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It costs a lot to produce a bad product.

Norman Augustine

Two aspects of quality:

Features: more features that meet customer needs
= higher quality
Freedom from trouble: fewer defects
= higher quality
Module 1:

The concept and vocabulary of quality are elusive.
Different people interpret quality differently.
The banker will answer service
The healthcare worker will answer quality health care
The hotel employee will answer customer satisfaction
The manufacturer will simply answer quality product
The institution head will answer students satisfaction
Quality is the ability of a product or service to
consistently meet or exceed customer expectations.
Perceived Quality: An assessment of quality based on
the reputation of the firm. Ex: Mercedes Benz
Qc is defined as maintaining requisite standards in
products or services.
ISO 8402 defines QC as the operational techniques
and activities that are used to fulfill requirements of
Different views of quality
Receiving the right product for their use
Being satisfied that their needs have been met
Meeting their expectations
Being treated with integrity, courtesy and respect

Doing the right thing

Doing it the right way
Doing it right the first time
Doing it on time without exceeding cost

Provide products, items and services needed

to meet the requirements of the manufacturers
Quality Gaps
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 customers
Reliability - consistency of performance.
Durability - useful life of the product/service
Perceived Quality - Indirect evaluation of quality (e.g. reputation)
Serviceability - service after sale

Developing quality specifications

Design Design quality

Input Process Output

Dimensions of
Conformance quality
Determinants of Quality

Design Ease of
Capability of
Design process

to design Service

Examples of Service Quality-Customer
Dimension Examples
1. Convenience Was the service center conveniently located?

2. Reliability Was the problem fixed?

3. Responsiveness Were customer service personnel willing and able to

answer questions?
4. Time How long did the customer wait?

5. Assurance Did the customer service personnel seem

knowledgeable about the repair?
6. Courtesy Were customer service personnel and the cashier
friendly and courteous?
7. Tangibles Were the facilities clean, personnel neat?
Types of Quality
Indifferent Quality
Expected Quality
One-dimensional Quality
Exciting quality
Quality Assurance vs. Strategic Approach
Quality Assurance
Emphasis on finding and correcting defects before
reaching market
Strategic Approach
Proactive, focusing on preventing mistakes from
Greater emphasis on customer satisfaction

Quality must be consider at all stages in the life
cycle, as shown below, of a product.
Marketing &
Market Research

Technical Assistance& Design&

Maintenance Development


Sales& Process Planning&

Distribution Development

Packaging& Production
Inspection, testing&
Principles of QM
The ISO standard defines as activity of measuring , examining
, testing one or more characteristics of a product or service and
comparing the results wit specified requirements in order to
establish whether conformity is achieved for each
Types of Inspection:
Pre-production QC inspection
In process inspection
Trail run inspection: Tools and M/c s are checked before
First off Inspection : First produced item
Inspection by self control : By operators at different levels of
production process
Decentralized inspection:Semi finished goods on machine or in
production line
Centralized inspection:Single inspection unit for the whole set up.
QC inspection in production
Component dominant : Incoming material
Set-up Dominant
Machine dominant : Operation drift away from initial set-
Operator Dominant
Information Dominant
Record Dominant
Inspection-Sampling Plan
Single sampling plan
Double sampling plan
Multiple sampling plan
Inspection, Quality control & quality assurance and TQM
Quality Control and Quality
Assurance(QC VS QA)
Qc is defined as maintaining requisite standards in products or services.
ISO 8402 defines QC as the operational techniques and activities that are
used to fulfill requirements of quality.
Concepts of Quality Control
Quality Assurance - Concepts
Total Quality - Concepts
Quality Tools

Quality function deployment (QFD)

Statistical Process Control (SPC)
Capability Studies
Poka Yoke
Devrloped in Japan beginning in 1966 to help
transform the voice of customer into engineering
characteristics for a product.
Failure modes and effects analysis (FMEA) is a step-by-step approach for
identifying all possible failures in a design, a manufacturing or assembly process,
or a product or service.
Statistical Process Control (SPC) is an industry-standard
methodology for measuring and controlling quality during the
manufacturing process.
Capability Studies tolerance
capability of processes
Taguchi Minimum change/optimum solution technique
Primary aim of the Taguchi experiments - to minimize variations in output even though noise is present in the
process- is achieved by getting improved linearity in the input/output relationship.

Noise is shown to be present in the process but should have no effect on the output! This is the primary aim of the
Taguchi experiments - to minimize variations in output even though noise is present in the process. The process is
then said to have become ROBUST.

If the product to be optimized has a signal input that directly decides the output, the optimization involves
determining the best control factor levels so that the "input signal / output" ratio is closest to the desired
relationship. Such a problem is called as a "DYNAMIC PROBLEM".

"P" stands for Process or Product

Taguchi method is a statistical method developed by
Taguchi and Konishi .
Initially it was developed for improving the quality of
goods manufactured (manufacturing process
Success in achieving the desired results involves a careful
selection of process parameters and bifurcating them into
control and noise factors.
Selection of control factors must be made such that it
nullifies the effect of noise factors. Taguchi Method
involves identification of proper control factors to obtain
the optimum results of the process
Taguchi Experiment Steps According to Dr. Foster
Identify the Problems
Contribute to experiment design
Design experiment
Run experiment
Analyze results
Confirm experiment
Poka Yoke fool proof devices
Example of Poka Yoke

Correct Hole

Incorrect Hole
Improved profitability, revenues, budgetary performance.
Reduces costs, improves cash flow, improves return on
Increases competitiveness, improves customer retention and
loyalty, improves effectiveness of decision making, optimization
of available resources.
Employee accountability, optimization, effective and efficient
Improves supply chain performance.
Enhances organizational performance, credibility and
Module 2:

Costs of Quality
Cost of Quality has two main components
Cost of Conformance(Cost of good quality)(Costs of control)
The total cost of ensuring that a product is good quality. It is an organizations
investment into quality of its products.
Quality Assurance costs, i.e. training, standards and processes and
Quality Control costs, i.e. reviews, audits, inspections and testing.

1 Prevention Cost:
The costs incurred to avoid or minimize the number of defects at first place are known as
prevention costs. Some examples of prevention costs are improvement of manufacturing
processes, workers training, quality engineering, statistical process control etc.
2 Appraisal costs: Appraisal costs (also known as Detection costs and Inspection costs)
are those cost that are incurred to identify defective products before they are shipped to
All costs associated with the activities of manufacturing processes to ensure required
quality standards. Identification of defective products involve the maintaining a team of
Cost of Non-conformance(Costs of poor quality)(Costs of failure
of control)
Costs incurred by an organization once the product or services fail in
achieving their goals
cost of fixing production issues, possible loss of business etc
1 Internal failure costs: are those costs that are incurred to remove
defects from the products before shipping them to customers.
cost of rework, rejected products, scrap etc.
2 External failure costs: If defective products have been shipped to
customers, external failure costs arise.
Warranties, replacements, lost sales because of bad reputation, payment
for damages arising from the use of defective products etc.
Costs of Quality
Category Definition Example

Costs associated with preventing Training, early reviews, quality planning,

defects. tools, process improvement initiatives.

Costs associated with analyzing

Inspections, testing, audits, quality
Appraisal and testing the product to ensure it
conforms to specifications.

Costs associated with fixing Repair, retesting, updating

Internal Failure
defects found prior to release. documentation.

Technical support, defect reporting and

External Costs associated with fixing
tracking, field updates, loss of future
Failure defects found after release.
The Three Quality Gurus

1.Deming: the best known of the early pioneers, is credited with

popularizing quality control in Japan in early 1950s.Today, he is
regarded as a national hero in that country and is the father of the world
famous Deming prize for quality.
The Deming Prize is a global quality award that recognizes both
individuals for their contributions to the field of Total Quality Management
(TQM) and businesses that have successfully implemented TQM. It is the
oldest and most widely recognized quality award in the world.
The Deming Prize examination does not require applicants to conform to a
model provided by the Deming Prize Committee. Rather, the applicants are
expected to understand their current situation, establish their own themes
and objectives and improve and transform themselves organization-wide.
Not only the results achieved and the processes used, but also the
effectiveness expected in the future are subjects for the examination.
Juran, like Deming was invited to Japan in 1954 by the
union of Japanese Scientists and engineers.

Juran defines quality as fitness for use in terms of design,

conformance, availability, safety and field use. He focuses
on top-down management and technical methods rather than
worker pride and satisfaction.
Juran Quality triology
3.Philip Crosby: author of popular book Quality is
Free. His absolutes of quality are:

Quality is defined as conformance to requirements, not

Do it right the first time
The system for achieving quality is prevention, not
The performance standard is zero defects, not thats close
Strategy of Quality management
A quality management strategy defines the required level of quality for the
project and the approach to be used to ensure the specified standard of quality is
met. A more detailed quality management plan is developed in the Plan Stage.
A Quality Management Strategy should include:
Quality Objectives
Key Deliverables subject to quality strategy
Key Processes subject to the quality strategy
Quality standards and methods to be applied
Who is involved
Project Manager
Project Sponsor
Project Stakeholders
Team based work approach in
Quality management
Module 3:


The way of managing organization to achieve
Total everything
Quality degree of excellence
Management art, act or way of organizing,
controlling, planning, directing to achieve certain
Total Quality Management
Quality element Previous state TQM
Definition Product-oriented Customer-oriented
Priorities Second to service and First among equals of
cost service and cost
Decisions Short-term Long-term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem solving Managers Teams
Procurement Price Life-cycle costs
Managers role Plan, assign, control, Delegate, coach,
and enforce facilitate, and mentor
Stages of TQM
Control Monitoring variations
Assurance Standards based

Process oriented

Quality Internally motivated

Total Quality Changed organizational culture
Evolution of Quality Management
1924 - Statistical process control charts
1930 - Tables for acceptance sampling
1940s - Statistical sampling techniques
1950s - Quality assurance/TQC
1960s - Zero defects
1970s - Quality assurance in services

Principles of TQM
Principles of TQM
Quality oriented management
Focus on customer
Involving entire work force
Continuous improvement
Supplier partnership
Measuring performance
Scope of the TQM

Principles & Tools &

Practices Techniques

Leadership Quantitative Non-quantitative

satisfaction SPC ISO 9000

Employee Sampling ISO 14000

Reliability Benchmarking
improvement Experimental Total
design productive
Supplier maintenance
partnership FMEA Management
measures QFD Concurrent
Failure modes and effects analysis (FMEA) is a step-by-step approach for
identifying all possible failures in a design, a manufacturing or assembly
process, or a product or service.
Quality function deployment (QFD) is the translation of user requirements
or requests into designs that meet those specifications.
Statistical Process Control (SPC) is an industry-standard methodology
for measuring and controlling quality during the manufacturing
ISO 9000 deals with the fundamentals of quality management systems,
including the seven quality management principles upon which the family
of standards is based.
ISO 14000 is a series of international, voluntary environmental
management standards, guides, and technical reports. The standards
specify requirements for establishing an environmental policy
,determining environmental impacts of products or services, planning
environmental objectives, implementing programs to meet objectives,
and conducting corrective action and management review.
Scope of TQM
Benefits of TQM
Greater customer loyalty
Market share improvement
Higher stock prices
Reduced service calls
Higher prices
Greater productivity
Quality Gurus
W. Edwards Deming
Assisted Japan in improving productivity and quality after World War II
In 1951 Japan established Deming Prize
US was slow in recognizing his contributions
Introduced Japanese companies to the Plan-Do-Check-Act (PDCA) cycle
(developed by Shewart)
Developed 14 Points for managers
PDCA Cycle

4. ACT 1. PLAN
Permanently Identify im-
implement provements and
improvements develop plan

3. CHECK 2. DO
Evaluate plan Try plan on
to see if it a test basis
Demings 14 Points for Managers
1. Create constancy of purpose toward product quality to
achieve organizational goals
-Don't just do the same things better find better things to do
2. Refuse to allow commonly accepted levels of poor quality
- Embrace quality throughout the organization
- Create your quality vision, and implement it.
3. Stop depending on inspection to achieve quality
- Inspections are costly and unreliable and they don't improve quality, they merely
find a lack of quality
4. Use fewer suppliers, selected based on quality and
dependability instead of price
-Encourage them to spend time improving their own quality they shouldn't
compete for your business based on price alone
5. Instill programs for continuous improvement of costs,
quality, service, and productivity
-to improve quality and productivity, and thus constantly decrease costs.
6. Train all employees on quality concepts
- Build a foundation of common knowledge
- Allow workers to understand their roles in the "big picture"
7. Focus supervision on helping people do a better job
-Don't simply supervise provide support and resources so that each staff member can do his or her best. Be a
coach instead of a policeman.
8. Eliminate fear, create trust, and encourage two-way
communications between workers and management
- Allow people to perform at their best by ensuring that they're not afraid to express ideas or
- Make workers feel valued, and encourage them to look for better ways to do things.
9. Eliminate barriers between departments and encourage joint problem-solving
-People in research, design, sales, and production must work as a team, to foresee
problems of production and in use that may be encountered with the product or
10. Eliminate the use of numerical goals and slogans to make workers work harder
- Let people know exactly what you want don't make them guess. Don't let words
and nice-sounding phrases replace effective leadership.
11. Use statistical methods for continuous improvement of quality and productivity
instead of number. Quotas
-Look at how the process is carried out, not just numerical targets.
- Measure the process rather than the people behind the process.
12. Remove barriers to pride of workmanship
-This means, inter alia, abolishment of the annual or merit rating and of management
by objective.
13. Encourage education and self-improvement
- Improve the current skills of workers.
- Encourage people to learn new skills to prepare for future changes and challenges.
14. Clearly define managements permanent commitment to quality and productivity.
-The transformation is everybody's job.
- Improve your overall organization by having each person take a step toward quality.
Elements of TQM
Top management commitment and involvement
Customer involvement
Design products for quality
Design production processes for quality
Control production processes for quality
Developing supplier partnerships
Customer service, distribution, and installation
Building teams of empowered employees
Benchmarking and continuous improvement