7. Cost of Poor Performance and
Quality:
Defect:
When a process fails to satisfy a customer is called
defect. For example, a defect in student’s practice
is:
Communication gap b/w student and teacher
Environmental differences
9. Prevention Costs:
It includes:
Cost of re-designing the process
Re-designing the product or service to make it
simple to produce
Training Employees
Working with suppliers to increase quality of
purchased items
11. Internal Failure Cost:
Internal failure cost occurs from defects that are
discovered during the production of product and
service. Defects fall into two categories:
Rework
Scrap
12. External Failure Cost:
External failure cost arises when a defect is
discovered after customer receives the service or
product. Disadvantages are:
Good will is damaged
Bad impact on future sales
14. Total Quality Management
Aspect of the overall management function that
determines and implements the quality policy. It is a
philosophy that stresses three principles:
Customer satisfaction
Employee involvement
Continuous improvement
15. Customer Satisfaction
Quality:
A term used by customers to describe their general
satisfaction with a service or product. Quality has
multiple dimension. These are:
Conformance to specification
Value
Fitness for use
Support
Psychological impressions
16. Employee Involvement
A program in employee involvement including
changing organizational culture and encouraging
team work
17. Employee Involvement
Cultural change
One of the main challenge in
developing the proper culture for TQM is to define
customer for each employee. Customers are,
Internal customers
External customers
18. Employee Involvement
Quality at the source
A philosophy whereby defects
are caught and corrected where they were created
Teams
Small groups of people who have
a common purpose, set their goals and hold
themselves accountable for success
20. Continuous Improvement
It is a philosophy of continuous seeking ways to
improve processes.
It involves identifying benchmark of excellent
practices and create a sense of employee
ownership in the process
21. Plan-do-study-act cycle
It is used by the firm actively to train their work
teams in problem solving. The cycle comprises
following steps:
Plan
Do
Study
Act
23. Six Sigma
Definitional Contents
Sustaining and Maximizing Business Success
Minimize defects and variation in process
24. Purpose of Six Sigma
Providing Customer Satisfaction by
Delighting customer’s Need
High quality performance
Training employee to their perfection level
25. How to attain Six Sigma
By statistical tool
Data analysis
Bar charts
Scatter diagrams
26. Focus of Six Sigma
Reduce variation in process
Centering process to target measure
27. Six Sigma Improvement Model
Also called DMAIC process
Define
Measure
Analyze
Improve
Control
28. Teachers of Six Stigma
Green belt
Black belt
Master black belt
50. Measures of process capability
Two measures commonly are used in
practice to assess the capability of a process
1. Process capability ratio (Cp)
2. Process capability index (Cpk)
56. Reasons:
To maintain Quality Standards in International
Trade
For Government
For Society
For Business:
Cost saving
Customer satisfaction
Increase market share
57. ISO: 9000:2000
Documentation Standards
Created by ISO( International organization of
standardization) established in 1946
Define Quality system standards based on the premise that
generic characteristics of management principles can be
standardized
Well designed, well implemented and well managed quality
systems provide confidence that outputs will meet customer
expectations and requirements
Recognized in 100 countries
Intended to apply on all types of business
58. ISO 9000:2000
Quality Management Principles
Principle 1: Customer focus
Principle 2: Leadership
Principle 3: Involvement of people
Principle 4: Process approach
Principle 5: System approach for management
Principle 6: Continual improvement
Principle 7: Factual approach to decision making
Principle 8: Mutually beneficial supplier relationship
59. ISO: 14000:2400
Environmental Management
Systems
It addresses environmental management by
specifying what the firm does to minimize harmful
effects on the environment caused by its activities,
and to achieve continual improvement of its
environmental performance.
60. It covers following areas:
Environmental Management System
Environmental Performance Evaluation
Environmental Labelling
Lifecycle Assessment
61. ISO: 13485:2004
Quality Management Systems for
Medical Devices
It is essentially ISO 9001 adapted to meet the
requirements of medical device industry
Focused to ensure medical device safety and
efficacy
62. TL 9000:
Quality Management System
Designed by QuEST forum in 1988
Based on ISO 9001-2000
Focuses on supply chain directives for the
international telecommunication industry
67. MALCOLM BALDRIGE NATIONAL
QUALITY AWARD
Seven major criteria for the award:
Leadership
Strategic Planning
Customer and Market Focus
Measurement, Analysis and Knowledge Management
Workforce Focus
Process Management
Results
75. DEMING QUALITY AWARD
In 1951, Japanese Union of Scientists (JUSE)
developed the Deming Award
It is named after Dr. W. Edwards Deming
In 2001, Sundaram Break Linings won award
In 2008, Tata Sateel won award
76. RAJIV GANDHI NATIONAL QUALITY
AWARD
This award was instituted by the Bureau of
Indian Standards in 1991
The award has been designed in line with similar
other quality awards
The award has been named after the late PM
Rajiv Gandhi
77. Continued….
The objectives to improve the quality:
1. Significant improvements in quality
2. Recognizing the achievements
3. Establishing guidelines and criteria
4. Providing specific guidelines to other
organizations
