Operation Management

Title – ‘Basic Concept of Quality and Juran’s Principle’

“Quality is not an art ,it’s a habit”

Submitted by Submitted to
Ayushi Bisen
Mr. Sulabh Agarwal
Mahin Afzal
 • What is Quality?
By Garvin’s Approaches
Quality

Manufacturing Value based

Product Based
User based based approach Approach
Transcendent Approach
A precisely Approach Quality is defined In this approach
Approach measurable variable quality is defined
This approach insure as conformance to
Quality is which is composite of that the customer’s specification; as performance or
synonymous with all attributes that voice is incorporated reducing cost by conformance, the
innate excellent and describes the degree during product
the number of cost and price
is absolute and is of excellence of a design is reflected in comes into play .
product. consumer demand deviation in
universally curve. engineering and A quality product
recognised manufacturing is one which
process. provides
performance at an
accepted price or
cost.
Quality Management
• It is the act of overseeing all activities and tasks that must be accomplished to maintain a desired
level of excellence. This includes the determination of a quality policy, creating and implementing
quality planning and assurance, and quality control and quality improvement.
• Quality management includes the determination of a quality policy, creating and implementing
quality planning and assurance, and quality control and quality improvement.
• Quality Management comprise of 3 components.

Quality
Management

Quality improvement Quality control Quality Assurance

Quality Improvement
Quality improvement (QI) is a systematic, formal approach to the analysis of
practice performance and efforts to improve performance. can be distinguished from
quality control in that quality improvement
 It refers to purposeful change of a process to improve the reliability of achieving an
outcome.
 Quality Control
• Quality control is the ongoing effort to maintain the integrity of a
process to maintain the reliability of achieving an outcome.
• Quality control is used to verify if deliverables are of acceptable
quality and that they are complete and correct. Quality control is
used to
• Examples of quality control activities include inspection,
deliverable peer reviews, and testing process
 Quality Assurance
 Quality assurance is the planned or systematic action necessary to
provide enough confidence that a product or service will satisfy the
given requirements of quality.
 Quality assurance activities are determined before production work
begins and these activities are performed while the product is being
developed.
 Examples of quality assurance include process checklists, project
audits and methodology, and standards development.
Are they one and same….
QUALITY CONTROL QUALITY ASSURANCE
1. It is a set of activities for ensuring quality 1. It is a set of activities for ensuring quality
in products. The activities focus on in the processes by which products are
identifying defects in the actual products developed.
produced.
2. The goal is to improve development and
2. The goal is to identify defects after a test processes so that defects do not arise
product is developed and before it is when the product is being developed.
released.
3. All team members involved in developing
3. It is usually the responsibility of a specific the product are responsible for quality
team that tests the product for defects. assurance.
4. It is a corrective tool. 4. It is a managerial tool.
Total Quality Management
 TQM is a management philosophy, a paradigm and an approach to continuous
improvement in business through a new management model.
 The TQM philosophy evolved from the continuous improvement philosophy with a
focus on quality as the main dimension of business. Emphasizing the quality of the
product or service predominates under TQM.
 It expands beyond statistical process control to embrace a wider scope of management
activities surrounding people and organizations by focusing on the entire process and not
just simple measurements.
Importance of Quality
 Lower cost (less labour, rework, scrap)
Motivating Employee
Market Share
Reputation
International competitiveness
Revenue
Dimensions Of Quality
Performance Durability

Feature Serviceability

Reliability Aesthetics

Conformance Perceived Quality

 Cost Of Quality: The costs associated with providing poor quality products or services.

•This is the amount of money a business

3 category Of Cost Of Quality
loses because its products or services
failed to secure customer satisfaction in
the first place. Cost of Quality
•Businesses lose money everyday due to
poor quality. For most businesses, these Prevention Appraisal Failure
losses can range from15 per cent to 30 per cost cost cost
cent of their total costs.
Internal
• By addressing COQ, companies can look cost
to adding 10 per cent to 15 per cent of the
total costs to the bottom line without any External
capital investment. cost
Prevention cost
 This cost is incurred to prevent or
avoid quality problems.
 These costs are associated with the design
implementation, and maintenance of the
quality management system.
 The motto is prevention rather than
appraisal
 The activities associated with prevention
costs are training and education, market
research, quality planning, quality
improvement projects, supplier evaluation,
design review, contract review, field trials
and preventive maintenance.
Appraisal Cost
• These are costs to determine conformance with
quality standards and performance
requirements.
• These costs arise from detecting defects.
Appraisal activities are associated with
discovery of defects rather than their
prevention.
• The activities associated with appraisal costs
are inspection, checking, auditing, surveying,
inquiries, prototype testing, vendor surveillance
and calibration of measuring and test
equipment
 Internal Failure Cost
Internal failure costs arise when results of work fail to
reach designated quality standards, and are detected
before transfer to the customer takes place. Activities
associated with internal failure costs are scrap,
rework, downgrading, design changes and corrective
action.

Failure cost
The costs resulting from products or services not
conforming to requirements or customer/user needs
are termed failure cost .
returned products, product recalls, rejected services,
External Failure cost
External costs occur when the product or service is
offered to the customer and found to be defective.
Activities associated with external failure costs are
unhappy customers, warranty claims,
processing/investigation of customer complaints,
interest charges on delayed payment due to quality
problems.
 Who is Juran’s
Joseph Moses Juran He born
December 24, 1904 – February 28,
2008) was a Romanian
American engineer and
management consultant. He was an
evangelist for quality and quality
management, having written
several books on those subjects. He
was the brother of 
Academy Award winner 
Nathan Juran.
 Juran’s Trilogy
Dr. Joseph Juran left us with many important fundamental methods and tools
during his years as one of the leading experts on Quality Management. He
emphasized that we must balance the attention we give to the importance of the
tools we use, in order to manage for Quality. The Juran Trilogy is made up of
three important managerial tools to help organizations realize the full benefits of
Quality Management. The application of all of these tools is for many
departments of an organization, not just the quality department
Cost of Quality
The cost of quality, or not getting it right the first time, Juran maintained
should be recorded and analyzed and classified into failure costs,
appraisal costs and prevention costs.
1. Failure Cost
Scrap, rework, corrective actions, warranty claims, customer complaints
and loss of custom
2. Appraisal Cost
Inspection, compliance auditing, and investigations
3. Prevention Cost
Training, preventive auditing, and process improvement implementation
The three ASPECTS of Juran’s
Quality Planning (Quality by Design)_
Quality Planning is the activity of developing the products and processes required to meet customer’s needs. It
involves:
Establish quality goals
Identify the customers- those who will be impacted by the efforts to meet the goal.
Determine the customers’ needs
Develop product features that respond to customers’ needs
Quality Control (Process Control & Regulatory
This process consists of the following steps:
Evaluate actual quality performance
Compare actual performance to quality goals
Act on the difference
Quality Improvement (Lean Six Sigma)
This process is the means of raising quality performance to unprecedented levels
(breakthrough). This involves:
Establish the quality improvement infrastructure

Identify the improvement projects

For each project establish a project team with clear responsibility 
Provide the resource, motivation, and training needed by the team
 Pareto Principle (80/20 Rule) & Pareto
Analysis Guide
What is the Pareto Principle (80/20 Rule)?

Juran’s applied the principle during the

strategic goal deployment process as fellow

A relatively few member (roughly 20%) of the

project relating during the quality Improvement
process will provide the bulk (roughly 80%) of
the improvement.
Quality Improvement - 10 Steps
Juran proposed ten steps to quality improvement:
•Build awareness of the need and opportunity to improve

•Set goals for that improvement

•Create plans to reach the goals
•Provide training
•Conduct projects to solve problems
•Report on progress
•Give recognition for success
•Communicate results
•Keep score
•Maintain momentum