result, and since there are many causal factors that can affect
quality, it is managements role to identify the most important one(s), which
considerably influence results. Management should then standardise how causal
factors can be easily controlled (Ishikawa, 1985:61-65).

3.4 Process Control


Tanya Vinos (2002) reports in an article entitled Process is King the success story of
Honeywells (an electromechanical firm) plant in Warren where it once had row-upon-row of
hand assembly tables with 200 production employees. Today, the plant has only 80
production employees operating seven automated interchangeable lines. The growth in output
per employee from 1997 to 2001 has been 69 percent. This has been coupled by a marked
reduction of customer rejection rate range from 250-500 ppm per year to 3 ppm per year in

45

2001 and currently down to 0 ppm. Cynthia M Knautz, a manufacturing engineer with
Honeywell at Warren, according to Vinos, attributes this achievement to the implementation
of quality process control techniques. So, what is process and how can process control be
implemented?

3.4.1 Defining a Process


A Process is a series of activities connected to each other functionally, in order to accomplish
particular objective(s). Clause 3.4.1 of ISO 9000-2000 defines process as a set of
interrelated or interacting activities which transform inputs into outputs:
Note 1: Inputs to a process are generally outputs of other processes.
Note 2: Processes in an organisation are generally planned and carried out under controlled
conditions in order to add value (ISO:2001).
A process is basically a set of activities that could be manufacturing work, engineering or
administrative activities. In fact, the new trend of management tends to accomplish the whole
organisation work by means of a process. ISO 9000:2000 (ISO:2001), for instance, as
mentioned above, adopts process as an approach to quality management system. Moreover,
Lawton (1993:80) considers that managing business, as a process to achieve quality is one
of the significant changes now sweeping American business.
The rationale of grouping the whole business activities into series of processes is that:

It is difficult to control a relatively large number of activities throughout the


organisation in different fields and functions yet the task is much easier when
grouping activities into a limited number of processes, especially, when identifying
the most influential factor(s) affecting quality of process output.

It is difficult to integrate all scattered activities so as to achieve specific quality goals


(See diagram Fig. 3.7 below). However, in process approach case, all processes which
comprise of the entire organisations work can be designed and linked to each other in
such a way that to achieve specific quality goal(s), which in turn can be deployed
down to form the target objective of each process output (Galgano, 1994:99)

46

Fig. 3.7: Baldridges Steps toward a Mature Process Approach (NIST, 2000:49)

The last and maybe the most important reason is that processes form the steps
of achieving a product. In order to control an operation, its process must be
controlled but not its product. However, only the product of an operation can
be inspected. Similarly, the quality process should be controlled so as to
achieve a quality product. Therefore, managements focus should be diverted
towards processes and causes in addition to the focus on outputs and effects
(Galgano, 1994:92).

Before discussing process control, process context as well as quality process requirements
need be clearly stated. These two concepts are briefly presented hereunder:

3.4.2. Process Context


Process context includes the following aspects (See diagram Fig. 3.8):

Input: which includes the output of the preceding process

Resources: In the case of manufacturing, process resources may consist of


materials, machines, employees, and information. Information specifies the
way how the process is carried out.

Process: Sometimes called cause(s), is a mechanism for transforming inputs


into outputs using assigned resources.

Output: Also called effect or product, (Juran, 1992:5), is the result of process.

47

Fig. 3.8: Process Context (Adapted from Jablonski, 1994:52)

3.4.3 Quality Process Requirements


A process is designed in a way so as to achieve particular product(s). It is normally the case
that process and product features are correlated. Hence, the need of having quality product
must be reflected in the process features. Nevertheless, the following are requirements for
achieving quality process.

Effectiveness: the effectiveness of a process implies its ability to achieve desired results
(ISO:2000), with respect to the processs effectiveness level based on the extent to
which the process is satisfactory as an input for the process that follows it (Galgano,
1994:99).

Efficiency: efficiency itself will be evaluated according to what has been achieved
compared to resources used. (ISO:2000)

A prevention orientation: process is set up in such a way that it prevents occurrence and
reoccurrence of mistakes and eliminates the need for rework (Baldrige: 42-43).
Ishikawas suggestion for achieving that goal is to identify the root cause of a problem
that affects product quality sharply, then standardise the elimination of the cause
(1985:61-65). Moreover, Juran postulates a prevention-oriented process which designs
the process in such a way that it reduces the possibility of human error (1992:231).

Reliable: achieved when the percentage of obtaining desired results (via this process) is
consistent and relatively high over time.

48

Stable: Process factors are the aspects within the process, which influence the process
output quality. Process quality is basically the quality characteristics of the product.
Now, stability is attributable to process if it produces quality characteristics that are
predictable, consistent and within the control limits.

Clear, easy, and smooth: the relationship between a process and the preceding one and
the one that follows should be clear. There should be no gaps between processes and
between activities in a process. Otherwise, a potential mistake will occur. Process must
be understandable for those people who are responsible for it, since they are the ones
who should control it in the first place (Ozeki, Asaka, 1990:51).

Predictable: process input and resources comprise production condition or causes


which, intern, interact with each other to produce, on the other side, the output or
results. So, the way and degree how causes influence results should be known in
order to be able to control process.

Controllable: this issue needs to be the first one, nevertheless, the process has factor(s)
that affect its product quality, each factor affects quality to a certain degree;
consequently, the design of the process should allow the person(s) that controls it to
measure the effect of each factor, separately, on product quality.

The Feedback Loop: the process must have a feedback loop which allows controller
to compare measurement against quality standards and customer requirements and then,
in turn, to adjust and improve the process accordingly (Juran, 1992:275-278)

3.4.4 Quality Process Control


Process as an organisational unit is to be controlled. Control activities throughout the
organisation are carried out by the systematic approach of going around the Plan, Do, Check,
Act (PDCA) control cycle. Similarly, process, in essence, is controlled in that systematic
way. However, the process needs to be further analysed to know exactly how the PDCA
cycle can be applied. Process, operationally, comprises three basic concepts, they are:
essential variables, sources of disturbance, and the regulator (Galgano, 1994:93).

Essential variables are those aspects that are attributable to quality requirements and,
in part, related to either process it self or related to the output. Essential variables
related to the process are typically, effectiveness, reliability, accuracy, turn-aroundtime (TAT) and resource utilisation. On the other hand, essential variables related to
output are, basically, the product features such as: dimensions, strength, appearance.

49

Sources of disturbance are those aspects that cause undesirable variations in the
essential variables such as: tools accuracy, waste, lack of (skills, information),
undesirable environmental conditions.

The regulator contains those elements that keep the process running properly. Thus
management sets up a process regulator for the consideration of quality process
requirements in order to keep essential variables within quality requirement limits.

However, to fully control the process, the three process basic concepts should be controlled
keeping in mind that the process regulator plays the essential role of controlling process
(Galgano, 1994:95). Essential variables are the logical results of regulator, but still essential
variables should be separately controlled. Juran (1992:280) suggests controlling variables by
the means of:

Inspection and test

Evaluating control methods which were set up by regulator

Data analysis and interpretation, this area of control is called Statistical Process
Control (SPC)

Regarding sources of disturbance, the strategy of quality control is to investigate the cause of
problem upstream and to prevent occurrence right there. Investigating the cause of the
problem is known as Root Cause Analysis (RCA). For this purpose, Ishikawa (1985: 63)
suggests the use of a cause-and-affect diagram (see section 3.5 quality control tools).
Generally, risk management and past experience are commonly useful means in order to
discover and avoid potential source of disturbance.
Controlling the regulators, essential variables and source of disturbance is conducted through
the implementation of the PDCA cycle. However, the PDCA cycle may be used as a
problem-preventing tool as well as a problem-solving tool. Galgano (1994:189-90) breaks
down the PDCA cycle in terms of its use as a problem-solving tool into seven stages, namely:

Identifying the problem [problem]

Understanding the characteristics of the problem [observation]

Searching for its cause [analysis]

Eliminating the cause [action]

Validating the effectiveness of the action [checking]

Making the elimination of the cause permanent [standardisation]

Reviewing the activities and plan for future work [conclusion]

50

The practical application of these problem-solving stages is done in the case study of this
dissertation in Chapter 4.

Two more points are essential while carrying out the process control activity they are:

The implementation of PDCA control cycle is continuous and essentially


similar, to the use of the feedback loop. (See section 3.5 quality control tools)

The relationship between process variables and product features should be


known, However, one variable, often, is more important than the others that
variable which is called the dominant variable must receive top priority to
be controlled (Juran: 1992:285).

3.5 Quality Control Tools


Quality control activities are carried out by conducting the systematic approach of the PDCA
cycle. The planning step begins with either an existence of a problem involved or preventing
a problem from happening in the first place. Consequently, quality control activities start with
the evaluation of actual performance. Therefore, accurate information is needed to establish
factual-based decisions. Zairi (1991:37) suggests the following steps for gathering such
information:

Measuring with manufacturing

Recording of measurement

Analysing the record and

Using the analysis for feedback and corrective action

However, in practise, tools are needed to implement the above-mentioned steps. For this
purpose, Ishikawa (1985:198) suggests the seven quality control tools which according to
Montgomery (1991:101) are also called the magnificent seven to be used by everyone in
the organisation. These tools are listed in the table hereunder.

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Elementary Statistical Methods (the so-called Seven Tools)


1

Check sheet

Histogram

Pareto chart: The principle of vital few, trivial many

Stratification

Scatter diagram (Analysis of correlation through the determination of median; in


some instances, use of binomial probability paper)

Graph and control chart (Shewhart control chart)

Cause and effect diagram (This is not precisely a statistical technique)


Table 3.2: Elementary Statistical Methods (Ishikawa, 1985:198)

The table (3.2) above shows Seven Tools for elementary statistical methods advocated by
Ishikawa.

The seven control tools are mainly statistical and the first step when using the tools is data
collection. Data are collected to assist in understanding the actual situation. Subsequently,
some statistical tools can be used to organise, clearly display and analyse data collected. In
effect, a corrective action should be taken accordingly. Action may be taken to adjust process
as well as to evaluate product quality (Ishikawa, 1983:12).

On the other hand, the purpose of collecting data must be clear. More over, the data itself
should be relevant to the identified purpose (Ozeki Asaka, 1990:115-6). Otherwise, having
huge amount of data might disturb control process. Nevertheless, an overview on the seven
quality control tools are presented here below:

Check Sheet:
A check sheet is a form prepared to facilitate the recording of data in an organised and
easy manner. A check sheet would state the occurrence frequency of event (quality
factor) by only putting down a check mark on the form (Ozeki, Asaka, 1990:159). The
diagram below (Fig 3.9) shows one type of check sheet where the horizontal line forms
a quality factor and the vertical line forms frequency.

52

Fig. 3.9: Data Collection (Check) Sheet for Measurable Quantities (Galgano, 1994:179)

Histogram:
Usually, there is variation between units produced by a manufacturing process.
Normally, the variation pattern is difficult to be realised from mere data (Montgomery,
1991:23). Therefore, histograms display the distribution of data comparing it to
specification limits. Histogram may be constructed (see Fig. 3.10 below) by dividing
data range into equal relevant intervals, these intervals are written down along
horizontal axis, and a bar on each intervals is made where its height represents the
frequency of data within that particular interval (Ozeki, Asaka, 1990:171-179).

Fig. 3.10: An Example of a Histogram (Galgano, 1994:180)


53

Pareto Chart
Pareto chart is basically a histogram that shows the relative frequency of quality factors.
Quality factors are arranged in descending order, starting by a factor, which has high
frequency down to the lowest (Ozeki, Asaka, 1990:139).

Fig. 3.11: The Pareto Diagram (Galgano, 1994:183)

Pareto Chart as in diagram (Fig. 3.11) above mainly, identifies types of defects that
frequently occur (Montgomery, 1991:120). An improvement plan will therefore start
with a focus on that (Ishikawa, 1983:45).

Cause and Effect Diagram


Once types of defects have been identified, the root cause of problem should be
investigated (Montgomery, 1991:121). For this purpose cause and effect diagram
(also called fishbone diagram or Ishikawa diagram) can be used.

54

Fig. 3.12: Cause and Effect Diagram (Ishikawa, 1985:63)

The diagram (Fig. 3.12) above, has two sides, the right-hand-side forms the effect or
quality characteristics. And the left-hand-side is the cause or factors that affect quality
characteristics (Ishikawa, 1983:1). This diagram (Fig. 3.12) shows that there are many
factors that influence an effect, therefore, management should investigate and control
the root causes in order to influence the effect (Ishikawa, 1985:61-65).

Stratification
When gathering data to be used in further analysis, it is useful to stratify data by the
type of material, type of machine, time, operator, or other types to better
understanding the real situation. This facilitates easy isolation of causes and problem
sources (Ozeki, Asaka, 1990:179). Furthermore, stratified data can be used in other
quality control tools i.e. (check sheet, histogram, control chart). The diagram (Fig
3.13a) below shows the distribution of data arranged in a histogram for a combined
two-shift department. However, diagrams Fig. 3.13b and Fig. 3.13c show the data
distribution for each shift separately. That, as a result, gives more information about
the real situation and in turn, directs quality control activities (Galgano, 1994:184).

55

Fig. 3.13a: Histograms of Department Defects

Fig. 3.13b: Histograms of Fist Shift Defects

Fig. 3.13c: Histograms of Second Shift Defects

Fig. 3.13: Using Histograms to Direct Quality Control Activities (Galgano, 1994:185)

Scatter Diagram
Scatter diagram is a step further beyond the cause and effect diagram. In fact, cause
and effect diagram gives information regarding the set of causes and factors that can
influence effect. However, it does not describe the relationship between cause and
effect individually (Ishikawa, 1983:87). In addition, it does not expose the weight of
each factor. Having a scatter diagram, explains the correlation between pairs of

56

factors or between cause and effect (Ozeki, Asaka, 1990:237). This diagram is of
importance in facilitating the identification of the most influential factors affecting
quality characteristics towards which direct control efforts should be concentrated.

Fig. 3.14: Scatter Diagram (Galgano, 1994:186)

The diagram above, (Fig 3.14) shows a scatter diagram that depicts the moderate
positive relationship between temperature and defects.

Control Chart
A control chart is mainly used to evaluate process stability (Ozeki, Asaka, 1990:205).
It is a two-dimensional graph, (See Fig. 3.15 below). The horizontal one forms
measurements over time, and the vertical dimension forms the values of quality
characteristics.

Fig. 3.15: A Typical Control Chart (Montgomery, 1991:103)

57

The chart contains three parallel lines, the centre line lies on the average value of
quality characteristics, and the other two ones are the upper control limit (UCL) and
the lower control limit (LCL). Measures are taken over time. If values of quality
characteristics lie within the two limits, generally, it is to be said that the process is
stable. Otherwise, if some values lie beyond control limits, that would be an
indication for an underlying potential problem. Consequently, an investigation is
required to identify the source of the problem, then to eliminate the root cause so as to
prevent reoccurrence (Montgomery, 1991:103).
These seven quality control tools are extremely powerful and, as Ishikawa states, are able
to resolve the great majority of problems in companies (Galgano, 1994:187). However the
outcomes of these tools are basically information that needs to be taken into account while
improving process. When having such information, the tool that maybe used to consider these
outcomes is a systematic approach called the feedback loop.
Juran (1989:146) established the feedback loop, (see Fig. 3.16 below) which consist of the
following basic elements:

Fig. 3.16: Feedback Loop (Juran, 1989:146)

The sensor: which follows and evaluates process outcomes.

An umpire: who receives information about performances from sensor then compares
it against standards and goals, the result of the comparison is the identification of
differences between performance and goals.

Actuator: making the changes needed on performance to conform to goals.

It is worthwhile to mention here that going through the feedback loop while conducting
control activities is essential.

58

3.6 Conclusion
Quality control is a system that contains, mainly, the components of Plan-Do-Check-Act
(PDCA) cycle. Quality control is basically prevention and its objectives are to carry out
organisations plans and to check result against quality objectives. If variations are found,
corrective action has to be taken accordingly, and that implies developing new plans for
improvement. Ultimately, quality control objective is achieved when customer is fully
satisfied.

Quality control is conducted throughout the organisation and it forms an essential part of both
managerial activities of quality planning and quality improvement. In fact quality control
system is an integral part of business plan. In effect, quality control system organisation may
not have a separate structure. However, some structures such as quality assurance department
and quality council may be established to pay particular attention to critical quality activities.
It remains, however, the responsibility of every person within the organisation to ensure
quality in his/her function on the job.

Activities are better controlled when grouped into sets of processes. While realising that,
quality product is just a result of quality process. Therefore, process should possess specific
requirements in order to be able to deliver its intended product.

Nevertheless, the first step in the control process is to design it in such a way that it is
capable. In addition, the relevant quality factors (process variables) as well as, causes that
might disturb process flow should be controlled. Quality control starts with a step of planning
which in turn is based on data. The seven quality control tools are powerful tools in order
to organise, clearly display, and analyse data. This facilitates the controllers role of
evaluating the actual performance. Information resulting from the use of the seven control
tools goes through the feedback loop, which in turn, forms the bases to take relevant
corrective action.

So far, an elaboration has been made on quality control, in general, and quality process
control, in particular. The chapter that follows presents a case study of a manufacturing and
construction firm on quality process control.

59

CHAPTER 4

Case Study of
Process Control

4.1 Introduction

BC Steel Engineering Company (ABC Steel) is a steel manufacturing and


construction company. The real name of the company has been changed here for
confidentiality. The company is structured into four major divisions. They are:

Structural steel

Special projects

Heavy fabrication

Machining (ABC Steel, 2002:SM/5)

The companys mission is to be the dominant name and multi-disciplinary company in


construction and engineering in Africa. (ABC Steel, 2002:SM/6) The company bases the
management system on world-class business philosophy, whereby the company integrates
ISO 9001-2000 (Quality Management) with ISO 14001 (Environment Management), OHSAS
18001 (Occupation Health and Safety Management), as well as risk management principles
into a Total Business Management System (ABC Steel, 2002: SM/4-5). See diagram (Fig.
4.1) below. This implies the managements commitment to constantly satisfying changing
customer need as well as requirements of the specified quality standards.

60

Fig. 4.1: Integrated Management System Flowchart (ABC Steel, 2002:SM/6)

All above-mentioned objectives and policies are embodied and assured through the
development of structures, procedures and processes that are subject to regular reviews and
feedback to the executive committee of the company in order to constantly improve the
quality of their products and services (ABC Steel, 2002:SM/7).
The total business management system is compiled in the companys Business System
Manual (BSM).
4.2 ABC Steels Process Control Approach
The ABC Steel demonstrates a high level of management involvement in the quality
programme, since the company executive committee is committed to meet the business
management system requirements and the managing director chairs the meetings that ensures
its continued effectiveness (ABC Steel, 2002:MR/1-3).

The managing director designates responsibility and authority to the quality assurance
manager to ensure that the business management system is established, implemented and
maintained (ABC Steel, 2002:MR/2). In effect, quality assurance department carries out
activities pertaining to management system quality as well as product quality. The diagram
(Fig. 4.2) below states the activities in a flowchart format, which are conducted by the quality
assurance department.

61

KEY:
QCPs = Qaulity Control Plans
WPs = Welding Procedures
NCRs = Non-Conformance Reports

CARs = Corrective Action Reports


PQRs = Pre-Qualification Reports
NDT = Non-Destructive Test
WPS = Welding Procedure Specification

Fig 4.2: QA/QC Progress Flowchart (ABC Steel, 2002:PC No. 11)

62

Management uses a process approach in carrying out business activities, where ABC Steel
(2001) mentions in section SP No. 1:1 that the organisation structure is defined within the
process flowcharts, which show the interaction between each process of the business.
Consequently, the BSM contains over eighty process flowcharts that explain business
activities and work instructions throughout the organisation.

Broadly, the ABC Steel process control approach may be summarised in the following
procedures:

Processes commence with planning activity which in turn identifies the following
aspects:
-

setting objectives which are measurable and consistent with the business
policies.

ensuring compatibility of processes

identification and acquisition of any controls, documentation and equipment

identification and preparation of records

meeting the eight quality management principles (ABC Steel, 2002:


SPNo.1/5)

Conducting regular meetings to communicate to all personnel on the following matters:


-

customer requirements

system performance

company performance (ABC Steel, 2002: SP No.1/8)

Controlling all documents related to the Business Management System whether hard
copies or electronic information in order to specify the system control requirements
(ABC Steel, 2002: SP No. 2/P,O)

Generating records in order to examine the effectiveness and conformity of the


Business Management System to quality requirements (ABC Steel, 2002: SP No.
3/P,O)

63

The identification, documentation, evaluation, segregation, disposition and


notification of a non-conforming product/processes. (ABC Steel, 2002: SP No. 5/O)

Set up an effective corrective and preventive action system to detect and eliminate
potential causes of non-conformances (ABC Steel, 2002: SP No. 6/P). For instance,
some types of non-conformances are product non-conformities and deficiency within
a process (ABC Steel, 2002: SP No. 6/3).

Conducting internal audits periodically, by using a checklist that contains all activities
of the Business Management System. The objective of this procedure is to examine
the effectiveness and the efficiency of the system. The audit findings for a particular
department were followed up with that departments manager and were available for
management review meeting (ABC Steel, 2002: SP4:1-2)

Conducting management review meetings every six month, chaired by the managing
director, some of issues discussed in the meetings are:
-

System audit findings

Outstanding non-conformances

Customer feedback

Process performance and product conformity

Status of preventive and corrective actions

Recommendation for improvements

In conclusion of the management review meetings, the managing director assigns


responsibilities and dates for completion of actions to be taken. (ABC Steel, 2002: SP1/9)
By looking at the ABC Steels process control approach, one can realise that it is consistent
with the PDCA control cycle, referred to in section 2.4.4. Where, the first and second
procedures form the Plan step. The next two steps may be considered the Do step whereas
the fifth procedure may be considered forming the Check step and the sixth one may be
considered as the Act step. However, on a broad organisational level, the seventh and eight
procedures may be considered the Check and Act steps respectively.

64

Some of the above-mentioned control procedures are not exclusively for process control.
However, process, obviously, is an essential part of the Business Management System.

The next section is an exploration on some aspects and areas for improvement in the ABC
Steel process control approach.

4.3 Areas for Improvement in the ABC Steel Process Control Approach
Placing the Business System policies and objectives against process and work instructions,
one may realise that some of these policies and objectives are not always adequately
deployed down to the process. Nevertheless, three major areas can be identified for
improvement namely:

Investigating the root cause of a problem

The use of feedback (closed) loop

The use of statistical process control (SPC) techniques

These areas are discussed in turn below:

4.3.1 Investigating the Root Cause of Problems


When detecting a non-conforming product/process; control procedures afterwards depend
mainly on the information mentioned in the non-conformance report (NCR QD0030) to
take corrective action. However, NCR does not include information about the root cause of
the problem detected (see Fig. 4.3 below) and there is no other way of recording reports of
problems when detecting non-conformance.

65

Fig 4.3: Non-Conformance / Corrective Action (NCR) Report (ABC Steel, 2002)

66

The following are some major procedures that refer to the use of the NCR when detecting
non-conformity:

When conducting internal system audits


It is mentioned in ABC Steel (2001:ISA/6) that if during the audit, a deviation is
found, a non-conformance report will be raised, identifying the non-conformance.
Once the NCR is raised, acknowledgement is made by the relevant department
manager on the NCR and a plan of action is recommended to close-out the corrective
action and the recommended dispensation as indicated on the form QD0030.

When controlling non-conforming product/process


According to ABC Steel, (2001:SP No.5:1-2) Any person within ABC Steel who
detects a non-conformance relating to a product, material, component or process must
immediately notify their departmental head and together they have to investigate the
problem. If justified, they must raise an NCRForm QD0030 presented in diagram
(Fig. 4.3).

However, the investigation carried out in this procedure, obviously is concerning the
problem, whether it is justified or not, but not concerning the root cause of the
problem. Then, the procedure mentions, the management representative together
with the departmental head shall evaluate the NCR for the correctness of corrective
action. The NCR shall then be completed/registered on Form QD0031. Finally, a
review and analysis on all NCRs are carried out to identify trends of problems,
nevertheless, NCRs review and analysis, as stated in the procedure, deal only with the
non-conformities and problems. In addition, even when identifying trends of problems
and non-conformance categories there is not enough information in order to decide on
a corrective action.

When carrying out corrective and preventive action


Although, the policy of carrying out corrective and preventive action is to detect and
eliminate potential cause of non-conformances (ABC Steel, 2002: CPA/1), this
control procedure does not specify tools and techniques to implement the policy. The
procedure mentions only some types of non-conformances such a product nonconformance, customer complaints, and deficiency within a process. It then notes that

67

when a potential non-conformance has been identified, the person identifying the
non-conformance must raise an NCR Form QD0030 and then process this for
submission to a management representative who if in agreement, has to approve the
corrective action to be taken (ABC Steel, 2002: CPA/4).

The same previous note mentioned that NCR does not include any information about
the cause of the problem and therefore, the decision on the corrective action to be
taken, is based on the knowledge on the problem itself but not on the root cause of the
problem. Consequently, the same problem is expected to happen over and over and
not at a decreasing rate. The diagram (Fig. 4.4) on the weld reject rate below for 2002,
for instance, shows that the weld reject rates started at a specific rate at the beginning

20.30%

25%

23.50%

of the year, then got higher as the year progressed.

S/S

Jun

Jul

Aug

Sep

3.94%
7%

2.60%
1.05%

May

0%

Apr

2.70%

Mar

0%

Feb

0.60%

0.02%

Jan

0%

0.60%

0.50%

5%

0.80%

4.50%

4.75%

10%

7.80%

8.50%

12.50%

15.40%

20%

15%

Heavy Bay

Oct

Fig. 4.4: Weld Reject Rates in Percentages for 2002 (ABC Steel, 2002)

4.3.2 The Use of the Feedback Loop


The feedback loop, discussed in section 3.5, is a tool that uses the information
revealed from investigating the root cause of problems in order to continuously
improve plans and processes. Nevertheless, the sequence of work instruction process
at ABC Steel, in general, can be depicted in the following flowchart.

68

Plan

Do the Work
(Work
Process)

Compare to
Specifications

Inspect

No
Yes

Rework

Passed to
Next
Operation

Fig 4.5: General Flowchart Depicting the Sequence


of Work Instruction Processes of ABC Steel
In fact, many work instruction flowcharts of ABC Steel match broadly the general
sequence of work instruction presented in the diagram Fig. 4.5. The diagram below
(Fig. 4.6) typically shows this observation.

Fig. 4.6: Work Instruction Inspection of Painted Steel (ABC Steel, 2002:WI/25)

69

The shortcoming of such work process is that there is no feedback for the faults
committed during the plan and/or the work phase. Consequently, it is difficult to
improve the process, and, therefore, rework quantities are expected to remain the
same.

It may be remarkable to see in diagram (Fig. 4.7) on rework costs for September and
October 2002 for instance, that the rework cost in October 2002 is more than that of
the previous month. This trend is also reflected in Fig. 4.4 over a longer period of one
year.

October

1240
0

310
0

1731
261

0
0

0
0

174

1085

2175

4262.5
4960
0

0
0

2000

September

6742.5

6122.5

542.5

4000

3952.5

6000

4998.75

8000

3487.5

7478.75

10000

8562

12000

10440

9958.75

Monthly Rew ork Costs for Septem ber and October 2002

th
er
O

M
-S
ho
p
Q
ua
li t
y

B
H

B
H

Pr
ep

B
H

As
sy

W
el
d

Lo
ft

W
el
dSS
Pa
in
tB
ay
Pr
ep
S
S

Ba
y

PL
T-

BBa
y
C
-B
ay

ABa
y

Fig. 4.7: Monthly Rework Costs (Rands) for September and October 2002
(ABC Steel, 2002:WI/25)

4.3.3 The Use of Statistical Process Control (SPC)


The subject of the use of statistical tools has been dealt with in section 3.5 where SPC
has been recommended. The diagram (Fig. 4.5) depicts part of the ABC Steel work
instruction quality control methodology. It reveals that the firm heavily depends on
inspection activity to assure quality. This methodology is well exemplified in the
diagrams in the appendices. The use of statistical process control techniques to control
quality in the company is very limited. In fact, the statistical tools, which are currently
used are basically charts that state mainly the number and cost of different kinds of
non-conformities over a period of time. It also, gives information about

70

non-conformities in each department. However, such information does not yet provide
knowledge on process capability. Furthermore, it does not expose the most influential
quality factors that affect quality.

4.4 Recommendations to Improve ABC Steel Process Control


Zairi (1991:37) points out the importance of measuring with manufacturing as the first step
of the manufacturing quality control activities. The measuring step according to Zairis
approach is followed by recording of measurement, then analysing the records and finally,
using the analysis for feedback and corrective action. In fact, this approach may provide the
management with fairly accurate information about the real condition, since, measurements
are taken directly and at the shop floor level. The ABC Steels top management review for
the non-conformance reports, generally, does not help in solving problems if they do not have
measurements and information gathered during manufacturing. Moreover, the measurements
and information analysis form the basis for the feedback and corrective action and that is how
management can develop factually-based decisions.

Quality control aims at maintaining the level of performance and making improvement
happen. Improvement, as mentioned previously may be either by increasing performance or
reducing variations. Quality control, is mainly concerned with reduction in variations,
deficiencies and solving existing problems. Finlow-Bates et al. (2000) argues that the
successful total quality management is dependent on first class problem-solving.

There are several approaches to problem solving. In general, the ones that deal with the
manufacturing field contain the use of statistical process control (SPC) techniques and
conducting root cause analysis (RCA). SPC is used to monitor, control, analyse and improve
process performance. Thus, however, cannot be achieved by carrying out inspection only,
because inspection does not provide information about why an error has happened and what
corrective action must be taken (Mason and Antony: 2002).

71

Mason and Antony (2002) mention many benefits that can be gained from the
implementation of SPC, some of which are:

Process improvement, greater output.

Variation reduction

Reducing need for checking/inspection/testing efforts

Reducing quality costs

More efficient management and better understanding of process

Reduction in time spent in fire-fighting quality problems

SPC charts help distinguish special from common causes of variations.

On the other hand, conducting RCA is crucial while carrying out process control activities,
since, problems cannot be solved unless its cause is known (Ho:1996). In fact, Ho (1996)
reports that the most common mistake made by managers is that the decision-making of
corrective action is made straight after the acknowledgement of the problem.
Nevertheless, the recommendations to improve the ABC Steels process control approach are
an integral part of the existing approach not to replace it.

The recommendations are mainly based, on the process control approach proposed by
Galgano (1994:189-92) as earlier on presented in chapter 3 of this research. Consideration of
other approaches is made as well.

ABC Steel may enhance their process control approach through the implementation of the
following steps of problem solving methodology:

1. Identifying the Problem


Process control begins with a Situation Appraisal (SA) (Finlow Bates et al: 2000). All
processes should be subjected to this step. The objective of the problem identification step is
to tell the controller whether there is a problem within the process or not. For this purpose, a
control chart can be used (See section 3.5). Its main use is to detect the occurrence of
variations and to tell the controller whether the process is under control or out of control
(Montgomery, 1991:102-3). Two kinds of causes of variation are expected: common and
special causes. Common causes are those, which are common to all units of production, all

72

employees or all locations. Some examples of common causes are low rate of production,
poor supervision and incoming materials not suited to the requirements (Deming,
1982:115,123). If a common cause appears, it is said to be incapable process and it is
managements responsibility to investigate the cause and to adjust the system or the process
(Finlow Bates et al: 2000).

On the other hand, special causes are those causes related to a specific machine, specific
employee or specific location. If special causes appear, it is said to be out of control process.
Consequently, the special cause should be investigated and eliminated (Finlow Bates et al:
2000), with the realisation that the discovery of special causes of variation is usually the
responsibility of the people who are directly connected with the operation (Deming,
1982:116) However, the way to analyse the control chart to distinguish between common
causes and special causes is beyond the scope of this research.

2. Understand the Characteristics of the Problems


Process output in the manufacturing field, generally, is a result of interaction of several
complex interdependencies of man, machine, material and method. Most of the time, the
naked eye is not the best guide for solving problems found in a process. Some other
techniques are needed in order to understand the characteristics of a problem within a
process.

The objective of this step is to discover the causes of the problem. To come closer to the
problem, one may look at it from different angles such as: time, place, type and symptoms
(Galgano, 1994:190). In fact, as discussed in section 3.5, stratifying the data according to
time, location, person or group involved, supplier, raw material and type of problem, helps to
understand and demarcate specific boundaries of the problem. Furthermore, a controller
should examine how the problem varies in relation to these items (Galgano, 1994:190).
Histograms as presented in section 3.5 can be used to display and to compare the data
generated.

3. Search for the Root Causes


Having identified and demarcated the problem(s) within defined boundaries, management
chooses the most relevant ones to be tackled. Dorsch, Yasin and Czuchry, (1997) present a
six-step framework for the implementation of the root cause analysis (RCA). The importance
73

of this step is that it points the way towards the solution (Dorsch, Yasin and Czuchry, 1997).
The cause and effect diagram introduced in section 3.5 is also a simple technique that can be
used to search for the root cause of a problem. The outcome of this step is the identification
of the root cause (also called the quality factor) that affects quality characteristics. It is of
extreme importance, at this stage, to specify the most influential factor(s) that affect quality
characteristics sharply and to identify the correlation between quality factors and quality
characteristics. For the first objective, a Pareto Chart may be useful and for the second one, a
controller may use a Scatter Diagram. These tools have been explained in section 3.5.

4. Eliminate the Causes


An action is taken to eliminate the root cause taking into account any possible side effect the
action may cause.

5. Validate the Effectiveness of the Action


This step is basically a checking step to examine the effectiveness of the action taken to
prevent recurrence of the problem

6. Make Elimination of Causes Permanent


Causes are eliminated permanently by standardising the corrective action and/or adjusting the
process. By the implementation of this step, the control feedback loop will be closed, as noted
in section 3.5, and this will be the starting point for tackling another identified problem.

The process control steps presented above are obviously, heavily dependent on SPC
techniques. Therefore, all employees within the organisation including the top executives and
frontline workers should be trained how to use these techniques (Galgano, 1994:192). Mason
and Antony (2002) mention of some success stories of companies that implemented SPC
techniques. However, reasons for failure have also been reported and some of these are:

Lack of education and training

Not understanding fully the potential benefits of SPC

Failure to interpret control charts and take any necessary action

Lack of knowledge of which product/process characteristics to monitor and measure

Management commitment to provide necessary human and economic resources for


SPC

74

Finally, management should remember that employee involvement including the operators in
managing quality control is the key factor for the success of a quality control plan.

4.5 Conclusion
ABC Steel is a steel manufacturing and construction company. They integrate ISO 2000, ISO
14001, OHSAS 18001 and risk management principles into a Total Business Management
System which has been compiled in the companys Business System Manual (ABC Steel,
2002).

Their management uses a process approach in carrying out business activities. The company
process control approach is consistent with the PDCA control cycle referred to in section
2.4.4 whereby management sets objectives, policies and processes to meet quality
requirements. As the work flows, records are generated to examine the effectiveness and
conformity of the Business Management System to quality requirements. In addition, there is
a system in place for detecting non-conformities and deficiencies within the product/process.
Subsequently, corrective and preventive action is made to detect and eliminate potential
causes of non-conformance.

When analysing the ABC Steel process control approach, one may realise that the
management system policies and objectives are not always adequately deployed to the
process level. Consequently, three major areas can be identified for improving ABC Steel
process control approach. These are:

Investigating the root cause of the problem

The use of feedback (closed) loop

The use of statistical process control (SPC) techniques

Quality control is conducted mainly to reduce variations and to solve existing problems. Root
Cause Analysis (RCA) and the use of statistical process control (SPC) techniques are
commonly used as a problem-solving methodology in manufacturing. A more structured
approach to control process and problem solving as proposed by Galgano (1994:189-192) is
recommended.

75

The approach comprises six steps, which are:

Identifying the Problem

Understand the Characteristics of the Problems

Search for the Root Causes

Eliminate the Causes

Validate the Effectiveness of the Action

Make Elimination of Causes Permanent

These steps depend heavily on the use of SPC techniques, therefore, management needs to
invest in this programme by the involvement in training and education. In addition,
management should involve all employees in managing the quality control programme.

Thus far, the case study on process quality control has been presented and recommendations
have been made to enhance the case study approach. The next chapter concludes the current
research.

76

CHAPTER 5

Conclusions and
Recommendations

5.1 Conclusion

he evolution and development of quality control started and spanned the entire
twentieth century. The early 1990s saw all the control concepts that had emerged
becoming an integral part of managerial approach under the name Total Quality

Management (TQM).
The word quality in the term TQM in the manufacturing field has been broadened to include
all aspects that affect quality as an output, quality to satisfy customer, and quality as an
organisational structure and performance. Hence, all activities encompassing engineering,
manufacturing and marketing are implied in the term quality. In addition, quality and
reliability of the product itself as well as the impact on the environment and society is part of
the broad meaning of quality. Moreover, the quality of an organisational structure and

performance is an essential component of quality as well. Finally, quality as an output must


be continuously satisfying to the customer.
As such, TQM is all the managerial arrangement and activities necessary to achieve the broad
meaning of quality. TQM is a system. This implies that having the system components,
mechanisms and system objectives. TQMs objective is to maintain and improve quality
standards and customer satisfaction. That, according to the TQM philosophy, leads to
achieving business success and improve an organisations competitive position.
On the other hand, TQM system components are the inherent managerial elements of quality
planning, quality control and quality improvement.

77

TQM is an integral part of the entire organisations system with which an organisation may
achieve and improve its business objectives. However, management should make certain
arrangements to accommodate TQM requirements some of which are: changing the
organisations structure and culture, establishing new infrastructure and conducting an
extensive training for the entire hierarchy. Thereupon, TQM may assure a quality product by
integrating quality of all aspects within the business environment, which includes quality of
marketing, engineering, manufacturing and administration throughout the entire supplycustomer chain.

Therefore, management adopting the TQM approach should know that a quality product can
be achieved by the implementation of the comprehensive meaning of quality, broadly,
throughout the organisation. Training is of utmost importance in the entire hierarchy of the
organisation. In addition, all employees should participate in managing quality, hence,
authority should be given accordingly. Furthermore, it is of necessity for management
adopting a TQM programme to embrace continuous improvement as a normal way of doing
business. Finally, quality and customer satisfaction are the top priorities and focal points
when carrying out all business processes.

Quality control is the implementation of the whole PDCA control cycle where the planning
step starts with the existence of a problem involved or to prevent a potential problem from
occurring. The outcomes of this step are the determination of an objective(s) of conducting
the quality control, and to design a process that accomplishes that objective(s). The Do step
is for carrying out the control plan. However, it also involves all preparations necessary to
conduct the control plan such as: engaging in education and training and to provide facilities
needed for that purpose.
The check step is accomplished by evaluating the actual performance and comparing actual
performance to quality control objectives. If a deviation is found, either eliminating the root
cause of the problem or adjusting the work process constitutes corrective action.

Practically, quality control is responsible for transforming quality planning and quality
improvement outcomes into daily routine work, which is controlled by carrying out the
PDCA, cycle continuously. This in turn may result in achieving the organisations continuous
small steps of improvement.
78

Ultimately, quality control aims at achieving a quality product and customer satisfaction.
Knowing that quality is a function of all activities throughout the organisation, quality control
as such is concerned with all activities throughout the organisation as well. Therefore, quality
control is a managerial activity that starts with the identification of customer needs and ends
only when the customer is fully satisfied.

Business activities are better controlled when conducted in the form of processes. The
process is controlled by the systematic way of going around the PDCA cycle. However, tools
and techniques are needed to conduct such control. Examples of which are the use of
Statistical Process Control (SPC), Root Cause Analysis (RCA) and the Feedback Loop.

When the management of an organisation embarks on a quality control programme, it should


realise that quality control is a comprehensive system where inspection is only part of it and
there is a control step in all major quality management activities. In addition, the process
itself as well as the process output should be controlled. Moreover, SPC techniques are a
powerful means that may provide management with facts which in turn form the right basis
for conducting an effective quality control.

5.2 Recommendations for Future Research


It was attempted via this research to present fundamental aspects of TQM, the meaning of
quality and the essence and mechanism of quality control. However, the research does not
discuss in detail how that may influence the organisational structure and what are the
organisational

structures

requirements

that

would

effectively

accommodate

the

consequences a of quality management system. In particular the present research has pointed
out that:

Quality control starts with identifying customer needs, and ends only when customer is
fully satisfied.

Quality control is concerned with all activities throughout the organisation, and

Quality control is a job of everyone within the organisation.

So, the question of how all these may influence the organisational structure is one which
requires more detailed research and may form the agenda of further studies beyond the
present one.

79

Bibliography

ABC Steel. 2002. Business System Manual. ABC Steel: Johannesburg (Unpublished inhouse publication)
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Quality Improvement, St. Lucie Press: Delray Beach, Florida. 1st Ed.
Berg, D.J. 2000. The Implementation of Quality Standards in Development Organisation
(Unpublished dissertation). RAU: Johannesburg.
Ceronio, S.F. 1996. Achieving Total Quality Management in a South African Manufacturing
Environment. (Unpublished PhD thesis) Johannesburg: RAU.
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82

Appendix A
The ISO 9000 Family
STANDARDS AND GUIDELINES AND THEIR PURPOSE
Standards and Guidelines
Purpose
ISO 9000:2000, Quality management systems Fundamentals and vocabulary

ISO 9001:2000, Quality management systems Requirements

Establishes a starting point for understanding the


standards and defines the fundamental terms and
definitions used in the ISO 9000 family which you need
to avoid misunderstandings in their use.
This is the requirement standard you use to assess your
ability to meet customer and applicable regulatory
requirements and thereby address customer satisfaction.
It is now the only standard in the ISO 9000 family
against which third-party certification can be carried.

ISO 9004:2000, Quality management systems Guidelines for performance improvements

ISO 19011, Guidelines on Quality and/or


Environmental Management Systems Auditing
(currently under development)
ISO 10005:1995, Quality management Guidelines for quality plans
ISO 10006:1997, Quality management Guidelines to quality in project management
ISO 10007:1995, Quality management Guidelines for configuration management
ISO/DIS 10012, Quality assurance
requirements for measuring equipment - Part 1:
Metrological confirmation system for
measuring equipment
ISO 10012-2:1997, Quality assurance for
measuring equipment - Part 2: Guidelines for
control of measurement of processes
ISO 10013:1995, Guidelines for developing
quality manuals
ISO/TR 10014:1998, Guidelines for managing
the economics of quality
ISO 10015:1999, Quality management Guidelines for training
ISO/TS 16949:1999, Quality systems Automotive suppliers - Particular requirements
for the application of ISO 9001:1994

This guideline standard provides guidance for continual


improvement of your quality management system to
benefit all parties through sustained customer
satisfaction.
Provides you with guidelines for verifying the system's
ability to achieve defined quality objectives. You can
use this standard internally or for auditing your
suppliers.
Provides guidelines to assist in the preparation, review,
acceptance and revision of quality plans.
Guidelines to help you ensure the quality of both the
project processes and the project products.
Gives you guidelines to ensure that a complex product
continues to function when components are changed
individually.
Give you guidelines on the main features of a calibration
system to ensure that measurements are made with the
intended accuracy.
Provides supplementary guidance on the application of
statistical process control when this is appropriate for
achieving the objectives of Part 1.
Provides guidelines for the development, and
maintenance of quality manuals, tailored to your specific
needs.
Provides guidance on how to achieve economic benefits
from the application of quality management.
Provides guidance on the development, implementation,
maintenance and improvement of strategies and systems
for training that affects the quality of products.
Sector specific guidance to the application of ISO 9001
in the automotive industry.

83

Appendix B

The Malcolm Baldridge National Quality Programme

CRITERIA FOR PERFORMANCE EXCELLENCE

2002 Categories/Items
1.0 Leadership
1.1 Organizational Leadership
1.2 Public Responsibility and Citizenship
2.0 Strategic Planning
2.1 Strategy Development
2.2 Strategy Deployment
3.0 Customer and Market Focus
3.1 Customer and Market Knowledge
3.2 Customer Relationships and Satisfaction
4.0 Information and Analysis
4.1 Measurement and Analysis of Organizational Performance
4.2 Information Management
5.0 Human Resource Focus
5.1 Work Systems
5.2 Employee Education, Training, and Development
5.3 Employee Well-Being and Satisfaction
6.0 Process Management
6.1 Product and Service Processes
6.2 Business Processes
6.3 Support Processes
7.0. Business Results
7.1 Customer-Focused Results
7.2 Financial and Market Results
7.3 Human Resource Results
7.4 Organisational Effectiveness Results
TOAL POINTS
Source: (NIST, 2002)

84

Appendix C
The Deming Application Prize Checklist
1. Policies (Hoshin)
(1) Quality and quality control policies and their place in overall business
management.
(2) Clarity of policies (targets and priority measures)
(3) Methods and processes for establishing policies
(4) Relationship of policies to long - and short - term plans
(5) Communication (deployment) of policies, and grasp and management of achieving policies
(6) Executives and managers leadership
2. Organization
(l) Appropriateness of the organizational structure for quality control and status of employee
involvement
(2) Clarity of authority and responsibility
(3) Status of interdepartmental coordination
(4) Status of committee and project team activities
(5) Status of staff activities
(6) Relationships with associated companies (group companies, vendors, contractors, sales
companies, etc.)
3. Information
(1) Appropriateness of collecting and communicating external information
(2) Appropriateness of collecting and communicating internal information
(3) Status of applying statistical techniques to data analysis
(4) Appropriateness of information retention
(5) Status of utilizing information
(6) Status of utilizing computers for data processing
4. Standardization
(1) Appropriateness of the system of standards
(2) Procedures for establishing, revising and abolishing standards
(3) Actual performance in establishing, revising and abolishing standards
(4) Contents of standards
(5) Status of utilizing and adhering to standards
(6) Status of systematically developing, accumulating, handing down and utilizing technologies
5. Human Resources
(1) Education and training plans and their development and results utilization
(2) Status of quality consciousness, consciousness of managing jobs, and understanding of quality
control
(3) Status of supporting and motivating self-development and self-realization
(4) Status of understanding and utilizing statistical concepts and methods
(5) Status of QC circle development and improvement suggestions
(6) Status of supporting the development of human resources in associated companies
6. Quality Assurance
(1) Status of managing the quality assurance activities system
(2) Status of quality control diagnosis
(3) Status of new product and technology development (including quality analysis, quality
deployment and design review activities)
(4) Status of process control
(5) Status of process analysis and process improvement (including process capability studies)

85

(6)
(7)
(8)
(9)
(10)
(11)
(12)

Status of inspection, quality evaluation and quality audit


Status of managing production equipment, measuring instruments and vendors
Status of packaging, storage, transportation, sales and service activities
Grasping and responding to product usage, disposal, recovery and recycling
Status of quality assurance
Grasping of the status of customer satisfaction
Status of assuring reliability, safety, product liability and environmental protection

7. Maintenance
(1) Rotation of management (PDCA) cycle control activities
(2) Methods for determining control items and their levels
(3) In-control situations (status of utilizing control charts and other tools)
(4) Status of taking temporary and permanent measures
(5) Status of operating management systems for cost, quantity, delivery, etc.
(6) Relationship of quality assurance system to other operating management systems
8. Improvement
(1) Methods of selecting themes (important activities problems and priority issues)
(2) Linkage of analytical methods and intrinsic technology
(3) Status of utilizing statistical methods for analysis
(4) Utilization of analysis results
(5) Status of confirming improvement results and transferring them to maintenance/control
activities
(6) Contribution of QC circle activities
9. Effects
(1) Tangible effects (such as quality, delivery, cost, profit, safety and environment)
(2) Intangible effects
(3) Methods for measuring and grasping effects
(4) Customer satisfaction and employee satisfaction
(5) Influence on associated companies
(6) Influence on local and international communities
10. Future Plans
(1) Status of grasping current situations
(2) Future plans for improving problems
(3) Projection of changes in social environment and customer requirements and future plans based
on these projected changes
(4) Relationships among management philosophy, vision and long-term plans
(5) Continuity of quality control activities
(6) Concreteness of future plans
(Excerpted from "1996 The Deming Prize Guide for Overseas Companies")

86

APPENDIX D
South African Excellence Model: Criteria For Performance Excellence
Criteria

Description

1. Leadership

How the behaviour and actions of the executive


team and all other leaders inspire, support and
promote a culture of Excellence.

2. Policy and Strategy

How the organisation formulates, deploys, reviews


and turns policy and strategy into plans and
actions.

3. Customer and Market Focus

How the organisation determines the needs,


requirements and expectations; enhances
relationships and determines satisfaction of
customers and markets.

4. People Management

How the organisation develops and releases the full


potential of its people.

5. Resources and Information

How the organisation manages and uses resources

Management

and information effectively and efficiently.

6. Processes

How the organisation identifies, manages, reviews


and improves its processes.

7. Impact on Society

What the organisation is achieving in satisfying the


needs and expectations of the local, national and
international community at large.

8. Customer Satisfaction

What the organisation is achieving in relation to


the satisfaction of its external customers.

9. People Satisfaction

What the organisation is achieving in relation to


the satisfaction of its people.

10. Supplier and Partnership

What the organisation is achieving in relation to

Performance

the management of supplier and partnering


processes.

11. Business Results

What the organisation is achieving in relation to its


planned business objectives and in satisfying the
needs and expectations of everyone with a
financial interest or other stake in the organisation.

http://www.saef.co.za/awardf.html
87

Appendix E

Work Instruction: Receipt Inspection (ABC Steel, 2002: WI/20)

88

Appendix F

Work Instruction: Request for Fabrication Inspection & Structural Steel Inspection
(ABC Steel, 2002: WI/21)

89

Appendix G

Work Instruction: Request for Fabrication Inspection Heavy Bay


(ABC Steel, 2002: WI/22)

90

ContactDetails:

AmmarAlSaketcanbereachedatthefollowingemailaddress:

ammar.alsaket@gmail.com

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