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QUALITY MANAGEMENT
By…………….. Rajan kumar singh(sec-B)
USN-1AZ09MBA19
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OBJECTIVES of QTM

Quality Specifications and Costs

Six Sigma Quality and Tools
External Benchmarking
ISO 9000
Service Quality Measurement
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Total Quality Management

Total quality management is defined as

managing the entire organization so that it
excels on all dimensions of products and services
that are important to the customer
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Quality Specifications

Design quality: Inherent value of the product

in the marketplace

Dimensions include: Performance, Features,

Reliability/Durability, Serviceability, Aesthetics,
and Perceived Quality.

Conformance quality: Degree to which the

product or service design specifications are
met
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Costs of Quality

Appraisal Costs

External Failure Costs of

Costs Quality Prevention Costs

Internal Failure
Costs
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Six Sigma
 A philosophy and set of
methods companies use to
eliminate defects in their
products and processe.
 The name, “six sigma” refers to
the variation that exists within
plus or minus three standard
deviations of the process
outputs
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 Six Sigma allows managers to readily describe process

performance using a common metric: Defects Per
Million Opportunities (DPMO)

Number
Numberof
of defects
defects
DPMO 
DPMO xx1,000,000
1,000,000
Number
Numberof of 
opportunit ies xx No.
opportunities
for  No. of
of units
units
forerror per 
errorper
unit 
 unit 
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Six Sigma Quality (Continued)

Example
Exampleof ofDefects
DefectsPer
PerMillion
Million So,
So,for
forevery
everyone
one
Opportunities million
millionletters
Opportunities(DPMO)
(DPMO)calculation.
calculation. delivered
letters
Suppose deliveredthis
this
Supposewe weobserve
observe200200letters
lettersdelivered
delivered city’s
city’spostal
postal
incorrectly
incorrectlytotothe
thewrong
wrongaddresses
addressesin inaa managers
managerscan can
small
smallcity
cityduring
duringaasingle
singleday
daywhen
whenaa expect
expecttotohave
have
total
totalof
of200,000
200,000letters
letterswere
weredelivered.
delivered. 1,000
1,000letters
letters
What incorrectly
incorrectlysent
Whatisisthe
theDPMO
DPMOin inthis
thissituation?
situation? to
sent
tothe
thewrong
wrong
address.
address.

200
200
DPMO 
DPMO 1,000,000  11,,000
xx1,000,000 000
  11  xx200,000
200,000
Cost
Cost of
of Quality:
Quality:What
Whatmight
mightthat
thatDPMO
DPMOmean meanin
interms
terms
of
of over-time
over-timeemployment
employmentto
tocorrect
correct the
theerrors?
errors?
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Six Sigma Quality: DMAIC Cycle

 Define, Measure, Analyze, Improve, and Control
(DMAIC)
 Developed by General Electric as a means of focusing
effort on quality using a methodological approach
 Overall focus of the methodology is to understand and
achieve what the customer wants
 A 6-sigma program seeks to reduce the variation in the
processes that lead to these defects
 DMAIC consists of five steps….
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Example to illustrate the process…

We are the maker of this cereal. Consumer reports

has just published an article that shows that we
frequently have less than 15 ounces of cereal in a
box.
What should we do?

THANKS