This document discusses different approaches to structuring quality management within an organization. It describes centralized, decentralized, and hybrid models. A centralized model places quality management under a corporate team, while a decentralized model gives business units more autonomy. A hybrid model balances centralized and decentralized approaches. The document also lists some common quality management tools, including check sheets, control charts, Pareto charts, and scatter plots.

1. Quality management structure
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I. Contents of quality management structure
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One of the most critical factors of success for any organization depends on how effective it is at
managing the quality of products and processes. Strategies are constantly being refined and
improved to fully optimize the use of people, processes, and technology.
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In the realm of quality management as well as in today’s digital age, a considerable amount of
focus is placed on the maturity and evolution of technology and processes. However, it is
important to note that the element of people, leadership and quality culturecontinue to play a
central role.
The way quality is structured within an organization has a lot to do with the effectiveness of
quality management. There are many ways quality can be structured from centralized through
decentralized and models in between. Below, I’ll discuss these different structures.
Centralized Quality Management
A centralized quality organization is usually led by a corporate quality team that manages high-
level goals and initiatives across the enterprise. This group will be responsible for standardizing
processes, establishing training programs, and managing the role of quality within enterprise IT
applications.

2. Although companies pursuing a centralized quality management strategy have quality
resources at the site level, these managers will have little to no flexibility in adapting processes
and requirements that may be unique to their site-level environment.
Decentralized Quality Management
Organizations that take a decentralized approach to quality management generally take a
decentralized approach in most aspects of business. Often, these companies are comprised of a
number of independent business units that are organized by region or product line. These
companies are also likely to have grown through acquisition but may not have taken the time to
integrate new companies into existing structure.
The Hybrid Approach
If done properly, the hybrid approach to quality management can bring the best of both worlds. If
not, it can bring the challenges of each. The hybrid approach really means managing only the
global processes that can deliver the benefits of the centralized approach, while leaving the local
parts of quality management that deliver the benefits of a decentralized approach.
For many companies this means centrally managing business processes such as NC/CAPA,
Document Control, Audit Management, and Compliance Management while managing quality
issues that impact areas like engineering, manufacturing, or service more locally (site- or
business unit-level). Companies that take a model approach also use a few additional strategies
that help capitalize on the benefits of each approach:
Quality as Part of a Specific Initiative
Some organizations manage quality as part of an initiative like operational excellence, lean
manufacturing, Six Sigma, or productivity. These organizations typically have a standard set of
rules and processes for managing such initiatives, aligning horizontal areas of quality, finance,
operations, and others to those high-level rules and processes. The ideology behind this is that
quality cannot be managed by a specific group, rather it has to be part of every employee’s
responsibility.
Quality as Part of a Specific Function
Depending on the industry and company, some organizations are more focused on a specific
function when it comes to quality. Functions may include supply chain management, design,
manufacturing, distribution, or services. These organizations typically consider these functions a
core competency as well as a source of differentiation in the industry. Within each of these
functions, there will generally be a quality group that will report up to a senior manager. For
example, the vice president of the supply chain may be reported to by the quality heads from
design and manufacturing.

3. So how should you structure quality in your organization?
There simple answer is there is no one-size-fits-all approach to structuring quality within your
organization. Virtually every organization has a hybrid model, encompassing elements of both
centralized and decentralized quality structures. It is important to understand the current goals as
well as challenges faced by your company and align your strategy accordingly.
In the coming weeks, LNS Research will be publishing a research report on this topic, diving
deeper into each topic and providing recommendations on the best way to structure quality
within an organization. We will also be publishing four separate case studies on the topic based
on our discussions with industry thought leaders.
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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

4. 2. Control chart
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]
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