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A Quick Guide to Quality Management


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This presentation is aimed at helping small and medium businesses in their Quality Management. The module starts with an introduction to the function, Roles and Responsibilities of executives in the function, Key tools and methodologies,ISO9001 clauses, 7QC tools and various templates for MIS analysis.

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A Quick Guide to Quality Management

  1. 1. Introduction Not quite sure if this book would be useful for you? If you belong to any of the category of people mentioned below, then this book is for you. • Manufacturing Sector expects the engineers to be Job- ready. However, the engineering curriculum does not cover some of the basics required in the manufacturing sector. This book would help in understanding the basics, so that a fresh engineer can perform his role immediately aCer joining the company. Fresh Engineers interested in joining Manufacturing Sector • This book can serve as an “InducIon Manual” for the new Supervisors and Engineers in the shop floor. Job ResponsibiliIes, Do’s and Don’ts for each role, Tools and Techniques and MIS reports are explained for each department. This would help in faster career growth. Supervisors / Engineers in the Shop floor • This book can serve as a Quick Guide to teach you and your employees, the basics of manufacturing organizaIon. This would also help you in managing your people, building the organizaIon to the next level by creaIng strong processes. Second GeneraIon Entrepreneurs
  2. 2. Why this book? • In India, several studies conducted on the employability skills state that only 5% to 10% of the Engineers graduating from the Institutions are Job-Ready / Employable. • Industries require workforce which are readily employable, so that they do not have to spend a lot of money and effort on providing basic skills and on- the-Job training • While large organisations have Induction training for their employees, many medium and small scale companies do not have proper structure to provide this training • Their employees work with very little awareness of the best practices of the industry, making them frustrated, fire-fighting for day-to-day activities and results in a lot of stress • This also makes the companies uncompetitive, leading to poor business performance, resulting in poor motivation of the people, and this becomes a vicious cycle • This publication is aimed at providing the fundamentals of manufacturing management which are not offered by any of our institutions/curriculum to Engineers and Diploma Holders who are joining Manufacturing Industry • This is our initiative to empower the professionals in performing more efficiently and effectively helping the organization and the nation • In addition, this gives us immense satisfaction that we are giving something back to the ecosystem we are working in and are able to challenge the traditional way of thinking and practices.
  3. 3. What do we cover in the book? A typical manufacturing company has Production, Production Planning, Quality, Stores, Purchase, Maintenance, Finance & Accounts, Marketing, Human Resources, Admin , Information Technology and Sales functions. However, we would cover 1. Production 2. Production Planning 3. Purchase 4. Stores 5. Quality 6. Maintenance functions in this book, since these are the major areas, an Engineer or a Diploma/Degree Holder joins after his/her degree.
  4. 4. Structure of the contents Each department / function is explained in the following structure: • General Introduction to the Function / Department • Organization Structure of the function • Roles and Responsibilities of the key incharges • Process Flow in the function • Tools and Techniques required in the function • Pictures and tables to demonstrate the activities (wherever applicable) • MIS Reports and the Analysis to be done • Key Result Areas (KRAs) and Key Performance Indicators (KPIs) for each function
  5. 5. Chapter 1 Introduction
  6. 6. Introduction to Manufacturing Company A manufacturing company produces goods (or materials) using tools, machines, chemical processing, biologic processing or formulation and with the use of people. Manufacturing ranges from small hand-made products (Handicrafts industry) to large / Hitech products (Aircraft / Bullet Trains). A typical manufacturing company procures many parts/raw materials from various suppliers (or Vendors), process them (discrete manufacturing or flow manufacturing) and sell to its customers. These customers may be the end users of the product or may use the products to make other products. For e.g. A glass manufacturing company procures silica and other raw materials for making glass. This can either be sold as end product to consumers (for home use) or to an Automotive factory to use these glass for cars (of course, the grades would be different). In this book, we consider a typical manufacturing company consisting of a few discrete manufacturing processes (e.g., Turning, Milling, Polishing, etc.).
  7. 7. There are various functions (or departments) in organisations, each focusing on a few major activities. 1. Production Function - Focuses on the manufacturing of the product 2. Purchase Function - Focuses on purchasing / buying the raw materials and consumables required for the production 3. Stores Function - Focuses on the receiving the incoming raw materials, holding them properly and issuing them to the user department when there is a need for the materials 4. Maintenance - To keep all the machines ready for production. To prevent break-downs of machines, Each function consists of a group of persons (or a single person) performing their tasks. A company is headed by the CEO / Directors / Owners depending on its structure. Various levels of managers across various functions report to the CEO / Directors. Supervisors / In-charges report to the managers and they manage the operators (shop floor employees across various levels) Pic: 1.1 - Various Levels of Employees CEO / VP / Promoter Process steps that take time, (VA) A process step that transforms or shapes a product or service, which is eventually sold to a customer. resources, or space, but do not add value to the product or service. Directors / Promoters Managers (various levels) Supervisors / Incharges (various levels) Operators / Employees (various levels) Senior Management Level Middle Management Level Junior Management Level Employee Level
  8. 8. Internal and External Customer External Customer: A customer who buys the product / services of a company. All the functions in an organization exist to fulfil the need of these end customers. This customer is not a part of your organization but pays your organization for the products / services. Internal Customer: A member of the organization providing goods / services for other members inside the organization. For e.g. Stores issues raw materials to production. So Production function is a customer for Stores. Inside Production function, each operation sends the product to the next operation thus becomes a supplier to the next operation. These are called Internal Customers and Internal Suppliers. Pic: 1.2 - Internal Suppliers and Customers Stores Production Internal CustomerInternal Supplier
  9. 9. Goals of each department Each department works with a set of goals which are aimed at satisfying / exceeding their Internal / External customer’s needs. These goals are called Key Result Areas (KRA’s) or Department Objectives / Targets. Generally there are 6 major categories of objectives / KRAs: 1. Productivity 2. Quality 3. Cost 4. Delivery 5. Safety 6. Morale These KRA’s needed to be measured through various Indicators. They are called Key Performance Indicators (KPIs). For e.g. Productivity can be measured by indicators like “output per person per day”, “Planned production vs. achieved production”, “Utilisation of the machine”, etc. Similarly, Quality can be measured by “Reduction in defectives”, “% of yield”, etc. All the departments will have KRAs and KPIs to measure their performance. Generally there would be a Monthly Review Meeting (MRM) to discuss the performance and take corrective and preventive actions.
  10. 10. Chapter 2 Quality
  11. 11. What is Quality? • “Quality is fitness for use” – Juran • In an organization, Quality function means, the department which independently works on attaining specified levels of product / process quality of the core busines • Quality Department can either be a quality control department or a Quality Assurance department • Quality Department is the final In-Charge of the quality at the customer’s end Pic: 7.1 - Quality Control Vs. Assurance Quality Control Quality Assurance Focus on Product Focus on Processes Analysis after Completion of work Prevention is better than cure Operation specific Core value; Organisation-wide Individual/department oriented Leads to team work
  12. 12. Quality Function’s Structure • Head of Quality Assurance reports to the CEO of the company • Normally there would be In-Charges for the three focus areas of Quality: • Incoming Inspection • In-process or online inspection, and • Final Inspection or Finished Goods Testing or Batch Release Testing – previously done as Quality Control • In Manufacturing Industries, Testing Laboratories comes under the QA. Pic: 7.2 - Organization Structure of Quality Function Head - Quality Assurance In-Charge Incoming InspecIon In-charge In-process InspecIon In-Charge Final InspecIon
  13. 13. Responsibilities of QA Incharges Pic: 7.3 - Responsibilities of Quality Incharges Incoming Inspection Incharge In-Process Inspection Incharge Final Inspection Incharge Incoming Inspection: Ensure the Raw materials used in production are as expected and fit for use Supplier Development: Asserting the suppliers of their ability to supply consistently good quality and improve them Identify the parameters of the machines and/or intermediates which are critical to quality of the Final Product and help production to avoid problems in those parameters Final Inspection: Check the conformance of final products to the customers’ requirements and ensure that the customer who is going to receive them get satisfied with the products. Customer Feedback:Get the feeling of customers upon using our products and develop our internal product specifications
  14. 14. Quality Plan • All the five major aspects are covered in the Quality plan Document in the following manner: • Specification for Raw Materials and Parameter to be checked upon receipts • Critical To Quality (CTQ) parameters of machine settings or intermediate products and checking or verification points • Final product specifications and parameters to be tested for the conformance to customers’ requirements. • Sampling and Testing methods along with the action to be taken in case of any deviation for all the above • In a nutshell, the quality plan describes how the quality of product / process is managed in an organisation.
  15. 15. Quality Plan – Example • Let us assume the Customer requirement is metal sheets for fabrication which measures 10 x 5 inch metal plate in Green color with two holes • Upon accepting the Purchase order from the customer, the company works on defining the product requirements as per the internal understanding. This becomes the product specification and the target output quality. • The customer requirement of 10 x 5 inch metal plate in Green color has translated in to: • MS / SS / Aluminium sheet • 252 mm length,126 mm width and 0.4 mm thickness (not given in the product requirement and developed internally based on factors such as strength, pricing, etc.) • Powder coated with Green color of Standard Color (with code - abcd) with • Two holes of 2 mm diameter as per the drawing
  16. 16. Drawing based on Customer’s Requirement Pic: 7.4 - Drawing based on Customer’s Requirement
  17. 17. Internal Specification • This final requirement/drawing is worked backward - the internal requirements needed are listed and those become our in-process specifications. • At Painting Section, Painting Color (abcd) and the coat thickness are internal parameters. • At Cutting section, Size specifications are – • L : 256 +/- 2 mm • W : 130 +/- 2 mm (4 mm extension is made for bending) • The holes as per the drawing • For inward inspection, the sheet thickness, dimensions and paint color forms a specification
  18. 18. Quality Management System - QMS • A quality management system is a set of co-ordinated activities to direct and control an organisation ensuring that the organisation is continually improving its performance. • Quality Plan is an integrated component in the Quality Management System • A QMS enables an organisation to achieve the goals and objectives set out in its policy and strategy. • It provides consistency and satisfaction in terms of methods, materials, equipment, etc, and interacts with all activities of the organisation, beginning with the identification of customer requirements and ending with their satisfaction, at every transaction interface. • It can be envisaged as a “wedge” that both holds the gains achieved along the quality journey, and prevents good practices from slipping
  19. 19. Defects and Non-Conformance Defective: • When an item fails to meet its specification and / or known to fail to meet its intended use, the item/product is called a defective. E.g. A casting with a blowhole Defect: • The exact reason / cause for the problem is called the defect. i.e. the blowhole Nonconformity: • Any non-fulfillment of requirement is called nonconformity. E.g. a casting without blowholes is required. But the process produced a casting with blowhole. This is a non-conformity
  20. 20. Corrective and Preventive Actions Correction: • An action to eliminate a detected nonconformity is called a correction. • A correction can be a rework, reprocess, repair, degrade, replacement or rejection. Corrective Action (CA): • Actions to eliminate the cause of detected nonconformities are called corrective actions. (Actions to eliminate the recurrence of nonconformity). • Timely Solution – One-time solution • Reactive Solution – after the problem has occurred Preventive Action (PA): • Actions to eliminate the causes of a potential nonconformities or other undesirable potential situations are called preventive actions. (Actions to eliminate the occurrence of nonconformity). • Proactive solution – before the problem has occurred Quality tools can be used (Pareto charts, Fish bone analysis, etc. / 5 Why analysis / other tools) for taking CA&PA
  21. 21. 7 QC Tools Seven QC tools are fundamental instruments to improve the quality of the product • Seven QC tools are utilised to organise the collected data in a way that is easy to understand and analyse • They are used to analyse the production process, identify the major problems, control fluctuations of product quality, and provide solutions to avoid future defects 1 - Check Sheet • A check sheet is a pre-designed format for collection of data that encourages organized collection and group’s data into categories. • Categories are created in advance and may be added as needed. A check mark is added for each example of a category. The marks are added to determine subtotals. • When to use it? To keep track of the parameters of an ongoing process. It can be used to track events by such factors as timeliness (on time, one day late, two days late, etc.); reason for inspection failure (appearance, performance, etc.); person accomplishing the task (sales calls per representative) etc.
  22. 22. 1 - Check Sheet Example: A company wants to check the weight of bags of sugar that are supposed to weigh 100 kg. The resulting checklist is shown in the following Table. The checklist indicates that the machine is not filling all the bags within the specification. Sugar Bag Weight Check Sheet - (Specification : 100kg. ± 2 Kg.) Pic: 7.6 - Check Sheet & its data entry method
  23. 23. 2 – Graphs • Graphs are used for the purpose of comparison of visual representation of data collected. • The most commonly used graphs are in the form of Bar charts, Line charts and Pie charts. o Bar charts can be used to compare revenue projections , growth in sales volume over a time period Pie Charts can be used to represent the region-wise revenue share / category- wise contribution to the profits etc. Pic: 7.7 - Graphs and its uses
  24. 24. 3 – Histogram •A display of the distribution of data by category. •It is a more effective way of displaying data than a table of figures (Check Sheet) because it gives a visual indication of relationships. •When to use it? Use a histogram to observe whether data falls into a specific pattern. The chart will indicate the extent of variation. •Example shown here is the same data shown in the check sheet. Observe how the histogram visually creates an impact Pic: 7.8 - Histogram
  25. 25. 4– Pareto Analysis • “ 80% of the problems are caused by 20% of the causes” • Focus on ‘Vital Few’ – Leave out the ‘Trivial Many’ • It is a principle discovered by Pareto • This is an universal philosophy and can be applied anywhere! • In a nation, 80% of the wealth is owned by 20% of the people ) and the remaining 20% of the wealth belongs to the 80% of the people • In Purchase department, 80% of the total purchase value would be contributed by the top 20% of the items Pic: 7.9 - Pareto Analysis and its uses
  26. 26. 5 - Cause and Effect Diagram / Ishikawa Diagram • Cause & Effect Diagram is an analysis technique for identifying the possible causes of an observed problem or effect. It aims to trace process problems upstream in order to identify their root causes and to enable action to remove them • This is also called Fish Bone diagram (or) Ishikawa Diagram • Cause & Effect diagram is a simple but powerful tool for getting, objectively, to the bottom of the problem. It can be used to: • Define a problem • Break problems down into their constituent elements • Help generate ideas / add structure to brainstorming • Identify relationships between causes (which are often present but hidden) • Assist decision making
  27. 27. 5 - Cause and Effect Diagram / Ishikawa Diagram Also Called as Fish Bone Diagram How to use Fish Bone diagram •Name the Head of the fish with exact problem •Draw minimum of four branches as shown in figure depicting 4Ms – Machine, Material, Method and Man •Brainstorm: •What can be the possible causes? •Search causes among machine first, then material, method, and man. Pic: 7.10 - Fish Bone Diagram / Ishikawa Diagram
  28. 28. 6 - Scatter Diagram •A means for showing a relationship between two variables. •The diagram creates a coordinate for each variable, and then plots the occurrences where the values intersect. •To find out whether there is a correlation between the variables. •Establish vertical and horizontal axes with appropriate scales. •Usually, the horizontal axis is the one over, which you have control. Plot each data point. Look at the pattern. •The more closely the dots group along an axis, the stronger the correlation. The more scattered they are, the weaker the correlation. Pic: 7.11 - Scatter Diagram
  29. 29. 7 - Control Chart • Control Chart is a means of monitoring a process according to tolerance limits. • The chart allows you to track the normal variations that indicate a process is in control and to determine when it goes out of control. • A control chart is closely related to Statistical Process Control. It's a visual means of representing whether a process is within statistical limits. • When to use it: For any process with frequent and measurable outcomes. • How to use it: Take a random sample of outcomes and determine upper and lower control limits. • Once the control limits have been determined, plot the outcomes over time or occurrence. • If a value is obtained that is outside the control limits, it's necessary to investigate the cause. If all the values are within the limits, then the process is under control. Pic: 7.12 - Control Charts
  30. 30. MIS Reports The list below explains the various parameters to track, the reports to generate, the frequency and the person-in-charge in the Quality function: Report - 1 Report Name Incoming Quality Report Nature of Report Quality trends of all items coming into the stores Frequently Monthly Who Prepares it Quality Manager Analysis Points What are the items that frequently arrive with quality issues? What are the defects found on them? Are the defects clearly communicated to the suppliers? Why is the supplier not able to improve the quality level? What is the corrective action and Preventive Action? When is the problem expected to get solved?
  31. 31. MIS Reports Report - 2 Report - 3 Report Name Final Inspection Report Nature of Report Product-wise / Defect category-wise - pareto analysis Frequently Monthly Who Prepares it Quality Manager Analysis Points What are the defects and their frequency? Is there a trend? Why are the defects not controlled at the in- process inspection level? What is the pareto of defects? Cost involved in rework? What is the rejection rate? What are the tools used for analysis? What are the Corrective and Preventive Action taken? Report Name In-process Inspection Report Nature of Report Product-wise / Defect category-wise - pareto analysis Frequently Monthly Who Prepares it Quality Manager Analysis Points What are the defects occurring in-process? Is there a trend? What is the pareto of defects? Cost involved in rework? What are the tools used for analysis ? What are the Corrective and Preventive Action taken?
  32. 32. MIS Reports Report - 4 Report Name Customer Complaint / Feedback report Nature of Report Product-wise / Defect-wise / Customer-wise Frequently Monthly Who Prepares it Quality Manager Analysis Points What are the types of customer complaints? What is the pareto analysis of defects? Why the defects are not identified before dispatch? What are the corrective and Preventive Action taken to ensure this problem is not repeated? How is our action communicated to the customers? Report - 5 Report Name Analysis of the Quality Issues Nature of Report Defect-wise / Product-wise Frequently Monthly Who Prepares it Quality Manager Analysis Points Types of defects? Pareto analysis? Root cause and their effect on the product, processes and cost? Summary of the corrective and preventive action taken. Results of the various actions taken? Future action plan?
  33. 33. What are the KRAs and KPIs of your department? Goals / KRAs Performance Indicators / KPIs Measure Current Level Target Productivity Rejections / Reworks Reduction in PPM 80% 100% Quality Number of QC circle projects - Cost Savings in Rs. Cost Reduction in Cost due to improved Quality in Rs. Prepare your department’s KRA’s in case your organization does not have them.
  34. 34. Learning’s from the Section At the end of Quality Section, Are you clear on the following? • Difference between Quality Control and Quality Assurance • Responsibilities of QA incharges in the ‘Incoming’, ’In-Process’ and ‘Final’ Inspection areas • Quality Management Systems • Quality Plan • Internal Specifications • Difference between Defects and Defectives • Corrective and Preventive Actions • Various tools of Quality • MIS reports and the analysis to be done
  35. 35. Interested in buying the book? Please click on any of the following links to buy. View Listing Print Book India View Listing View Listing View Listing View Listing View Listing International Print Books View Listing View Listing eBooks View Listing View Listing View Listing View Listing
  36. 36. Meet the Author Ananth is the CEO and Founder of Hash Management Services LLP. Ananth has over 12 years of experience in the areas of Implementation of Lean Manufacturing concepts, Quality Management, and Supply Chain Management initiatives. Some of the industries he works/worked with are Textiles, Leather and Footwear, Castings and Forgings, Electronic Equipment, Pump Manufacturing, Fabrication, White goods, Heavy Engineering and Light Engineering sectors. He works with Industry bodies like CII, FICCI and currently working with International Labour Organization (ILO) for implementing their SCORE Program in a few auto ancillaries in Chennai. He is also an empaneled Lean Manufacturing Consultant (LMC) with National Productivity Council (NPC) and working on Implementing Lean Manufacturing principles for Small and Medium Enterprises. Prior to Hash Management Services LLP, he was a consultant with Deloitte`s consulting practice in India. Earlier, Ananth worked with Titan Industries Ltd, as a Senior Engineer responsible for productivity improvements and various quality initiatives. He holds PGDM from the IFMR, Chennai and a Bachelors degree in Mechanical Engineering from the Government College of Engineering, Tirunelveli. Please visit to know more about the ways we help manufacturing companies improve their operations and profitability.
  37. 37. Disclaimer The advice contained in this material is for a specific audience and not for general public. The author designed the information to present his opinion about the subject matter. The reader must carefully investigate all aspects of any business decision before committing him or herself. The author obtained the information contained herein from sources he believes to be reliable and from his own personal experience, but he neither implies nor intends any guarantee of accuracy. The author particularly disclaims any liability, loss or risk taken by individuals who directly or indirectly act on the information herein. The author believes the advice presented here is sound, but the readers cannot hold him responsible for either the take or the result of those actions.
  38. 38. Acknowledgements This book would not have been a reality without the contribution from V N Shiju who worked with me on creating the contents, L S Kannan contributed Quality section, Veerabaghu, my mentor and guide, my wife Jeyalakshmi who helped me in documentation, A S Senthil Kumar, my first boss who helped me understand the basics of manufacturing industry, my colleagues at Deloitte and all my friends who stood by me during some of the toughest times in my life.