Managing Quality
Managing Quality
• Quality assurance
– The designing process(eg. Documenting standard operating
procedures or SOP according to relevant industry standard)
- A safe, effective product should be the result every time process are followed
- It is a process and procedures that improve quality
• Quality control
- Reactive and exist to identify defects in the quality of products after
they have been happened
• Product Liability
- The courts increasingly hold organizations that design, produce, or
distribute faulty products or services liable for damages or injuries resulting
from their use.
- Legislation such as the Consumer Product Safety Act sets and enforces
product standards by banning products that do not reach those standards
• Global Implications
-For both a company and a country to compete effectively in the global
economy, products must meet global quality, design, and price
expectations.
- Inferior products harm a firm’s profitability and a nation’s balance of
payments.
1. Sales gains Via
● Improve response
● Flexible pricing
● Improved reputation
2. Reduced cost via
● Increased productivity
● Lower rework and scrap cost
● Lower warranty cost
TOTAL QUALITY
MANAGEMENT
● Encompasses entire organization from supplier to
customer
● Stresses a commitment by management to have a
continuing companywide drive toward excellence in all
aspects of products and services that are important to the
customer
• Customer-oriented
• Requires a long-term commitment for continuous improvement of all
processes
• Is a team work
• Requires commitment of the top-level management and continuous
involvement
• Is a strategy for continuous improvement of performance at all levels
Based on the characteristics mentioned above, TQM relies heavily on top
level management in terms of commitment and of their effectiveness in
projecting the right attitudes and culture towards the whole organization to
mobilize the whole workforce.
A. Top management commitment.-Top management should participate in the total
quality program. The top management should make sure that everybody in the
organization is communicated about the TQM
B. Focus on the customer.-Customer satisfaction is the lifeblood of TQM. Customers
include internal and external customers
C. Effective involvement and utilization of the entire workforce.-This concept also
known as ‘Principle of employees’ involvement’ or ‘Respect for people’ recognizes
that each person is responsible for the quality of his work.
D. Continuous improvement.-TQM is based on the quest for improvement. TQM
believes that there is always a better way of doing things, way to make better use
of the company’s total quality resources, a way to be more productive.
E. Treating suppliers as partners-A partnering relationship should be developed both
for the efficiency and effectiveness of implementation of TQM.
F. Establishing performance measures for the processes.-Quantitative data are
necessary to measure the continuous quality improvement.
• Consistently meet customer requirements (internal and external).
• Involve all management levels and maintain open communication.
• Identify training needs and ensure top management involvement.
• Foster a culture of continuous improvement and creativity.
• Prioritize supplier management and value-added work.
• Focus on quality to eliminate waste, reduce costs, and prevent issues.
• Implement performance measures at all levels and promote teamwork.
• 1. Problem-solving discipline
• 2. Interpersonal skills
• 3. Team work
• 4. Quality improvement process
• Puts customers at heart of production process
• Motivational since workers feel more involved and are
making decisions
• Less wasteful than throwing out defective finished products
• Eliminates cost of inspection
• Requires strong leadership-often missing in a business
• Substantial investment in training & support- but return on
investment not immediate
• May become bureaucratic
• Disruption and costs may outweigh benefits
Strategy is the course of action to achieve goals.
Strategic planning is the process where organizations develop
a vision, mission, objectives, and goals. It’s typically led by the
CEO and executive team, determining the strategic
advantages based on the business environment. Strategic
planning covers a 3 to 10-year horizon, making it long-term
planning.
The quality statements include
• Vision statement
• Mission statement
• Quality policy statement
• Also called
Ishikawa or Fishbone
diagram that visually
represent the
relationship between an
effect and its potential
causes, developed by Dr.
Kaoru Ishikawa.
• The diagram's
structure, resembling a
fishbone, categorizes
causes (e.g., Manpower,
Methods, Materials,
Machinery or Policies,
Procedures, People,
Plant) to explore root
causes effectively.
Phase 1: Planning
• Identify what to benchmark;
• Identify comparative companies;
• Determine data collection method & collect data.
Phase 2: Analysis
• Determine current performance gap;
• Project future performance levels.
XEROX ‘S TWELVE STEPS OF BENCHMARKING (1980):
Phase 3: Integration
• Communicate finding and gain acceptance;
• Establish functional goals.
Phase 4: Action
• Develop action plans;
• Implement specific actions & monitor progress;
• Recalibrate benchmarks.
Phase 5: Maturity
• Attain leadership position
• Fully integrate practices into processes.
FACTORS TO BE KEPT IN MIND TO ENSURE SUCCESS
WITH BENCH MARKING:
• Benchmarking must have the full support of senior management and
they should actively Involve, with this process
• For benchmarking team and process training is very imp.
• Benchmarking should be a team activity
• Benchmarking is an ongoing process.
• Benchmarking efforts must be organized, planned, and carefully
managed.
• Used, correctly, benchmarking can lead you to the competitive edge in
today’s business market place.
• Benchmarking is a systematic method by which organizations can
measure themselves against the best Industry practices
• It promotes superior performance by providing an organized
framework through which organization learn how the best in class” do
things.
• It helps for continuous improvement.
• Benchmarking inspire managers (and organization) to compete.
• Through Benchmark process organization can borrow ideas, adopt
and refine them to gain competitive advantages.
• The most resistant criticism of Benchmarking
comes from the idea of copying others. BM is
not a panacea. It is not a strategy nor is it
intended to be a business philosophy.
Therefore, it is a time taking technique.
.
WHAT IS A QUALITY SYSTEM?
• According to the ASQ glossary, a quality management
system (QMS, alternatively “quality system”) is a mechanism
for managing and continuously improving core processes to
“achieve maximum customer satisfaction at the lowest
overall cost to the organization”.
• A Quality Systems serves as an organization's blueprint,
detailing its business model, processes, and performance
specifications.
• Organizations use quality system to control and improve the
effectiveness of the processes used to deliver a quality
product or service and ensure customers stay satisfied.
BENEFITS OF A QUALITY SYSTEM
• Operational consistency
• Establishes clear processes and accountability
• Minimizes mistakes or reworks
• Supports continuous improvement
• Ensures regulatory compliance
• Helps achieve organizational goals efficiently
• Builds customer trust and market competitiveness
COMPONENTS OF A QUALITY SYSTEM
• Quality Planning: This involves identifying the quality standards,
requirements, and procedures to ensure products or services meet
customer needs and expectations.
• Quality Control: This focuses on monitoring and measuring processes
and products to ensure they meet established quality standards.
• Quality Assurance: This encompasses the activities that ensure the
quality management system itself is effective and that processes are
consistently followed to achieve desired outcomes.
• Quality Improvement: This involves continuously seeking ways to
enhance processes, products, and services to achieve higher levels of
quality and customer satisfaction.
ORGANIZATIONS USE DIFFERENT QUALITY SYSTEM
FRAMEWORKS TO STRUCTURE THEIR SYSTEMS.