LECTURE 1 A QUALITY

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Programme Name: B.

Tech Semester: 3rd

Course Code:ME-13111 Course Name:


QUALITY
ENGINEERING

Course Coordinator : Dr M K Khurana


Introduction
1. The rapidly increasing global competition over the past decade has led to the
emergence of new scenarios for most of the industries.

2. The industries are now associated with rapid technological changes and product variety
proliferation in order to remain competitive.

3. The competitiveness of a company is mostly dependent on its ability to perform well in


dimensions such as cost, quality, delivery, dependability and speed, innovation and
flexibility to adapt itself to variations in demand.

4.Today, quality and value are, first and above all, and the customer expects them.

5. Quality in the successful organization is fully integrated into all of the business
processes and is an extension of everything else that has to happen along the path to
success.
QUALITY
▪ Dictionary has many definitions:

“Essential characteristic,” “Superior” etc.

Oxford American Dictionary “A degree or level of Excellence”

• Quality is fitness for use (JURAN)

• Quality is conformance to requirements (CROSBY)

• The efficient production of the quality that the market expects (DEMING)

• Quality is what the customer says, it is (FEIGENBAUM)


• Quality is the loss that a product costs to the society after being shipped
to the customer (TAGUCHI)

• The totality of features and characteristics of a product or services that


bear on its ability to satisfy stated or implied needs of the customers
(ASQC)

• A quality system is the agreed on company wide and plant wide operating
work structure, documented in effective, integrated, technical and
managerial procedures for guiding the co-coordinated actions of people,
the machines, or the information of company in the best and most
practical ways to assume customer quality satisfaction and economical
costs of quality. (FEIGENBAUM)
American Society of Quality Control (ASQC) defines Quality as:

The totality of features and characteristics of a product or services that bear on its ability to
satisfy stated or implied needs of the customers.

ISO has defines Quality as:


Degree to which a set of inherent characteristics fulfils requirements”.

Degree: refers to a level to which a product or service satisfies. So, depending upon the level of
satisfaction, a product may be termed as excellent, good or poor quality product.

Inherent characteristics: those features that are a part of the product and are responsible to
achieve satisfaction.

Requirements: refer to the needs of customer, needs of organization & those of other
interested parties (e.g. regulatory bodies, suppliers, employees, community & environment).
The Meaning of Quality
The Meaning of Quality

Producer’s Perspective Consumer’s Perspective

Quality of Conformance Quality of Design

Production • Conformance to • Quality characteristics Marketing


specifications
• Cost • Price

Fitness for
Figure 14.1 Consumer Use
• What is a customer?
Anyone who is impacted by the product or process delivered by an organization.

External Customer: The end user as well as intermediate processors. Other external
customers may not be purchasers but may have some connection with the product.
Internal Customer: Other divisions of the company that receive the processed
product.

• “A Customer’s impression of quality begins with the initial contact with the company
and continues through the life of the product.”

– Customers look to the total package - sales, service during the sale, packaging,
delivery and service after the sale.
Why the Quality becoming a cardinal priority for organizations ?

• Competition – Today’s market demand high quality products at low cost. So having
`high quality’ reputation is not enough. Internal cost of maintaining the reputation
should be less.
• Changing customer – The new customer is not only commanding priority based on
volume but is more demanding about the “Quality System”.
• Changing product mix – The shift from low volume, high price to high volume, low
price have resulted in a need to reduce the internal cost of poor quality.
• Product complexity – As systems have become more complex, the reliability
requirements for suppliers of components have become more stringent.
• Higher levels of customer satisfaction – Higher customers expectations are getting
executed by increasing competition.
The following definitions look at quality from a management, quality assurance,
product, marketing, manufacturing and economic point of view.

1. Fit for Purpose


• Perhaps the most useful business definition of quality is "fit for purpose". This
is useful because it's applicable to any process, service or product. However, it
can be difficult to measure.

It's easy to think of examples of fit for purpose. If the purpose of an aircraft is
to be fast, efficient, comfortable and safe — then that's the definition of a
quality aircraft.
Fit for purpose is a practical and flexible definition that's the cornerstone of
most quality management initiatives.
2. Conformance to Requirements
• Quality is often measured in terms of conformance to requirements.
For example, business users define requirements for a sales system.
The sales system is developed and its quality is measured against the
requirements.

This definition is ideal for quality assurance teams that need to


validate processes, systems, services and product quality.

The problem with this definition is that requirements may offer a


biased and subjective view of quality. In many cases, requirements
represent little more than the ideas of business stakeholders.
• 3. Quality is Cost
Traditionally, product quality was thought of in terms of material
costs. A watch that's made of gold is higher quality than a watch
made of plastic. High quality sheets have a thread count of 180 or
higher. High quality hand moisturizer has a high Shea butter content.
This type of quality definition works well for some
simple products. However, it's inapplicable to
technology, art and culture. The history of
technology is filled with cheaper products that have
higher quality.
• Quality is Price
Quality is an essential part of economic models.
Economists have developed various definitions of
quality.
Economists tend to judge quality by the
price consumers are willing to pay.

According to economists, if something is expensive,


it's high quality.
5. Quality is a Standard

• The manufacturing industry was the first to take a hard, scientific


look at quality. Manufacturers are concerned both with the quality
of products and the quality of the manufacturing process itself.
If you're manufacturing one million cars a month you can't afford
to produce sub-standard products that will be returned by your
customers. You can't afford product liability issues that result from
sub-standard product. You also can't afford inefficient processes.
Manufacturers use standards and continual process improvement
methodologies to improve both processes and product quality.
They view quality in terms of measurements and statistics.

• Quality Definition: Quality is a Standard


Quality is compliance to best known standards, processes and
specifications.
6. Quality is Value for Performance

• Marketing teams look for practical definitions of quality that


explain why consumers and businesses buy.

One of the best ways to model purchasing behavior is with the


following definition of quality.

According to estimates, McDonald's sells 550 million Big Macs


each year in the US alone. Obviously, customers see value in
the Big Mac. It's not always practical to measure quality by the
yardstick of a 3-star restaurant.
According to this definition a $3 disposable tooth brush may be
higher quality than a $3000 golden tooth brush because it
offers more value.
7. Quality is An Experience
As economies have shifted from a product to a
service focus marketers have sought definitions of
quality that explain why customers purchase
services.

Quality is a satisfying experience.

You don't go to a fine French restaurant for the


quality of food (product) alone. You go for the end-
to-end experience from calling to make the
reservation to paying the check and walking out the
door. Customers judge fine dining by aesthetics,
service, atmosphere, decor, taste, smell, etc.
Value-based Approach of Quality
Dimensions of Product Quality
1.Manufacturing Dimensions
Performance
Basic operating characteristics of a product.
Features
“Extra” items added to basic features, such as a music system or a special
interiors in a car. (what does the product do?)
Reliability
Probability that a product will operate properly within an expected time
frame.
Conformance
Degree to which a product meets pre–established standards.
( Is the product made exactly as the designer intended?)

Durability
How long product lasts before replacement.
Aesthetics
(What does the product look like?) How a product looks, feels, sounds, smells or
tastes.
Safety
Assurance that customer will not suffer injury or harm from a product.

Perceived quality (what is the reputation of a company or its products?)

2. Services Dimensions

▪ Time and timeliness


▪ how long must a customer wait for service, and is it completed on time?
▪ Completeness:
▪ is everything customer asked for provided?
▪ Courtesy:
▪ how are customers treated by employees?
▪ Consistency
▪ is same level of service provided to each customer each time?
▪ Accessibility and convenience
▪ how easy is it to obtain service?
▪ Accuracy
▪ is service correctly performed every time?
▪ Responsiveness
▪ how well does company react to unusual situations?
Three Aspects of Quality
The three aspects of quality and their linkages with
each other have been depicted in the figure below:
1. Quality of Design: Consumer's Perspective

The product must be designed to meet the requirement of the customer. The
product must be designed right first time and every time and while designing all
aspects of customer expectations must be incorporated into the product. The
factors need to consider while designing the product are:
– Type of product
– Cost
– Profit policy of the company
– Demand
– Availability of the parts
2. Quality of Conformance: Manufacturer's Perspective
The product must be manufactured exactly as designed.

The activities involved at this stage include: defect finding, defect


prevention, defect analysis, and rectification.

The difficulties encountered at the manufacturing stage must be


conveyed to the designers for modification in design, if any.

The two-way communication between designer and


manufacturing may help to improve the quality of the product.
3. Quality of Performance
The product must function as per the expectations of the customer. The two
way communication between designers and customer is the key to have a
quality product.
Quality means fitness for use.
Costs of Quality
A) Costs of Achieving B) Costs of Poor Quality
Good Quality

▪ Prevention costs ▪Internal failure costs

▪ Appraisal costs
▪External failure costs
A. Cost of Achieving Good Quality
1.Prevention Costs
• Quality planning costs • Training costs
– costs of developing and – costs of developing and
implementing quality management putting on quality
program training programs for
• Product-design costs employees and
– costs of designing products with management
quality characteristics
• Information costs
• Process costs
– costs expended to make sure – costs of acquiring
productive process conforms to and maintaining data
quality specifications related to quality, and
development and
analysis of reports on
quality performance
Cost of Achieving Good Quality (Cont’d)

2. Appraisal Costs

• Inspection and Testing Costs


– costs of testing and inspecting materials, parts, and product at various stages and at
end of process.
• Test Equipment Costs
– costs of maintaining equipment used in testing quality characteristics of products.
• Operator Costs
– costs of time spent by operators to gather data for testing product quality, to make
equipment adjustments to maintain quality.
B. Cost of Poor Quality
1. Internal Failure Costs
• Scrap costs • Process downtime costs
– costs of poor-quality – costs of shutting down productive
products that must be process to fix problem
discarded, including labor,
material, and indirect costs • Price-downgrading costs
• Rework costs – costs of discounting poor-quality
– costs of fixing defective products—that is, selling products
products to conform to as “seconds”
quality specifications
• Process failure costs
– costs of determining why
production process is
producing poor-quality
products
Cost of Poor Quality (Cont’d)
2. External Failure Costs
• Customer complaint costs • Product liability
– costs of investigating and costs
satisfactorily responding to a
customer complaint – litigation costs
resulting from a poor-quality resulting from
product product liability and
• Product return costs customer injury
– costs of handling and • Lost sales costs
replacing poor-quality – costs incurred
products returned by
customer because customers
are dissatisfied with
• Warranty claims costs poor-quality products
– costs of complying with and do not make
product warranties additional purchases
Cost of Quality
The equation " Cost of Quality (COQ) " allows to quantify the impact of Poor Quality.

It is used as a monitoring tool to track costs for inspection, internal errors, external
errors, and prevention.
Cost of Non-Conformance
E: External Failure Costs
I: Internal Failure Costs
A: Appraisal Costs
Cost of Conformance
P: Prevention Costs
S: Sales
COQ = Prevention Cost + Appraisal Cost + Internal
Failure Cost + External Failure Cost

Cost of Conformance Cost of Non-Conformance


It has been seen that as the prevention efforts are increased, the costs for inspection,
internal failures and external failures drop.
Quality Cost Management shows how increased Prevention Costs reduce the Total
Quality Costs.
Traditional View of Quality Costs
Modern/Contemporary View of Quality Costs
Normal Cost of Quality Distribution when Quality System is
NOT in Place
Optimum Cost of Quality Distribution when
Quality System is in Place

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