2. • Quality is the ability of a product or service to
consistently meet or exceed customer expectations
• Degree to which performance of a product or service
meets or exceeds customer expectation
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3. Conformance to specifications
Fulfilling Customer Needs
Definition of quality focuses not merely on the manufacturing
process but also on the process of arriving at the specifications. Ness
Fitness to use
Zero defects
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4. Dimensions of Quality
Performance - main characteristics of the product/service
Aesthetics - appearance, feel, smell, taste
Conformance - how well product/service conforms to customer’s
expectations
Reliability - consistency of performance
Features- Additional attributes to enhance the quality
Durability- How long the product lasts before it requires the replacement
Serviceability- The ease with which the product can be serviced
Safety- Assurance to the customer that there are no hazards
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5. Examples of Quality Dimensions
Dimension (Product) (Service)
Automobile Auto Repair
1. Performance Everything works, fit & All work done, at agreed
finish price
Ride, handling, grade of Friendliness, courtesy,
materials used Competency, quickness
2. Aesthetics Interior design, soft touch Clean work/waiting area
3. Special features Gauge/control placement Location, call when ready
Cellular phone, CD Computer diagnostics
player
6. Examples of Quality Dimensions (Cont’d)
Dimension (Product) (Service)
Automobile Auto Repair
5. Reliability Infrequency of breakdowns Work done correctly,
ready when promised
6. Durability Useful life in miles, resistance Work holds up over
to rust & corrosion time
7. Perceived Top-rated car Award-winning service
quality department
8. Serviceability Handling of complaints and/or Handling of complaints
requests for information
7. Service Quality
• Tangibles
• Convenience
• Reliability
• Responsiveness
• Time
• Assurance
• Courtesy
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8. Examples of Service Quality
Table 9.4
Dimension Examples
1. Tangibles Were the facilities clean, personnel neat?
2. Convenience Was the service center conveniently located?
3. Responsiveness Were customer service personnel willing and able
to answer questions?
4. Time How long did the customer wait?
5. Assurance Did the customer service personnel seem
knowledgeable about the repair?
6. Courtesy Were customer service personnel and the cashier
friendly and courteous?
9. Juran’s Quality trilogy (December 24, 1904 – February 28, 2008)
Fitness for use
Juran’s Trilogy
Quality planning- The process of preparing to meet quality goals
Quality control- to know when corrective action needed
Quality improvement- better ways of doing the things
Justifying the need for improvement
Identifying specific projects and organizing support for projects
Diagnosing causes and providing remedies
Providing control mechanisms
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10. Costs of Quality
Quality Costs
Control Costs Failure Costs
Prevention Appraisal Internal External
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11. Costs of Quality
• Failure Costs - costs incurred by defective parts/products or
faulty services.
• Internal Failure Costs
– Costs incurred to fix problems that are detected before the
product/service is delivered to the customer.
• External Failure Costs
– All costs incurred to fix problems that are detected after the
product/service is delivered to the customer.
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12. Costs of Quality (continued)
• Appraisal Costs
– Costs of activities designed to ensure quality or
uncover defects
• Prevention Costs
– All TQ training, TQ planning, customer
assessment, process control, and quality
improvement costs to prevent defects from
occurring
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13. The Cost of Quality: Sources of Costs
Training
Verification of Design
Prevention
Plant and Equipment
Preventing Defects from Happening Maintenance
Qualifying Suppliers
Incoming materials Inspection
Appraisal In-process Inspection
Evaluating Materials and Performance Final End-item Inspection
Maintenance of test Equipment
Training
Internal Failures
Scrap (waste)
Defects that are Discovered In-House
Re-work
Time spent analyzing failures
Tests and re-tests
External Failures
Customer Complaints
Defects Discovered by the Customer
Warranty Costs and Field Re-Work
Damaged Image
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14. The Cost of Quality Distribution of the Costs
(10.0%)
Prevention
Internal and External
failures
(25.0%)
(65.0%)
Evaluation
Reduce Quality Costs by Increasing Prevention Efforts
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15. Deming’s 14 Points(October 14, 1900 – December 20, 1993)
Lower price
PDCA Cycle
Process improvement and SPC
1. Create constancy of purpose
2. Adopt philosophy of prevention
3. Cease mass inspection
4. Select a few suppliers based on quality( avoid price tag)
5. Constantly improve system and workers
6. Institute worker training
7. Instil leadership among supervisors
8. Eliminate fear among employees
9. Eliminate barriers between departments, groups, staffs
10. Eliminate slogans or exhortation
11. Remove numerical quotas
12. Enhance worker pride
13. Institute vigorous training & education programs
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17. Begin
A Flowchart
Catalog Cal Customer places a call
Yes
Call back Busy signal
Yes
No No
Specify desired item
Lost sale
No
Alternate No Available
selection
Yes
No Confirm order
Lost sale
Specify delivery instructions
Indicate of payment method
End
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18. Pareto Analysis
80% of the Frequency
problems may
be attributed 80
%
to 20% of the
causes.
Design Assy. Purch. Other
Instruct. Training
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19. Cause & Effect Diagram
( Fish Bone Diagram)
It is a line diagram that helps understand the causes of quality
issues & effect of those causes. It is a simple tool which
resembles the shape of a fish’s bone & therefore also called the
fish bone diagram.
It helps in discovering all possible causes for a particular effect.
The effect examined is some troublesome aspect of product or
service quality.
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20. Cause & Effect Diagram
( Fish Bone Diagram)
COMMUNICATION SKILLS
Incorrect
Deliveries
Procedures
Transport
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21. Cause & Effect Diagram
( Fish Bone Diagram)
SKILLS
COMMUNICATION
Packing Telephone
Illiteracy
slip not orders not
Knowledge
legible recorded
Inconsistency in
manual Incorrect
Incorrect Deliveries
database
Lack of
vehicles Procedures
Transport
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22. SCATTER DIAGRAM
• It is figure which helps to visualize the relation
between two variables. It helps determine the
correlation between two charateristics. The
relationship is expressed in terms of scattered
points. It only helps in establishing the co-
relation eg: The larger the variable X results in
lesser Y
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24. CHECK SHEETS
The check sheets contains a number of cells
corresponding to different data categories.
The Data need not be necessarily be in
numerical form. Check sheets may also
contain drawings or design to check locations
of failures.
The check sheet is a very simple tool that
facilitates the conversion from data to useful
information.
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25. Day
Defect 1 2 3 4
A III IIIII I
B II I II III
C IIIII III II IIII
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27. HISTOGRAM
Histogram is generally used to chart frequency
of occurrence. It is a graphic representation of
variation in a set of data.
A histogram is a graph in which the continuous
variable is clustered into categories and the
value of each cluster is plotted to give a series
of bars.
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28. Histogram
Frequency
Data Ranges
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29. The PDSA Cycle
Plan
Act
Do
Study
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30. The Deming Wheel (or P-D-C-A Cycle)
1. Plan
Identify problem
Develop plan for
improvement
4. Act
2. Do
Institutionalize
Implement plan
improvement
on test basis
Continue cycle
3. Study / Check
Is the plan working
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31. Quality Circles
A group of employees whose assignment is to identify the
problems , formulate solutions and present their results to the
management with suggestions for implementation.
Support structure
Steering Committee
Facilitators
Circle member
Developing a QC Programme
1. Start-up
2. Initial problem solving
3. Approval of initial suggestions
4. Implementation
5. Expansion
Ex- BHEL, BEL,BFW, Kirloskar Electrical Co, L&T,
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32. Quality Function Deployment (QFD)
It is a method of developing a design quality aimed at satisfying
the customer and then translating the customer ‘s demand into
design targets and major quality assurance points to be used
throughout the production phase
It is tool that helps organizations translate customer requirements
into design, process planning and manufacturing specifications
using four stage process
Links
Links Design Links actions to Links
Customer
attributes to Implementation implementation
Needs to
actions firms decisions to process plans
design
can take
attributes
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33. Customer requirements
Enough space to sit and eat, less time during the peak hours, easy to
carry home& quick order processing
Importance
less time during the peak hours
Product characteristics
Temperature of cooked item, time taken to cook the item
Order processing time, Thickness of packaging material, numbers of
service counters in peak time, no of tables
Relationship matrix
Tradeoffs
++ Strong positive, -- strong negative,
Benchmarks
X Own company, A- Competitor, B- Competitor B
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Technical assessment and target values
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34. Quality Management Systems
• A QMS can be defined as:
“A set of co-ordinated activities to direct and control an
organization in order to continually improve the effectiveness
and efficiency of its performance.”
The benefits of a QMS
• The customers’ requirements – confidence in the ability of the
organization to deliver the desired product and service
consistently meeting their needs and expectations.
• The organization's requirements – both internally and externally,
and at an optimum cost with efficient use of the available
resources – materials, human, technology and information.
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35. Quality Management Systems
A good QMS will:
• Set direction and meet customers’ expectations
• Improve process control
• Reduce wastage
• Lower costs
• Increase market share
• Facilitate training
• Involve staff
• Raise morale
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36. ISO 9000
• ISO 9000
– Set of international standards on quality
management and quality assurance, critical to
international business
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37. ISO 9000 Standards
Requirements
• System requirements
• Management
• Resource
• Realization
• Remedial
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38. ISO 9000 Standards
Eight Quality management principles
1. A customer Focus
2. Leadership
3. Involvement of people
4. A process approach
5. A system approach to management
6. Continuous improvement
7. Use factual approach to decision making
8. Mutually beneficial supplier relationships
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39. Six Sigma
A business process for improving quality, reducing costs, and
increasing customer satisfaction.
– Sigma” is a statistical term which defines the level
of Error Free Performance in a process related to
services and or product deliveries, in an absolute
numbers.
– The higher the sigma value, a process will produce
lesser and lesser defects.
• Statistically
– Having no more than 3.4 defects per million
• Conceptually
– Program designed to reduce defects
– Requires the use of certain tools and techniques
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40. • SIX SIGMA MEANS
PRODUCING,DELIVERING PRODUCT AND
SERVICES AT A YIELD RATE AND
CONFIDENCE LEVEL OF 99.9997%, Continuously.
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43. Six Sigma Team
• Top management
• Program champions
• Master “black belts”
• “Black belts”
• “Green belts”
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44. Six Sigma Process
• Define
• Measure
• Analyze
• Improve DMAIC
• Control
Objectives
Reduce defects, costs, product and process
variability, delivery time, improve the quality
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46. Quality Awards
• Instituted to create awareness and interest in
quality.
• Award given annually to recognize firms that
have integrated quality management in their
operations.
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47. The Deming Prize
• Honoring W. Edwards Deming
• Japan’s highly coveted award
• Main focus on statistical quality control
• Deming prize established by the Japanese and awarded annually
to firms that distinguishes themselves with quality management
programs
• Major focus on SQC
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48. Deming Prize
Winners from India
• Five Companies belonging to TVS group
• Three auto components companies
• 1998:
• Sundaram Clayton Ltd- Breaks Division
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49. Baldrige Award
Baldrige Award annual award given by the U.S government to
recognize quality achievements of US companies
National Institute of Standards and Technology
Purpose of the award to stimulate
Efforts to improve quality
To recognize quality achievements
Publicize successful programs
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50. Malcolm Baldrige National Quality Award
• 1.0 Leadership (125 points)
• 2.0 Strategic Planning (85 points)
• 3.0 Customer and Market Focus (85 points)
• 4.0 Information and Analysis (85 points)
• 5.0 Human Resource Focus (85 points)
• 6.0 Process Management (85 points)
• 7.0 Business Results (450 points)
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51. Benefits of Baldrige Competition
• Financial success
• Winners share their knowledge
• The process motivates employees
• The process provides a well-designed quality system
• The process requires obtaining data
• The process provides feedback
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52. Quality Awards
• Malcom Balridge Award ( Only US companies)
• European quality award( Only European
companies)
• Deming prize( No geographical restrictions)
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53. European Quality Award
• Prizes intended to identify role models
– Leadership
– Customer focus
– Corporate social responsibility
– People development and involvement
– Results orientation
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54. Components of Product Quality
Control
1. Careful consideration of product design
specification.
2. Adequate inspection procedures for
manufactured or assembled products.
3. Acceptance procedures for purchased raw
materials & material parts.
4. Control practices to maintain quality levels in
the process stage.
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55. 5.Commitment from all levels of management
towards quality.
6.Formulation of quality assurance procedures
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56. Objectives of Quality Control
1. Increase Sales Volume
2. Increased profits
3. Improving the company image
4. Improving the production system
5. Better procurement of materials
6. Reduce the cost of inspection & losses
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