LECTURE – 4

QUALITY CONTROL TOOLS IN SERVICES

Learning objective

• To demonstrate the application of quality control tools in

service sector
5.8 PDCA cycle: Basis for quality management tools
Every organization regardless of the sector emphasize on quality improvement on
continuous basis. There is no set-rule or standard method to implement quality
improvement initiatives. Most commonly used total quality management (TQM)
tools are graphical tools which are effective in improving the quality. The
conceptual basis for implanting various tools is the Deming’s Plan-Do-Check-Act
(PDCA) cycle, also called Deming wheel. Deming wheel is a repetitive cycle of
quality improvements resulting from continuous incremental turns of the wheel to
achieve higher level of quality over time period as shown in figure 5.19.

Figure 5.19: Deming’s PDCA cycle

Plan

• Develop an in-depth understanding of problem or process to be improved by

collecting data.
• Identify the root causes of the problem using gathered data.
• Develop an action plan for a workable solution for improving the current
process.
• Set targets and develop criteria to measure success.
DO

• Implement the solution on a small scale or on trial basis.

• Collect data and monitor the performance measures.

Check

• Evaluate the data and study of some changes are happen and solution is
having intended effect.
• Check whether objectives have been achieved.

ACT

• Reflect on and act on learning from trial.

• If implementation of proposed solution is successful than standardize it and
implement it to the whole system.
• If implementation of solution is not successful than revise the plan and
repeat the process.

In such way continue with PDCA cycle either for further improvement of
existing process or for other new problems.

5.9 TQM Tools

There are seven tools which are extensively used to improve quality on PDCA
basis. These tools are given below

1. Flow charts
2. Check sheets
3. Histograms
4. Pareto diagrams
5. Scatter disgrams
6. Cause-and-effect diagrams
7. Control charts
5.9.1 Flow chart
A flowchart represents an algorithm or process with the help of pictorial symbols.
We can visualize boxes of pictorial symbols connecting with arrows to represent
sequence of activities. Pictorial symbols can be diamonds to represent decision
points, rectangles for activities and ovals for beginning and ending points. There
can be different types of flowcharts. One such flowchart can be seen in module 6,
discussed for process analysis. The links or arrows helps in relating one activity
with other, direction of flow and sequence of activities.

Flowcharts help in identifying points or bottle necks where problems might occur.
One such example is service blueprint discussed in module 3.

EXAMPLE

A flowchart of routine checkup process by a patient in some hospital can be seen in

figure 5.20.

Perform registration

No

Is patient
already a Yes Check weight/height,
Start Patient enters the
hospital registered blood pressure
patient?

Consult doctor

Patient leaves
hospital

Stop

FIGURE 5.20: FLOW CHART OF PATIENT ACTIVITIES IN A

HOSPITAL
5.9.2 Check Sheets
A check sheet is a tool to collect data in real time about the problems or
complaints. A check sheet is designed for quick, easy and efficient recording of
desired information which can help in the problem identification.

Example

A bank manager is interested in knowing the errors in entering the profile

information of customers in application of saving accounts for all days of a week.
The manager classified the information or different types of errors and made that
form or template ready. Now, he/she can record the number of errors on a
particular day using marks or checks in the respective cell of the table as shown in
table 5.7 below.

Table 5.7: Check sheet of errors in the application form

Type of Errors Day

in application Total
form Mon Tue Wed Thu Fri

Name lll llll ll lll llll l 19

Address llll lll llll llll ll ll 21

Telephone
ll lll llll ll l 13
number
Total 10 11 11 12 9 53

5.9.3 Histogram
A histogram is a graphical display of data collected over a period of time plotted as
a frequency distribution shown as bars. The data is classified into categories of
some variable. These categories are non-overlapping intervals. The bars for all
categories present the pr oportion of cases or numbers fall under each category. We
can plot the data collected in the check sheet table 5.7 as a histogram, as shown in
figure 5.21 below.
 13 12
11 11
11 10
9
9
Frequency

1
Mon Tue Wed Thu Fri
Errors per day

FIGURE 5.21: A HISTOGRAM REPRESENTING DATA ON FREQUENCY

OF ERRORS IN APPLICATION FORM

Histogram gives usual presentation to obtain the observation on distribution

followed by the data.

5.9.4 Pareto Diagram

Pareto diagram is used to plot the relative frequency of variable measure categories
under study in a descending order using bar graph. Such ordering helps the
decision maker to focus on those problems which needs greatest potential
improvement. It helps in identifying the dominant factors among all factors which
reduces the quality performance. The name Pareto came from Vil Fredo Pareto, an
Italian economist, who propounded that relatively few factors will account for
large percentage of total cases like 80-20 rule.

Figure 5.22 presents the total number of problem occurrences for a month using
pareto chart to identify reasons of poor service quality at Hospital
 80

70 70

60
Number of problems

50

40

30

20 18

10 7
5
0
More waiting for Unavailability of Shortage of beds Medicines out of stocks
ambulance specialized doctors

FIGURE 5.22: PARETO CHART FOR POOR SERVICE QUALITY IN

HOSPITAL

We can see from figure 5.22 that most of the problems faced by Hospital are due to
the excessive waiting time of ambulances to bring the patient to the hospital. The
management should focus on either increasing the number of ambulances or
relocate the Ambulance parking location.

Scatter Diagram

A scatter diagram plots the relationship of two variables using Cartesian

coordinates. Scatter plot illustrates the degree of correlation between two variables.
The independent variable is plotted on horizontal axis and the dependent variable
on the vertical axis. Following kinds of correlation may result between two
variables as shown in figure 5.23.

• Positive correlation, if the slope of the pattern of dots in scatter diagram is

rising from lower left to upper right as shown in figure 5.23 (a).
 • Negative correlation, if the slope of the pattern of dots in scatter diagram is
falling from upper left to lower right as shown in figure 5.23 (b).
• No correlation, if the variables are not correlated as shown in figure5.23 (c).

FIGURE 5.23: TYPES OF CORRELATION BETWEEN VARIABLES

Example

In a school it is found that there is a positive correlation between introducing

computers equipped with multi-media teaching aids and number of admissions
over time as shown in figure 5.24.

FIGURE 5.24: CORRELATION BETWEEN NUMBER OF ADMISSIONS

AND MULTIMEDIA INTRODUCTION
5.9.5 Cause - and - effect diagrams
Cause-and-effect diagram, is also called Ishikawa diagram or fishbone diagram,
proposed by Kaoru Ishikawa in the 1960s. It helps in finding the causes of selected
problem. The causes are categorized into various categories, called main causes.
These categories are connected to a center line of cause-and-effect diagram, called
spine. The box at the right hand side presents the effect due to the causes, which
needs to be examined. The causes are brain stormed by using ‘Whys’ techniques.
The categories are drawn like stems which can have further branches or secondary
causes.

Example

In figure 5.25, we can see the main causes for the delay in process at the teller in a
bank (effect) are human error, slow network, computer, downtime, environment
and poor process. These causes need to be brain stormed for further secondary
causes like Fatigue due to insufficient light leads to environment related cause.
Inexperienced teller leads to human error.

FIGURE 5.25: CAUSE-AND-EFFECT DIAGRAMS FOR THE DELAY IN

PROCESS AT TELLER IN A BANK

The control charts are discussed in the previous lecture.