Quality in Operations

Manufacturing &
Service Industry

Topics
1. Definition of Quality
2. Special Concepts Related to Quality
3. The Quality GURUs
4. Cost of Quality
5. The 7 QC Tools

Define Quality ?
What is your definition of
Quality ?

Why 2 different quality products

from 2 different societies ???
Indian Car

German car

Parks Management in 2 Cities :

Quality is a State of Mind

Differences in Healthcare
Infrastructure : 2 Hospital Wards

Healthcare Infrastructure :
Patient Reception

Healthcare Infrastructure :
Patient Reception

Definition of Quality in
Business
It is a measure of excellence or a

state of being free from defects,

deficiencies, and significant
variations, brought about by the
strict and consistent adherence to
measurable and verifiable standards
to achieve uniformity of output that
satisfies specific customer
requirements.

Formal Definitions
1.

What is Quality?

Degree to which a set of inherent

characteristics fulfills requirements
I.

(Clause 3.1.1 of ISO 9000: 2005)

II.

Fitness for intended use

2. What is QMS (Quality Management

System) ? system to direct
management
and control an organization with
regard to quality. (Clause 3.2.3 of
ISO 9000: 2005))

Special Definition of Terminologies

in Quality Management
(i) Concept of CUSTOMER has

evolved.
(ii) Quality is a JOURNEY not a

destination.
(iii) Evolution of the concept of
Quality
Control Function.

Internal and External

Customers

Quality is a Journey

KAIZEN ????
What is it ????

Kaizen :What it means to the

Japanese

Kaizen Just Do It!

Kaizen means continuous improvement.
Moreover, Kaizen means continuing

improvement in personal life, home life,

social life, and working life.
When applied to the workplace Kaizen
means continuing improvement involving
everyone managers and workers alike.
- Mr. Masaaki Imai (1986)

Evolution of Quality Focus

Stage 1

Quality Control

Quality
Assurance
Quality
Management

Stage 2

Department

Program

Stage 3

System

QMS Principles
1) Customer Focus
2) Leadership
3) Involvement of people
4) Process approach (PDCA)
5)Systems approach to management
6)Continual improvement
7)Factual approach to decision making
8)Mutually beneficial supplier relationships (Win Win)

GURUS of Quality
Shewhart
Deming
Juran
Ishikawa
Pareto
Feigenbaum
Crosby
Taguchi

Walter Shewhart (18911967)

American Professor known to be the

pioneer in the field of Quality in

Manufacturing.
The teacher of Deming (Guru of

Gurus)
Known for developing:

Statistical
Process
Control

Statistical Process Control

(SPC)

Edward Deming (19001993)

Known as the Father of Quality

Evolution
American born, but worked and

made his mark in Japan. Known for:

-Demings 14 points
-PDCA Cycle (Deming Wheel)
-Most prestigious quality award
named after him

Dr. Edward Deming

He dispelled the MYTH that it
costs more to make better
quality products. He proved that
a high-quality process is less costly
than a low quality one. By making
the product properly the first time,
we save substantially by
eliminating unnecessary labor,
scrap, or re-work.

Demings 14 Points

1. Create constancy of purpose for improvement

2. Adopt a new philosophy
3. Cease dependence on mass inspection
4. Do not award business on price alone
5. Work continually on the system of production and service
6. Institute modern methods of training
7. Institute modern methods of supervision of workers
8. Drive out fear
9. Break down barriers between departments
10. Eliminate slogans, exhortations, and targets for the work force
11. Eliminate numerical quotas
12. Remove barriers preventing pride of workmanship
13. Institute a vigorous program of education and retraining
14. Take action to accomplish the transformation

Deming Wheel: First Adopted in

Japan by Toyota

Break up of the Deming Wheel

(PDCA)

PDCA

A3

C3
C2

A
2

P4
P3

D3
A
1
D2

P2

C1
D1

P1

P : Plan
D : Do
C :
Check
A :
Action
P

How Deming Transformed Organizations in

Japan
From

To

Motivation through fear and loyalty

Motivation through shared vision

Attitude: Its their problem

Ownership of every problem

affecting the customer

Attitude: the way weve always done

it

Continuous improvement

Decisions based on assumptions/

judgment calls

Decisions based on data and facts

Everything begins and ends with

management

Everything begins and ends with

customers

Crisis management and recovery

Doing it right the first time

Choosing participative OR scientific

management

Choosing scientific AND

participative management

Kaoru Ishikawa (19151989)

Mostly noted for developing the

Cause and Effect Diagram aka

Ishikawa Diagram or Fish-Bone
Diagram
Used to Identify Root Causes of

Problems
Also introduced the concept of

Quality Circles

Ishikawas Fish-bone or Cause

& Effect Diagram

Joseph Juran (1904-2008)

Known for:
Juran Trilogy
Cost of
Quality
Defined
quality as
fitness for
intended use

Italian engineer

Vilfredo Pareto

known for
developing the
Pareto
Diagram
His theory was
based on the
findings that
80% problems
were caused by
20% reasons,
hence, priority
should be given
after finding this

Pareto Diagram

....more GURUS of Quality

Armand Feigenbaum (followed up

on Jurans ideas)
Philip Crosby (He preached that
quality is Free & that defects have
costly consequences)
Genichi Taguchi (He expanded the
concept of cost of quality from firmlevel to include whole of society)

Cost of Quality
1. Cost of Prevention
2. Cost of

Detection/Appraisal/Inspection
3. Cost of Failure :

Failure

(a) Internal Failure

(b) External

New Paradigms in Quality

Management
1. Total Quality Management: is an integrative philosophy

of management for continuously improving the quality of

products and processes. In a TQM effort, all members of
an organization participate in improving processes,
products, services and the culture in which they work.
TQM requires the involvement of management,

workforce, suppliers, and customers, in order to

meet or exceed customer expectations.
2. Six Sigma

( 6 ):

Developed by Motorola, A six

sigma process is one in which 99.9999966% of the
products manufactured are statistically expected to be
free of defects (i.e. max. 3.4 failures per million). It is
a management approach that requires a highly trained
set of people to implement it.

Definition:
Total Quality Management
Total Quality Management (TQM) and Six Sigma

(6) are sweeping culture change efforts to

position a company for greater customer
satisfaction, profitability and competitiveness.
TQM may be defined as managing the entire
organization so that it excels on all dimensions
of products and services that are important to
the customer.
We often think of features when we think of the
quality of a product or service; TQM is about
conformance quality, not features.

International Quality
Recognition
Quality Recognition Certifications:

(a) ISO 9000 Series (process quality

standards)
(b) Malcom Baldridge National Quality
Award (MBNQA)-USA
(c) EFQM Excellence Model (Europe)
(d) Deming Prize (Japan)
(e) ISO 14000 Series (environmental
compliance standards)

Seven Basic Quality Tools To

improve Process Quality
Scatter Diagrams: Plot data on a chart no attempt is

made to classify the data or massage it

Pareto Charts: Organize data on a histogram based on
frequency from most prevalent to least. Help identify
major causes or occurrences (80:20 rule)
Check Sheets: Easy way to count frequency of
occurrence by front line workers
Histograms: Categorize data is cells and plot (see if any
patterns emerge)
Run Charts: Plot data as a function of time
Cause and effects Charts: fishbone diagrams are used
to identify the root causes of a problem
Control Charts: are statistical tools used to determine if
the variation in results is caused by common or special
events

Assignment : Project Work for MSC 301

Please form a QCC (max of 5 students per QC
Circle) and take the following steps:
I.
Select a Leader and a Deputy Leader
II.
Name the QCC
III. Take up problem(s) which may be within the
campus or outside
IV. Make effort to solve the problem(s) basing on
the outcome of brainstorming and using TQM /
QC Tools
V. Please make a presentation of your QCC
recommended solution