LEC. 1.2.

QUALITY MANAGEMENT
What is Quality?

 Is about making organizations performs for their stakeholders, from improving products, services, systems, and
processes, to making sure that the whole organization is fit and effective.
 It is a conformance to requirements.
 It is a degree of excellence, which a thing possesses.
 Note:
Managing quality means constantly pursuing excellence:

 Making sure that what your organization does is fit for purpose, and not only stays that way, but keeps improving.
What qualifies as an acceptable level of quality for an organization is ultimately a question for the stakeholders.
Customers will be the most important group of stakeholders for the majority of businesses, but investors, employees,
suppliers and members of wider society are stakeholders too.

 Delivery an acceptable level of quality in an organization means knowing who are the stakeholders.
 Understanding the needs of the stakeholders and meeting those needs or even exceeding expectations, both now
and in the future.
Why should organizations care about quality?

 Enhance organization’s brand and reputation

 Protect it against risks
 Increase its efficiency
 Boost its profits and position it to keep on growing.
o Making staff and customer happier

What does quality Apply to?

o Product
o Service
o Process
o Task
o Action or decision

Eight (8) QM Principles

It is a set of international standard for Organizations (ISO), which has been developing guiding principles to
protect businesses from fatal errors. (established 1947)
The QMS (Quality Management Systems) standards apply worldwide, and their application is overseen by the
ISO’s technical committee.
1. Customer Focus:
 The first, and arguably most important principle, argues that a business wouldn’t exist without its
customers. Therefore, organizations should strive to understand their current and future customers, in
order to better meet their requirements and expectations.
 Key benefits of cultivating good customer relationships include an increased market share and
boost to revenue, as well as improved customer loyalty.
2. Leadership:
 This principle extols the virtues of strong, purposeful and unifying leadership.
 Leaders are responsible for creating a productive and progressive business environment.
 Leaders are in charge of ensuring that future hires maintain that atmosphere.
 Implementing this principle in the workplace relies upon having an established vision for the business, as
well as the right leaders in place to promote that vision to the rest of the team. Spending some time
getting this right from the get-go will save time and stress in the future.
3. People Involvement:
 A business without a customer base, wouldn’t get very far without a balanced, multi-skilled team.
 Employees at every level of the organization are crucial to its success, and this principles is all
about recognizing them.
 As an employer it's vital to ensure that the team are motivated and engaged, not just in their day-to-day
responsibilities, but also in the company as a whole. For this to happen, staff need to understand the
importance of their role and how it fits into wider company objectives, as well as take responsibility for
any problems that might impede them from doing their job to the best of their abilities.
4. Process Approach:
 A process-driven approach can help companies to avoid logistical problems that often stem from
confusion over the right way to go about things.
 it also future-proofs that a business, as having set processes ensures that there’s no moment of flat panic
when a key team member moves on, leaving everyone in the dark about key elements of their job.
 Developing processes for every area of your business, from sales to marketing, finance to HR, will ensure
that resources are used most effectively, resulting in cost-effective and consistent results. It also the
employer you to dedicate time and attention to bigger and more exciting tasks.
5. Systematic Approach to Management:
 identifying, understanding and managing processes using a clear system will help to streamline your
business.
 By ensuring that team members are dedicating the right amount of attention to key tasks, the
employer eliminate wasted time and make your business more efficient.
 A systematic approach also allows everyone to have access to every stage of certain processes and stay up
to date with progress. Plus, it looks great for prospective new clients when the business is organized.
Win-win.
6. Continual Improvement:
 A business should always be pushing for improvements, because if you’re not, you can bet that your
competitors will be.
 Continual progress is a permanent goal of any successful organization.
 Commitment to improvement also allows a person to be the market leader, as to be the ones setting the
agenda, rather than playing catch up to competitors.
7. Factual Approach to Decision Making:
 effective decisions are made based on rational analysis of data.
 Before making any business decisions, big or small, ensure that you have all the facts.
 If ever questioned about why a employer or manager made a certain decision, or asked to prove how that
decision benefits the business, they will have all the data at their fingertips to fall back on. This principle
also relies upon having access to reliable and accurate data, another vital aspect for a modern-day
business.
8. Mutually Beneficial Supplier Relations:
 Whether business provides goods or services to customers, it’s likely they rely on some sort of supplier.
This principle dictates that relationships between the company and any suppliers must be mutually
beneficial in order to add value to both parties. It allows both of the company to react more quickly and
flexibly to customer demands if things are smooth and harmonious between the company, as well as
making it easier to negotiate on costs.
The Steps to effectively Managing Quality
1. Determining Quality Characteristics
 Much of the 'quality' of a product or service will have been specified in its design. However, not all the
design details are useful in controlling quality

2. Measuring Quality Characteristics (Decide how to measure each characteristic)

 These characteristics must be defined in such a way as to enable them to be measured and then controlled.
This involves taking a very general quality characteristic such as 'appearance' and breaking it down, as far
as one can, into its constituent elements. 'Appearance' is difficult to measure as such, but 'colour-match',
'surface finish' and 'number of visible scratches' are all capable of being described more objectively. They
may even be quantifiable. Other quality characteristics pose more difficulty for the organization.

3. Setting Quality Levels (standards)

 When operations managers have identified how any quality characteristic can be measured, they need a
quality standard against which it can be checked; otherwise, they will not know whether it indicates good
or bad performance. The quality standard is that level of quality which defines the boundary between
acceptable and unacceptable. Such standards may well be constrained by operational factors such as the
state of technology in the factory, and the cost limits of making the product. At the same time, however,
they need to be appropriate to the expectations of customers. Nevertheless, quality judgements can be
difficult.
4. Deciding how to monitor quality levels (control quality against those Standard)
 After setting up appropriate standards, the operation will then need to check that the products or services
conform to those standards: doing things right, first time, every time.
5. Correcting and improving Quality (using 7 QC tools and Techniques)
6. Continue to make improvements (using Deming Cycle method)
Steps 5 and 6 – find correct causes of low quality and continue to make improvements.
 The final two steps in our list of quality management activities are, in some ways, the most important yet
also the most difficult. They also blend into the general area of operations improvement. The material
covered in Chapters 18, 19 and 20 all has contributions to make to these two steps. Nevertheless, there is
an aspect of quality management that has been particularly important in shaping how quality is improved,
and the improvement activity made self-sustaining. This process will align with total quality management
(TQM). The remainder of the main body of this chapter is devoted to TQM.
7 Basic tools of Quality Management:
1. Graphs (control Charts)
 The control chart is a graph used to study how a process changes over time. Data are plotted in time
order. A control chart always has a central line for the average, an upper line for the upper control limit,
and a lower line for the lower control limit. These lines are determined from historical data.

2. Pareto Analysis
  also called a Pareto distribution diagram, is a vertical bar graph in which values are plotted in decreasing
order of relative frequency from left to right.

3. Scatter diagram
 Also called: scatter plot, X-Y graph
 The scatter diagram graphs pairs of numerical data, with one variable on each axis, to look for a
relationship between them. If the variables are correlated, the points will fall along a line or curve. The
better the correlation, the tighter the points will hug the line.
4. Histogram
 is a display of statistical information that uses rectangles to show the frequency of data items in
successive numerical intervals of equal size.

5. Cause and effect diagram:

 is a visual tool used to logically organize possible causes for a specific problem or effect by graphically
displaying them in increasing detail, suggesting causal relationships among theories.

6. Check Sheet
 Also called: defect concentration diagram
 is a structured, prepared form for collecting and analyzing data. This is a generic data collection and
analysis tool that can be adapted for a wide variety of purposes and is considered one of the seven basic
quality tools.

7. Stratification
 is defined as the act of sorting data, people, and objects into distinct groups or layers.
 It is a technique used in combination with other data analysis tools.
 When data from a variety of sources or categories have been lumped together, the meaning of the data can
be difficult to see. This data collection and analysis technique separates the data so that patterns can be
seen and is considered one of the seven basic quality tools.
 When to use Stratification
 before collecting data
 When data come from several sources or conditions, such as shifts, days of the week,
suppliers, or population groups
 When data analysis may require separating different sources or conditions

References:

 https://www.quality.org/what-quality
 https://www.perkbox.com/uk/resources/blog/8-universal-principles-of-quality-management#:~:text=The
%208%20universal%20principles%20of%20quality%20management%20are%3A,to%20decision%20making
%208%20Mutually%20beneficial%20supplier%20relations
 https://asq.org/quality-resources/control-chart
 https://www.techtarget.com/whatis/definition/Pareto-chart-Pareto-distribution-diagram
 https://asq.org/quality-resources/quality-glossary/s
 https://www.techtarget.com/searchsoftwarequality/definition/histogram
 https://www.juran.com/blog/the-ultimate-guide-to-cause-and-effect-diagrams/
 https://asq.org/quality-resources/check-sheet
 https://asq.org/quality-resources/stratification