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
responsibility of
workers and direct
labour employees
working on the
product

Quality is everyones
responsibility, including
management, workers,
the indirect labour force
and the overhead staff

Defects should be
hidden from the
customers and
management

Defects should be
highlighted and
brought to the surface
for corrective action..

CHANGING VIEWS OF QUALITY

PAST

PRESENT

Identification of
quality problems lead
to blame, faulty
justification and
excuses

Identification of quality
problems lead to
improvement in quality

Defects are caused

mainly by the people

Defects are caused by

processes

Increased quality will

increase project costs

Improved quality
reduces overall project
costs..

CHANGING VIEWS OF QUALITY

PAST

PRESENT

Quality is internally
focussed

Quality is customer
focused

Quality will not occur

without close
supervision of people

People want to
produce quality
products

Quality is inspected at
the end of the
production cycle

Quality is built in to the

product right from the
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
Satisfaction

Shareholder
Satisfaction

Employee
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
organizations 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 shouldnt 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.

Demings Chain Reaction

Improve Quality
Cost decreases because of
less rework, fewer
mistakes, fewer delays,
snags, better use of
machine time and
materials

Provide jobs and

more jobs
Stay in business

Productivity improves
Capture the market with better
quality and lower price

W. Edwards Demings 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 Demings 14 Points

Find problems. It is managements 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 Demings 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 Demings 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
Warranty costs

Visible 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
CULTURE IS:

QUALITY
CULTURE IS NOT:

Listening to customers
and determining their
requirements
Identifying cost of
quality and focusing
on prevention
Doing things right the
first time

Assuming you know the

customers requirements

Continuous process
improvement

Overlooking hidden
costs of poor quality

Doing things again to

make them right
One-time fix..

QUALITY
CULTURE IS:

QUALITY
CULTURE IS NOT:

Taking ownership at
all levels

Assigning
responsibility to one
department
Assigning
responsibility for
quality to others
Depending only on
defect detection

Demonstrating
leadership and
commitment
Concentrating on
defect prevention
Involving suppliers in
quality improvement

Ignoring suppliers.

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