QUALITY MANAGEMENT

QUALITY
 Quality is the totality of features and
characteristics of a product or service that
bear on its ability to satisfy stated and
implied needs (ISO definition)
 Stated Need : Contractual Requirement
 Implied Needs : To be identified and defined by the
producer based on understanding
of the system.
 QUALITY
 The totality of features and characteristics of a
product that bear on its ability to satisfy a given
need (American Society for Quality)
 The total composite product and service
characteristics of marketing, engineering,
manufacturing and maintenance through which
the product and service in use will meet
expectations of the customer (Armand V.
Feigenbaum).
 QUALITY PHILOSOPHIES
• CONFORMANCE TO REQUIREMENTS – PHILIPS
CROSBY 
• FITNESS FOR USE – DR. JOSEPH JURANN
• NEVER-ENDING IMPROVEMENT – DR. EDWARD
DEMING
 QUALITY MEANS
 CONSISTENTLY MEETING AND IDENTIFYING
CUSTOMER NEEDS IN TERMS OF:
REQUIREMENTS
COST
DELIVERY SCHEDULE
SERVICE.
 WHY QUALITY
Customer wants
• All stated and implied requirements met
• Defect free product
• On-time delivery
• Value for money
Organisation wants
• Increase in productivity
• Increase in Customer Satisfaction
•Better hospital reputation.
 WHY QUALITY
 Employee wants
 Clear understanding of roles and
responsibilities
 Appropriate training for fulfilling the role
expectation
 Clear guidelines for effort, cost and schedules
 A yardstick for performance evaluation
 Clear communication with the customer
 Better work-life balance.
 CHANGING VIEWS OF QUALITY
PAST PRESENT
•Quality is the •Quality is everyone’s
responsibility of responsibility, including
workers and direct management, workers,
labour employees the indirect labour force
working on the and the overhead staff
product
•Defects should be •Defects should be
hidden from the highlighted and
customers and brought to the surface
management for corrective action..
 CHANGING VIEWS OF QUALITY
PAST PRESENT
•Identification of •Identification of quality
quality problems lead problems lead to
to blame, faulty improvement in quality
justification and
excuses
•Defects are caused •Defects are caused by
mainly by the people processes

•Increased quality will •Improved quality

increase project costs reduces overall project
costs..
 CHANGING VIEWS OF QUALITY
PAST PRESENT
•Quality is internally •Quality is customer
focussed focused

•Quality will not occur •People want to

without close produce quality
supervision of people products

•Quality is inspected at •Quality is built in to the

the end of the product right from the
production cycle initial phase.
 SHIFT IN FOCUS
QUALITY CONTROL

QUALITY ASSURANCE

TOTAL QUALITY MANAGEMENT .

 QUALITY CONTROL
Part of quality management focussed
on fulfilling quality requirements
Process by which product quality is
compared against standards and action
is taken if there is nonconformance
Involves detecting and fixing defects
(management by outputs)..
 QUALITY CONTROL
Relates to a product or service
Verifies whether specific attributes are
in or not in a particular product or
service
Identifies defects with the purpose of
removing defects.
 QUALITY ASSURANCE
 Part of quality management focussed on
providing confidence that quality requirements
will be fulfilled
 Set of planned and systematic activities to
provide confidence that products and services
will conform to specified requirements and
meets user needs
 Involves preventing defects (management by inputs)..
 QUALITY ASSURANCE
 Helps establish processes
 Sets up measurement programs to evaluate
processes
 Identifies weaknesses in a process and improves
them
 Primarily a management responsibility,
performed as staff function.
 LEARNING AND TQM

Learning

Process Improvement

Quality Improvement

Customer Shareholder Employee

Satisfaction Satisfaction Satisfaction
 TOTAL QUALITY
MANAGEMENT :
TQM stands for management approach of an
organisation, centred on quality, based on the
participation of all its members and aiming at
long term success through customer
satisfaction and benefits to all of the
organisation and to the society.
 Components of Quality

It has four basic components-----

1.Put customers first

2. Make Continuous Improvement
3. Aim for zero defects
4. Training and development
 PUT CUSTOMER FIRST
• MARKET RESEARCH TO
DISCOVER CONSUMER
NEED
• LOOKING AFTER CUSTOMER
INTERNAL AND EXTERNAL
• EFFECTIVE CUSTOMER CARE
SYSTEM
• ENSURING ALL THE SERVICE
STANDARD ARE MET
• LISTENING TO CUSTOMER
VIEW AND OPINIONS
 MAKE CONTINOUS IMPROVEMENT

• THERE ARE NO LIMITS TO

CONTINOUS
IMPROVEMENT
• CONTINOUS STRIVE TO
IMPROVE THEIR PRODUCT
SERVICE AND INCREASE THE
QUALITY STANDARD
• CHANGE IN CUSTOMER
NEED AND EXPECTATION
 AIM FOR ZERO DEFECT
• DEFECT ARE EXPENSIVE
BECAUSE THEY WILL LOWER
THE CUSTOMER
CONFIDENCE IN THE
PRODUCT
• ALSO IT IS MORE EXPENSIVE
TO RECTIFY DEFECT THAN IT
IS TO PREVENT THEM IN
FIRST PLACE
• DEFECT CAN BE ACHIEVED
THROUGH QUALITY
ASSURANCE QUALITY
CONTOL
 TRINING AND DEVELOPMENT
• AN ORGANIZATION WILL
NEED TO TRAIN THEIR
EMPLOYEE TO ENSURE THAT
THEY UNDESTAND THE
PRINCIPLES OF TQM
• EMLOYEE WILL NEED TO
UNDERSTAND HOW TQM IS
TO BE ACHIEVED AND
MAINTAIN
• UNLESS EACH EMPLOYEE
ACCEPTS AND BELIVE IN TQM
IT WILL BE DIFFICULT FOR THE
ORGANIZATION TO PRACTICE
TQM
 Plan-Do-Check-Act
(PDCA) Circle
Plan

Act Do
(As Needed)

Check
(Analyze)
 Plan

A plan can be to initiate a new

process or improve an existing
one. it should be based upon
customer needs, and resolve
to more effectively fulfill the
organization’s mission
 DO

• Implement the change on a

small scale and measure the
effects
 Check

• Review the gathered data to determine if the

planned and implemented change has created
the quality improvement intended.
 Act

• Take action, either to

implement the change or
change variables to see if
the process can be made
more effective, or
• “Standardize” the new,
successful process.
 Never-Ending Process

• A never-ending process, the

PDCA shouldn’t be
considered a constant
burden but rather an
indication that the
organization is still
breathing, still transforming
to meet the ever-changing
needs of the customer.
 Deming’s Chain Reaction

Improve Quality
Provide jobs and Cost decreases because of
more jobs less rework, fewer
mistakes, fewer delays,
snags, better use of
machine time and
Stay in business materials

Productivity improves
Capture the market with better
quality and lower price
 W. Edwards Deming’s 14 Points

•Create constancy of purpose towards improvement of

product and services.
•Adopt the new philosophy. We can no longer live with
commonly accepted levels of delays, mistakes, defective
workmanship.
•Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
 W. Edwards Deming’s 14 Points

•Find problems. It is management’s job to work

continually on the system.
•Institute modern methods of training on the job.
•Institute modern methods of supervision of production
workers. The responsibility of foremen must be changed
from numbers to quality.
•Drive out fear that everyone may work effectively for
the company.
 W. Edwards Deming’s 14 Points

•Break down barriers between departments.

•Eliminate numerical goals, posters and slogans for the
workforce asking for new levels of productivity without
providing methods.
•Eliminate work standards that prescribe numerical
quotas.
•Remove barriers that stand between the hourly worker
and his right to pride of workmanship.
 W. Edwards Deming’s 14 Points

•Institute a vigorous programme of education and

retraining.
•Create a structure in top management that will push
everyday on the above 13 points.
 THE TWO QUALITY GAPS
 Producer gap
 Difference between specified requirements and
product delivered
 Can be filled by having right processes to
transform customers requirements into a product
 Consistency in production.
 THE TWO QUALITY GAPS

 Customer gap
 Difference between customers requirements
and requirements understood by the producer
 Gap can be avoided by:
Close interaction with the customer
Spending sufficient time in the requirement phase
Using techniques like QFD.
 QUALITY CHALLENGE
 Pre-conceived notions about quality
 Defect free level can not be achieved
 Some defects will always be there (Acceptable
Quality Level - AQL)
 Higher the quality higher the cost
 Quality is documentation
 Quality is standardization leading to
bureaucracy
 Use of standards will kill creativity.
 COST OF QUALITY
 Failure Costs
 non-conformance to requirements
 Appraisal Costs
 evaluation of conformance to requirements
 Prevention Costs
 Training & education, Configuration management,
Planning, Standards, Purchase of tools. Project/Procedure
reviews, Metrics Collection and Analysis, Design Reviews,
Market Analysis, Risk Analysis , Defect Prevention, Defect
analysis, Quality tracking
 VISIBLE AND HIDDEN COSTS
•Scrap
•Rework Visible costs
•Warranty costs

• Conversion efficiency of materials

• Inadequate resource utilization

• Excessive use of material

Hidden Costs • Cost of redesign and re-inspection

• Cost of resolving customer problems

• Lost customers / Goodwill

• High inventory
 CORE COMPONENTS OF QUALITY
quality is based on customer satisfaction
(preferably delight)
the organization must define quality
before it can be achieved
management must lead the organization
through any improvement efforts
continuous process improvement is very
necessary.
 THE CUSTOMER IS KING
Customer is the most important person
in any process
Organization must be dedicated to
EXCEEDING customer satisfaction
Focus on:
External customer
Internal customer.
 QUALITY-PRODUCTIVITY
 Increase in quality can directly lead to
increase in productivity:
 the ‘hidden factory’ produces sorting, scrap,
rework, repair, customer complaints
 effective way to improve productivity:
reduce scrap and rework by improving
process
 quality improvement lead to reduced costs.
MANAGEMENT INVOLVEMENT
 Consistent, visible interest, commitment and
support
 Establish Quality Policy, Quality Objectives and
communicate to all employees
 Provide suitable resources - personnel,
equipment, materials
 Establish responsibilities and authorities;
communicate to all concerned
 Reviews of TQM, corrective actions,
preventive actions.
 EMPLOYEE INVOLVEMENT
Cornerstone of quality program
Proper communication between
management and employees
Employees participate and contribute
to improvement of processes
Employees share the responsibility for
innovation and quality improvement.
QUALITY QUALITY
CULTURE IS: CULTURE IS NOT:
Listening to customers Assuming you know the
and determining their customer’s requirements
requirements
Identifying cost of Overlooking hidden
quality and focusing costs of poor quality
on prevention
Doing things right the Doing things again to
first time make them right
Continuous process One-time fix..
improvement
QUALITY QUALITY
CULTURE IS: CULTURE IS NOT:
Taking ownership at Assigning
all levels responsibility to one
department
Demonstrating Assigning
leadership and responsibility for
commitment quality to others
Concentrating on Depending only on
defect prevention defect detection
Involving suppliers in Ignoring suppliers.
quality improvement
 CUSTOMER RESPONSES
 DISSATISFIED CUSTOMER (PERFORMANCE <
EXPECTATION)
 SATISFIED CUSTOMER
(PERFORMANCE = EXPECTATION)
 DELIGHTED CUSTOMER
(PERFORMANCE > EXPECTATION).
DISSATISFIED CUSTOMER:
(PERFORMANCE < EXPECTATION)
» Customer will go to competitor
» May even have a negative influence on
other potential customers
» Extremely difficult, at times impossible to
get back such customer.
SATISFIED CUSTOMER:
(PERFORMANCE = EXPECTATION)
» Customer is retained as long as he has
no alternative
» May not have a positive influence on
other potential customers
» Some effort required to get repeat
business from such customer.
DELIGHTED CUSTOMER:
(PERFORMANCE > EXPECTATION)
» A very loyal customer, is retained even if
he has an alternative
» May even have a positive influence on
other potential customers
» Very little / no effort required to get
repeat business from such customer.
 BENEFITS OF TQM
(To the Organisation)

Clear direction via policy and objectives

Improved and consistent product quality
Cost reduction by elimination of waste
and re-work
Transparent system through records..
 BENEFITS OF TQM
(To the Organisation)
Improved quality image and credibility
Reduction in multiple customer audits
Basis for process improvements
Better market opportunities.
 BENEFITS OF TQM
(To Employees)
Clear responsibilities and authorities

Clear procedures and instructions

Increased confidence and morale

Better communication and information

Improved training and motivation.

 BENEFITS OF TQM
(To Customers)
Greater confidence that requirements
can be met

Better understanding of the supplier

Reduced inspections of final products

Quality is a Journey,
not a Destination