Chapter 5

QUALITY MANAGEMENT AND

CONTROL

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 Chapter objectives

 At the end of this chapter students will be

able to:
 Explain meaning and nature of quality
 Discuss overview if TQM
 Discuss continuous improvement
 Explain Statistical Quality Control
 Define and use process control chart

By: Zola
 Introduction

 Every manufacturing process is a repetitive

process depending both on controllable and
uncontrollable factors.
 Due to this there is bound to be some
deviations in the quality of the product. i.e.
variation in the quality of a product is inherent in
every production process
 Thus there is always a necessity that the
deviations in the quality of the product should
be discovered and corrected.
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 What is Quality?

 Quality, like beauty, lies in the beholder’s eyes.

 Quality is “fitness for use” —Joseph M. Juran
 Quality is what the customer gets out and is
willing to pay for.” Peter F. Drucker
 In technical usage, quality can have two
meanings: (American Society for Quality)
 The characteristics of a product or service that
bear on its ability to satisfy stated or implied
needs(American Society for Quality)

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 Why Quality Is Important

 Higher quality minimises processing time

 Reduce inventory, rework and scrap costs

 Reduce inspection and test costs

 Reduce complaint and warranty, and service costs.

 costs can be brought down by improved efficiencies,

productivity and the use of capital.

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 Dimensions of Quality

 Performance - main characteristics of the

product/service
Aesthetics - appearance, feel, smell, taste
Special Features - extra characteristics
Conformance - how well product/service conforms to
customer’s expectations
Reliability - consistency of performance
Durability - useful life of the product or service
Perceived Quality - indirect evaluation of quality (e.g.
reputation)
Serviceability - service after sale
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 Service Quality Dimensions

Convenience
Reliability

Responsiveness

Time

Courtesy

Tangibles

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 Challenges with Service Quality

Customer expectations often change

Different customers have different expectations

Each customer contact is a “moment of truth”

Customer participation can affect perception of

quality
Fail-safing must be designed into the system

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 The Consequences of Poor Quality

Loss of business
Liability

Low Productivity

Costs

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 Costs of Quality

How significant is the cost of quality?

It has been estimated at between 15 and 20

percent of every sales dollar-the cost of

reworking, scrapping, repeated service,
inspections, tests, warranties, and other quality-
related items.
Costs of quality include:

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 Costs of Quality…

1. Failure Costs - costs incurred by defective

parts/products or faulty services.
Internal Failure Costs

 Costs incurred to fix problems that are detected before

the product/service is delivered to the customer.
 Scrap, Rework, Repair
 External Failure Costs
 All costs incurred to fix problems that are detected after
the product/service is delivered to the customer.
 Warranty, loss of customer, handling complaint

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 Costs of Quality…

2. Appraisal Costs
Costs of activities designed to ensure quality or

uncover defects
Inspection, testing

3. Prevention Costs
All TQ training, TQ planning, customer

assessment, process control, and quality

improvement, redesign product, equipment
modification costs to prevent defects from
occurring
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 5.3 Total Quality Management

The concept of total quality was developed by

Deming, an American consultant in the 1950’s.
It is a managerial philosophy that involves

everyone in an organization is responsible in a

continual effort to improve quality and achieve
customer satisfaction( T Q M )

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 TQM

 TQM is composed of three words:

 Total - made up of the whole
 Quality - degree of excellence a product or

service provides
 Management - act, art or manner of planning,

controlling, directing,….
Therefore, TQM is the art of managing the whole to
achieve excellence.
excellence

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 The TQM Approach

1. Find out what the customer wants

2. Design a product or service that meets or
exceeds customer wants
3. Design processes that facilitates doing the job
right the first time
4. Keep track of results
5. Extend these concepts to suppliers

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 Benefits of TQM

 greater customer satisfaction

 lower cost
 higher responsiveness to customer needs
 higher productivity levels
 making organizations competitive, and
 improvement in delivery.

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 Continuous Improvement

Philosophy that seeks to make never-ending

improvements to the process of converting inputs
into outputs.
Quality at the Source
The philosophy of making each worker

responsible for the quality of his or her work.

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 Continuous Improvement versus
Traditional Approach

Traditional Approach Continuous Improvement

 Market-share focus  Customer focus

 Individuals  Cross-functional
 Focus on ‘who” and teams
“why”  Focus on “what” and
 Short-term focus “how”
 Status quo focus  Long-term focus
 Product focus  Process improvement
focus
 Fire fighting
 Problem solving
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 Quality Awards and Standards

 Malcolm Baldrige National Quality Award

(MBNQA)
 The Deming Prize
 European Quality Award
 ISO 9000 Certification
 ISO 14000 Standards
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 1. MBNQA- What Is It?

Award named after the former Secretary of

Commerce – Regan Administration
Intended to reward and stimulate quality

initiatives
Given to no more that two companies in each of

three categories; manufacturing, service, and

small business

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 MBNQA…

Benefits of Baldrige Competition

Financial success
Winners share their knowledge

The process motivates employees

The process provides a well-designed quality

system
The process provides feedback

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 2. The Deming Prize

Named after W. Edwards Deming who worked

to improve Japanese quality after WWII
Main focus on statistical quality control

3. European Quality Award

Prizes intended to identify role models

 Leadership ,Customer focus ,Corporate social

responsibility ,People development and
involvement ,Results orientation

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 Quality Certification

 ISO 9000
 Set of international standards on quality
management and quality assurance, critical to
international business
 ISO 14000
 A set of international standards for assessing a
company’s environmental performance

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 Quality Control
 Is a set of tools and techniques by which
products are made to, comply with the
specifications at minimum cost
 Measuring the specifications determined from
customer's demand and transformed into
engineering and manufacturing requirements.
 It is concerned with making things right than
discovering and rejecting those made wrong.“
 Quality control function requires integrated
function

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 Quality Control….
 To ensure quality, scientific quality control
recognizes three distinct functions:
 Acceptance function:- inspection of goods to
ensure that they are up to the specifications
 Acceptance function of quality is called "Inspection”
 Preventive function: refers to the identification of
defects thereby avoiding or minimizing occurrence
of defectives.
 Preventive function of quality is called "Quality
Control”

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 Quality Control….

Assurance function :refers to verification that

every quality characteristic or product is assured
to meet a pre-determined performance standard
at each stage in the manufacturing cycle.
The assurance function includes elements like

customer complaints, quality audit, quality

determination, accuracy of inspection, executive
reports on quality, etc.

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 STATISTICAL QUALITY CONTROL
(SQC)
 Statistical quality control (SQC): set of statistical tools used
by quality professionals
 is a type of inspection based on probability and
mathematical techniques.
SQC encompasses three broad categories of:
1. Statistical process control (SPC)
2. Descriptive statistics include the mean, standard deviation, and
range
 Involve inspecting the output from a process
 Quality characteristics are measured and charted
 Helps identify in-process variations
3. Acceptance sampling used to randomly inspect a batch of goods to
determine acceptance/rejection
 Does not help to catch in-process problems
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 1. Statistical process control (SPC):

Process control involves testing a random sample of

output from a process to determine whether the process is
producing items within a pre-selected range.
Control Charts show sample data plotted on a graph

with CL, UCL, and LCL

Control chart for variables are used to monitor

characteristics that can be measured, e.g. length, weight,

diameter, time
Control charts for attributes are used to monitor

characteristics that have discrete values and can be

counted, e.g. % defective, # of flaws in a shirt, etc

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 Control Charts for Variables

 Use x-bar charts to monitor the changes in the

mean of a process (central tendencies)
 Use R-bar charts to monitor the dispersion or
variability of the process
 System can show acceptable central
tendencies but unacceptable variability or
 System can show acceptable variability but
unacceptable central tendencies

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 Example
 A quality control inspector at the Cocoa Fizz soft drink company has taken
three samples with four observations each of the volume of bottles filled.
If the standard deviation of the bottling operation is .2 ounces, use the
below data to develop control charts with limits of 3 standard deviations for
the 16 oz. bottling operation
Center line and control limit
formulas
x 1  x 2  ...x n σ
x , σx 
k n
where (k ) is the # of sample means and (n)
is the # of observations w/in each sample
UCL x  x  zσ x

LCL x  x  zσ x

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 Solution and Control Chart (x-bar)

 Center line (x-double bar):

15.875  15.975  15.9

x  15.92
3
 Control limits for±3σ limits:

 .2 
UCL x  x  zσ x  15.92  3   16.22
 4
 .2 
LCL x  x  zσ x  15.92  3   15.62
 4
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 Control Charts for Attributes
P-Charts & C-Charts

Attributes are discrete events: yes/no or pass/fail

 Use P-Charts for quality characteristics that are discrete
and involve yes/no or good/bad decisions
 Number of broken eggs in a carton

 Use C-Charts for discrete defects when there can be more

than one defect per unit

 Number of flaw/defect or stains in a carpet sample cut from a

production run
 Number of complaints per customer at a hotel

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 Control charts…

 p-chart: A chart used for controlling the

proportion of defective services or products
generated by the process
# Defectives
CL  p 
Total Inspected
p(1  p )
σp 
Where n

n = sample size
p = central line on the chart, which can be either the historical average
population proportion defective or a target value .
 Control limits are: UCLp = p+zp and LCLp = p−zp
 z = normal deviate (number of standard deviations from the average)
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 Hometown Bank
Example

The operations manager of the booking services department of Hometown Bank is

concerned about the number of wrong customer account numbers recorded by
Hometown personnel.
Each week a random sample of 2,500 deposits is taken, and the number of incorrect
account numbers is recorded. The results for the past 12 weeks are shown in the
following table.

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Is the booking process out of statistical control? Use three-sigma control limits.
 Hometown Bank
Using a p-Chart to monitor a process

Sample Wrong Proportion

n = 2500 Number Account # Defective
147 1 15 0.006
p= = 0.0049
12(2500) 2 12 0.0048
3 19 0.0076
p = p(1 – p)/n 4 2 0.0008
5 19 0.0076
p = 0.0049(1 – 0.0049)/2500 6 4 0.0016
7 24 0.0096
p = 0.0014
8 7 0.0028
UCLp = 0.0049 + 3(0.0014) 9 10 0.004
10 17 0.0068
= 0.0049
0.0091 – 3(0.0014) 11 15 0.006
LCLp =
12 3 0.0012
= 0.0007
Total 147
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 Control charts…
 C-Chart Example: The number of weekly customer complaints
are monitored in a large hotel using a c-chart. Develop three
sigma control limits using the data table below.

Solution:

# complaints 22
CL    2.2
# of samples 10
UCLc  c  z c  2.2  3 2.2  6.65
LCLc  c  z c  2.2  3 2.2  2.25  0

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 2. Descriptive Statistics
 Descriptive Statistics include:
n
The Mean- measure of central
x


tendency i
The Range- difference
x i 1


between largest/smallest
observations in a set of data n
 Standard Deviation measures

 x 
the amount of data dispersion n
2
around mean i X
 Distribution of Data shape
 Normal or bell shaped or
σ i 1

 Skewed
n 1

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 3. Acceptance Sampling

Defined: the third branch of SQC refers to the process of

randomly inspecting a certain number of items from a lot or
batch in order to decide whether to accept or reject the entire
batch
 acceptance sampling is performed either before or after the
process rather than during
 Sampling before typically is done to supplier material
 Sampling after involves sampling finished items before shipment or
finished components prior to assembly

 Used where inspection is expensive, volume is high, or

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 End of chapter 5

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