Unit-1

Total Quality ManagementUnit I

1. Define Total Quality?

TQM is an enhancement to the traditional way of doing business. It is the art of managing the whole to achieve excellence. It is defined both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization

2. Define Quality?

Quality = Performance x Expectations

Five definitions of quality : Transcedent definition, product based definition , user based definition ,manufacturing based definition, value based definition.

Quality characteristics : structural characteristics, sensory characteristics ,time oriented characteristics ,ethical characteristics.

3. What are the Dimensions of Quality?

Performance , Features, Conformance , Reliability, Durability, Service, Response , Aesthetics , Reputation.

4. Give the Basic Concepts of TQM?

A committed and involved management to provide long- term top- to-bottom organizational support. An unwavering focuses on the customer, both internally and externally. Effective involvement and utilization of the entire work force. Continuous improvement of the business and production process. Treating suppliers as partners. Establish performance measures for the processes.

.QUANITIFICATION OF QUALITY

Q = P/E   

P = Performance E = Expectations

DIMENSION OF QUALITY

     

           

1. Performance 2. Features3.

Conformance

4. Reliability 5. Durability6 Service

.

7. Response 8. Aesthetics9.

Reputation

TOTAL QUALITY MANAGEMENT

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...

Why TQM:

1. A question of survival in the intense competitive environment

2. Increasing customer consciousness

DEFINITION:

1 .TQM is the management approach of an organization, centred on quality, based on me participation of all its members and aiming at long-term success through customer satisfaction and benefits to all members of me organization and to society.- ISO

2. TQM is an integrated organizational approach in delighting customers (both internal and external) by meeting their expectations on a continuous basis through everyone involved with the organization working on continuous improvement in all products, services, and processes along with proper problem solving methodology - INDIAN STATISTICAL INSTITUTE ( ISI )

3. TQM is people focussed management system that aims at continual increase in customer satisfaction at continually lower cost. TQM is a total system approach (not a separate area of program ) , and an integral part of high level strategy. It works horizontally across functions and departments, involving all employees, top to bottom, and exceeds backwards and forward to include the supply chain and the customer chain – TOTAL QUALITY FORUM OF USA

CHARACTERISTICS

1. Customer Oriented

2. Long term commitment for continuous improvement of all process

3. Team work

4. Continuous involvement of top management

5. Continuous improving at all levels and all areas of responsibility

Fig: TQM WHEEL IMPORTANT FOR EXAM

BASIC CONCEPTS OF TQM:

1. Top management commitment

2. Focus on the customer – Both internal and external

3. Effective involvement and utilization of entire work force

4. Continuous improvement

5. Treating suppliers as partners

6. Establishing performance measures for the processes

PRINCIPLES OF TQM:

1. Customers requirements - ( both internal & external) must be met first time & every time

2. Everybody must be involved

3. Regular two way communication must be promoted I

4. Identify the training needs and supply it to the employees

5. Top management commitment is must

6. Every job must add value

7. Eliminate waste & reduce total cost

8. Promote creativity

9. Focus on team work.

TQM FRAME WORK

BARRIERS IN TQM IMPLEMENTATION

1. Lack of management commitment

2. Lack of faith in and support to TQM activities among management personnel

3. Failure to appreciate TQM as a cultural revolution. In other words, inability to change organizational culture

4. Misunderstanding about the concept of TQM

5. Improper planning

6. Lack of employees commitment

7. Lack of effective communication

8. Lack of continuous training and education

9. Lack of interest or incompetence of leaders

10 .Ineffective measurement techniques and lack of access to data and results

11. Non-application of proper tools and techniques

12. Inadequate use of empowerment and team work

BENEFITS OF TQM Tangible Benefits   Intangible Benefits      

·Improved product quality ·

Improved employee participation

·Improved productivity ·

Improved team work

·Reduced quality costs ·

Improved working relationships

· Increased market and customers

·

Improved customer satisfaction

·Increased profitability ·

Improved communication

·Reduced employee grievances ·

Enhancement of job interest

   · Enhanced problem solving capacity

   ·

Better company image

      

6. Give the Principles of TQM?

1. Constancy of purpose: short range and long range objectives aligned

2. Identify the customer(s); Customer orientation

3. Identification of internal and external customers

4. Continuous improvement

5. Workflow as customer transactions

6. Empower front- line worker as leader

7. Quality is everybody’s business

8. Customer orientation to child care services, a marketing perspective

9. Barriers that exist to a customer orientation

7. Give the Obstacles associated with TQM Implementation?

I. Lack of management commitment Inability to change organizational culture

II. Improper planning Lack of continuous training and education

III. Incompatible organizational structure and isolated individuals and

IV. Departments Ineffective measurement techniques and lack of access to data and

V. Results Paying inadequate attention to internal and external customers.

VI. Inadequate use of empowerment and teamwork.

8. Give the Objectives of TQM?

a. To develop a conceptual understanding of the basic principles and methods associated with TQM;

b. To develop an understanding of how these principles and methods have been put into effect in a variety of organizations;

c. To develop an understanding of the relationship between TQM principles and the theories and models studied in traditional management;

d. To do the right things, right the first time, every time.

9. Give the Quality Hierarchy?

1. Inspection

2. Quality Control (QC)

3. Quality Assurance (QA)

4. Total Quality Management Inspect products. Detection Finding & Fixing Mistakes.

Creation of any product involves two major stages – intellectual creation and physical creation. During intellectual creation a product is conceived in the mind and a design is created and after that it is physically produced.

 The term quality involves two complementary aspects, quality of design and quality of conformance. So, good quality can be attained only when both of them are controlled satisfactorily. Quality is designed into a product as much as it is built in during its production or service processes.

Quality of design

 Quality of design is the quality which the producer or supplier is intending to offer to the customer. When the producer is making the quality of design of the product, he should take into consideration the customer's requirements in order to satisfy them with fitness for use of the product.

 If the quality of design does not reflect the customer's requirements, the product which the producer offers him would not probably satisfy the customer, even if it does sufficiently conform to the design. Quality of design is usually indicated by completeness and correctness of specifications, drawings, catalogues, etc. and is measured with fitness for use.

 Quality of conformance(meaning of conformance Conformity is the act of matching attitudes, beliefs, and behaviors to group norms.[1] Norms are implicit, unsaid rules shared by a group of individuals, that guide their interactions with others and among society or social group)

 Quality of conformance is the level of the quality of product actually produced and delivered through the production or service process of the organization as per the specifications or design. When the quality of a product entirely conforms to the specification (design), the quality of conformance is deemed excellent.

 Specifications are targets and tolerances determined by the designer of a product. Targets are the ideal values for which production is expected to strive; tolerances are acceptable deviations from these ideal values recognizing that it is difficult to meet the exact targets all the time due to variability in material, machine, men and process.

 For example, if an engineering component manufacturer specifies the diameter of a steel pin as 2.525 + 0.005 mm, the value 2.525 is the target value and + 0.005 is the tolerance. In a similar way, in case of an Airline service, if on time arrival of a flight is specified as within 15 minutes of scheduled time, the target is scheduled time and tolerance is + 15 minutes.

 The measure most commonly used for expressing the quality of conformance is fraction defective. A fraction of defect of 0 % implies that the quality of a product wholly conforms to the quality of design. Even if the quality of a design is very good and quality of conformance is poor, the product cannot give the intended service and is classified as poor quality product.

 For example, in case of a service product like maintenance of law and order by governmental agencies, the quality of design is reflected in the relevant acts and rules, whereas quality of conformance depends upon the extent to which these acts and rules are complied by the enforcement agencies. In spite of having excellent rules and regulations, the quality of law and order of society cannot be rated as good, if these rules and regulations are not adhered to properly.

 Fitness for use (quality of design) and conformance to specification (quality of conformance) provide the fundamental basis for managing the processes to produce quality products. Good quality can be attained only when both, quality of design and quality of conformance are good.

Design function should provide for the translation of customers' needs from the product brief into technical specifications of products, materials, processes and services.

 This should result in a product that provides customer satisfaction at an acceptable price that enables a satisfactory return on investment for the organization and takes care of other stakeholders' needs.

 The product design and specification should be such that the product (including service) is easily productable, verifiable and controllable under the proposed production, operational and capable of being installed.

 For translating the customer needs following aspects should be taken into consideration:

 Quality requirements of Product

 The marketing function should find out and provide the quality requirements for the product and should;

Determine the need for a product or service. Accurately define the market demand and sector with details of grade, quantity, price

and time estimate of the product and service. Accurately determine the customer requirements by review of contract or market

needs. Communicate all customer requirements to production planning/design functions of

the company.

 Product Brief

Product brief is formal statement or outline of the product requirements. It should be prepared by the marketing function and provided to design function.

Product brief translates customer requirements and expectations to a preliminary set of specifications as the basis for subsequent design work. Product brief should include:

 Performance characteristics (environment and usage conditions, reliability, etc.);

Sensory characteristics such as style , color , taste, smell, etc.; Installation configuration; Applicable standards and statutory regulations; Packaging requirements; Quality assurance and verification.

10. QUALITY

 The word quality is often used indiscriminately for many different meanings. Quality can be defined as “fitness for use,” “customer satisfaction,” “doing things right the first time,” or “zero defects.” These definitions are acceptable because quality can refer to degrees of excellence. Webster’s dictionary defines quality as “an inherent characteristic, property or attribute.” Quality Review will define quality as a characteristic of a product or process that can be measured. Quality control is the science of keeping these characteristics or qualities within certain bounds.

In a manufacturing or service environment, there are two major categories of quality: quality of design and quality of conformance. A poorly designed product will not function properly regardless of how well it meets its specifications. Conversely, a product that does not conform to excellent design specifications will not properly perform its intended function.

 1 Design Quality

 Design quality refers to the level of characteristics that the designers specify for a product. High-grade materials, tight tolerances, special features and high performance are characteristics associated with the term, high quality product.

An example of design quality may be shown by the comparison between an expensive automobile and an economy model. A Ferrari and a Ford Escort are compared. Both cars will perform the same basic function of getting from point A to point B. Each will generally conform to its design specification. The owners in both cases may be satisfied with the way their cars are put together. However, that is where the similarity ends. The Escort owner does not expect his car to go 150 mph, have leather seats and have twelve coats of paint, or be highly responsive. The Ferrari owner expects these characteristics or qualities.

 The cost of making a product will usually rise as more characteristics are specified to increase product performance, improve comfort, improve ease of use and make the product look better. High-grade materials usually command a premium price. However, in many cases, increased competition creates an atmosphere of finding ways to make better and less expensive designs. This is true for products such as computers, VCRs and televisions.

 The reliability of a product must be considered in the design stage. Reliability is the probability that a product will perform its intended function, without failure, for a specified length of time. Reliability is dependent on the basic design, the quality of materials and the quality of components that go into the final product. To achieve the required reliability, designers may need to specify higher priced components. This may translate to higher prices but also higher value for the consumer.

Many products command a premium price because they provide value to the consumer. Others may be expensive because of their role as status symbols. Expensive products do not always contribute to better product performance or customer satisfaction. This is particularly true in the software industry. Many low priced applications work just as well and sometimes better than expensive ones.

 The designer may receive input from various sources when determining the level of design quality. In addition to the designer’s own ideas, input concerning product performance, materials to be used and various product characteristics may be received from management, marketing, sales, other engineering organizations or directly from customers. The final design specification may or may not be what the designer had in mind.

 Although some quality engineers and other quality professionals get involved with product design, their time and effort is usually spent in designing and maintaining systems to measure and control process and product characteristics after the design is complete. A challenge to quality engineers is to implement the statistical techniques used in manufacturing during the design stage. The goals would be to enhance product design by eliminating problems early in the design process to ensure the ease of manufacturing.

11. Conformance Quality

 After the level of design quality has been determined, the product characteristics are formed into drawings and specifications. The manufacturing engineers will use the drawings and specifications to develop manufacturing specifications and design the operations necessary to produce the product. This includes the floor layout, machinery, test sets, tools and other equipment. A plan for the number of employees required may also be included. The quality engineer works with the manufacturing engineer to make the quality system and maintenance of conformance quality an integral part of the manufacturing process. Any product checks, process checks or quality improvement activities should be an inherent part of the process. Conformance quality may be defined as the degree of adherence of the product characteristics to the design drawings and specifications. The objective of a quality program is to have a system that will measure and control the degree of product and process conformance in the most economical way.

The quality engineer will determine what product or process characteristics are to be checked. The quality engineer will also determine the type of data to be collected, the corrective actions required, and the statistical tools or other techniques to be used.

“WE MUST ENSURE THERE IS CONFORMANCE AND THIS HAS TO BE MET IMPROVED TECHNIQUES”

12. QUALITY SYSTEMS

 A quality system is a mechanism that coordinates and maintains the activities needed to ensure that the characteristics of products, processes or services are within certain bounds. A quality system involves every part of an organization that directly or indirectly affects these activities. Typically, the quality system is documented in a quality manual and in the associated documents that specify procedures and standards.

 3.1 Basic Elements in a Quality System

 There are three basic elements in a quality system: Quality Management, Quality Control, and Quality Assurance.

          Quality Management: Quality management is the means of implementing and carrying out quality policy. They perform goal planning and manage quality control and quality assurance activities. Quality management is responsible for seeing that all quality goals and objectives are implemented and that corrective actions have been achieved. They periodically review the quality system to ensure effectiveness and to identify and review any deficiencies.

          Quality Control: The term quality control describes a variety of activities. It encompasses all techniques and activities of an organization that continuously monitor and improve the conformance of products, processes or services to specifications. Quality control may also include the review of processes and specifications and make recommendations for their improvement. Quality control aims to eliminate causes of unsatisfactory performance by identifying and helping to eliminate or at least narrow the sources of variation. Quality control has the same meaning as variation control of product characteristics.The objective of a quality control program is to define a system in which products meet design requirements and checks and feedback for corrective actions and process improvements. Quality control activities should also include the selecting and rating of suppliers to ensure that purchased products meet quality requirements.

          Quality Assurance: The term quality assurance describes all the planned and systematic actions necessary to assure that a product or service will satisfy the specified requirements. Usually this takes the form of an independent final inspection. The distinction between quality control and quality assurance is stated in an ANSI/ASQ standard: “Quality control has to do with making quality what it should be, and quality assurance has to do with making sure quality is what it should be.” The quality assurance function should represent the customer and be independent of the quality control function, which is an integral part of the manufacturing operation.

Typical process of quality assurance includes :

1. Test of previous articles2. Plan to improve 3. Design to include improvements and requirements4. Manufacture with improvement5. Review new items and improvement 6. Test of new item

Procurement process

The ultimate goal of procurement planning is coordinated and integrated action to fulfil a need for goods, services or works in a timely manner and at a reasonable cost. Early and accurate planning is essential to avoid last minute, emergency or ill-planned procurement, which is contrary to open, efficient and effective – and consequently transparent – procurement. In addition, most potential savings in the procurement process are achieved by improvements in the planning stages . Even in situations where planning is difficult such as emergencies , proactive measures can be taken to ensure contingency planning and be better prepared to address upcoming procurement requests.

Supplier evaluationAssessment of existing or new suppliers on the basis of their delivery, prices, production capacity, quality of management, technical capabilities, and service.

Supplier evaluation is not an easy process. Many different formulas and techniques can be used. One effective method assigns suppliers to four basic categories based upon their level of performance in key areas, such as delivery, quality and responsiveness.

A supplier is labeled a "full partner" if it meets all expectations. An "associate partner" is a firm that needs a little work to bring it up to full partner status.

Additional categories include "high risk" and "incapable" suppliers. A high risk source might continue to be utilized for current production only, based upon an internal risk assessment. But, you might not want to award this supplier any future business. An incapable supplier should be dropped as soon as possible.

Quality Management Plan. A key output of an organization’s quality planning process is the QualityManagement Plan(QMP). The QMP, which is in turn a component of the overall Program Management Plan (PMP), describes how the program management team will implement the performing organization’s quality policy. The Quality Management Plan must address how the program intends to implement quality control, quality assurance, and continuousprocess improvement. The other outputs of the quality planning process are: Quality Metrics; a Quality Checklist(s); a Process Improvement Plan; aQuality Baseline, and updates to the Program Management Plan.

PROCESS

A process is a unique combination of tools, materials, methods, and people engaged in producing a measurable output; for example a manufacturing line for machine parts. All processes have inherent statistical variability which can be evaluated by statistical methods.

The Process Capability is a measurable property of a process to the specification, expressed as a process capability index (e.g., Cpk or Cpm) or as a process performance index (e.g., Ppk or Ppm). The output of this measurement is usually illustrated by a histogram and calculations that predict how many parts will be produced out of specification (OOS).

MEASURE THE PROCESS

The input of a process usually has at least one or more measurable characteristics that are used to specify outputs. These can be analyzed statistically; where the output data shows a normal distribution the process can be described by the process mean (average) and the standard deviation.

A process needs to be established with appropriate process controls in place. A control chart analysis is used to determine whether the process is "in statistical control". If the process is not in statistical control then capability has no meaning. Therefore the process capability involves only common cause variation and not special cause variation.

Definitions

Process-------: Process refers to any system of causes; any combination of conditions which worktogether to produce a given result.

Process Capability -----

Process capability refers to the normal behaviour of a process when operating in a state of statistical control. It refers to the inherent ability of a process to produce similar parts for a sustained period of time under a given set of conditions.

Process Capability Indices----- Process capability can be expressed as percent nonconformingor in terms of the natural spread related to the specification spread.

PROCESS CAPABILITY FLOW DIAGRAM

PROCESS CAPABILITY ANALYSIS

Introduction Process capability is an important concept for industrial managers to understand. The challenge in today’s competitive markets is to be on the leading edge of producing high quality products at minimum costs. This cannot be done without a systematic approach and this approach is contained within what has been called “statistical quality control” or “industrial statistics.” The segment of statistical quality control (SQC) discussed here is the process capability study. So why is process capability so important? Because it

allows one to quantify how well a process can produce acceptable product. As a result, a manager or engineer can prioritizeneeded process improvements and identify those processes that do not need immediate process improvements. Process capability studies indicate if a process is capable of producing virtually all conforming product. If the process is capable, then statistical processcontrols can be used to monitor the process and conventional acceptance efforts can be reduced or eliminated entirely. This not only yields great cost savings in eliminating non-value added inspections but also eliminates scrap, rework and increases customer satisfaction. The benefits of performing process capability studies are certainly worth the effort in the long run. After a process capability study has been performed, a process will be classified as either capable or incapable. When the process is not capable of producing virtually all conforming product, the process is said to be incapable and acceptance sampling procedures (or 100%inspection) must remain part of the process.

Example of process capability system

Six sigma (statistical representation of six sigma describes how process is performing it is used in many organizations simply means a measure of quality that strives for near perfection).

An example of quality management system which defines a full quality management system.

PROCESS CONTROL

Process control is a statistics and engineering discipline that deals with architectures, mechanisms and algorithms for maintaining the output of a specific process within a desired range.

Process control is the management of inputs to ensure a uniform output, no matter how many times a process is repeated. This can involve everything from water purification procedures to landing space shuttles safely and successfully. In process control, principles of statistics and engineering are applied to a process to ensure regularity and repeatability. Automated systems are capable of exerting process control and can be programmed for various advanced functions.

Technicians very clearly define an outcome in process control, such as a finished product or a successful aircraft landing. This process may require batches; only one aircraft lands at once, for example. It can also be continuous in nature. At an ice cream manufacturing facility, for example, the facility can keep pumping out ice cream continuously, and does not need to take a break between batches.

Awareness of an outcome allows the company to put measures in place to control the process, and to ensure that the outcome will be reliable. The ice cream manufacturer needs controlled temperatures for food safety and quality reasons, for example. It also needs ingredients, personnel to operate the equipment, and supplies ready to package the ice cream for sale. All of these become components of process control.

Fig: Process control Diagram

Figure 2 - Process Based Quality Management System Model

Statistical process control (SPC) is a method of quality control which uses statistical methods. SPC is applied in order to monitor and control a process. Monitoring and controlling the process ensures that it operates at its full potential. At its full potential, the process can make as much conforming product as possible with a minimum (if not an elimination) of waste (rework or trash). SPC can be applied to any process where the "conforming product" (product meeting specifications) output can be measured. Key tools used in SPC include control charts; a focus on continuous improvement; and the design of experiments.

Statistical process control (SPC) is the application of statistical techniques to determine whether the output of a process conforms to the product or service design. SPC is implemented via. “ control charts ” that are used to monitor the output of the process and indicate the presence of problems requiring further action.

Characteristics of Control Charts

A control chart is a time-ordered diagram to monitor a quality characteristic, consisting of :- • A nominal value, or center line – The average of several past samples • Two control limits used to judge whether action is require; an upper control limit (UCL) and a lower control limit (LCL) •Data points, each consisting of the average measurement calculated from a sample taken from the process, ordered over time. By Central Limit Theorem, regardless of the distribution of the underlying individual measurements, the distribution of the sample means will follow a normal distribution .The control limits are set based on the sampling distribution of the

quality measurement.

Steps Involved In Using Statistical Process Control

Proper Statistical Process Control starts with planning and data collection. Statistical analysis on the wrong or incorrect data is rubbish, the analysis must be appropriate for the data collected. Be sure to PLAN, then constantly re-evaluate your situation to make sure the plan is correct. The key to any process improvement program is the PDSA cycle described by Walter Shewart. Plan Identify the problem and the possible causes. The QC tools described in this manual can help organizations identify problems and possible causes, and to prioritize corrective actions. Do Make changes designed to correct or improve the situation. Study the effect of these changes on the situation. This is where control charts are used – they show the effects of changes on a process over time. Evaluate the results and then replicate the change or abandon it and try something different. Act If the result is successful, standardize the changes and then work on further improvements or the next prioritized problem. If the outcome is not yet successful, look for other ways to change the process or identify different causes for the problem. Control charting is one of a number of steps involved in Statistical Process

Control. The steps include discovery, analysis,clarification, and then charting. Before using Statistics QC software, appropriate data must be collected for analysis. Then, you need to begin again and do it over and over and over. Remember, quality is a CYCLE of continuous improvement. 1.PLAN 2.DO3.STUDY4.ACT

QUALITY AUDIT ---

Quality audit is the process of systematic examination of a quality system carried out by an internal or external

quality auditor or an audit team. It is an important part of organization's quality management system and is a key

element in the ISO quality system standard, ISO 9001.

Quality audits are typically performed at predefined time intervals and ensure that the institution has clearly

defined internal system monitoring procedures linked to effective action. This can help determine if the

organization complies with the defined quality system processes and can involve procedural or results-based

assessment criteria.

OBJECTIVE OF INTERNAL QUALITY AUDIT SYSTEM

The system of Internal Quality Audits must ensure that:

the Quality System of Company complies with all clauses of the ISO 9001 standard and applicable contractual/legal requirements;

the Quality System is understood and used through all levels of the organization;

the Quality System is functioning efficiently and has the ability to achieve defined quality objectives;

it can identify potential problems and resolutions to ensure a more effective quality management system is operative.

QC DEPARTMENT director arranges yearly internal quality audit plans .Audit is carried out as internal quality audit control procedure.The audit time,audit department and audit programmes are carried out according to the yearly audit planCorrective actions should indicate corrective contents ,finish date and person incharge , and quality control department is responsible for making sure that the corrective actions have been implemented Auditors should record audit data and have the responsible department rectified the deviation

What is a Guarantee?

A guarantee is a promise by a person (the guarantor) to settle a debt or fulfil the promise of someone else. The person to whom the promise is made is called the creditor or lender and the person on whose behalf of the promise is made is called the principal debtor or borrower. Guarantees often state that the obligation of the guarantor is equivalent to the borrower’s obligations. In such a case the lender may call on the guarantor to pay the debt in full without requiring payment from the borrower, without exhausting all of their remedies against the borrower, or without exercising any rights under any securities given by the borrower.

Various terms of guarantee

1. Period of validity2. Liability of manufacturer3. Procedure of submitting guarantee claims4. Condition which makes the guarantee invald

What Is Vendor Rating?

Vendor rating refers to the result of a formal vendor evaluation system. Vendors are given a standing, status, or a title according to their attainment of a performance level, like quality, delivery, lead time, price, or some combination of variables.

IMPORTANT POINTS OF THE CHAPTER

1. Quality is the conformance to requirement or specification. Quality control denotes all those activities which are directed for maintaining and improving the product.2. Quality implies different level of expectations for different group of customers.3. Capacity verification is useful for exercising control of over the quality of purchase product 4. Process control is refers to the control of one or more system parameters,such as temperature,flow rate or position5. Quality process is the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team6. Process capability is in some sense a measure of the uniformity of a quality characterstics of interest.it is an index of uniformity of the output.

IMPORTANT FOR EXAMS

Deming's Fourteen Points for Management:

1. Create constancy of purpose for improvement of product and services2. Adopt the new philosophy3. Cease dependence on mass inspection4. End the practice of awarding business on price tag alone5. Constantly and forever improve the systems of production and services6. Institute modern methods of training on the job7. Institute modern methods of supervision and leadership8. Drive out fear9. Break down barriers between departments10. Eliminate numerical goals for the work force11. Eliminate work standards and numerical quotas12. Remove barriers to pride of workmanship13. Institute a vigorous programme of education and training for everyone14 Create a structure in top management that will push every day on the above 13 points.

Unit 2

Definition of quality management: The act of overseeing all activities and tasks needed to maintain a desired level of excellence. This includes creating and implementing quality planning and assurance, as well as quality control and quality improvement. It is also referred to as total quality management (TQM). Quality is considered as the most powerful factor to capture retain and enlarge customer base in modern business scenario.Need of quality management for a organization like industries and railway systems :Planning and achieving higher level of quality is fundamental to the successful operation of enterprises ,which necessitates understanding And managing various dynamics in an organization in order to set goals and judiciously deploy resources .the efficiency and effectiveness with which resources are utilized will depend upon good management practices that an organization must follow

Definition of organization:

Definition A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.

Example of an organisational structure

Definition of nature of organization : A social unit of people ,

systematically structured and managed to meet a need or to pursue

collective goals on continuing basis. All organization have a

Management structure that determines relationship between functions ,

positions and subdivided delegates roles ,responsibilities and authority

to carry out defined task.

TYPES OF ORGANIZATIONAL STRUCTURES :1. bureaucratic structures2. Functional structures3. Divisional structures4. Matrix structures

Divisional structures

Bureaucratic structure

Design of an organization

Depends on 1. Hierarchical systems 2. Design process 3. Organization design decisions

Hierarchical systems:

A human-built system with complex behaviour is often organized as a hierarchy. For example a command hierarchy has among its notable features the organizational chart of superiors, subordinates, and lines of organizational communication. Hierarchical control systems are organized similarly to divide the decision making responsibility.

Organization design decision:Given the many choices of structures , how do you go about making organization design decision for your business. Different organization structures have different Benefits in different situations1. Strategy: the organization design must support your strategy.2. Size: The design must take into account the size of your organization.3. Environment: If the market environment you work in is unpredictable or volatile ,then the organization needs to be fixable enough to react this.4. Controls: What level of control is right in your business .Some activities need special controls such as (patient services in hospitals ,money handling in banks and maintenance in air transport.5. Incentives: incentives and rewards must be aligned with the business strategy and purpose .

QUALITY FUNCTION : “It is a method to transform user demands into design quality, to deploy the functions forming quality, and to deploy methods for achieving the design quality into subsystems and component parts, and ultimately to specific elements of the manufacturing process. DIVIDED INTO TWO DISTINCT GROUPS

1. Quality engineering : elements of quality engineering

(a)Advice to the management on the quality policy of the company and laying down realistic quality objective(b)The analysis of the customers quality requirements and the formulation of design specifications.(c) The review and evaluation of product design with a view to improve quality and reduced quality cost(d)Defining quality standards and preparation of product specification (e) Analysis of quality cost (f) Quality audit of the company(g) Conducting process capability studies

Different quality functions

Quality control:

It is concerned with the interpretation and implementation of quality plans. It comprises of in process and postproduction testing which are aimed at ensuring the quality conformance of products.

Main elements of quality control:

Assistance in establishing quality control at various points of manufacturing process Maintenance and calibration of process control equipment Investigation of defects and assistance in solving quality problems during production. Implementation of quality control measures for incoming material and stores. Running a test laboratory for carrying out necessary test and analysis Feedback of defect data and customer complaints to the quality engineering section.

Fig: EXAMPLE OF DESIGNING OF QUALITY IMPROVEMENT

Fig: another example of designing a organization to achieve quality management .

Organization for different type products and company :

For the fitting purpose to get easier we discuss few quality organizations:

Single product line at one location (medium sized company)

Multiproduct company at one location (medium sized company)

Single product, multiplant situation

Small scale cottage industry

Large divisionalised corporation with different product divisions.

Product line : A product line refers to a number of products that are related and developed by

the same manufacturer. Product lines are not to be confused with product bundling, which

combines various items into one type of product. Items within a product line generally share the

same basic theme, and with the help of a successful marketing plan these products can be entirely

effective.

Fig: Single product multiplant situation

Fig: single product line at the one location

Fig: multi product company at one location

Fig: small cottage industry

Quality of cost and quality of conformance A product that meets or exceeds its design specifications and is free of detects that means its appearance or degrade its performance is said to have high quality of conformance. Note that if an economy car is free of defects, it can have a quality of conformance that is just as high as defect-free luxury car. The purchasers of economy cars cannot expect their cars to be as opuieuth. as luxury cars, but they can and do expect lobe free of defects.

Preventing, detecting and dealing with defects cause costs that are called quality costs or costs of quality. The use of the term "quality cost" is confusing to some people. It does hot refer to costs such as using a higher grade leather to make a wallet or using 14K gold instead of gold plating in jewelry. Instead the term quality cost refers to all of the costs that are incurred to prevent defects or that result from defects in products.

Quality costs can be broken down into four broad groups. These four groups are also termed as four (4) types of quality costs. Two of these groups are known as prevention costs and appraisal costs. These are incurred in an effort to keep defective products from falling into the hands of customers. The other two groups of costs are known as internal failure costs and external failure costs. Internal and external failure costs are incurred because defects are produced despite efforts to prevent them

Four types of quality cost are briefly explained below :-

Prevention Costs: Generally the most effective way to manage quality costs is to avoid the defects in the first place. It is much less costly to prevent a problem from ever happening than it is toad and correct the problem after it has occurred. Prevention costs support activities whose purpose is to reduce the number of defects. Companies emplo y many techniques to prevent defects for example statistical process control, quality engineering. training, and a variety of tools from quality TQM .Prevention costs include activities relating to statistical process control.

PARTS OF PREVENTION COSTS

1. SYSTEMS DEVELOPMENT2. Qualtiy engineering3. Quality training4. Quality circles5. Statistical process control6. Supervision of prevention activities7. Quality data gathering analysis

INTERNAL FALIURE COST:

1. NET COST OF SCRAP2. NET COST OF SPOILAGE3. REWORK LABOUR AND OVER HEAD4. REINSPECTION REWORKED PRODUCTS5. RETESTING OF REWORK

APPRAISAL COST:1. Test and inspection of incoming materials 2. Test and inspection of inprocess goods3. Final product testing 4. Supply used in testing and inspection 5. Supervision of testing and inspection activities

EXTERNAL FAILURE COST

1. COST OF FIELD SERVISING AND HANDLING COMPLAINTS2. WARRANTEE REPAIRS AND REPLACEMENT3. PRODUCT

RECALLS

Fig: motivation for workers few factors in workers motivation and retention.

HOUSE OF QUALITY:

Every successful company has always used data and information to help in its planning processes. In planning a new product, engineers have always

examined the manufacturing and performance history of the current product. They look at field test data, comparing their product to that of their competitor's product. They examine any customer satisfaction information that might happen Lobe available. Unfortunately, much of this information is often incomplete. It is frequently examined as individual data, without comparison to other data that may support or contradict it. By contrast quality function deployment uses a matrix format to capture a number of issues that are vital to the planning process .The house of quality matrix is the most recognized and widely used method. It translates customer requirements, based on marketing research and benchmarking data, into an appropriate number of engineering targets to be met by a new product design. Basically, it is the nerve center and the engine that drives the entire QFD process. According to Hauser and Clausing It is "a kind of conceptual map that provides the means for inter-functional planning and communication." There are many different forms of the House of Quality, but its ability to be adapted to the requirements of a particular problem make it a very strong and reliable system to use. Its general format is made up of six major components. These include customer requirements. technical requirements. a planning matrix, an interrelationship matrix, a technical correlation matrix, and a technical priorities/benchmarks and targets sections.

Every successful company has always used data and information to help in its planning processes. In planning a new product, engineers have always examined the manufacturing and performance history of the current product. They look at field test data, comparing their product to that of their competitor’s product. They examine any customer satisfaction information that might happen to be available. Unfortunately, much of this information is often incomplete. It is frequently examined as individual data, withoutcomparison to other data that may support or contradict it.

Fig: DIAGRAM FOR HOUSE OF QUALITY

By contrast, Quality Function Deployment (QFD) uses a matrix format to capture a number of issues that are vital to the planning process. The House of Quality Matrix is the most recognized and widely used form of this method. It translates customer requirements, based on marketing research and benchmarking data, into an appropriate number of engineering targets to be met by a new product design. Basically, it is the nerve center and the engine that drives the entire QFD process. According to Hauser and Clausing, “It is a kind of conceptual map that provides the means for interfunctional planning and communication.”

There are many different forms of the House of Quality, but its ability to be adapted to the requirements of aparticular problem make it a very strong and reliable system to use. Its general format is made up of sixmajor components. These include customer requirements, technical requirements, a planning matrix, aninterrelationship matrix, a technical correlation matrix, and a technical priorities/benchmarks and target section.

PLANNING MATRIXINTERRELATIONSHIP MATRIXTECHNICAL CORRELATION MATRIX

ALL THE MENTION COMPONENTS DEFINE THE DESIGN TARGETS AND BENCHMARKS FOR HOUSE OF QUALITY.

Unit -3

What is a control chart?

A control chart is a statistical tool used to distinguish between variation in a process resulting from common causes and variation resulting from special causes. It presents a graphic display of process stability or instability over time.One goal of using a control chart is to achieve and maintain process stability. Process stability is defined as state in which A process head displayed a certain degree of consistence in the past and is expected to continue to do so in the future This consistencies is characterized by a stream of data falling with in control limits based on plus or minus 3 standard devations (3 sigma of the centre line ).

Why use control charts?

1. Monitor process variation overtime2. Differentiate between special cause and common cause variation3. Assess effectiveness of changes4. Communicate process performance

BENEFITS OF CONTROL CHARTS

1. Help you recognize and understand variability and how to control it2. Identify special causes variation and changes in performance3. Assist in the diagnosis of process problem4. Determine if process improvement effects are having the desired affects.

Unit-5

WHAT IS ISO 9000?

ISO 9000 describes fundamentals of quality management systems and specifies the terminology for quality management systems.

INTRODUCTION:

Two of the most important objectives in the revision of the ISO 9000 series of standards have been a) to develop a simplified set of standards that will be equally applicable to small as well as medium and large organizations, and b) for the amount and detail of documentation required to be more relevant to the desired results of the organization’s process activities. ISO 9001:2008 Quality management systems – Requirements has achieved these objectives, and the purpose of this additional guidance is to explain the intent of the new standard with specific regard to documentation. ISO 9001:2008 allows an organization flexibility in the way it chooses to document its quality management system (QMS). This enables each individual organization to develop the minimum amount of documentation needed in order to demonstrate the effective planning, operation and control of its processes and the implementation and continual improvement of the effectiveness of its QMS.

Fig: ISO 9000 PROCESS APPROACH DIAGRAM

THE 14 ESSENTIAL STEPS ARE TO BE FOLLOWED THROUGH IN ORDER TO IMPLEMENT ISO 9000 QUALITY MANAGEMENT SYSTEM SUCCESSFULLY ARE:-

1. TOP MANAGEMENT COMMITMENT2. ESTABLISH IMPLEMENTATION TEAM3. START ISO900O AWARENESS PROGRAMM4. PROVIDE TRAINING 5. CONDUCT INITIAL STATUS SURVEY6. CREATE A DOCUMENT IMPLEMENTATION PLAN7. DEVELOPE MANAGEMENT SYSTEM DOCUMENTATION8. DOCUMENT CONTROL9. IMPLEMENTATION 10. INTERNAL QUALITY EDIT11.MANAGEMENT REVIEW12.PRE-ASSESMENT AUDIT13.CERTIFICATION AND REGISTRATION14.CONTINUAL IMPROVEMENT

REASON FOR THE GLOBAL ADOPTION OF ISO 9001:

The global adoption of ISO 9001 may be attributable to a number of factors. A number of major purchasers require their suppliers to hold ISO 9001 certification. In addition to several stakeholders' benefits, a number of studies have identified significant financial benefits for organizations certified to ISO 9001, with a 2011 survey from the British Assessment Bureau showing 44% of their certified clients had won new business.[11] Corbett et al. showed that certified organizations achieved superior return on assets [12]  compared to otherwise similar organizations without certification.[13] Heras et al. found similarly superior performance[14] and demonstrated that this was statistically significant and not a function of organization size.[15] Naveha and Marcus claimed that implementing ISO 9001 led to superior operational performance in the US motor carrier industry.[16] Sharma identified similar improvements in operating performance and linked this to superior financial performance.[17] Chow-Chua et al. showed better overall financial performance was achieved for companies in Denmark.[18] Rajan and Tamimi (2003) showed that ISO 9001 certification resulted in superior stock market performance and suggested that shareholders were richly rewarded for the investment in an ISO 9001 system.

Summary of ISO 9001:2008 in informal language

The quality policy is a formal statement from management, closely linked to the business and marketing plan and to customer needs.

The quality policy is understood and followed at all levels and by all employees. Each employee works towards measurable objectives.

The business makes decisions about the quality system based on recorded data.

The quality system is regularly audited and evaluated for conformance and effectiveness.

Records show how and where raw materials and products were processed to allow products and problems to be traced to the source.

The business determines customer requirements. The business has created systems for communicating with customers about

product information, inquiries, contracts, orders, feedback, and complaints. When developing new products, the business plans the stages of

development, with appropriate testing at each stage. It tests and documents whether the product meets design requirements, regulatory requirements, and user needs.

The business regularly reviews performance through internal audits and meetings. The business determines whether the quality system is working and what improvements can be made. It has a documented procedure for internal audits.

The business deals with past problems and potential problems. It keeps records of these activities and the resulting decisions, and monitors their effectiveness.

The business has documented procedures for dealing with actual and potential nonconformances (problems involving suppliers, customers, or internal problems).

The business:

1. makes sure no one uses a bad product,

2. determines what to do with a bad product,

3. deals with the root cause of problems, and

4. keeps records to use as a tool to improve the system.1994 version

ISO 9000:1994 emphasized quality assurance via preventive actions, instead of just checking final product, and

continued to require evidence of compliance with documented procedures. As with the first edition, the down-side

was that companies tended to implement its requirements by creating shelf-loads of procedure manuals, and

becoming burdened with an ISO bureaucracy. In some companies, adapting and improving processes could

actually be impeded by the quality system.

2000 version

ISO 9001:2000 replaced all three former standards of 1994 issue, ISO 9001, ISO 9002 and ISO 9003. Design

and development procedures were required only if a company does in fact engage in the creation of new

products. The 2000 version sought to make a radical change in thinking by actually placing the concept

of process management front and center ("Process management" was the monitoring and optimisation of a

company's tasks and activities, instead of just inspection of the final product). The 2000 version also demanded

involvement by upper executives in order to integrate quality into the business system and avoid delegation of

quality functions to junior administrators. Another goal was to improve effectiveness via process performance

metrics: numerical measurement of the effectiveness of tasks and activities. Expectations of continual process

improvement and tracking customer satisfaction were made explicit.

2008 version

ISO 9001:2008 basically renarrates ISO 9001:2000. The 2008 version only introduced clarifications to the

existing requirements of ISO 9001:2000 and some changes intended to improve consistency with ISO

14001:2004. There were no new requirements. For example, in ISO 9001:2008, a quality management system

being upgraded just needs to be checked to see if it is following the clarifications introduced in the amended

version.

ISO 9001 is supplemented directly by two other standards of the family:

ISO 9000:2005 "Quality management systems. Fundamentals and vocabulary"

ISO 9004:2009 "Managing for the sustained success of an organization. A quality management approach"

Other standards, like ISO 19011 and the ISO 10000 series, may also be used for specific parts of the quality

system.

Certification

ISO does not certify organizations itself. Numerous certification bodies exist, which audit organizations and, upon

success, issue ISO 9001 compliance certificates. Although commonly referred to as 'ISO 9000' certification, the

actual standard to which an organization's quality management system can be certified is ISO 9001:2008. Many

countries have formed accreditation bodies to authorize ("accredit") the certification bodies. Both the

accreditation bodies and the certification bodies charge fees for their services. The various accreditation bodies

have mutual agreements with each other to ensure that certificates issued by one of the Accredited Certification

Bodies (CB) are accepted worldwide. Certification bodies themselves operate under another quality standard,

ISO/IEC 17021,[28] while accreditation bodies operate under ISO/IEC 17011.

An organization applying for ISO 9001 certification is audited based on an extensive sample of its sites,

functions, products, services and processes. The auditor presents a list of problems (defined as

"nonconformities", "observations" or "opportunities for improvement") to management. If there are no major

nonconformities, the certification body will issue a certificate. Where major nonconformities are identified, the

organization will present an improvement plan to the certification body (e.g. corrective action reports showing

how the problems will be resolved); once the certification body is satisfied that the organisation has carried out

sufficient corrective action, it will issue a certificate. The certificate is limited by a certain scope (e.g. production of

golf balls) and will display the addresses to which the certificate refers.

ISO 9000 IS BASED UPON EIGHT QUALITY MANAGEMENT PRINCIPLES :

Principle 1 – Customer focusPrinciple 2 – LeadershipPrinciple 3 – Involvement of peoplePrinciple 4 – Process approachPrinciple 5 – System approach to managementPrinciple 6 – Continual improvementPrinciple 7 – Factual approach to decision makingPrinciple 8 – Mutually beneficial supplier Relationships

THE TAGUCHI METHOD:

Taguchi methods are statistical methods developed by Genichi Taguchi to improve the quality of manufactured

goods, and more recently also applied to engineering,[1] biotechnology,[2][3]marketing and advertising.[4] Professional statisticians have welcomed the goals and improvements brought about by Taguchi methods,

particularly by Taguchi's development of designs for studying variation, but have criticized the inefficiency of

some of Taguchi's proposals.[5]

Taguchi's work includes three principle contributions to statistics:

A specific loss function — see Taguchi loss function;

The philosophy of off-line quality control; and

Innovations in the design of experiments.

THE MAIN OBJECTIVE OF TAGHUCHU PHILOSPHY:

Taguchi's main objectives are to improve process and product design through the identification of controllable factors and their settings, which minimise the variation of a product around a target response. By setting factors to their optimal levels, a product can be manufactured more robust to changes in operation and environmental conditions. Taguchi removes the bad effect of the cause rather than the cause of a bad effect, thus obtaining a higher quality product.

Taguchi Design of Experiments

• Many factors/inputs/variables must be taken into consideration when making a product especially a brand new one

– The Taguchi method is a structured approach for determining the ”best” combination of inputs to produce a product or service

– Based on a Design of Experiments (DOE) methodology for determining parameter levels

– DOE is an important tool for designing processes and products– A method for quantitatively identifying the right inputs and parameter

levels for making a high quality product or service– Taguchi approaches design from a robust design perspective

Taguchi loss functionTaguchi Loss Function is graphical depiction of loss developed by the Japanese business statistician Genichi Taguchi to describe a phenomenon affecting the value of products produced by a company. Praised by Dr. W. Edwards Deming (the business guru of the 1980s American quality movement),[1] it made clear the concept that quality does not suddenly plummet when, for instance, a machinist exceeds a rigid blueprint tolerance. Instead "loss" in value progressively increases as variation increases from the intended condition. This was considered a breakthrough in describing quality, and helped fuel the continuous improvement movement that since has become known as lean manufacturing.

DIAGRAM TGHUCHI LOSS FUNCTION GRAPH

Five major points of the Taguchi quality philosophy are :-

In a competitive market environment, continual quality improvements and cost reductions are necessary for business survival.

An important measurement of the quality of a manufactured product is the total loss generated by that product to the society.

  Change the pre-production experimental procedure from varying one factor at a time to varying many factors simultaneously (SDE) , so that quality can be built into the product and the process.

  The customer's loss due to poor quality is approximately proportional to the square of the deviation of the performance characteristic from its target or nominal value. Taguchi changes the objectives of the experiments and the definition of quality from "achieving conformance to specifications" to "achieving the target and minimising the variability.

A product (or service) performance variation can be reduced by examining the non-linear effects of factors (parameters) on the performance characteristics. Any deviation from a target leads to poor quality.

JUST IN TIME (JIT)