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ASSIGNMENT
OPERATIONS MANAGEMENT
Submitted by:
08616603917
BHAWNA SINGH
MBA General- AB Section
Ist Year- 2nd Semester
Submitted to:
Dr. S. SANJAY KUMAR
University School of Management Studies

Meaning of Quality
In business, engineering, and manufacturing, quality has a pragmatic interpretation
as the non-inferiority or superiority of something; it's also defined as being suitable
for its intended purpose (fitness for purpose) while satisfying customer
expectations.
Broadly defined, quality refers to the ability of a product or service to consistently
meet or exceed customer requirements or expectations. Different customers will
have different expectations, so a working definition of quality is customer-
dependent. When discussing quality one must consider design, production, and
service. In a culmination of efforts, it begins with careful assessment of what the
customers want, then translating this information into technical specifications to
which goods or services must conform. The specifications guide product and
service design, process design, production of goods and delivery of services, and
service after the sale or delivery.
Some of these consequences of poor quality include loss of business, liability,
decreased productivity, and increased costs. However, good quality has its own
costs, including prevention, appraisal, and failure. A recent and more effective
approach is discovering ways to prevent problems, instead of trying to fix them
once they occur. This will ultimately decrease the cost of good quality in the long
run.
Notable Definitions of Quality
The business meanings of quality have developed over time. Various
interpretations are given below:
1. American Society for Quality: "A combination of quantitative and qualitative
perspectives for which each person has his or her own definition; examples
of which include, "Meeting the requirements and expectations in service or
product that were committed to" and "Pursuit of optimal solutions
contributing to confirmed successes, fulfilling accountabilities". In technical
usage, quality can have two meanings:

a) The characteristics of a product or service that bear on its ability to
satisfy stated or implied needs;
b) A product or service free of deficiencies.
2. W. Edwards Deming: concentrating on "the efficient production of the
quality that the market expects," and he linked quality and management:
"Costs go down and productivity goes up as improvement of quality is
accomplished by better management of design, engineering, testing and by
improvement of processes."
3. Peter Drucker: "Quality in a product or service is not what the supplier puts
in. It is what the customer gets out and is willing to pay for."
4. ISO 9000: "Degree to which a set of inherent characteristics fulfills
requirements." The standard defines requirement as need or expectation.
5. Six Sigma: "Number of defects per million opportunities."
6. Genichi Taguchi, with two definitions:
a) "Uniformity around a target value." The idea is to lower the standard
deviation in outcomes, and to keep the range of outcomes to a certain
number of standard deviations, with rare exceptions.
b) "The loss a product imposes on society after it is shipped." This
definition of quality is based on a more comprehensive view of the
production system.
Dimensions of Quality
The concepts of dimensions of quality represent the fact that customers value a
product keeping in mind different dimensions. Quality and Operations Managers
come across customer perceptions relating to demand for durable, reliable,
performance to a standard and that too in a way that is aesthetically correct.
1. Performance - main characteristics of the product/service
2. Aesthetics - appearance, feel, smell, taste
3. Special Features - extra characteristics
4. Conformance - how well product/service conforms to customer's expectations
5. Reliability - consistency of performance

6. Durability - useful life of the product/service
7. Perceived Quality - indirect evaluation of quality (e.g. reputation)
8. Serviceability - service after sale

Quality Awards
Quality awards are prizes awarded for some aspect of quality performance that has
been demonstrated by an organization. Deming Prize was instituted by the Union
of Japanese Scientists and Engineers (JUSE) in 1951 to honor the contributions of
W.E. Deming towards quality control in Japan. This award is given to organization
who adopted and preached Total Quality Management principals successfully.
Similarly in line, Malcolm Baldrige National Quality Award (MBNQA) was instituted
in USA in the year 1987. In India, Bureau of Indian Standards constituted Rajiv
Gandhi National Quality Award, to promote excellence in Indian manufacturing and
service organisations, in 1991.
The Malcolm Baldrige National Quality Award (MBNQA)
The Malcolm Baldrige National Quality Award was established in 1987 when
Congress passed the Malcolm Baldrige National Quality Improvement Act. The
award is named after the former Secretary of Commerce Malcolm Baldrige, and is
intended to reward and stimulate quality initiatives. It is designed to recognize
companies that establish and demonstrate high-quality standards and is given to
no more than two companies in each of three categories: manufacturing, service,
and small business. Past winners include Motorola Corporation, Xerox, FedEx, 3M,
IBM, and the Ritz-Carlton.
To compete for the Baldrige Award, companies must submit a lengthy application,
which is followed by an initial screening. Companies that pass this screening move
to the next step, in which they undergo a rigorous evaluation process conducted
by certified Baldrige examiners. The examiners conduct site visits and examine
numerous company documents. They base their evaluation on seven categories,
which are shown in Figure. Let's look at each category in more detail.

FIGURE: Malcolm Baldrige National Quality Award criteria
The Baldrige criteria have evolved from simple award criteria to a general
framework for quality evaluation. Many companies use these criteria to evaluate
their own performance and set quality targets even if they are not planning to
formally compete for the award.
The Deming Prize
The Deming Prize is a Japanese award given to companies to recognize their efforts
in quality improvement. The award is named after W. Edwards Deming, who visited
Japan after World War II upon the request of Japanese industrial leaders and
engineers. While there, he gave a series of lectures on quality. The Japanese
considered him such an important quality guru that they named the quality award
after him.
It is a Japanese award given to companies to recognize efforts in quality
improvement.
The award has been given by the Union of Japanese Scientists and Engineers (JUSE)
since 1951. Competition for the Deming Prize was opened to foreign companies in
1984. In 1989, Florida Power & Light was the first U.S. Company to receive the
award.

ISO 9000 Standards
ISO 9000
A set of international quality standards and a certification demonstrating that
companies have met all the standards specified.
Increases in international trade during the 1980s led to the development of
universal standards of quality. Universal standards were seen as necessary in order
for companies to be able to objectively document their quality practices around
the world. Then in 1987 the International Organization for Standardization
published its first set of standards for quality management, called ISO 9000. The
purpose of the International Organization for Standardization (ISO) is to establish
agreement on international quality standards. It currently has members from 91
countries, including the United States. It created ISO 9000 to develop and promote
international quality standards. ISO 9000 consists of a set of standards and a
certification process for companies. ISO 9000 certification demonstrates that
companies have met the standards. The standards are applicable to all types of
companies and have gained global acceptance. In many industries ISO certification
has become a requirement for doing business. Also, ISO 9000 standards have been
adopted by the European Community as a standard for companies doing business
in Europe.
In December 2000 the first major changes to ISO 9000 were made, introducing the
following three new standards:
 ISO 9000:2000, Quality Management Systems—Fundamentals and
Standards: Provides the terminology and definitions used in the standards.
It is the starting point for understanding the system of standards.
 ISO 9001:2000, Quality Management Systems—Requirements: This is the
standard for the certification of a firm's quality management system. It is
used to demonstrate the conformity of quality management systems to meet
customer requirements.
 ISO 9004:2000, Quality Management Systems—Guidelines for Performance:
Provides guidelines for establishing a quality management system. It focuses
not only on meeting customer requirements but also on improving
performance.

These three standards are the most widely used and apply to the majority of
companies. However, ten more published standards and guidelines exist as part of
the ISO 9000 family of standards.
To receive ISO certification, a company must provide extensive documentation of
its quality processes. This includes methods used to monitor quality, methods and
frequency of worker training, job descriptions, inspection programs, and statistical
process control tools used. High-quality documentation of all processes is critical.
The company is then audited by an ISO 9000 registrar, who visits the facility to make
sure the company has a well-documented quality management system and that the
process meets the standards. If the registrar finds that all is in order, certification
is received. Once a company is certified, it is registered in an ISO directory that lists
certified companies. The entire process can take 18 to 24 months and can cost
anywhere from $10,000 to $30,000. Companies have to be recertified by ISO every
three years.
One of the shortcomings of ISO certification is that it focuses only on the process
used and conformance to specifications. In contrast to the Baldrige criteria, ISO
certification does not address questions about the product itself and whether it
meets customer and market requirements. Today there are over 40,000 companies
that are ISO certified. In fact, certification has become a requirement for
conducting business in many industries.
ISO 14000 Standards
The need for standardization of quality created an impetus for the development of
other standards. In 1996, the International Standards Organization introduced
standards for evaluating a company's environmental responsibility. These
standards, termed ISO 14000, focus on three major areas:
ISO 14000
A set of international standards and a certification focusing on a company's
environmental responsibility.

 Management systems standards measure systems development and
integration of environmental responsibility into the overall business.
 Operations standards include the measurement of consumption of natural
resources and energy.
 Environmental systems standards measure emissions, effluents, and other
waste systems.
With greater interest in green manufacturing and more awareness of
environmental concerns, ISO 14000 may become an important set of standards for
promoting environmental responsibility.
Total Quality Management (TQM)
A core definition of total quality management (TQM) describes a management
approach to long–term success through customer satisfaction. In a TQM effort, all
members of an organization participate in improving processes, products, services,
and the culture in which they work.
Total Quality Management (TQM) describes a management approach to long-term
success through customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products, services, and the culture
in which they work.
It consists of organization-wide efforts to install and make permanent a climate in
which an organization continuously improves its ability to deliver high-quality
products and services to customers. While there is no widely agreed-upon
approach, TQM efforts typically draw heavily on the previously developed tools and
techniques of quality control. TQM enjoyed widespread attention during the late
1980s and early 1990s before being overshadowed by ISO 9000, Lean
manufacturing, and Six Sigma.
Total Quality Management Principles: The 8 Primary Elements of TQM
Total quality management can be summarized as a management system for a
customer-focused organization that involves all employees in continual

improvement. It uses strategy, data, and effective communications to integrate the
quality discipline into the culture and activities of the organization. Many of these
concepts are present in modern Quality Management Systems, the successor to
TQM. Here are the 8 principles of total quality management:
1. Customer-focused
2. Total employee involvement
3. Process-centered
4. Integrated system
5. Strategic and systematic approach
6. Continual improvement
7. Fact-based decision making
8. Communications
Six Sigma
Quality plays an important role in the success and failure of an organization.
Neglecting an important aspect like quality, will not let you survive in the long run.
Six Sigma ensures superior quality of products by removing the defects in the
processes and systems. Six sigma is a process which helps in improving the overall
processes and systems by identifying and eventually removing the hurdles which
might stop the organization to reach the levels of perfection. According to sigma,
any sort of challenge which comes across in an organization’s processes is
considered to be a defect and needs to be eliminated.
Six Sigma is a methodology for improving the quality of operations management by
eliminating errors and defects, reducing cost, and saving time. It is primarily
intended for high-end engineering and manufacturing, where companies seek "six
sigma" quality (fewer than seven defects per million), but it can be adopted for
other product and service industries. It is expensive to implement, but, done
properly, pays for itself and makes companies into industry leaders and Centers of
Excellence.

Organizations practicing Six Sigma create special levels for employees within the
organization. Such levels are called as: “Green belts”, “Black belts” and so on.
Individuals certified with any of these belts are often experts in six sigma process.
According to Six Sigma any process which does not lead to customer satisfaction
is referred to as a defect and has to be eliminated from the system to ensure
superior quality of products and services. Every organization strives hard to
maintain excellent quality of its brand and the process of six sigma ensures the
same by removing various defects and errors which come in the way of customer
satisfaction.
The process of Six Sigma originated in manufacturing processes but now it finds its
use in other businesses as well. Proper budgets and resources need to be allocated
for the implementation of Six Sigma in organizations.
Following are the two Six Sigma methods:
 DMAIC
 DMADV
DMAIC focuses on improving existing business practices. DMADV, on the other
hand focuses on creating new strategies and policies.
DMAIC Method
D - Define the Problem.
M - Measure and find out the key points of the current process.
A - Analyze the data.
I - Improve the current processes based on the research and analysis done in the
previous stage.
C - Control the processes

DMADV Method
D - Design strategies and processes which ensure hundred percent customer
satisfaction.
M - Measure and identify parameters that are important for quality.
A - Analyze and develop high level alternatives to ensure superior quality.
D - Design details and processes.
V - Verify various processes and finally implement the same.
KAIZEN
“Kaizen” refers to a Japanese word which means “improvement” or “change for
the better”. Kaizen is defined as a continuous effort by each and every employee
(from the CEO to field staff) to ensure improvement of all processes and systems
of a particular organization. Work for a Japanese company and you would soon
realize how much importance they give to the process of Kaizen. The process of
Kaizen helps Japanese companies to outshine all other competitors by adhering to
certain set policies and rules to eliminate defects and ensure long term superior
quality and eventually customer satisfaction.
Kaizen works on the following basic principle.
“Change is for good”.
Kaizen means “continuous improvement of processes and functions of an
organization through change”. In a layman’s language, Kaizen brings continuous
small improvements in the overall processes and eventually aims towards
organization’s success. Japanese feel that many small continuous changes in the
systems and policies bring effective results than few major changes.

Kaizen process aims at continuous improvement of processes not only in
manufacturing sector but all other departments as well. Implementing Kaizen
tools is not the responsibility of a single individual but involves every member who
is directly associated with the organization. Every individual, irrespective of his/her
designation or level in the hierarchy needs to contribute by incorporating small
improvements and changes in the system.
Following are the main elements of Six Sigma:
 Teamwork
 Personal Discipline
 Improved Morale
 Quality Circles
 Suggestions for Improvement
Five S of Kaizen
“Five S” of Kaizen is a systematic approach which leads to foolproof systems,
standard policies, rules and regulations to give rise to a healthy work culture at the
organization. You would hardly find an individual representing a Japanese company
unhappy or dissatisfied. Japanese employees never speak ill about their
organization. Yes, the process of Kaizen plays an important role in employee
satisfaction and customer satisfaction through small continuous changes and
eliminating defects. Kaizen tools give rise to a well organized workplace which
results in better productivity and yield better results. It also leads to employees
who strongly feel attached towards the organization.
Let us understand the five S in Detail:

1. SEIRI - SEIRI stands for Sort Out. According to Seiri, employees should sort
out and organize things well. Label the items as “Necessary”, ”Critical”,
”Most Important”, “Not needed now”, “Useless and so on. Throw what all is
useless. Keep aside what all is not needed at the moment. Items which are
critical and most important should be kept at a safe place.
2. SEITION - Seition means to Organise. Research says that employees waste
half of their precious time searching for items and important documents.
Every item should have its own space and must be kept at its place only.
3. SEISO - The word “SEISO” means shine the workplace. The workplace ought
to be kept clean. De-clutter your workstation. Necessary documents should
be kept in proper folders and files. Use cabinets and drawers to store your
items.
4. SEIKETSU-SEIKETSU refers to Standardization. Every organization needs to
have certain standard rules and set policies to ensure superior quality.
5. SHITSUKE or Self Discipline - Employees need to respect organization’s
policies and adhere to rules and regulations. Self discipline is essential. Do
not attend office in casuals. Follow work procedures and do not forget to
carry your identity cards to work. It gives you a sense of pride and respect
for the organization.
Kaizen focuses on continuous small improvements and thus gives immediate
results.
Statistical Process Control
Statistical process control (SPC) is a method of quality control which employs
statistical methods to monitor and control a process. This helps ensure the process
operates efficiently, producing more specification-conforming product with less
waste (rework or scrap). SPC can be applied to any process where the "conforming
product" (product meeting specifications) output can be measured. Key tools used
in SPC include run charts, control charts, a focus on continuous improvement, and
the design of experiments. An example of a process where SPC is applied is
manufacturing lines.

SPC is an industry-standard methodology for measuring and controlling quality
during the manufacturing process. Quality data in the form of Product or Process
measurements are obtained in real-time during manufacturing. This data is then
plotted on a graph with pre-determined control limits. Control limits are
determined by the capability of the process, whereas specification limits are
determined by the client's needs.
SPC must be practiced in 2 phases: The first phase is the initial establishment of the
process, and the second phase is the regular production use of the process. In the
second phase, a decision of the period to be examined must be made, depending
upon the change in 5M&E conditions (Man, Machine, Material, Method,
Movement, Environment) and wear rate of parts used in the manufacturing process
(machine parts, jigs, and fixtures).
An advantage of SPC over other methods of quality control, such as "inspection", is
that it emphasizes early detection and prevention of problems, rather than the
correction of problems after they have occurred.
In addition to reducing waste, SPC can lead to a reduction in the time required to
produce the product. SPC makes it less likely the finished product will need to be
reworked or scrapped.
Data that falls within the control limits indicates that everything is operating as
expected. Any variation within the control limits is likely due to a common cause—
the natural variation that is expected as part of the process. If data falls outside of
the control limits, this indicates that an assignable cause is likely the source of the
product variation, and something within the process should be changed to fix the
issue before defects occur.
With real-time SPC you can:
 Dramatically reduce variability and scrap
 Scientifically improve productivity
 Reduce costs
 Uncover hidden process personalities
 Instantly react to process changes
 Make real-time decisions on the shop floor

Quality Gurus
A. Philip Crosby:
The Four Absolutes of Quality Management:
 Quality is conformance to requirements
 Quality prevention is preferable to quality inspection
 Zero defects is the quality performance standard
 Quality is measured in monetary terms – the price of non-conformance
14 Steps to Quality Improvement:
1. Management is committed to quality – and this is clear to all
2. Create quality improvement teams – with (senior) representatives from all
departments.
3. Measure processes to determine current and potential quality issues.
4. Calculate the cost of (poor) quality
5. Raise quality awareness of all employees
6. Take action to correct quality issues
7. Monitor progress of quality improvement – establish a zero defects
committee.
8. Train employees in quality improvement
9. Hold “zero defects” days
10.Encourage employees to create their own quality improvement goals
11.Encourage employee communication with management about obstacles to
quality
12.Recognize participants’ effort
13.Create quality councils
14.Do it all over again – quality improvement does not end
B. Dr. Edwards Deming
Deming’s Fourteen Obligations of Top Management

1. Create constancy of purpose for improvement of product and service.
Allocate resources to provide for long range needs rather than only short
term profitability
2. Adopt the new philosophy. We can no longer live with commonly accepted
levels of delays, mistakes, defective materials, and defective workmanship.
3. Cease dependency on mass inspection to achieve quality. Quality is
achieved by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag alone. The
aim is to minimize total cost, not merely initial cost. Establish long term
relationship with suppliers to develop loyalty and trust.
5. Improve constantly and forever every process for planning, production, and
service. It is management’s job to work continually on improving total
system.
6. Institute training on the job for all, including management, to make better
use of every employee. New skills are required to keep up with changes in
products and processes.
7. Adopt and institute leadership aimed at helping people do a better job.
Management must ensure that immediate action taken on issues that are
detrimental to quality.
8. Drive out fear so that everybody may work effectively and more productively
for the company.
9. Break down barriers between departments and staff areas. Everyone must
work together to tackle problems that may be encountered with products or
service.
10.Eliminate slogans and exhortations for the work force as they create
adversarial relationships. Also, bulk of the causes of low quality &
productivity belong to the system and lie beyond the power of the work
force.
11.Eliminate arbitrary numerical targets for the workforce and management.
Substitute aids and helpful leadership in order to achieve continual
improvement.
12.Remove barriers that rob people of pride of workmanship. This includes the
annual appraisal of performance and Management by Objective.
13.Encourage education. Institute a vigorous program of education and self-
improvement for everyone

14.Clearly define top management’s permanent commitment to ever
improving quality and productivity. Put everybody in the company to work
to accomplish the transformation. Support is not enough, action is required.
C. Dr. Armand Feigenbaum
 Developed Total Quality Control (TQC) philosophy
 Quote: “Quality is everybody’s job, but because it is everybody’s job, it can
become nobody’s job without the proper leadership and organization.”
Steps to quality:
 Quality leadership
 Modern quality technology
 Organizational commitment
D. Dr. Kaoru Ishikawa
 Known as father of Japanese quality control effort
 Established concept of Company Wide Quality Control (CWQC) –
participation from the top to the bottom of an organization and from the
start to the finish of the product life cycle
 Started Quality Circles – bottom up approach – members from within the
department and solve problems on a continuous basis
 The fishbone diagram is also called Ishikawa diagram in his honor
 Introduced concept that the next process is your customer
E. Dr. Joseph Juran
Juran’s Quality Trilogy (compared to financial management):
 Quality planning (financial budgeting) – create process that will enable one
to meet the desired goals
 Quality control (cost control) – monitor and adjust the process
 Quality improvement (profit improvement) – move the process to a better
and improved state of control through projects
Key points of Juran’s approach to quality improvement:

 Create awareness of the need for quality improvement
 Make quality improvement everyone’s job
 Create infrastructure for quality improvement
 Train the organization in quality improvement techniques
 Review progress towards quality improvement regularly
 Recognize winning teams
 Institutionalize quality improvement by including quality
 Concentration on both external and internal customers
F. Dr. Walter Shewhart
 Shewhart’s control charts are widely used to monitor processes. Problems
are framed in terms of special cause (assignable cause) and common cause
(chance-cause).
 The Shewhart Cycle – PDCA Problem Solving Process:
 Plan – what changes are desirable? What data is needed?
 Do – carry out the change or test decided upon
 Check – observe the effects of the change or the test
 Act – what we learned from the change should lead to improvement or
activity
 Referred to as the “Father of Statistical Quality Control”
G. Dr. Genichi Taguchi
 The lack of quality should be measured as function of deviation from the
nominal value of the quality characteristic. Thus, quality is best achieved by
minimizing the deviation from target (minimizing variation).
 Quality should be designed into the product and not inspected into it. The
product should be so designed that it is immune to causes of variation.
Taguchi recommends a three-stage design process:
 System Design
 Parameter Design
 Tolerance Design

REFERENCES
Online Websites
 https://en.wikipedia.org/wiki/Quality_(business)
 http://www.zeepedia.com/read.php?management_of_quality_dimensions
_of_quality_examples_of_service_quality_production_operations_manage
ment&b=55&c=23
 https://en.wikipedia.org/wiki/Total_quality_management
 https://www.managementstudyguide.com/six-sigma-and-quality-
management.htm
 https://quality-one.com/spc/
Books:
 Operations Management: An Integrated Approach, 5th
Edition by Nada R.
Sanders; R. Dan Reid.
 Operations Management: Theory and Practice, by B. Mahadevan

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