MET 414

QUALITY MANAGEMENT
Module 1

Dr.J.Hussain
Professor/Mechanical
MEA Engineering College
Perinthalmannan
CO1: To be conversant with important terms for quality management in
organizations
CO2: Have a complete theoretical and practical understanding of the
contributions of Quality Gurus
 You are going to learn about
• Introduction to Quality Engineering
• Definitions of the terms - quality,
• Definitions of the terms - quality planning
• Definitions of the terms-quality control
• Definitions of the terms-quality assurance
• Definitions of the terms-quality management
• Total Quality Management (TQM)
• the TQM axioms
• consequences of total quality
• Barriers to TQM
• Deming approach to TQM
• Juran’s quality trilogy
• Crosby's fourteen steps for quality
improvement
 Introduction to Quality Engineering/MGT

Quality engineering is the discipline of engineering

concerned with the principles and practice of product
and service quality assurance and control.
Roll of Quality Engineer
The quality engineer's responsibilities include designing
quality standards, inspecting materials, equipment,
processes, and products, developing quality control
systems, and determining corrective actions. You will
also work with managers and supervisors to
implement quality measures.
Changing Criteria of quality
 Benefits of quality management
• Increases in
– System Efficiency
– Morale of workman
– Customer satisfaction
• Decrease in
– Complaints
– Costs
– Production Time
 Definitions of the terms - quality,
• In general- the standard of something as
measured against other things of a similar kind;
• the degree of excellence of something
• Quality is conforming to specification
• Fitness for use
• Customer satisfaction
• Delighting the customer
• Enchanting the Customer
Definitions of Quality
Quality means different to different people:

1. Customer-Based: Fitness for use, meeting customer expectations.

2. Manufacturing-Based: Conforming to design, specifications, or

requirements. Having no defects.

3. Product-Based: The product has something that other similar

products do not that adds value.

4. Value-Based: The product is the best combination of price and

features.

5. Transcendent: It is not clear what it is, but it is something good...

Quality is the ability of a product or service to
consistently meet or exceed customer
expectations.
A philosophy that involves everyone in an
organization in a continual effort to improve
quality and achieve customer satisfaction.
The ability to meet standards
a. Peculiar and essential character.
b : an inherent feature.
c: degree of excellence.
d : superiority in kind.
e : a distinguishing attribute.
f : an acquired skill.
g : the character in a logical proposition of being
affirmative or negative.
h : vividness of hue.
 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
• Safety - Risk of injury
• Reliability - consistency of performance Durability - useful
life of the product/service
• Perceived Quality - indirect evaluation of quality (e.g.
reputation)
• Service after sale - handling of customer complaints or
checking on customer satisfaction
 Examples of Quality Dimensions

Dimension (Product) (Service)

Automobile Auto Repair
1. Performance Everything works, fit & All work done, at agreed
finish price
Ride, handling, grade of Friendliness, courtesy,
materials used Competency, quickness
2. Aesthetics Interior design, soft touch Clean work/waiting area

3. Special features Gauge/control placement Location, call when ready

Convenience Cellular phone, CD Computer diagnostics
High tech player

4. Safety Antilock brakes, airbags Separate waiting area

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 Examples of Quality Dimensions (Cont’d)

Dimension (Product) (Service)

Automobile Auto Repair
5. Reliability Infrequency of breakdowns Work done correctly,
ready when promised

6. Durability Useful life in miles, resistance Work holds up over

to rust & corrosion time

7. Perceived Top-rated car Award-winning service

quality department

8. Service after Handling of complaints and/or Handling of complaints

sale requests for information
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Determinants of Quality

Ease of
Design
use

Conforms
to design Service

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 Determinants of Quality

1. Design, planned quality

Intension of designers to include or exclude features in a product or service
EX: Designed size, actual durability
Customer input is accounted for
2. Conformance to design (standards), executed quality
The degree to which goods or services conform to the intent of the designers
EX: Actual size, actual durability
Design for quality: Design with quality in mind
3. Ease of use
EX: Directions, instructions, training
4. Service after delivery

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 Why do we need quality?
• Quality makes customer happy
– Companies exist to “delight the customer”
• Poor Quality reduces productivity and increases costs.
– “It is not quality that costs, it is all the things you do because you
do not have quality in the first place.” [Crosby 1979]
• Quality is no longer an order winner, it is merely an order
qualifier.
• High technology and complicated products make quality a
necessity. Computerization and automation increases
standardization and quality levels.
– “What technology makes possible today, it makes necessary
tomorrow.” [Kolesar 1991]

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 Responsibility for Quality

• Top management, past vs. current

• Design teams
• Procurement departments, standard input
• Production/operations, processes conform to
standards
• Quality assurance
• Packaging and shipping, damaged in transit
• Marketing and sales, customer wishes
• Customer service, quality feedback
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 Definitions of the terms - quality planning
• The role of quality planning is to design a process that will be able
to meet established goals under operating conditions. Quality
planning is a methodology which can be used when a situation
exhibits one or more of the following characteristics
• A service has never existed before.
• Customer requirements are not known
• The existing service/process performance is not capable of meeting
customer requirements
• The service/process is ad hoc; extremely variable; never been well
defined or worked on before as a whole
• The environment is unstable, characterized by major market,
technology or organizational change
• Performance data does not exist or it would require excessive
time/expense to collect data
 Definitions of the terms-quality control

• Quality control (QC) is a procedure or set of

procedures intended to ensure that a
manufactured product or performed service
adheres to a defined set of quality criteria or
meets the requirements of the client or
customer. QC is similar to, but not identical
with, quality assurance (QA).
 quality assurance
• A quality assurance personnel is responsible
for ensuring that products and services meet the
established standards set by the company. Duties
include maintaining strong overall quality control
of products made by the company adhering to
reliability, performance and customer expectation.
• Quality Assurance
– Emphasis on finding and correcting defects before
reaching market
QA primarily focuses on the processes and procedures
that improve quality, including training, documentation,
monitoring and audits.
QC focuses on the product to find defects that remain
after development. QC professionals find these issues in a
variety of ways, including software testing and beta or
canary testing.
 Costs of Quality

• 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.
– External Failure Costs
• All costs incurred to fix problems that are detected after
the product/service is delivered to the customer.

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 Costs of Quality

• 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.
– External Failure Costs
• All costs incurred to fix problems that are detected after
the product/service is delivered to the customer.

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 Costs of Quality (continued)

• Appraisal Costs
– Product and/or service inspection costs.
– EX: Time and effort spent for course evaluations
• Prevention Costs
– Quality training, planning, customer assessment, process
control, and quality improvement costs to prevent defects
from occurring
– EX: Instructor training for better course presentation

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

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 The Quality Gurus
• Walter Shewhart
– “Father of statistical quality control”
• W. Edwards Deming
• Joseph M. Juran
• Armand Feignbaum
• Philip B. Crosby
• Kaoru Ishikawa
• Genichi Taguchi

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 Some History of Quality: Pre WWII
• 1920s, Physicist W.Shewhart of Bell labs studied variation in
the production processes for the first great US national
telephone network.
– Common cause variation due to minor differences
– Assignable cause variation due to major differences
– Statistical control (Shewhart) charts (Chapter 10)
• 1940s, NYU stat professor W.E.Deming edits Shewhart’s
book
– Deming’s 14 points
– Plan-Do-Study-Act (PDSA) cycle

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 Some History of Quality: During WWII
• 1930s, H.Dodge and H.Romig of Bell labs studied accepting
a lot after partial inspection
– Acceptance sampling: Is a lot of N products good if a sample of n
(n<N) products contain only c defects? (Chapter 10 supplement)
– 1940s, Statistical research group at Columbia University supported
by US war department studied variations of acceptance sampling,
such as sequential sampling. Their work grew into MIL STD 105 D
quality standard which became ANSI standard for quality.

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 Some history of Quality: Post WWII
• US industry disregards quality. Deming and Juran (actually a
body of Shewhart, Dodge and Romig in 1926) make an
exodus to Japan to preach: Quality
1. will be the basis for future competition
2. and productivity are positively correlated
3. belongs to the upper management
4. best achieved with Deming wheel =continuous improvement
• 1960’s, A.Feigenbaum’s unified and integrated view of
quality also resonate in Japan rather than US.
– Total Quality - Control

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 Some History of Quality: About 70’s
• 1960’s, P.B.Crosby goes to extreme
– zero defects
– do it right the first time –becomes a strong tenet of JIT
• K.Ishikawa introduces cause-effect (fishbone) diagrams
(Chapter 11)
• G.Taguchi introduces his quality cost function
– Quadratic penalty for variations from standards

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 quality management
• Quality management 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.
The seven principles of quality management are:

• Engagement of people.
• Customer focus.
• Leadership.
• Process approach.
• Improvement.
• Evidence-based decision making.
• Relationship management.
 Total Quality Management (TQM)
• Total quality management is a structured approach to
overall organizational management.
• The focus of the process is to improve the quality of an
organization's outputs, including goods and services,
through the continual improvement of internal practices.
• Deming has been universally acclaimed as one of the
Founding Fathers of Total Quality Management, if not the
Founding Father. The revolution in Japanese
manufacturing management that led to the economic
miracle of the 1970s and 1980s has been attributed largely
to Deming.
 Total Quality Management (TQM)
Quality means different to different people. There are five ways of looking at quality definitions
I. Transcendent Definition:
"Quality is neither mind nor matter, but a third entity independent of the two…even through Quality
cannot be defined, you know what it is."
II. Product-Based Definition:

"Quality refers to the amounts of the unpriced attributes contained in each unit of the priced attribute."

III. User-Based Definition:

"Quality is fitness for use." (J.M. Juran, ed., Quality Control Handbook, p2).
IV. Manufacturing-Based Definition:
"Quality [means] conformance to requirements." "Quality is the degree to which a specific product
conforms to a design or specification."
V. Value-Based Definition:

"Quality means best for certain customer conditions. These conditions are (a) the actual use and (b) the
selling price of the product."
What is TQM? (Continued)
 TQM is defined as both philosophy and a set of guiding
principles that represents the foundation of a continuously
improving organization.
 It is the application of quantitative methods and human
resources to improve all the processes within an organization
and exceed customer needs now and in future.
 TQM integrates fundamental management techniques,
existing improvement efforts, and technical tools under
disciplined approach.
 Total Quality Management (TQM)
In trying to define TQM is it is well worth considering the relevance and meaning of
the three words in it's title.:

Total - The responsibility for achieving Quality rests with everyone a business no
matter what their function. It recognizes the necessity to develop processes across
the business, that together lead to the reliable delivery of exact, agreed customer
requirements. This will achieve the most competitive cost position and a higher
return on investment.

Quality - The prime task of any business is to understand the needs of the customer,
then deliver the product or service at the agreed time, place and price, on every
occasion. This will retain current customers, assist in acquiring new ones and lead
to a subsequent increase in market share.

Management - Top management lead the drive to achieve quality for customers, by
communicating the business vision and values to all employees; ensuring the right
business processes are in place; introducing and maintaining a continuous
improvement culture.
 Total Quality Management (TQM)
Antecedents of Modern Quality Management

 Guilds of Medieval Europe

(From the end of 13th Century to Early 19th Century)

 The Industrial Revolution

(From the end of 17th Century to 1800s)

 The World War II

(From 1938 to 1945)

 Post World War Era

(After 1945)
 Total Quality Management
A philosophy that involves everyone in an
organization in a continual effort to improve
quality and achieve customer satisfaction.

T Q M

• Continuous improving
• Involvement of everyone
• Customer satisfaction
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 What is TQM?
 TQM is the enhancement to the traditional way of doing
business.
 It is a proven technique to guarantee survival in the world-
class competition.
 TQM is for the most part common sense.
 Analyzing three words (TQM), we have:
Total—Made up of the whole
Quality—Degree of excellence a product or service provides
Management—Act, art, or manner of handling, controlling,
directing, etc.
 Therefore TQM is the art of managing the whole to achieve
the excellence.
 The TQM Approach

• Find out what the customer wants

• Design a product or service that meets or
exceeds customer wants
• Design processes that facilitates doing the
job right the first time
– Pokayoke : fail-safing : foolproofing
• Laptop – projector plug shapes
• Keep track of results
• Extend these concepts to suppliers
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 Elements of TQM

• Continual improvement: Kaizen

• Competitive benchmarking
• Employee empowerment
• Team approach
• Decisions based on facts
• Knowledge of tools
• Supplier quality
• Champion
• Quality at the source: The philosophy of making each
worker responsible for the quality of his or her work.
• Suppliers

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 Obstacles to Implementing TQM

• Lack of:
– Company-wide definition of quality
– Strategic plan for change
• Resistance to a change
– Customer focus
– Real employee empowerment
• Red tape
– Strong motivation
– Time to devote to quality initiatives
– Leadership
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 Criticisms of TQM

• Blind pursuit of TQM programs

• Programs may not be linked to strategies
• Quality may not be tied to
– market performance
– profitability
• Failure to carefully plan a program

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 The TQM axioms

(i) Commitment (to never ending quality improvement & innovation).

(ii) Scientific knowledge (of the proper tools and techniques for the 'technical
change').
(iii) Involvement (all in one team for the social change).
The Consequences of Poor Quality

• Loss of business
• Liability
• Productivity
• Costs

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 consequences of poor quality
• Poor quality can have several business-related
consequences. The most common are lost
customers, lower productivity, and increased
costs. In some cases, poor quality can also
lead to product liability claims. In some cases,
poor quality can also lead to legal action
against the manufacturer or supplier.
 consequences of total quality

• The successful implementation of TQM increases the

likelihood that employees will be motivated to perform
well and remain with the company. Employees who are
highly committed to their organizations contribute more
effectively to company growth and success.
• It helps an organization achieve greater consistency in
tasks and activities that are involved in the production of
products and services. It increases efficiency in processes,
reduces wastage, and improves the use of time and other
resources. It helps improve customer satisfaction.
 Barriers to TQM
• Lack of management commitment
• Inability to change organizational culture
• Improper planning
• Lack of continuous training and education
• Incompatible organizational structure and isolated individuals
and departments
• Ineffective measurement techniques and lack of access to data
and results.
• Paying inadequate attention to internal and external customers.
• Inadequate use of empowerment and teamwork
 Deming approach to TQM
1. Create constancy of purpose for improving products and
services.
2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone;
instead, minimize total cost by working with a single supplier.
5. Improve constantly and forever every process for planning,
production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical
goals for management.
12. Remove barriers that rob people of pride of workmanship,
and eliminate the annual rating or merit system.
13. Institute a vigorous program of education and self-
improvement for everyone.
14. Put everybody in the company to work accomplishing the
transformation. (Create a structure in top management that will
push on the above points every day
 Juran’s quality trilogy

Juran was one of the first to point out the cost of poor quality.
He illustrated this concept in “Juran trilogy,” a cross-functional
management approach, constituted of three managerial
processes:
1. Quality planning,
2. quality control, and
3. quality improvement.
He pointed out that without change, there will be a constant
waste. However, margins will be higher and the increased
costs are recouped after the improvement.
 Crosby's fourteen steps for quality
improvement
• Crosby gave 14 steps for process improvement. They are as follows:

• 1. Management commitment towards quality should be clear to all in the

organization and
• those outside it.
• 2. Creation of quality improvement teams with senior representatives from all
departments.
• 3. Continuous measurement of processes to determine current and potential
issues related to
• quality.
• 4. The cost of poor quality has to be calculated.
• 5. Quality awareness has to be raised in the organization.
• 6. Corrective actions should be taken to address quality issues.
• 7. Establishment of a Zero Defect committee to monitor the progress of quality
improvement.
• 8. Quality improvement training to all the employees.
• 9. Organize zero defect days in the organization.
• 10. All employees should be encouraged to set their own
quality improvement goals.
• 11. Obstacles to quality should be discussed with
employees in an open communication.
• 12. Participants efforts should be recognized.
• 13. Quality councils should be created.
• 14. Quality improvement is a continuous process. It
keeps going.
A comparison of Deming, Juran, and Crosby