QUALITY MANAGEMENT

Definitions of Quality

Quality means different to different people:

1. Customer-Based: Fitness for use, meeting customer

expectations.

2. Manufacturing-Based: Conforming to design, specifications,

or requirements. Having no defects.

3. Product-Based: The product has something that other similar

products do not that adds value.

4. Value-Based: The product is the best combination of price and

features.

5. Transcendent: It is not clear what it is, but it is something

good...
What is Quality?
User-based: “In the eyes of the beholder”

Manufacturing-based: “Right the first time”

Product-based: Precise measurement

Dimensions of Quality
1. Performance
2. Aesthetics
3. Special features: convenience, high tech
4. Safety
5. Reliability
6. Durability
7. Perceived Quality
8. Service after sale
Importance of Quality
Lower costs (less labor, rework, scrap)

Motivated employees

Market Share

Reputation

International competitiveness

Revenues generation increased (ultimate goal)

 Diagnosing Quality Problems
Gap 1: The customer’s specification–operation’s
specification gap

Gap 2: The concept–specification gap

Gap 3: The quality-specification–actual-quality gap

Gap 4: The actual-quality–communicated-image gap.

 Conformance to Specification
Step 1 Define the quality characteristics of the product or service.

Step 2 Decide how to measure each quality characteristic.

Step 3 Set quality standards for each quality characteristic.

Step 4 Control quality against those standards.

Step 5 Find and correct causes of poor quality.

Step 6 Continue to make improvements.

Total quality management (TQM)
TQM is ‘an effective system for integrating the quality
development, quality maintenance and quality
improvement efforts of the various groups in an
organization so as to enable production and service at the
most economical levels which allow for full customer
satisfaction’.
 TQM Means
▪Meeting the needs and expectations of customers;
▪Covering all parts of the organization;
▪Including every person in the organization;
▪Examining all costs which are related to quality, especially
failure costs and getting things ‘right first time’;
▪Developing the systems and procedures which support quality
and improvement;
▪Developing a continuous process of improvement
Flow of Activities Necessary to
Achieve Total Quality Management

Organizational Practices

Quality Principles

Employee Fulfillment

Customer Satisfaction

11
QM Vs QA
Quality Management
Achieving results that satisfy the
requirements for quality.
Motivated by stakeholders internal to
the organization, especially the
organization’s management
Goal is to satisfy all stakeholders
Effective, efficient, and continually
improving, overall quality-related
performance is the intended result.
Scope covers all activities that affect
the total quality-related business
results of the organization
Quality Assurance
Demonstrating that the requirements
for quality have been (and can be)
achieved.
Motivated by stakeholders, especially
customers, external to the
organization
Goal is to satisfy all customers.
Confidence in the organization’s
products is the intended result
Scope of demonstration coves
activities that directly affect quality-
related process and product results
International Quality Standards
1. Industrial Standard Z8101-1981 (Japan)
Specification for TQM
2. ISO 9000 series (Europe/EC)
Common quality standards for products sold in Europe
(even if made in U.S.)
3. ISO 14000 series (Europe/EC)
Standards for recycling, labeling etc.
4. ASQC Q90 series; MILSTD (U.S.)

13
 TQM Vs ISO SYSTEM

ISO 9000 TQM

Not necessarily customer focused Definitely customer focused
Technical system & procedures focused Philosophy , concepts, tools
&techniques focused
Employee involvement not necessary Employee involvement necessary

Less or no focus on cqi Cqi & tqm are synonym

Can be departmentally focused Organization wide
Quality department responsible for Everyone responsible for quality
quality
Preserves the status quo Improves process & cultural change
Costs of Quality

Appraisal Costs

Costs of
External Failure Prevention Costs
Costs Quality

Internal Failure
Costs

15
Continuous Improvement
Methodology

16
PDCA Cycle (Deming Wheel)
1. Plan a change
4. Institutionalize
aimed at
the change or
improvement.
abandon or
do it again.
4. Act 1. Plan

3. Check 2. Do

3. Study the results; 2. Execute the

did it work? change.

17
Process Flow Chart
Material No,
Inspect
Received
Material for Continue…
from
Defects Defects
Supplier
found?

Yes

Can be used to find Return to

quality problems. Supplier for
Credit

18
 Pareto Analysis
Can be used 80%

to find when
80% of the
problems may Frequency
be attributed
to 20% of the
causes.

Design Assy. Purch. Training Other

Instruct.

19
 Run Chart
Can be used to identify
when equipment or
processes are not behaving
Diameter

0.58 according to specifications.

0.56
0.54
0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
Time (Hours)
20
 Histogram
Can be used to identify the frequency of quality
Number of Lots

defect occurrence and display quality performance.

0 1 2 3 4
Defects
Data Ranges in lot
21
Scatter Diagram
Can be used to illustrate the
12 relationships between quality
behavior and training.
10
Defects

8
6
4
2
0
0 10 20 30
Hours of Training

22
 Checksheet
Can be used to keep track of
defects or used to make sure
people collect data in a correct
Monday manner.
Billing Errors

Wrong Account

Wrong Amount

A/R Errors

Wrong Account

Wrong Amount

23
Cause & Effect Diagram
Fish Bone Diagram
Possible causes: The results
or effect.
Machine Man

Environment Effect

Method Material

Can be used to systematically track backwards to find

a possible cause of a quality problem (or effect).

24
 Control Charts
Can be used to monitor ongoing production process quality
and quality conformance to stated standards of quality.

1020
UCL
1010
1000
990
980 LCL
970
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

25
Inspection
Involves: examining items to see if an item is good or
defective
Does not correct deficiencies in process or product
Issues
◦ When to inspect
◦ Where in process to inspect