Unit 1Quality Concepts

8/6/2019 Unit 1Quality Concepts

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TQM - UNIT 1


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What is quality?

What does quality meanto you?What might

it meanto others?

How do you describe qualityto others?Howdo you know quality

Whenyou see it?Whatare qualitys

component elements?


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Quality means features of products which meetcustomer needs and thereby provide customersatisfaction.

Quality improvement related to features usually costsmore.

Qualityalso means freedom from deficiencies.These deficiencies are errors that require rework(doing something over again) or result in failuresafter a producthas been delivered to a customer.Such failures may result in claims, customerdissatisfaction, or dire consequences to the user.

Quality improvement related to deficiencies usuallycosts less.

Jurans view considers products, defects, andcustomers.


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RELATIVE IMPORTANCE OF SERVICE QUALITY DIMENSIONS


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Quality costs are the costs associated withpreventing, finding, and correcting

defective work.

These costs are huge, running at 20% - 40% of

sales. Many of these costs can besignificantly reduced or completelyavoided.

One of the key functions of a Quality

Engineer is the reduction of the total cost of

qualityassociated witha product.


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Prevention Costs: Costs of activities that are specifically designed to preventpoor quality. Examples ofpoor quality include coding errors, design errors,mistakes inthe user manuals, as wellas badly documented or unmaintainably

complex code.

Appraisal Costs: Costs of activities designed to find quality problems, such ascode inspections and anytype of testing.

Design reviews are part preventionand partappraisal. To the degree thatyoure

looking for errors inthe proposed design itself whenyou do the review, youredoing anappraisal. To the degree thatyou are looking for ways to strengthenthe

design, you are doing prevention.

Failure Costs: Costs that result from poor quality, such as the cost of fixingbugs and the cost of dealing with customer complaints.

Internal Failure Costs: Failure costs that arise before your company supplies itsproduct to the customer. These costs go beyond the obvious costs of finding andfixing bugs. Many of the internal failure costs are borne by groups outside of Product

Development.

External Failure Costs: Failure costs that arise after your company supplies theproduct to the customer, suchas customer service costs, or the cost of patching areleased productand distributing the patch.

Total Cost of Quality: The sum of all the costs (Prevention + Appraisal +Internal Failure + External Failure).


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Examplesof QualityCostsAssociatedwithSoftwareProducts

Prevention


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Appraisal


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Internal Failure


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External Failure


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Seller: external failure costs Customer: failure costs

These are the types of

costs absorbed bythe

seller that releases adefective product

Technical support calls

Preparation of support

answer books

Refunds

Replacement with updated

product

PR work to soften drafts of

harsh reviews

Lost customer goodwill

Costs imposed by law

These are the types ofcosts absorbed by thecustomer who buys a

defective product.Wasted time

Lost data

Lost business

Embarrassment

Frustrated employees quit

Failure of demos to customersand other tasks that couldonly be done once

Cost of replacing product

Cost of reconfiguring thesystem

Cost of recovery software Cost of tech support

Injury / death


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Everyone should be involved

customers should be provided withan uniform

quality productthat meets their expectations

the way Total Quality is conducted


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1. A committed and involved managementtoprovide long term top-to bottomorganizational support

2. An unwavering focus onthe customer ,both internallyand externally

3. Effective involvementand utilization of theentire workforce

4. Continuous improvement of the businessand production process

5. Treating Suppliers As Partners

6. Establish performance measures for theprocesses


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Inthe 1920s statisticaltheory beganto be

applied effectivelyto quality control, and in

1924 Shewhart made the first sketch of a

modern control chart. His work was laterdeveloped byDeming and the early work of

Shewhart, Deming, Dodge and Romig

constitutes much of whattoday comprises

the theory of statistical process control(SPC). However, there was little use of these

techniques in manufacturing companies until

the late 1940s.


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Atthattime, Japans industrial system wasvirtually destroyed, and ithad a reputation forcheap imitation products and an illiterateworkforce.

The Japanese recognised these problems and setabout solving them withthe help of somenotable quality gurus Juran, Deming andFeigenbaum.

TQM Leaders

W. E.D

eming J. M. Juran

K. Ishikawa

A. V. Feigenbaum

P. B. Crosby


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Central belief:

94% of problems due to management

6% ascribed to workers

Results of Total Quality:- Higher productivity

- Lower costs

- Increased market share

- Long-term stability

DemingCircle

Plan

Do

Check

Act


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1. Constancy of purpose

2. The new philosophy

3. Cease mass inspection

4. End lowest price

purchasing5. Constantly improve

systems

6. Train everyone

7. Institute leadership

8. Drive out fear

9. Break down barriers

10. Eliminate exhortations

11. Eliminate targets

12. Permit pride ofworkmanship

13. Encourage education

14. Top managementscommitment


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Management is responsible for quality failure andquality improvement

Philosophicaltrilogy: quality planning,qualitycontroland quality improvement

Introduces the term internal customers

7-Step program:1. Establish quality policies and guides

2. Establish quality goals

3. Design quality plans to reachthose goals

4. Assign responsibility for the plans

5. Provide necessary resources6. Review progress against goals

7. Evaluate manager performance vs. goals


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Controlhas 4 steps:

1. Setting quality standards

2. Appraising conformance to standards

3. Acting whenthe standards are exceeded4. Planning for improvement inthe standards

10 benchmarks of Quality:

7. Q is an ethic

8. Requires continuous improvement

9. Is the most cost-effective, leastcapital intensive route to productivity10. Is implemented withatotal

system connected with customers and

suppliers

1. Q is a company-wide process

2. Q is whatthe customer says it is

3. Qand costare a sum notadifference4. Requires individualand teamwork

5. Q is a way of managing

6. Q and innovation are mutually

dependent


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Commitment of everybody inthe

organization

The companys success depends onthe

participation of everybodyOpportunities for complete participation by

everybody

Opportunities to do their job properly


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LEADERSHIP-ConceptLeading People

Influencing People

Commanding People

Guiding People

Provide Direction

Lead People-----Manage ProcessesHappy

Customer


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Quality CouncilQuality Council of India (QCI)has been set up as ajoint

initiative of the Government of Indiaand the Indian

Industry. It is anon-profitautonomous body registered as a

society under the Societies Registration Act.

The objectives of QCI are to:

Establishanaccreditation structure inthe country

Provide information on Quality & related standards

Spread quality movement in India

Besides establishing anationalaccreditation structure, QCI

will provide strategic directionto the quality movement in

the country.


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QUALITY STANDARDS

Quality Standards were developed to assist

companies control qualityand maintainahigh

standard of customer satisfaction.

Qualityhas become alot more thanthat ,quality

standards canassistyour company with goodmanagement practices, reduce risk and increase

profit margins.

A good quality system should not be writtenjust

to satisfythe accreditation process, but shouldbe written withthe company's business practices

in mind and to enhance procedures and policies

to ensure sound operation.


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QUALITY STANDARDS

The principles of the ISO Quality System can be

applied to every company, regardless of its size,

type or industry.

Having a good quality system in place will ensurethatyour products, services are of the highest

standards, your customers are happyand the

future of your organisation is heading inthe right

direction.

ISO is the International Organization forStandardization, based in Switzerland it was

established in 1947 to develop common

international standards. Ithas members from

over 140 countries worldwide.


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ISO published its first standards in 1987 and revised in1994. ISO 9000 refers to the set of qualitymanagement standards. The 1994 standards are

knownas ISO9001. A new set of standards werereleased in November 2001, these are knownas ISO9001:2000. The transition from an existing ISO9001standard to a ISO 2000 standard can be achievedrelatively easily. If you are starting anew QualityManagement System, it would be bestto use the new

ISO 2000 standards.

ISO 9000 is primarily concerned with qualitymanagement----anything thataffects a product orservice required bya customer and whatthatorganisation does to ensure thata certain standard of

quality is achieved and maintained. ISO 14000 is primarily concerned withthe

environment----whatan organisation does to managethe impact of its activities onthe environment.


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BARRIERS TO TQM

Poor Planning

Lack of Management Commitment

Resistance of the workforce

Lack of Proper Training

Teamwork complacency

Use of an off-the-shelf program

Failure to change organizational philosophy

Lack of resources provided

Lack of effective measurement of quality

improvement

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Unit 1Quality Concepts

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