Chapter8QualityManagement

Unit1QualityStandardsandQualityControlUnit2QualityManagementandQualityCostUnit1QualityStandardsandQualityControl

1.DefinitionsofQuality2.QualityinManufacturing3.QualityinService4.ISO9000SeriesStandards

5.RulesofCertificationtoQMS6.StepsofCertificationtoQMS

Unit1QualityStandardsandQualityControl

7.StatisticQualityControl

8.DefinitionofSixSigmaMethodology

9.KeyElementsofSixSigmaMethodology

10.SixSigmainBusiness

11.SixSigmainEngineering

12.QualityControlTools

1.DefinitionsofQuality

Theformaldefinitionofquality,standardizedbytheAmericanNationalStandardsInstitute(ANSI)andtheAmericanSocietyforQualityControl(ASQC)

in1978is"thetotalityoffeaturesandcharacteristicsofaproductorservicethatbearsonitsabilitytosatisfygivenneeds."

Completequalityincludesthe2aspects:Fitnessforuseandconformancetospecifications.

2.QualityinManufacturing

Inmanufacturing,qualityisanimportantcomponentofallfunctions.Productdesignersmusttakecaretoneitheroverengineer(resultingininefficientuseofafirm'sresources)norunderengineerproducts(resultinginpoorquality).3.QualityinService

Themostimportantdimensionsofservicequality:TimeTimelinesCompletenessCourtesyConsistencyAccessibilityandconvenienceAccuracyResponsiveness4.ISO9000SeriesStandards

TheISO9000seriesofqualitymanagementstandardswasdevelopedbytheISOtosetinternationalrequirementsforqualitymanagementsystemsin1979.

Theseriescontainsfoursystemstandardsofvaryingcomplexityandcompletenessandtheyare:ISO9001,ISO9002,ISO9003andISO9004.

5.RulesofCertificationtoQMS

CertificationofaQualityManagementSystem(QMS)tothegenericISO9001:2000standardcanimprovetheabilitytomeetstrategicobjectives.Thefollowingrulesshouldbeobeyed:Makesureyoubegintheprocesswiththerightattitude.Haveacompleteunderstandingoftheconceptsetforthinthestandard,andusethestandardasaguidetemplatetodefineyourmanagementsystem.5.RulesofCertificationtoQMSKnowwhatapplicationandimplicationsofthestandardwillmeantoyourcompany.Usethestandardasatoolforimprovement.Haveanunderstandingoftherisksandprocessesthataffectyourorganization'sabilitytorealizeitsbusinessstrategy.Selectyourpartner(certificationbody/registrar)carefully.

6.StepsofCertificationtoQMS

Obtainastandard

Reviewliteratureandsoftware

Assembleateamanddefineyourstrategy

Determinetrainingneeds

Reviewconsultantoptions

Developamanagementsystemsmanual

Developprocedures

Implementyourmanagementsystem

Considerapre-assessment

Selectacertificationbody/registrar

7.StatisticQualityControl

Qualitycontrolinvolvesmakingaseriesofplannedmeasurementsinordertodetermineifqualitystandardsarebeingmet.Qualitycontrolactivitymayberequiredattimesorinplaceswheresupervisionandcontrolpersonnelarenotpresent.

8.DefinitionofSixSigmaMethodology

SixSigmastandsforSixStandardDeviationsfrommean.SixSigmamethodologyprovidesthetechniquesandtoolstoimprovethecapabilityandreducethedefectsinanyprocess.

SixSigmausesamethodologyknownasDMAIC(Defineopportunities,Measureperformance,Analyzeopportunity,Improveperformance,Controlperformance)

9.KeyElementsofSixSigmaMethodology

ThekeyelementsofSixSigmaare:CustomerSatisfactionDefiningProcessesDefiningMetricsandMeasuresforProcessesUsingandUnderstandingDataandSystemsSettingGoalsforImprovementTeamBuildingandInvolvingEmployees10.SixSigmainBusiness

BusinessesinvariousindustrysegmentssuchasServicesindustry(Example:CallCenters,Insurance,Financial/InvestmentServices),E-commerceindustry,EducationcandefinitelyuseSixSigmaprinciplestoachievehigherquality.11.SixSigmainEngineering

ASixSigmaEngineerdevelopsefficientandcosteffectiveprocessestoimprovethequalityandreducethenumberofdefectspermillionpartsinaManufacturing/Productionenvironment.SixSigmaEngineers

determineandfinetune

manufacturingprocess.12.QualityControlTools-ChecksheetsFigure8.1Checksheets

12.QualityControlTools-ParetoChart

Figure8.2ParetoChart

12.QualityControlTools-Flowchart

Figure8.3PlasticTagProductionFlowchart

12.QualityControlTools-C/EDiagramFigure8.4CauseandEffectDiagramforEdgeFlaws

12.QualityControlTools-Histograms

Figure8.5Histograms

12.QualityControlTools-ScatterDiagram

Figure8.6ScatterDiagram

12.QualityControlTools-ControlChartFigure8.7ControlChartforStatisticalProcess

Unit2QualityManagementandQualityCost

1.DefinitionofTQM

2.PrinciplesofTQM

3.TheConceptofContinuousImprovementbyTQM

4.TwoImplementationApproachesofTQM

5.DefinitionandContentsofQualityCosts

Unit2QualityManagementandQualityCost

6.DevelopmentofQualityCosts7.DarkSideofQualityCostAnalysis

8.QualitySystemInspectionTechnique

9.QSITPrinciples1.DefinitionofTQM

TotalQualityManagement(TQM)isamanagementphilosophythatseekstointegrateallorganizationalfunctions(marketing,finance,design,engineering,andproduction,customerservice,etc.)tofocusonmeetingcustomerneedsandorganizationalobjectives.TQMisamethodbywhichmanagementandemployeescanbecomeinvolvedinthecontinuousimprovementoftheproductionofgoodsandservices.2.PrinciplesofTQM

ThekeyprinciplesofTQMareasfollowing:ManagementCommitmentEmployeeEmpowermentFactBasedDecisionMakingContinuousImprovementCustomerFocus

3.TheConceptofContinuousImprovementby

TQM

TQMismainlyconcernedwithcontinuousimprovementinallwork,fromhighlevelstrategicplanninganddecision-making,todetailedexecutionofworkelementsontheshopfloor.Continuousimprovementmustdealnotonlywithimprovingresults,butmoreimportantlywithimprovingcapabilitiestoproducebetterresultsinthefuture.

4.TwoImplementationApproachesofTQM

ApreliminarystepinTQMimplementationistoassesstheorganization'scurrentreality.

AnorganizationshouldbebasicallyhealthybeforebeginningTQM.

TraditionalManagementApproachIntegratedManagementApproach

5.DefinitionandContentsofQualityCosts

Qualitycostsarethecostsassociatedwithpreventing,finding,andcorrectingdefectivework.OneofthekeyfunctionsofaQualityEngineeristhereductionofthetotalcostofqualityassociatedwithaproduct.

QualityCostisgenerallydividedinto:CostsofControl(includingPreventioncostsandAppraisalcosts)CostsofFailureofControl(includingInternaldefectcostsandExternaldefectcosts).

6.DevelopmentofQualityCosts

Inthe1960s,IBMexpandedtheconcepttofulfillitsownneedsandusedthename"Poor-QualityCost(PQC)".Duringthe1970s,IBM'sPoor-QualityCostsystemincludedDirectpoor-qualitycostandIndirectpoor-qualitycost.In1994,lost-opportunitycostwasaddedasanewelementofindirectpoor-qualitycost.

7.DarkSideofQualityCostAnalysis

QualityCostAnalysislooksatthecompany’scosts,notthecustomer’scosts.Themanufacturerandselleraredefinitelynottheonlypeoplewhosufferquality-relatedcosts.Thecustomersuffersquality-relatedcoststoo.

Theexternalfailurecostsarebornebycustomers,ratherthanbythecompany.Theproblemofcost-of-qualityanalysisisthatitsetsusuptoundere