Chapter - 3

Quality Management Practices, Tools and Standards

Management Commitment
Should have strategic plans with long-term focus Should satisfy the customer and investor by delivering quality products Can be accomplished by having a Quality Program like TQE, TQM or Six Sigma etc. Eg. Ford Motor Company follow Total Quality Excellence program
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Total Quality Excellence (TQE)

A system that integrates all aspects of the company and its suppliers into strategic decision making on diff. functions of a company It is based on Fords vision of being a low cost producer of the highest quality products and services which provide the best customer value
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TQE Concepts, Functional Areas

Quality should be defined by customer Quality is achieved through prevention of problems and not detection Vendor-Vendee concept, (Internal and External Customer) All employees, suppliers, dealers and part of the company (Demings extended process) Quality improvement is never ending Functional Areas includes Engineering, Delivery and Commercial Performance
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TQE Contd..
Embraces the system approach Relies on partnership between manufacturer and supplier Ford developed Q101 Preferred Quality Award for suppliers Emphasize on Process control, Customer feedback and Documentation including management developed documentation for design and change control
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Total Quality Management (TQM)

Management Commitment
Must exists at all levels of the company Creates policy at top level, implements at middle level and quality mgt tools and techniques are used at operation level

Customer
Satisfying customer needs is the driving force Direct feedback using a data driven approach is the best way to identify customer needs Key principle is that are customers are both internal and external
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TQM Contd..
Customer surveys are used to find the discrepancies between expectation and satisfaction and taking measures to eliminate is called Gap Analysis Process
Vendors are part of the process Cross functional team, with authority to solve problem and improve the process Use of technical tools and techniques and management tools is necessary to improve continuously
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TQM Contd..
People
Involving employees in the decision making process (Empowerment) Ownership and motivation are necessary to make employee get a sense of pride

Communication
Open channel of communication Emphasis is on Information sharing between departments Change from role of management of coordination and control to that of coaching and caring
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TQM Contd..
Culture
Links the human element and the companys vision They are the beliefs, values, norms and rules that prevail within an company Culture should embrace a participative style of management

Vision
Tells about what company wants to be It is general and outlines the scope and purpose of organization Should be motivational and make people work towards the goal
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TQM Contd..
Mission
Derived from vision More focused and defines the areas of concentration No mention about time frame

Quality Policy
Framed by senior management, it is the companys road map Indicates what to be done, but different from procedures and instructions Eg. quality is the basic business principle at Xerox Outcome is the performance standard
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Six Sigma Quality

Developed by Motorola Uses quantitative goals, based on the measure of process variation () For a process output given by normal distribution
Mean is the measure of location of process The no. of non-conforming product will be 2700ppm (1350ppm on each tail) Assume a product with 1000 processes or parts, then the no. of defects per product will be 2.7!!! (only 7 out 100 will be defect free)
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Six Sigma Contd..

For defect free product, the process spread given by (+/3 ) has to be significantly less than that between USL and LSL Focus of Six sigma is to reduce the process variation such that the spec. limits are 6 from the mean If process is stable and remains centered, the proportion of defective will be 0.001ppm on each tail (Ideal) Even for a shifts by 1.5 from the mean, no. of defects will be 3.4ppm on each tail For the example above there will be 0.0034 defect per product and the yield will be 99.66% Requires a fundamental change in management philosophy and culture
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Quality Function Deployment (QFD)

A planning tool that focus on designing quality into a product A system that involves cross functional team and takes care of complete cycle of product development Helps to translate customer needs into technical requirements of products Called as House of Quality, Matrix product planning, Customer drive
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QFD - Advantages
Evaluates competitor from 2 perspectives Customer and Technical Used to identify the degree of improvements needed in the product and process Reduces the product development time as it reduces product redesign Improves the communication between different department
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QFD - Process
It is used to take the voice of customer and translate it into a set of product and process parameters and can be deployed through a 4-phase process
Product planning Part / Subsystem deployment Process planning Production planning

It is based on a structure called House of Quality (HOQ) Objective

Delineates the scope of the project Only one task is specified in the objective
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QFD Process (Contd..)

What
Voice of the customer, which express their needs and wants

Rating
Scale of 1 to 5 is used to give prioritize the wants (1 Least and 5 Most Important)

Customer competitive assessment

To identify the relative position of the organization w.r.t competitors for each needs Helps to identify the strength and weakness of the company and thereby close the gap
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QFD Process (Contd..)

Technical Descriptors (Hows)
All possible technical / engineering requirements are found through Brainstorming Done by a cross-functional team

Target goals
May or may not be used Uses symbols

Co-relationship matrix
Forms the roof of HOQ 4 levels of relationship strong positive, positive, negative, strong negative Used for determining the trade-off between Hows
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QFD Process (Contd..)

Technical Competitive Assessment
Similar to that of customer assessment of competitor Done by a technical staff of the company Used to set objective values for the technical descriptors

Relationship matrix
A mechanism to analyse how each technical descriptors will help in achieving What Represented by 0 to 5, where 0 is no relationship 1 low, 3 medium and 5 - High
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QFD Process (Contd..)

Absolute and relative scores are calculated, based on which prioritization of needs is done In next phase, the Hows will become What Disadvantages
Enormous amount of information must be gathered QFD process is implemented in phases and hence time consuming

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Innovative Adaptation & Performance Evaluation

Innovation
Cut costs, reduce lead time, improve productivity, save capital and human resources and hence increased revenue Do not happen very often Result in a steep increase in quality High risk strategy

Continuous Improvement
Any one such improvement takes place Happens very frequently Leads to slow and steady increase in quality Eg. Benchmarking
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Benchmarking (BM)
Practice of identifying best practices in industry and thereby setting goals to emulate them Facilitates continuous improvement Started by Xerox in the year 1970 by R.C. Camp Steps for BM differs from company to company due to different operating concerns
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Benchmarking - Requirements
Not just merely identifying best practices, it should be how practices can be adapted It needs Management commitment and should motivate employees with rewards Training is a must on process mapping, flowcharting All resources should be made available Hard and Soft systems should mesh
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Why Benchmarking?
Thorough understanding of companys own processes Identify Non Value Added activities Enable comparison of performance measures (PM) in different dimensions with spider chart Provides an effective way to manage change and also a roadmap to adapt best practices Impact of technological development Reduce cycle time, which in turn related to PM
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Quality Audit
To examine the effectiveness of management control programs and also to identify problems 3 parties are involved Client, Auditor and Auditee Auditor Internal and External Purpose
Suitability Quality Audit: Evaluation of Quality program against reference standard Conformity Quality Audit: Evaluation of operations, activities within the quality system w.r.t procedures
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Quality Audit Contd..

Product Audit
Assessment of final product or service on its ability to meet customer needs Involves conducting periodic test on products or obtain info. from customers Separate from decision on product acceptance or rejection and hence not part of the inspection system

Audit Quality
Influenced by independence and objectivity of the auditor Depends on being a external or internal auditor For suitability audit, external is most preferable

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Quality Audit Contd..

Types
System Audit
Most extensive Evaluation of the quality program documentation w.r.t reference standard Includes evaluation of activities and operations that are followed to meet the desired quality objectives

Process Audit
In depth evaluation of one or more processes Takes less time More focussed and less costly Used generally in process industries like chemical industries Done when there is need for process improvement or when there is unexpected output
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Quality Audit Contd..

Methods
Location oriented
All functions are audited in that particular location Examines the action and interaction of the elements in the quality program at that location and may be used to identify discrepancies between location

Function oriented
Examine and evaluate activities related to a particular element or function within a quality program at all locations Successive visits to each location is necessary to complete the audit

Utility of quality audit is derived only when remedial actions are taken
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Tools for Continuous Quality Improvement

Called as 7 QC tools For solving the problems and involves data collection, analysis, hypothesis and validation

Check sheets
A systematic record keeping or data collection Observations are recorded as they happen and reveals pattern or trends

Pareto Diagram
helps to prioritize the problem by arranging them in decreasing order of importance
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Tools for Continuous Quality Improvement Contd..

Flow charts
Shows the sequence of events Mostly used in manufacturing and service operations to describe working procedures Valuable process information can be obtained in addition to identifying problematic areas

Cause and Effect diagram

Explores possible causes of problem due to men, machine, material and method To identify root cause, each cause may be further broken down
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Tools for Continuous Quality Improvement Contd..

Histograms
Displays large amount of data that are difficult to interpret in raw form Provides summary of data and also reveals whether the process is centered, the degree of variation etc. Used to identify process capability relative to customer requirements

Scatter Plots
Shows the relationship between two variables Used as a follow up to cause and effect analysis to find whether a stated cause has impact on quality
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Tools for Continuous Quality Improvement Contd..

Control charts
Distinguishes special (assignable) causes of variation from common causes Used to monitor and control a process on a ongoing basis Plots a selected quality characteristic, found from subgroups of observations, as a function of sample number Central line on the control chart is the average value of the characteristic Two limits, UCL and LCL are used to detect whether the process goes out of control
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The Seven New Quality Tools

Affinity Diagrams Interrelationship Diagrams Tree Diagrams Matrix Diagrams Matrix Data Analysis Process Decision Program Charts Arrow Diagrams

International Standards
ISO 9000 or ANSI/ASQC Q9000 Series standards which emphasize on customer satisfaction and continuous quality improvement ISO 9004 / ANSI/ASQC Q9004
Used for internal quality assurance Guides organization in quality management system Provides guidance on the technical, administrative and human factors affecting the quality of products Emphasis - establishing functional responsibilities, assessing potential risks and benefits etc.
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International Standards Contd..

ISO 9001 - 9003 / ANSI/ASQC Q9001 - 9003
Used for external quality assurance ISO 9001: design, production, installation and servicing (Most stringent) ISO 9002: production and installation ISO 9003: final inspection and test (least stringent) Objective is to meet the purchasers needs, show management that quality is achieved and provide confidence to the purchaser that delivered product or service is of high quality
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International Standards Contd..

Quality Policy
Overall quality intentions and direction of an company Expressed by top management Forms a part of corporate strategy

Quality Management
Aspect of overall management function that determines and implement quality policy Includes strategic planning, allocation of resources, quality planning, evaluation, operation etc. Responsibility of the top management
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International Standards Contd..

Quality System
Organizational structure, responsibilities, procedures, processes and resources for implementing quality mgt. Should be only meet to the quality objectives

Quality Control
Operational techniques & activities used to fulfil the requirements of quality Focus of activity is to monitor a process and eliminate the cause of unsatisfactory performance

Quality Assurance
All those planned & systematic actions that provide a confidence that product will satisfy the given requirements of quality Serves as a management tool
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Features of ISO 9001(Quality System)

It is a standard specifying quality system requirements, between vendor and vendee to show the vendors capability to design and supply the product Aimed at preventing nonconformity at all stages from design to servicing Management Responsibility
Should define a quality policy that gives goal and objectives for attaining quality Should provide org. structure, responsibility, authority, resources etc. for different activities
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Features of ISO 9001(Quality System)

Quality system principles
Must ensure product conformance to requirements Standards to be developed for: acceptability, measurement procedures, production processes, installation, test procedures, quality plans, quality manuals etc.

Contract Review
Makes vendor to review each contract and ensure the requirements are adequately defined and documented
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Features of ISO 9001(Quality System)

Design Control
Establish and maintain procedures to control and verify the design for the meeting the needs Ensure that output meet the design input, conforming to regulatory requirements and identify those characteristics that are crucial and safe for proper working

Document Control
Ensures availability of latest document at all locations, where they are essential for operations Obsolete documents should be removed
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Features of ISO 9001(Quality System)

Purchasing
Vendor selection Vendor rating and certification Verification of incoming product Vendor quality survey report

Product Identification and Traceability

Procedures for identifying the product from applicable drawings and documents Traceability related to an individual product or batch, which should have a unique identification
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Features of ISO 9001(Quality System)

Process Control
To identify and plan production & installation process to operate under controlled condition Documentation of work instructions Monitoring the product and process characteristics

Product Verification
Done through inspection and testing in-process as well as final inspection Non-conforming products should be identified Final inspection should be based on quality plan Procedures and records to be maintained
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Features of ISO 9001(Quality System)

Measuring and Test Equipment
Should be appropriate and calibrated Environmental condition, handling, preservation, storage etc to be documented Scheduling of recalibration to be maintained

Corrective Action
Procedures for corrective action should be documented Analysis of processes, work operations, customer complaints etc to be done and prevent recurrence
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Features of ISO 9001(Quality System)

Post production handling function
Procedures for storage, packing and delivery Area for storage and appropriate methods for authorizing receipt and dispatch Packing and Preservation should confirm to requirements

Quality Records
Procedures for identification, collection, indexing, filing, storage, maintenance and disposition Retention time to be established
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Features of ISO 9001(Quality System)

Internal Quality Audit
Scheduling of audits Results of the audits to be documented Corrective action initiated should also be documented

Training
Procedures for identifying the training needs and appropriate records to be maintained

Servicing and Statistical Techniques

Procedures for performing servicing and use of statistical techniques for acceptability of process capability and product characteristics
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 Vision: Defines the desired or intended future state of an organization or enterprise in terms of its fundamental objective and/or strategic direction. Vision is a long term view, sometimes describing how the organization would like the world in which it operates to be. For example a charity working with the poor might have a vision statement which read "A world without poverty" Mission: Defines the fundamental purpose of an organization or an enterprise, succinctly describing why it exists and what it does to achieve its Vision

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