The document provides an overview of quality management presented by the Society of Statistical Quality Control Engineers in Bhopal. It defines quality, traces the growth of quality management from craftsmen era to total quality management. It discusses measuring quality through quality indices and costs, highlighting approaches from quality gurus like Deming, Juran, Crosby, Ishikawa and Taguchi. The road ahead is described as marching towards total quality management and its key principles.

1. QUALITY MANAGEMENT
A presentation by
THE SOCIETY
OF
STATISTICAL QUALITY CONTROL ENGINEERS
BHOPAL

2. QUALITY MANAGEMENT
An Overview
 Quality definitions
 Quality growth (origin and development of quality
management)
 Road ahead- Total Quality Management
 Quality measurement
 Quality economics
 What QUALITY GURUs say (views of quality
experts)

3. QUALITY : Definitions

4. TRADITIONAL DEFINITIONS
 Quality is freedom from deficiencies
 Quality is conformance to specifications
and standards
 Quality consists of those product features
which meet the needs of customer

5. NEW DEFINITIONS
 Quality is conformance to requirements
(Crosby)
 Quality is fitness for use
(Juran)
 Quality is a predictable degree of uniformity and
dependability at low cost and suited to the market
(Deming)
 Quality is the loss imparted by the product to
society from the time the product is shipped
(Taguchi)

6. DEFINITION AS PER STANDARDS
As per ISO-8402 (OLD)
Quality is totality of features and characteristics of an entity that bear
on its ability to satisfy stated and implied needs.
As per ISO-9000
Quality is degree to which a set of inherent characteristics fulfils
requirements.

7. GROWTH
OF
QUALITY MANAGEMENT

8. CRAFTSMEN ERA
(operator self control)
INSPECTION
(Segregation of good items from defective items
QUALITY CONTROL
(Defect prevention)
QUALITY ASSURANCE
(Providing evidence to all concerned that quality requirements
are met in line with customer specs./standards)
ssssssssssss
QUALITY MANAGEMENT

9. Quality Management
Quality planning
Quality control
Quality Improvement
QUALITY MANAGEMENT: JURAN’S QUALITY TRILOGY

10. Quality Planning
 Preparation of Quality Assurance Plans
 Preparation of product check lists
 Preparation of process check lists
 Preparation of log sheets

11. Quality Control
 Incoming inspection
 Stage inspection
 Final inspection
 Product testing

12. Quality Improvement
 Quality Improvement projects
 Six sigma projects
 Quality circle projects
 Root Cause Analysis of chronic quality problems
 Quality Index monitoring
 “Quality-at-Doorstep” meetings for educating
operators on quality improvement

13. ROAD AHEAD
Marching towards Total Quality Management

14. WHAT IS TQM
 TOTAL QUALITY MANAGEMENT
TQM is an integration of various management
principles leading to excellence. The key
principles of TQM are:
(i) Strong leadership
(ii) Continuous improvement
(iii) Satisfaction of stakeholders
(iv) Customer driven quality
 TQM Considers quality in the broadest sense, often
referred to as “Big Q”

15. BIG “Q” Vs SMALL “q”
BIG “Q”
(Total Quality Management)
SMALL “q”
( Conventional Quality Management)
1- Quality of people
2- Quality of processes
3- Quality of infrastructure
4- Quality of Environment
5- Quality of systems
6- Quality of product
7- Quality of service
1- Quality of product
2- Quality of service
.

16. MEASUREMENT
OF
QUALITY

17. Why measure quality
 To assess the present quality level
 To quantify improvements in quality
 Bench marking for quality

18. MEASUREMENT OF QUALITY: STEPS
1) Quality is split into a number of measurable attributes called
quality characteristics e.g. length, diameter, ovality, surface
finish, temperature, pressure, viscosity etc.
1) Those quality characteristics which are not measurable e.g. taste,
smell, appearance etc., should be made measurable by devising a
suitable system of grading. The grading system should be objective
as for as possible.
3) Define quality Index (QI) for each quality characteristic as below:
Number of non conformities
QI = -------------------------------------------------
Opportunities for non conformities

19. MEASUREMENT OF QUALITY: STEPS (Contd.)
4) Assign weightage (w) to each quality characteristic.
5) Work out Quality Index for the product by the following formula:
QI (product) = (w1 x QI 1) + (w2 x QI 2) + .... + (wn x QIn)
where w1, w2, .... Wn are weightages
QI1, QI2,..... QIn are quality indices
Note that w 1 + w2 + ....... + wn = 1

20. ECONOMICS OF QUALITY
Quality Costs

21. INDICATORS OF QUALITY LEVEL
 Rework rate
 Rejection rate
 Failure rate
 Number of customer complaints
 Sigma quality level
 Cost of poor quality (COPQ)
 Cost of quality (COQ)

22. QUALITY COSTS
QUALITY
COSTS
COST OF ACHIEVING
QUALITY
FAILURE COSTS
(GOLD-IN-THE-MINE)
PREVENTION COST
APPRAISAL
COST
COST OF EXTERNAL
FAILURES
COST OF INTERNAL
FAILURES

23. ELEMENTS OF QUALITY
COSTS
PREVENTION COST
QUALITY TRAINING
SUPPLIER EVALUATION
MOTIVATION FOR QUALITY
QUALITY PLANNING
QUALITY AUDITS
PROCESS CAPABILITY STUDIES
CALIBRATION

24. ELEMENTS OF QUALITY
COSTS
APPRAISAL COSTS
INCOMING INSPECTION
FINAL INSPECTION
STAGE INSPECTION
PRODUCT TESTING

25. ELEMENTS OF QUALITY
COSTS
COST OF INTERNAL FAILURES
COST OF REWORK/REJECTION
COST OF WARRANTY REPAIRS/REPLACEMENTS
TEST BED FAILURES
COST OF EXTERNAL FAILURES
LOSS OF GOODWILL/CONFIDENCE(INTANGIBLE)

26. QUALITY COST PROFILE WITH LITTLE SPENT
ON PREVENTION (TYPICAL)
EXTERNAL FAILURES
30%
INTERNAL FAILURES
35%
APPRAISAL
32%
PREVENTION
3%
PREVENTION
APPRAISAL
INTERNAL
FAILURES
EXTERNAL
FAILURESTOTAL QUALITY COST APPROXIMATELY
15% OF TURNOVER

27. EFFECT OF SPENDING MORE
ON PREVENTION(TYPICAL)
EXT ER N A L
F A ILUR ES
15%
IN T ER N A L
F A ILUR ES
35%
A P P R A IS A L
42%
P R EVEN T IO N
8%
PREVENTION
APPRAISAL
INTERNAL
FAILURES
EXTERNAL
FAILURESTOTAL QUALITY COST APPROXIMATELY
5% OF TURNOVER

28. Quality of Conformance Vs Cost

29. Quality of design Vs Cost

30. WHAT QUALITY GURUs SAY

31. W. EDWARDS DEMING
 All processes and systems exhibit variability
 Variability may be caused either by random
(chance) causes or special (assignable) causes
 Assignable causes must be eliminated before
implementing any process improvement.
 Variability due to chance causes should be reduced constantly
to strive for better quality

32. JOSEPH JURAN
 Advocated “trilogy” of quality management
1) Quality planning
2) Quality control
3) Quality improvement
 Introduced the concept “internal customers”
 Introduced the concept of “operator self control”

33. PHILIP CROSBY
 Do it right the first time
 Zero defect should be the performance standard
 Savings as high as 25% - 40% of sales turnover can be
achieved by eliminating rework/rejection/failures.
Dr. K. ISHIKAWA
1) Pioneered Quality Circle movement for bringing workers in
the mainstream of quality improvement.
2) Introduced Cause and Effect diagram
(also known as Ishikawa Diagram)
3) Popularized seven tools of quality
4) Launched companywide quality control

34. SHIGEO SHINGO
Taught the concept of poka-yoke i.e. error proofing of product/process
at the design and manufacturing stages
G. TAGUCHI
1) Introduced the concept of loss to the society due to poor quality
2) Cost of poor quality = Loss to the manufacturer + Loss to the society
3) Advocated robust design to take care of variations during
manufacture and service.

35. THANKS