Module I.

Introduction to Quality Management

Lecture – 1 How the concept of Quality Management evolved over time?

From ancient time, quality of goods and services are monitored directly or indirectly. If we
look at construction of the pyramid, Greek ancient arts, crafts, and architectures, Roman-built
cities, it clearly demonstrates artists and engineers commitment for achieving the excellence
in quality. However, till 1800, production of goods and services was primarily done by small
group of individuals. These small groups were often family businesses. Thus, the standard of
quality was controlled and set by individual who was in turn also responsible for producing the
item. This phase, comprising the time period up to 1900, is called the period of ‘Operator Quality
Control’. The entire product was manufactured by a single person (or operator) or by small group
of persons, who essentially controlled quality. Thus, controlling and improving quality of the
product was aligned with the philosophy of pride in workmanship.

From early 1900s to 1920, a second phase evolved, which called the ‘Foreman Quality Control’
period. In this phase, the concept of mass production with little emphasis on personal
accomplishment at work place was introduced. Supervisors are responsible to ensuring that
quality was achieved. Foremen or supervisors controlled the quality of the product, and they
were also responsible for the shop floor operations.

The period of 1920 to 1940 saw the next phase of quality. This phase was so-called ‘Inspection
Quality Control’. With more complicated products and processes it became impossible for to
keep close watch over individual stages of operation. Inspectors were assigned to check the
quality of a product after processing. Individual product standards were set and any
discrepancies between standard and actual product features was reported. Defective items were
set aside as scrap, and few items with minor defects are reworked to meet the specified standard or
specification. In this period, statistical process control aspects of quality were also popularized,
and gained widespread application in industries. In 1924, Walter A. Shewhart of Bell Telephone
Laboratories introduced the concept of statistical charts to monitor variability of product
characteristics. These charts were called control charts. In the latter half of 1920s, H. F. Dodge
and H. G. Romig, also from Bell Telephone Laboratories, proposed acceptance sampling plans
for inspection. These plans substituted the concept of 100 percent inspection. During 1930’s
application of acceptance sampling plans was in full flow in industries. In 1929, Walter
Shewhartwith the help of American Society for Testing Materials (ASTM), American Society of
Mechanical Engineers (ASME,), American Statistical Association (ASA), and Institute of
Mathematical Statistics (IMS) created the joint committee for the development of statistical
techniques for application in engineering industries.

The phase of ‘Statistical Quality Control’ was between 1940 and 1960.During World War II, the
principles of sampling inspection plan was extremely useful. The American Society for Quality
Control (ASQC) was formed in 1946. A set of sampling inspection plan for attributes, so-called
MIL-STD-105A was developed in 1950. These plans underwent various modifications, viz.
MIL-STD-105B, MILSTD-105C, MIL—STD-105D, and MIL-STD-105E. In addition, during
1957, a set of sampling plans for variables called MIL-STD-414 was also proposed. Juran
published his Quality Control Handbook in 1957.

Use of quality control procedures and benefits of statistical quality control was not explored in
most of the U.S. industries. This may be due to monopoly market. However, Japan after World
War II, embraced the new philosophy wholeheartedly. Edwards Deming was invited to Japan
during 1950, and Japanese engineers were convinced about the importance of statistical quality
control as a means to gaining competitive advantage in world economy. Another quality guru, J.
M. Juran, visited Japan in 1954 and further impressed upon the strategic role that management
plays to achieve end quality. Thus, they started to develop strong commitment to train and educate
their employees on statistical process control.

The next phase of quality during 1960 is known as Total Quality Control. An important feature
during this phase was involvement of several departments and personnel in the qualit y
development process. Prior to this period, the attitude was quality is the responsibility of the
inspection. In 1960s, there was a change in this attitude. Employees began to understand that
each department within an organization has a contribution to build quality in an item. Concept
of zero defects, which encircle around achieving productivity through worker involvement,
emerged during this period. With more or less same underlying philosophy, quality circles were
introduced in many Japanese industries. The concept of quality circles is based on participative
or team work style of management. It believes that quality and productivity can be achieved
through informal group discussion, decision, and pertinent action.

1970 is the phase of ‘Total Quality Management’. This phase involved the participation of
everyone in the organization, from the operator to supervisor, manager, and even the chief
executive officer. Quality was responsibility of every individual. Feigenbaum, another quality
guru, defines the philosophy as:

‘A quality practice that is agreed on companywide and plant wide operating work structure,
documented in effective, integrated technical and managerial procedures, for guiding the
coordinated actions of the people, the machines, and the information of the organization in the best
and most practical ways to assure customer quality satisfaction and economical costs of quality.’

1970 also marked the extensive use of a graphical tool known as the cause-and-effect diagram.
Also in this decade, G. Taguchi of Japan introduced the concept of robust design in statistical
experimentation.

During 1980s, various quality control and statistical software came into the market. The notion
of a total quality management increased the emphasis on supplier’s quality, product design,
quality assurance. Ford Motor, Daimler Chrysler and General Motors Corporation adopted the
quality philosophy and insisted supplier to adopt various quality control and quality improvement
techniques.

In 1989, Motorola started the Six Sigma initiative, a quality philosophy driven by statistical
approach for decision making, which within 10 years was sincerely adopted by various other
companies.
Module I. Introduction to Quality Management

Lecture 2 - What do we mean by Product and Service Quality?

‘Quality’ can be defined as a standard measure of how well a product or service conforms to the
specified standards, so as to meet the customer requirements. Quality has been defined by
various quality gurus. Juran defined quality as ‘fitness for use’ in 1974. Crosby, in 1979, defined
the quality as ‘conformance to requirements or specifications.’ Garvin, in 1984 divides the
definition of quality into five major categories—namely, transcendent, product-based, user-
based, manufacturing-based and value-based. In addition, he also identifies eight attributes
that may be used to define product quality: performance, features, reliability, conformance,
durability, serviceability, aesthetics, and perceived quality. The definition proposed by Crosby
seems more appropriate from both service and manufacturing perspective. However, terms such
as delighting customers, robustness, reducing variability can also be associated when
organization talk about quality. The driving force to determine the level of quality that should
be designed into a product of service is ‘The customer’. Quality also has a time dimension.
In other words, as the need and preference of customer changes with time, the level of quality
or degree of customer satisfaction also changes. Thus, quality, in this sense, is not constant.It is
a crucial parameter that differentiates an organisation from its competitors.Thus, term quality
also implies different levels of expectations from different segment of consumers.

Now, who are the customers?

There are two distinct types of customers- external and internal. An external customer may be
the one who uses the end product or service, the one who purchases the end product or service,
or the one who influences the sale of the end product or service. An external customer exists
outside the organization.

An internal customer is also important. Every function within an organization, whether it is

engineering, order processing, or production has an internal customer. That means each function
receives a product or service from another function and, in exchange, provides a product or
service to a subsequent function. From process perspective, every process is considered a
customer of the preceding process. Grinding process can be internal customer to boring process.

A diagrammatic representation is provided below (Figure1-1) to show internal and external

customer in the supply network perspective.

Figure 1-1: Customer from basic Supply network Perspective

From the customers' perspective, service is the combination of the customers experience and
their perception of the outcome of the service. The term service quality (Johnston and Clark,
2008) is often used to mean different aspect. Some may use the term to mean how the customer
is treated overall. This may be more accurately called ‘quality of service’, as opposed to service
quality, which can mean the entirety of outcome and experience. Sometimes service quality is
used to mean the same as satisfaction, i.e. perceived service quality.

Few definitions, which are important while we discuss on product quality is worth
mentioning:

Quality Characteristics
There can be more than one element that defines the intended quality level of a
product or service. These elements are so-called ‘quality characteristics’. Quality
characteristics may be of several types (Montgomery and Runger, 2010). It may be

Physical: length. weight, voltage, viscosity, or

Sensory: taste, appearance, color, or

Time Orientation: reliability, durability, serviceability

 Thus, the gross weight of a coke cans, the tensile strength of a bar, the specific
gravity of a liquid, and so on. There may be some intangible characteristics, such as the
taste, smell beauty. There can also be ethical characteristics such as honesty, courtesy,
friendliness which are difficult to measure and define.

Variables and Attributes

Quality characteristics can fall into two broad classes, viz. variables and attributes.
Characteristics that are measurable and are expressed on a numerical scale (ordinal or interval)
are called variables. The diameter of a bore expressed in millimeters is a variable, or density of
a liquid in grams per cubic centimeter or customer satisfaction expressed in a scale of 7. If we
express characteristics only in terms of conforming and defective, it falls in the attribute or
nominal category.

Defects and Defective Unit

Before defining an attribute, the terms defect and a defective unit should be defined.
Defect is a quality characteristic that do not meet its stipulated specifications. Let's say the
specifications of the thickness of steel washers are 3 ± 0.1 millimeters (mm). If we have a
washer with a thickness of 3.15 min, then its thickness is a defect.

The American National Standards Institute (ANSI) and the American Society for Quality Control
(ASQC) provides a definition of a defect as stated in ANSI/ASQC Standard:

‘A defect is a departure of a quality characteristic from its intended level or state that occurs
with a severity sufficient to cause an associated product or service not to satisfy intended
normal or reasonably foreseeable usage requirements.’

A defective unit has one or more defects such that the unit is unable to meet the intended
standard or use and is unable to function as required. An example of a defective unit might be a
cast iron cylinder that has an internal diameter and a weight that both fail to satisfy
specifications, thereby making the unit dysfunctional.
A quality characteristic is said to be an attribute if it is classified as either conforming or
defective to a stipulated specification. A quality characteristic that is not measured on a
numerical scale is expressed as an attribute. For example, the smell of a perfume is characterized
as either acceptable or not; the color of a cloth is either acceptable or not. Variables are treated
as attributes because of their simplicity to measure them this way or because it is difficult to
obtain data on them. Many examples may be cited in this category. For instance, the diameter of a
engine cylinder is, in theory, a variable. However, if we measure the diameter using a go/no-go
gauge and classify it as either conforming or defective (with respect to some established
specifications), then the characteristic is expressed as an attribute. The reasons for using a
go/no-go gauge, as opposed to a micrometer, could be economical. A measurement by go/no-
go gauge may be much shorter and consequently less expensive.

Standard or Specification

As the definition of quality involves meeting the requirements of the customer, these requirements
need to be documented. A standard, or a specification, refers to a precise statement that validates the
requirements of the customer; it may relate to a product, a process, or a service. For example, the
specifications for a bore might be 3 ± 0.1 centimeters (cm) for the inside diameter, 5 ± 0.2 cm for the
outside diameter, and 12 ± 0.5 cm for the length. This means that for the bore to be acceptable to the
customer, all the three dimensions must be within the specified limit.
Module I. Introduction to Quality Management

Lecture 3 - What are the dimensions of quality?

Before we discuss on dimensions of quality, we must discuss three aspects associated with
definition of quality: quality of design, quality of conformance, and quality of performance.

Quality of Design

Quality of design is all about set conditions that the product or service must minimally have to satisfy
the requirements of the customer. Thus, the product or service must be designed in such a way so
as to meet at least minimally the needs of the consumer. However, the design must be simple and
also less expensive so as to meet the customers' product or service expectations. Quality of design is
influenced by many factors, such as product type, cost, profit policy, demand of the product, avail-
ability of parts and materials, and product reliability.

Quality of Conformance
Quality of conformance is basically meeting the standards defined in the design phase after the
product is manufactured or while the service is delivered. This phase is also concerned about quality
is control starting from raw material to the finished product. Three broad aspects are covered in this
definition, viz. defect detection, defect root cause analysis, and defect prevention. Defect prevention
deals with the means to deter the occurrence of defects and is usually achieved using statistical process
control techniques. Detecting defects may be by inspection, testing or statistical data analysis collected
from process. Subsequently, the root causes behind the presence of defects are investigated, and finally
corrective actions are taken to prevent recurrence of the defect.

Quality of Performance

Quality of performance is how well the product functions or service performs when put to use. It
measures the degree to which the product or Service satisfies the customer from the perspective of
both quality of design and the quality of conformance. Meeting customer expectation is the focus
when we talk about quality of performance. Automobile industry conduct test drive of vehicles to
collect information about mileage, oil consumption. Bulbs are life tested to understand its reliability
during useful life. Customer survey is conducted to find customer’s perception about service
delivered. If product or service does not live up to customer expectation, then adjustments are needed
in the design or conformance phase.

Garvin (1984) also provides discussion of eight critical dimensions of product quality. The
summarized key points concerning these dimensions of quality is provided below.

Performance (will the product do the intended job in field?)

This we have already discussed. It talks about evaluation of product or service performance with
respect to certain specific functions and determine how well it performs from customer’s
perspective.

Reliability (how often the product can fail within a stipulated time?)

It talks about probability of not failing of components of say automobiles or airbus while on
service for a specified time period. Less the reliability, more the chances of repair or
replacement.

Durability (how long can the product last?)

This is the effective life of the product or longevity before it is declared as unfit for use. Repair is
not possible after this phase of life.

Serviceability (how easy is it to repair the product?)

Customer's view on quality is also influenced by how quickly and economically a repair or
routine maintenance activity can be accomplished. This is mentioned as serviceability. For
examples how long did it take to correct an error in your credit card statement by the bank?

Aesthetics (how appealing does the product look like?)

This is all about visual appeal of the product, often taking into account factors, such as style,
color, shape, packaging, tactile characteristics, and other sensory features.
Features (value or what does the product can actually do?)

Customers tend to purchase products that have more value added features. This can be beyond
basic criteria to enter into the market. A spreadsheet package may come with built-in statistical
quality control features while its competitors did not in the same price range. Feature may also be
definite as addition or secondary characteristics attached and supplements primary functionary of
a product. Thus, car stereo is a feature of an automobile whose primary function is transportation.

Perceived Quality (what is the customer’s feeling about the product after intended use?)

This is all about impression of a customer after using the product and/or service. This dimension
is directly influenced by any failures of the product that are highly visible to the public or the
way customer is treated when a quality-related problem with a product is addressed. Customer
loyalty and repeated business are closely related with perceived quality. For example, if you
make regular business trips by a particular airline, which almost always arrives late with few
incidence of luggage lost in transit, you will probably prefer not fly on that carrier and prefer its
competitor. So you will rate this dimension very low for such carrier.

Conformance to Standards (is the product made exactly as the designed

?)

This is what was discussed earlier as quality of conformance.

Service Quality
Service is generally defined as an experience felt by the consumer. Say, in a restaurant, the way
the customer is treated is considered as a service. Services are often intangible in nature. The
quality of service is judged by how well the customer is satisfied with the service. Service
quality is about comparing performance with the customer expectations. Service quality also
leads to customer satisfaction and interrelated. The key to retain customers is to understand their
needs and fulfill those needs. Making customers buy the services repeatedly requires focus on
dimensions of service quality. There are five dimensions of service quality and given below:
Tangibles: The tangible dimension of quality is related to the surroundings in which the service
is provided to the customers. In a restaurant, it may be seating arrangement, interior decoration
and lighting arrangement.

Reliability: Reliability refers to the dependability of customers on specific service. It is all about
what is promised and what is delivered. Like, Indigo airlines in India have proved to be low cost
airlines with high punctuality.

Responsiveness:Responsiveness refers to the time taken by a service provider to respond to

request. Like, LG customer care in India promises response to customer complaints within 24
hours.

Assurance: This dimension of service quality is related to the competence of the service
employee. The employees must be competent to gain the trust of customers.

Empathy: Empathy refers to caring attitude that an organization shows toward customer. This
dimension of service quality calls for individual attention to customer, so as to make them feel
special.
Considering the above dimensions, comparisons are made between actual service performance
and expectations of customers. The difference between customers’ expectations and actual
delivery (so-called ‘perception’) at the time of service performance is known as service quality
gap.Organization conduct survey and exploratory research to study the various service gaps, so
as to understand why the gap arises and how it can be reduced. Readers may refer Parasuraman
et al.(1985, 1988) paper for further details on Gap Models.
Module I. Introduction to Quality Management

Lecture 4 - What are the underlying quality philosophies suggested by Deming, Juran and
Crosby?

Several quality guru’s, such as W. Edwards Deming. Philip B. Crosby, and Joseph M. Juran, has
made significant contributions in the field of quality. They are largely responsible for the global
adoption and integration of quality management in industry. They preached that management
commitment is the key to a successful program in quality. They also emphasized that any philosophy
to improve quality in a company needs time and cannot occur overnight.

W. Edwards Deming is credited with the impressive turnaround in Japanese industry after World War
II. Deming's philosophy emphasizes the role of ‘management of the problems’ that industry
faces. Deming said that about 85% of the problem can be solved only by management. These
involve changing the method of operation and are not by scolding the workers. His idea was
to improve process and not on blaming or scolding workers. In Deming's world, workers'
responsibility lies in communicating to management the information they possess regarding
the process and both must work in harmony. The Deming's ideal management style is holistic
and organization is viewed as an integrated entity. The idea is to plan for the long run and
provide a course of action for the short run. Deming believed in the adoption of a total
quality philosophy and emphasized the never ending nature of statistical quality control in
the quality improvement process. Deming's approach demands a cultural transformation in
the organization. Deming advocated certain key components that are essential for the
journey toward continuous improvement, viz. Knowledge of the system and the theory of
optimization(to look into system as a whole and not as individual process), Knowledge of the
theory of variation( understanding common and special cause of variation and emphasize on
statistical process control), Exposure to the theory of knowledge(data driven prediction that
is based on underlying knowledge about processes), Knowledge of psychology (understand
the behavior and interactions of people and also the interactions of people with their
working environment). Deming provides 14 points for management that will sustain
productivity and competitiveness of the company in the long run. Book by Deming (published in
1982, 2000)or any book on Quality Management can be seen by readers to understand in-depth the
14 points. In around 1950, Shewart cycle was renamed in Japan as Deming PDCA cycle. This is a
continuous cycle of process improvement. This is illustrated in Figure 1-2 given below.

Figure 1-2 PDCA Deming Cycle

Deming's 14 points for management provide a road map for continuous quality improvement.
While implementing these points, certain practices of management are
labeled by Deming as deadly diseases or sins. These are (i) management by visible figures only,
(ii) lack of constancy of purpose, (iii) performance appraisal by numbers, (iv) a short-term view
of organization, and (v) mobility of management. These must be eliminated. Most of Deming's
deadly diseases involve a lack of understanding of variation.

Joseph. M. Juran emphasized on seven step process for controlling quality, which is employed
by various organizations to control the processes.In this context, Juran first visited Japan in
1950’s,and educated the management of large organistions about the need of management’s
commitment to attain quality. The quality standards developed by Japanese are based on these
concepts. According to Juran philosophy,Quality is defined as “fitness for use”.
Philip B. Crosby has a particularly wide-ranging understanding of the various operations in
industry because he started as a line inspector and worked his way up. Such firsthand experience
has provided him with a keen awareness of what quality is, what the obstacles to quality are, and
what can be done to overcome them. He founded Philip Crosby Associates in 1979. His quality
management grid identifies and pinpoints operations that have potential for improvement. The
grid is divided into five stages of maturity, and six measurement categories aid in the evaluation
process. Readers can refer to his book ‘Quality is Free (1979)’ for in-depth about his philosophy.
He suggested that the rational quality improvement approach is to prevent defects. He defined
that the only performance standard is zero defect. Crosby emphasized on performance from the
cost of quality perspective. He preached to reduce costs of unquality, such as scrap, rework,
inventory, machine breakdown, inspection, etc. These are the cost that leads to poor quality.
Module I. Introduction to Quality Management

Lecture 5 -What do we mean by Quality Cost?

Quality costs are defined as those costs that are associated with the non-achievement of product
or service quality as defined by the requirements established by the organization and its contracts
(agreements) with customers. In simple terms, quality cost is the cost incurred by the firm
because of producing poor quality products. Measurement and analysis of various cost aids in
tracking the impact of an effective quality management system. Quality costs can be summed up
as costs of preventing of non-conformance of requirements, inspecting product/service for non-
conformances and failure in meeting specifications. The American Society for Quality Control
(1971) has defined four major categories for quality costs, which are provided below:

Prevention Costs

Prevention costs are incurred in planning, implementing, and maintaining of a quality practice. It
include salaries and developmental costs for process control approaches, information systems,
and all other costs associated with making the product right the first time. Also, costs associated
with education and training is included in this category. Defect identification and removal and
the cost of a quality audit are included in the prevention cost.

External Failure Costs

External failure costs are incurred when the product does not perform satisfactorily
after it is shipped to the end customer. If there are no defective units, the external failure cost can
be zero. However, cost incurred due to customer complaints, costs of investigation and
adjustments if required, and those associated with receipt, handling, repair (if possible), and
replacement of defective products comes within the external failure cost. Warranty cost (failure
of a product within the warranty time) which is specifically monitored in industries also fall
under this category.
Appraisal Costs
Appraisal costs are related with measuring, evaluating, or inspecting products, components, or
purchased materials to determine their degree of conformance to specified design standards.
Such costs include dealing with the inspection and test of incoming materials as well as product
inspection and testing at various stages of manufacturing till final acceptance. Appraisal costs are
associated with managing the outcome, whereas prevention costs are associated with managing
the goal.

Internal Failure Costs

Internal failure costs are incurred when products, sub assemblies, components or materials fail to
meet quality requirements prior to the transfer of ownership to the internal customer. These costs
will disappear if there were no defects or defective in the product while it is manufactured in-
house. Internal failure costs also include labor and overhead cost associated with any internal
repair.