WORLD CLASS QUALITY MANAGEMENT

DEFINITION
Goods,services and processes that are ranked

by customers and industry-experts to be among the best of the best. This denotes standard-setting excellence in terms of design, performance, quality, customer satisfaction and value when compared with all similar items from anywhere in the world.

IMPORTANCE OF QUALITY
Quality is meeting or exceeding customer

satisfaction.
No quality->no sales->No sales->no profit->

No profit->no jobs

QUALITY IN PRODUCTION SYSTEM

3 Levels of Quality
Organizational level-Seek customer inputs on

regular basis and meeting its requirements Process level-managers try to optimize the activities of various department under their control Performer or Job level-Output should be met based on standards such as accuracy, completeness,innovations,Timeliness and cost along with cutomers requirements

THE COST OF QUALITY

1)Prevention cost: Cost of preparing an overall plan quality manuals procedures. 2)Appraisal cost: Incoming raw materials inspection Process inspection Final goods inspection quality laboratories

THE COST OF QUALITY(cont..)

3)Internal failure cost: Scrap Rework downgrading Retest and downtime 4)External failure cost: Warranty returned merchandise Complaints Allowance

Reducing cost of Quality

QUALITY CONTROL
QC denotes all those activities which are

directed to maintaining and improving quality. QC involves, a)Setting of Quality Targets b)Appraisal of conformance c)Taking corrective action incase of deviation d)Planning for improvement in quality

Objectives of quality control

Minimum scrap,rework and other losses Reduced cost of materials and labour Uniformity of quality and reliability of products which increases sales turnovers Reduced variability and thereby higher quality of products Reduced inspection cost Reduced customer complaints Higher operating efficiency Better utilization of all resources Higher productivity and improved profits.

Quality Assurance
Any action that directed towards providing

consumers with product of appropriate quality

Activities involved in quality assurance

Reliability engineering-to ensure that the

design will have an adequate useful life Value engineering-to ensure that the product will perform the necessary function at minimum cost Evaluation of usability-to see that product wii be convenient and safe in hands of the users Process control-to ensure that the material, processes and other inputs to the transformation process are adequate for the products

Activities involved in quality assurance(cont..)

Service assurance-to see that the customer is

adequately trained to use the products and that service parts and manuals made are available Quality feedback-to provide corrective action when field use indicates inadequate quality

Quality action cycle

TOTAL QUALITY MANAGEMENT

Definition
It is a philosophy that involve everyone in an

organization in a continual effort to improve quality and achieve customer satisfaction.

Concept of TQM
A committed and involved management to

provide long-term top-to-bottom organization support An unwavering focus on the customer, both internally and externally Effective involvement and utilization of the entire workforce Continuous improvement of the business and production process Treating suppliers as partners Establish performance measure for the processes.

Why TQM Fails?

Lack of commitment from the top management Focusing on specific technique rather than on

the system Not obtaining employee buy-in and participation Program stops with training Expecting immediate result, not a long term payoff Forcing the organization to adopt method that are not productive or compatible with its production system and personnel

Quality control
Inspection after the fact and production system Focus on consequence of poor quality Customer is purchaser Some number of defects is normal Responsibility for quality control in assigned to individual or departments Improving quality increases cost

Total quality Management

Design quality into the product Focus on identifying and eliminating causes of poor quality Customer is user Goal is zero defects Quality is the responsibility of everyone Improving quality typically pays for itself

TQM increases profitability

Sales gains
Improved responses Higher prices Improved reputation
Improved quality through TQM

Increased profits

Reduced costs
Increased productivity Lower rework and scrap cost Lower warranty costs

Process Capability
It is the ability of a production process to

meet the design specification for a product or service (or) to produce products within the desired expectation of customers It only make sense if all special causes of variation have been eliminated and the process is in the state of statistical control

Process capability index(Cp)

It assessing the relationship between the

natural variation of a process and the design specification

Cp=UTL-LTL/6sigma

Where UTL=Upper tolerance limit LTL=Lower tolerance limit

SIX SIGMA QUALITY

To be precise, Six Sigma strives for perfection

and allows for only 3.4 defects per million opportunities for each product or service transaction i.e,(99.99966%)even if the process mean shift by as much as 1.5 SD. But most companies today function at only 3 to 4 sigma and lose 10-15% of their total revenue due to defects. At 4 sigma (or 99% perfect), this still means 6,210 defects per million opportunities.

 With 0.5 sigma off-centering and 5 sigma quality With 1.0 sigma off-centering and 5.5 sigma quality.

With 1.5 sigma off-centering and 6 sigma quality

Single Minute Exchange of Dies(SMED)

JIT system concentrate on reducing the cost of setting up machines to avoid the negative aspects of producing small lot sizes. Set-up times can be reduced by: i)Locating required inventory and machine tools

closer to the operating area ii)Standardizing the set-up function of machines ii)Improving the procedure for tool preparation iii)Eliminating unnecessary machine adjustment iv)Synchronizing operator jobs v)Automating set-up procedure using computer control if it cost less than manual adjustments.

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