Pom control and quality management

POM
Control and Quality Management
Unit: 9
Diwakar Singh

Introduction:
• The goal and objective of organization have
been:
– Well designed and organized
– Employees have been carefully selected
– Trained and instructed
– Communication channels have been well-set
• The environment in modern organization
operate:
– Becoming more and more complex
Diwakar Singh

Contd….
– More products
– More players
– Rapidly changing technology
– Market
• This chapter deals with two main aspects of
managerial controls:
– The basic concept
– Method and process control
– Second part:
• Quality management concepts
• issues
Diwakar Singh

Concept of Control System:
• We have selected the following definitions for
analysis:
– Robert J Mockler (1972)
– George Terry and Stephen Franklin (2005)
– Robert Kreinter (2016)
• Essentially, control means:
– Identification of variations
– Their caused and
– Corrective actions
Diwakar Singh

Contd…..
• The control function of management has close
relationship with:
– The planning function
• Controlling exists at every level of management:
– The chief executive has to control for:
• Overall corporate activities
– Whereas the lower-level managers have to
• Control the activities of their respective units
– Control is process activity to:
• The effectiveness of managers and
• organizations
Diwakar Singh

The Control Process:
• An organization involves for major steps:
– Performance standard
– Performance measurement
– Comparison between standards and actual
performance
– Corrective action
• These steps together constitute the process of
control.
Diwakar Singh

Contd….
• Standard:
– Fixing performance standard
– A reference point against which,
• Performance can be measured
– These standards might include:
• Sales goals
• Production goals
• Service goals
• Profit goals
Diwakar Singh

Contd….
• These goals and objectives must be
– Clearly set by the corporate plans
• These should then translate into specific into:
– Specific performance standards for:
• Each units of the organization
• A performance can be formulated with respect:
– To any one factors like:
• Quality
• Quantity
• Time used
• cost
Diwakar Singh

Contd….
• The performance standards must be:
– Stated in clear and
– Measurable terms
• Abstract standards like:
– Quality service
– Employee satisfaction cannot be perfectively
measured
Diwakar Singh

Contd….
• Setting standards are useless everyone in the
organization understands:
– What they are?
– Why they exists?
• There are many ways to communicate:
– Performance standards to employees
• The methods of standards are:
– Job description
– Job instruction
Diwakar Singh

Contd….
– Polices & rules
– Target
– Procedure
– Time
• used as methods of performance standards
• Indicator used to measure performance
Diwakar Singh

Contd….
• Performance Measurement:
– In the second step of control process:
• The actual performance or units is measured
– Standards are the criteria against which,
• The performance is measured
– This is actually the phase of:
• Evaluation
• Appraisal or assessment
– Performance can be measured at:
• Weekly
• Monthly or
• Yearly basis
Diwakar Singh

Contd….
• For example:
– The fuel consumption by a vehicle
• Can be measured on a weekly basis
– Productions and sales can be:
• Measured on a monthly basis
– Unit costs, total costs, total expensive or
profitability can be:
• Measured at the end of every fiscal year at :
– The end of every year
Diwakar Singh

Contd….
• For control system to be effective:
– The management information system should be:
• Designed
• Strengthened
• An important purpose of assessment is:
– To help employees to discover their
• Strength and weakness
Diwakar Singh

Contd….
• They can make use of the most of their:
– Strengths
– Correct
– Minimize their weakness
• Managers must regularly discuss:
– Target and achievement
– Success and failures
– Strength and weakness
Diwakar Singh

Comparison between Standards and
Performance:
• The actual performance is captured with:
– The predetermined performance standards
– To determine how well the goals and objectives
have been met
– If performance matches the standard:
• The achievement is considered good
• If there is big gaps between these two:
– The performance is considered poor
Diwakar Singh

Corrective Actions:
• The management must determine:
– If the gap between standard and performance is significant
enough:
• To require corrective action
• When the gap is significant understanding the cause is:
– Crucial to determine
– Weather it should be changed or
– Some other remedy attempted
• Thus, corrective action may lead
– To changes in:
• Original standard
• Work procedures
• Schedules
Diwakar Singh

Types of Control System:
• Three types of control are used in the process
of control:
– Pre-control
– Concurrent
– Post control
• Pre-control system:
– Known as free-forward control
– The control system taken place before work is
performed
Diwakar Singh

Contd….
– Problem are anticipated in advanced and
• The standards are set to regulate the management
system
– Management creates:
• Polices
• Procedure
• Rules and standard
– That reduce the possibility of problem occurring
Diwakar Singh

Contd…
• For example:
– A policy may be established that:
• Allows only the divisional managers to issue directives
– This is a type of pre-control that addresses:
• The potential problems of:
– Too many directives or
– Directives that are conflict
– Another form of pre-control is the establishment
of:
• A uniform procurement system
Diwakar Singh

Contd….
– All departments of organization will have :
• To follow these procurement rules
– Procurement standards are fixed:
• To ensure the quality and
• Quality of inputs
– Thus, the pre-control system:
• Increases the possibility that future results will be
closer
– To planned targets or goals
Diwakar Singh

Contd….
• Concurrent control system:
– Called gatekeeper control or real time control
– Adjustment are made in the on-going activists
• To ensure compliance with the standards
– During this part of the control process
• Managers and workers can:
– Spot errors and
– Correct
• This continues checking on control helps organization
– To prevent supplying defectives or
– Badly made goods to consumers
Diwakar Singh

Contd….
• For example:
– The quality of product is checked
• While in progress
– If some defects are found
• Send back for repair
– Similarly, the use of raw-material is
• Monitory regularly
– The stock is inspected to ensure
• The regular supply
Diwakar Singh

Contd….
• Post control system:
– Also called feedback control
– Takes place the work process in completed
– Thus, concentrates on past performance
– The basis of post-control is a comparison of:
• Historical data with current information
– For example:
• Financial analysis
• Productivity
• Profitability
• Employee performance
Diwakar Singh

Contd….
• Post-control activities give correct feedback to
management:
– To take necessary corrective actions
Diwakar Singh

Characteristics of Effective Control
System:
• The features of an effective control system:
– Stonner (1978) has suggested that an effective
control system should be:
– Timely:
• To maintain work standard
– To control measures should be token at:
» The right times depending on their purpose at
• Any particular time
– Simple:
• Control measures must be simple
Diwakar Singh

Contd….
– Minimal:
• Control should be as far as possible:
– The work done and standards are maintained
– Flexible:
• Too rigid controls may be self-defecting
– Accurate:
• The information provided by the control system must
be:
– Reliable and
– accurate
Diwakar Singh

Control:
– Objective and comprehensive:
• The control system must be clearly understood by:
– Employees working under it
– Focused:
• The control system should focus on points at which
deviations form:
– Standards are most likely to occur or
– Could do the greatest damage
– Realistic:
• The control system must be realistic
– Acceptable:
• To be effective, the control system must have:
– The general acceptance of the employees
Diwakar Singh

Potential Barrier to Successful
Controlling:
• There are sometimes barriers to:
– Testing
– Measuring
– Communicating
– Observation
• These barriers can reduce:
– The efficiency of the organization
– Also in the controlling process
Diwakar Singh

Contd….
• Barriers to organizational control can include:
– Scarcity of resources
– Inaccurate measurement of the process
– Improper information flow
– Incorrect analysis
• Resource scarcity:
– Managing control typically requires a number of
resources, they are:
• Supervisory staff
Diwakar Singh

Contd….
• Skilled specialists
• Tools to measure
– the control of the system
• Statistical software
• Inaccurate measurement:
– Managing control can happen for a number of
different reasons, including:
• Misunderstanding of the measurement process by staff
• Inaccurate or misleading measurement processes
• Lack of staff training to determine how
– To measure the control process
Diwakar Singh

Contd….
• Information flow issues:
– Information is collected point in
• The process and
• Analyzed contextually another
• This time lag in information flow can
– Misdirect management to problem at
• The wrong time in the sequence
– Barrier of information flow:
• A lack of resources
Diwakar Singh

Contd….
• Inaccurate measurement
• Information flow errors
• Incorrect analysis
• Managers should be aware of these barriers
and do their best:
– To avoid them together:
• Planning
• Training and
• Accuracy
Diwakar Singh

Quality Control System:
• Function of ensuring that:
– Product/service quality conforms
• To predetermined standards
• A quality control program involved:
– Determine minimum standards of accepting
• The standards have been determined:
– The acceptability of the actual work can:
• compared with expected standards
Diwakar Singh

Contd….
• If there is serious lack of:
– Conformity
– Corrective measure
• It implies five activities (Jones, George & Hill
(2012)):
• Determining tolerances:
– Range within which deviation in :
• Actual quality from standard
Diwakar Singh

Contd….
• Conducting inspections and test of:
– Materials
– Processes
– Products
• Isolating acceptable units from those
– Which do not conform to quality standard
– Pronging causes of deviation:
• To the attention of the concerned manager
– Suggesting ways and means of improving the quality
Diwakar Singh

Contd….
• Quality control has several advantages:
– Direct and indirect
– Which are stated as follows:
– Quality control directly attacks waste:
• It enables a manufacturer to minimize
– It costs he/she incurs through rejections
– his./her inspection costs
• Quality control helps management in finding:
– Defective products
• Which can be reworked
Diwakar Singh

Contd….
• Quality control has a beneficial on “machine-
shop production”
– The operatives and others involved can:
• See for themselves weather or not
• They are succeeding in maintaining the standards
• Quality control does not measure merely the final
products:
– Rather it starts with the input
– Samples of incoming materials are inspected:
• To determine . If they meet preset standards
Diwakar Singh

Total Quality Management:
• Concept of TQM:
– The focus of quality is on every activity of the
organization
– A comprehensive approach to improving
• Product quality and
• Theory customer satisfaction
– The TQM concept was first developed by:
• A member of consultants including:
• W. Edwards Deming
• Joshep Juran
• A.V. Feiganbaum
Diwakar Singh

Contd….
• They indicate the same principles and
elements of TQM:
– In these definitions, three ingredients:
– The TQM process to take place
• Customer- centered approach
• Contours process improvement
• The use of terms
Diwakar Singh

Contd…
• Customer- centered approach:
– Should be the ultimate goal of an enterprise
– Satisfied customers are the biggest assets of the
enterprise
– All the members of an enterprise who are involved
in:
• The process of producing the goods/services
– They are the internal customers of the enterprise
Diwakar Singh

Contd….
– Every individual/unit within the enterprise is:
• Viewed as a chain of which only the final part is:
– The external customer
– Therefore, the indicators of customer-centred
behavior are:
• Greeting
• Asking
• Speaking
• Assisting
• responding
Diwakar Singh

Contd….
• Continuous process improvement:
– TQM program emphasizes on never-ending quality
improvement activities
– A Japanese word describing this process of
involving everybody “Kaizen” means:
• Step-by-step gradual improved
• Doing little things better
• Continuously setting
• Achieving even-higher standards
Diwakar Singh

Contd….
– Kaizen says that Kaizen is:
• The single truth behind Japan’s economic miracle and
• Real reason for its “flexible manufacturing” technology
• The use of teams:
– Small group
– To solve problems in the workplace is:
• Another aspect of TQM
– Problem solving teams called quality circles are:
• Very effective in quality management
Diwakar Singh

Tools and Techniques of TQM:
• Managers must be aware of:
– The methods and
– Techniques of quality management
– These techniques can be very useful in:
• The quest for quality improvement
– Some common techniques of quality management
are as follows:
Diwakar Singh

Contd….
• Bench-marking:
– The process of continually comparing:
• An organization's performance against
– The performance of the best organization in similar because,
» To determine what should be improved
– Such a comparison may be:
• General practices or services
• Specific product design
• Business processes
• Administrative methods
Diwakar Singh

Contd…
– Comparison provides information to the organization:
• To take actions to improve its
– Performance
– Quality
– Hence, the primary concern in benchmarking is to
search for:
• The best organization’s practices
– Benchmarking is of two types:
• Internal
• External
•
Diwakar Singh

Contd…
• Internal benchmarking:
– Measures and compares the process and of
• One of unit with the other unit of
– The same organization
• This naturally helps in upgrading
– The quality standard
– Efficiency
• External benchmarking:
– Compare process and practices with the best
organization
Diwakar Singh

Contd….
– Also known as competitor benchmarking
– Work process and practices are compared with:
• The competitor who is the best performance in that
business
– In other words:
• Both organizations agree to cooperate with each other
in:
– Sharing information about their practices
– Hence, both of them learn from one another’s
practice
Diwakar Singh

Contd….
• The important features and advantages of
bench marking practices are as follows:
– Symmetric approach to performance and quality
improvement
– Has a cyclical or repetitive nature
– Involves a goal-setting process
– Raises the importance of communication and
commitment
– Imitates a learning process
Diwakar Singh

Contd….
• ISO 9000:
– Stands for international organization for standards
– Derived from isos:
• A Greek word (meaning equals)
– Actually a series of five related standards:
• Numbered 9000 through 9004 that has
– Adopted by more than 90 countries
– An internationally agreed series of standards:
• Which sets out the criteria for world-class quality
mgmt. system
Diwakar Singh

Contd…
– In late 1990s:
• Another system known as ISO 14000 has been
introduced
• This system ensures to environmental friendly nature of
products
• Considered as environmentally responsive
– Nepal Bureau of Standard and Metrology (NBSM)
has adopted
• The ISO 9000 standards
Diwakar Singh

Contd….
– The purpose of standard is:
• To improve quality in all businessman for benefit
• Products and customers
– Was originally designed for manufacturing
– NBSM counsels the Nepalese manufacturing
establishment
– To install the components of quality system standard's prepare
for ISO 9000 certification
– Likewise, the Federation of Nepalese Chamber of
Commerce and Industries (FNCCI)
– Nepal Chambers of Commerce (NCC)
Diwakar Singh

Contd….
– And other related agencies have been
• To create awareness among industries about ISO 9000
standard
– Awards with ISO 9000 certification by NBSM
– Such firms are audited by NBSM using
international quality assessment criteria
Diwakar Singh

Contd…..
• Responsiveness:
– To survive and win
– Gain competitive advantages by :
• Being better
• Smarter and
• Faster than their competitors
– Thus, the fundamental success drivers are:
• Quality
• Cost competiveness
• Innovation and
• responsiveness
Diwakar Singh

Contd….
• Outsourcing:
– A process of contracting out some functions of an
organization to outside firms.
– Outsourcing system increases:
• Efficiency
• Reduce cost
• Enhances productivity of resources and
• Improve quality
Diwakar Singh

Contd….
– Functions:
• Security
• Transportation
• House-keeping
• Legal service
• Canteen service
• Postal service etc.
– Helps in restructuring and downsize of
organizations
Diwakar Singh

Contd…..
• Quality circles:
– Work involvement and
– A powerful method of employee empowerment
– Purpose:
• The TQM process is:
– To ensure the best cross-section of individuals who work
within a given process
– The characteristics of quality circles are following
in:
Diwakar Singh

Contd…..
• Sufficient training of members, including:
– Efforts to improve members’ understanding of group
dynamics and
– Ways to work effectively in groups
• Inside the circles, the members have good access to
useful information.
• It turns themselves into intact work terms with strong
commitment to establish and improve products.
Diwakar Singh

Contd…..
• Six sigma:
– A fact base, data driven philosophy of quality
improvement that:
• Values defect prevention over defect detection.
– Defect-reduction program was pioneered by Motorola
(1980)
– It is to:
• Design
• Measure
• Analyze and
• Control the i/p side of production process
Diwakar Singh

Contd….
– A process that uses statistical models,
• Coupled with specific quality tools.
– Especially in identifying cost saving (application)
Diwakar Singh

Contd….
• Kaizen:
– A Japanese term
• The elimination of waste.
– Emphasizes that:
• Managers and other employees should be taught:
– Analyze all aspects of their organization’s product system
– To identify at sources of waste and to suggest ways to
eliminate waste
Diwakar Singh

Other Tools of TQM:
• Four important tools:
– Pareto Analysis
– Cause and effect diagram
– Control charts
– Flow charts
Diwakar Singh

Contd…
• Pareto Analysis:
– Joshep M. Juran (1940) (proposed)
– An Italian economist Vilfredo Pareto (1848-1923)
observed that:
• 80% of the national wealth belonged to about 20% of
the population.
• “80 – 20 principle or the principle of “Vital few and
trivial many”
• Vital makes the biggest difference between in quality
and performance.
Diwakar Singh

Contd….
– Constructing a bar chart by counting the number
of times significant quality problems occur
– Tallest bar on the chart represents most common
problems
Diwakar Singh

Contd….
• Fishbone Diagram:
– Resembles the skeleton of a fish,
– K. Ishikawa, University of Tokyo (1943)
– Called Cause and effect diagram
– Used by organization for identification of various
causes and sub-causes responsible for a problem.
– The causes are:
• Men, machine methods and measurements.
Diwakar Singh

Contd….
• Control charts:
– Used to monitor variations from a standard.
– Three lines are:
• The upper control limit
• Lower control limit
• Average line
– Purposes:
• Identifying the problem
• Analyzing the problem
• Monitoring on going process
• Detecting trends in the process
Diwakar Singh

Contd….
• Flow charts:
– Pictorial representation (show all steps)
– Any deviation from ideal path is detected. Thus this
technique can help detect deviation from the ideal
– Bar chart
– Pie chart
– Check sheet
– Run chart
– Scatter diagram and
– histogram
Diwakar Singh

Deming Management:
• Father of new industrial age.
• Studied mathematics and worked for the
US Dept. of Agriculture
• Developed the statistical process control
technique.
• To work with Japan on developing its
census system (1947)
• Japanese industries were convinced with
his idea and applied it
Diwakar Singh

Demining’s views on Quality
Management:
The following ideas for quality management:
• To increase quality,
– organization needs to develop strategic plans that
state goals and exactly and
– Spell out they will be achieved.
• Managers should realize that:
– Mistakes, defects and
– Poor quality materials should not be acceptable
• They should , therefore, be eliminated
Diwakar Singh

Contd…..
• First-line managers should be allowed:
– To spend more time working with employees and
– Providing them with the tools they need to do the
job.
• Management should create an environment in
which:
– Employees will not be afraid to report problems
or recommended improvements
Diwakar Singh

Contd….
• Output goals and targets should include not
only numbers or quotas or
– Also some notion of quality to promote the
production of defect-free output.
• Management should assume the
responsibilities to train employees in new
skills
– To keep pace with changes in workplace
Diwakar Singh

Principles of Deming’s Quality
Management:
Has proposed the following five principles of
quality management:
• Quality improvement drives the entire economy
• The customer always comes first.
• A person should not be blamed for quality
problem a system of management must be fixed
• Plan-do-check act (PDCA) should be enforced
• Continuous improvement should be sought
through extensive training, leadership, teamwork
and self-improvement
Diwakar Singh

Techniques of Deming’s Quality
Management:
• Proposed Fourteen points
• A summary of these fourteen techniques is
given below:
– Constant purpose
– New philosophy
– Give up quality by inspection
– Seek continuous improvement
– Train everyone
Diwakar Singh

Contd….
– Avoid the constant search for lowest-cost suppliers
– Provide real leadership drive fear out of the workplace
– Promote teamwork
– Avoid slogan and targets
– Get rid of numerical quotas
– Remove barriers that stifle pride in workmanship
– Education and self-improvement are key
– The transformation is everyone’s job.
Diwakar Singh

Quality Improvement Process:
Concept of Quality Improvement:
• An organization needs to understand its own
production, service, delivery system and key
process to understand quality improvement.
• Process is frequently measure in terms of
results, employee and stakeholder satisfaction
and cost.
• Quality is a circular process meaning that it
never really completed.
Diwakar Singh

Contd….
• The planning phase is used to determine the
root-cause of a problem
• In the do phase of the cycle the individual will
use a problem-solving method
• The check phase is used to test management’s
idea and see it actually working
• The act phase allows the individual to
implement and look for new ways to improve.
Diwakar Singh

Contd….
Steps in the quality improvement process:
• The following basic steps are:
– Establish a culture of quality
– Determine and prioritize potential areas for
improvement
– Collect and analyze data.
– Communicate your results
– Commit to ongoing evaluation
– Spread your successes
Diwakar Singh

Pom control and quality management

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Pom control and quality management

Similar to Pom control and quality management (20)

More from Diwakar Singh

More from Diwakar Singh (7)

Recently uploaded

Recently uploaded (17)

Pom control and quality management