INTRODUCTION TO

QUALITY MANAGEMENT

R.P.Suresh
Indian Institute of Management
Kozhikode

7-Oct-23 Dr. R. P. Suresh IIMK

Copyright, 1996 © Dale Carnegie & Associates, Inc.
 Introduction
 QUALITY ALWAYS HAS BEEN AN
INTEGRAL PART OF VIRTUALLY ALL
PRODUCTS AND SERVICES
 Our AWARENESS of its importance
and introduction of FORMAL methods
for quality control and improvement
have been an evolutionary
development
7-Oct-23 Dr. R. P. Suresh IIMK
 What is Quality?

7-Oct-23 Dr. R. P. Suresh IIMK

 What is Quality?
 Quality is the best product/service
 Customer Satisfaction

 Excellence

7-Oct-23 Dr. R. P. Suresh IIMK

 Quality Products
 Product perspective
 User Perspective

 Value Perspective

 Manufacturing Perspective

 Customer Perspective

 Integrating all these perspectives in

the Value Chain
7-Oct-23 Dr. R. P. Suresh IIMK
 Evolutionary Process
 Federick W. Taylor introduced Scientific
Management principles in 1900
– Divide work into tasks so that the product could
be manufactured and assembled more easily
– As a result of standardized production and
assembly methods, quality improved
 AT&T Bell Laboratories formed a quality
department – emphasizing quality,
inspection and test, and product reliability in
1920s
7-Oct-23 Dr. R. P. Suresh IIMK
 Evolutionary Process
 W.A. Shewhart published control chart
concepts in 1924
 By the end of 1920s, Herald F. Dodge and
Harry G. Romig developed acceptance
sampling methods as an alternative to 100%
inspection
 1920s to 1940s: Use of Control charts and
other quality control methods were getting
more and more popular in U.S.

7-Oct-23 Dr. R. P. Suresh IIMK

 Evolutionary Process
 1950s : Deming, Juran and Feigenbaum
visited Japan and formally started quality
control concept
 1960s: Refinement in the methods took
place, and Quality Control handbook
appeared
 Japanese companies adopted D-J-F
concepts earlier than Americans
 Improvement in quality was evident

7-Oct-23 Dr. R. P. Suresh IIMK

 Quality Assurance
 This led to the development of Quality
Assurance – Involved the use of
statistics applied to the manufacturing
process, rather than at the output
stage only
 Quality Control Circles were formed

 Total Quality Control: quality control

should be company-wide(Feigenbaum)

7-Oct-23 Dr. R. P. Suresh IIMK

 Total Quality
Management
 Management writers identified that if
the TQC concept involved
management, it would be more
effective since managers would have
more authority and impact
 This led to TQM

 Popularised by Phillip Crosby

7-Oct-23 Dr. R. P. Suresh IIMK

 Quality Systems
 Quality systems such as ISO 9000, ISO
14000 have been introduced to provide
guidelines for the formation of QM system
for companies
 Management Excellence awards such as
Malcom Baldrige National Quality Award are
introduced to recognise good management
practice, which are used to improve quality
and productivity
7-Oct-23 Dr. R. P. Suresh IIMK
 Quality versus
variability
 Quality means fitness for use.
 Quality is inversely proportional to
variability
 Quality improvement means reduction
of variability in processes and products

7-Oct-23 Dr. R. P. Suresh IIMK

 Variability
 Certain amount of variability exists in
every product
 Large variation
– Not desirable by customers
– Unacceptable

7-Oct-23 Dr. R. P. Suresh IIMK

 Quality and
Productivity
 Quality improves productivity
 Example
– Copier Machine
 Production Rate : 100 parts per day
 Process Performance: First-pass yield of 75%

 60% of the fallout can be reworked into an

acceptable product , rest to be scrapped.
– Manufacturing cost: Rs. 20 per unit
 Rework: Rs. 4 per unit

7-Oct-23 Dr. R. P. Suresh IIMK

 Quality and
Productivity (Contd.)
 Manufacturing cost per good part
– (20*100+4*15)/90 = Rs. 22.89
 An Engineering study of the process
reveals excessive process variability
– Fallout decreases to 5%
– 60% of the fallout can be reworked into
an acceptable product , rest to be
scrapped
7-Oct-23 Dr. R. P. Suresh IIMK
 Quality and
Productivity (Contd.)
 Manufacturing cost per good part
– (20*100+4*3)/98 = Rs. 20.53
 10% reduction in costs
 10% increase in productivity

7-Oct-23 Dr. R. P. Suresh IIMK

 Sources of Variability
 Differences in materials
 Differences in the performance and
operation of the manufacturing
equipment
 The way the operators perform their
task.

7-Oct-23 Dr. R. P. Suresh IIMK

 Management Practices
 Variability can be reduced by good
management practices
 Quality Gurus

 W. Edwards Deming

 Joseph Juran

 Philip Crosby

7-Oct-23 Dr. R. P. Suresh IIMK

 Deming’s philosophy
 Responsibility of Quality rests with
management
 14 points
 1. Create a constancy of purpose focussed
on products and services
– Constantly try to improve product design and
performance
– Investment in research, development and
innovation will have long-term payback
7-Oct-23 Dr. R. P. Suresh IIMK
 Deming’s philosophy
(contd.)
 2. Adopt a new philosophy of rejecting poor
workmanship, defective products, or bad
service. Cost incurred on a defective unit is
waste
 3. Do not rely on mass inspection to
“control” quality. Quality results from
prevention of defectives through process
improvement, not inspection
 4. Do not award business to suppliers on
the basis of price alone, but also consider
quality.
7-Oct-23 Dr. R. P. Suresh IIMK
 Deming’s philosophy
(contd.)
 5. Focus on continuous improvement
– Use problem solving tools to improve the system
 6. Practice modern training methods and
invest in training for all employees.
 7. Practice modern supervision methods
– Institute Leadership
– Goal of supervision is to improve work system
and the product
 8. Drive out fear
 9. Breakdown the barriers between
functional areasDr.ofR. P.the
7-Oct-23 Sureshbusiness
IIMK
 Deming’s philosophy
(contd.)
 10. Eliminate targets, slogans, and
numerical goals for the workforce.
– Work to improve the system and provide
information on that
– A target “zero defects” is useless without plan for
achievement of this objective
 11. Eliminate numerical quotas and work
standards
– These standards have historically been set
without regard to quality

7-Oct-23 Dr. R. P. Suresh IIMK

 Deming’sphilosophy
 11. Work standards are often symptoms of
management’s inability to understand the
work process
 12. Remove the barriers to pride in
workmanship
 13. Institute an ongoing program of training
and education for all employees for self-
improvement
 14. Create a structure in top management
that will vigorously advocate the first 13
points.
7-Oct-23 Dr. R. P. Suresh IIMK
 Juran’s philosophy
 Quality Trilogy
– Quality Planning
– Quality Control
– Quality Improvement

7-Oct-23 Dr. R. P. Suresh IIMK

 Crosby’s Philosophy
 Quality means conformance to
requirements, not elegance
 There is no such thing as a quality problem
 Doing the job right first time is always
cheaper
 The only performance measurement is the
cost of poor quality
 The only performance standard is Zero
defects

7-Oct-23 Dr. R. P. Suresh IIMK

 Feigenbaum’s
philosophy
 Strong organizational structure
 Systems approach to improving
quality.

7-Oct-23 Dr. R. P. Suresh IIMK

 Ishikawa’s philosophy
 Quality begins with education and
ends with education
 Data without dispersion information (or
variability) is false

7-Oct-23 Dr. R. P. Suresh IIMK

Reduction of variability
 Testing and inspection
 Statistical Process Control

 Process Capability

 Checks and supervision of operators

 Robust Quality

7-Oct-23 Dr. R. P. Suresh IIMK

 COMPETING ON
DIMENSIONS OF
QUALITY

R.P.Suresh
Indian Institute of Management
Kozhikode

7-Oct-23 Dr. R. P. Suresh IIMK

Copyright, 1996 © Dale Carnegie & Associates, Inc.
 Dimensions of Quality
1. PERFORMANCE

 Will the product do the intended job?

 Potential customers evaluate a product to
determine if it will perform certain specific
functions and determine how well it
performs them
 You could evaluate spreadsheet software
packages for a PC to determine which data
manipulation operations they perform
 Execution speed
7-Oct-23 Dr. R. P. Suresh IIMK
 2. Features
 Additional features beyond the basic
performance
 Usually customers associate high
quality with products that have added
features
 Spreadsheet package with built-in
statistical analysis features may be
considered as of superior quality

7-Oct-23 Dr. R. P. Suresh IIMK

 3. Reliability
 How often does the product fail?
 Complex products, such as
appliances, automobiles, or airplanes,
usually require some repair over their
service life.
 If the repair requirements are very
frequent, we say it is unreliable
 Most desired attribute in car industry

7-Oct-23 Dr. R. P. Suresh IIMK

 4. Conformance
 The degree to which a product’s
design and operating characteristics
meet established standards
 All products and services involve
specifications of some sort
 Generally there is target (centre) and
deviance from the center is permitted
in a given range

7-Oct-23 Dr. R. P. Suresh IIMK

 Tolerance stack-up
 An automobile consists of several parts. If
each one is slightly too big or too small,
many of the components will not fit together
properly
 The vehicle (or its subsystems) may not
perform as the designer intended
 Genichi Taguchi introduced loss (penalty)
function for deviation from the centre

7-Oct-23 Dr. R. P. Suresh IIMK

 5. Durability
 How long does the product last?
 The amount of use one gets from a product
before it breaks down and replacement is
preferable to continued repair
 Closely linked to Reliability
 A product that often fails is likely to be
scrapped earlier than the one that is more
reliable

7-Oct-23 Dr. R. P. Suresh IIMK

 6. Serviceability
 How easy is it to repair the product?
 The speed, courtesy, competence and ease
of repair
 Responsiveness may be measured by the
mean time to repair
 Technical competence may be measured by
the incidence of multiple service calls to
correct a particular problem

7-Oct-23 Dr. R. P. Suresh IIMK

 7. Aesthetics
 What does the product look like?
 Clearly it is a matter of personal
judgement and a reflection of
individual preferance
 Patterns in customer preferences
should be identified on the basis of
taste
 Exploit the preferences of segments

7-Oct-23 Dr. R. P. Suresh IIMK

 8. Perceived Quality
 Reputation of the company and the
product
 Consumers do not always have
complete information about a product’s
or service’s attributes
 Indirect measures may be their only
basis for comparing brands

7-Oct-23 Dr. R. P. Suresh IIMK

 Competing on Quality
 The most traditional notions-
conformance and reliability – remain
important
 A company need not pursue all 8
dimensions of quality
 That is seldom possible unless it
intends to charge unreasonably high
prices

7-Oct-23 Dr. R. P. Suresh IIMK

 Choice of dimension of
quality
 Develop strategic framework to
explore opportunities in order to
distinguish its products from others’
 In entering U.S. markets, Japanese
manufacturers often emphasize their
products’ reliability and conformance,
while downplaying options and
features
7-Oct-23 Dr. R. P. Suresh IIMK
 Quality Characteristics
 Physical
– Length, Weight, Voltage
 Sensory
– Appearance, Taste, Colour
 Time orientation
– Reliability, Durability, Serviceability

7-Oct-23 Dr. R. P. Suresh IIMK