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Amity Business School

1

Amity Business School

MBA, Semester II

QUALITY MANAGEMENT

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Amity Business School

Managing Quality

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Amity Business School

According to J.M. Juran:

Quality is Fitness for use

According to Philip Crosby:

Quality is Conformance to specifications

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Amity Business SchoolQuality

Meeting, or exceeding, customer

requirements now and in the future.

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Amity Business SchoolDimensions of Quality

QUALITY

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Amity Business SchoolQuality of Design

Determined before the product is

produced

Determined by market research

Translates the requirements of

customers into specifications

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Amity Business SchoolQuality of Conformance

Producing a product that meets the

specifications

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Amity Business SchoolThe Quality Cycle

MARKETING

Interprets customer needs

Works with customer to

design product to fit

operations

Interpretation of needs

CUSTOMER

Specifies quality needs

Needs

OPERATIONS

Produces the product or

services

QUALITY CONTROL

Plans and monitors

quality

Product

ENGINEERINGDefines design concept

Prepares specifications

Define quality

characteristics

Specifications

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Amity Business SchoolQuality Costs

Quality Costs are classified into four

categories:

External failure costs,

Internal failure costs,

Appraisal costs, and

Prevention costs.

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Amity Business School

Statistical Process Control

Assignable Causes,

Random Causes.

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Amity Business SchoolProcess Control Chart

x

y

Time

Upper control limit (UCL)

Center line (CL)

Lower control limit (LCL)

Average + 3

standard

deviations

Quality

measurement

average

Average - 3

standarddeviations

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Amity Business SchoolMean Charts

The Goliath Tool Company produces slip-ring bearings, which look like flatdoughnuts or washers. They fit around

shafts or rods, such as drive shafts inmachinery or motors. In the productionprocess for a particular slip ring bearingthe employees have taken 10 samples of

5 slip ring bearings (i.e., n=5). Theindividual observations from each sampleare shown as follows:

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Amity Business SchoolSample Observations

1. 5.02 5.01 4.94 4.99 4.96

2. 5.01 5.03 5.07 4.95 4.963. 4.99 5.00 4.93 4.92 4.99

4. 5.03 4.91 5.01 4.98 4.89

5. 4.95 4.92 5.03 5.05 5.01

6. 4.97 5.06 5.06 4.96 5.03

7. 5.05 5.01 5.10 4.96 4.998. 5.09 5.10 5.00 4.99 5.08

9. 5.14 5.10 4.99 5.08 5.09

10. 5.01 4.98 5.08 5.07 4.99

The company wants to develop mean and R-chart tomonitor the process variability.

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Amity Business SchoolC-chart

The Ritz Hotel has 240 rooms. The hotels housekeeping department isresponsible for maintaining the quality of the rooms appearance andcleanliness. Each individual housekeeper is responsible for an areaencompassing 20 rooms. Every room in use is thoroughly cleaned and itssupplies, toiletries, and so on are restocked each day. Any defects that thehousekeeping staff notice that are not part of the normal housekeepingservice are supposed to be reported to the hotel maintenance. Every room

is briefly inspected each day by a housekeeping supervisor. However, hotelmanagement also conducts inspection tours at random for a detailed,thorough inspection for quality-control purposes. The managementinspectors not only check for normal housekeeping service defects like aninoperative or missing TV remote, poor TV picture quality or reception,defective lamps, a malfunctioning clock, tears or stains in the bedcovers orcurtains, or a malfunctioning curtain pull. An inspection sample includes 12

rooms, i.e., one room selected at random from each of the twelve 20-roomroom blocks serviced by a housekeeper. Following are the results from 15inspection samples conducted at random during a 1 month period:

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Amity Business School Sample Number of Defects

1 122 8

3 16

4 14

5 10

6 11

7 9

8 14

9 13

10 15

11 12

12 1013 14

14 17

15 15

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Amity Business School

The hotel believes that approximately 99

percent of the defects are caused bynatural, random variations in the

housekeeping and room maintenance

service, with 1 percent caused by

nonrandom variability. They want to

construct c-chart to monitor the house

keeping service.