This document discusses the importance of quality management systems. It explains that quality management ensures excellence in products, services, and processes by identifying weaknesses and areas for improvement. This allows companies to set standards and make adjustments to exceed customer expectations. The document then provides examples of how quality management can improve product performance, customer satisfaction, reduce waste, enhance productivity, and increase revenues. It also describes several common quality management tools: check sheets, control charts, Pareto charts, scatter plots, Ishikawa diagrams, histograms. Finally, it lists additional topics related to quality management systems.

1. Importance of quality management system
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I. Contents of importance of quality management system
==================
Quality management is a business principle that ensures excellence in a company's products,
services and internal processes. Companies that implement quality management programs use
the information from them to identify weaknesses, faults, areas for improvement and strengths.
This gives the company the ability to set standards, make adjustments as needed and to offer
greater value overall to their customer base. Although the approach to solving quality issues
varies with different programs, the goal remains the same – to create a high quality, high-
performing product or service that meets and exceeds internal and external customer
expectations. When companies focus on quality management, they create a plan for success.
1. Product Performance
o Quality management programs improve a company's product. The primary aspects of product
quality management start with performance, reliability and durability of the product. With
quality management programs, manufactured products undergo testing to verify they perform
according to its stated promises or features. This allows a company responsiveness to change
problem areas or improve product strengths. By adding quality management aspects at the design
phase of new products, for example, this allows companies to design performance benchmarks
into the product.

2. Customer Satisfaction
o These programs can also help to ensure customer satisfaction. By including customer surveys in
the QM program, key personnel gain understanding of the product features important to
consumers. By widening the survey scope to include noncustomers, this provides additional
insight into why these people use the services of the competitor, allowing the company to
integrate these features into their products. Feature-specific surveys can target the areas of a
product or service that need improvement or work well already. These types of programs can
help a business create products that customers desire.
o
Reduce Waste
o A well-thought out quality management program can also help companies reduce waste.
Manufacturing companies, for example, that house raw material inventory pay for its storage,
management and tracking. These costs are built into the price of the product. By implementing a
supply-chain management program, a company can reduce the raw materials it has to keep on
hand, saving money and valuable space. Such a system injects a systematic approach to keeping
raw material needs equal to production requirements, which can help to bring down product
costs overall, improving the product's profit margin.
Enhanced Productivity
o Quality management programs also can identify areas for improvements in internal processes.
This approach can impact productivity by eliminating unnecessary tasks or improving existing
ones. It also generates teamwork when a company implements employee-based mixed
departmental teams that review internal processes. An example of this is the balanced scorecard
approach. This methodology provides a mechanism for evaluating department operations against
benchmarked performance expectations. This type of quality program identifies how well
individual areas of the company perform when compared with its established goals. It defines
whether a company needs to streamline or re-engineer its internal processes.
Increased Revenues
o Quality management programs help companies establish standards of operation in all
departments. By using these programs in multiple areas, a company can identify the strategies it
needs to implement. Through these programs, it can improve its reputation among its existing
customers, which can also help it attract new ones. This results in employees spending less time

3. and raw material inventory to produce quality products or services. This recaptures lost monies
while refining product and service excellence, ultimately leading to increased revenues and a
better bottom line.
==================
III. Quality management tools
1. Check sheet
The check sheet is a form (document) used to collect data
in real time at the location where the data is generated.
The data it captures can be quantitative or qualitative.
When the information is quantitative, the check sheet is
sometimes called a tally sheet.
The defining characteristic of a check sheet is that data
are recorded by making marks ("checks") on it. A typical
check sheet is divided into regions, and marks made in
different regions have different significance. Data are
read by observing the location and number of marks on
the sheet.
Check sheets typically employ a heading that answers the
Five Ws:
 Who filled out the check sheet
 What was collected (what each check represents,
an identifying batch or lot number)
 Where the collection took place (facility, room,
apparatus)
 When the collection took place (hour, shift, day
of the week)
 Why the data were collected
2. Control chart

4. Control charts, also known as Shewhart charts
(after Walter A. Shewhart) or process-behavior
charts, in statistical process control are tools used
to determine if a manufacturing or business
process is in a state of statistical control.
If analysis of the control chart indicates that the
process is currently under control (i.e., is stable,
with variation only coming from sources common
to the process), then no corrections or changes to
process control parameters are needed or desired.
In addition, data from the process can be used to
predict the future performance of the process. If
the chart indicates that the monitored process is
not in control, analysis of the chart can help
determine the sources of variation, as this will
result in degraded process performance.[1] A
process that is stable but operating outside of
desired (specification) limits (e.g., scrap rates
may be in statistical control but above desired
limits) needs to be improved through a deliberate
effort to understand the causes of current
performance and fundamentally improve the
process.
The control chart is one of the seven basic tools of
quality control.[3] Typically control charts are
used for time-series data, though they can be used
for data that have logical comparability (i.e. you
want to compare samples that were taken all at
the same time, or the performance of different
individuals), however the type of chart used to do
this requires consideration.
3. Pareto chart

5. A Pareto chart, named after Vilfredo Pareto, is a type
of chart that contains both bars and a line graph, where
individual values are represented in descending order
by bars, and the cumulative total is represented by the
line.
The left vertical axis is the frequency of occurrence,
but it can alternatively represent cost or another
important unit of measure. The right vertical axis is
the cumulative percentage of the total number of
occurrences, total cost, or total of the particular unit of
measure. Because the reasons are in decreasing order,
the cumulative function is a concave function. To take
the example above, in order to lower the amount of
late arrivals by 78%, it is sufficient to solve the first
three issues.
The purpose of the Pareto chart is to highlight the
most important among a (typically large) set of
factors. In quality control, it often represents the most
common sources of defects, the highest occurring type
of defect, or the most frequent reasons for customer
complaints, and so on. Wilkinson (2006) devised an
algorithm for producing statistically based acceptance
limits (similar to confidence intervals) for each bar in
the Pareto chart.
4. Scatter plot Method
A scatter plot, scatterplot, or scattergraph is a type of
mathematical diagram using Cartesian coordinates to
display values for two variables for a set of data.
The data is displayed as a collection of points, each
having the value of one variable determining the position
on the horizontal axis and the value of the other variable
determining the position on the vertical axis.[2] This kind
of plot is also called a scatter chart, scattergram, scatter
diagram,[3] or scatter graph.
A scatter plot is used when a variable exists that is under
the control of the experimenter. If a parameter exists that

6. is systematically incremented and/or decremented by the
other, it is called the control parameter or independent
variable and is customarily plotted along the horizontal
axis. The measured or dependent variable is customarily
plotted along the vertical axis. If no dependent variable
exists, either type of variable can be plotted on either axis
and a scatter plot will illustrate only the degree of
correlation (not causation) between two variables.
A scatter plot can suggest various kinds of correlations
between variables with a certain confidence interval. For
example, weight and height, weight would be on x axis
and height would be on the y axis. Correlations may be
positive (rising), negative (falling), or null (uncorrelated).
If the pattern of dots slopes from lower left to upper right,
it suggests a positive correlation between the variables
being studied. If the pattern of dots slopes from upper left
to lower right, it suggests a negative correlation. A line of
best fit (alternatively called 'trendline') can be drawn in
order to study the correlation between the variables. An
equation for the correlation between the variables can be
determined by established best-fit procedures. For a linear
correlation, the best-fit procedure is known as linear
regression and is guaranteed to generate a correct solution
in a finite time. No universal best-fit procedure is
guaranteed to generate a correct solution for arbitrary
relationships. A scatter plot is also very useful when we
wish to see how two comparable data sets agree with each
other. In this case, an identity line, i.e., a y=x line, or an
1:1 line, is often drawn as a reference. The more the two
data sets agree, the more the scatters tend to concentrate in
the vicinity of the identity line; if the two data sets are
numerically identical, the scatters fall on the identity line
exactly.

7. 5.Ishikawa diagram
Ishikawa diagrams (also called fishbone diagrams,
herringbone diagrams, cause-and-effect diagrams, or
Fishikawa) are causal diagrams created by Kaoru
Ishikawa (1968) that show the causes of a specific
event.[1][2] Common uses of the Ishikawa diagram are
product design and quality defect prevention, to identify
potential factors causing an overall effect. Each cause or
reason for imperfection is a source of variation. Causes
are usually grouped into major categories to identify these
sources of variation. The categories typically include
 People: Anyone involved with the process
 Methods: How the process is performed and the
specific requirements for doing it, such as policies,
procedures, rules, regulations and laws
 Machines: Any equipment, computers, tools, etc.
required to accomplish the job
 Materials: Raw materials, parts, pens, paper, etc.
used to produce the final product
 Measurements: Data generated from the process
that are used to evaluate its quality
 Environment: The conditions, such as location,
time, temperature, and culture in which the process
operates
6. Histogram method

8. A histogram is a graphical representation of the
distribution of data. It is an estimate of the probability
distribution of a continuous variable (quantitative
variable) and was first introduced by Karl Pearson.[1] To
construct a histogram, the first step is to "bin" the range of
values -- that is, divide the entire range of values into a
series of small intervals -- and then count how many
values fall into each interval. A rectangle is drawn with
height proportional to the count and width equal to the bin
size, so that rectangles abut each other. A histogram may
also be normalized displaying relative frequencies. It then
shows the proportion of cases that fall into each of several
categories, with the sum of the heights equaling 1. The
bins are usually specified as consecutive, non-overlapping
intervals of a variable. The bins (intervals) must be
adjacent, and usually equal size.[2] The rectangles of a
histogram are drawn so that they touch each other to
indicate that the original variable is continuous.[3]
III. Other topics related to Importance of quality management system (pdf
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