NAME - SIDHARTH KUMAR

ROLL – 2314106770

PROGRAM – BACHELOR OF BUSINESS ADMINISTRATION (BBA) SEM – 2

COURSE NAME AND CODE – QUALITY MANAGEMENT—DBB1204

 ASSINGMENT SET 1

Q.1. Discuss Deming Cycle and Crosby’s Four Absolutes of Quality.

Ans. The Deming Cycle and Crosby's Four Absolutes of Quality are two influential
frameworks in the field of quality management, both aiming to improve processes and
enhance the overall quality of products and services. Let's explore each of them in detail:

Deming Cycle (Plan-Do-Check-Act or PDCA):

Developed by Dr.W. Edwards Deming, the PDCA cycle is a continuous improvement model
that consists of four stages:
Plan: Establish objectives and processes necessary to deliver results in accordance with
customer requirements and organization policies.
Do: Implement the plan, execute the process, and collect data for analysis.
Check: Assess the data and results obtained during the "Do" stage. Compare the actual results
against the expected results.
Act: Take corrective actions based on the results of the "Check" stage. Standardize the
improved practices and prepare for the next cycle.
The Deming Cycle emphasizes the iterative nature of improvement, encouraging
organizations to continually reassess and refine their processes. It promotes a culture of
continuous learning and adaptation.
Crosby's Four Absolutes of Quality:
Philip Crosby, another quality management expert, proposed the Four Absolutes of Quality as
fundamental principles for achieving and maintaining high-quality standards:
Quality is defined as conformance to requirements: For a product or service to be of high
quality, it must meet the specified requirements and standards. This emphasizes the
importance of understanding and meeting customer expectations.
The system of quality is prevention: Crosby emphasizes the significance of preventing
defects and errors in the production process rather than detecting and fixing them later. This
involves implementing proactive measures to ensure quality at every stage.
The performance standard is zero defects: Striving for perfection and zero defects is crucial in
achieving high-quality outcomes. Crosby believed that organizations should set the bar high
and continuously work to eliminate errors.
The measurement of quality is the price of non-conformance: Crosby suggested that
organizations should measure the cost of poor quality, including the expenses associated with
defects, rework, and customer dissatisfaction. This helps in quantifying the impact of not
adhering to quality standards.
Crosby's Four Absolutes emphasize the importance of a proactive approach to quality
management, prevention of defects, and a commitment to continuous improvement.
In summary, while the Deming Cycle provides a structured framework for continuous
improvement through a series of iterative steps, Crosby's Four Absolutes of Quality offer
fundamental principles for maintaining high-quality standards, with a focus on prevention,
zero defects, and the cost of non-conformance. Both frameworks contribute to the overall
goal of enhancing quality in products and services.
Q2.How is the McKinsey 7S model used for carrying out strategic planning and
implementaHon?

Ans. The McKinsey 7S model is a management framework developed by consulHng firm

McKinsey & Company. It idenHfies seven key internal elements of an organizaHon that need
to be aligned for effecHve strategy implementaHon and organizaHonal success. The 7S model
includes:

Strategy: The plan devised to maintain and build compeHHve advantage over the
compeHHon.
Structure: The organizaHonal structure and reporHng relaHonships that determine how tasks
are divided, grouped, and coordinated.
Systems: The processes and procedures that guide how work is done, including both formal
and informal processes.
Skills: The capabiliHes and competencies that exist within the company, including both
technical and interpersonal skills.
Staff: The people and their individual capabiliHes, roles, and responsibiliHes within the
organizaHon.
Style: The leadership style and organizaHonal culture of the company.
Shared Values: The core values and beliefs that shape the organizaHon's idenHty and guide
decision-making.
Here's how the McKinsey 7S model can be used for strategic planning and implementaHon:

Assessment and Analysis:

Diagnosis: OrganizaHons use the model to assess and diagnose the current state of each "S"
(Strategy, Structure, Systems, Skills, Staff, Style, Shared Values).
IdenHfy misalignments: IdenHfy any misalignments or gaps between the different elements.
Strategic Planning:
Define strategy: Clearly arHculate the organizaHon's strategy and desired outcomes.
Align elements: Ensure that each of the 7S elements is aligned with and supporHve of the
strategic objecHves.
ImplementaHon:
Structural changes: If necessary, adjust the organizaHonal structure to support the strategy.
Process improvements: Align and enhance systems and processes to facilitate the execuHon
of the strategy.
Skills development: IdenHfy and address any skill gaps that may hinder successful
implementaHon.
Culture and leadership: Ensure that leadership style and organizaHonal culture are aligned
with the strategic goals.
Communicate shared values: Reinforce and communicate the core values that support the
strategic direcHon.
ConHnuous Monitoring and AdaptaHon:
Regular assessments: ConHnuously monitor and assess the alignment of the 7S elements
with the strategy.
AdaptaHon: Make adjustments to any element that becomes misaligned due to changes in
the internal or external environment.
CommunicaHon and Engagement:
Communicate changes: Clearly communicate any changes in strategy, structure, or other
elements to all stakeholders.
Engage employees: Ensure that employees understand and are engaged with the
organizaHon's strategy and values.
The McKinsey 7S model is a holisHc approach that emphasizes the interconnectedness of
various organizaHonal elements. It helps organizaHons idenHfy areas of strength and
weakness, ensuring that all components work together harmoniously to achieve strategic
objecHves. It is not a one-Hme exercise but a tool that can be used iteraHvely as the
organizaHon evolves and adapts to changing circumstances.

Q.3 What is cost of quality? Why is it important to measure? List common costs of poor
quality.

ANS. he Cost of Quality refers to the total cost incurred by an organizaHon to ensure the
quality of its products or services. It includes both the costs of conformance (prevenHon and
appraisal costs) and the costs of non-conformance (internal and external failure costs). The
concept is oaen abributed to quality management pioneers like Philip Crosby, who
highlighted the significance of invesHng in prevenHon to avoid the higher costs associated
with defects.

Categories of Cost of Quality:

PrevenHon Costs:
Costs incurred to prevent defects and errors from occurring in the first place.
Examples: Training programs, quality planning, process improvement iniHaHves, quality
control procedures.
Appraisal Costs:
Costs associated with the assessment and evaluaHon of products or processes to ensure
they meet quality standards.
Examples: InspecHon, tesHng, audits, quality control inspecHons.
Internal Failure Costs:
Costs incurred when defects or errors are idenHfied before the product reaches the
customer.
Examples: Rework, scrap, retesHng, downHme due to quality issues.
External Failure Costs:
Costs associated with defects or errors that are idenHfied by customers aaer the product is
delivered.
Examples: Warranty claims, product recalls, customer returns, loss of customer goodwill.
Importance of Measuring Cost of Quality:

Decision-Making: Understanding the CoQ helps management make informed decisions

about resource allocaHon, process improvement, and investment in quality iniHaHves.
ConHnuous Improvement: By measuring CoQ, organizaHons can idenHfy areas where
improvements can be made to reduce overall costs and enhance quality.
Customer SaHsfacHon: High CoQ oaen correlates with poor customer saHsfacHon.
Measuring and reducing CoQ can lead to improved customer experiences and loyalty.
CompeHHve Advantage: OrganizaHons that effecHvely manage and reduce CoQ can gain a
compeHHve advantage by offering higher quality products or services at compeHHve prices.
Resource OpHmizaHon: CoQ analysis can highlight inefficient processes, enabling
organizaHons to allocate resources more effecHvely and reduce waste.
Common Costs of Poor Quality:

Rework and Scrap Costs: The costs associated with fixing defects and reworking products or
components that do not meet quality standards.
Warranty Costs: The expenses incurred for addressing warranty claims and providing
replacements or repairs for products that fail to meet expected quality levels.
Customer Returns: Costs related to processing and managing returned products due to
defects, dissaHsfacHon, or other quality issues.
Lost Sales and Market Share: Poor quality can result in lost sales opportuniHes and a decline
in market share as customers turn to compeHtors offering higher quality alternaHves.
Product Recalls: The expenses associated with recalling and replacing products that pose
safety risks, fail to meet regulatory standards, or have other criHcal defects.
LiHgaHon Costs: Legal expenses and seblements resulHng from lawsuits related to product
defects, injuries, or other quality-related issues.
Damage to ReputaHon: The intangible cost of poor quality includes damage to the
organizaHon's reputaHon, loss of customer trust, and long-term negaHve brand impact.
Measuring and managing the Cost of Quality allows organizaHons to proacHvely address
quality issues, reduce overall costs, and enhance customer saHsfacHon, ulHmately
contribuHng to long-term success and sustainability.

ASSIGNMENT SET 2

Q.4What is meant by Quality Audit? What is its purpose?

Ans. A Quality Audit is a systematic examination of a company's quality management system

(QMS) or a specific aspect of it, conducted by an internal or external party to assess
compliance with established quality standards, procedures, and regulations. The purpose of a
quality audit is to evaluate the effectiveness and efficiency of an organization's quality
processes, identify areas for improvement, and ensure that the organization is meeting its
quality objectives. Quality audits are a fundamental component of quality management and
are commonly used to drive continuous improvement.

Key aspects of a Quality Audit:

Scope:
Audits can cover the entire quality management system or focus on specific processes,
departments, or areas of concern.
Internal vs. External Audits:
Internal Audit: Conducted by individuals within the organization, such as internal quality
auditors or employees from different departments.
External Audit: Carried out by independent third-party auditors, often as part of certification
processes (e.g., ISO certification).
Objectivity:
Auditors aim to provide an unbiased and objective assessment of the organization's quality
management processes.
Compliance and Conformance:
Assess the extent to which the organization's practices conform to established standards,
regulations, and quality management system requirements.
Identification of Non-Conformities:
Non-conformities are instances where the organization does not meet specified requirements.
Auditors identify these issues for corrective action.
Continuous Improvement:
Quality audits contribute to the process of continuous improvement by highlighting areas
where processes can be enhanced for better efficiency and effectiveness.
Purposes of Quality Audits:

Compliance Verification:
Ensure that the organization adheres to applicable industry standards, regulations, and its own
internal policies and procedures.
Identify Non-Conformities:
Discover and document instances where the organization falls short of meeting quality
requirements or standards.
Process Effectiveness:
Evaluate the efficiency and effectiveness of quality management processes to identify
opportunities for improvement.
Risk Management:
Assess potential risks to quality and identify measures to mitigate or eliminate those risks.
Verification of Corrective Actions:
Confirm that corrective actions for previously identified non-conformities have been
implemented and are effective.
Training Needs Assessment:
Identify areas where employees may need additional training to ensure better understanding
and adherence to quality procedures.
Supplier Evaluation:
Assess the quality performance of suppliers and vendors to ensure they meet specified
requirements.
Certification and Accreditation:
For organizations seeking ISO certification or other quality-related accreditations, audits are a
critical step in the certification process.
In summary, quality audits serve as a valuable tool to assess and enhance the effectiveness of
an organization's quality management system. By identifying non-conformities and areas for
improvement, audits contribute to the ongoing process of maintaining and improving the
quality of products and services.

Q.5 Write short notes on the following concepts:

a) RecogniHon and rewards
b) SuggesHon systems

ANS. a) RecogniHon and Rewards:

RecogniHon and rewards are essenHal components of employee moHvaHon and
engagement within an organizaHon. These pracHces aim to acknowledge and appreciate
employees' contribuHons, fostering a posiHve work environment and reinforcing desired
behaviors. Here are key points:

RecogniHon: Involves acknowledging employees' efforts, achievements, and posiHve

behaviors. RecogniHon can be formal or informal and may take the form of praise,
commendaHons, or public acknowledgment.
Rewards: Entail tangible incenHves provided to employees in recogniHon of their
outstanding performance or accomplishments. Rewards can include bonuses, salary
increases, promoHons, or non-monetary perks such as gia cards, extra Hme off, or other
benefits.
Purpose: RecogniHon and rewards contribute to employee saHsfacHon, morale, and
retenHon. They create a culture of appreciaHon and moHvaHon, encouraging employees to
excel in their roles and go above and beyond expectaHons.
Impact: EffecHve recogniHon and rewards programs can improve overall workplace
producHvity, enhance teamwork, and create a posiHve organizaHonal culture. Employees
feel valued and are more likely to be engaged and commibed to their work.
Tailored Approach: Recognizing that different individuals may be moHvated by different
types of recogniHon and rewards, organizaHons oaen adopt a tailored approach to ensure
that incenHves align with individual preferences and organizaHonal goals.

b) SuggesHon Systems:

SuggesHon systems are mechanisms within organizaHons that encourage employees to

contribute ideas, suggesHons, and feedback for improving processes, products, or the overall
work environment. Here are key points:

Open CommunicaHon: SuggesHon systems promote open communicaHon and collaboraHon

by providing employees with a plaiorm to share their insights and ideas. This fosters a
culture of conHnuous improvement.
Employee Involvement: Employees are encouraged to acHvely parHcipate in the decision-
making process by offering suggesHons for operaHonal enhancements, cost savings,
innovaHon, or any aspect that could benefit the organizaHon.
Process: OrganizaHons oaen establish a structured process for submijng, evaluaHng, and
implemenHng suggesHons. This may involve a dedicated team or commibee responsible for
reviewing and acHng on the suggesHons.
RecogniHon: Recognizing and rewarding employees for their valuable suggesHons can
further incenHvize parHcipaHon. Acknowledging contribuHons reinforces the idea that
employees' input is valued and appreciated.
ConHnuous Improvement: SuggesHon systems contribute to a culture of conHnuous
improvement, allowing organizaHons to adapt to changing circumstances, enhance
efficiency, and stay compeHHve in the market.
Feedback Loop: Establishing a feedback loop is crucial. CommunicaHng the outcomes of
implemented suggesHons and providing updates on the progress of suggesHons not only
keeps employees informed but also reinforces transparency and trust.
Challenges: Some challenges associated with suggesHon systems include ensuring that all
ideas are considered, addressing a large volume of suggesHons, and managing expectaHons
regarding which suggesHons can be implemented.
In summary, both recogniHon and rewards, as well as suggesHon systems, play vital roles in
fostering a posiHve and innovaHve workplace culture. They contribute to employee
saHsfacHon, engagement, and the overall success of the organizaHon.

Q.6 Discuss about IMC Ramakrishna Bajaj National Quality Award

ANS. As of my last knowledge update in January 2022, there isn't a specific award called
the "IMC Ramakrishna Bajaj National Quality Award." However, there are two separate
entities: the IMC (Indian Merchants' Chamber) Ramakrishna Bajaj National Quality Award
and the Ramakrishna Bajaj National Quality Award. Let me provide information on both:

IMC Ramakrishna Bajaj National Quality Award:

The IMC Ramakrishna Bajaj National Quality Award is an award presented by the Indian
Merchants' Chamber (IMC) to recognize and honor organizations that have demonstrated
excellence in quality and business performance. The award is named after Shri Ramakrishna
Bajaj, a prominent industrialist and philanthropist.
Key features:
Objective: The award aims to promote and encourage quality excellence in Indian
organizations across various sectors.
Criteria: Organizations are evaluated based on criteria related to leadership, strategy,
customer focus, measurement, analysis, and knowledge management, workforce focus,
operations focus, and results.
Categories: The award may have different categories, such as large manufacturing, large
service, small and medium enterprises (SMEs), and more.
Process: The evaluation process typically involves a rigorous assessment by a panel of
experts who review the organization's practices and performance against established criteria.
Recognition: Winning the IMC Ramakrishna Bajaj National Quality Award is a prestigious
acknowledgment of an organization's commitment to quality and continuous improvement.
Ramakrishna Bajaj National Quality Award:
The Ramakrishna Bajaj National Quality Award, often referred to as the Bajaj Award, is an
award instituted by the IMC in collaboration with the Quality Council of India (QCI). The
award is named in honor of Shri Ramakrishna Bajaj, a respected industrialist and
philanthropist. This award is based on the criteria adapted from the Malcolm Baldrige
National Quality Award of the United States.
Key points:
Purpose: The award aims to recognize and celebrate Indian organizations that demonstrate
outstanding performance and achievements in quality management and overall business
excellence.
Categories: Similar to the IMC Ramakrishna Bajaj National Quality Award, this award may
have different categories for large manufacturing, large service, SMEs, and other sectors.
Evaluation Criteria: The assessment criteria cover leadership, strategic planning, customer
focus, measurement and analysis, workforce focus, process management, and business
results.
Process: The evaluation process involves a comprehensive examination of an organization's
systems, processes, and results by a team of qualified assessors.
Significance: Winning the Ramakrishna Bajaj National Quality Award is a significant
achievement for organizations in India, signifying their commitment to quality, innovation,
and continuous improvement.
Please note that the specifics of these awards may change over time, and it's advisable to
check the latest information from official sources for the most accurate and up-to-date details